Capital Bancorp Q3 core EPS rises 2% from prior quarter

By Reuters News


Overview

  • US regional bank's Q3 core EPS rose 2% from Q2 and 24% yr/yr

  • Company Q3 deposits fell from Q2, mainly due to seasonality and a large customer withdrawal

  • Pending merger with Peoples Bancorp and Chicago branch sale were previously announced


Outlook

  • Company expects merger with Peoples Bancorp to close pending regulatory and shareholder approvals

  • Company has suspended stock repurchase program while merger with Peoples Bancorp is pending

  • Company expects OpenSky™ credit performance to remain consistent with management expectations


Result Drivers

  • LOAN GROWTH - Co said Q3 loan growth was driven by commercial and industrial lending and residential real estate

  • HIGHER NET INTEREST MARGIN - Co attributed NIM increase to growth in Commercial Bank loans and higher OpenSky balances

  • FEE INCOME - Co said fee income rose, led by government lending, loan servicing, credit card fees and USDA fees


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

$0.89

Q3 Net Interest Income

$53.10 mln

Q3 Loan Loss Provision

$4.90 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "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 is $42.88, about 3.8% above its October 23 closing price of $41.29

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Oct 26 - Business First Bancshares Q3 net income rises on loan and deposit growth

  • Oct 26 - Bank of Marin Bancorp Q3 profit beats estimates on higher loan yields

  • Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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