Capital Bancorp Reports 112.3% Increase in Net Income to $13.9 Million

Capital Bancorp, Inc. reported significant financial growth in its latest quarterly results, with net income for the three months ending March 31, 2025, reaching $13.9 million, a 112.3% increase from $6.6 million in the same period last year. This surge in profitability was primarily driven by a 31.5% rise in net interest income, which totaled $46.0 million, up from $35.0 million in the prior year. The increase in interest income was attributed to organic growth and the recent acquisition of Integrated Financial Holdings, Inc. (IFH), which contributed to a substantial rise in the loan portfolio.

The company’s total assets increased by 4.5% to $3.35 billion as of March 31, 2025, compared to $3.21 billion at the end of 2024. This growth was supported by a 4.7% increase in total deposits, which reached $2.89 billion, up from $2.76 billion. The loan portfolio also saw a modest increase, with net portfolio loans rising to $2.63 billion, reflecting a 1.8% growth from the previous quarter. The allowance for credit losses slightly decreased to $48.5 million, representing 1.81% of total portfolio loans.

Strategically, Capital Bancorp completed its acquisition of IFH on October 1, 2024, which has been pivotal in enhancing its operational capabilities. The integration of IFH's banking systems was successfully completed in the first quarter of 2025, allowing for a seamless transition and expansion of services. The company also reported a significant increase in noninterest income, which surged by 110.1% to $12.5 million, largely due to contributions from IFH's operations, including government lending and loan servicing revenues.

Operationally, the company has expanded its customer base and improved engagement metrics. The number of credit card accounts through its OpenSky™ platform has increased, contributing to a diversified revenue stream. As of March 31, 2025, the company reported a total of 16.7 million shares outstanding, with a book value per share of $22.19, reflecting a 4.1% increase from the previous quarter. The company’s outlook remains positive, with management expressing confidence in maintaining strong capital levels and continuing to grow its operations while managing risks associated with credit quality and market conditions.