Capital Bancorp, Inc. reported significant growth in its financial performance for the third quarter and the first nine months of 2024, despite a decline in net income compared to the previous year. As of September 30, 2024, total assets reached $2,560.8 million, a 15.0% increase from $2,226.2 million at the end of 2023. Total deposits also rose by 15.3% to $2,186.2 million, driven by a substantial increase in noninterest-bearing deposits.

For the three months ended September 30, 2024, net income was $8.7 million, down 11.4% from $9.8 million in the same period of 2023. The decline in net income was attributed to increased provisions for credit losses, which rose to $3.7 million from $2.3 million year-over-year. Net interest income for the quarter increased by 4.2% to $38.4 million, supported by a rise in average portfolio loans and a slight increase in yield. However, the net interest margin decreased by 30 basis points to 6.41%.

For the nine months ended September 30, 2024, net income totaled $23.4 million, a decrease of 12.7% from $26.8 million in the prior year. Net interest income for this period increased by 3.5% to $110.4 million, driven by a growth in average portfolio loans and a higher yield. Noninterest income also saw a modest increase of 2.4% to $19.5 million, with mortgage banking revenue rising significantly due to increased loan sales.

The company completed its merger with Integrated Financial Holdings, Inc. on October 1, 2024, which is expected to enhance its market presence and operational capabilities. The merger involved converting each share of IFHI common stock into 1.115 shares of Capital Bancorp common stock and $5.36 in cash. Merger-related expenses for the nine months ended September 30, 2024, amounted to $1.3 million.

Capital Bancorp's total stockholders' equity increased to $280.1 million as of September 30, 2024, reflecting a 9.9% rise from $254.9 million at the end of 2023. The book value per share also improved to $20.13, up from $18.31. The company maintained a strong capital position, classified as "well capitalized" under regulatory standards.

Overall, while Capital Bancorp experienced growth in assets, deposits, and net interest income, it faced challenges with net income and increased provisions for credit losses, influenced by market conditions and strategic decisions related to the recent merger.