Business
CBNK Announces Record Quarterly Earnings
Diluted EPS of $0.80, ROAA of 2.23%, and ROAE of 22.16% for 2Q 2022 ROCKVILLE, Md., July 20, 2022 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company")
About this update from Capital Bancorp, Inc.
[{"type":"text","content":"Diluted EPS of $0.80, ROAA of 2.23%, and ROAE of 22.16% for 2Q 2022\nROCKVILLE, Md., July 20, 2022 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the \"Company\") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the \"Bank\"), today reported net income of $11.5 million, or $0.80 per diluted share, for the second quarter of 2022 representing 19.3% growth when compared to net income of $9.6 million, or $0.68 per diluted share, for the second quarter of 2021. Net portfolio loans increased $81.4 million, or 21.4 percent annualized, during the second quarter. \"Loan growth, stable deposit costs, OpenSky® performance and lower than anticipated expenses drove another quarter of outstanding performance,\" said Ed Barry, CEO of the Company and the Bank. \"Credit quality in our commercial and consumer loan portfolios remains stable with an anticipated increase in loss provisions in our OpenSky® loan portfolio. Continued aggressive marketing by fintech and credit card companies offering unsecured subprime credit cards has resulted in account growth headwinds in OpenSky®, but we are confident that our approach to serving this market and our investments to scale our platform will continue to deliver substantial profits in this business. Our multi-year effort to transform our deposit franchise continues to show results and will help drive results in the rising rate environment.\" \"We are pleased with how well Capital Bank's diversified business model continues to perform despite changes in macroeconomic conditions\" said Steven Schwartz, Chairman of the Board of the Company. \"Our extremely dedicated management team and fully engaged Board remain focused on increasing shareholder value by improving our unique mix of products with the adoption of state-of-the-art technology to deliver coveted financial solutions to our customers.\" Second Quarter 2022 Highlights Capital Bancorp, Inc. Record Earnings - Continued strong performance by the Commercial Bank and OpenSky® contributed to the second quarter's record results. Quarterly net income increased to $11.5 million from $9.6 million in the second quarter of 2021 due mainly to increased net interest income due to loan growth and an increase in rates. The increase in net interest income was offset by an increase in the loan loss provision and a decrease in noninterest income. Earnings were...