Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding
company for Capital Bank, N.A. (the "Bank"), today reported net
income of $9.0 million, or $0.65 per diluted share, for the
fourth quarter 2023, compared to net income of $9.8 million,
or $0.70 per diluted share, for the third quarter 2023 and
$9.0 million, or $0.62 per diluted share, for the fourth
quarter 2022.
The Company also declared a cash dividend on its
common stock of $0.08 per share. The dividend is payable on
February 21, 2024 to shareholders of record on February 5,
2024.
“Over the past two years, our strategy, which
emphasizes both growth and profitability, has led to a 29% increase
in book value," said Ed Barry, Chief Executive Officer of the
Company and the Bank. “Despite persistent market volatility, we
continue to identify opportunities to generate attractive loans and
core deposits and expand our talented team. We are investing in our
people and technology to build on our momentum, diversify our
business, and achieve profitable expansion.”
“While acknowledging that net income
year-over-year did not advance, there are many performance
indicators that are cause for optimism about the Bank’s future,”
said Steven J. Schwartz, Chairman of the Company. "Substantial
stability of core net interest margin and core deposits
year-over-year positions the Bank for continued outperformance of
peers, as does our ongoing commitment to maintain a strong credit
culture and eschew the assumption of undue interest rate risk.
Moreover, our investment in best-in-class C-suite executives should
give us competitive advantages as we seek to meaningfully grow both
sides of our balance sheet. Also encouraging is the promise that
our ongoing investments in technology applications will enable
improvements to our already strong customer-facing and back office
functions.”
(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.
Fourth Quarter 2023
Highlights
Capital Bancorp, Inc.
Earnings Summary - Net income
of $9.0 million, or $0.65 per diluted share, decreased
$0.8 million compared to $9.8 million, or $0.70 per
diluted share, for the third quarter 2023.
- Net interest income of $34.9 million decreased
$1.9 million compared to $36.8 million for the third
quarter 2023. Interest income of $47.0 million decreased
$0.8 million compared to $47.7 million for the third
quarter 2023 as interest income from credit card loans decreased
$1.1 million. Interest expense of $12.1 million increased $1.2
million compared to $10.9 million for the third quarter 2023
reflecting the rising cost of interest-bearing deposits.
- The provision for credit losses was $2.8 million, an
increase of $0.5 million from the third quarter 2023. The
provision for credit losses includes net charge-offs of $2.5
million in the fourth quarter 2023 including $1.9 million from
credit card related loans and $0.6 million from commercial loans.
Commercial loan net charge-offs include a charge-off of $0.7
million in the fourth quarter 2023 of which $0.4 million was
specifically reserved in the third quarter 2023 on a single
multi-unit residential real estate loan secured by four properties
with a balance of $7.6 million at December 31, 2023. This loan was
classified as nonperforming in the first quarter of 2023. As of
January 22, 2024, sales of three of the properties totaling $7.1
million are currently pending. The third quarter 2023 provision for
credit losses included net charge-offs of $1.8 million primarily
related to credit card loans.
- Noninterest income of $5.9 million decreased
$0.4 million compared to $6.3 million for the third
quarter 2023. Credit card fees decreased $0.4 million
primarily due to lower interchange and other fee income.
- Noninterest expense of $26.9 million decreased
$1.1 million compared to $28.0 million for the third
quarter 2023. Within this category, significant variances included
the following:
- Salaries and employee benefits of $11.6 million decreased
$0.8 million primarily due to adjustments to annual incentive
based compensation.
- Professional fees of $1.6 million decreased $0.4 million
related to decreases in third party consulting fees.
- Data processing expense of $6.1 million decreased
$0.3 million primarily from processor rebates.
- Loan processing expense of $0.2 million decreased $0.2
million.
- Other operating expenses of $4.0 million increased
$0.6 million related to operational losses.
- Income tax expense of $2.2 million, or 19.5% of pre-tax
income for the fourth quarter 2023 decreased $0.8 million from
$3.0 million, or 23.4% of pre-tax income for the third quarter
2023, reflecting a decrease in pre-tax income of $1.6 million.
The lower effective tax rate for the fourth quarter 2023 when
compared to the third quarter 2023 is primarily driven by the tax
benefit recognized on the exercise of non-qualified stock options
during the fourth quarter. The stock option exercises also
contributed to the reduction in the total year effective tax
rate.
Performance and Efficiency Ratios
– Annualized return on average assets ("ROAA") and
annualized return on average equity ("ROAE") were 1.63% and 14.44%,
respectively, for the three months ended December 31, 2023,
compared to 1.75% and 16.00%, respectively, for the three months
ended September 30, 2023.
- The efficiency
ratio was 65.91% for the three months ended December 31, 2023,
compared to 65.02% for the three months ended September 30,
2023.
Balance Sheet – Total assets of
$2.2 billion at December 31, 2023 decreased
$47.8 million, or 2.1%, from September 30, 2023.
- Cash and cash equivalents of $54.0 million at December 31, 2023
decreased $92.2 million, or 63.1% from September 30, 2023, as
total deposits decreased $72.0 million and total portfolio loans
increased $40.4 million partially offset by an increase in other
borrowed funds of $15.0 million.
- Net portfolio loans of $1.9 billion increased
$40.7 million, representing 8.7% annualized growth.
- Total deposits of $1.9 billion at December 31, 2023
decreased $72.0 million, or 3.7%, from September 30, 2023,
while total average deposits decreased $33.4 million quarter
over quarter. The reduction in deposits is traditionally seasonal
in nature, with title companies typically experiencing slower
mortgage activity in the fourth quarter and some other commercial
operating businesses typically drawing down demand deposits in the
fourth quarter. Average portfolio loans-to-deposit ratio of 98.8%
for the three months ended December 31, 2023 increased from 96.3%
for the three months ended September 30, 2023.
- The investment securities portfolio continues to be classified
as available for sale and had a fair market value of
$208.3 million, or 9.4% of total assets, at December 31,
2023 up slightly from $206.1 million at September 30, 2023.
The amortized cost of the investment securities portfolio was
$225.7 million, with an effective duration of 3.22 years. U.S.
Treasury securities represented 71.5% of the overall investment
portfolio at December 31, 2023. The accumulated other
comprehensive loss ("AOCI Loss") on the investment securities
portfolio decreased $4.7 million during the quarter to
$13.1 million as of December 31, 2023, which represents
5.1% of total stockholders' equity. The Company does not have a
held to maturity ("HTM") investment securities portfolio.
Net Interest Margin - Net
interest margin decreased to 6.40% for the three months ended
December 31, 2023, compared to 6.71% for the three months ended
September 30, 2023. Adjusted net interest margin (excluding credit
card and SBA-PPP loans), a non-GAAP measure, decreased to 3.92%,
compared to 4.05% for the three months ended September 30,
2023.
- The average yield on interest earning assets decreased 8 basis
points compared to the third quarter 2023. The decrease in average
yield was due to a 13 basis point decline in the yield for
portfolio loans to 9.59% as interest income from credit card loans
of $14.7 million in the fourth quarter 2023 declined $1.1
million from $15.8 million in the third quarter 2023. The
yield on portfolio loans, as adjusted (excluding credit card
loans), a non-GAAP measure, of 6.89% for the fourth quarter 2023
increased 13 basis points from 6.76% for the third quarter 2023.
New portfolio loans (excluding credit card loans) originated in the
fourth quarter 2023 totaled $91.1 million with a weighted average
yield of 8.46% as compared to $98.9 million with a weighted average
yield of 8.37% in the third quarter 2023.
- The average rate on interest-bearing liabilities increased 31
basis points compared to the third quarter 2023. Increases in
average rates include money market accounts increasing 31 basis
points to 4.16% and time deposits increasing 21 basis points to
4.72%, while average balances increased $24.7 million and
$6.3 million, respectively, compared to the third quarter
2023. Further, the average rate on interest-bearing demand accounts
increased 3 basis points to 0.18%, while the average balance
decreased $20.0 million compared to the third quarter 2023.
Deposits - Total deposits at
December 31, 2023 decreased by $72.0 million, or 3.7%,
compared to September 30, 2023.
-
Noninterest-bearing deposits of $617.4 million decreased
$63.4 million, or 9.3%, compared to September 30, 2023.
Interest-bearing deposits of $1.3 billion decreased
$8.6 million, or 0.7%, compared to September 30, 2023
with a reduction in interest-bearing demand accounts of
$29.7 million, money market accounts of $5.6 million and
savings of $0.5 million while other time deposits increased
$13.6 million. Brokered time deposits totaled
$142.4 million at December 31, 2023, an increase of $13.7
million from September 30, 2023.
Cost of Interest-Bearing Liabilities
- The elevated interest rate environment has driven up the
average cost of interest-bearing liabilities to 3.68% for the
quarter ended December 31, 2023, compared to 3.37% for the
third quarter 2023.
- Average noninterest-bearing deposits of $622.9 million
decreased $44.0 million, or 6.6%, compared to September 30,
2023, and represented 33.0% of total average deposits at
December 31, 2023.
- Average borrowed funds of $41.8 million increased
$6.9 million, or 19.7%, compared to September 30, 2023.
Robust Capital Positions - As
of December 31, 2023, the Company reported a common equity
tier 1 capital ratio of 15.43%, compared to 15.27% at September 30,
2023, and an allowance for credit losses to total loans ratio of
1.50%, compared to an allowance for credit losses to total loans
ratio of 1.52% at September 30, 2023. Shares repurchased and
retired during the three months ended December 31, 2023, as part of
the Company's stock repurchase program, totaled 89,427 shares at an
average price of $20.52, for a total cost of $1.8 million
including commissions. Tangible book value per common share grew
4.5% to $18.31 at December 31, 2023 when compared to September
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 December 31, 2023 totaled $576.9
million, including available collateralized lines of credit of
$463.7 million, unsecured lines of credit with other banks of $76.0
million and unpledged investment securities available as collateral
for potential additional borrowings of $37.2 million.
Commercial Bank
Continued Portfolio Loan Growth
- Portfolio loans, excluding credit cards, increased by
$39.6 million, to $1.8 billion, gross, at December 31,
2023 compared to September 30, 2023.
Net Interest Income - Interest
income of $31.0 million increased $0.5 million compared to
$30.4 million for the third quarter 2023, driven primarily by
loan growth. Interest expense of $11.9 million increased $1.1
million, driven by an increase in the average cost of
interest-bearing liabilities in the fourth quarter 2023.
Credit Metrics - Nonperforming
assets ("NPAs") increased 5 basis points to 0.72% of total assets
at December 31, 2023 compared to 0.67% at September 30, 2023
as a result of an increase in nonaccrual loans at December 31,
2023 to $16.0 million compared to $15.2 million at
September 30, 2023. Included in nonperforming assets is a single
$7.6 million, multi-unit residential real estate loan as previously
mentioned. At December 31, 2023 commercial real estate loans
with office space exposure totaled $56.3 million, or 3.0% of total
portfolio loans, with a weighted average loan-to-value ("LTV") of
49.5%. Included in the total are owner-occupied commercial real
estate loans with office exposure totaling $42.8 million with a
weighted average LTV of 48.2% and non owner-occupied commercial
real estate loans with office exposure totaling $13.5 million with
a weighted average LTV of 54.2%.
OpenSky®
Revenues - Total revenue of
$19.0 million decreased $1.5 million from the third quarter 2023.
Interest income of $15.0 million decreased $1.1 million from
the third quarter 2023. Average OpenSky® loan balances, net of
reserves and deferred fees of $114.6 million for the fourth
quarter 2023, decreased $2.3 million, or 1.9%, compared to
$116.8 million for the third quarter 2023. Noninterest income
of $4.0 million decreased $0.4 million due to a decline in
credit card fees as compared to the third quarter 2023.
Noninterest Expense - Total
noninterest expense of $10.4 million decreased $0.3 million
from the third quarter 2023. Noninterest expense declined in the
fourth quarter 2023 due primarily to a reduction in data processing
expense of $0.4 million primarily from processor rebates. During
the fourth quarter 2023, the number of OpenSky®
credit card accounts declined by 3,891 to 525,314.
Loan Balances - OpenSky® loan
balances, net of reserves, of $123.3 million at
December 31, 2023 increased by $0.8 million, or 0.7%, compared
to $122.5 million at September 30, 2023. Corresponding deposit
balances of $173.9 million at December 31, 2023 decreased
$7.3 million, or 4.0%, compared to $181.2 million at September
30, 2023. Gross unsecured loan balances of $30.8 million at
December 31, 2023 increased $3.4 million, or 12.4%, compared
to $27.4 million at September 30, 2023.
OpenSky®
Credit - Card delinquencies remained stable in the
fourth quarter 2023 when compared to the third quarter 2023. The
provision for credit losses increased $0.3 million compared to the
third quarter 2023 as card balances, net of reserves, increased
$0.8 million during the fourth quarter 2023 as compared to a
decrease of $0.4 million during the third quarter 2023.
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
4Q23 vs 3Q23 |
|
4Q23 vs 4Q22 |
(in thousands except per share
data) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Earnings
Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
46,969 |
|
|
$ |
47,741 |
|
|
$ |
41,348 |
|
|
$ |
(772 |
) |
|
(1.6 |
)% |
|
$ |
5,621 |
|
|
13.6 |
% |
Interest expense |
|
12,080 |
|
|
|
10,931 |
|
|
|
6,149 |
|
|
|
1,149 |
|
|
10.5 |
% |
|
|
5,931 |
|
|
96.5 |
% |
Net interest income |
|
34,889 |
|
|
|
36,810 |
|
|
|
35,199 |
|
|
|
(1,921 |
) |
|
(5.2 |
)% |
|
|
(310 |
) |
|
(0.9 |
)% |
Provision for credit
losses |
|
2,808 |
|
|
|
2,280 |
|
|
|
2,384 |
|
|
|
528 |
|
|
23.2 |
% |
|
|
424 |
|
|
17.8 |
% |
(Release of) provision for
credit losses on unfunded commitments |
|
(106 |
) |
|
|
24 |
|
|
|
— |
|
|
|
(130 |
) |
|
(541.7 |
)% |
|
|
(106 |
) |
|
— |
% |
Noninterest income |
|
5,936 |
|
|
|
6,326 |
|
|
|
5,561 |
|
|
|
(390 |
) |
|
(6.2 |
)% |
|
|
375 |
|
|
6.7 |
% |
Noninterest expense |
|
26,907 |
|
|
|
28,046 |
|
|
|
26,734 |
|
|
|
(1,139 |
) |
|
(4.1 |
)% |
|
|
173 |
|
|
0.6 |
% |
Income before income taxes |
|
11,216 |
|
|
|
12,786 |
|
|
|
11,642 |
|
|
|
(1,570 |
) |
|
(12.3 |
)% |
|
|
(426 |
) |
|
(3.7 |
)% |
Income tax expense |
|
2,186 |
|
|
|
2,998 |
|
|
|
2,651 |
|
|
|
(812 |
) |
|
(27.1 |
)% |
|
|
(465 |
) |
|
(17.5 |
)% |
Net income |
$ |
9,030 |
|
|
$ |
9,788 |
|
|
$ |
8,991 |
|
|
$ |
(758 |
) |
|
(7.7 |
)% |
|
$ |
39 |
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision net
revenue ("PPNR")(1) |
$ |
13,918 |
|
|
$ |
15,090 |
|
|
$ |
14,026 |
|
|
$ |
(1,172 |
) |
|
(7.8 |
)% |
|
$ |
(108 |
) |
|
(0.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
Basic |
$ |
0.65 |
|
|
$ |
0.70 |
|
|
$ |
0.64 |
|
|
$ |
(0.05 |
) |
|
(7.1 |
)% |
|
$ |
0.01 |
|
|
1.6 |
% |
Earnings per share -
Diluted |
$ |
0.65 |
|
|
$ |
0.70 |
|
|
$ |
0.62 |
|
|
$ |
(0.05 |
) |
|
(7.1 |
)% |
|
$ |
0.03 |
|
|
4.8 |
% |
Weighted average common shares
- Basic |
|
13,897 |
|
|
|
13,933 |
|
|
|
14,071 |
|
|
|
|
|
|
|
|
|
Weighted average common shares
- Diluted |
|
13,989 |
|
|
|
14,024 |
|
|
|
14,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(annualized) |
|
1.63 |
% |
|
|
1.75 |
% |
|
|
1.67 |
% |
|
|
|
|
|
|
|
|
Return on average assets,
excluding impact of SBA-PPP loans (annualized)(1) |
|
1.63 |
% |
|
|
1.75 |
% |
|
|
1.67 |
% |
|
|
|
|
|
|
|
|
Return on average equity
(annualized) |
|
14.44 |
% |
|
|
16.00 |
% |
|
|
16.18 |
% |
|
|
|
|
|
|
|
|
______________
(1) Refer to Appendix for reconciliation of non-GAAP
measures.
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
(Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
December 31, |
|
|
|
|
(in thousands except per share
data) |
|
|
2023 |
|
|
|
2022 |
|
|
$ Change |
|
% Change |
Earnings
Summary |
|
|
|
|
|
|
|
|
Interest income |
|
$ |
183,206 |
|
|
$ |
150,646 |
|
|
$ |
32,560 |
|
|
21.6 |
% |
Interest expense |
|
|
41,680 |
|
|
|
10,039 |
|
|
|
31,641 |
|
|
315.2 |
% |
Net interest income |
|
|
141,526 |
|
|
|
140,607 |
|
|
|
919 |
|
|
0.7 |
% |
Provision for credit
losses |
|
|
9,610 |
|
|
|
6,631 |
|
|
|
2,979 |
|
|
44.9 |
% |
(Release of) provision for
credit losses on unfunded commitments |
|
|
(101 |
) |
|
|
— |
|
|
|
(101 |
) |
|
— |
% |
Noninterest income |
|
|
24,975 |
|
|
|
29,372 |
|
|
|
(4,397 |
) |
|
(15.0 |
)% |
Noninterest expense |
|
|
110,767 |
|
|
|
109,114 |
|
|
|
1,653 |
|
|
1.5 |
% |
Income before income taxes |
|
|
46,225 |
|
|
|
54,234 |
|
|
|
(8,009 |
) |
|
(14.8 |
)% |
Income tax expense |
|
|
10,354 |
|
|
|
12,430 |
|
|
|
(2,076 |
) |
|
(16.7 |
)% |
Net income |
|
$ |
35,871 |
|
|
$ |
41,804 |
|
|
$ |
(5,933 |
) |
|
(14.2 |
)% |
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision net
revenue ("PPNR")(1) |
|
$ |
55,734 |
|
|
$ |
60,865 |
|
|
$ |
(5,131 |
) |
|
(8.4 |
)% |
|
|
|
|
|
|
|
|
|
Common Share
Data |
|
|
|
|
|
|
|
|
Earnings per share -
Basic |
|
$ |
2.56 |
|
|
$ |
2.98 |
|
|
$ |
(0.42 |
) |
|
(14.1 |
)% |
Earnings per share -
Diluted |
|
$ |
2.55 |
|
|
$ |
2.91 |
|
|
$ |
(0.36 |
) |
|
(12.4 |
)% |
Weighted average common shares
- Basic |
|
|
14,003 |
|
|
|
14,025 |
|
|
|
|
|
Weighted average common shares
- Diluted |
|
|
14,081 |
|
|
|
14,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
Ratios |
|
|
|
|
|
|
|
|
Return on average assets
(annualized) |
|
|
1.64 |
% |
|
|
2.01 |
% |
|
|
|
|
Return on average assets,
excluding impact of SBA-PPP loans (annualized)(1) |
|
|
1.64 |
% |
|
|
1.87 |
% |
|
|
|
|
Return on average equity
(annualized) |
|
|
14.91 |
% |
|
|
19.68 |
% |
|
|
|
|
______________
(1) Refer to Appendix for reconciliation of non-GAAP
measures.
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
(Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
Quarter Ended |
|
December 31, |
|
|
September 30, |
|
June 30, |
|
March 31, |
(in thousands except per share
data) |
|
2023 |
|
|
2022 |
|
% Change |
|
|
2023 |
|
|
2023 |
|
|
2022 |
Balance Sheet
Highlights |
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
2,224,667 |
|
$ |
2,123,655 |
|
4.8 |
% |
|
$ |
2,272,484 |
|
$ |
2,227,866 |
|
$ |
2,245,286 |
Investment securities
available for sale |
|
208,329 |
|
|
252,481 |
|
(17.5 |
)% |
|
|
206,055 |
|
|
208,464 |
|
|
255,762 |
Mortgage loans held for
sale |
|
7,481 |
|
|
7,416 |
|
0.9 |
% |
|
|
4,843 |
|
|
10,146 |
|
|
9,620 |
SBA-PPP loans, net of
fees |
|
645 |
|
|
2,163 |
|
(70.2 |
)% |
|
|
750 |
|
|
1,090 |
|
|
2,037 |
Portfolio loans
receivable(2) |
|
1,902,643 |
|
|
1,728,592 |
|
10.1 |
% |
|
|
1,861,929 |
|
|
1,837,041 |
|
|
1,786,109 |
Allowance for credit
losses |
|
28,610 |
|
|
26,385 |
|
8.4 |
% |
|
|
28,279 |
|
|
27,495 |
|
|
26,216 |
Deposits |
|
1,895,996 |
|
|
1,758,072 |
|
7.8 |
% |
|
|
1,967,988 |
|
|
1,934,361 |
|
|
1,944,374 |
FHLB borrowings |
|
22,000 |
|
|
107,000 |
|
(79.4 |
)% |
|
|
22,000 |
|
|
22,000 |
|
|
32,000 |
Other borrowed funds |
|
27,062 |
|
|
12,062 |
|
124.4 |
% |
|
|
12,062 |
|
|
12,062 |
|
|
12,062 |
Total stockholders'
equity |
|
254,860 |
|
|
224,015 |
|
13.8 |
% |
|
|
242,878 |
|
|
237,435 |
|
|
234,517 |
Tangible common equity(1) |
|
254,860 |
|
|
224,015 |
|
13.8 |
% |
|
|
242,878 |
|
|
237,435 |
|
|
234,517 |
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
13,923 |
|
|
14,139 |
|
(1.5 |
)% |
|
|
13,893 |
|
|
13,981 |
|
|
14,083 |
Book value per share |
$ |
18.31 |
|
$ |
15.84 |
|
15.6 |
% |
|
$ |
17.48 |
|
$ |
16.98 |
|
$ |
16.65 |
Tangible book value per
share(1) |
$ |
18.31 |
|
$ |
15.84 |
|
15.6 |
% |
|
$ |
17.48 |
|
$ |
16.98 |
|
$ |
16.65 |
Dividends per share |
$ |
0.08 |
|
$ |
0.06 |
|
33.3 |
% |
|
$ |
0.08 |
|
$ |
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
December 31, 2023 and 2022
For the three months ended December 31, 2023,
net interest income of $34.9 million decreased slightly from
$35.2 million in the same period in 2022. The net interest
margin decreased 24 basis points to 6.40% for the three months
ended December 31, 2023 from the same period in 2022 as interest
income on credit card decreased $1.1 million. Net interest margin,
excluding credit card and SBA-PPP loans, increased to 3.92% for the
three months ended December 31, 2023, compared to 3.91% for the
same period in 2022 as yields on interest-bearing deposits and
portfolio loans generally kept pace with the rising costs of
deposits, including money market accounts and time deposits.
For the three months ended December 31, 2023,
average interest earning assets increased $60.8 million, or 2.9%,
to $2.2 billion as compared to the same period in 2022, and
the average yield on interest earning assets increased 81 basis
points. Compared to the same period in the prior year, average
interest-bearing liabilities increased $147.7 million, or 12.8%,
and the average cost of interest-bearing liabilities increased to
3.68%, a 157 basis point increase from 2.11%.
For the three months ended December 31, 2023,
the provision for credit losses was $2.8 million, an increase
of $0.4 million from the same period in 2022. Net charge-offs
for the three months ended December 31, 2023 were
$2.5 million, or 0.53% on an annualized basis of average
portfolio loans, compared to $2.1 million, or 0.49% on an
annualized basis of average loans for the same period in 2022. The
change in provision was partially due to a charge-off of $0.7
million in the fourth quarter 2023 of which $0.4 million was
specifically reserved in the third quarter 2023 on a single
multi-unit residential real estate loan secured by four properties
with a balance of $7.6 million at December 31, 2023. This loan was
classified as nonperforming in the first quarter of 2023. As of
January 22, 2024, sales of three of the properties totaling $7.1
million are currently pending. Of the $2.5 million in net
charge-offs during the quarter, $1.4 million related to
secured and partially secured cards in the credit card portfolio
and $0.4 million related to unsecured cards.
For the three months ended December 31, 2023,
noninterest income of $5.9 million increased
$0.4 million, or 6.7%, from the same period in 2022. Mortgage
banking revenue of $1.2 million increased $0.6 million
due to an increase in home loan sales. Credit card fees of
$4.0 million decreased $0.3 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 $5.1 million to $123.3 million as of
December 31, 2023, from $128.4 million at December 31,
2022. The related deposit account balances decreased 7.2% to
$173.9 million at December 31, 2023 when compared to
$187.4 million at December 31, 2022, reflective of the
reduction in the number of open customer accounts year over
year.
The efficiency ratio for the three months ended
December 31, 2023 was 65.91% compared to 65.59% for the three
months ended December 31, 2022.
For the three months ended December 31, 2023,
noninterest expense of $26.9 million increased slightly from
$26.7 million for the same period in 2022. The change includes
increases in advertising expense of $0.7 million and other
operating expense of $0.6 million, partially offset by
decreases in data processing expense of $0.6 million and
professional fees of $0.5 million.
Operating Results - Comparison of Year
Ended December 31, 2023 and 2022
For the year ended December 31, 2023, net
interest income of $141.5 million increased $0.9 million
from the same period in 2022, primarily due to increased average
balances of $235.9 million in portfolio loans combined with a
71 basis point increase in yield for portfolio loans, offset by
significant increases in the cost of funding. The net interest
margin decreased 32 basis points to 6.60% for the year ended
December 31, 2023 from the same period in 2022. Net interest
margin, excluding credit card and SBA-PPP loans, was 3.96% for the
year ended December 31, 2023, compared to 3.93% for the same period
in 2022.
For the year ended December 31, 2023, average
interest earning assets increased $112.0 million, or 5.5%, to
$2.1 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 $209.1 million, or
19.7%, while the average cost of interest-bearing liabilities
increased 234 basis points to 3.29% from 0.95%.
For the year ended December 31, 2023, the
provision for credit losses was $9.6 million, an increase of
$3.0 million from the prior year, attributable primarily to
the credit card portfolio. Net charge-offs for the year ended
December 31, 2023 were $8.5 million, or 0.47% annualized of average
portfolio loans, compared to $5.4 million, or 0.34% annualized of
average portfolio loans, for the same period in 2022. The $8.5
million in net charge-offs during the year ended December 31, 2023
was comprised primarily of credit card portfolio net charge-offs,
with $5.5 million related to secured and partially secured cards
while $1.4 million was related to unsecured cards.
For the year ended December 31, 2023,
noninterest income of $25.0 million decreased
$4.4 million, or 15.0%, from the same period in 2022. The
decrease was primarily driven by the decline in credit card fees of
$4.7 million as the number of open customer accounts declined
to 525,314 at December 31, 2023 from 533,855 year over year,
which resulted in lower interchange and other fee income recognized
compared to the prior year.
The efficiency ratio for the year ended December
31, 2023 was 66.53% compared to 64.19% for the year ended December
31, 2022.
For the year ended December 31, 2023,
noninterest expense of $110.8 million increased
$1.7 million, or 1.5%, from the same period in 2022. The
increase was primarily driven by a $5.9 million, or 13.7%,
increase in salaries and employee benefits and a $0.8 million,
or 16.6%, increase in occupancy and equipment, partially offset by
a $3.7 million, or 12.7%, decrease in data processing expense and a
$1.7 million, or 15.8%, 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 December 31, 2023 were
$2.2 billion, a decrease of $47.8 million, or 2.1%, from
the balance at September 30, 2023 and an increase of
$101.0 million, or 4.8%, from the balance at December 31,
2022. Net portfolio loans, which exclude mortgage loans held for
sale and SBA-PPP loans, totaled $1.9 billion at December 31,
2023, an increase of $40.7 million, up 2.2% or 8.7%
annualized, compared to September 30, 2023, and an increase of
$174.1 million, or 10.1%, compared to $1.7 billion at
December 31, 2022.
The Company recorded a provision for credit
losses of $9.6 million during the year ended December 31,
2023, which increased the allowance for credit losses to
$28.6 million, or 1.50% of total loans at December 31, 2023,
representing an increase of $0.3 million over the balance at
September 30, 2023. Nonperforming assets, which were comprised
solely of nonperforming loans as of December 31, 2023, were
$16.0 million, or 0.72% of total assets, up from
$15.2 million, or 0.67% of total assets at September 30,
2023, and up from $9.8 million, or 0.46% of total assets at
December 31, 2022. Included in nonperforming assets at December 31,
2023 is a single $7.6 million, multi-unit residential real estate
loan, with respect to which $0.7 million was charged off in the
fourth quarter 2023.
Deposits were $1.9 billion at December 31,
2023, a decrease of $72.0 million, or 3.7%, from the balance
at September 30, 2023 and an increase of $137.9 million,
or 7.8%, from the balance at December 31, 2022. Average deposits of
$1.9 billion for the three months ended December 31, 2023
decreased $33.4 million, or 1.7%, as compared to the three
months ended September 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 $112.5 million to $622.9 million as of December
31, 2023, as compared to December 31, 2022. Noninterest-bearing
deposits represented 32.6% of total deposits at December 31, 2023
compared to 38.4% at December 31, 2022. Uninsured deposits were
approximately $789.4 million as of December 31, 2023,
representing 41.6% of the Company's deposit portfolio, compared to
$857.7 million, or 43.6%, at September 30, 2023, and
$784.6 million, or 44.6%, at December 31, 2022.
Stockholders’ equity increased to
$254.9 million as of December 31, 2023, compared to
$242.9 million at September 30, 2023 and
$224.0 million at December 31, 2022. Shares repurchased and
retired for the year ended December 31, 2023 as part of the
Company's stock repurchase program totaled 475,346 shares at an
average price of $18.12, for a total cost of $8.8 million including
commissions. As of December 31, 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 |
Year Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
45,109 |
|
|
$ |
45,385 |
|
$ |
42,991 |
|
$ |
41,275 |
|
|
$ |
38,763 |
|
$ |
174,760 |
|
|
$ |
144,408 |
|
Investment securities available for sale |
|
1,083 |
|
|
|
1,089 |
|
|
1,266 |
|
|
1,377 |
|
|
|
1,402 |
|
|
4,815 |
|
|
|
3,912 |
|
Federal funds sold and other |
|
777 |
|
|
|
1,267 |
|
|
823 |
|
|
764 |
|
|
|
1,183 |
|
|
3,631 |
|
|
|
2,326 |
|
Total interest income |
|
46,969 |
|
|
|
47,741 |
|
|
45,080 |
|
|
43,416 |
|
|
|
41,348 |
|
|
183,206 |
|
|
|
150,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
11,759 |
|
|
|
10,703 |
|
|
9,409 |
|
|
7,754 |
|
|
|
4,377 |
|
|
39,625 |
|
|
|
7,611 |
|
Borrowed funds |
|
321 |
|
|
|
228 |
|
|
331 |
|
|
1,175 |
|
|
|
1,772 |
|
|
2,055 |
|
|
|
2,428 |
|
Total interest expense |
|
12,080 |
|
|
|
10,931 |
|
|
9,740 |
|
|
8,929 |
|
|
|
6,149 |
|
|
41,680 |
|
|
|
10,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
34,889 |
|
|
|
36,810 |
|
|
35,340 |
|
|
34,487 |
|
|
|
35,199 |
|
|
141,526 |
|
|
|
140,607 |
|
Provision for credit losses |
|
2,808 |
|
|
|
2,280 |
|
|
2,862 |
|
|
1,660 |
|
|
|
2,384 |
|
|
9,610 |
|
|
|
6,631 |
|
(Release of) provision for credit losses on unfunded
commitments |
|
(106 |
) |
|
|
24 |
|
|
— |
|
|
(19 |
) |
|
|
— |
|
|
(101 |
) |
|
|
— |
|
Net interest income
after provision for credit losses |
|
32,187 |
|
|
|
34,506 |
|
|
32,478 |
|
|
32,846 |
|
|
|
32,815 |
|
|
132,017 |
|
|
|
133,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
|
240 |
|
|
|
250 |
|
|
245 |
|
|
229 |
|
|
|
222 |
|
|
964 |
|
|
|
767 |
|
Credit card fees |
|
3,970 |
|
|
|
4,387 |
|
|
4,706 |
|
|
4,210 |
|
|
|
4,314 |
|
|
17,273 |
|
|
|
21,972 |
|
Mortgage banking revenue |
|
1,166 |
|
|
|
1,243 |
|
|
1,332 |
|
|
1,155 |
|
|
|
554 |
|
|
4,896 |
|
|
|
4,866 |
|
Other income |
|
560 |
|
|
|
446 |
|
|
404 |
|
|
432 |
|
|
|
471 |
|
|
1,842 |
|
|
|
1,767 |
|
Total noninterest income |
|
5,936 |
|
|
|
6,326 |
|
|
6,687 |
|
|
6,026 |
|
|
|
5,561 |
|
|
24,975 |
|
|
|
29,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
11,638 |
|
|
|
12,419 |
|
|
12,143 |
|
|
12,554 |
|
|
|
11,769 |
|
|
48,754 |
|
|
|
42,898 |
|
Occupancy and equipment |
|
1,573 |
|
|
|
1,351 |
|
|
1,536 |
|
|
1,213 |
|
|
|
1,388 |
|
|
5,673 |
|
|
|
4,865 |
|
Professional fees |
|
1,930 |
|
|
|
2,358 |
|
|
2,608 |
|
|
2,374 |
|
|
|
2,426 |
|
|
9,270 |
|
|
|
11,012 |
|
Data processing |
|
6,128 |
|
|
|
6,469 |
|
|
6,559 |
|
|
6,530 |
|
|
|
6,697 |
|
|
25,686 |
|
|
|
29,418 |
|
Advertising |
|
1,433 |
|
|
|
1,565 |
|
|
2,646 |
|
|
517 |
|
|
|
726 |
|
|
6,161 |
|
|
|
6,220 |
|
Loan processing |
|
198 |
|
|
|
426 |
|
|
660 |
|
|
349 |
|
|
|
350 |
|
|
1,633 |
|
|
|
1,702 |
|
Foreclosed real estate expenses, net |
|
— |
|
|
|
1 |
|
|
— |
|
|
6 |
|
|
|
— |
|
|
7 |
|
|
|
(183 |
) |
Other operating |
|
4,007 |
|
|
|
3,457 |
|
|
3,440 |
|
|
2,679 |
|
|
|
3,378 |
|
|
13,583 |
|
|
|
13,182 |
|
Total noninterest expenses |
|
26,907 |
|
|
|
28,046 |
|
|
29,592 |
|
|
26,222 |
|
|
|
26,734 |
|
|
110,767 |
|
|
|
109,114 |
|
Income before income
taxes |
|
11,216 |
|
|
|
12,786 |
|
|
9,573 |
|
|
12,650 |
|
|
|
11,642 |
|
|
46,225 |
|
|
|
54,234 |
|
Income tax expense |
|
2,186 |
|
|
|
2,998 |
|
|
2,255 |
|
|
2,915 |
|
|
|
2,651 |
|
|
10,354 |
|
|
|
12,430 |
|
Net
income |
$ |
9,030 |
|
|
$ |
9,788 |
|
$ |
7,318 |
|
$ |
9,735 |
|
|
$ |
8,991 |
|
$ |
35,871 |
|
|
$ |
41,804 |
|
Consolidated Balance
Sheets |
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
(in thousands except share
data) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
14,513 |
|
|
$ |
13,767 |
|
|
$ |
18,619 |
|
|
$ |
14,477 |
|
|
$ |
19,963 |
|
Interest-bearing deposits at
other financial institutions |
|
39,044 |
|
|
|
130,428 |
|
|
|
100,343 |
|
|
|
125,448 |
|
|
|
39,764 |
|
Federal funds sold |
|
407 |
|
|
|
1,957 |
|
|
|
376 |
|
|
|
462 |
|
|
|
20,688 |
|
Total cash and cash equivalents |
|
53,964 |
|
|
|
146,152 |
|
|
|
119,338 |
|
|
|
140,387 |
|
|
|
80,415 |
|
Investment securities
available for sale |
|
208,329 |
|
|
|
206,055 |
|
|
|
208,464 |
|
|
|
255,762 |
|
|
|
252,481 |
|
Restricted investments |
|
4,353 |
|
|
|
4,340 |
|
|
|
3,803 |
|
|
|
4,215 |
|
|
|
7,362 |
|
Loans held for sale |
|
7,481 |
|
|
|
4,843 |
|
|
|
10,146 |
|
|
|
9,620 |
|
|
|
7,416 |
|
U.S. Small Business
Administration (“SBA”) Payroll Protection Program (“PPP”) loans
receivable, net of fees and costs |
|
645 |
|
|
|
750 |
|
|
|
1,090 |
|
|
|
2,037 |
|
|
|
2,163 |
|
Portfolio loans receivable,
net of deferred fees and costs |
|
1,902,643 |
|
|
|
1,861,929 |
|
|
|
1,837,041 |
|
|
|
1,786,109 |
|
|
|
1,728,592 |
|
Less allowance for credit losses |
|
(28,610 |
) |
|
|
(28,279 |
) |
|
|
(27,495 |
) |
|
|
(26,216 |
) |
|
|
(26,385 |
) |
Total portfolio loans held for investment, net |
|
1,874,033 |
|
|
|
1,833,650 |
|
|
|
1,809,546 |
|
|
|
1,759,893 |
|
|
|
1,702,207 |
|
Premises and equipment,
net |
|
5,069 |
|
|
|
5,297 |
|
|
|
5,494 |
|
|
|
5,367 |
|
|
|
3,386 |
|
Accrued interest
receivable |
|
11,494 |
|
|
|
11,231 |
|
|
|
10,155 |
|
|
|
9,985 |
|
|
|
9,489 |
|
Deferred tax asset |
|
12,252 |
|
|
|
13,644 |
|
|
|
13,616 |
|
|
|
12,898 |
|
|
|
13,777 |
|
Bank owned life insurance |
|
37,711 |
|
|
|
37,315 |
|
|
|
37,041 |
|
|
|
36,781 |
|
|
|
36,524 |
|
Other assets |
|
9,336 |
|
|
|
9,207 |
|
|
|
9,173 |
|
|
|
8,341 |
|
|
|
8,435 |
|
Total assets |
$ |
2,224,667 |
|
|
$ |
2,272,484 |
|
|
$ |
2,227,866 |
|
|
$ |
2,245,286 |
|
|
$ |
2,123,655 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
617,373 |
|
|
$ |
680,803 |
|
|
$ |
693,129 |
|
|
$ |
705,801 |
|
|
$ |
674,313 |
|
Interest-bearing |
|
1,278,623 |
|
|
|
1,287,185 |
|
|
|
1,241,232 |
|
|
|
1,238,573 |
|
|
|
1,083,759 |
|
Total deposits |
|
1,895,996 |
|
|
|
1,967,988 |
|
|
|
1,934,361 |
|
|
|
1,944,374 |
|
|
|
1,758,072 |
|
Federal Home Loan Bank
advances |
|
22,000 |
|
|
|
22,000 |
|
|
|
22,000 |
|
|
|
32,000 |
|
|
|
107,000 |
|
Other borrowed funds |
|
27,062 |
|
|
|
12,062 |
|
|
|
12,062 |
|
|
|
12,062 |
|
|
|
12,062 |
|
Accrued interest payable |
|
5,583 |
|
|
|
5,204 |
|
|
|
3,029 |
|
|
|
1,977 |
|
|
|
1,031 |
|
Other liabilities |
|
19,166 |
|
|
|
22,352 |
|
|
|
18,979 |
|
|
|
20,356 |
|
|
|
21,475 |
|
Total liabilities |
|
1,969,807 |
|
|
|
2,029,606 |
|
|
|
1,990,431 |
|
|
|
2,010,769 |
|
|
|
1,899,640 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
|
|
|
Common stock |
|
139 |
|
|
|
139 |
|
|
|
140 |
|
|
|
141 |
|
|
|
141 |
|
Additional paid-in
capital |
|
54,473 |
|
|
|
54,549 |
|
|
|
55,856 |
|
|
|
57,277 |
|
|
|
58,190 |
|
Retained earnings |
|
213,345 |
|
|
|
206,033 |
|
|
|
197,490 |
|
|
|
191,058 |
|
|
|
182,435 |
|
Accumulated other
comprehensive loss |
|
(13,097 |
) |
|
|
(17,843 |
) |
|
|
(16,051 |
) |
|
|
(13,959 |
) |
|
|
(16,751 |
) |
Total stockholders' equity |
|
254,860 |
|
|
|
242,878 |
|
|
|
237,435 |
|
|
|
234,517 |
|
|
|
224,015 |
|
Total liabilities and stockholders' equity |
$ |
2,224,667 |
|
|
$ |
2,272,484 |
|
|
$ |
2,227,866 |
|
|
$ |
2,245,286 |
|
|
$ |
2,123,655 |
|
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 EndedDecember 31,
2023 |
|
Three Months EndedSeptember 30, 2023 |
|
Three Months EndedDecember 31, 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 |
$ |
65,336 |
|
$ |
680 |
|
4.13 |
% |
|
$ |
87,112 |
|
$ |
1,183 |
|
5.39 |
% |
|
$ |
111,404 |
|
$ |
1,006 |
|
3.58 |
% |
Federal funds sold |
|
1,574 |
|
|
21 |
|
5.29 |
|
|
|
1,134 |
|
|
15 |
|
5.25 |
|
|
|
4,054 |
|
|
35 |
|
3.41 |
|
Investment securities available for sale |
|
223,132 |
|
|
1,083 |
|
1.93 |
|
|
|
229,731 |
|
|
1,089 |
|
1.88 |
|
|
|
292,117 |
|
|
1,402 |
|
1.90 |
|
Restricted investments |
|
4,518 |
|
|
76 |
|
6.67 |
|
|
|
4,058 |
|
|
69 |
|
6.75 |
|
|
|
10,111 |
|
|
142 |
|
5.57 |
|
Loans held for sale |
|
4,601 |
|
|
83 |
|
7.16 |
|
|
|
6,670 |
|
|
111 |
|
6.60 |
|
|
|
6,062 |
|
|
88 |
|
5.74 |
|
SBA-PPP loans receivable |
|
699 |
|
|
4 |
|
2.27 |
|
|
|
906 |
|
|
11 |
|
4.82 |
|
|
|
2,435 |
|
|
28 |
|
4.59 |
|
Portfolio loans receivable(2)(3) |
|
1,862,599 |
|
|
45,022 |
|
9.59 |
|
|
|
1,846,866 |
|
|
45,263 |
|
9.72 |
|
|
|
1,675,434 |
|
|
38,647 |
|
9.15 |
|
Total interest earning assets |
|
2,162,459 |
|
|
46,969 |
|
8.62 |
|
|
|
2,176,477 |
|
|
47,741 |
|
8.70 |
|
|
|
2,101,617 |
|
|
41,348 |
|
7.81 |
|
Noninterest earning
assets |
|
40,020 |
|
|
|
|
|
|
44,640 |
|
|
|
|
|
|
34,539 |
|
|
|
|
Total assets |
$ |
2,202,479 |
|
|
|
|
|
$ |
2,221,117 |
|
|
|
|
|
$ |
2,136,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand accounts |
$ |
195,539 |
|
|
90 |
|
0.18 |
|
|
$ |
215,527 |
|
|
71 |
|
0.13 |
|
|
$ |
218,518 |
|
|
61 |
|
0.11 |
|
Savings |
|
5,184 |
|
|
2 |
|
0.15 |
|
|
|
5,582 |
|
|
3 |
|
0.21 |
|
|
|
8,261 |
|
|
1 |
|
0.05 |
|
Money market accounts |
|
680,697 |
|
|
7,139 |
|
4.16 |
|
|
|
655,990 |
|
|
6,373 |
|
3.85 |
|
|
|
552,185 |
|
|
3,016 |
|
2.17 |
|
Time deposits |
|
380,731 |
|
|
4,528 |
|
4.72 |
|
|
|
374,429 |
|
|
4,256 |
|
4.51 |
|
|
|
177,346 |
|
|
1,299 |
|
2.91 |
|
Borrowed funds |
|
41,823 |
|
|
321 |
|
3.05 |
|
|
|
34,932 |
|
|
228 |
|
2.59 |
|
|
|
199,982 |
|
|
1,772 |
|
3.52 |
|
Total interest-bearing liabilities |
|
1,303,974 |
|
|
12,080 |
|
3.68 |
|
|
|
1,286,460 |
|
|
10,931 |
|
3.37 |
|
|
|
1,156,292 |
|
|
6,149 |
|
2.11 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
27,529 |
|
|
|
|
|
|
25,047 |
|
|
|
|
|
|
23,941 |
|
|
|
|
Noninterest-bearing deposits |
|
622,941 |
|
|
|
|
|
|
666,939 |
|
|
|
|
|
|
735,416 |
|
|
|
|
Stockholders’ equity |
|
248,035 |
|
|
|
|
|
|
242,671 |
|
|
|
|
|
|
220,507 |
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,202,479 |
|
|
|
|
|
$ |
2,221,117 |
|
|
|
|
|
$ |
2,136,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
4.94 |
% |
|
|
|
|
|
5.33 |
% |
|
|
|
|
|
5.70 |
% |
Net interest income |
|
|
$ |
34,889 |
|
|
|
|
|
$ |
36,810 |
|
|
|
|
|
$ |
35,199 |
|
|
Net interest margin(4) |
|
|
|
|
6.40 |
% |
|
|
|
|
|
6.71 |
% |
|
|
|
|
|
6.64 |
% |
_______________
(1) Annualized.(2) Includes nonaccrual
loans.(3) For the three months ended December 31, 2023,
September 30, 2023, and December 31, 2022, collectively, portfolio
loans yield excluding credit card loans was 6.89%, 6.76% and 5.86%,
respectively.(4) For the three months ended December 31, 2023,
September 30, 2023, and December 31, 2022, collectively, SBA-PPP
loans and credit card loans accounted for 248, 266 and 273 basis
points of the reported net interest margin, respectively.
|
Year Ended December 31, |
|
|
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 |
$ |
70,407 |
|
$ |
3,211 |
|
4.56 |
% |
|
$ |
156,751 |
|
$ |
2,007 |
|
1.28 |
% |
Federal funds sold |
|
1,597 |
|
|
74 |
|
4.63 |
|
|
|
2,959 |
|
|
44 |
|
1.49 |
|
Investment securities available for sale |
|
245,466 |
|
|
4,815 |
|
1.96 |
|
|
|
248,869 |
|
|
3,912 |
|
1.57 |
|
Restricted investments |
|
5,016 |
|
|
346 |
|
6.90 |
|
|
|
5,475 |
|
|
275 |
|
5.02 |
|
Loans held for sale |
|
5,755 |
|
|
382 |
|
6.64 |
|
|
|
9,696 |
|
|
435 |
|
4.49 |
|
SBA-PPP loans receivable |
|
1,373 |
|
|
30 |
|
2.18 |
|
|
|
29,831 |
|
|
3,477 |
|
11.66 |
|
Portfolio loans receivable(2)(3) |
|
1,815,595 |
|
|
174,348 |
|
9.60 |
|
|
|
1,579,661 |
|
|
140,496 |
|
8.89 |
|
Total interest earning assets |
|
2,145,209 |
|
|
183,206 |
|
8.54 |
|
|
|
2,033,242 |
|
|
150,646 |
|
7.41 |
|
Noninterest earning
assets |
|
43,090 |
|
|
|
|
|
|
44,559 |
|
|
|
|
Total assets |
$ |
2,188,299 |
|
|
|
|
|
$ |
2,077,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand accounts |
$ |
201,194 |
|
|
298 |
|
0.15 |
|
|
$ |
253,923 |
|
|
174 |
|
0.07 |
|
Savings |
|
5,768 |
|
|
8 |
|
0.14 |
|
|
|
8,917 |
|
|
5 |
|
0.06 |
|
Money market accounts |
|
642,013 |
|
|
23,510 |
|
3.66 |
|
|
|
553,388 |
|
|
4,529 |
|
0.82 |
|
Time deposits |
|
360,464 |
|
|
15,809 |
|
4.39 |
|
|
|
165,854 |
|
|
2,903 |
|
1.75 |
|
Borrowed funds |
|
59,302 |
|
|
2,055 |
|
3.47 |
|
|
|
77,556 |
|
|
2,428 |
|
3.13 |
|
Total interest-bearing liabilities |
|
1,268,741 |
|
|
41,680 |
|
3.29 |
|
|
|
1,059,638 |
|
|
10,039 |
|
0.95 |
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
24,026 |
|
|
|
|
|
|
23,797 |
|
|
|
|
Noninterest-bearing deposits |
|
655,013 |
|
|
|
|
|
|
781,971 |
|
|
|
|
Stockholders’ equity |
|
240,519 |
|
|
|
|
|
|
212,395 |
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,188,299 |
|
|
|
|
|
$ |
2,077,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
5.25 |
% |
|
|
|
|
|
6.46 |
% |
Net interest income |
|
|
$ |
141,526 |
|
|
|
|
|
$ |
140,607 |
|
|
Net interest margin(4) |
|
|
|
|
6.60 |
% |
|
|
|
|
|
6.92 |
% |
(1) Annualized.(2) Includes nonaccrual
loans.(3) For the years ended December 31, 2023 and 2022,
collectively, portfolio loans yield excluding credit card loans was
6.66% and 5.31%, respectively.(4) For the years ended December
31, 2023 and 2022, collectively, SBA-PPP loans and credit card
loans accounted for 264 and 299 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 year ended December
31, 2023 and December 31, 2022.
Segments |
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Commercial Bank |
|
CBHL |
|
OpenSky® |
|
Corporate(2) |
|
Eliminations |
|
Consolidated |
Interest income |
|
$ |
30,957 |
|
|
$ |
83 |
|
|
$ |
15,035 |
|
$ |
964 |
|
|
$ |
(70 |
) |
|
$ |
46,969 |
|
Interest expense |
|
|
11,884 |
|
|
|
31 |
|
|
|
— |
|
|
235 |
|
|
|
(70 |
) |
|
|
12,080 |
|
Net interest income |
|
|
19,073 |
|
|
|
52 |
|
|
|
15,035 |
|
|
729 |
|
|
|
— |
|
|
|
34,889 |
|
Provision (release of
provision) for credit losses |
|
|
691 |
|
|
|
— |
|
|
|
2,125 |
|
|
(8 |
) |
|
|
— |
|
|
|
2,808 |
|
Release of credit losses on
unfunded commitments |
|
|
(106 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(106 |
) |
Net interest income after provision |
|
|
18,488 |
|
|
|
52 |
|
|
|
12,910 |
|
|
737 |
|
|
|
— |
|
|
|
32,187 |
|
Noninterest income |
|
|
773 |
|
|
|
1,166 |
|
|
|
3,996 |
|
|
1 |
|
|
|
— |
|
|
|
5,936 |
|
Noninterest expense(1) |
|
|
15,135 |
|
|
|
1,437 |
|
|
|
10,378 |
|
|
(43 |
) |
|
|
— |
|
|
|
26,907 |
|
Net income (loss) before taxes |
|
$ |
4,126 |
|
|
$ |
(219 |
) |
|
$ |
6,528 |
|
$ |
781 |
|
|
$ |
— |
|
|
$ |
11,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
2,050,436 |
|
|
$ |
8,589 |
|
|
$ |
117,477 |
|
$ |
276,831 |
|
|
$ |
(228,666 |
) |
|
$ |
2,224,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Provision for 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 December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Commercial Bank |
|
CBHL |
|
OpenSky® |
|
Corporate(2) |
|
Eliminations |
|
Consolidated |
Interest income |
|
$ |
24,389 |
|
|
$ |
88 |
|
|
$ |
16,035 |
|
$ |
891 |
|
|
$ |
(55 |
) |
|
$ |
41,348 |
|
Interest expense |
|
|
5,990 |
|
|
|
33 |
|
|
|
— |
|
|
181 |
|
|
|
(55 |
) |
|
|
6,149 |
|
Net interest income |
|
|
18,399 |
|
|
|
55 |
|
|
|
16,035 |
|
|
710 |
|
|
|
— |
|
|
|
35,199 |
|
Provision for loan losses |
|
|
— |
|
|
|
— |
|
|
|
2,384 |
|
|
— |
|
|
|
— |
|
|
|
2,384 |
|
Net interest income after provision |
|
|
18,399 |
|
|
|
55 |
|
|
|
13,651 |
|
|
710 |
|
|
|
— |
|
|
|
32,815 |
|
Noninterest income |
|
|
550 |
|
|
|
696 |
|
|
|
4,314 |
|
|
1 |
|
|
|
— |
|
|
|
5,561 |
|
Noninterest expense(1) |
|
|
13,811 |
|
|
|
2,085 |
|
|
|
10,724 |
|
|
114 |
|
|
|
— |
|
|
|
26,734 |
|
Net income (loss) before taxes |
|
$ |
5,138 |
|
|
$ |
(1,334 |
) |
|
$ |
7,241 |
|
$ |
597 |
|
|
$ |
— |
|
|
$ |
11,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,939,601 |
|
|
$ |
7,936 |
|
|
$ |
122,418 |
|
$ |
245,399 |
|
|
$ |
(191,699 |
) |
|
$ |
2,123,655 |
|
________________________
(1) Noninterest expense includes $5.7 million,
$6.1 million and $6.1 million in data processing expense in
OpenSky’s® segment for the three months ended December 31, 2023
September 30, 2023, and December 31, 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
year ended December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Commercial Bank |
|
CBHL |
|
OpenSky® |
|
Corporate(2) |
|
Eliminations |
|
Consolidated |
Interest income |
|
$ |
116,408 |
|
|
$ |
382 |
|
|
$ |
62,476 |
|
$ |
4,238 |
|
$ |
(298 |
) |
|
$ |
183,206 |
|
Interest expense |
|
|
40,896 |
|
|
|
135 |
|
|
|
— |
|
|
947 |
|
|
(298 |
) |
|
|
41,680 |
|
Net interest income |
|
|
75,512 |
|
|
|
247 |
|
|
|
62,476 |
|
|
3,291 |
|
|
— |
|
|
|
141,526 |
|
Provision for credit
losses |
|
|
1,540 |
|
|
|
— |
|
|
|
7,948 |
|
|
122 |
|
|
— |
|
|
|
9,610 |
|
Release of credit losses on
unfunded commitments |
|
|
(101 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
(101 |
) |
Net interest income after provision |
|
|
74,073 |
|
|
|
247 |
|
|
|
54,528 |
|
|
3,169 |
|
|
— |
|
|
|
132,017 |
|
Noninterest income |
|
|
2,737 |
|
|
|
4,909 |
|
|
|
17,325 |
|
|
4 |
|
|
— |
|
|
|
24,975 |
|
Noninterest expense(1) |
|
|
61,836 |
|
|
|
6,001 |
|
|
|
42,524 |
|
|
406 |
|
|
— |
|
|
|
110,767 |
|
Net income (loss) before taxes |
|
$ |
14,974 |
|
|
$ |
(845 |
) |
|
$ |
29,329 |
|
$ |
2,767 |
|
$ |
— |
|
|
$ |
46,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
2,050,436 |
|
|
$ |
8,589 |
|
|
$ |
117,477 |
|
$ |
276,831 |
|
$ |
(228,666 |
) |
|
$ |
2,224,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
year ended December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Commercial Bank |
|
CBHL |
|
OpenSky® |
|
Corporate(2) |
|
Eliminations |
|
Consolidated |
Interest income |
|
$ |
82,182 |
|
|
$ |
435 |
|
|
$ |
64,859 |
|
$ |
3,349 |
|
$ |
(179 |
) |
|
$ |
150,646 |
|
Interest expense |
|
|
9,245 |
|
|
|
218 |
|
|
|
— |
|
|
755 |
|
|
(179 |
) |
|
|
10,039 |
|
Net interest income |
|
|
72,937 |
|
|
|
217 |
|
|
|
64,859 |
|
|
2,594 |
|
|
— |
|
|
|
140,607 |
|
Provision (release of
provision) for loan losses |
|
|
(980 |
) |
|
|
— |
|
|
|
7,611 |
|
|
— |
|
|
— |
|
|
|
6,631 |
|
Net interest income after provision |
|
|
73,917 |
|
|
|
217 |
|
|
|
57,248 |
|
|
2,594 |
|
|
— |
|
|
|
133,976 |
|
Noninterest income |
|
|
2,122 |
|
|
|
5,276 |
|
|
|
21,972 |
|
|
2 |
|
|
— |
|
|
|
29,372 |
|
Noninterest expense(1) |
|
|
52,552 |
|
|
|
8,450 |
|
|
|
47,647 |
|
|
465 |
|
|
— |
|
|
|
109,114 |
|
Net income (loss) before taxes |
|
$ |
23,487 |
|
|
$ |
(2,957 |
) |
|
$ |
31,573 |
|
$ |
2,131 |
|
$ |
— |
|
|
$ |
54,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,939,601 |
|
|
$ |
7,936 |
|
|
$ |
122,418 |
|
$ |
245,399 |
|
$ |
(191,699 |
) |
|
$ |
2,123,655 |
|
(1) Noninterest expense includes $23.7 million
and $27.0 million in data processing expense in OpenSky’s® segment
for the years ended December 31, 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) |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
Earnings: |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
9,030 |
|
|
$ |
9,788 |
|
|
$ |
7,318 |
|
|
$ |
9,735 |
|
|
$ |
8,991 |
|
Earnings per common share,
diluted |
|
|
0.65 |
|
|
|
0.70 |
|
|
|
0.52 |
|
|
|
0.68 |
|
|
|
0.62 |
|
Net interest margin |
|
|
6.40 |
% |
|
|
6.71 |
% |
|
|
6.63 |
% |
|
|
6.65 |
% |
|
|
6.64 |
% |
Net interest margin, excluding
credit cards & SBA-PPP loans(1) |
|
|
3.92 |
% |
|
|
4.05 |
% |
|
|
4.06 |
% |
|
|
3.81 |
% |
|
|
3.91 |
% |
Return on average
assets(2) |
|
|
1.63 |
% |
|
|
1.75 |
% |
|
|
1.34 |
% |
|
|
1.84 |
% |
|
|
1.67 |
% |
Return on average assets,
excluding impact of SBA-PPP loans(1)(2) |
|
|
1.63 |
% |
|
|
1.75 |
% |
|
|
1.34 |
% |
|
|
1.84 |
% |
|
|
1.67 |
% |
Return on average
equity(2) |
|
|
14.44 |
% |
|
|
16.00 |
% |
|
|
12.30 |
% |
|
|
16.98 |
% |
|
|
16.18 |
% |
Efficiency ratio |
|
|
65.91 |
% |
|
|
65.02 |
% |
|
|
70.41 |
% |
|
|
64.73 |
% |
|
|
65.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheet: |
|
|
|
|
|
|
|
|
|
|
Total portfolio loans
receivable, net deferred fees |
|
$ |
1,902,643 |
|
|
$ |
1,861,929 |
|
|
$ |
1,837,041 |
|
|
$ |
1,786,109 |
|
|
$ |
1,728,592 |
|
Total deposits |
|
|
1,895,996 |
|
|
|
1,967,988 |
|
|
|
1,934,361 |
|
|
|
1,944,374 |
|
|
|
1,758,072 |
|
Total assets |
|
|
2,224,667 |
|
|
|
2,272,484 |
|
|
|
2,227,866 |
|
|
|
2,245,286 |
|
|
|
2,123,655 |
|
Total stockholders'
equity |
|
|
254,860 |
|
|
|
242,878 |
|
|
|
237,435 |
|
|
|
234,517 |
|
|
|
224,015 |
|
Total average portfolio loans
receivable, net deferred fees |
|
|
1,862,599 |
|
|
|
1,846,866 |
|
|
|
1,800,800 |
|
|
|
1,750,539 |
|
|
|
1,675,434 |
|
Total average deposits |
|
|
1,885,092 |
|
|
|
1,918,467 |
|
|
|
1,881,380 |
|
|
|
1,771,024 |
|
|
|
1,691,726 |
|
Portfolio loans-to-deposit
ratio (period-end balances) |
|
|
100.35 |
% |
|
|
94.61 |
% |
|
|
94.97 |
% |
|
|
91.86 |
% |
|
|
98.32 |
% |
Portfolio loans-to-deposit
ratio (average balances) |
|
|
98.81 |
% |
|
|
96.27 |
% |
|
|
95.72 |
% |
|
|
98.84 |
% |
|
|
99.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets |
|
|
0.72 |
% |
|
|
0.67 |
% |
|
|
0.71 |
% |
|
|
0.73 |
% |
|
|
0.46 |
% |
Nonperforming assets to total
assets, excluding the SBA-PPP loans(1) |
|
|
0.72 |
% |
|
|
0.67 |
% |
|
|
0.71 |
% |
|
|
0.73 |
% |
|
|
0.46 |
% |
Nonperforming loans to total
loans |
|
|
0.84 |
% |
|
|
0.82 |
% |
|
|
0.85 |
% |
|
|
0.91 |
% |
|
|
0.56 |
% |
Nonperforming loans to
portfolio loans(1) |
|
|
0.84 |
% |
|
|
0.82 |
% |
|
|
0.86 |
% |
|
|
0.91 |
% |
|
|
0.56 |
% |
Net charge-offs to average
portfolio loans(1)(2) |
|
|
0.53 |
% |
|
|
0.38 |
% |
|
|
0.35 |
% |
|
|
0.61 |
% |
|
|
0.49 |
% |
Allowance for credit losses to
total loans |
|
|
1.50 |
% |
|
|
1.52 |
% |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.52 |
% |
Allowance for credit losses to
portfolio loans(1) |
|
|
1.50 |
% |
|
|
1.52 |
% |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
Allowance for credit losses to
non-performing loans |
|
|
178.34 |
% |
|
|
185.61 |
% |
|
|
175.03 |
% |
|
|
160.91 |
% |
|
|
270.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
Bank Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
Total risk based capital
ratio |
|
|
14.81 |
% |
|
|
14.51 |
% |
|
|
14.08 |
% |
|
|
14.09 |
% |
|
|
14.21 |
% |
Tier 1 risk based capital
ratio |
|
|
13.56 |
% |
|
|
13.25 |
% |
|
|
12.82 |
% |
|
|
12.84 |
% |
|
|
12.95 |
% |
Leverage ratio |
|
|
10.51 |
% |
|
|
10.04 |
% |
|
|
9.77 |
% |
|
|
9.78 |
% |
|
|
9.47 |
% |
Common equity Tier 1 capital
ratio |
|
|
13.56 |
% |
|
|
13.25 |
% |
|
|
12.82 |
% |
|
|
12.84 |
% |
|
|
12.95 |
% |
Tangible common equity |
|
|
9.91 |
% |
|
|
9.08 |
% |
|
|
8.93 |
% |
|
|
8.79 |
% |
|
|
8.85 |
% |
Holding Company
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
Total risk based capital
ratio |
|
|
17.38 |
% |
|
|
17.11 |
% |
|
|
16.81 |
% |
|
|
16.75 |
% |
|
|
16.33 |
% |
Tier 1 risk based capital
ratio |
|
|
15.55 |
% |
|
|
15.27 |
% |
|
|
14.96 |
% |
|
|
14.90 |
% |
|
|
15.13 |
% |
Leverage ratio |
|
|
12.14 |
% |
|
|
11.62 |
% |
|
|
11.50 |
% |
|
|
11.47 |
% |
|
|
11.24 |
% |
Common equity Tier 1 capital
ratio |
|
|
15.43 |
% |
|
|
15.27 |
% |
|
|
14.96 |
% |
|
|
14.90 |
% |
|
|
15.00 |
% |
Tangible common equity |
|
|
11.71 |
% |
|
|
10.69 |
% |
|
|
10.66 |
% |
|
|
10.44 |
% |
|
|
10.55 |
% |
Composition of
Loans: |
|
|
|
|
|
|
|
|
|
|
SBA-PPP loans, net |
|
$ |
645 |
|
|
$ |
750 |
|
|
$ |
1,090 |
|
|
$ |
2,037 |
|
|
$ |
2,163 |
|
Commercial real estate, non
owner-occupied |
|
$ |
351,116 |
|
|
$ |
350,637 |
|
|
$ |
348,892 |
|
|
$ |
348,047 |
|
|
$ |
351,423 |
|
Commercial real estate,
owner-occupied |
|
$ |
307,911 |
|
|
$ |
305,802 |
|
|
$ |
311,972 |
|
|
$ |
299,966 |
|
|
$ |
300,809 |
|
Residential real estate |
|
|
573,104 |
|
|
|
558,147 |
|
|
|
555,133 |
|
|
|
545,899 |
|
|
|
484,735 |
|
Construction real estate |
|
|
290,108 |
|
|
|
280,905 |
|
|
|
258,400 |
|
|
|
251,494 |
|
|
|
238,099 |
|
Commercial and industrial |
|
|
238,548 |
|
|
|
236,782 |
|
|
|
233,598 |
|
|
|
221,258 |
|
|
|
220,221 |
|
Lender finance |
|
|
11,085 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Business equity lines of
credit |
|
|
14,117 |
|
|
|
14,155 |
|
|
|
13,277 |
|
|
|
12,205 |
|
|
|
12,319 |
|
Credit card, net of
reserve(3) |
|
|
123,331 |
|
|
|
122,533 |
|
|
|
122,925 |
|
|
|
112,860 |
|
|
|
128,434 |
|
Other consumer loans |
|
|
950 |
|
|
|
948 |
|
|
|
1,187 |
|
|
|
1,578 |
|
|
|
1,179 |
|
Portfolio loans receivable |
|
$ |
1,910,270 |
|
|
$ |
1,869,909 |
|
|
$ |
1,845,384 |
|
|
$ |
1,793,307 |
|
|
$ |
1,737,219 |
|
Deferred origination fees,
net |
|
|
(7,627 |
) |
|
|
(7,980 |
) |
|
|
(8,343 |
) |
|
|
(7,198 |
) |
|
|
(8,627 |
) |
Portfolio loans receivable, net |
|
$ |
1,902,643 |
|
|
$ |
1,861,929 |
|
|
$ |
1,837,041 |
|
|
$ |
1,786,109 |
|
|
$ |
1,728,592 |
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
617,373 |
|
|
$ |
680,803 |
|
|
$ |
693,129 |
|
|
$ |
705,801 |
|
|
$ |
674,313 |
|
Interest-bearing demand |
|
|
199,308 |
|
|
|
229,035 |
|
|
|
243,095 |
|
|
|
219,685 |
|
|
|
207,836 |
|
Savings |
|
|
5,211 |
|
|
|
5,686 |
|
|
|
5,816 |
|
|
|
5,835 |
|
|
|
7,530 |
|
Money markets |
|
|
663,129 |
|
|
|
668,774 |
|
|
|
631,148 |
|
|
|
632,087 |
|
|
|
574,978 |
|
Brokered time deposits |
|
|
142,356 |
|
|
|
128,665 |
|
|
|
128,665 |
|
|
|
181,820 |
|
|
|
131,819 |
|
Other time deposits |
|
|
268,619 |
|
|
|
255,025 |
|
|
|
232,508 |
|
|
|
199,146 |
|
|
|
161,596 |
|
Total deposits |
|
$ |
1,895,996 |
|
|
$ |
1,967,988 |
|
|
$ |
1,934,361 |
|
|
$ |
1,944,374 |
|
|
$ |
1,758,072 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Bank Home Loan Metrics: |
|
|
|
|
Origination of loans held for
sale |
|
$ |
45,152 |
|
|
$ |
50,023 |
|
|
$ |
61,480 |
|
|
$ |
44,448 |
|
|
$ |
43,956 |
|
Mortgage loans sold |
|
|
34,140 |
|
|
|
39,364 |
|
|
|
49,231 |
|
|
|
40,483 |
|
|
|
43,415 |
|
Gain on sale of loans |
|
|
1,015 |
|
|
|
1,011 |
|
|
|
1,262 |
|
|
|
1,223 |
|
|
|
912 |
|
Purchase volume as a % of
originations |
|
|
89.99 |
% |
|
|
92.29 |
% |
|
|
93.12 |
% |
|
|
90.72 |
% |
|
|
88.94 |
% |
Gain on sale as a % of loans
sold(4) |
|
|
2.97 |
% |
|
|
2.57 |
% |
|
|
2.56 |
% |
|
|
3.02 |
% |
|
|
2.10 |
% |
Mortgage commissions |
|
$ |
465 |
|
|
$ |
528 |
|
|
$ |
621 |
|
|
$ |
378 |
|
|
$ |
451 |
|
|
|
|
|
|
|
|
|
|
|
|
OpenSky®Portfolio
Metrics: |
|
|
|
|
Open customer accounts |
|
|
525,314 |
|
|
|
529,205 |
|
|
|
540,058 |
|
|
|
527,231 |
|
|
|
533,855 |
|
Secured credit card loans,
gross |
|
$ |
95,300 |
|
|
$ |
98,138 |
|
|
$ |
100,218 |
|
|
$ |
89,078 |
|
|
$ |
104,157 |
|
Unsecured credit card loans,
gross |
|
|
30,817 |
|
|
|
27,430 |
|
|
|
25,254 |
|
|
|
25,782 |
|
|
|
26,795 |
|
Noninterest secured credit
card deposits |
|
|
173,857 |
|
|
|
181,185 |
|
|
|
186,566 |
|
|
|
184,809 |
|
|
|
187,412 |
|
_______________
(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 |
Quarter Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
9,030 |
|
|
$ |
9,788 |
|
|
$ |
7,318 |
|
|
$ |
9,735 |
|
|
$ |
8,991 |
|
Less: SBA-PPP Loan Income |
|
4 |
|
|
|
11 |
|
|
|
7 |
|
|
|
8 |
|
|
|
28 |
|
Net Income, as
Adjusted |
$ |
9,026 |
|
|
$ |
9,777 |
|
|
$ |
7,311 |
|
|
$ |
9,727 |
|
|
$ |
8,963 |
|
Average Total Assets |
|
2,202,479 |
|
|
|
2,221,117 |
|
|
|
2,184,351 |
|
|
|
2,144,249 |
|
|
|
2,136,156 |
|
Less: Average SBA-PPP Loans |
|
699 |
|
|
|
906 |
|
|
|
1,808 |
|
|
|
2,099 |
|
|
|
2,435 |
|
Average Total Assets,
as Adjusted |
$ |
2,201,780 |
|
|
$ |
2,220,211 |
|
|
$ |
2,182,543 |
|
|
$ |
2,142,150 |
|
|
$ |
2,133,721 |
|
Return on Average
Assets, as Adjusted |
|
1.63 |
% |
|
|
1.75 |
% |
|
|
1.34 |
% |
|
|
1.84 |
% |
|
|
1.67 |
% |
Return on Average
Assets, as Adjusted |
Year Ended |
|
(in thousands) |
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
Net Income |
$ |
35,871 |
|
|
$ |
41,804 |
|
|
Less: SBA-PPP Loan Income |
|
30 |
|
|
|
3,477 |
|
|
Net Income, as
Adjusted |
$ |
35,841 |
|
|
$ |
38,327 |
|
|
Average Total Assets |
|
2,188,299 |
|
|
|
2,077,801 |
|
|
Less: Average SBA-PPP Loans |
|
1,373 |
|
|
|
29,831 |
|
|
Average Total Assets,
as Adjusted |
$ |
2,186,926 |
|
|
$ |
2,047,970 |
|
|
Return on Average
Assets, as Adjusted |
|
1.64 |
% |
|
|
1.87 |
% |
|
Net Interest Margin,
as Adjusted |
Quarter Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
$ |
34,889 |
|
|
$ |
36,810 |
|
|
$ |
35,340 |
|
|
$ |
34,487 |
|
|
$ |
35,199 |
|
Less: Credit Card Loan Income |
|
14,677 |
|
|
|
15,792 |
|
|
|
14,818 |
|
|
|
15,809 |
|
|
|
15,717 |
|
Less: SBA-PPP Loan Income |
|
4 |
|
|
|
11 |
|
|
|
7 |
|
|
|
8 |
|
|
|
28 |
|
Net Interest Income,
as Adjusted |
$ |
20,208 |
|
|
$ |
21,007 |
|
|
$ |
20,515 |
|
|
$ |
18,670 |
|
|
$ |
19,454 |
|
Average Interest Earning
Assets |
|
2,162,459 |
|
|
|
2,176,477 |
|
|
|
2,136,936 |
|
|
|
2,103,984 |
|
|
|
2,101,617 |
|
Less: Average Credit Card Loans |
|
114,551 |
|
|
|
116,814 |
|
|
|
110,574 |
|
|
|
115,850 |
|
|
|
124,120 |
|
Less: Average SBA-PPP Loans |
|
699 |
|
|
|
906 |
|
|
|
1,808 |
|
|
|
2,099 |
|
|
|
2,435 |
|
Total Average Interest
Earning Assets, as Adjusted |
$ |
2,047,209 |
|
|
$ |
2,058,757 |
|
|
$ |
2,024,554 |
|
|
$ |
1,986,035 |
|
|
$ |
1,975,062 |
|
Net Interest Margin,
as Adjusted |
|
3.92 |
% |
|
|
4.05 |
% |
|
|
4.06 |
% |
|
|
3.81 |
% |
|
|
3.91 |
% |
Net Interest Margin,
as Adjusted |
Year Ended |
|
(in thousands) |
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
Net Interest Income |
$ |
141,526 |
|
|
$ |
140,607 |
|
|
Less: Credit Card Loan Income |
|
61,096 |
|
|
|
63,348 |
|
|
Less: SBA-PPP Loan Income |
|
30 |
|
|
|
3,477 |
|
|
Net Interest Income,
as Adjusted |
$ |
80,400 |
|
|
$ |
73,782 |
|
|
Average Interest Earning
Assets |
|
2,145,209 |
|
|
|
2,033,242 |
|
|
Less: Average Credit Card Loans |
|
114,450 |
|
|
|
126,473 |
|
|
Less: Average SBA-PPP Loans |
|
1,373 |
|
|
|
29,831 |
|
|
Total Average Interest
Earning Assets, as Adjusted |
$ |
2,029,386 |
|
|
$ |
1,876,938 |
|
|
Net Interest Margin,
as Adjusted |
|
3.96 |
% |
|
|
3.93 |
% |
|
Portfolio Loans
Receivable Yield, as Adjusted |
Quarter Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Portfolio Loans Receivable Interest Income |
$ |
45,022 |
|
|
$ |
45,263 |
|
|
$ |
42,872 |
|
|
$ |
41,191 |
|
|
$ |
38,647 |
|
Less: Credit Card Loan Income |
|
14,677 |
|
|
|
15,792 |
|
|
|
14,818 |
|
|
|
15,809 |
|
|
|
15,717 |
|
Portfolio Loans
Receivable Interest Income, as Adjusted |
$ |
30,345 |
|
|
$ |
29,471 |
|
|
$ |
28,054 |
|
|
$ |
25,382 |
|
|
$ |
22,930 |
|
Average Portfolio Loans
Receivable |
|
1,862,599 |
|
|
|
1,846,866 |
|
|
|
1,800,800 |
|
|
|
1,750,539 |
|
|
|
1,675,434 |
|
Less: Average Credit Card Loans |
|
114,551 |
|
|
|
116,814 |
|
|
|
110,574 |
|
|
|
115,850 |
|
|
|
124,120 |
|
Total Average
Portfolio Loans Receivable, as Adjusted |
$ |
1,748,048 |
|
|
$ |
1,730,052 |
|
|
$ |
1,690,226 |
|
|
$ |
1,634,689 |
|
|
$ |
1,551,314 |
|
Portfolio Loans
Receivable Yield, as Adjusted |
|
6.89 |
% |
|
|
6.76 |
% |
|
|
6.66 |
% |
|
|
6.30 |
% |
|
|
5.86 |
% |
Portfolio Loans
Receivable Yield, as Adjusted |
Year Ended |
|
(in thousands) |
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
Portfolio Loans Receivable Interest Income |
$ |
174,348 |
|
|
$ |
140,496 |
|
|
Less: Credit Card Loan Income |
|
61,096 |
|
|
|
63,348 |
|
|
Portfolio Loans
Receivable Interest Income, as Adjusted |
$ |
113,252 |
|
|
$ |
77,148 |
|
|
Average Portfolio Loans
Receivable |
|
1,815,595 |
|
|
|
1,579,661 |
|
|
Less: Average Credit Card Loans |
|
114,450 |
|
|
|
126,473 |
|
|
Total Average
Portfolio Loans Receivable, as Adjusted |
$ |
1,701,145 |
|
|
$ |
1,453,188 |
|
|
Portfolio Loans
Receivable Yield, as Adjusted |
|
6.66 |
% |
|
|
5.31 |
% |
|
Pre-tax, Pre-Provision
Net Revenue ("PPNR") |
Quarter Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
9,030 |
|
|
$ |
9,788 |
|
$ |
7,318 |
|
$ |
9,735 |
|
|
$ |
8,991 |
Add: Income Tax Expense |
|
2,186 |
|
|
|
2,998 |
|
|
2,255 |
|
|
2,915 |
|
|
|
2,651 |
Add: Provision for Credit Losses |
|
2,808 |
|
|
|
2,280 |
|
|
2,862 |
|
|
1,660 |
|
|
|
2,384 |
Add: (Release of) Provision for Credit Losses on Unfunded
Commitments |
|
(106 |
) |
|
|
24 |
|
|
— |
|
|
(19 |
) |
|
|
— |
Pre-tax, Pre-Provision
Net Revenue ("PPNR") |
$ |
13,918 |
|
|
$ |
15,090 |
|
$ |
12,435 |
|
$ |
14,291 |
|
|
$ |
14,026 |
Pre-tax, Pre-Provision
Net Revenue ("PPNR") |
Year Ended |
|
(in thousands) |
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
Net Income |
$ |
35,871 |
|
|
$ |
41,804 |
|
Add: Income Tax Expense |
|
10,354 |
|
|
|
12,430 |
|
Add: Provision for Credit Losses |
|
9,610 |
|
|
|
6,631 |
|
Add: Release of Credit Losses on Unfunded Commitments |
|
(101 |
) |
|
|
— |
|
Pre-tax, Pre-Provision
Net Revenue ("PPNR") |
$ |
55,734 |
|
|
$ |
60,865 |
|
Allowance for Credit
Losses to Total Portfolio Loans |
Quarter Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses |
$ |
28,610 |
|
|
$ |
28,279 |
|
|
$ |
27,495 |
|
|
$ |
26,216 |
|
|
$ |
26,385 |
|
Total Loans |
|
1,903,288 |
|
|
|
1,862,679 |
|
|
|
1,838,131 |
|
|
|
1,788,146 |
|
|
|
1,730,755 |
|
Less: SBA-PPP Loans |
|
645 |
|
|
|
750 |
|
|
|
1,090 |
|
|
|
2,037 |
|
|
|
2,163 |
|
Total Portfolio
Loans |
$ |
1,902,643 |
|
|
$ |
1,861,929 |
|
|
$ |
1,837,041 |
|
|
$ |
1,786,109 |
|
|
$ |
1,728,592 |
|
Allowance for Credit
Losses to Total Portfolio Loans |
|
1.50 |
% |
|
|
1.52 |
% |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
Nonperforming Assets
to Total Assets, net SBA-PPP Loans |
Quarter Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Total Nonperforming Assets |
$ |
16,042 |
|
|
$ |
15,236 |
|
|
$ |
15,709 |
|
|
$ |
16,293 |
|
|
$ |
9,756 |
|
Total Assets |
|
2,224,667 |
|
|
|
2,272,484 |
|
|
|
2,227,866 |
|
|
|
2,245,286 |
|
|
|
2,123,655 |
|
Less: SBA-PPP Loans |
|
645 |
|
|
|
750 |
|
|
|
1,090 |
|
|
|
2,037 |
|
|
|
2,163 |
|
Total Assets, net
SBA-PPP Loans |
$ |
2,224,022 |
|
|
$ |
2,271,734 |
|
|
$ |
2,226,776 |
|
|
$ |
2,243,249 |
|
|
$ |
2,121,492 |
|
Nonperforming Assets
to Total Assets, net SBA-PPP Loans |
|
0.72 |
% |
|
|
0.67 |
% |
|
|
0.71 |
% |
|
|
0.73 |
% |
|
|
0.46 |
% |
Nonperforming Loans to
Total Portfolio Loans |
Quarter Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Total Nonperforming Loans |
$ |
16,042 |
|
|
$ |
15,236 |
|
|
$ |
15,709 |
|
|
$ |
16,293 |
|
|
$ |
9,756 |
|
Total Loans |
|
1,903,288 |
|
|
|
1,862,679 |
|
|
|
1,838,131 |
|
|
|
1,788,146 |
|
|
|
1,730,755 |
|
Less: SBA-PPP Loans |
|
645 |
|
|
|
750 |
|
|
|
1,090 |
|
|
|
2,037 |
|
|
|
2,163 |
|
Total Portfolio Loans |
$ |
1,902,643 |
|
|
$ |
1,861,929 |
|
|
$ |
1,837,041 |
|
|
$ |
1,786,109 |
|
|
$ |
1,728,592 |
|
Nonperforming Loans to
Total Portfolio Loans |
|
0.84 |
% |
|
|
0.82 |
% |
|
|
0.86 |
% |
|
|
0.91 |
% |
|
|
0.56 |
% |
Net Charge-offs to
Average Portfolio Loans |
Quarter Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30,2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Total Net Charge-offs |
$ |
2,477 |
|
|
$ |
1,780 |
|
|
$ |
1,583 |
|
|
$ |
2,633 |
|
|
$ |
2,090 |
|
Total Average Loans |
|
1,863,298 |
|
|
|
1,847,772 |
|
|
|
1,802,608 |
|
|
|
1,752,638 |
|
|
|
1,677,869 |
|
Less: Average SBA-PPP Loans |
|
699 |
|
|
|
906 |
|
|
|
1,808 |
|
|
|
2,099 |
|
|
|
2,435 |
|
Total Average
Portfolio Loans |
$ |
1,862,599 |
|
|
$ |
1,846,866 |
|
|
$ |
1,800,800 |
|
|
$ |
1,750,539 |
|
|
$ |
1,675,434 |
|
Net Charge-offs to
Average Portfolio Loans |
|
0.53 |
% |
|
|
0.38 |
% |
|
|
0.35 |
% |
|
|
0.61 |
% |
|
|
0.49 |
% |
Net Charge-offs to
Average Portfolio Loans |
Year Ended |
|
(in thousands) |
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
Total Net Charge-offs |
$ |
8,473 |
|
|
$ |
5,427 |
|
|
Total Average Loans |
|
1,816,968 |
|
|
|
1,609,492 |
|
|
Less: Average SBA-PPP Loans |
|
1,373 |
|
|
|
29,831 |
|
|
Total Average
Portfolio Loans |
$ |
1,815,595 |
|
|
$ |
1,579,661 |
|
|
Net Charge-offs to
Average Portfolio Loans |
|
0.47 |
% |
|
|
0.34 |
% |
|
Tangible Book Value per
Share |
Quarter Ended |
(in thousands, except per
share amounts) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Total Stockholders' Equity |
$ |
254,860 |
|
$ |
242,878 |
|
$ |
237,435 |
|
$ |
234,517 |
|
$ |
224,015 |
Less: Preferred Equity |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Less: Intangible Assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Tangible Common
Equity |
$ |
254,860 |
|
$ |
242,878 |
|
$ |
237,435 |
|
$ |
234,517 |
|
$ |
224,015 |
Period End Shares
Outstanding |
|
13,922,532 |
|
|
13,893,083 |
|
|
13,981,414 |
|
|
14,082,657 |
|
|
14,138,829 |
Tangible Book Value
per Share |
$ |
18.31 |
|
$ |
17.48 |
|
$ |
16.98 |
|
$ |
16.65 |
|
$ |
15.84 |
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
December 31, 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 $2.2
billion at December 31, 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
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