Highlights

  • Third quarter 2026 net income was $13.1 million, or $0.80 per diluted share, compared with $15.1 million, or $0.89, a year earlier.
  • Under the Peoples Bancorp merger agreement, each Capital Bancorp share converts into 1.11 Peoples shares, an implied value of $43.75.
  • Non-GAAP Core net income was $14.7 million, or $0.89 per diluted share, after excluding $1,577 thousand of merger-related expenses.
  • The board declared a cash dividend of $0.14 per share, payable on November 25, 2026 to shareholders as of November 9, 2026.

Capital Bancorp, Inc. (NASDAQ: CBNK) shares were trading at USD 41.51 on October 27, 2026, down 0.43%, with a relative volume at time of 2.06. The bank holding company announced a definitive merger agreement with Peoples Bancorp, Inc. and a purchase and assumption agreement for its Chicago branch on September 29, 2026, then reported third quarter 2026 results and declared a dividend, furnished in a Form 8-K dated October 26, 2026.

Capital Bancorp is a registered bank holding company incorporated in Maryland, with principal executive offices in Rockville, Maryland. Through its subsidiary Capital Bank, N.A., it has provided financial services since 1999. It operates bank branches in four locations in the Washington, D.C., and Baltimore, Maryland metropolitan markets, and one branch each in Fort Lauderdale, Florida, Chicago, Illinois and Raleigh, North Carolina. Its businesses include the Commercial Bank, OpenSky credit cards and government lending. Total assets were approximately $3.8 billion at September 30, 2026.

Third Quarter 2026 Results

For the quarter ended September 30, 2026, unaudited net income was $13.1 million, compared with $14.3 million in the second quarter of 2026 and $15.1 million in the third quarter of 2025. Diluted earnings per share were $0.80, compared with $0.87 and $0.89. Return on assets was 1.38%, and net interest margin was 5.81%. Core net income, a non-GAAP measure, was $14.7 million, or $0.89 per diluted share.

Net interest income was $53.1 million. The provision for credit losses was $4.9 million. Fee revenue was $15.0 million, which was 22.1% of total revenue. Noninterest expense was $45.7 million and included merger-related expenses. Income tax expense was $4.4 million, and the company said the rate reflected $1.6 million of non-deductible merger costs.

For the nine months ended September 30, 2026, net income was $39.4 million, or $2.40 per diluted share, compared with $42.1 million, or $2.50.

Balance Sheet, Credit and Capital

Gross loans were $3,114 million, and total deposits were $3,319 million, which decreased $52.0 million from the second quarter. Customer deposits, which exclude brokered deposits, were $2,988 million, and the company attributed the decrease to seasonal declines in title business deposits and a $45.2 million reduction tied to a single customer relationship. Brokered time deposits increased $99.9 million.

Net charge-offs were $3.8 million, or 0.49% of portfolio loans on an annualized basis, including $3.2 million from OpenSky loans. The allowance for credit losses coverage ratio was 1.78%. Nonperforming assets were $60.5 million, or 1.59% of total assets, and substandard loans were $71.4 million, or 2.3% of total portfolio loans.

The Common Equity Tier-1 capital ratio was 13.25%, and the Tier 1 leverage ratio was 10.84%. Cash and cash equivalents were $262.0 million, and total available borrowing capacity was $842.6 million.

Merger and Branch Sale

Under the merger agreement announced September 29, 2026, Peoples will acquire Capital Bancorp in an all-stock transaction. Shareholders will receive 1.11 shares of Peoples common stock for each Capital Bancorp share, which the company described as an implied value of $43.75 per share. The transaction is subject to regulatory approvals, shareholder approval and other customary closing conditions. The company suspended its stock repurchase program and does not currently expect to repurchase shares while the transaction is pending.

The purchase and assumption agreement covers the branch in North Riverside, Illinois, subject to regulatory approvals and customary closing conditions. Total deposits included $111.1 million expected to be assumed in the sale, and the company said it would have received a deposit premium of approximately $3.2 million had the sale closed on September 30, 2026.

Outlook

The company did not provide numerical guidance. The pending merger with Peoples and the Chicago branch sale remain subject to the approvals and conditions described above.