Capital Bancorp, Inc. · NASDAQ:CBNK
Capital Bancorp — Q1 2025 Earnings Presentation
25 slides from Capital Bancorp's earnings presentation, Apr 28, 2025
Slide 1: 1Q 2025 Investor Overview
© CAPITAL BANCORP, INC. 1Q 2025 Investor Overview
Slide 2: Forward Looking Statements
Forward Looking Statements The statements contained in this presentation that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on Capital Bancorp, Inc. (the “Company” or “Capital”
Slide 3: Financial Highlights and Corporate Timeline
(in millions except per share data) Balance Sheet 1Q25 4Q24 Annualized 1Q24 YoY Assets $ 3,350 $ 3,207 18.1% $ 2,324 44.1% Portfolio Loans 2,678 2,630 7.4% 1,965 36.3% Deposits 2,891 2,762 19.0% 2,006 44.2% Quarterly Financial Performance(1) 1Q25 4Q24 QoQ 1Q24 YoY Earnings per Share, Diluted $ 0.82
Slide 4: CBNK Business Model is Uniquely Diversified
$2.6Bn Q1 '25 Servicing Portfolio $4.6mm Q1 '25 Revenue3 • Loan service provider that offers community banks and credit unions with a comprehensive outsourced U.S. Small Business Association (“SBA”) 7(a) and U.S. Department of Agriculture (“USDA”) lending platform • Servicing portfolio complements U
Slide 5: Financial Information
© CAPITAL BANCORP, INC. Financial Information
Slide 6: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin $20,045 $21,223 $22,676 $28,097 $30,016 $14,921 $15,785 $15,625 $15,454 $14,444 $715 $1,499 $35,008 $37,057 $38,354 $44,327 $46,047 6.24% 6.46% 6.41% 5.87% 6.05% 3.77% 3.90% 4.01% 3.99% 4.32% 1Q24 2Q24 3Q24 4Q24 1Q25 Commercial Bank OpenSky Net Purchase Ac
Slide 7: Fee Revenue
Fee Revenue $3,915 $4,368 $4,096 $3,743 $3,733 $1,352 $1,845 $1,811 $1,676 $1,736 $705 $677 $728 $2,246 $1,378 $2,301 $1,096 $4,566 $4,606 $(2,619) 14.6% 15.7% 14.7% 24.7% 21.4% 1Q24 2Q24 3Q24 4Q24 1Q25 OpenSky CBHL Commercial Bank GGL Windsor Advantage Other(1) Core Fee Revenue as a % of Total Core
Slide 8: Noninterest Expense
Noninterest Expense $12,907 $13,272 $13,345 $16,513 $18,067 $1,613 $1,864 $1,791 $2,976 $2,910 $1,947 $1,769 $1,980 $2,150 $2,112 $6,761 $6,788 $6,930 $7,210 $7,112 $2,032 $2,072 $1,223 $1,032 $1,779 $3,515 $3,645 $3,936 $5,018 $4,807 $712 $83 $520 $2,615 $1,266 $29,487 $29,493 $29,725 $37,514 $38,0
Slide 9: Profitability
1.24% 1.41% 1.51% 1.97% 1.87% 1.15% 1.40% 1.42% 0.96% 1.75% 1Q24 2Q24 3Q24 4Q24 1Q25 ROA ROA Core ROA Profitability(1) 9 11.03% 12.62% 13.40% 17.46% 16.64% 10.19% 12.53% 12.59% 8.50% 15.56% 1Q24 2Q24 3Q24 4Q24 1Q25 Return on Average Equity “ROE” ROE 11.03% 12.62% 13.40% 18.91% 18.77% 10.19% 12.53% 1
Slide 10: Balance Sheet Composition
Balance Sheet Composition Cash & Cash Equivalents 9% Portfolio Loans 80% AFS Securities Portfolio 6% Other Assets 5% Asset Composition Owner Occupied Commercial Real Estate 16% Non Owner- Occupied Commercial Real Estate 18% Residential Real Estate 26% Construction Real Estate 13%Other(1) 1% Credit C
Slide 11: Composition of Deposits
Composition of Deposits Noninterest-bearing 28% Money Markets 32% Customer Time Deposits 19% Brokered Time Deposits 11% Interest-bearing Demand 10%Savings <1% 1Q25 Total Deposits: $2.89B Commentary • Deposits growth of $129.4 million, or 19.0% (annualized) for 1Q25. • Average Portfolio loans-to-depo
Slide 12: High Quality, Low Risk Investment Portfolio
High Quality, Low Risk Investment Portfolio U.S. Treasuries 56% Municipal 4%Corporate 2% Asset-backed 3% Mortgage-backed 35% 1Q25 Investment Securities: $213MM Investment Securities Portfolio • Classified as available for sale with a fair market value of $213 million, or 6% of total assets, with an
Slide 13: Liquidity
$625 $76 $119 $294 $1,114 March 31, 2025 Cash and Cash Equivalents Unpledged Investment Securities Unsecured LOC with Other Banks Collateralized LOC Liquidity $ in m illi on s 13 Sources of Liquidity at March 31, 2025: • $625 million of collateralized lines of credit include: • $509 million of avail
Slide 14: Loan Yield and Deposit Rate Trends
Loan Yield and Deposit Rate Trends (including net purchase accounting adjustments) 9.58% 9.72% 9.66% 8.96% 9.00% 6.96% 7.04% 7.15% 6.98% 7.14% 3.91% 3.87% 3.92% 3.46% 3.37% 2.64% 2.61% 2.64% 2.50% 2.42% 1Q24 2Q24 3Q24 4Q24 1Q25 Loan Yield Commercial Bank Loan Yield(1) Interest Bearing Deposits Rate
Slide 15: Credit Metrics
0.41% 0.39% 0.51% 0.37% 0.38% 1Q24 2Q24 3Q24 4Q24 1Q25 Annualized Net Charge-Offs / Average Portfolio Loans(1) 0.73% 0.70% 0.73% 1.15% 1.40% 1Q24 2Q24 3Q24 4Q24 1Q25 Non-performing Loans / Total Portfolio Loans(1) Credit Metrics 0.62% 0.58% 0.60% 0.94% 1.12% 1Q24 2Q24 3Q24 4Q24 1Q25 Non-performing A
Slide 16: Robust Capital Ratios
Robust Capital Ratios 13.10% 13.25% 12.50% 11.54% 11.75% 1Q24 2Q24 3Q24 4Q24 1Q25 Bank Tier-1 Risk Based Tier-1 Risk Based 8.0% Well-Capitalized Threshold 16 11.16% 10.98% 10.94% 11.07% 9.94%9.66% 9.53% 9.12% 9.31% 8.66% 1Q24 2Q24 3Q24 4Q24 1Q25 Tangible Common Equity Holding Company Tangible Common
Slide 17: Share Appreciation Outperforms Industry
58.48% (60%) (40%) (20%) 0% 20% 40% 60% 80% 100% 120% 140% 160% % Change CBNK 125% KBW NASDAQ Regional Banking Index (6%) Selected Banks2 Median (8%) 0% 20% 40% 60% 80% 100% 120% 140% 160% Share Appreciation Outperforms Industry Source: S&P Global Market Intelligence; FactSet. Note: Market data as o
Slide 18: Recently Completed Strategic Acquisition of IFHI
Recently Completed Strategic Acquisition of IFHI
Slide 19: Renewables Business Poised to Grow as Energy Transition Continues
Renewables Business Poised to Grow as Energy Transition Continues to Take Hold OperationsProject AssemblyDevelopmentProject Lifecycle LTC Development Loans Formula based on mid and late-stage development assets Rate: Prime + 1.0% to 3.0% Variable, quarterly adjust Term: 24 months Loan to Cost: Up to
Slide 20: Contact: Dominic Canuso and Ed Barry
Dominic Canuso Chief Financial Officer (301) 468-8848 x1403 Ed Barry Chief Executive Officer (240) 283-1912 NASDAQ: CBNK
Slide 21: Non-U.S. GAAP Financial Measures
Non-U.S. GAAP Financial Measures
Slide 22: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information 22 Tangible Book Value Per Share (in thousands, except per share amount) March 31, 2025 December 31, 2024 March 31, 2024 Total Stockholders' Equity 369,577$ 355,139$ 259,465$ Less: Preferred equity - - - Less: Intangible assets 39,641 36,943 - Tangible Common E
Slide 23: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information 23
Slide 24: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information 24
Slide 25: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information 25 Return on Average Tangible Common Equity (in thousands) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Net Income 13,932$ 7,533$ 8,672$ 8,205$ 6,562$ Add: Intangible Amortization, net of tax 199 198 - - - Net Tangible Income