Business
CBNK Reports Fourth Quarter 2022 Results and Record Annual Earnings
Diluted EPS of $0.62, ROAA of 1.67%, and ROAE of 16.18% for 4Q 2022 ROCKVILLE, Md., Jan. 25, 2023 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company")
About this update from Capital Bancorp, Inc.
[{"type":"text","content":"Diluted EPS of $0.62, ROAA of 1.67%, and ROAE of 16.18% for 4Q 2022\nROCKVILLE, Md., Jan. 25, 2023 (GLOBE NEWSWIRE) -- 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 $0.62 per diluted share, for the fourth quarter of 2022, compared to net income of $10.2 million, or $0.71 per diluted share, for the fourth quarter of 2021. Net portfolio loans increased $80.6 million, or 19.4 percent annualized, during the fourth quarter. \"Strong loan growth in the commercial bank was a highlight in the fourth quarter but was tempered by a challenging deposit environment,\" said Ed Barry, CEO of the Company and the Bank. \"Strategic hires, market disruption and a focus on customized solutions continue to deliver growth in the commercial bank. OpenSky® had a record year of profitability and looks set to remain very profitable but inflation is having an impact on unsecured credit while competition and normal attrition has reduced the number of open accounts. Competition for deposits has increased our costs as we focus on retaining high-quality customers. We continue to invest in the business to build a foundation that will be scalable and allow us to grow and drive value over the long term.\" Steven Schwartz, Chairman of the Board of the Company said, \"I am pleased with the record full-year earnings being reported today. Despite the significant headwinds experienced by our mortgage division in 2022, our other diversified sources of revenue -- the Commercial Bank and OpenSky® -- continued to deliver. We are well positioned for continued strong profitability in 2023. We expect our Commercial Bank loan portfolio to continue to grow, our marketing efforts at OpenSky® to be rewarded with renewed growth in cardholder count and outstandings, and our Mortgage division to be restored to profitability. Notwithstanding potential macroeconomic challenges in 2023, I am confident that our best-in-class credit culture will permit us to adroitly manage any issues that may arise.\" Fourth Quarter 2022 Highlights Capital Bancorp, Inc. Earnings Summary - Net income decreased to $9.0 million, or $0.62 per diluted share, compared to $10.2 million, or $0.71 per diluted share, for the fourth quarter of 2021. Increasing interest rates led to a sharp increase ...