The net interest margin for CBNK reached 6.05% in the first quarter, marking an 18 basis point rise from the previous quarter, although it represents a 19 basis point decline compared to the same period last year. This fluctuation is attributed to the integration of commercial loans from IFH, which somewhat offset the effects from OpenSky.
CEO Ed Barry highlighted the continued momentum from 2024, emphasizing the strengthened and diversified position of CBNK following the IFH acquisition. He credited the management and staff for successfully integrating IFH and expressed optimism about achieving the company's growth targets in 2025.
Chairman Steven Schwartz noted the quarter's record GAAP earnings per share, increased net interest margin, and robust growth in loans and deposits. He asserted that these elements, in conjunction with a strong return on tangible equity, demonstrate CBNK's solid growth trajectory. However, Schwartz also mentioned the need to remain vigilant about potential impacts from new governmental policies, particularly regarding interest rates, pricing volatility, and economic uncertainty.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Capital Bancorp Inc (CBNK, Financial) is $34.25 with a high estimate of $36.00 and a low estimate of $33.00. The average target implies an upside of 21.11% from the current price of $28.28. More detailed estimate data can be found on the Capital Bancorp Inc (CBNK) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Capital Bancorp Inc's (CBNK, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Capital Bancorp Inc (CBNK, Financial) in one year is $27.20, suggesting a downside of 3.82% from the current price of $28.28. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Capital Bancorp Inc (CBNK) Summary page.
