Capital Bancorp, Inc. reported significant financial growth for the fiscal year ending December 31, 2025, with net income reaching $57.2 million, an increase of 84.6% compared to $30.9 million in 2024. This growth was bolstered by the acquisition of Integrated Financial Holdings, Inc. (IFH) and strong organic growth. The company's net interest income also rose to $196.0 million, up 26.7% from the previous year, driven by an increase in average interest-earning assets, which grew by 29.3% to $3.2 billion. However, the net interest margin slightly decreased to 6.10% from 6.22% in 2024, primarily due to the dilution effect of the commercial loans acquired from IFH.
In terms of operational developments, Capital Bancorp completed the acquisition of IFH on October 1, 2024, which included the merger of West Town Bank & Trust into Capital Bank. This strategic move expanded the company's footprint and product offerings, particularly in government-guaranteed lending through its Windsor Advantage division. The acquisition has allowed Capital Bancorp to enhance its service capabilities and revenue streams, particularly in government loan servicing, which saw a substantial increase in revenue from $4.5 million in 2024 to $19.6 million in 2025.
The company also reported a total asset increase of 12.5%, reaching $3.6 billion by the end of 2025, with net portfolio loans growing by 12.5% to $3.0 billion. Deposits increased by 12.0% to $3.1 billion, reflecting a strong customer base and effective deposit-gathering strategies. The average number of employees rose to 459, contributing to the company's ability to manage its expanded operations effectively. The OpenSky credit card division, which targets under-banked populations, reported a net income before taxes of $14.6 million, although this represented a decrease from the previous year due to increased provisions for credit losses.
Despite the positive financial performance, the company faced challenges, including a material weakness in internal controls over financial reporting, as identified in its audit. Management is actively working on remediation plans to address these issues. Looking ahead, Capital Bancorp aims to continue leveraging its recent acquisitions and expanding its market presence while maintaining a focus on asset quality and regulatory compliance. The company anticipates ongoing growth in its core banking operations and is committed to enhancing shareholder value through strategic initiatives and prudent risk management practices.
About Capital Bancorp Inc
Capital Bancorp, Inc. is a bank holding company operating primarily through its subsidiary, Capital Bank, N.A., a community bank serving the Washington, D.C. and Baltimore areas. It offers commercial banking, mortgage lending, credit cards, and government loan servicing. The company focuses on personalized financial solutions, leveraging technology, and fee-based platforms to serve businesses, entrepreneurs, and underbanked populations across multiple markets.
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