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CAPITAL BANK Capital Bancorp Reports First Quarter 2021 Net Income of $ 9.0 million , or $ 0.65 per diluted share April 22 , 2021 ROCKVILLE , Md . , April 22 , 2021 ( GLOBE NEWSWIRE ) -- Capital Bancorp , Inc. ( the " Company " ) ( NASDAQ : CBNK ) , the holding company for Capital Bank , N.A. ( the " Bank ” ) , today reported net income of $ 9.0 million , or $ 0.65 per diluted share , for the first quarter of 2021. By comparison , net income was $ 2.9 million , or $ 0.21 per diluted share , for the first quarter of 2020. Return on average assets was 1.87 % for the first quarter of 2021 , compared to 0.84 % for the same period in 2020. Return on average equity was 22.3 % for the first quarter of 2021 , compared to 8.6 % for the same period in 2020 . " Capital Bancorp started the year with solid first quarter results and is well - positioned to continue our profitable growth in 2021 , " said Steven Schwartz , Chairman of the Board of the Company . " Investments in technology and personnel continue to drive results and support the Bank's differentiated and diversified business model that has demonstrated resiliency in a variety of economic environments . " " Strong performance by all of our business lines delivered another quarter of exceptional revenue and earnings , " said Ed Barry , CEO of the Company . " We continue to navigate through the COVID - 19 pandemic and are building substantial long - term momentum across all of our lines of business . We are optimistic about the potential of our investments in technology and infrastructure to support continued profitable growth in a post COVID - 19 , fintech - enabled world . " First Quarter 2021 Highlights Capital Bancorp , Inc. • Solid Earnings - The Commercial Bank , Capital Bank Home Loans and Open SkyⓇ all continued to perform well . In the first quarter of 2021 , net income of $ 9.0 million more than tripled from $ 2.9 million in the first quarter of 2020 as the economy continued to recover from COVID - 19 . Earnings were $ 0.65 per diluted share for the three months ended March 31 , 2021 compared to $ 0.21 per share for the same period last year . Book value per common share grew 23.2 percent to $ 12.14 at March 31 , 2021 compared to $ 9.85 per share at March 31 , 2020 . • Robust Performance Ratios - Return on average assets ( " ROAA " ) and return on average equity ( " ROAE ” ) were 1.87 % and 22.30 % , respectively , for the three months ended March 31 , 2021 compared to 0.84 % and 8.59 % , respectively , for the three months ended March 31 , 2020 . • Stable Net Interest Margin - The net interest margin was 5.15 % for the three months ended March 31 , 2021 , which is in line with the 5.16 % net interest margin for the same three month period last year . • Strong Balance Sheet - As of March 31 , 2021 , the Company reported a common equity tier 1 capital ratio of 13.81 % and an allowance for loan and lease losses ( " ALLL " ) to total loans ratio of 1.49 % , or 1.79 % excluding Small Business Administration Payroll Protection Program ( " SBA - PPP " ) loans . Commercial Bank • Continued Portfolio Loan Growth - Portfolio loans , excluding credit cards , increased by $ 15.4 million , or 5.1 percent annualized , for the quarter ended March 31 , 2021 to $ 1.23 billion compared to $ 1.21 billion at December 31 , 2020. The quarter over quarter growth was mainly due to strong growth in commercial real estate loans which increased by $ 40.8 million , or 10.4 percent , despite several large loan payoffs . • Growth in Core Deposits and Reduced Cost of Funds - Noninterest bearing deposits increased by $ 163.4 million , or 26.8 percent , during the quarter ended March 31 , 2021 , due to increases in OpenSkyⓇ and SBA - PPP loan - related deposits . At March 31 , 2021 , noninterest bearing deposits represented 41.4 % of total deposits compared to 36.8 % at December 31 , 2020 and 27.9 % at March 31 , 2020. Overall , the cost of interest bearing liabilities was reduced 14 bps , from 0.95 % for the quarter ended December 31 , 2020 to 0.81 % for the quarter ended March 31 , 2021. This reduction was primarily due to the Bank's ongoing strategic initiative to improve its funding mix and to reduce overall rates paid . • Proactive Management Improves Credit Metrics - We are gaining more clarity into our customers ' ability to rebound from the impact of COVID - 19 and as the recovery begins to take hold , our customers are experiencing increased stability in their financial condition . As a result of the improving economic environment , provisions for loan losses declined from $ 1.9 million for the three months ended March 31 , 2020 to $ 503 thousand in the first quarter of 2021. Non - performing assets ( " NPAS " ) decreased to 0.58 % of total assets in the first quarter of 2021 compared to 0.61 % in the same three