Business
Capital Bancorp Reports Second Quarter 2020 Net Income of $4.8 million
Record 64% growth in OpenSky® Credit Cards accounts drove a $47.2 million increase in noninterest bearing secured credit card depositsRecord Mortgage Loan
About this update from Capital Bancorp, Inc.
[{"type":"text","content":"Record 64% growth in OpenSky® Credit Cards accounts drove a $47.2 million increase in noninterest bearing secured credit card depositsRecord Mortgage Loan Originations of $315.2 million and record Mortgage Banking Revenue of $10.1 millionIncrease in Net Income Supported by Business DiversificationRobust Common Equity Tier 1 capital ratio of 12.39%Credit provisions increased the ratio of the allowance for loan losses (\"ALLL\") to total loans to 1.30%, or 1.54% excluding Small Business Administration Payroll Protection Program (\"PPP\") loans ROCKVILLE, Md., July 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 $4.8 million, or $0.34 per diluted share, for the second quarter of 2020. By comparison, net income was $4.0 million, or $0.29 per diluted share, for the second quarter of 2019. Return on average assets was 1.19% for the second quarter of 2020, compared to 1.39% for the same period in 2019, and return on average equity was 13.70% for the second quarter of 2020, compared to 13.23% for the same period in 2019. Included in net income was a provision for loan losses of $3.3 million, attributable to factors related to COVID-19.\n \"Our diversified earnings model and entrepreneurial and technology-enabled culture continues to be a source of strength in these difficult times,\" said Ed Barry, CEO of Capital Bancorp. \"We moved quickly to take advantage of market opportunities and dramatically increase OpenSky® card growth and mortgage originations while supporting our borrowers and the community with loan deferrals and PPP loans. We are carefully monitoring credit quality while assisting borrowers affected by the disruption in the economy. While we are optimistic, we also acknowledge the elevated uncertainty in the market. Our loan loss provision reflects our prudent business practices and is supported by our strong core earnings.\" Second Quarter 2020 Highlights Record Number of OpenSky® Credit Card Accounts Opened - At June 30, 2020, the Bank had 401 thousand OpenSky® credit card accounts. Growth was driven by a record 172 thousand new quarterly originations, as we launched several new marketing efforts in response to COVID-19 related changes in the competitive landscape. Card balances, which typically lag...