Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding
company for Capital Bank, N.A. (the "Bank"), today reported net
income of $9.8 million, or $0.70 per diluted share, for the third
quarter 2023, compared to net income of $7.3 million, or $0.52 per
diluted share, for the second quarter 2023 and $11.1 million, or
$0.77 per diluted share, for the third quarter 2022. For the
quarter, total average deposits increased $37.1 million and the
average loan portfolio grew $42.9 million. In addition, the net
interest margin of 6.71% for the third quarter 2023 improved when
compared to 6.63% for the second quarter 2023. Adjusted net
interest margin(1) (excluding credit card and SBA-PPP loans) of
4.05% for the third quarter 2023 remained stable when compared to
adjusted net interest margin(1) of 4.06% for the second quarter
2023.
The Company also declared a cash dividend on its
common stock of $0.08 per share. The dividend is payable on
November 22, 2023 to shareholders of record on November 6,
2023.
"Our business model is proving to be stable and
resilient against a challenging backdrop," said Ed Barry, Chief
Executive Officer of the Company and the Bank. "Our focus on core
deposit relationships and differentiated lending has enabled
profitable growth. We continue to make investments in technology,
people, and asset generation that should further strengthen our
franchise. Credit remains stable and we maintained high capital
levels allowing us to be opportunistic moving forward."
“The Board is pleased with our improved quarter
over quarter performance,” said Steven J. Schwartz, Chairman
of the Company. "Our continued, stable net interest margin, coupled
with growth in loans and deposits, enabled our ROAA and ROE to
bounce back nicely and positions the Bank for continued
best-in-class performance. In addition, we are gratified by our
year-over-year growth in tangible book value per share,
particularly considering the challenges facing banks today due to a
rapidly changing interest rate environment, and falling values of
certain real estate asset classes.”
(1) Reconciliations of the non–U.S. generally accepted
accounting principles (“GAAP”) measures are set forth in the
Appendix at the end of this press release.
Third Quarter 2023
Highlights
Capital Bancorp, Inc.
Earnings Summary - Net income
of $9.8 million, or $0.70 per diluted share, increased
$2.5 million compared to $7.3 million, or $0.52 per
diluted share, for the second quarter 2023.
- Net interest
income of $36.8 million increased $1.5 million compared
to $35.3 million for the second quarter 2023. Interest income
of $47.7 million increased $2.7 million compared to
$45.1 million for the second quarter 2023. Interest expense of
$10.9 million increased $1.2 million compared to $9.7 million for
the second quarter 2023.
- The provision
for credit losses was $2.3 million, a decrease of
$0.6 million from the second quarter 2023. The change in
provision was partially due to lower loan growth of $24.9 million
from June 30, 2023 to September 30, 2023 as compared to loan growth
of $50.9 million from March 31, 2023 to June 30, 2023.
- Noninterest
income of $6.3 million decreased $0.4 million compared to
$6.7 million for the second quarter 2023. Credit card fees
decreased $0.3 million partially due to interchange fees from lower
customer purchases as the number of open customer accounts
decreased quarter over quarter.
- Noninterest
expense of $28.0 million decreased $1.5 million compared
to $29.6 million for the second quarter 2023 including total
advertising expense of $1.6 million decreasing $1.1 million off of
seasonally higher second quarter levels.
Performance and Efficiency
Ratios – Annualized return on average
assets ("ROAA") and annualized return on average equity ("ROAE")
were 1.75% and 16.00%, respectively, for the three months ended
September 30, 2023, compared to 1.34% and 12.30%, respectively, for
the three months ended June 30, 2023.
- The efficiency
ratio was 65.0% for the three months ended September 30, 2023,
compared to 70.4% for the three months ended June 30, 2023. The
change was primarily attributable to a $1.5 million increase in net
interest income and a $1.5 million reduction in noninterest expense
quarter over quarter.
Balance Sheet – Total assets of
$2.3 billion at September 30, 2023 increased $44.6 million, or
2.0%, from June 30, 2023.
- Cash and cash
equivalents increased $26.8 million.
- Net portfolio
loans of $1.9 billion increased $24.9 million, representing 5.4%
annualized growth.
- Total deposits
of $2.0 billion at September 30, 2023 increased $33.6 million,
or 1.7%, from June 30, 2023, while total average deposits increased
$37.1 million, or 7.8% annualized, quarter over quarter.
- The investment
securities portfolio continues to be classified as available for
sale and had a fair market value of $206.1 million, or 9.1% of
total assets, at September 30, 2023 down slightly from $208.5
million at June 30, 2023. The amortized cost of the investment
securities portfolio was $229.4 million, with an effective duration
of 3.21 years. U.S. Treasury securities represent 74.8% of the
overall investment portfolio. The accumulated other comprehensive
loss ("AOCI Loss") on the investment securities portfolio increased
$1.8 million during the quarter to $17.8 million as of
September 30, 2023, which represents 7.3% of total
stockholders' equity. The Company does not have a held to maturity
("HTM") investment securities portfolio.
Net Interest Margin - Net
interest margin improved to 6.71% for the three months ended
September 30, 2023, compared to 6.63% for the three months ended
June 30, 2023. Adjusted net interest margin (excluding credit card
and SBA-PPP loans), of 4.05%, remained stable compared to 4.06% for
the three months ended June 30, 2023.
- The average
yield on interest earning assets increased 24 basis points compared
to the second quarter 2023. The increase in average yield is due to
portfolio loans increasing 17 basis points to 9.72%, and
interest-bearing deposits held at other institutions increased 96
basis points to 5.39%. Average portfolio loans increased $46.1
million and average interest-bearing deposits held at other
institutions increased $20.7 million, compared to the second
quarter 2023.
- The average rate
on interest-bearing liabilities increased 24 basis points compared
to the second quarter 2023. Increases in average rates include
money market accounts increasing 38 basis points to 3.85% and time
deposits increasing 21 basis points to 4.51%, while average
balances increased $30.5 million and $8.0 million, respectively,
compared to the second quarter 2023. The average rate on borrowed
funds decreased 48 basis points to 2.59%, as a result of a
reduction in average short-term FHLB advances of $8.3 million to
$0.9 million in the third quarter 2023 from $9.1 million in the
second quarter 2023.
Deposits and Cost of Funds -
Total deposits at September 30, 2023 increased by $33.6
million, or 1.7%, compared to June 30, 2023.
- Interest-bearing
deposits of $1.3 billion increased $46.0 million, or 3.7%, compared
to June 30, 2023 with growth in money market accounts of $37.6
million, other time deposits of $22.5 million and a reduction in
interest-bearing demand accounts of $14.1 million.
Noninterest-bearing deposits of $680.8 million decreased $12.3
million, or 1.8%, compared to June 30, 2023. Brokered time deposits
totaled $128.7 million at September 30, 2023, unchanged from June
30, 2023.
- The elevated
interest rate environment has driven up the average cost of
interest-bearing liabilities to 3.37% for the quarter ended
September 30, 2023, compared to 3.13% for the second quarter
2023.
- Average
noninterest-bearing deposits of $666.9 million decreased $9.4
million, or 1.4%, compared to June 30, 2023, and represented 34.8%
of total average deposits at September 30, 2023.
- Average borrowed
funds of $34.9 million decreased $8.3 million, or 19.1%, compared
to June 30, 2023.
Robust Capital Positions - As
of September 30, 2023, the Company reported a common equity
tier 1 capital ratio of 15.71%, compared to 14.96% at June 30,
2023, and an allowance for credit losses to total loans ratio of
1.52%, compared to an allowance for credit losses to total loans
ratio of 1.50% as June 30, 2023. Management expects the Company to
remain well-capitalized for the foreseeable future. Shares
repurchased and retired during the three months ended September 30,
2023, as part of the Company's stock repurchase program, totaled
100,575 shares at an average price of $19.47, for a total cost of
$2.0 million including commissions. Tangible book value per common
share grew 2.9% to $17.48 at September 30, 2023 when compared
to June 30, 2023. The company did not have goodwill or other
intangible assets during any of the periods presented and
therefore, tangible book value per share is equal to book value per
share.
Liquidity -
Total sources of available borrowings at September 30, 2023 totaled
$646.6 million, including available collateralized lines of credit
of $514.5 million, unsecured lines of credit with other banks of
$76.0 million and unpledged investment securities available as
collateral for potential additional borrowings of $56.1
million.
Commercial Bank
Continued Portfolio Loan Growth
- Portfolio loans, excluding credit cards, increased by
$29.9 million, to $1.7 billion, gross, at September 30, 2023
compared to June 30, 2023.
Net Interest Income - Interest
income of $30.4 million increased $1.7 million compared to $28.7
million for the second quarter 2023 driven primarily by loan
growth. Interest expense of $10.7 million increased $1.2 million
driven by an increase in average interest-bearing deposits with
slightly higher rates in the third quarter 2023.
Credit Metrics - Nonperforming
assets ("NPAs") decreased 4 basis points to 0.67% of total assets
at September 30, 2023 compared to 0.71% at June 30, 2023 as a
result of a decrease in nonaccrual loans at September 30, 2023
to $15.2 million compared to $15.7 million at June 30, 2023.
Included in nonperforming assets is a single $8.2 million,
multi-unit residential real estate loan that was downgraded in the
first quarter of 2023. At September 30, 2023 commercial real estate
loans with office space exposure totaled $55.4 million, or 3.0% of
total portfolio loans, with a weighted average loan-to-value
("LTV") of 48.2%. Owner-occupied commercial real estate loans with
office exposure totaled $42.5 million with a weighted average LTV
of 47.8% and non owner-occupied commercial real estate loans with
office exposure totaled $12.8 million with a weighted average LTV
of 49.8%.
OpenSky®
Revenues - Total revenue of
$20.5 million increased $0.7 million from the second quarter 2023.
Interest income of $16.1 million increased $1.0 million from the
second quarter 2023. Average OpenSky® loan balances, net of
reserves and deferred fees of $116.8 million for the third quarter
2023, increased $6.2 million, or 5.6%, compared to $110.6 million
for the second quarter 2023. Noninterest income of $4.4 million
decreased $0.3 million due to a decline in credit card fees as
compared to the second quarter 2023.
Noninterest Expense - Total
noninterest expense of $10.6 million decreased $1.4 million from
the second quarter 2023. Noninterest expense declined in the third
quarter off of higher seasonal second quarter levels driven
primarily by higher advertising expense. Advertising expense can
vary throughout the year based on market opportunities for new
account acquisition. During the third quarter 2023, the number of
OpenSky® credit card accounts declined by 10,853
to 529,205.
Loan Balances - OpenSky® loan
balances, net of reserves, of $122.5 million at September 30, 2023
decreased by $0.4 million, or 0.3%, compared to $122.9 million at
June 30, 2023. Corresponding deposit balances of $181.2 million at
September 30, 2023 decreased $5.4 million, or 2.9%, compared to
$186.6 million at June 30, 2023. Gross unsecured loan balances of
$27.4 million at September 30, 2023 increased $2.2 million compared
to $25.3 million at June 30, 2023.
OpenSky®
Credit - Card delinquencies and utilization
remained stable in the third quarter 2023 when compared to the
second quarter 2023. The provision for credit losses decreased $0.3
million compared to the second quarter 2023 as card balances, net
of reserve decreased $0.4 million during the third quarter 2023 as
compared to an increase of $10.1 million during the second quarter
2022.
|
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
3Q23 vs 2Q23 |
|
3Q23 vs 3Q22 |
(in thousands except per share
data) |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Earnings
Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
47,741 |
|
|
$ |
45,080 |
|
|
$ |
38,340 |
|
|
$ |
2,661 |
|
|
5.9 |
% |
|
$ |
9,401 |
|
|
24.5 |
% |
Interest expense |
|
10,931 |
|
|
|
9,740 |
|
|
|
1,663 |
|
|
|
1,191 |
|
|
12.2 |
% |
|
|
9,268 |
|
|
557.3 |
% |
Net interest income |
|
36,810 |
|
|
|
35,340 |
|
|
|
36,677 |
|
|
|
1,470 |
|
|
4.2 |
% |
|
|
133 |
|
|
0.4 |
% |
Provision for credit
losses |
|
2,280 |
|
|
|
2,862 |
|
|
|
1,260 |
|
|
|
(582 |
) |
|
(20.3 |
)% |
|
|
1,020 |
|
|
81.0 |
% |
Provision for credit losses on
unfunded commitments |
|
24 |
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
— |
% |
|
|
24 |
|
|
— |
% |
Noninterest income |
|
6,326 |
|
|
|
6,687 |
|
|
|
7,108 |
|
|
|
(361 |
) |
|
(5.4 |
)% |
|
|
(782 |
) |
|
(11.0 |
)% |
Noninterest expense |
|
28,046 |
|
|
|
29,592 |
|
|
|
28,094 |
|
|
|
(1,546 |
) |
|
(5.2 |
)% |
|
|
(48 |
) |
|
(0.2 |
)% |
Income before income taxes |
|
12,786 |
|
|
|
9,573 |
|
|
|
14,431 |
|
|
|
3,213 |
|
|
33.6 |
% |
|
|
(1,645 |
) |
|
(11.4 |
)% |
Income tax expense |
|
2,998 |
|
|
|
2,255 |
|
|
|
3,336 |
|
|
|
743 |
|
|
32.9 |
% |
|
|
(338 |
) |
|
(10.1 |
)% |
Net income |
$ |
9,788 |
|
|
$ |
7,318 |
|
|
$ |
11,095 |
|
|
$ |
2,470 |
|
|
33.8 |
% |
|
$ |
(1,307 |
) |
|
(11.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision net
revenue ("PPNR")(1) |
$ |
15,090 |
|
|
$ |
12,435 |
|
|
$ |
15,691 |
|
|
$ |
2,655 |
|
|
21.4 |
% |
|
$ |
(601 |
) |
|
(3.8 |
)% |
Weighted average common shares
- Basic |
|
13,933 |
|
|
|
14,025 |
|
|
|
14,030 |
|
|
|
(92 |
) |
|
(0.7 |
)% |
|
|
(97 |
) |
|
(0.7 |
)% |
Weighted average common shares
- Diluted |
|
14,024 |
|
|
|
14,059 |
|
|
|
14,375 |
|
|
|
(35 |
) |
|
(0.2 |
)% |
|
|
(351 |
) |
|
(2.4 |
)% |
Earnings per share -
Basic |
$ |
0.70 |
|
|
$ |
0.52 |
|
|
$ |
0.79 |
|
|
$ |
0.18 |
|
|
34.6 |
% |
|
$ |
(0.09 |
) |
|
(11.4 |
)% |
Earnings per share -
Diluted |
$ |
0.70 |
|
|
$ |
0.52 |
|
|
$ |
0.77 |
|
|
$ |
0.18 |
|
|
34.6 |
% |
|
$ |
(0.07 |
) |
|
(9.1 |
)% |
Return on average assets
(annualized) |
|
1.75 |
% |
|
|
1.34 |
% |
|
|
2.15 |
% |
|
|
0.41 |
% |
|
30.6 |
% |
|
(0.40 |
)% |
|
(18.6 |
)% |
Return on average assets,
excluding impact of SBA-PPP loans (annualized)(1) |
|
1.75 |
% |
|
|
1.34 |
% |
|
|
2.10 |
% |
|
|
0.41 |
% |
|
30.6 |
% |
|
(0.35 |
)% |
|
(16.7 |
)% |
Return on average equity
(annualized) |
|
16.00 |
% |
|
|
12.30 |
% |
|
|
20.32 |
% |
|
|
3.70 |
% |
|
30.1 |
% |
|
(4.32 |
)% |
|
(21.3 |
)% |
______________
(1) Refer to Appendix for reconciliation of non-GAAP
measures
|
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
(Continued) |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
September 30, |
|
|
|
|
(in thousands except per share
data) |
|
2023 |
|
2022 |
|
$ Change |
|
% Change |
Earnings
Summary |
|
|
|
|
|
|
|
|
Interest income |
|
$ |
136,237 |
|
|
$ |
109,298 |
|
|
$ |
26,939 |
|
|
24.6 |
% |
Interest expense |
|
|
29,600 |
|
|
|
3,890 |
|
|
|
25,710 |
|
|
660.9 |
% |
Net interest income |
|
|
106,637 |
|
|
|
105,408 |
|
|
|
1,229 |
|
|
1.2 |
% |
Provision for credit
losses |
|
|
6,802 |
|
|
|
4,247 |
|
|
|
2,555 |
|
|
60.2 |
% |
Provision for credit losses on
unfunded commitments |
|
|
5 |
|
|
|
— |
|
|
|
5 |
|
|
— |
% |
Noninterest income |
|
|
19,039 |
|
|
|
23,811 |
|
|
|
(4,772 |
) |
|
(20.0 |
)% |
Noninterest expense |
|
|
83,860 |
|
|
|
82,379 |
|
|
|
1,481 |
|
|
1.8 |
% |
Income before income taxes |
|
|
35,009 |
|
|
|
42,593 |
|
|
|
(7,584 |
) |
|
(17.8 |
)% |
Income tax expense |
|
|
8,168 |
|
|
|
9,779 |
|
|
|
(1,611 |
) |
|
(16.5 |
)% |
Net income |
|
$ |
26,841 |
|
|
$ |
32,814 |
|
|
$ |
(5,973 |
) |
|
(18.2 |
)% |
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision net
revenue ("PPNR")(1) |
|
$ |
41,816 |
|
|
$ |
46,840 |
|
|
$ |
(5,024 |
) |
|
(10.7 |
)% |
Weighted average common shares
- Basic |
|
|
14,038 |
|
|
|
14,009 |
|
|
|
29 |
|
|
0.2 |
% |
Weighted average common shares
- Diluted |
|
|
14,112 |
|
|
|
14,329 |
|
|
|
(217 |
) |
|
(1.5 |
)% |
Earnings per share -
Basic |
|
$ |
1.91 |
|
|
$ |
2.34 |
|
|
$ |
(0.43 |
) |
|
(18.4 |
)% |
Earnings per share -
Diluted |
|
$ |
1.90 |
|
|
$ |
2.29 |
|
|
$ |
(0.39 |
) |
|
(17.0 |
)% |
Return on average assets
(annualized) |
|
|
1.64 |
% |
|
|
2.13 |
% |
|
(0.49 |
)% |
|
(23.0 |
)% |
Return on average assets,
excluding impact of SBA-PPP loans (annualized)(1) |
|
|
1.64 |
% |
|
|
1.94 |
% |
|
(0.30 |
)% |
|
(15.5 |
)% |
Return on average equity
(annualized) |
|
|
15.08 |
% |
|
|
20.93 |
% |
|
(5.85 |
)% |
|
(28.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
Quarter Ended |
|
September 30, |
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
(in thousands except per share
data) |
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2023 |
|
2022 |
Balance Sheet
Highlights |
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
2,272,484 |
|
|
$ |
2,009,358 |
|
|
13.1 |
% |
|
$ |
2,227,866 |
|
|
$ |
2,245,286 |
|
|
$ |
2,123,655 |
|
Investment securities
available for sale |
|
206,055 |
|
|
|
269,620 |
|
|
(23.6 |
)% |
|
|
208,464 |
|
|
|
255,762 |
|
|
|
252,481 |
|
Mortgage loans held for
sale |
|
4,843 |
|
|
|
6,875 |
|
|
(29.6 |
)% |
|
|
10,146 |
|
|
|
9,620 |
|
|
|
7,416 |
|
SBA-PPP loans, net of
fees |
|
750 |
|
|
|
2,662 |
|
|
(71.8 |
)% |
|
|
1,090 |
|
|
|
2,037 |
|
|
|
2,163 |
|
Portfolio loans
receivable(2) |
|
1,861,929 |
|
|
|
1,648,001 |
|
|
13.0 |
% |
|
|
1,837,041 |
|
|
|
1,786,109 |
|
|
|
1,728,592 |
|
Allowance for credit
losses |
|
28,279 |
|
|
|
26,091 |
|
|
8.4 |
% |
|
|
27,495 |
|
|
|
26,216 |
|
|
|
26,385 |
|
Deposits |
|
1,967,988 |
|
|
|
1,737,591 |
|
|
13.3 |
% |
|
|
1,934,361 |
|
|
|
1,944,374 |
|
|
|
1,758,072 |
|
FHLB borrowings |
|
22,000 |
|
|
|
22,000 |
|
|
— |
% |
|
|
22,000 |
|
|
|
32,000 |
|
|
|
107,000 |
|
Other borrowed funds |
|
12,062 |
|
|
|
12,062 |
|
|
— |
% |
|
|
12,062 |
|
|
|
12,062 |
|
|
|
12,062 |
|
Total stockholders'
equity |
|
242,878 |
|
|
|
214,005 |
|
|
13.5 |
% |
|
|
237,435 |
|
|
|
234,517 |
|
|
|
224,015 |
|
Tangible common equity(1) |
|
242,878 |
|
|
|
214,005 |
|
|
13.5 |
% |
|
|
237,435 |
|
|
|
234,517 |
|
|
|
224,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
13,896 |
|
|
|
14,039 |
|
|
(1.0 |
)% |
|
|
13,981 |
|
|
|
14,083 |
|
|
|
14,139 |
|
Book value per share |
$ |
17.48 |
|
|
$ |
15.24 |
|
|
14.7 |
% |
|
$ |
16.98 |
|
|
$ |
16.65 |
|
|
$ |
15.84 |
|
Tangible book value per
share(1) |
$ |
17.48 |
|
|
$ |
15.24 |
|
|
14.7 |
% |
|
$ |
16.98 |
|
|
$ |
16.65 |
|
|
$ |
15.84 |
|
Dividends per share |
$ |
0.08 |
|
|
$ |
0.06 |
|
|
33.3 |
% |
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.06 |
|
______________
(1) Refer to Appendix for reconciliation of non-GAAP
measures.(2) Loans are reflected net of deferred fees and
costs.
Operating Results - Comparison of Three Months Ended
September 30, 2023 and 2022
For the three months ended September 30, 2023,
net interest income of $36.8 million increased slightly from
$36.7 million in the same period in 2022, primarily due to
increased average balances of $245.3 million in portfolio
loans combined with a 78 basis point increase in yield for
portfolio loans partially offset by significant increases in the
cost of funding. The net interest margin decreased 53 basis points
to 6.71% for the three months ended September 30, 2023, from the
same period in 2022 as interest income on credit cards decreased
$1.0 million and interest income on SBA-PPP totaled
$0.3 million for the three months ended September 30, 2022
with no comparable amount in 2023. Net interest margin, excluding
credit card and SBA-PPP loans, decreased to 4.05% for the three
months ended September 30, 2023, compared to 4.16% for the same
period in 2022 as the costs of deposits, including money market
accounts and time deposits, outpaced the increases in yields on
interest-bearing deposits and portfolio loans.
For the three months ended September 30, 2023,
average interest earning assets increased $166.4 million, or 8.3%,
to $2.2 billion as compared to the same period in 2022, and
the average yield on interest earning assets increased 113 basis
points. Compared to the same period in the prior year, average
interest-bearing liabilities increased $280.9 million, or 27.9%,
and the average cost of interest-bearing liabilities increased to
3.37%, a 271 basis point increase from 0.66%.
For the three months ended September 30, 2023,
the provision for credit losses was $2.3 million, an increase
of $1.0 million from the same period in 2022. Net charge-offs
for the three months ended September 30, 2023 were
$1.8 million, or 0.38% on an annualized basis of average
portfolio loans, compared to $1.6 million, or 0.39% on an
annualized basis of average loans for the same period in 2022. Of
the $1.8 million in net charge-offs during the quarter,
$1.4 million related to secured and partially secured cards in
the credit card portfolio and $0.3 million related to
unsecured cards.
For the three months ended September 30, 2023,
noninterest income of $6.3 million decreased
$0.8 million, or 11.0%, from the same period in 2022. Credit
card fees declined by $1.1 million as the number of open
customer accounts declined year over year, which resulted in lower
interchange and other fee income.
Credit card loan balances, net of reserves,
decreased by $14.1 million to $122.5 million as of
September 30, 2023, from $136.7 million at September 30,
2022. The related deposit account balances decreased 10.0% to
$181.2 million at September 30, 2023 when compared to
$201.3 million at September 30, 2022 reflecting the reduction
in the number of open customer accounts year over year.
The efficiency ratio for the three months ended
September 30, 2023 was 65.02% compared to 64.16% for the three
months ended September 30, 2022.
For the three months ended September 30, 2023,
noninterest expense of $28.0 million decreased slightly from
$28.1 million for the same period in 2022. The change includes
decreases in professional fees of $1.5 million and data processing
expense of $0.8 million partially offset by increases in salaries
and employee benefits of $1.7 million and other operating expense
of $0.5 million.
Operating Results - Comparison of Nine
Months Ended September 30, 2023 and 2022
For the nine months ended September 30, 2023,
net interest income of $106.6 million increased
$1.2 million from the same period in 2022, primarily due to
increased average balances of $252.4 million in portfolio
loans combined with the 81 basis point increase in yield for
portfolio loans offset by significant increases in the cost of
funding. The net interest margin decreased 35 basis points to 6.66%
for the nine months ended September 30, 2023 from the same period
in 2022. Net interest margin, excluding credit card and SBA-PPP
loans, was 3.98% for the nine months ended September 30, 2023,
compared to 3.94% for the same period in 2022.
For the nine months ended September 30, 2023,
average interest earning assets increased $129.2 million, or
6.4%, to $2.1 billion as compared to the same period in 2022,
and the average yield on interest earning assets increased 124
basis points. Compared to the same period in the prior year,
average interest-bearing liabilities increased $229.8 million,
or 22.4%, while the average cost of interest-bearing liabilities
increased 264 basis points to 3.15% from 0.51%.
For the nine months ended September 30, 2023,
the provision for credit losses was $6.8 million, an increase
of $2.6 million from the prior year, attributable primarily to
the credit card portfolio. Net charge-offs for the nine months
ended September 30, 2023 were $6.0 million, or 0.45% annualized of
average portfolio loans, compared to $1.7 million, or 0.23%
annualized of average portfolio loans, for the same period in 2022.
The $6.0 million in net charge-offs during the nine months ended
September 30, 2023 was comprised primarily of credit card portfolio
net charge-offs with $4.1 million related to secured and partially
secured cards while $1.0 million was related to unsecured
cards.
For the nine months ended September 30, 2023,
noninterest income of $19.0 million decreased
$4.8 million, or 20.0%, from the same period in 2022. The
decrease was primarily driven by the decline in credit card fees of
$4.4 million as the number of open customer accounts declined
to 529,205 at September 30, 2023 from 576,844 year over year,
which resulted in lower interchange and other fee income recognized
compared to the prior year. The elevated interest rate environment
continues to put pressure on the mortgage market, resulting in
declines in home loan sales and home loan refinances, which has
resulted in a $0.6 million decrease in mortgage banking
revenue compared to the prior year.
The efficiency ratio for the nine months ended
September 30, 2023 was 66.73% compared to 63.75% for the nine
months ended September 30, 2022.
For the nine months ended September 30, 2023,
noninterest expense of $83.9 million increased
$1.5 million, or 1.8%, from the same period in 2022. The
increase was primarily driven by a $6.0 million, or 19.2%, increase
in salaries and employee benefits, partially offset by a $3.2
million, or 13.9%, decrease in data processing expense and a $1.2
million decrease in professional fees due to a reduction in third
party consulting fees. The decrease in data processing expense was
the result of a contract renegotiation entered into in the first
quarter 2022 in the OpenSky® Division as well as
fewer average open cards during the period.
Financial Condition
Total assets at September 30, 2023 were
$2.3 billion, an increase of $44.6 million, or 2.0%, from
the balance at June 30, 2023 and an increase of
$263.1 million, or 13.1%, from the balance at September 30,
2022. Net portfolio loans, which exclude mortgage loans held for
sale and SBA-PPP loans, totaled $1.9 billion at September 30,
2023, an increase of $24.9 million, up 1.4% or 5.4%
annualized, compared to June 30, 2023, and an increase of
$213.9 million, or 13.0%, compared to $1.6 billion at
September 30, 2022.
The Company recorded a provision for credit
losses of $6.8 million during the nine months ended September
30, 2023, which increased the allowance for credit losses to
$28.3 million, or 1.52% of total loans at September 30, 2023,
representing an increase of $0.8 million or 2.9%, from the
balance at June 30, 2023. Nonperforming assets, which were
comprised solely of nonperforming loans as of September 30, 2023,
were $15.2 million, or 0.67% of total assets, down from
$15.7 million, or 0.71% of total assets at June 30, 2023
and up from $8.6 million, or 0.43% of total assets at
September 30, 2022. Included in nonperforming assets is a single
$8.2 million, multi-unit residential real estate loan that was
downgraded in the first quarter of 2023.
Deposits were $2.0 billion at September 30,
2023, an increase of $33.6 million, or 1.7%, from the balance
at June 30, 2023 and an increase of $230.4 million, or
13.3%, from the balance at September 30, 2022. Average deposits of
$1.9 billion for the three months ended September 30, 2023,
increased $37.1 million, or 2.0%, as compared to the three
months ended June 30, 2023. Rising interest rates have resulted in
some customers moving balances from noninterest-bearing deposit
accounts to interest-bearing deposit accounts. As a result of the
migration, average noninterest-bearing deposit balances decreased
$135.5 million to $666.9 million for the three months
ended September 30, 2023, as compared to the three months ended
September 30, 2022. These deposits represented 34.6% of total
deposits at September 30, 2023 compared to 46.4% at September 30,
2022. Uninsured deposits were approximately $857.7 million as
of September 30, 2023, representing 43.6% of the Company's deposit
portfolio, compared to $860.4 million, or 44.5%, at
June 30, 2023, and $960.2 million, or 55.3%, at September
30, 2022.
Stockholders’ equity increased to
$242.9 million as of September 30, 2023, compared to
$237.4 million at June 30, 2023 and $214.0 million
at September 30, 2022. Shares repurchased and retired through
September 30, 2023 as part of the Company's stock repurchase
program totaled 385,919 shares at an average price of $18.12, for a
total cost of $7.0 million including commissions. As of September
30, 2023, the Bank's capital ratios continued to exceed the
regulatory requirements for a “well-capitalized” institution.
|
Consolidated Statements of Income (Unaudited) |
|
Three Months Ended |
|
Nine Months Ended |
(in thousands) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
45,385 |
|
|
$ |
42,991 |
|
|
$ |
41,275 |
|
|
$ |
38,763 |
|
|
$ |
36,451 |
|
|
$ |
129,651 |
|
|
$ |
105,645 |
|
Investment securities available for sale |
|
1,089 |
|
|
|
1,266 |
|
|
|
1,377 |
|
|
|
1,402 |
|
|
|
1,362 |
|
|
|
3,732 |
|
|
|
2,510 |
|
Federal funds sold and other |
|
1,267 |
|
|
|
823 |
|
|
|
764 |
|
|
|
1,183 |
|
|
|
527 |
|
|
|
2,854 |
|
|
|
1,143 |
|
Total interest income |
|
47,741 |
|
|
|
45,080 |
|
|
|
43,416 |
|
|
|
41,348 |
|
|
|
38,340 |
|
|
|
136,237 |
|
|
|
109,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
10,703 |
|
|
|
9,409 |
|
|
|
7,754 |
|
|
|
4,377 |
|
|
|
1,386 |
|
|
|
27,866 |
|
|
|
3,234 |
|
Borrowed funds |
|
228 |
|
|
|
331 |
|
|
|
1,175 |
|
|
|
1,772 |
|
|
|
277 |
|
|
|
1,734 |
|
|
|
656 |
|
Total interest expense |
|
10,931 |
|
|
|
9,740 |
|
|
|
8,929 |
|
|
|
6,149 |
|
|
|
1,663 |
|
|
|
29,600 |
|
|
|
3,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
36,810 |
|
|
|
35,340 |
|
|
|
34,487 |
|
|
|
35,199 |
|
|
|
36,677 |
|
|
|
106,637 |
|
|
|
105,408 |
|
Provision for credit losses |
|
2,280 |
|
|
|
2,862 |
|
|
|
1,660 |
|
|
|
2,384 |
|
|
|
1,260 |
|
|
|
6,802 |
|
|
|
4,247 |
|
Provision for (release of) credit losses on unfunded
commitments |
|
24 |
|
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
Net interest income
after provision for credit losses |
|
34,506 |
|
|
|
32,478 |
|
|
|
32,846 |
|
|
|
32,815 |
|
|
|
35,417 |
|
|
|
99,830 |
|
|
|
101,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
|
250 |
|
|
|
245 |
|
|
|
229 |
|
|
|
222 |
|
|
|
199 |
|
|
|
724 |
|
|
|
545 |
|
Credit card fees |
|
4,387 |
|
|
|
4,706 |
|
|
|
4,210 |
|
|
|
4,314 |
|
|
|
5,524 |
|
|
|
13,303 |
|
|
|
17,658 |
|
Mortgage banking revenue |
|
1,243 |
|
|
|
1,332 |
|
|
|
1,155 |
|
|
|
554 |
|
|
|
969 |
|
|
|
3,730 |
|
|
|
4,312 |
|
Other income |
|
446 |
|
|
|
404 |
|
|
|
432 |
|
|
|
471 |
|
|
|
416 |
|
|
|
1,282 |
|
|
|
1,296 |
|
Total noninterest income |
|
6,326 |
|
|
|
6,687 |
|
|
|
6,026 |
|
|
|
5,561 |
|
|
|
7,108 |
|
|
|
19,039 |
|
|
|
23,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
12,419 |
|
|
|
12,143 |
|
|
|
12,554 |
|
|
|
11,769 |
|
|
|
10,747 |
|
|
|
37,116 |
|
|
|
31,129 |
|
Occupancy and equipment |
|
1,351 |
|
|
|
1,536 |
|
|
|
1,213 |
|
|
|
1,388 |
|
|
|
1,138 |
|
|
|
4,100 |
|
|
|
3,476 |
|
Professional fees |
|
2,358 |
|
|
|
2,608 |
|
|
|
2,374 |
|
|
|
2,426 |
|
|
|
3,848 |
|
|
|
7,340 |
|
|
|
8,586 |
|
Data processing |
|
6,469 |
|
|
|
6,559 |
|
|
|
6,530 |
|
|
|
6,697 |
|
|
|
7,178 |
|
|
|
19,558 |
|
|
|
22,721 |
|
Advertising |
|
1,565 |
|
|
|
2,646 |
|
|
|
517 |
|
|
|
726 |
|
|
|
1,632 |
|
|
|
4,728 |
|
|
|
5,494 |
|
Loan processing |
|
426 |
|
|
|
660 |
|
|
|
349 |
|
|
|
350 |
|
|
|
625 |
|
|
|
1,435 |
|
|
|
1,352 |
|
Foreclosed real estate expenses, net |
|
1 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
Other operating |
|
3,457 |
|
|
|
3,440 |
|
|
|
2,679 |
|
|
|
3,378 |
|
|
|
2,926 |
|
|
|
9,576 |
|
|
|
9,621 |
|
Total noninterest expenses |
|
28,046 |
|
|
|
29,592 |
|
|
|
26,222 |
|
|
|
26,734 |
|
|
|
28,094 |
|
|
|
83,860 |
|
|
|
82,379 |
|
Income before income
taxes |
|
12,786 |
|
|
|
9,573 |
|
|
|
12,650 |
|
|
|
11,642 |
|
|
|
14,431 |
|
|
|
35,009 |
|
|
|
42,593 |
|
Income tax expense |
|
2,998 |
|
|
|
2,255 |
|
|
|
2,915 |
|
|
|
2,651 |
|
|
|
3,336 |
|
|
|
8,168 |
|
|
|
9,779 |
|
Net
income |
$ |
9,788 |
|
|
$ |
7,318 |
|
|
$ |
9,735 |
|
|
$ |
8,991 |
|
|
$ |
11,095 |
|
|
$ |
26,841 |
|
|
$ |
32,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(unaudited) |
(in thousands except share
data) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
13,767 |
|
|
$ |
18,619 |
|
|
$ |
14,477 |
|
|
$ |
19,963 |
|
|
$ |
14,774 |
|
Interest-bearing deposits at
other financial institutions |
|
130,428 |
|
|
|
100,343 |
|
|
|
125,448 |
|
|
|
39,764 |
|
|
|
20,867 |
|
Federal funds sold |
|
1,957 |
|
|
|
376 |
|
|
|
462 |
|
|
|
20,688 |
|
|
|
1,421 |
|
Total cash and cash equivalents |
|
146,152 |
|
|
|
119,338 |
|
|
|
140,387 |
|
|
|
80,415 |
|
|
|
37,062 |
|
Investment securities
available for sale |
|
206,055 |
|
|
|
208,464 |
|
|
|
255,762 |
|
|
|
252,481 |
|
|
|
269,620 |
|
Marketable equity
securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
232 |
|
Restricted investments |
|
4,340 |
|
|
|
3,803 |
|
|
|
4,215 |
|
|
|
7,362 |
|
|
|
3,627 |
|
Loans held for sale |
|
4,843 |
|
|
|
10,146 |
|
|
|
9,620 |
|
|
|
7,416 |
|
|
|
6,875 |
|
U.S. Small Business
Administration (“SBA”) Payroll Protection Program (“PPP”) loans
receivable, net of fees and costs |
|
750 |
|
|
|
1,090 |
|
|
|
2,037 |
|
|
|
2,163 |
|
|
|
2,662 |
|
Portfolio loans receivable,
net of deferred fees and costs |
|
1,861,929 |
|
|
|
1,837,041 |
|
|
|
1,786,109 |
|
|
|
1,728,592 |
|
|
|
1,648,001 |
|
Less allowance for credit losses |
|
(28,279 |
) |
|
|
(27,495 |
) |
|
|
(26,216 |
) |
|
|
(26,385 |
) |
|
|
(26,091 |
) |
Total portfolio loans held for investment, net |
|
1,833,650 |
|
|
|
1,809,546 |
|
|
|
1,759,893 |
|
|
|
1,702,207 |
|
|
|
1,621,910 |
|
Premises and equipment,
net |
|
5,297 |
|
|
|
5,494 |
|
|
|
5,367 |
|
|
|
3,386 |
|
|
|
3,212 |
|
Accrued interest
receivable |
|
11,231 |
|
|
|
10,155 |
|
|
|
9,985 |
|
|
|
9,489 |
|
|
|
7,890 |
|
Deferred tax asset |
|
13,644 |
|
|
|
13,616 |
|
|
|
12,898 |
|
|
|
13,777 |
|
|
|
14,047 |
|
Bank owned life insurance |
|
37,315 |
|
|
|
37,041 |
|
|
|
36,781 |
|
|
|
36,524 |
|
|
|
36,267 |
|
Other assets |
|
9,207 |
|
|
|
9,173 |
|
|
|
8,341 |
|
|
|
8,435 |
|
|
|
5,954 |
|
Total assets |
$ |
2,272,484 |
|
|
$ |
2,227,866 |
|
|
$ |
2,245,286 |
|
|
$ |
2,123,655 |
|
|
$ |
2,009,358 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
680,803 |
|
|
$ |
693,129 |
|
|
$ |
705,801 |
|
|
$ |
674,313 |
|
|
$ |
806,033 |
|
Interest-bearing |
|
1,287,185 |
|
|
|
1,241,232 |
|
|
|
1,238,573 |
|
|
|
1,083,759 |
|
|
|
931,558 |
|
Total deposits |
|
1,967,988 |
|
|
|
1,934,361 |
|
|
|
1,944,374 |
|
|
|
1,758,072 |
|
|
|
1,737,591 |
|
Federal Home Loan Bank
advances |
|
22,000 |
|
|
|
22,000 |
|
|
|
32,000 |
|
|
|
107,000 |
|
|
|
22,000 |
|
Other borrowed funds |
|
12,062 |
|
|
|
12,062 |
|
|
|
12,062 |
|
|
|
12,062 |
|
|
|
12,062 |
|
Accrued interest payable |
|
5,204 |
|
|
|
3,029 |
|
|
|
1,977 |
|
|
|
1,031 |
|
|
|
481 |
|
Other liabilities |
|
22,352 |
|
|
|
18,979 |
|
|
|
20,356 |
|
|
|
21,475 |
|
|
|
23,219 |
|
Total liabilities |
|
2,029,606 |
|
|
|
1,990,431 |
|
|
|
2,010,769 |
|
|
|
1,899,640 |
|
|
|
1,795,353 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
|
|
|
Common stock |
|
139 |
|
|
|
140 |
|
|
|
141 |
|
|
|
141 |
|
|
|
140 |
|
Additional paid-in
capital |
|
54,549 |
|
|
|
55,856 |
|
|
|
57,277 |
|
|
|
58,190 |
|
|
|
56,532 |
|
Retained earnings |
|
206,033 |
|
|
|
197,490 |
|
|
|
191,058 |
|
|
|
182,435 |
|
|
|
174,916 |
|
Accumulated other
comprehensive loss |
|
(17,843 |
) |
|
|
(16,051 |
) |
|
|
(13,959 |
) |
|
|
(16,751 |
) |
|
|
(17,583 |
) |
Total stockholders' equity |
|
242,878 |
|
|
|
237,435 |
|
|
|
234,517 |
|
|
|
224,015 |
|
|
|
214,005 |
|
Total liabilities and stockholders' equity |
$ |
2,272,484 |
|
|
$ |
2,227,866 |
|
|
$ |
2,245,286 |
|
|
$ |
2,123,655 |
|
|
$ |
2,009,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables show the average
outstanding balance of each principal category of our assets,
liabilities and stockholders’ equity, together with the average
yields on our assets and the average costs of our liabilities for
the periods indicated. Such yields and costs are calculated by
dividing the annualized income or expense by the average daily
balances of the corresponding assets or liabilities for the same
period.
|
|
|
|
|
|
|
Three Months EndedSeptember 30,
2023 |
|
Three Months EndedJune 30, 2023 |
|
Three Months EndedSeptember 30, 2022 |
|
AverageOutstandingBalance |
|
Interest Income/Expense |
|
AverageYield/Rate(1) |
|
AverageOutstandingBalance |
|
Interest Income/Expense |
|
AverageYield/Rate(1) |
|
AverageOutstandingBalance |
|
Interest Income/Expense |
|
AverageYield/Rate(1) |
|
(in thousands) |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
87,112 |
|
|
$ |
1,183 |
|
|
5.39 |
% |
|
$ |
66,401 |
|
|
$ |
733 |
|
|
4.43 |
% |
|
$ |
101,187 |
|
|
$ |
471 |
|
|
1.85 |
% |
Federal funds sold |
|
1,134 |
|
|
|
15 |
|
|
5.25 |
|
|
|
1,638 |
|
|
|
20 |
|
|
4.90 |
|
|
|
1,492 |
|
|
|
7 |
|
|
1.87 |
|
Investment securities available for sale |
|
229,731 |
|
|
|
1,089 |
|
|
1.88 |
|
|
|
255,057 |
|
|
|
1,266 |
|
|
1.99 |
|
|
|
287,944 |
|
|
|
1,362 |
|
|
1.88 |
|
Restricted investments |
|
4,058 |
|
|
|
69 |
|
|
6.75 |
|
|
|
4,185 |
|
|
|
71 |
|
|
6.80 |
|
|
|
4,116 |
|
|
|
49 |
|
|
4.72 |
|
Loans held for sale |
|
6,670 |
|
|
|
111 |
|
|
6.60 |
|
|
|
7,047 |
|
|
|
111 |
|
|
6.32 |
|
|
|
7,879 |
|
|
|
102 |
|
|
5.15 |
|
SBA-PPP loans receivable |
|
906 |
|
|
|
11 |
|
|
4.82 |
|
|
|
1,808 |
|
|
|
7 |
|
|
1.55 |
|
|
|
5,906 |
|
|
|
263 |
|
|
17.66 |
|
Portfolio loans receivable(2) |
|
1,846,866 |
|
|
|
45,263 |
|
|
9.72 |
|
|
|
1,800,800 |
|
|
|
42,872 |
|
|
9.55 |
|
|
|
1,601,546 |
|
|
|
36,086 |
|
|
8.94 |
|
Total interest earning assets |
|
2,176,477 |
|
|
|
47,741 |
|
|
8.70 |
|
|
|
2,136,936 |
|
|
|
45,080 |
|
|
8.46 |
|
|
|
2,010,070 |
|
|
|
38,340 |
|
|
7.57 |
|
Noninterest earning
assets |
|
44,640 |
|
|
|
|
|
|
|
47,415 |
|
|
|
|
|
|
|
39,008 |
|
|
|
|
|
Total assets |
$ |
2,221,117 |
|
|
|
|
|
|
$ |
2,184,351 |
|
|
|
|
|
|
$ |
2,049,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand accounts |
$ |
215,527 |
|
|
|
71 |
|
|
0.13 |
|
|
$ |
207,264 |
|
|
|
67 |
|
|
0.13 |
|
|
$ |
244,929 |
|
|
|
39 |
|
|
0.06 |
|
Savings |
|
5,582 |
|
|
|
3 |
|
|
0.21 |
|
|
|
5,822 |
|
|
|
2 |
|
|
0.14 |
|
|
|
9,216 |
|
|
|
1 |
|
|
0.04 |
|
Money market accounts |
|
655,990 |
|
|
|
6,373 |
|
|
3.85 |
|
|
|
625,515 |
|
|
|
5,411 |
|
|
3.47 |
|
|
|
555,634 |
|
|
|
815 |
|
|
0.58 |
|
Time deposits |
|
374,429 |
|
|
|
4,256 |
|
|
4.51 |
|
|
|
366,421 |
|
|
|
3,929 |
|
|
4.30 |
|
|
|
155,091 |
|
|
|
531 |
|
|
1.36 |
|
Borrowed funds |
|
34,932 |
|
|
|
228 |
|
|
2.59 |
|
|
|
43,183 |
|
|
|
331 |
|
|
3.07 |
|
|
|
40,700 |
|
|
|
277 |
|
|
2.70 |
|
Total interest-bearing liabilities |
|
1,286,460 |
|
|
|
10,931 |
|
|
3.37 |
|
|
|
1,248,205 |
|
|
|
9,740 |
|
|
3.13 |
|
|
|
1,005,570 |
|
|
|
1,663 |
|
|
0.66 |
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
25,047 |
|
|
|
|
|
|
|
21,104 |
|
|
|
|
|
|
|
24,440 |
|
|
|
|
|
Noninterest-bearing deposits |
|
666,939 |
|
|
|
|
|
|
|
676,358 |
|
|
|
|
|
|
|
802,458 |
|
|
|
|
|
Stockholders’ equity |
|
242,671 |
|
|
|
|
|
|
|
238,684 |
|
|
|
|
|
|
|
216,610 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,221,117 |
|
|
|
|
|
|
$ |
2,184,351 |
|
|
|
|
|
|
$ |
2,049,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
5.33 |
% |
|
|
|
|
|
5.33 |
% |
|
|
|
|
|
6.91 |
% |
Net interest income |
|
|
$ |
36,810 |
|
|
|
|
|
|
$ |
35,340 |
|
|
|
|
|
|
$ |
36,677 |
|
|
|
Net interest margin(3) |
|
|
|
|
6.71 |
% |
|
|
|
|
|
6.63 |
% |
|
|
|
|
|
7.24 |
% |
_______________
(1) Annualized.(2) Includes
nonaccrual loans.(3) For the three months ended
September 30, 2023, June 30, 2023, and September 30, 2022,
collectively, SBA-PPP loans and credit card loans accounted for
266, 257 and 308 basis points of the reported net interest margin,
respectively.
|
|
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
AverageOutstandingBalance |
|
Interest Income/Expense |
|
AverageYield/Rate(1) |
|
AverageOutstandingBalance |
|
Interest Income/Expense |
|
AverageYield/Rate(1) |
|
(in thousands) |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
72,116 |
|
|
$ |
2,531 |
|
|
4.69 |
% |
|
$ |
172,033 |
|
|
$ |
1,001 |
|
|
0.78 |
% |
Federal funds sold |
|
1,605 |
|
|
|
53 |
|
|
4.42 |
|
|
|
2,590 |
|
|
|
9 |
|
|
0.48 |
|
Investment securities available for sale |
|
252,993 |
|
|
|
3,732 |
|
|
1.97 |
|
|
|
234,294 |
|
|
|
2,510 |
|
|
1.43 |
|
Restricted investments |
|
5,184 |
|
|
|
270 |
|
|
6.96 |
|
|
|
3,913 |
|
|
|
133 |
|
|
4.54 |
|
Loans held for sale |
|
6,145 |
|
|
|
299 |
|
|
6.51 |
|
|
|
10,921 |
|
|
|
347 |
|
|
4.25 |
|
SBA-PPP loans receivable |
|
1,600 |
|
|
|
26 |
|
|
2.17 |
|
|
|
39,063 |
|
|
|
3,449 |
|
|
11.80 |
|
Portfolio loans receivable(2) |
|
1,799,755 |
|
|
|
129,326 |
|
|
9.61 |
|
|
|
1,547,386 |
|
|
|
101,849 |
|
|
8.80 |
|
Total interest earning assets |
|
2,139,398 |
|
|
|
136,237 |
|
|
8.51 |
|
|
|
2,010,200 |
|
|
|
109,298 |
|
|
7.27 |
|
Noninterest earning
assets |
|
44,123 |
|
|
|
|
|
|
|
47,936 |
|
|
|
|
|
Total assets |
$ |
2,183,521 |
|
|
|
|
|
|
$ |
2,058,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand accounts |
$ |
203,099 |
|
|
|
208 |
|
|
0.14 |
|
|
$ |
265,854 |
|
|
|
114 |
|
|
0.06 |
|
Savings |
|
5,965 |
|
|
|
6 |
|
|
0.13 |
|
|
|
9,138 |
|
|
|
4 |
|
|
0.06 |
|
Money market accounts |
|
628,977 |
|
|
|
16,371 |
|
|
3.48 |
|
|
|
553,794 |
|
|
|
1,512 |
|
|
0.37 |
|
Time deposits |
|
353,635 |
|
|
|
11,281 |
|
|
4.27 |
|
|
|
161,982 |
|
|
|
1,604 |
|
|
1.32 |
|
Borrowed funds |
|
65,192 |
|
|
|
1,734 |
|
|
3.56 |
|
|
|
36,299 |
|
|
|
656 |
|
|
2.41 |
|
Total interest-bearing liabilities |
|
1,256,868 |
|
|
|
29,600 |
|
|
3.15 |
|
|
|
1,027,067 |
|
|
|
3,890 |
|
|
0.51 |
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
22,846 |
|
|
|
|
|
|
|
23,748 |
|
|
|
|
|
Noninterest-bearing deposits |
|
665,821 |
|
|
|
|
|
|
|
797,660 |
|
|
|
|
|
Stockholders’ equity |
|
237,986 |
|
|
|
|
|
|
|
209,661 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,183,521 |
|
|
|
|
|
|
$ |
2,058,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
5.36 |
% |
|
|
|
|
|
6.76 |
% |
Net interest income |
|
|
$ |
106,637 |
|
|
|
|
|
|
$ |
105,408 |
|
|
|
Net interest margin(3) |
|
|
|
|
6.66 |
% |
|
|
|
|
|
7.01 |
% |
(1) Annualized.(2) Includes
nonaccrual loans.(3) For the nine months ended
September 30, 2023 and 2022, collectively, SBA-PPP loans and credit
card loans accounted for 268 and 307 basis points of the reported
net interest margin, respectively.
The Company’s reportable segments represent
business units with discrete financial information whose results
are regularly reviewed by management. The four segments include
Commercial Banking, Capital Bank Home Loans (the Company’s mortgage
loan division), OpenSky® (the Company’s credit card division) and
the Corporate Office. The following schedule presents financial
information for each reportable segment for the three and nine
months ended September 30, 2023 and September 30, 2022.
|
Segments |
For the
three months ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Commercial Bank |
|
CBHL |
|
OpenSky® |
|
Corporate(2) |
|
Eliminations |
|
Consolidated |
Interest income |
|
$ |
30,409 |
|
|
$ |
111 |
|
|
$ |
16,143 |
|
|
$ |
1,162 |
|
|
$ |
(84 |
) |
|
$ |
47,741 |
|
Interest expense |
|
|
10,736 |
|
|
|
32 |
|
|
|
— |
|
|
|
247 |
|
|
|
(84 |
) |
|
|
10,931 |
|
Net interest income |
|
|
19,673 |
|
|
|
79 |
|
|
|
16,143 |
|
|
|
915 |
|
|
|
— |
|
|
|
36,810 |
|
Provision for credit
losses |
|
|
275 |
|
|
|
— |
|
|
|
1,875 |
|
|
|
130 |
|
|
|
— |
|
|
|
2,280 |
|
Release of credit losses on
unfunded commitments |
|
|
24 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
Net interest income after provision |
|
|
19,374 |
|
|
|
79 |
|
|
|
14,268 |
|
|
|
785 |
|
|
|
— |
|
|
|
34,506 |
|
Noninterest income |
|
|
665 |
|
|
|
1,255 |
|
|
|
4,405 |
|
|
|
1 |
|
|
|
— |
|
|
|
6,326 |
|
Noninterest expense(1) |
|
|
15,784 |
|
|
|
1,502 |
|
|
|
10,637 |
|
|
|
123 |
|
|
|
— |
|
|
|
28,046 |
|
Net income (loss) before taxes |
|
$ |
4,255 |
|
|
$ |
(168 |
) |
|
$ |
8,036 |
|
|
$ |
663 |
|
|
$ |
— |
|
|
$ |
12,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
2,102,749 |
|
|
$ |
5,280 |
|
|
$ |
116,318 |
|
|
$ |
264,950 |
|
|
$ |
(216,813 |
) |
|
$ |
2,272,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Commercial Bank |
|
CBHL |
|
OpenSky® |
|
Corporate(2) |
|
Eliminations |
|
Consolidated |
Interest income |
|
$ |
28,742 |
|
|
$ |
111 |
|
|
$ |
15,168 |
|
|
$ |
1,134 |
|
|
$ |
(75 |
) |
|
$ |
45,080 |
|
Interest expense |
|
|
9,537 |
|
|
|
42 |
|
|
|
— |
|
|
|
236 |
|
|
|
(75 |
) |
|
|
9,740 |
|
Net interest income |
|
|
19,205 |
|
|
|
69 |
|
|
|
15,168 |
|
|
|
898 |
|
|
|
— |
|
|
|
35,340 |
|
Provision for credit
losses |
|
|
735 |
|
|
|
— |
|
|
|
2,127 |
|
|
|
— |
|
|
|
— |
|
|
|
2,862 |
|
Net interest income after provision |
|
|
18,470 |
|
|
|
69 |
|
|
|
13,041 |
|
|
|
898 |
|
|
|
— |
|
|
|
32,478 |
|
Noninterest income |
|
|
810 |
|
|
|
1,161 |
|
|
|
4,714 |
|
|
|
2 |
|
|
|
— |
|
|
|
6,687 |
|
Noninterest expense(1) |
|
|
15,918 |
|
|
|
1,481 |
|
|
|
12,059 |
|
|
|
134 |
|
|
|
— |
|
|
|
29,592 |
|
Net income (loss) before taxes |
|
$ |
3,362 |
|
|
$ |
(251 |
) |
|
$ |
5,696 |
|
|
$ |
766 |
|
|
$ |
— |
|
|
$ |
9,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
2,047,400 |
|
|
$ |
10,605 |
|
|
$ |
116,123 |
|
|
$ |
260,309 |
|
|
$ |
(206,571 |
) |
|
$ |
2,227,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Commercial Bank |
|
CBHL |
|
OpenSky® |
|
Corporate(2) |
|
Eliminations |
|
Consolidated |
Interest income |
|
$ |
20,382 |
|
|
$ |
102 |
|
|
$ |
17,103 |
|
|
$ |
812 |
|
|
$ |
(59 |
) |
|
$ |
38,340 |
|
Interest expense |
|
|
1,449 |
|
|
|
40 |
|
|
|
— |
|
|
|
233 |
|
|
|
(59 |
) |
|
|
1,663 |
|
Net interest income |
|
|
18,933 |
|
|
|
62 |
|
|
|
17,103 |
|
|
|
579 |
|
|
|
— |
|
|
|
36,677 |
|
Provision (release of
provision) for loan losses |
|
|
(980 |
) |
|
|
— |
|
|
|
2,240 |
|
|
|
— |
|
|
|
— |
|
|
|
1,260 |
|
Net interest income after provision |
|
|
19,913 |
|
|
|
62 |
|
|
|
14,863 |
|
|
|
579 |
|
|
|
— |
|
|
|
35,417 |
|
Noninterest income |
|
|
468 |
|
|
|
1,115 |
|
|
|
5,524 |
|
|
|
1 |
|
|
|
— |
|
|
|
7,108 |
|
Noninterest expense(1) |
|
|
13,798 |
|
|
|
2,017 |
|
|
|
12,101 |
|
|
|
178 |
|
|
|
— |
|
|
|
28,094 |
|
Net income (loss) before taxes |
|
$ |
6,583 |
|
|
$ |
(840 |
) |
|
$ |
8,286 |
|
|
$ |
402 |
|
|
$ |
— |
|
|
$ |
14,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,823,049 |
|
|
$ |
7,664 |
|
|
$ |
128,842 |
|
|
$ |
234,731 |
|
|
$ |
(184,928 |
) |
|
$ |
2,009,358 |
|
________________________
(1) Noninterest expense includes
$6.1 million, $5.9 million and $6.6 million in data processing
expense in OpenSky’s® segment for the three months ended September
30, 2023 June 30, 2023, and September 30, 2022,
respectively.(2) The Corporate segment invests
idle cash in revenue-producing assets including interest-bearing
cash accounts, loan participations and other appropriate
investments for the Company.
|
Segments |
For the
nine months ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Commercial Bank |
|
CBHL |
|
OpenSky® |
|
Corporate(2) |
|
Eliminations |
|
Consolidated |
Interest income |
|
$ |
85,451 |
|
|
$ |
299 |
|
|
$ |
47,441 |
|
|
$ |
3,274 |
|
|
$ |
(228 |
) |
|
$ |
136,237 |
|
Interest expense |
|
|
29,012 |
|
|
|
104 |
|
|
|
— |
|
|
|
712 |
|
|
|
(228 |
) |
|
|
29,600 |
|
Net interest income |
|
|
56,439 |
|
|
|
195 |
|
|
|
47,441 |
|
|
|
2,562 |
|
|
|
— |
|
|
|
106,637 |
|
Provision for credit
losses |
|
|
849 |
|
|
|
— |
|
|
|
5,823 |
|
|
|
130 |
|
|
|
— |
|
|
|
6,802 |
|
Release of credit losses on
unfunded commitments |
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Net interest income after provision |
|
|
55,585 |
|
|
|
195 |
|
|
|
41,618 |
|
|
|
2,432 |
|
|
|
— |
|
|
|
99,830 |
|
Noninterest income |
|
|
1,964 |
|
|
|
3,743 |
|
|
|
13,329 |
|
|
|
3 |
|
|
|
— |
|
|
|
19,039 |
|
Noninterest expense(1) |
|
|
46,701 |
|
|
|
4,564 |
|
|
|
32,146 |
|
|
|
449 |
|
|
|
— |
|
|
|
83,860 |
|
Net income (loss) before taxes |
|
$ |
10,848 |
|
|
$ |
(626 |
) |
|
$ |
22,801 |
|
|
$ |
1,986 |
|
|
$ |
— |
|
|
$ |
35,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
2,102,749 |
|
|
$ |
5,280 |
|
|
$ |
116,318 |
|
|
$ |
264,950 |
|
|
$ |
(216,813 |
) |
|
$ |
2,272,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
nine months ended September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Commercial Bank |
|
CBHL |
|
OpenSky® |
|
Corporate(2) |
|
Eliminations |
|
Consolidated |
Interest income |
|
$ |
57,794 |
|
|
$ |
347 |
|
|
$ |
48,823 |
|
|
$ |
2,457 |
|
|
$ |
(123 |
) |
|
$ |
109,298 |
|
Interest expense |
|
|
3,255 |
|
|
|
185 |
|
|
|
— |
|
|
|
573 |
|
|
|
(123 |
) |
|
|
3,890 |
|
Net interest income |
|
|
54,539 |
|
|
|
162 |
|
|
|
48,823 |
|
|
|
1,884 |
|
|
|
— |
|
|
|
105,408 |
|
Provision (release of
provision) for loan losses |
|
|
(980 |
) |
|
|
— |
|
|
|
5,227 |
|
|
|
— |
|
|
|
— |
|
|
|
4,247 |
|
Net interest income after provision |
|
|
55,519 |
|
|
|
162 |
|
|
|
43,596 |
|
|
|
1,884 |
|
|
|
— |
|
|
|
101,161 |
|
Noninterest income |
|
|
1,571 |
|
|
|
4,580 |
|
|
|
17,658 |
|
|
|
2 |
|
|
|
— |
|
|
|
23,811 |
|
Noninterest expense(1) |
|
|
38,741 |
|
|
|
6,364 |
|
|
|
36,923 |
|
|
|
351 |
|
|
|
— |
|
|
|
82,379 |
|
Net income (loss) before taxes |
|
$ |
18,349 |
|
|
$ |
(1,622 |
) |
|
$ |
24,331 |
|
|
$ |
1,535 |
|
|
$ |
— |
|
|
$ |
42,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,823,049 |
|
|
$ |
7,664 |
|
|
$ |
128,842 |
|
|
$ |
234,731 |
|
|
$ |
(184,928 |
) |
|
$ |
2,009,358 |
|
(1) Noninterest expense includes
$17.9 million and $20.9 million in data processing expense in
OpenSky’s® segment for the nine months ended September 30, 2023 and
2022, respectively.(2) The Corporate segment
invests idle cash in revenue-producing assets including
interest-bearing cash accounts, loan participations and other
appropriate investments for the Company.
|
HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited |
|
|
Quarter Ended |
(in thousands except per share
data) |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31,2023 |
|
December 31,2022 |
|
September 30,2022 |
Earnings: |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
9,788 |
|
|
$ |
7,318 |
|
|
$ |
9,735 |
|
|
$ |
8,991 |
|
|
$ |
11,095 |
|
Earnings per common share,
diluted |
|
|
0.70 |
|
|
|
0.52 |
|
|
|
0.68 |
|
|
|
0.62 |
|
|
|
0.77 |
|
Net interest margin |
|
|
6.71 |
% |
|
|
6.63 |
% |
|
|
6.65 |
% |
|
|
6.64 |
% |
|
|
7.24 |
% |
Net interest margin, excluding
credit cards & SBA-PPP loans(1) |
|
|
4.05 |
% |
|
|
4.06 |
% |
|
|
3.81 |
% |
|
|
3.91 |
% |
|
|
4.16 |
% |
Return on average
assets(2) |
|
|
1.75 |
% |
|
|
1.34 |
% |
|
|
1.84 |
% |
|
|
1.67 |
% |
|
|
2.15 |
% |
Return on average assets,
excluding impact of SBA-PPP loans(1)(2) |
|
|
1.75 |
% |
|
|
1.34 |
% |
|
|
1.84 |
% |
|
|
1.67 |
% |
|
|
2.10 |
% |
Return on average
equity(2) |
|
|
16.00 |
% |
|
|
12.30 |
% |
|
|
16.98 |
% |
|
|
16.18 |
% |
|
|
20.32 |
% |
Efficiency ratio |
|
|
65.02 |
% |
|
|
70.41 |
% |
|
|
64.73 |
% |
|
|
65.59 |
% |
|
|
64.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheet: |
|
|
|
|
|
|
|
|
|
|
Total portfolio loans
receivable, net deferred fees |
|
$ |
1,861,929 |
|
|
$ |
1,837,041 |
|
|
$ |
1,786,109 |
|
|
$ |
1,728,592 |
|
|
$ |
1,648,001 |
|
Total deposits |
|
|
1,967,988 |
|
|
|
1,934,361 |
|
|
|
1,944,374 |
|
|
|
1,758,072 |
|
|
|
1,737,591 |
|
Total assets |
|
|
2,272,484 |
|
|
|
2,227,866 |
|
|
|
2,245,286 |
|
|
|
2,123,655 |
|
|
|
2,009,358 |
|
Total stockholders'
equity |
|
|
242,878 |
|
|
|
237,435 |
|
|
|
234,517 |
|
|
|
224,015 |
|
|
|
214,005 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets |
|
|
0.67 |
% |
|
|
0.71 |
% |
|
|
0.73 |
% |
|
|
0.46 |
% |
|
|
0.43 |
% |
Nonperforming assets to total
assets, excluding the SBA-PPP loans(1) |
|
|
0.67 |
% |
|
|
0.71 |
% |
|
|
0.73 |
% |
|
|
0.46 |
% |
|
|
0.43 |
% |
Nonperforming loans to total
loans |
|
|
0.82 |
% |
|
|
0.85 |
% |
|
|
0.91 |
% |
|
|
0.56 |
% |
|
|
0.52 |
% |
Nonperforming loans to
portfolio loans(1) |
|
|
0.82 |
% |
|
|
0.86 |
% |
|
|
0.91 |
% |
|
|
0.56 |
% |
|
|
0.52 |
% |
Net charge-offs to average
portfolio loans(1)(2) |
|
|
0.38 |
% |
|
|
0.35 |
% |
|
|
0.61 |
% |
|
|
0.49 |
% |
|
|
0.39 |
% |
Allowance for credit losses to
total loans |
|
|
1.52 |
% |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.52 |
% |
|
|
1.58 |
% |
Allowance for credit losses to
portfolio loans(1) |
|
|
1.52 |
% |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
|
|
1.58 |
% |
Allowance for credit losses to
non-performing loans |
|
|
185.61 |
% |
|
|
175.03 |
% |
|
|
160.91 |
% |
|
|
270.46 |
% |
|
|
303.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
Bank Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
Total risk based capital
ratio |
|
|
14.51 |
% |
|
|
14.08 |
% |
|
|
14.09 |
% |
|
|
14.21 |
% |
|
|
14.65 |
% |
Tier 1 risk based capital
ratio |
|
|
13.25 |
% |
|
|
12.82 |
% |
|
|
12.84 |
% |
|
|
12.95 |
% |
|
|
13.39 |
% |
Leverage ratio |
|
|
10.04 |
% |
|
|
9.77 |
% |
|
|
9.78 |
% |
|
|
9.47 |
% |
|
|
9.60 |
% |
Common equity Tier 1 capital
ratio |
|
|
13.25 |
% |
|
|
12.82 |
% |
|
|
12.84 |
% |
|
|
12.95 |
% |
|
|
13.39 |
% |
Tangible common equity |
|
|
9.08 |
% |
|
|
8.93 |
% |
|
|
8.79 |
% |
|
|
8.85 |
% |
|
|
9.00 |
% |
Holding Company
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
Total risk based capital
ratio |
|
|
17.61 |
% |
|
|
16.81 |
% |
|
|
16.75 |
% |
|
|
16.33 |
% |
|
|
17.41 |
% |
Tier 1 risk based capital
ratio |
|
|
15.71 |
% |
|
|
14.96 |
% |
|
|
14.90 |
% |
|
|
15.13 |
% |
|
|
15.49 |
% |
Leverage ratio |
|
|
11.62 |
% |
|
|
11.50 |
% |
|
|
11.47 |
% |
|
|
11.24 |
% |
|
|
11.31 |
% |
Common equity Tier 1 capital
ratio |
|
|
15.71 |
% |
|
|
14.96 |
% |
|
|
14.90 |
% |
|
|
15.00 |
% |
|
|
15.36 |
% |
Tangible common equity |
|
|
10.69 |
% |
|
|
10.66 |
% |
|
|
10.44 |
% |
|
|
10.55 |
% |
|
|
10.65 |
% |
Composition of
Loans: |
|
|
|
|
|
|
|
|
|
|
SBA-PPP loans, net |
|
$ |
750 |
|
|
$ |
1,090 |
|
|
$ |
2,037 |
|
|
$ |
2,163 |
|
|
$ |
2,662 |
|
Commercial real estate |
|
$ |
670,594 |
|
|
$ |
674,141 |
|
|
$ |
660,218 |
|
|
$ |
664,551 |
|
|
$ |
626,030 |
|
Residential real estate |
|
|
558,147 |
|
|
|
555,133 |
|
|
|
545,899 |
|
|
|
484,735 |
|
|
|
466,849 |
|
Construction real estate |
|
|
280,905 |
|
|
|
258,400 |
|
|
|
251,494 |
|
|
|
238,099 |
|
|
|
235,045 |
|
Commercial and industrial |
|
|
236,782 |
|
|
|
233,598 |
|
|
|
221,258 |
|
|
|
220,221 |
|
|
|
192,207 |
|
Credit card, net of
reserve(3) |
|
|
122,533 |
|
|
|
122,925 |
|
|
|
112,860 |
|
|
|
128,434 |
|
|
|
136,658 |
|
Other consumer loans |
|
|
948 |
|
|
|
1,187 |
|
|
|
1,578 |
|
|
|
1,179 |
|
|
|
1,055 |
|
Portfolio loans receivable |
|
$ |
1,869,909 |
|
|
$ |
1,845,384 |
|
|
$ |
1,793,307 |
|
|
$ |
1,737,219 |
|
|
$ |
1,657,844 |
|
Deferred origination fees,
net |
|
|
(7,980 |
) |
|
|
(8,343 |
) |
|
|
(7,198 |
) |
|
|
(8,627 |
) |
|
|
(9,843 |
) |
Portfolio loans receivable, net |
|
$ |
1,861,929 |
|
|
$ |
1,837,041 |
|
|
$ |
1,786,109 |
|
|
$ |
1,728,592 |
|
|
$ |
1,648,001 |
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
680,803 |
|
|
$ |
693,129 |
|
|
$ |
705,801 |
|
|
$ |
674,313 |
|
|
$ |
806,033 |
|
Interest-bearing demand |
|
|
229,035 |
|
|
|
243,095 |
|
|
|
219,685 |
|
|
|
207,836 |
|
|
|
252,135 |
|
Savings |
|
|
5,686 |
|
|
|
5,816 |
|
|
|
5,835 |
|
|
|
7,530 |
|
|
|
8,861 |
|
Money markets |
|
|
668,774 |
|
|
|
631,148 |
|
|
|
632,087 |
|
|
|
574,978 |
|
|
|
518,184 |
|
Brokered time deposits |
|
|
128,665 |
|
|
|
128,665 |
|
|
|
181,820 |
|
|
|
131,819 |
|
|
|
— |
|
Other time deposits |
|
|
255,025 |
|
|
|
232,508 |
|
|
|
199,146 |
|
|
|
161,596 |
|
|
|
152,378 |
|
Total deposits |
|
$ |
1,967,988 |
|
|
$ |
1,934,361 |
|
|
$ |
1,944,374 |
|
|
$ |
1,758,072 |
|
|
$ |
1,737,591 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Bank Home Loan Metrics: |
|
|
|
|
Origination of loans held for
sale |
|
$ |
50,023 |
|
|
$ |
61,480 |
|
|
$ |
44,448 |
|
|
$ |
43,956 |
|
|
$ |
60,516 |
|
Mortgage loans sold |
|
|
39,364 |
|
|
|
49,231 |
|
|
|
40,483 |
|
|
|
43,415 |
|
|
|
65,349 |
|
Gain on sale of loans |
|
|
1,011 |
|
|
|
1,262 |
|
|
|
1,223 |
|
|
|
912 |
|
|
|
1,340 |
|
Purchase volume as a % of
originations |
|
|
92.29 |
% |
|
|
93.12 |
% |
|
|
90.72 |
% |
|
|
88.94 |
% |
|
|
81.85 |
% |
Gain on sale as a % of loans
sold(4) |
|
|
2.57 |
% |
|
|
2.56 |
% |
|
|
3.02 |
% |
|
|
2.10 |
% |
|
|
2.05 |
% |
Mortgage commissions |
|
$ |
528 |
|
|
$ |
621 |
|
|
$ |
378 |
|
|
$ |
451 |
|
|
$ |
587 |
|
|
|
|
|
|
|
|
|
|
|
|
OpenSky®Portfolio
Metrics: |
|
|
|
|
Open customer accounts |
|
|
529,205 |
|
|
|
540,058 |
|
|
|
527,231 |
|
|
|
533,855 |
|
|
|
576,844 |
|
Secured credit card loans,
gross |
|
$ |
98,138 |
|
|
$ |
100,218 |
|
|
$ |
89,078 |
|
|
$ |
104,157 |
|
|
$ |
111,842 |
|
Unsecured credit card loans,
gross |
|
|
27,430 |
|
|
|
25,254 |
|
|
|
25,782 |
|
|
|
26,795 |
|
|
|
27,335 |
|
Noninterest secured credit
card deposits |
|
|
181,185 |
|
|
|
186,566 |
|
|
|
184,809 |
|
|
|
187,412 |
|
|
|
201,277 |
|
_______________
(1) Refer to Appendix for reconciliation of
non-GAAP
measures.(2) Annualized.(3) Credit
card loans are presented net of reserve for interest and
fees.(4) Gain on sale percentage is calculated as
gain on sale of loans divided by mortgage loans sold.
Appendix
Reconciliation of Non-GAAP
Measures
The Company has presented the following non-GAAP
(U.S. Generally Accepted Accounting Principles) financial measures
because it believes that these measures provide useful and
comparative information to assess trends in the Company’s results
of operations and financial condition. Presentation of these
non-GAAP financial measures is consistent with how the Company
evaluates its performance internally and these non-GAAP financial
measures are frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in the
Company’s industry. Investors should recognize that the Company’s
presentation of these non-GAAP financial measures might not be
comparable to similarly-titled measures of other companies. These
non-GAAP financial measures should not be considered a substitute
for GAAP basis measures and the Company strongly encourages a
review of its condensed consolidated financial statements in their
entirety.
|
|
Return on Average
Assets, as Adjusted |
Quarters Ended |
(in thousands) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
9,788 |
|
|
$ |
7,318 |
|
|
$ |
9,735 |
|
|
$ |
8,991 |
|
|
$ |
11,095 |
|
Less: SBA-PPP loan income |
|
11 |
|
|
|
7 |
|
|
|
8 |
|
|
|
28 |
|
|
|
263 |
|
Net Income, as
Adjusted |
$ |
9,777 |
|
|
$ |
7,311 |
|
|
$ |
9,727 |
|
|
$ |
8,963 |
|
|
$ |
10,832 |
|
Average Total Assets |
|
2,221,117 |
|
|
|
2,184,351 |
|
|
|
2,144,249 |
|
|
|
2,136,156 |
|
|
|
2,049,078 |
|
Less: Average SBA-PPP Loans |
|
906 |
|
|
|
1,808 |
|
|
|
2,099 |
|
|
|
2,435 |
|
|
|
5,906 |
|
Average Total Assets,
as Adjusted |
$ |
2,220,211 |
|
|
$ |
2,182,543 |
|
|
$ |
2,142,150 |
|
|
$ |
2,133,721 |
|
|
$ |
2,043,172 |
|
Return on Average
Assets, as Adjusted |
|
1.75 |
% |
|
|
1.34 |
% |
|
|
1.84 |
% |
|
|
1.67 |
% |
|
|
2.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Assets, as Adjusted |
Nine Months Ended |
(in thousands) |
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
Net Income |
$ |
26,841 |
|
|
$ |
32,814 |
|
Less: SBA-PPP loan income |
|
26 |
|
|
|
3,449 |
|
Net Income, as
Adjusted |
$ |
26,815 |
|
|
$ |
29,365 |
|
Average Total Assets |
|
2,183,521 |
|
|
|
2,058,136 |
|
Less: Average SBA-PPP Loans |
|
1,600 |
|
|
|
39,063 |
|
Average Total Assets,
as Adjusted |
$ |
2,181,921 |
|
|
$ |
2,019,073 |
|
Return on Average
Assets, as Adjusted |
|
1.64 |
% |
|
|
1.94 |
% |
|
|
|
|
|
|
|
|
Net Interest Margin,
as Adjusted |
Quarters Ended |
(in thousands) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
$ |
36,810 |
|
|
$ |
35,340 |
|
|
$ |
34,487 |
|
|
$ |
35,199 |
|
|
$ |
36,677 |
|
Less Credit card loan income |
|
15,792 |
|
|
|
14,818 |
|
|
|
15,809 |
|
|
|
15,717 |
|
|
|
16,768 |
|
Less SBA-PPP loan income |
|
11 |
|
|
|
7 |
|
|
|
8 |
|
|
|
28 |
|
|
|
263 |
|
Net Interest Income,
as Adjusted |
$ |
21,007 |
|
|
$ |
20,515 |
|
|
$ |
18,670 |
|
|
$ |
19,454 |
|
|
$ |
19,646 |
|
Average Interest Earning
Assets |
|
2,176,477 |
|
|
|
2,136,936 |
|
|
|
2,103,984 |
|
|
|
2,101,617 |
|
|
|
2,010,070 |
|
Less Average credit card loans |
|
116,814 |
|
|
|
110,574 |
|
|
|
115,850 |
|
|
|
124,120 |
|
|
|
132,246 |
|
Less Average SBA-PPP loans |
|
906 |
|
|
|
1,808 |
|
|
|
2,099 |
|
|
|
2,435 |
|
|
|
5,906 |
|
Total Average Interest
Earning Assets, as Adjusted |
$ |
2,058,757 |
|
|
$ |
2,024,554 |
|
|
$ |
1,986,035 |
|
|
$ |
1,975,062 |
|
|
$ |
1,871,918 |
|
Net Interest Margin,
as Adjusted |
|
4.05 |
% |
|
|
4.06 |
% |
|
|
3.81 |
% |
|
|
3.91 |
% |
|
|
4.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin,
as Adjusted |
Nine Months Ended |
(in thousands) |
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
Net Interest Income |
$ |
106,637 |
|
|
$ |
105,408 |
|
Less Credit card loan income |
|
46,419 |
|
|
|
47,631 |
|
Less SBA-PPP loan income |
|
26 |
|
|
|
3,449 |
|
Net Interest Income,
as Adjusted |
$ |
60,192 |
|
|
$ |
54,328 |
|
Average Interest Earning
Assets |
|
2,139,398 |
|
|
|
2,010,200 |
|
Less Average credit card loans |
|
114,416 |
|
|
|
127,266 |
|
Less Average SBA-PPP loans |
|
1,600 |
|
|
|
39,063 |
|
Total Average Interest
Earning Assets, as Adjusted |
$ |
2,023,382 |
|
|
$ |
1,843,871 |
|
Net Interest Margin,
as Adjusted |
|
3.98 |
% |
|
|
3.94 |
% |
|
|
|
|
|
|
|
|
Pre-tax, Pre-Provision
Net Revenue ("PPNR") |
Quarters Ended |
(in thousands) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
9,788 |
|
|
$ |
7,318 |
|
|
$ |
9,735 |
|
|
$ |
8,991 |
|
|
$ |
11,095 |
|
Add: Income Tax Expense |
|
2,998 |
|
|
|
2,255 |
|
|
|
2,915 |
|
|
|
2,651 |
|
|
|
3,336 |
|
Add: Provision for Credit Losses |
|
2,280 |
|
|
|
2,862 |
|
|
|
1,660 |
|
|
|
2,384 |
|
|
|
1,260 |
|
Add: Provision (release of provision) for Credit Losses on Unfunded
Commitments |
|
24 |
|
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
|
— |
|
Pre-tax, Pre-Provision
Net Revenue ("PPNR") |
$ |
15,090 |
|
|
$ |
12,435 |
|
|
$ |
14,291 |
|
|
$ |
14,026 |
|
|
$ |
15,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, Pre-Provision
Net Revenue ("PPNR") |
Nine Months Ended |
(in thousands) |
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
Net income |
$ |
26,841 |
|
|
$ |
32,814 |
|
Add: Income Tax Expense |
|
8,168 |
|
|
|
9,779 |
|
Add: Provision for Credit Losses |
|
6,802 |
|
|
|
4,247 |
|
Add: Provision for Credit Losses on Unfunded Commitments |
|
5 |
|
|
|
— |
|
Pre-tax, Pre-Provision
Net Revenue ("PPNR") |
$ |
41,816 |
|
|
$ |
46,840 |
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses to Total Portfolio Loans |
Quarters Ended |
(in thousands) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses |
$ |
28,279 |
|
|
$ |
27,495 |
|
|
$ |
26,216 |
|
|
$ |
26,385 |
|
|
$ |
26,091 |
|
Total Loans |
|
1,862,679 |
|
|
|
1,838,131 |
|
|
|
1,788,146 |
|
|
|
1,730,755 |
|
|
|
1,650,663 |
|
Less: SBA-PPP loans |
|
750 |
|
|
|
1,090 |
|
|
|
2,037 |
|
|
|
2,163 |
|
|
|
2,662 |
|
Total Portfolio
Loans |
$ |
1,861,929 |
|
|
$ |
1,837,041 |
|
|
$ |
1,786,109 |
|
|
$ |
1,728,592 |
|
|
$ |
1,648,001 |
|
Allowance for Credit
Losses to Total Portfolio Loans |
|
1.52 |
% |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
|
|
1.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets
to Total Assets, net SBA-PPP Loans |
Quarters Ended |
(in thousands) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Total Nonperforming Assets |
$ |
15,236 |
|
|
$ |
15,709 |
|
|
$ |
16,293 |
|
|
$ |
9,756 |
|
|
$ |
8,589 |
|
Total Assets |
|
2,272,484 |
|
|
|
2,227,866 |
|
|
|
2,245,286 |
|
|
|
2,123,655 |
|
|
|
2,009,358 |
|
Less: SBA-PPP loans |
|
750 |
|
|
|
1,090 |
|
|
|
2,037 |
|
|
|
2,163 |
|
|
|
2,662 |
|
Total Assets, net
SBA-PPP Loans |
$ |
2,271,734 |
|
|
$ |
2,226,776 |
|
|
$ |
2,243,249 |
|
|
$ |
2,121,492 |
|
|
$ |
2,006,696 |
|
Nonperforming Assets
to Total Assets, net SBA-PPP Loans |
|
0.67 |
% |
|
|
0.71 |
% |
|
|
0.73 |
% |
|
|
0.46 |
% |
|
|
0.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans to
Total Portfolio Loans |
Quarters Ended |
(in thousands) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Total Nonperforming Loans |
$ |
15,236 |
|
|
$ |
15,709 |
|
|
$ |
16,293 |
|
|
$ |
9,756 |
|
|
$ |
8,589 |
|
Total Loans |
|
1,862,679 |
|
|
|
1,838,131 |
|
|
|
1,788,146 |
|
|
|
1,730,755 |
|
|
|
1,650,663 |
|
Less: SBA-PPP loans |
|
750 |
|
|
|
1,090 |
|
|
|
2,037 |
|
|
|
2,163 |
|
|
|
2,662 |
|
Total Portfolio Loans |
$ |
1,861,929 |
|
|
$ |
1,837,041 |
|
|
$ |
1,786,109 |
|
|
$ |
1,728,592 |
|
|
$ |
1,648,001 |
|
Nonperforming Loans to
Total Portfolio Loans |
|
0.82 |
% |
|
|
0.86 |
% |
|
|
0.91 |
% |
|
|
0.56 |
% |
|
|
0.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-offs to
Average Portfolio Loans |
Quarters Ended |
(in thousands) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Total Net Charge-offs |
$ |
1,780 |
|
|
$ |
1,583 |
|
|
$ |
2,633 |
|
|
$ |
2,090 |
|
|
$ |
1,588 |
|
Total Average Loans |
|
1,847,772 |
|
|
|
1,802,608 |
|
|
|
1,752,638 |
|
|
|
1,677,869 |
|
|
|
1,607,452 |
|
Less: Average SBA-PPP loans |
|
906 |
|
|
|
1,808 |
|
|
|
2,099 |
|
|
|
2,435 |
|
|
|
5,906 |
|
Total Average
Portfolio Loans |
$ |
1,846,866 |
|
|
$ |
1,800,800 |
|
|
$ |
1,750,539 |
|
|
$ |
1,675,434 |
|
|
$ |
1,601,546 |
|
Net Charge-offs to
Average Portfolio Loans |
|
0.38 |
% |
|
|
0.35 |
% |
|
|
0.61 |
% |
|
|
0.49 |
% |
|
|
0.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-offs to
Average Portfolio Loans |
Nine Months Ended |
(in thousands) |
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
Total Net Charge-offs |
$ |
5,996 |
|
|
$ |
1,749 |
|
Total Average Loans |
|
1,801,355 |
|
|
|
1,586,449 |
|
Less: Average SBA-PPP loans |
|
1,600 |
|
|
|
39,063 |
|
Total Average
Portfolio Loans |
$ |
1,799,755 |
|
|
$ |
1,547,386 |
|
Net Charge-offs to
Average Portfolio Loans |
|
0.45 |
% |
|
|
0.23 |
% |
|
|
|
|
|
|
|
|
Tangible Book Value per
Share |
Quarters Ended |
(in thousands, except per
share amounts) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Total Stockholders' Equity |
$ |
242,878 |
|
|
$ |
237,435 |
|
|
$ |
234,517 |
|
|
$ |
224,015 |
|
|
$ |
214,005 |
|
Less: Preferred equity |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tangible Common
Equity |
$ |
242,878 |
|
|
$ |
237,435 |
|
|
$ |
234,517 |
|
|
$ |
224,015 |
|
|
$ |
214,005 |
|
Period End Shares
Outstanding |
|
13,896,062 |
|
|
|
13,981,414 |
|
|
|
14,082,657 |
|
|
|
14,138,829 |
|
|
|
14,038,599 |
|
Tangible Book Value
per Share |
$ |
17.48 |
|
|
$ |
16.98 |
|
|
$ |
16.65 |
|
|
$ |
15.84 |
|
|
$ |
15.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABOUT CAPITAL BANCORP, INC.
Capital Bancorp, Inc., Rockville, Maryland is a
registered bank holding company incorporated under the laws of
Maryland. The Company’s wholly-owned subsidiary, Capital Bank,
N.A., is the fourth largest bank headquartered in Maryland at
September 30, 2023. Capital Bancorp has been providing
financial services since 1999 and now operates bank branches in
four locations in the greater Washington, D.C. and Baltimore,
Maryland markets. Capital Bancorp had assets of approximately $2.3
billion at September 30, 2023 and its common stock is traded
in the NASDAQ Global Market under the symbol “CBNK.” More
information can be found at the Company's website
www.CapitalBankMD.com under its investor relations page.
FORWARD-LOOKING STATEMENTS
This earnings release contains forward-looking
statements. These forward-looking statements reflect our current
views with respect to, among other things, future events and our
financial performance. Any statements about our management’s
expectations, beliefs, plans, predictions, forecasts, objectives,
assumptions or future events or performance are not historical
facts and may be forward-looking. These statements are often, but
not always, made through the use of words or phrases such as
“anticipate,” “believes,” “can,” “could,” “may,” “predicts,”
“potential,” “should,” “will,” “estimate,” “plans,” “projects,”
“continuing,” “ongoing,” “expects,” "optimistic," “intends” and
similar words or phrases. Any or all of the forward-looking
statements in this earnings release may turn out to be inaccurate.
The inclusion of forward-looking information in this earnings
release should not be regarded as a representation by us or any
other person that the future plans, estimates or expectations
contemplated by us will be achieved. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our financial condition, results of operations,
business strategy and financial needs. Our actual results could
differ materially from those anticipated in such forward-looking
statements. Accordingly, we caution you that any such
forward-looking statements are not a guarantee of future
performance and that actual results may prove to be materially
different from the results expressed or implied by the
forward-looking statements due to a number of factors. For details
on some of the factors that could affect these expectations, see
risk factors and other cautionary language included in the
Company's Annual Report on Form 10-K and other periodic and current
reports filed with the Securities and Exchange Commission.
While there is no assurance that any list of
risks and uncertainties or risk factors is complete, below are
certain factors which could cause actual results to differ
materially from those contained or implied in the forward-looking
statements: changes in general economic, political, or industry
conditions; geopolitical concerns, including the ongoing wars in
Ukraine and in the Middle East; uncertainty in U.S. fiscal and
monetary policy, including the interest rate policies of the Board
of Governors of the Federal Reserve System; inflation/deflation,
interest rate, market, and monetary fluctuations; volatility and
disruptions in global capital and credit markets; any failure to
adequately manage the transition from USD LIBOR as a reference
rate; competitive pressures on product pricing and services;
success, impact, and timing of our business strategies, including
market acceptance of any new products or services; the impact of
changes in financial services policies, laws, and regulations,
including those concerning taxes, banking, securities, and
insurance, and the application thereof by regulatory bodies;
cybersecurity threats and the cost of defending against them,
including the costs of compliance with potential legislation to
combat cybersecurity at a state, national, or global level; climate
change, including any enhanced regulatory, compliance, credit and
reputational risks and costs; and other factors that may affect our
future results.
These forward-looking statements are made as of
the date of this communication, and the Company does not intend,
and assumes no obligation, to update any forward-looking statement
to reflect events or circumstances after the date on which the
statement is made or to reflect the occurrence of unanticipated
events or circumstances, except as required by law.
FINANCIAL CONTACT: Jay Walker (301) 468-8848 x1223
MEDIA CONTACT: Ed Barry (240) 283-1912
WEB SITE: www.CapitalBankMD.com
Grafico Azioni Capital Bancorp (NASDAQ:CBNK)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Capital Bancorp (NASDAQ:CBNK)
Storico
Da Set 2023 a Set 2024