Capital Bancorp Reports 73.7% Increase in Net Income to $15.1 Million

Capital Bancorp, Inc. reported significant financial growth in its latest quarterly filing, with net income for the three months ending September 30, 2025, reaching $15.1 million, a 73.7% increase from $8.7 million in the same period last year. This growth was driven by a 23.3% rise in interest income, totaling $64.9 million, compared to $52.6 million in the prior year. The increase in interest income was primarily attributed to organic growth and the acquisition of Integrated Financial Holdings, Inc. (IFH), which contributed to a net interest income of $52.0 million, up 35.6% from $38.4 million a year earlier.

The company also saw a notable increase in total assets, which rose to $3.39 billion as of September 30, 2025, up from $3.21 billion at the end of 2024. This growth was largely fueled by a $191.8 million increase in portfolio loans, which reached $2.82 billion, and a $150.1 million rise in total deposits, now at $2.91 billion. The allowance for credit losses also increased to $53.0 million, reflecting a proactive approach to managing credit risk amid portfolio growth.

Strategically, Capital Bancorp's acquisition of IFH, completed on October 1, 2024, has been a significant development, enhancing its operational capabilities and market presence. The integration of IFH's banking systems and operations has been ongoing, with the company reporting merger-related expenses of $3.4 million for the nine months ended September 30, 2025. The acquisition is expected to contribute positively to future revenue streams, particularly through the Windsor Advantage™ division, which specializes in government-guaranteed lending.

Operationally, the company reported a 66.8% increase in noninterest income, totaling $11.1 million for the third quarter, driven by contributions from the IFH acquisition. The credit card fees also saw a modest increase, while mortgage banking revenue remained stable. However, noninterest expenses rose to $38.4 million, up 29.0% from the previous year, primarily due to increased salaries and employee benefits, as well as occupancy and equipment costs.

Looking ahead, Capital Bancorp remains optimistic about its growth trajectory, supported by its strategic acquisitions and a strong capital position. The company is classified as "well capitalized" under regulatory standards, with a total stockholders' equity of $394.8 million as of September 30, 2025. The management is focused on maintaining asset quality and managing credit risks effectively, with plans to continue monitoring economic conditions that may impact its operations.