Business
Capital Bancorp Reports First Quarter 2020 Net Income of $2.9 million
Net Interest Margin of 5.16% with stable commercial loan yieldsIncreased Noninterest Bearing Deposits by $71.6 million from prior quarter to 27.9% of total
About this update from Capital Bancorp, Inc.
[{"type":"text","content":"Net Interest Margin of 5.16% with stable commercial loan yieldsIncreased Noninterest Bearing Deposits by $71.6 million from prior quarter to 27.9% of total depositsRecord 43 thousand OpenSky® Credit Cards openedRobust capital with a Common Equity Tier 1 ratio of 12.19% and conservative credit provisions increasing the Allowance for Loan Losses to Total Loans to 1.31% ROCKVILLE, Md., April 30, 2020 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the \"Company\") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the \"Bank\"), today reported net income of $2.9 million, or $0.21 per diluted share, for the first quarter of 2020. By comparison, net income was $3.3 million, or $0.24 per diluted share, for the first quarter of 2019. Return on average assets was 0.84%, for the first quarter of 2020, compared to 1.22% for the same period in 2019, and return on average equity was 8.59% for the first quarter of 2020, compared to 11.39% for the same period in 2019. The decrease in net income was primarily due to a COVID-19 related $2.2 million increase in the provision for loan losses.\n \"When the impact of the COVID-19 pandemic began to emerge, Capital Bank took immediate action to protect our employees and serve and support our clients.\" said Ed Barry, CEO of Capital Bancorp. \"Due to our on-going strategic initiatives and investments in technology, 94% of our employees have transitioned to a remote work environment with minimal disruption to our business operations and client service. We have closed some branches and are operating at reduced hours at others to ensure employee and client safety. We are assisting our clients who are experiencing financial stress by providing loan modifications and deferrals and by actively participating in the Paycheck Protection Program. While no one anticipated this event and its impact is hard to predict, Capital Bank is committed to demonstrating the value of relationship banking to its clients.\" Mr. Barry continued, \"Our financial performance in the first quarter was solid with a net interest margin of 5.16% and net interest income of $17.7 million, which is an almost 20% increase from the first quarter of 2019. Our Net Income of $2.9 million was adversely impacted by a $2.4 million provision for loan losses that was primarily related to the COVID-19 pandemic. We had strong growth in non-inte...