Capital Bancorp (CBNK) investor relations material

Executive summary

• Q3’26 gross loans grew 10.2% annualized; core net income was $14.7 million, core ROA 1.55%, and core ROTCE 15.24%.

• Net income was $13.1 million, down 12.9% YoY; adjusted core net income was $14.7 million, versus $12.2 million a year earlier.

• Loan growth and higher fee income lifted net interest income 2.0% and noninterest income 35.9%; higher funding and operating expenses pressured earnings.

• The all-stock Peoples merger was announced in September at an exchange ratio of 1.11 shares per eligible share; closing is expected in H1 2027, subject to approvals and other conditions.

Financial highlights

• Diluted EPS was $0.80 versus $0.89; core diluted EPS was $0.89 versus $0.72, up 23.6% YoY.

• Net interest income was $53.1 million, up 2.0% YoY; noninterest income was $15.0 million, up 35.9%.

• Noninterest expense was $45.7 million, up 19.2% YoY, including $1.6 million of merger-related expenses.

• 9M net income was $39.4 million, down 6.5% YoY; net interest income increased 5.3% to $153.4 million and noninterest income rose 16.5% to $42.8 million.

• Total assets were $3.80 billion; net portfolio loans were $3.11 billion and deposits were $3.32 billion at quarter-end.

Outlook and guidance

• Management cited continued organic growth prospects alongside potential merger synergies; no numerical outlook was stated.

• The Peoples merger is expected to close in H1 2027, subject to stockholder and regulatory approvals and customary conditions.

• The North Riverside branch sale is expected to close in Q1 2027, subject to customary conditions including regulatory approvals.

• OpenSky began testing limited unsecured-loan offers to new customers; activity was insignificant and balances were expected to remain de minimis through year-end.

• Management expects a shift toward relationship-based core deposits to reduce funding costs over time and considers liquidity ample.