AI-extracted from the 10-Q filed 2026-08-07 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Capital Bancorp reported net income of $14.3M in Q2 2026, up 8.5% YoY, with net interest income growth of 6.9% to $50.9M driven by organic loan growth and OpenSky unsecured card expansion.
Biggest Revenue Drivers
Net Interest Income$50.9M+6.9% YoY
Increased by $3.3M from Commercial Bank organic loan growth and OpenSky unsecured product growth, partially offset by $2.1M higher interest expense.
Noninterest Income$14.4M+9.6% YoY
Driven by $1.7M increase in government loan servicing revenue, $0.9M gain on loan servicing rights, and $0.2M mortgage banking revenue growth.
Biggest Revenue Drivers
Total revenue: $65.3M+7.5% YoY
Net Interest Income$50.9M+6.9% YoY
Increased by $3.3M from Commercial Bank organic loan growth and OpenSky unsecured product growth, partially offset by $2.1M higher interest expense.
Noninterest Income$14.4M+9.6% YoY
Driven by $1.7M increase in government loan servicing revenue, $0.9M gain on loan servicing rights, and $0.2M mortgage banking revenue growth.
Largest Expense Items
Noninterest Expense$43.2M+9.1% YoY
Increases in professional fees (+$1.7M), salaries and benefits (+$1.6M), occupancy and equipment (+$0.9M) offset by decreased merger-related expenses (-$1.4M).
Provision for Credit Losses$3.6M-12.2% YoY
Decreased from prior year primarily due to $3.2M release in C&I reserves, offset by $1.1M increase for OpenSky from unsecured portfolio growth.
Margins: Net interest margin compressed 40 basis points to 5.64% in Q2 2026 from 6.04% in Q2 2025, driven by rate environment impacts on OpenSky yields partially offset by $3.3M organic loan growth. Core net interest margin (non-GAAP) decreased to 4.04% from 4.42%, reflecting the interest rate environment headwind.
Watch Items from the Filing
Nonperforming loans increased $2.6M to $57.0M (1.85% of loans), with one C&I relationship of $21.2M past due; modified and brought current in July 2026 post-quarter end.
Past due loans jumped $26.9M to $120.4M (3.9% of loans) driven by $16.7M C&I increase and $12.6M construction increase, with three construction loans stalled ($9.7M) now in foreclosure.
Net interest margin declined 40 bps YoY; core margin (excluding OpenSky) declined 38 bps, indicating structural margin pressure from rate environment and product mix shift.
Material weakness in internal control over financial reporting remains unresolved; remediation measures implemented but not yet operated for sufficient time to declare remediation complete.
OpenSky unsecured card portfolio grew to $51.2M from $47.1M YoY; charge-offs increased $0.9M to $2.9M in Q2 2026, reflecting higher credit card loss rates of 8.53% annualized.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Mcconnell Marc HDirectorOption exercise · Sep 23, 2026
Schwartz Steven JayDirectorOption exercise · Sep 22, 2026
Como JamesEVP, COO of the BankGrant or award · Jul 20, 2026
About Capital Bancorp Inc (CBNK): stock profile, AI score and financials
Capital Bancorp Inc (CBNK) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores CBNK at 63.6/100 on a composite quality score built from its SEC filings, placing it at rank #608 of 2,925 stocks — the top 25% of the AI-ranked universe. CBNK scores in the top quartile across profitability (83.7), revenue growth (83.0), free cash flow (80.1). Areas of concern include revenue scale (27.1), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), Capital Bancorp Inc reports quarterly revenue of $65.3M, net income of $14.3M, an operating margin of 28.3%. CBNK trades on the Nasdaq exchange and files with the SEC under CIK 1419536. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CBNK daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Capital Bancorp Inc directly from SEC EDGAR.