Capital Bancorp reports Q2 EPS 59c, consensus 59c

Reports Q2 Net interest income of $37.1 M increased $2.1N compared to $35.M for the first quarter 2024. Interest income of $50.6 million increased $2.2 million compared to $48.4 million for the first quarter 2024, primarily due to interest income from $65.3 million in average portfolio loan growth. Interest expense of $13.6 million increased $0.2 million compared to $13.4 million for the first quarter 2024 as interest expense from time deposits increased $0.3 million as growth in average balances increased $15.9 million .The company also declared a cash dividend on its common stock of 10c per share. The dividend is payable on August 21 to shareholders of record on August 5. The dividend declared of10c is2c or 25% higher than the prior quarter’s dividend reflecting the strength of earnings and capital position. The Company has increased its dividend each year since it first started paying dividends in 2021. “All of our businesses continued to make progress in the second quarter with sustained loan and deposit growth, increased credit card accounts and revenue growth, mortgage banking income growth, and continued credit stability,” said Ed Barry, Chief Executive Officer of the Company and the Bank. “These positive trends drove stable deposit costs, record net interest income, and increased net interest margin. We were also pleased to receive approval for our pending acquisition of Integrated Financial Holdings, Inc. from the Federal Reserve and we continue to work towards obtaining all approvals and closing requirements. IFHI’s expertise in niche C&I lending will further diversify our lending and fee generating capabilities while enhancing shareholder value.””The Board is very pleased with the second quarter results and, in particular, with the improvement in our NIM and the growth of our loan and deposit balances. If the economy cooperates, we anticipate these improvements will result in continued steady growth in our EPS and TBV,” said Steven J Schwartz, Chairman of the Company. “We reaffirm our steadfast commitment to smartly grow enterprise value of the Company, while continually expanding and improving the services and products we offer to our customers.”