Capital Bancorp (CBNK) Q4 2023 earnings summary

Executive summary

• Q4 net income was $9.0M and diluted EPS was $0.65, versus $9.8M and $0.70 in Q3; net income was nearly flat YoY.

• Tangible book value per share reached $18.31, up 15.6% YoY; portfolio loans grew $40.7M, or 8.7% annualized, QoQ, while deposits fell $72.0M.

Financial highlights

• Q4 net interest income was $34.9M, down $1.9M QoQ; provision for credit losses rose to $2.8M from $2.3M, and noninterest income declined to $5.9M from $6.3M.

• Noninterest expense fell $1.1M QoQ to $26.9M; income before taxes was $11.2M, down 12.3% QoQ.

• FY 2023 net income was $35.9M, down 14.2% YoY; diluted EPS was $2.55, down 12.4%. Net interest income rose 0.7% to $141.5M, while noninterest income fell 15.0% to $25.0M.

• Total assets were $2.225B, up 4.8% YoY; portfolio loans were $1.903B, up 10.1%, and deposits were $1.896B, up 7.8%.

Outlook and guidance

• Investments in people, technology, data analytics, digital marketing and executive talent aim to support innovation, diversification and profitable growth.

• OpenSky plans to build cross-sell capabilities as cardholders progress; mortgage operations are maintaining origination capacity while managing expenses.