Parent Company Financial Information (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Financial Statements

The balance sheets as of December 31, 2021 and 2020 and statements of income and cash flows for the years then ended, for Capital Bancorp, Inc. (Parent only) are presented below.


Parent Company Only Balance Sheets

(in thousands)						2021						2020
Assets
Cash and cash equivalents						$	630					$	2,777
Investment in Bank						168,308						137,244
Investment in Church Street Capital						4,607						4,161
Investment in Trust						62						62
Loans receivable, net of allowance for loan losses of $328 and $258 at December 31, 2021 and 2020, respectively						36,198						26,999
Accrued interest receivable						217						300


Deferred income taxes						100						86
Other assets						14						—
Total assets						$	210,136					$	171,629

Liabilities and Stockholders’ Equity
Borrowed funds						$	12,062					$	12,062
Accrued interest payable						44						43
Other liabilities						127						213
Total liabilities						12,233						12,318
Stockholders’ equity
Common stock						140						138
Additional paid-in capital						54,306						50,602
Retained earnings						144,533						106,854
Accumulated other comprehensive income (loss)						(1,076)						1,717
Total stockholders’ equity						197,903						159,311
Total liabilities and stockholders’ equity						$	210,136					$	171,629


Parent Company Only Statements of Income

(in thousands)						2021						2020
Interest and dividend income						$	1,663					$	1,662
Dividend from Bank						6,500						5,500
Total interest and dividend revenue						8,163						7,162
Interest expense						542						1,095
Net interest income						7,621						6,067
Provision for loan losses						70						—
Net interest income after provision for loan losses						7,551						6,067
Noninterest income						2						3
Noninterest expenses						393						334
Income before income taxes						7,160						5,736
Income tax expense						138						50
Income before undistributed net income of subsidiaries						7,022						5,686
Undistributed net income of subsidiaries						32,956						20,137
Net income						$	39,978					$	25,823

Note 16 - Parent Company Financial Information (continued)


Parent Company Only Statements of Cash Flows
(in thousands)			2021						2020
Cash flows from operating activities
Net Income			$	39,978					$	25,823
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses			70						—
Undistributed net income of subsidiaries			(32,956)						(20,137)
Decrease in receivable from Bank			—						16
Stock-based compensation expense			1,347						983
Director and employee compensation paid in Company stock			519						268
Deferred income tax benefit			(14)						(21)
Amortization of debt issuance costs			—						139
Changes in assets and liabilities:
Accrued interest receivable			83						(202)
Prepaid income taxes			—						9
Other assets			(14)						—
Accrued interest payable			1						(39)
Other liabilities			(130)						(17)
Net cash provided by operating activities			8,884						6,822

Cash flows from investing activities
Net increase in loans receivable			(9,269)						1,045
Capital contributions to subsidiaries			(1,347)						(1,183)
Net cash provided by investing activities			(10,616)						(138)

Cash flows from financing activities
Repayment of debt			—						(3,500)
Dividends paid			(1,382)						—
Repurchase of common stock			—						(3,720)
Proceeds from exercise of stock options			967						922


Net cash provided used in financing activities			(415)						(6,298)

Net increase (decrease) in cash and cash equivalents			(2,147)						386

Cash and cash equivalents, beginning of year			2,777						2,391

Cash and cash equivalents, end of year			$	630					$	2,777