CORRECTED-Capital Bancorp misses Q2 net income estimates

Overview

• Capital Bancorp Q2 net income misses net income and EPS expectations

• 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 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

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 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: ID:nGNX75k6TZ