Capital Bancorp Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Capital Bancorp Inc. has submitted its 2023 annual report (10-K), detailing financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Capital Bancorp Inc (CBNK) filed a Annual Report (10-K) with the SEC on March 15, 2024. Capital Bancorp Inc. filed its 2023 Form 10-K on March 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Maryland and operates under SIC code 6021 (National Commercial Banks). Key financial data points and segment information are included in the report. The report details financial activities and balances for the fiscal years 2022 and 2023.

Why It Matters

For investors and stakeholders tracking Capital Bancorp Inc, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Capital Bancorp's financial health, operational performance, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess the company's trajectory. The detailed financial statements and disclosures within the report are essential for understanding the bank's asset base, liabilities, equity, and profitability, informing investment decisions and regulatory oversight.

Risk Assessment

Risk Level: medium — Capital Bancorp Inc shows moderate risk based on this filing. The filing is a standard 10-K for a publicly traded bank, which inherently carries medium risk due to the regulated nature of the banking industry and the potential for economic fluctuations impacting financial institutions.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Capital Bancorp's performance and outlook in the current economic environment.

Key Numbers

• 2023-12-31 — Fiscal Year End (The report covers the period ending on this date.)
• 2024-03-15 — Filing Date (The date the 10-K was officially filed with the SEC.)
• 6021 — SIC Code (Standard Industrial Classification for National Commercial Banks.)

Key Players & Entities

• Capital Bancorp Inc. (company) — Filer of the 10-K report.
• CBNK (company) — Ticker symbol for Capital Bancorp Inc.
• 2023-12-31 (date) — Fiscal year end date covered by the report.
• 2024-03-15 (date) — Filing date of the 10-K report.
• Maryland (location) — State of incorporation for Capital Bancorp Inc.
• Rockville (location) — City where Capital Bancorp Inc. is headquartered.

FAQ

Industry Context

Capital Bancorp Inc. operates within the National Commercial Banks industry (SIC 6021), a sector characterized by its sensitivity to interest rates, economic conditions, and regulatory oversight.

Regulatory Implications

As a commercial bank, Capital Bancorp Inc. is subject to extensive regulation by federal and state authorities, including the Federal Reserve and state banking departments, to ensure financial stability and consumer protection.

What Investors Should Do

1. Analyze the detailed financial statements for revenue, net income, and asset growth.
2. Review any disclosed risk factors related to market conditions or operational challenges.
3. Compare key financial metrics to previous fiscal years to identify trends.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-15: 10-K Filing Date — Official submission date of the annual report to the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K for the fiscal year 2023, providing a comprehensive update compared to previous filings which would have covered earlier periods.

Key Financial Figures

• $0.01 — ich Registered Common Stock, par value $0.01 per share CBNK The NASDAQ Stock Market,
• $200 — ds require a minimum initial deposit of $200 and permit maximum initial deposits of
• $3,000 — and permit maximum initial deposits of $3,000 per card and $10,000 per individual. Th
• $10,000 — initial deposits of $3,000 per card and $10,000 per individual. This business line focu

Filing Documents

• cbnk-20231231.htm (10-K) — 3683KB
• ex-1072017stockandincentiv.htm (EX-10.7) — 38KB
• ex-108formofrsuawardagreem.htm (EX-10.8) — 37KB
• ex-1010amendmenttobrowni.htm (EX-10.10) — 1KB
• ex-1012cbnknonqualifiedd.htm (EX-10.12) — 46KB
• ex-1015amendmenttopoynot.htm (EX-10.15) — 1KB
• ex231consentofelliottdavis.htm (EX-23.1) — 2KB
• ex311certofceo10-k2023.htm (EX-31.1) — 9KB
• ex312certofcfo10-k2023.htm (EX-31.2) — 9KB
• ex32certofsox10-k2023.htm (EX-32.1) — 6KB
• ex-971cbnkxincentivecompen.htm (EX-97.1) — 21KB
• ex-1010amendmenttobrowni001.jpg (GRAPHIC) — 208KB
• ex-1010amendmenttobrowni002.jpg (GRAPHIC) — 68KB
• ex-1012cbnknonqualifiedd001.jpg (GRAPHIC) — 38KB
• ex-1012cbnknonqualifiedd002.jpg (GRAPHIC) — 211KB
• ex-1012cbnknonqualifiedd003.jpg (GRAPHIC) — 91KB
• ex-1012cbnknonqualifiedd004.jpg (GRAPHIC) — 219KB
• ex-1012cbnknonqualifiedd005.jpg (GRAPHIC) — 222KB
• ex-1012cbnknonqualifiedd006.jpg (GRAPHIC) — 220KB
• ex-1012cbnknonqualifiedd007.jpg (GRAPHIC) — 251KB
• ex-1012cbnknonqualifiedd008.jpg (GRAPHIC) — 303KB
• ex-1012cbnknonqualifiedd009.jpg (GRAPHIC) — 281KB
• ex-1012cbnknonqualifiedd010.jpg (GRAPHIC) — 271KB
• ex-1012cbnknonqualifiedd011.jpg (GRAPHIC) — 267KB
• ex-1012cbnknonqualifiedd012.jpg (GRAPHIC) — 63KB
• ex-1012cbnknonqualifiedd013.jpg (GRAPHIC) — 111KB
• ex-1015amendmenttopoynot001.jpg (GRAPHIC) — 229KB
• ex-1015amendmenttopoynot002.jpg (GRAPHIC) — 63KB
• 0001628280-24-011467.txt (&nbsp;) — 22272KB
• cbnk-20231231.xsd (EX-101.SCH) — 72KB
• cbnk-20231231_cal.xml (EX-101.CAL) — 130KB
• cbnk-20231231_def.xml (EX-101.DEF) — 530KB
• cbnk-20231231_lab.xml (EX-101.LAB) — 1011KB
• cbnk-20231231_pre.xml (EX-101.PRE) — 804KB
• cbnk-20231231_htm.xml (XML) — 3638KB

Risk Factors 15

Item 1A. Risk Factors 15

Unresolved Staff Comments 30

Item 1B. Unresolved Staff Comments 30

Cybersecurity 30

Item 1C. Cybersecurity 30

Properties 32

Item 2. Properties 32

Legal Proceedings 33

Item 3. Legal Proceedings 33

Mine Safety Disclosures 33

Item 4. Mine Safety Disclosures 33 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34

[Reserved] 35

Item 6 [Reserved] 35

Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures about Market Risk 65

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 65

Financial Statements and Supplementary Data 68

Item 8. Financial Statements and Supplementary Data 68

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 122

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 122

Controls and Procedures 122

Item 9A. Controls and Procedures 122

Other Information 123

Item 9B. Other Information 123

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 123

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 123 PART III

Directors, Executive Officers and Corporate Governance 123

Item 10. Directors, Executive Officers and Corporate Governance 123

Executive Compensation 123

Item 11. Executive Compensation 123

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 123

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 123

Certain Relationships and Related Transactions and Director Independence 123

Item 13. Certain Relationships and Related Transactions and Director Independence 123

Principal Accountant Fees and Services 124

Item 14. Principal Accountant Fees and Services 124 PART IV

Exhibits and Financial Statement Schedules 125

Item 15. Exhibits and Financial Statement Schedules 125

Form 10-K Summary 125

Item 16. Form 10-K Summary 125 SIGNATURES 127 2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOR STATEMENT This Annual Report on Form 10-K and oral statements made from time-to-time by our representatives contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. You should not place undue reliance on such statements because they are subject to numerous risks and uncertainties relating to our operations and the business environment in which we operate, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy, expectations, beliefs, projections, anticipated events or trends, growth prospects, financial performance, and similar expressions concerning matters that are not historical facts. These statements often include words such as "may," "believe," "expect," "anticipate," "potential," "opportunity," "intend," "endeavor," "plan," "estimate," "could," "project," "seek," "should," "will," or "would," or the negative of these words and phrases or similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: General Economic Conditions economic conditions (including the interest rate environment, government economic and monetary policies, the strength of global financial markets and inflation/deflation) that impact the financial services industry as a whole and/or our business; adverse developments in the banking industry such as, for example, by high-profile bank failures and the potential impact of such developments on customer confidence,

BUSINESS

ITEM 1. BUSINESS We are Capital Bancorp, Inc., a bank holding company and a Maryland corporation established in 1998, operating primarily through our wholly owned subsidiary, Capital Bank, N.A., a commercial-focused community bank based in the Washington, D.C. and Baltimore metropolitan areas. We serve businesses, not-for-profit associations and entrepreneurs throughout the region. Capital Bank is headquartered in Rockville, Maryland and operates a branch-lite model through four commercial bank branches, one mortgage office and two loan production offices. Capital Bank currently operates three divisions: Commercial Banking, Capital Bank Home Loans, and OpenSky . Our Commercial Banking division operates primarily in the Washington, D.C. and Baltimore metropolitan areas and focuses on providing personalized service to commercial clients throughout our area of operations. Capital Bank Home Loans and OpenSky both leverage Capital Bank's national banking charter to operate as national consumer business lines; Capital Bank Home Loans acts as our residential mortgage origination platform and OpenSky provides nationwide, digitally-based, unsecured 5 credit cards as well as secured credit cards to under-banked populations and those looking to rebuild their credit scores. In addition to the three divisions of Capital Bank, Church Street Capital also operates as a wholly owned subsidiary of Capital Bancorp, Inc. CSC originates and services a portfolio of primarily mezzanine loans with certain characteristics that do not meet Capital Bank's general underwriting standards, but command a higher rate of return. In addition to its subsidiaries discussed above, Capital Bank, N.A. and Church Street Capital, Capital Bancorp, Inc. owns all of the stock of Capital Bancorp (MD) Statutory Trust I (the "Trust"). The Trust is a special purpose non-consolidated entity organized for the sole purpose of issuing trust preferred securities. Commercial Banking Division The Commercial Ba

View Full Filing

View this 10-K filing on SEC EDGAR