Capital Bancorp Q3 core EPS rises 2% from prior quarter
CBNK•Capital Bancorp’s third-quarter core EPS rose 2% from the prior quarter and 24% year over year to $0.89. Deposits fell from Q2, mainly due to seasonality and a large customer withdrawal.
1. Quarterly results
Capital Bancorp reported third-quarter adjusted EPS of $0.89, net interest income of $53.10 million and a loan loss provision of $4.90 million. Core EPS rose 2% from the prior quarter and 24% year over year.
2. Business trends
Deposits declined from Q2, mainly due to seasonality and a large customer withdrawal. The company said loan growth was driven by commercial and industrial lending and residential real estate, while higher net interest margin reflected growth in Commercial Bank loans and higher OpenSky balances. Fee income rose, led by government lending, loan servicing, credit card fees and USDA fees.
3. Merger and outlook
Capital Bancorp expects its pending merger with Peoples Bancorp to close, subject to regulatory and shareholder approvals, and has suspended its stock repurchase program while the merger is pending. The company expects OpenSky credit performance to remain consistent with management expectations.
