Capital Bancorp, Inc.

What they do

Capital Bancorp operates through its wholly owned subsidiaries, primarily Capital Bank, N.A., providing commercial banking services including commercial real estate, commercial and industrial loans, and a credit card division. The company also has non-bank subsidiaries, Church Street Capital and Windsor Advantage, which support its strategic initiatives. As of June 30, 2026, it held $3.89 billion in total assets and $422.2 million in shareholder equity.

Revenue drivers

• Commercial Bank segment — Generates net interest income from commercial loans, including commercial real estate, C&I, and owner-occupied commercial loans. For 2025, this segment reported a net interest margin of 4.38%, with average interest-earning assets of $3.1 billion.
• OpenSky credit card platform — A unsecured and secured credit card business contributing to net interest income and fee income. Growth in the unsecured card portfolio drove higher provision expense in 2025, and net charge-offs from OpenSky were $5.4 million for unsecured cards and $1.6 million for secured cards.
• Customer deposits and fee income — Customer deposits (excluding brokered) grew 17.6% year-over-year to $3.14 billion in 2Q26, supporting balance sheet growth. The company also highlights diversified fee income generation from its card and commercial operations.

Recent performance

Net income for 2025 was $57.2 million, up 84.6% from 2024, boosted by the IFH acquisition and organic growth. Diluted EPS rose to $3.41 from $2.12. In 2Q26, the company reported GAAP net income of $14.3 million, or $0.87 per diluted share, and net interest margin of 5.64% (including card). Tangible book value per share increased to $23.45, up 13.6% year-over-year. Net charge-offs for 2025 were $12.4 million, or 0.45% of average portfolio loans.

Strategy

Management is focused on organic growth in commercial lending and its targeted C&I verticals, along with the expansion of the unsecured card platform. They are investing in customer-facing and back-office technology infrastructure to reduce cyber risks and improve efficiency. The company also completed the acquisition of Integrated Financial Holdings (IFH) in 2025, which contributed to growth and deposit diversification. Management continues to monitor and control growth to maintain regulatory capital compliance, with the bank well capitalized as of December 31, 2025.

Risks

• Concentration in certain geographies — The business is concentrated in specific markets, and changes in economic or political conditions there, including federal workforce reductions, could affect results.
• Interest rate risk — Earnings are sensitive to changes in interest rates, which can impact net interest margin and loan yields; the NIM declined 40 bps year-over-year to 5.64% in 2Q26.
• Credit losses on unsecured cards — Growth in the OpenSky unsecured portfolio increases credit risk; net charge-offs in 2025 included $5.4 million from unsecured cards.
• Integration and execution risk from acquisitions — Failure to achieve expected revenue growth or expense savings from the IFH acquisition could adversely affect financial performance.

Outlook

Management did not provide specific forward guidance, but stated investments in strategic initiatives will continue. They expect the growth in non-interest expenses to persist as they expand the unsecured card platform and technology infrastructure. The company intends to monitor capital levels and growth relative to earnings to remain well capitalized. Forward-looking statements cite risks such as changes in the interest rate environment and economic conditions.