Capital Bancorp, Inc. (CBNK) and Integrated Financial Holdings, Inc. jointly announced a definitive merger agreement, in which CBNK will acquire Integrated Financial in a cash and stock transaction valued at $66 million.CBNK shares gained 1.46% following the transaction announcement. The strategic merger between the two companies turned investors bullish on the stock, as it is likely to create synergies, improve competition and increase growth opportunities.Integrated Financial is a financial service holdin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number 001-38671 CAPITAL BANCORP, INC. (Exact name of registrant as specified in its charter) Maryland 52-2083046 (State or other jurisdiction of incorpor ...

ROCKVILLE, Md., Feb. 12, 2024 (GLOBE NEWSWIRE) -- OpenSky®, a division of Capital Bank, N.A., is thrilled to announce their upcoming segment on beloved morning show The Balancing Act®, airing on Lifetime TV February 12th at 7:30am EST + PST. The Balancing Act, hosted by Montel Williams and Olga Villaverde, offers practical solutions to enhance the everyday life of women navigating the everyday challenges of balancing it all. As part of the OpenSky® mission of empowering individuals through access to credit, ...

Capital Bancorp (CBNK) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.84%. A quarter ago, it was expected that this company would post earnings of $0.56 per share when it actually produced earnings of $0.70, delivering a surprise of 25%.Over the last four quarters, the company has ...

Diluted EPS of $0.65, ROAA of 1.63%, and ROAE of 14.44% for 4Q 2023Tangible Book Value Per Share(1) of $18.31 for 4Q 2023 up 15.6% from 4Q 2022Loan Growth of $40.7 million, or 8.7% annualized for 4Q 2023Cash dividend of $0.08 per share declared ROCKVILLE, Md., Jan. 22, 2024 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company") (NASDAQ:CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported net income of $9.0 million, or $0.65 per diluted share, for the fourth quarter 2023, compare ...

| --- | --- | --- | |-----------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|------------------------------------------------| | Maryland \n(State or other jurisdiction of incorporation or organization) \n2275 Research Boulevard | (Exact name of registrant as specified in its charter) \n \nSuite 600 | 52-2083046 \n(IRS Employer Identification No.) | | Rockville | Maryland | 20850 | | | (A ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number 001-38671 | --- | --- | --- | |-----------------------------------------------------------------------------------------------------|---------- ...

[PART I - CONSOLIDATED FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20CONSOLIDATED%20FINANCIAL%20INFORMATION) [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Capital Bancorp, Inc. for the quarter ended March 31, 2023, including key financial figures and the adoption of the CECL accounting standard Consolidated Balance Sheet Highlights (as of March 31, 2023 vs. Dec 31, 2022) | Metric | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$2,245,286** | **$2,123,655** | | Total Portfolio Loans, net | $1,759,893 | $1,702,207 | | **Total Liabilities** | **$2,010,769** | **$1,899,640** | | Total Deposits | $1,944,374 | $1,758,072 | | **Total Stockholders' Equity** | **$234,517** | **$224,015** | Consolidated Income Statement Highlights (Q1 2023 vs. Q1 2022) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $34,487 | $33,331 | | Provision for Credit Losses | $1,660 | $952 | | Noninterest Income | $6,026 | $8,288 | | Noninterest Expense | $26,203 | $27,102 | | **Net Income** | **$9,735** | **$10,211** | | **Diluted EPS** | **$0.68** | **$0.71** | - Net cash provided by operating activities was **$10.4 million**, while investing activities used **$58.7 million**, primarily for net increases in portfolio loans. Financing activities provided **$108.3 million**, driven by a significant increase in deposits[17](index=17&type=chunk)[18](index=18&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including the CECL standard adoption, its impact on ACL and retained earnings, and breakdowns of business segments, loan portfolio, investment securities, and fair value measurements - The company operates through Capital Bank, N.A., focusing on commercial, real estate, and credit card loans. It also originates residential mortgages via Capital Bank Home Loans (CBHL) and issues nationwide credit cards through its OpenSky platform[19](index=19&type=chunk) - The company adopted the CECL standard (ASU 2016-13) on January 1, 2023. The adoption resulted in an **$804 thousand increase** in the ACL and a **$775 thousand reduction** to the reserve for unfunded commitments, leading to a net decrease of **$29 thousand** in retained earnings[34](index=34&type=chunk)[42](index=42&type=chunk) Portfolio Loan Composition (March 31, 2023) | Loan Category | Amount (in thousands) | Percent of Total | | :--- | :--- | :--- | | Commercial Real Estate | $660,218 | 37% | | Residential Real Estate | $545,899 | 31% | | Construction | $251,494 | 14% | | Commercial and Industrial | $221,258 | 12% | | Credit Card | $112,860 | 6% | | **Total Gross Loans** | **$1,793,307** | **100%** | - The Allowance for Credit Losses (ACL) was **$26.2 million** at March 31, 2023. The provision for credit losses for Q1 2023 was **$1.7 million**, with net charge-offs of **$2.6 million**, primarily from the credit card portfolio (**$1.7 million**) and commercial real estate (**$0.9 million**)[121](index=121&type=chunk)[90](index=90&type=chunk)[95](index=95&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial performance, highlighting a net income decrease due to lower noninterest income and higher interest expenses, while covering financial condition, loan and deposit growth, and capital positions [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Q1 2023 net income decreased 4.7% to $9.7 million, with net interest income growing 3.5% despite margin compression, while noninterest income fell due to reduced credit card and mortgage banking revenue, and noninterest expense decreased 3.3% Q1 2023 vs. Q1 2022 Performance Summary | Metric | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Net Income | $9.7M | $10.2M | (4.7)% | | Diluted EPS | $0.68 | $0.71 | (4.2)% | | Net Interest Income | $34.5M | $33.3M | 3.5% | | Noninterest Income | $6.0M | $8.3M | (27.3)% | | Noninterest Expense | $26.2M | $27.1M | (3.3)% | - The net interest margin decreased **14 basis points** YoY to **6.65%**, as the average cost of interest-bearing liabilities rose **251 basis points**, outpacing the **136 basis point** increase in the average yield on interest-earning assets[290](index=290&type=chunk) - Noninterest income fell primarily due to a **$1.7 million decrease** in credit card fees from fewer active OpenSky® accounts and a **$634 thousand decrease** in mortgage banking revenue as originations dropped **63.5%** in a rising rate environment[98](index=98&type=chunk)[99](index=99&type=chunk)[170](index=170&type=chunk) - The provision for credit losses increased to **$1.7 million** from **$952 thousand** YoY, driven by portfolio loan growth and higher credit card charge-offs[94](index=94&type=chunk) [Financial Condition](index=49&type=section&id=Financial%20Condition) As of March 31, 2023, total assets reached $2.25 billion, a 5.8% increase year-over-year, fueled by a 17.0% growth in net portfolio loans to $1.8 billion. Total deposits grew 4.4% to $1.94 billion. The company's uninsured deposits were estimated at 43.4% of total deposits. The company reduced total borrowings during the quarter and maintained a strong liquidity position with significant available capacity from the FHLB and the Federal Reserve's Bank Term Funding Program (BTFP). The Bank remains well-capitalized, with a Tier 1 leverage ratio of 9.78% Financial Condition Highlights (as of March 31, 2023) | Metric | March 31, 2023 | March 31, 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Assets | $2.25B | $2.12B | 5.8% | | Portfolio Loans, net | $1.79B | $1.53B | 17.0% | | Total Deposits | $1.94B | $1.86B | 4.4% | | Total Stockholders' Equity | $234.5M | $201.5M | 16.4% | - As of March 31, 2023, approximately **$844.4 million**, or **43.4%** of the deposit portfolio, was uninsured[305](index=305&type=chunk) - The company maintains a strong liquidity position with available borrowing capacity of **$331.3 million** from the FHLB, **$21.9 million** from the Federal Reserve discount window, and **$150.0 million** from the Bank Term Funding Program (BTFP)[340](index=340&type=chunk)[296](index=296&type=chunk) - The Bank was classified as "well capitalized" with a Tier 1 leverage ratio of **9.78%** and a total capital ratio of **14.06%** as of March 31, 2023[297](index=297&type=chunk)[344](index=344&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate volatility, managed by its Asset/Liability Management Committee (ALCO). The balance sheet is asset-sensitive for maturities under one year, suggesting that net interest income would generally benefit from rising interest rates. An Earnings at Risk (EAR) simulation indicates a +100 basis point rate shock would increase net interest income by 2.6% over 12 months, while a -100 basis point shock would decrease it by 1.7% - The company is asset-sensitive in the short term, with a positive cumulative gap of **$787.3 million** for assets and liabilities repricing or maturing within one year. This indicates that rising interest rates would generally have a positive effect on net interest income[352](index=352&type=chunk)[353](index=353&type=chunk) Impact on Net Interest Income from Parallel Interest Rate Shocks (as of March 31, 2023) | Rate Change Scenario | Estimated Change in NII (12-Month Horizon) | | :--- | :--- | | +300 bps | +9.7% | | +200 bps | +6.2% | | +100 bps | +2.6% | | -100 bps | (1.7)% | | -200 bps | (3.4)% | | -300 bps | (5.0)% | - An Economic Value of Equity (EVE) analysis shows that a **-100 bps** rate shock would decrease EVE by **1.8%**, while a **+100 bps** shock would increase it by **0.4%**, indicating modest long-term capital risk from rate changes[374](index=374&type=chunk)[330](index=330&type=chunk) [Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2023. During the quarter, the company enhanced its internal controls over financial reporting by creating an Allowance for Credit Loss (ACL) governance committee and moving the Loan Review function under the management of the Bank's Chief Risk Officer - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[405](index=405&type=chunk) - During Q1 2023, the company implemented changes to enhance internal controls related to the allowance for credit loss, including establishing a new governance committee and reorganizing the Loan Review function[300](index=300&type=chunk) [PART II - OTHER INFORMATION](index=64&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any material legal proceedings - The company is not presently a party to any material legal proceedings[377](index=377&type=chunk) [Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) The company highlights a significant new risk factor related to recent adverse developments in the banking industry, such as high-profile bank failures. These events have eroded customer confidence and created market volatility, which could materially and adversely affect the company's liquidity, funding costs, results of operations, and stock price - A new risk factor was identified concerning the impact of recent high-profile bank failures, which have eroded customer confidence and could negatively affect the company's liquidity, cost of funding, and overall financial results[359](index=359&type=chunk)[378](index=378&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of its stock during Q1 2023. Under its stock repurchase program, the company bought back 146,937 shares for a total of $2.7 million. As of March 31, 2023, approximately $7.3 million remained authorized for future repurchases - There were no unregistered sales of the Company's stock during the first quarter of 2023[360](index=360&type=chunk) Common Stock Repurchases in Q1 2023 | Period | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Feb 2023 | 42,794 | $20.86 | | Mar 2023 | 104,143 | $17.51 | | **Total** | **146,937** | **$18.48** | [Defaults upon Senior Securities](index=66&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reports that there were no defaults upon its senior securities during the period - None[382](index=382&type=chunk) [Mine Safety Disclosures](index=66&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[363](index=363&type=chunk) [Other Information](index=66&type=section&id=Item%205.%20Other%20Information) The company reports no information for this item - None[364](index=364&type=chunk) [Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q. Key exhibits include amendments to employment agreements for executives Steven Poynot and Scot R. Browning, certifications by the Principal Executive Officer and Principal Financial Officer, and the financial statements formatted in XBRL - The filing includes amendments to executive employment agreements, required CEO/CFO certifications (Rule 13a-14(a) and Section 1350), and interactive data files (XBRL)[332](index=332&type=chunk)

SUPERVISION AND REGULATION We are extensively regulated under both federal and state law. These laws restrict permissible activities and investments and require compliance with various consumer protection provisions applicable to lending, deposit, brokerage and fiduciary activities. They also impose capital adequacy requirements and conditions on a bank holding company's ("BHC") ability to repurchase stock or to receive dividends from its subsidiary banks. We are subject to comprehensive examination and sup ...

Financial Performance - Net income for the three months ended September 30, 2022 was $11.1 million, a decrease of 0.7% compared to $11.2 million for the same period in 2021[184]. - For the nine months ended September 30, 2022, net income was $32.8 million, an increase of approximately $3.0 million, or 10.1%, from $29.8 million for the same period in 2021[185]. - Noninterest income decreased by $5.5 million, or 43.6%, to $7.1 million, primarily due to a reduction in mortgage banking revenue and credit card fees[184]. - Noninterest income for the nine months ended September 30, 2022, was $23.8 million, a decrease of $16.2 million, or 40.5% from the same period in 2021, primarily due to a reduction in mortgage banking revenues[216]. Interest Income and Expenses - Net interest income increased by $4.6 million, or 14.4%, to $36.7 million for the three months ended September 30, 2022, primarily due to an increase in interest earned on portfolio loans[184]. - Net interest income for the nine months ended September 30, 2022 increased by $21.4 million compared to the prior year[185]. - Noninterest expenses for the three months ended September 30, 2022 were $28.1 million, a decrease of 1.9% from $28.6 million in the prior year[184]. - Noninterest expense for the nine months ended September 30, 2022, was $82.4 million, an increase of $808 thousand, or 1.0%, primarily due to a 14.1% increase in salaries and benefits[187]. Loan Loss Provisions - Provision for loan losses increased by 88.0% to $4.2 million for the nine months ended September 30, 2022[185]. - The provision for loan losses increased by $2.0 million, primarily related to the credit card portfolio[187]. - Provision for loan losses for Q3 2022 was $1.3 million, reflecting growth in certain segments of the credit card portfolio[206]. - The allowance for loan losses as a percentage of portfolio loans was 1.58% as of September 30, 2022, down from 1.65% at December 31, 2021[209]. Asset and Liability Management - Total assets as of September 30, 2022, were $2.049 billion, a decrease from $2.085 billion as of September 30, 2021[195]. - Average interest-earning assets decreased by $15.2 million, or 0.8%, to $2.0 billion compared to the same period in 2021, while the average yield on interest-earning assets increased by 100 basis points[196]. - Average interest-bearing liabilities decreased by $85.5 million, or 7.8%, while the average cost of interest-bearing liabilities increased by 13 basis points to 0.66%[196]. - The cumulative gap ratio to total earning assets was 50.28%, indicating a strong asset-liability management position[316]. Capital and Equity - The Bank exceeded all capital requirements and is considered well-capitalized as of September 30, 2022[181]. - Stockholders' equity increased by $16.1 million compared to December 31, 2021, primarily due to a year-to-date net income of $32.8 million for 2022, offset by a $16.5 million unrealized loss in available-for-sale securities[285]. - The average common equity to average assets ratio improved to 10.19% as of September 30, 2022, up from 8.82% at December 31, 2021[286]. - The company was classified as "well capitalized" under regulatory capital requirements as of September 30, 2022, with Tier 1 leverage ratio at 11.31% and total capital ratio at 17.41%[291][294]. Credit Quality and Risk Management - The Company maintains a disciplined lending approach to manage nonperforming assets and ensure sound asset quality[240]. - The total allowance for loan losses is based on historical loan loss rates and current economic conditions[252]. - The Company monitors delinquency levels and has established underwriting guidelines to maintain loan portfolio quality[240]. - The credit card portfolio had an allowance for loan losses of 4.06% as of September 30, 2022[253]. Deposits and Liquidity - Deposits as of September 30, 2022, totaled $1,788,428,000, with a noninterest-bearing demand account balance of $797,660,000[266]. - Approximately $960.2 million or 55.3% of the deposit portfolio was uninsured as of September 30, 2022[271]. - The company’s liquidity resources are deemed sufficient to fund loans and meet cash needs as necessary[283]. - The company expects funds to be available from core deposit base, loan repayments, and investment security cash flows[282]. Interest Rate Risk Management - The company’s exposure to interest rate risk is managed by the Asset/Liability Management Committee, which regularly reviews the sensitivity of assets and liabilities to interest rate changes[312]. - The company does not engage in leveraged derivatives or financial options to reduce interest rate risk, focusing instead on managing its balance sheet[311]. - Earnings at Risk (EAR) analysis showed a potential decrease in net interest income of 5.5% under a -300 bps interest rate shock scenario[321]. - Economic Value of Equity (EVE) analysis indicated an 8.1% decrease under a -300 bps interest rate shock scenario[323].