Capital Bancorp reports Q4 EPS 92c, consensus 65c

Reports Tangible Book Value Per Share of $18.77, decreased 6.8%, or $1.36 as compared to $20.13 or 3Q, resulting from the acquisition of IFH and related purchase accounting impacts; Return on average equity of 8.50%, and return on average tangible common equity of 9.47%; Noninterest income of $11.9 M increased $5.3Mn as compared to the third quarter 2024 primarily due to contributions from the IFH acquisition. Government loan servicing revenue or Windsor totaled $4.0M, government lending revenue totaled $2.3M and loan servicing rights totaled $1.0M , offset by a non-recurring equity and debt write-down of $2.6M related to an IFH investment. Other income increased $1.0M including $0.9M related to an investment in an SBIC, while credit card fees declined $0.3M ….”The really strong performance of the commercial bank during the quarter was highlighted by record loan growth, solid deposit growth, and stable core net interest margin. I am particularly pleased by the growth of our commercial and industrial loans,” said Steven J. Schwartz, Chairman of the Company. “This outstanding organic growth is expected to continue to be a major contributing factor in our overall earnings growth in 2025 and beyond. The acquisition of IFH, while creating a lot of noise in the financial results of the 4th quarter, provides us with a new line of business – loan servicing, processing, and packaging – and a significant expansion of our government-guaranteed lending platform.”