Overview

* Capital Bancorp ( CBNK ) Q2 net income beats analyst expectations, but misses adjusted EPS view

* Revenue growth driven by IFH acquisition and organic growth

* Co increases cash dividend by 20% from Q1, repurchases shares worth $2.5 mln

Outlook

* Capital Bancorp ( CBNK ) sees no unexpected headwinds impacting growth

* Company aims for robust EPS and TBV growth through multiple levers

Result Drivers

* IFH ACQUISITION - Contributed $373.5 mln to loan growth and $459.0 mln to deposit growth

* ORGANIC GROWTH - Added $344.7 mln to loan growth and $381.3 mln to deposit growth

* NET INTEREST INCOME - Increased $10.6 million y/y due to strong organic growth and the acquisition of IFH

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS Miss $0.78 $0.88 (4

Analysts

)

Q2 Net Beat $17.10 $14.90

Income mln mln (4

Analysts

)

Q2 Net $47.60

Interest mln

Income

Q2 Miss $1.40 $19.60

Pretax mln mln (4

Profit Analysts

)

Q2 Loan -$4.10

Loss mln

Provisio

n

Q2 Net 6.0%

Interest

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy"

* Wall Street's median 12-month price target for Capital Bancorp Inc ( CBNK ) is $35.50, about 3.5% above its July 25 closing price of $34.24

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)