Capital Bancorp Stock Price, News & Analysis

Capital Bancorp, Inc. (NASDAQ: CBNK) has completed its merger with Integrated Financial Holdings, Inc. (OTCQX: IFHI). The transaction aims to create a nationwide leader in government guaranteed lending across USDA and SBA lending. Key points include:

- IFHI shareholders receive 1.115 CBNK shares and $5.36 in cash per IFHI share
- Pro forma organization will have approximately $3 billion in assets
- About 70% of Capital's net income will be from commercial banking
- Approximately 20% of pro forma revenue from fee revenue
- Marc McConnell joins Capital's Board of Directors
- Key IFHI executives joining Capital include A. Riddick Skinner and Melissa Marsal

The merger is expected to diversify CBNK with a niche C&I business that is capital efficient, high-return, and generates meaningful fee income.

Capital Bancorp (NASDAQ: CBNK) and Integrated Financial Holdings (IFH) have received all required regulatory approvals for their proposed merger. The Office of the Comptroller of the Currency (OCC) and the Federal Reserve Bank of Richmond have granted approval, following shareholder approval on August 15, 2024. The merger, announced on March 28, 2024, is expected to close in early Q4 2024, subject to customary conditions.

This acquisition aims to provide CBNK with immediate scale in USDA and SBA verticals, aligning with their strategy to diversify across high risk-adjusted return verticals. Post-merger, the combined entity is projected to have $3.0 billion in assets, with approximately 70% of net income coming from commercial banking.

Capital Bancorp announced a 25% increase in net income for Q2 2024, reaching $8.2 million or $0.59 per share, compared to $6.6 million or $0.47 per share in Q1 2024. Net interest income rose by $2.1 million (5.9%), and net interest margin (NIM) increased to 6.46% from 6.24%. The company saw significant loan and deposit growth, with loans growing by $57.1 million (11.7% annualized) and deposits by $94.7 million (19% annualized). A cash dividend of $0.10 per share, 25% higher than the previous quarter, was declared. The pending acquisition of Integrated Financial Holdings received Federal Reserve approval, with other regulatory approvals and shareholder votes pending. Nonperforming assets decreased to 0.58% of total assets from 0.62%.

Capital Bank has announced the appointment of Dominic C. Canuso, CFA, as the new Chief Financial Officer (CFO) for Capital Bancorp and Capital Bank, N.A., effective July 15, 2024. Canuso, a seasoned finance executive, previously served as EVP and CFO at WSFS Bank, where he played a key role in quadrupling the bank's size, producing record profits, and enhancing technology solutions over seven years. He also has prior experience at Barclays Bank, Advanta Bank, and Arthur Andersen Consulting. CEO Ed Barry highlights Canuso's ability to drive growth and transform financial operations as vital to Capital Bank's ongoing expansion. Canuso expressed enthusiasm about joining the leadership team and contributing to Capital Bank's strategic priorities and growth. Canuso is a CFA Charter holder with a Bachelor of Science in Finance and an Executive MBA in Strategy and Leadership from Villanova University.

Capital Bank, N.A. has announced the relocation and expansion of its Reston branch to 1900 Campus Commons Dr, Suite 130, Reston, VA, which opened on May 6, 2024. This move replaces the former location at 10700 Parkridge Blvd #180. The new branch offers increased space and improved parking, aiming to enhance the banking experience for customers and support local business growth. CEO Ed Barry highlighted the bank's commitment to meeting the evolving needs of its clientele. Capital Bank, operating for over 25 years in the DC Metro Region, reported assets of nearly $2.3 billion as of September 30, 2023.

Capital Bank has appointed Jim Witty as the Senior Vice President - Director of Contractor Banking, bringing over 30 years of commercial banking experience to the team. His role will focus on leading strategic initiatives and fostering relationships within the contractor banking sector.

Capital Bank appoints Todd Warren as Senior Vice President and Market Executive for Greater Chesapeake and Baltimore regions. Warren brings 26 years of banking experience to lead C&I teams and support growth initiatives. His community involvement and proven track record make him a valuable addition to the bank.