Business
Capital Bancorp Reports Fourth Quarter 2019 Net Income of $5.1 million
Increases in Net Interest Income and Noninterest Income contributed to a 32.3% year-over-year increase in Net Income ROCKVILLE, Md., Jan. 23, 2020 (GLOBE
About this update from Capital Bancorp, Inc.
[{"type":"text","content":"Increases in Net Interest Income and Noninterest Income contributed to a 32.3% year-over-year increase in Net Income\nROCKVILLE, Md., Jan. 23, 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 $5.1 million, or $0.36 per diluted share, for the fourth quarter of 2019. By comparison, net income was $3.5 million, or $0.25 per diluted share, for the fourth quarter of 2018. Return on average assets was 1.48%, for the fourth quarter of 2019, compared to 1.27% for the same period in 2018, and return on average equity was 15.3% for the fourth quarter of 2019, compared to 12.3% in the same period of 2018.\n \"Capital Bancorp is executing on the market disruption to post strong balanced growth. The challenging operating environment presents headwinds, but we have been able to attract new customers and talent while exerting pricing and credit discipline to help offset margin compression. As we head into 2020, we believe that our differentiated operating model creates compelling value for customers and investors,\" said Ed Barry CEO of Capital Bancorp. 2019 Fourth Quarter Performance Record Net Income - Net income for the fourth quarter of 2019 increased 13.2% to $5.1 million compared to $4.5 million for the third quarter of 2019. On a fully diluted basis, earnings per share for the three months ended December 31, 2019 was $0.36, compared to $0.32 per share for the three months ended September 30, 2019. Return on average assets was 1.48%, an increase of 6 basis points compared to the third quarter of 2019. Return on average equity for the fourth quarter of 2019 was 15.3%, compared to 14.0% for the previous quarter.Solid Loan Growth - For the quarter ended December 31, 2019, total loans increased $30.8 million, or 2.7%, to $1.17 billion compared to $1.14 billion at September 30, 2019. Commercial and industrial loans grew $18.2 million, or 13.7% and construction real estate loans increased $16.5 million, or 9.0%.Strong Core Deposit Growth - The Company increased overall deposits quarter over quarter by $113.0 million, or 10.2% to $1.23 billion. The growth in the portfolio was primarily due to an increase in money market balances of $115.9 million, partially offset by a seasonal decline in certain interest bearing demand accoun...