CBNK · Capital Bancorp, Inc.

Capital Bancorp, Inc. reported a decline in profitability for the first quarter of 2026, with net income falling to $12.0 million from $15.0 million in the prior quarter. The decrease was primarily driven by a $4.6 million increase in noninterest expenses, attributed to strategic investments in personnel, technology, and OpenSky initiatives. Management noted these expenditures are intended to enhance customer experience, back-office efficiency, and support new product introductions. Net interest income decreased slightly to $49.4 million, with the Net Interest Margin compressing 23 basis points to 5.71% due to rate environment impacts on OpenSky. Conversely, fee revenue showed strength, increasing 29.6% annualized to $13.4 million, driven by SBA loan sales and USDA volume. Balance sheet growth remained robust, with gross loans increasing 9.2% annualized to $3.026 billion and total deposits surging 26.1% annualized to $3.292 billion, significantly aided by customer deposit growth. The company maintained strong capital returns, repurchasing $3.5 million of common stock and declaring a $0.12 per share dividend. Management expressed optimism regarding the strategic investments' ability to support long-term growth, despite the short-term impact on returns.