Capital Bancorp, Inc. · NASDAQ:CBNK
Capital Bancorp — Q1 2025 Earnings Presentation
25 slides from Capital Bancorp's earnings presentation, 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
Capital Bancorp, Inc. (NASDAQ-CBNK) Financial Highlights (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) 1
Slide 4: CBNK Business Model is Uniquely Diversified
CBNK Business Model is Uniquely Diversified Commercial Banking OpenSky $2.6Bn $2.4Bn $34.0mm $110mm $169mm $18.2mm Portfolio Gross Loans, ex. OpenSky Deposits Q1 '25 Revenue Loans, net2 Deposits Q1 '25 Revenue • Focused on our core markets and filling out our national deposit vertical strategy • Nat
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 $ in thousands $46,047 $44,327 $1,499 $715 $38,354 $37,057 $35,008 6.46% 6.41% $14,444 6.24% $15,454 6.05% 5.87% $15,625 $15,785 $14,921 4.32% 4.01% 3.99% 3.90% 3.77% $20,045 $21,223 $22,676 $28,097 $30,016 1Q24 2Q24 3Q24 4Q24 1Q25 Commercial Bank OpenSky
Slide 7: Fee Revenue
Fee Revenue 24.7% $ in thousands 21.4% $4,566 15.7% 14.6% 14.7% $4,606 $2,301 $1,096 $677 $728 $2,246 $1,378 $705 $1,845 $1,811 $1,352 $1,676 $1,736 $3,915 $4,368 $4,096 $3,743 $3,733 1Q24 2Q24 3Q24 4Q24 1Q25 $(2,619) OpenSky CBHL Commercial Bank GGL Windsor Advantage Other(1) Core Fee Revenue as a
Slide 8: Noninterest Expense
Noninterest Expense $ in thousands 70.2% 66.9% 64.9% 62.8% 59.3% $37,514 $38,053 $1,266 $2,615 $4,807 $5,018 $29,487 $29,493 $29,725 $1,779 $712 $83 $520 $1,032 $3,515 $3,645 $3,936 $7,112 $2,072 $1,223 $7,210 $2,032 $2,112 $6,761 $6,788 $6,930 $2,150 $2,910 $2,976 $1,947 $1,769 $1,980 $1,613 $1,864
Slide 9: Profitability
Profitability(1) ROA Return on Average Equity “ROE” 17.46% 16.64% 1.97% 1.87% 13.40% 15.56% 12.62% 1.41% 1.51% 1.75% 11.03% 1.24% 12.53% 12.59% 1.40% 1.42% 10.19% 1.15% 8.50% 0.96% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 ROA Core ROA ROE Core ROE ROTCE Earnings Per Share, Diluted 18.91% 18
Slide 10: Balance Sheet Composition
Balance Sheet Composition Asset Composition Portfolio Loan Composition Cash & Cash Equivalents C&I + OO-CRE 9% represents 38% of Non Owner- total Portfolio Loans Owner Occupied Occupied Portfolio Loans Commercial Real 80% Commercial Estate Real Estate 16% 18% 1Q25 1Q25 Total Assets: Commercial and T
Slide 11: Composition of Deposits
Composition of Deposits Money Markets 32% For the Three Months As of Ended (in thousands) March 31, 2025 March 31, 2025 Noninterest-bearing 28% Spot Average Average Deposits: Balance Balance Rate(1) 1Q25 Noninterest-bearing $ 812,224 $ 783,018 0.00% Total Deposits: Interest-bearing demand 296,455 24
Slide 12: High Quality, Low Risk Investment Portfolio
High Quality, Low Risk Investment Portfolio Mortgage-backed 35% 1Q25 Investment Securities: U.S. Treasuries $213MM 56% Asset-backed 3% Municipal Corporate 4% 2% 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
Liquidity $ in millions $1,114 $294 Sources of Liquidity at March 31, 2025: • $625 million of collateralized lines of credit include: $119 • $509 million of available borrowing capacity from the FHLB. $76 • $116 million of available borrowing capacity from the Federal Reserve Bank of Richmond’s disc
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
Credit Metrics Non-performing Assets / Total Assets Non-performing Loans / Total Portfolio Loans(1) 1.12% 1.40% 0.94% 1.15% 0.62% 0.60% 0.58% 0.73% 0.70% 0.73% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Annualized Net Charge-Offs / Average Portfolio Allowance for Credit Losses / Total Portfol
Slide 16: Robust Capital Ratios
Robust Capital Ratios Bank Tier-1 Risk Based Bank Total Risk Based 13.10% 13.25% 12.50% 14.36% 14.51% 11.75% 13.76% 11.54% 12.79% 13.00% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Tier-1 Risk Based Total Risk Based 8.0% Well-Capitalized Threshold 10.0% Well-Capitalized Threshold Bank Tier-1 L
Slide 17: Share Appreciation Outperforms Industry
Share Appreciation Outperforms Industry TBVPS + Dividend Growth Since 2018Q3 Share Price Change Since CBNK IPO on 9/26/20181 160% 70%+ Outperformance 160% 130%+ Outperformance vs. both groups vs. both groups 140% 140% 120% 58.48% 120% 100% 100% 80% 60% 80% 40% 60% 20% 40% 0% (20%) 20% (40%) 0% (60%)
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 to Take Hold
Renewables Business Poised to Grow as Energy Transition Continues to Take Hold Significant Market Opportunity Given Renewables Growth Benefits of USDA Loans U.S. Electricity Generation from Selected Fuels Billion kilowatt-hours Borrower Lender 2022 6,000 History Projections ✓ Longer loan terms ✓ Up
Slide 20: Dominic Canuso, Chief Financial Officer; Ed Barry, Chief Executive Officer
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 Tangible Book Value Per Share Quarters Ended (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 - Ta
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 Return on Average Tangible Common Equity Quarters Ended March 31, December 31, September 30, June 30, March 31, (in thousands) 2025 2024 2024 2024 2024 Net Income $ 13,932 $ 7,533 $ 8,672 $ 8,205 $ 6,562 Add: Intangible Amortization, net of tax 199 198 - - - Ne