cbnk-20210930
P2YP5Y1us-gaap:PropertyPlantAndEquipmentNetus-gaap:PropertyPlantAndEquipmentNet16us-gaap:OtherLiabilitiesus-gaap:OtherLiabilitiesfalse2021Q3000141953612/3100014195362021-01-012021-09-30xbrli:shares00014195362021-11-05iso4217:USD00014195362021-09-3000014195362020-12-31iso4217:USDxbrli:shares00014195362021-07-012021-09-3000014195362020-07-012020-09-3000014195362020-01-012020-09-300001419536us-gaap:BankServicingMember2021-07-012021-09-300001419536us-gaap:BankServicingMember2020-07-012020-09-300001419536us-gaap:BankServicingMember2021-01-012021-09-300001419536us-gaap:BankServicingMember2020-01-012020-09-300001419536us-gaap:CreditCardMember2021-07-012021-09-300001419536us-gaap:CreditCardMember2020-07-012020-09-300001419536us-gaap:CreditCardMember2021-01-012021-09-300001419536us-gaap:CreditCardMember2020-01-012020-09-300001419536us-gaap:MortgageBankingMember2021-07-012021-09-300001419536us-gaap:MortgageBankingMember2020-07-012020-09-300001419536us-gaap:MortgageBankingMember2021-01-012021-09-300001419536us-gaap:MortgageBankingMember2020-01-012020-09-300001419536us-gaap:CommonStockMember2019-12-310001419536us-gaap:AdditionalPaidInCapitalMember2019-12-310001419536us-gaap:RetainedEarningsMember2019-12-310001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-3100014195362019-12-310001419536us-gaap:RetainedEarningsMember2020-01-012020-03-3100014195362020-01-012020-03-310001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001419536us-gaap:CommonStockMember2020-01-012020-03-310001419536us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001419536us-gaap:CommonStockMember2020-03-310001419536us-gaap:AdditionalPaidInCapitalMember2020-03-310001419536us-gaap:RetainedEarningsMember2020-03-310001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100014195362020-03-310001419536us-gaap:RetainedEarningsMember2020-04-012020-06-3000014195362020-04-012020-06-300001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001419536us-gaap:CommonStockMember2020-04-012020-06-300001419536us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001419536us-gaap:CommonStockMember2020-06-300001419536us-gaap:AdditionalPaidInCapitalMember2020-06-300001419536us-gaap:RetainedEarningsMember2020-06-300001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000014195362020-06-300001419536us-gaap:RetainedEarningsMember2020-07-012020-09-300001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001419536us-gaap:CommonStockMember2020-07-012020-09-300001419536us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001419536us-gaap:CommonStockMember2020-09-300001419536us-gaap:AdditionalPaidInCapitalMember2020-09-300001419536us-gaap:RetainedEarningsMember2020-09-300001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-3000014195362020-09-300001419536us-gaap:CommonStockMember2020-12-310001419536us-gaap:AdditionalPaidInCapitalMember2020-12-310001419536us-gaap:RetainedEarningsMember2020-12-310001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001419536us-gaap:RetainedEarningsMember2021-01-012021-03-3100014195362021-01-012021-03-310001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001419536us-gaap:CommonStockMember2021-01-012021-03-310001419536us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001419536us-gaap:CommonStockMember2021-03-310001419536us-gaap:AdditionalPaidInCapitalMember2021-03-310001419536us-gaap:RetainedEarningsMember2021-03-310001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100014195362021-03-310001419536us-gaap:RetainedEarningsMember2021-04-012021-06-3000014195362021-04-012021-06-300001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001419536us-gaap:CommonStockMember2021-04-012021-06-300001419536us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001419536us-gaap:CommonStockMember2021-06-300001419536us-gaap:AdditionalPaidInCapitalMember2021-06-300001419536us-gaap:RetainedEarningsMember2021-06-300001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000014195362021-06-300001419536us-gaap:RetainedEarningsMember2021-07-012021-09-300001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001419536us-gaap:CommonStockMember2021-07-012021-09-300001419536us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001419536us-gaap:CommonStockMember2021-09-300001419536us-gaap:AdditionalPaidInCapitalMember2021-09-300001419536us-gaap:RetainedEarningsMember2021-09-300001419536us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001419536cbnk:ChurchStreetCapitalMember2021-09-30cbnk:segment0001419536cbnk:PaycheckProtectionProgramMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001419536cbnk:PaycheckProtectionProgramMemberus-gaap:CommercialPortfolioSegmentMember2021-07-012021-09-300001419536cbnk:PaycheckProtectionProgramMemberus-gaap:CommercialPortfolioSegmentMember2021-01-012021-09-300001419536cbnk:PremisesAndEquipmentMembersrt:MinimumMember2021-01-012021-09-300001419536srt:MaximumMembercbnk:PremisesAndEquipmentMember2021-01-012021-09-300001419536us-gaap:LeaseholdImprovementsMember2021-01-012021-09-300001419536us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001419536us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001419536us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-09-300001419536us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001419536us-gaap:USTreasurySecuritiesMember2021-09-300001419536us-gaap:MunicipalBondsMember2021-09-300001419536us-gaap:CorporateDebtSecuritiesMember2021-09-300001419536us-gaap:AssetBackedSecuritiesMember2021-09-300001419536us-gaap:MortgageBackedSecuritiesMember2021-09-300001419536us-gaap:MunicipalBondsMember2020-12-310001419536us-gaap:CorporateDebtSecuritiesMember2020-12-310001419536us-gaap:AssetBackedSecuritiesMember2020-12-310001419536us-gaap:MortgageBackedSecuritiesMember2020-12-31cbnk:security0001419536us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FederalHomeLoanBankAdvancesMember2021-09-300001419536us-gaap:FederalHomeLoanBankAdvancesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001419536us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FederalHomeLoanBankAdvancesMember2020-12-310001419536us-gaap:FederalHomeLoanBankAdvancesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001419536cbnk:PaycheckProtectionProgramMember2021-01-012021-09-300001419536cbnk:PaycheckProtectionProgramMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2020-12-310001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2021-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2020-12-310001419536us-gaap:CommercialPortfolioSegmentMember2021-09-300001419536us-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MinimumMembercbnk:OwnerOccupiedRealEstateMember2021-01-012021-09-300001419536us-gaap:ResidentialPortfolioSegmentMembersrt:MaximumMemberus-gaap:RealEstateLoanMembercbnk:OwnerOccupiedRealEstateMember2021-01-012021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMembercbnk:OwnerOccupiedRealEstateMember2021-01-012021-09-300001419536cbnk:InvestorRealEstateMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2021-01-012021-09-30xbrli:pure0001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMembercbnk:OwnerOccupiedRealEstateMember2021-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2021-01-012021-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMembersrt:MinimumMember2021-01-012021-09-300001419536srt:MaximumMemberus-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2021-01-012021-09-300001419536cbnk:InvestorRealEstateMemberus-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2021-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMembercbnk:OwnerOccupiedRealEstateMember2021-09-300001419536cbnk:SavingsDepositsMemberus-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2021-01-012021-09-300001419536cbnk:SavingsDepositsMemberus-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536cbnk:SavingsDepositsMemberus-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2021-06-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2021-07-012021-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2021-06-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2021-07-012021-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2021-06-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2021-07-012021-09-300001419536us-gaap:CommercialPortfolioSegmentMember2021-06-300001419536us-gaap:CommercialPortfolioSegmentMember2021-07-012021-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2021-06-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2021-07-012021-09-300001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-06-300001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-07-012021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2021-01-012021-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2021-01-012021-09-300001419536us-gaap:CommercialPortfolioSegmentMember2021-01-012021-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2021-01-012021-09-300001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-01-012021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2020-06-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2020-07-012020-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2020-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2020-06-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2020-07-012020-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2020-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2020-06-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2020-07-012020-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2020-09-300001419536us-gaap:CommercialPortfolioSegmentMember2020-06-300001419536us-gaap:CommercialPortfolioSegmentMember2020-07-012020-09-300001419536us-gaap:CommercialPortfolioSegmentMember2020-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2020-06-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2020-07-012020-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-06-300001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-07-012020-09-300001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2019-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2020-01-012020-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2019-12-310001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2020-01-012020-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2019-12-310001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2020-01-012020-09-300001419536us-gaap:CommercialPortfolioSegmentMember2019-12-310001419536us-gaap:CommercialPortfolioSegmentMember2020-01-012020-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2019-12-310001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2020-01-012020-09-300001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2019-12-310001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-01-012020-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMembercbnk:FinancingReceivables30To89DaysPastDueMember2021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2021-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2021-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-09-300001419536us-gaap:CommercialPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2021-09-300001419536us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2021-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2021-09-300001419536us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536cbnk:FinancingReceivables30To89DaysPastDueMember2021-09-300001419536us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-09-300001419536cbnk:AcquiredLoansMembercbnk:FinancingReceivables30To89DaysPastDueMember2021-09-300001419536us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercbnk:AcquiredLoansMember2021-09-300001419536cbnk:AcquiredLoansMember2021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMembercbnk:FinancingReceivables30To89DaysPastDueMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2020-12-310001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2020-12-310001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310001419536us-gaap:CommercialPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2020-12-310001419536us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310001419536us-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2020-12-310001419536us-gaap:CreditCardReceivablesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536cbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMembercbnk:FinancingReceivables30To89DaysPastDueMember2020-12-310001419536us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536cbnk:FinancingReceivables30To89DaysPastDueMember2020-12-310001419536us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310001419536cbnk:AcquiredLoansMembercbnk:FinancingReceivables30To89DaysPastDueMember2020-12-310001419536us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercbnk:AcquiredLoansMember2020-12-310001419536cbnk:AcquiredLoansMember2020-12-31cbnk:loan0001419536us-gaap:ResidentialRealEstateMember2021-09-300001419536us-gaap:ResidentialRealEstateMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMemberus-gaap:RealEstateLoanMember2021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:SpecialMentionMember2021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:SubstandardMember2021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:DoubtfulMember2021-09-300001419536us-gaap:PassMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2021-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2021-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:DoubtfulMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001419536us-gaap:PassMemberus-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2021-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMemberus-gaap:SpecialMentionMember2021-09-300001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMemberus-gaap:SubstandardMember2021-09-300001419536us-gaap:RealEstateLoanMemberus-gaap:DoubtfulMembercbnk:ConstructionPortfolioSegmentMember2021-09-300001419536us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001419536us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2021-09-300001419536us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2021-09-300001419536us-gaap:DoubtfulMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001419536us-gaap:PassMemberus-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:SpecialMentionMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:CreditCardReceivablesMemberus-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:DoubtfulMemberus-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:PassMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:SpecialMentionMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:SubstandardMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:DoubtfulMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:PassMember2021-09-300001419536us-gaap:SpecialMentionMember2021-09-300001419536us-gaap:SubstandardMember2021-09-300001419536us-gaap:DoubtfulMember2021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMemberus-gaap:RealEstateLoanMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:SpecialMentionMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:SubstandardMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:DoubtfulMember2020-12-310001419536us-gaap:PassMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-12-310001419536us-gaap:RealEstateLoanMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2020-12-310001419536us-gaap:RealEstateLoanMemberus-gaap:DoubtfulMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:PassMemberus-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMember2020-12-310001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-12-310001419536us-gaap:RealEstateLoanMembercbnk:ConstructionPortfolioSegmentMemberus-gaap:SubstandardMember2020-12-310001419536us-gaap:RealEstateLoanMemberus-gaap:DoubtfulMembercbnk:ConstructionPortfolioSegmentMember2020-12-310001419536us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-12-310001419536us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2020-12-310001419536us-gaap:DoubtfulMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:PassMemberus-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:CreditCardReceivablesMemberus-gaap:SpecialMentionMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:CreditCardReceivablesMemberus-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:DoubtfulMemberus-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:PassMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:SpecialMentionMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:SubstandardMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:DoubtfulMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:PassMember2020-12-310001419536us-gaap:SpecialMentionMember2020-12-310001419536us-gaap:SubstandardMember2020-12-310001419536us-gaap:DoubtfulMember2020-12-31cbnk:contract0001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:RealEstateLoanMember2021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:RealEstateLoanMember2021-09-300001419536us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001419536us-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001419536us-gaap:PerformingFinancingReceivableMember2021-09-300001419536us-gaap:NonperformingFinancingReceivableMember2021-09-300001419536cbnk:AcquiredLoansMember2021-01-012021-09-300001419536us-gaap:PerformingFinancingReceivableMembercbnk:AcquiredLoansMember2021-09-300001419536us-gaap:NonperformingFinancingReceivableMembercbnk:AcquiredLoansMember2021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:RealEstateLoanMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:RealEstateLoanMember2020-12-310001419536us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:PerformingFinancingReceivableMember2020-12-310001419536us-gaap:NonperformingFinancingReceivableMember2020-12-310001419536cbnk:AcquiredLoansMember2020-01-012020-09-300001419536us-gaap:PerformingFinancingReceivableMembercbnk:AcquiredLoansMember2020-12-310001419536us-gaap:NonperformingFinancingReceivableMembercbnk:AcquiredLoansMember2020-12-310001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMembercbnk:NewTDRMember2021-07-012021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMembercbnk:NewTDRMember2021-01-012021-09-300001419536us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMembercbnk:NewTDRMember2021-09-300001419536us-gaap:CommercialPortfolioSegmentMembercbnk:PaidOffTDRMember2021-01-012021-09-300001419536us-gaap:CommercialPortfolioSegmentMembercbnk:PaidOffTDRMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateLoanMember2020-12-310001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2020-12-310001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMember2020-12-310001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-12-310001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:CommercialPortfolioSegmentMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:CreditCardReceivablesMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:CommitmentsToExtendCreditMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMembercbnk:OtherConsumerMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310001419536us-gaap:CommitmentsToExtendCreditMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMember2020-12-310001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:ResidentialPortfolioSegmentMembercbnk:LoansHeldForSaleMember2021-09-300001419536us-gaap:CommitmentsToExtendCreditMemberus-gaap:ResidentialPortfolioSegmentMembercbnk:LoansHeldForSaleMember2020-12-310001419536us-gaap:UnfundedLoanCommitmentMember2021-06-300001419536us-gaap:UnfundedLoanCommitmentMember2020-06-300001419536us-gaap:UnfundedLoanCommitmentMember2020-12-310001419536us-gaap:UnfundedLoanCommitmentMember2019-12-310001419536us-gaap:UnfundedLoanCommitmentMember2021-07-012021-09-300001419536us-gaap:UnfundedLoanCommitmentMember2020-07-012020-09-300001419536us-gaap:UnfundedLoanCommitmentMember2021-01-012021-09-300001419536us-gaap:UnfundedLoanCommitmentMember2020-01-012020-09-300001419536us-gaap:UnfundedLoanCommitmentMember2021-09-300001419536us-gaap:UnfundedLoanCommitmentMember2020-09-300001419536cbnk:MortgageLoansSoldMember2021-06-300001419536cbnk:MortgageLoansSoldMember2020-06-300001419536cbnk:MortgageLoansSoldMember2020-12-310001419536cbnk:MortgageLoansSoldMember2019-12-310001419536cbnk:MortgageLoansSoldMember2021-07-012021-09-300001419536cbnk:MortgageLoansSoldMember2020-07-012020-09-300001419536cbnk:MortgageLoansSoldMember2021-01-012021-09-300001419536cbnk:MortgageLoansSoldMember2020-01-012020-09-300001419536cbnk:MortgageLoansSoldMember2021-09-300001419536cbnk:MortgageLoansSoldMember2020-09-300001419536cbnk:OpenForwardDeliverySalesAgreementMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001419536cbnk:OpenForwardDeliverySalesAgreementMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001419536cbnk:OpenMandatoryDeliveryCommitmentsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001419536cbnk:OpenMandatoryDeliveryCommitmentsMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001419536us-gaap:InterestRateLockCommitmentsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001419536us-gaap:InterestRateLockCommitmentsMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-31cbnk:branch00014195362019-01-010001419536srt:MinimumMember2021-01-012021-09-300001419536srt:MaximumMember2021-01-012021-09-300001419536us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001419536us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-09-300001419536us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001419536us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-09-300001419536us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001419536us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001419536us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001419536us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001419536us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001419536us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001419536us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:FairValueInputsLevel3Memberus-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001419536us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001419536us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001419536us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001419536us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001419536us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001419536us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001419536us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001419536us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001419536us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001419536us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-09-300001419536us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001419536us-gaap:ChangeDuringPeriodFairValueDisclosureMember2021-09-300001419536us-gaap:ChangeDuringPeriodFairValueDisclosureMember2020-12-310001419536us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310001419536us-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001419536us-gaap:FairValueMeasurementsNonrecurringMember2020-12-310001419536us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputCostToSellMembersrt:MinimumMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMemberus-gaap:MeasurementInputCostToSellMember2021-09-300001419536us-gaap:ValuationTechniqueConsensusPricingModelMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMembersrt:MinimumMember2021-09-300001419536us-gaap:ValuationTechniqueConsensusPricingModelMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMemberus-gaap:MeasurementInputCostToSellMember2021-09-300001419536us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-09-300001419536us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001419536us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2020-12-310001419536us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001419536us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001419536us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001419536us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001419536us-gaap:OperatingSegmentsMembercbnk:CommercialBankMember2021-07-012021-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CapitalBankHomeLoansMember2021-07-012021-09-300001419536cbnk:OpenSkyMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001419536us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2021-07-012021-09-300001419536us-gaap:IntersegmentEliminationMember2021-07-012021-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CommercialBankMember2021-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CapitalBankHomeLoansMember2021-09-300001419536cbnk:OpenSkyMemberus-gaap:OperatingSegmentsMember2021-09-300001419536us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2021-09-300001419536us-gaap:IntersegmentEliminationMember2021-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CommercialBankMember2020-07-012020-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CapitalBankHomeLoansMember2020-07-012020-09-300001419536cbnk:OpenSkyMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001419536us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2020-07-012020-09-300001419536us-gaap:IntersegmentEliminationMember2020-07-012020-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CommercialBankMember2020-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CapitalBankHomeLoansMember2020-09-300001419536cbnk:OpenSkyMemberus-gaap:OperatingSegmentsMember2020-09-300001419536us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2020-09-300001419536us-gaap:IntersegmentEliminationMember2020-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CommercialBankMember2021-01-012021-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CapitalBankHomeLoansMember2021-01-012021-09-300001419536cbnk:OpenSkyMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001419536us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2021-01-012021-09-300001419536us-gaap:IntersegmentEliminationMember2021-01-012021-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CommercialBankMember2020-01-012020-09-300001419536us-gaap:OperatingSegmentsMembercbnk:CapitalBankHomeLoansMember2020-01-012020-09-300001419536cbnk:OpenSkyMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001419536us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2020-01-012020-09-300001419536us-gaap:IntersegmentEliminationMember2020-01-012020-09-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period ended September 30, 2021         OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to
Commission file number 001-38671
https://cdn.kscope.io/4f0b841805bd5967a94b93560b10bc62-cbnk-20210930_g1.jpg
CAPITAL BANCORP INC.
(Exact name of registrant as specified in its charter)
Maryland
52-2083046
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
2275 Research Boulevard
Suite 600
Rockville
Maryland
20850
(Address of principal executive offices)
(Zip Code)
(301) 468-8848
Registrant’s telephone number, including area code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

    Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes x No ¨

    Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).             Yes x No ¨
    Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer¨Accelerated Filer
Non-accelerated filer¨Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).         Yes No x

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareCBNKNASDAQ Stock Market
As of November 5, 2021, the Company had 13,868,387 shares of common stock, par value $0.01 per share, outstanding.


Capital Bancorp, Inc. and Subsidiaries
Form 10-Q
INDEX

PART I - CONSOLIDATED FINANCIAL INFORMATIONPage
Item 1.Consolidated Financial Statements
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures about Market Risk
Item 4.Controls and Procedures
PART II - OTHER INFORMATION
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits




PART I. CONSOLIDATED FINANCIAL INFORMATION
Item 1. CONSOLIDATED FINANCIAL STATEMENTS
Capital Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets

(in thousands except share data)September 30, 2021 (unaudited)December 31, 2020 (audited)
Assets
Cash and due from banks$23,650 $18,456 
Interest bearing deposits at other financial institutions299,033 126,081 
Federal funds sold1,315 2,373 
Total cash and cash equivalents
323,998 146,910 
Investment securities available for sale189,165 99,787 
Marketable equity securities 245 245 
Restricted investments
3,498 3,713 
Loans held for sale36,005 107,154 
Small Business Administration Payroll Protection Program loans receivable, net of fees137,178 201,018 
Portfolio loans receivable, net of deferred fees and costs and net of allowance for loan losses of $24,753 and $23,434
1,420,373 1,292,068 
Premises and equipment, net
3,690 4,464 
Accrued interest receivable7,828 8,134 
Deferred income taxes7,172 6,818 
Foreclosed real estate3,236 3,326 
Bank owned life insurance35,268  
Other assets1,900 2,956 
Total assets
$2,169,556 $1,876,593 
Liabilities
Deposits
Noninterest-bearing, including related party balances of $38,514 and $17,848
$833,187 $608,559 
Interest-bearing, including related party balances of $83,963 and $130,586
1,088,051 1,043,569 
Total deposits
1,921,238 1,652,128 
Federal Home Loan Bank advances22,000 22,000 
Other borrowed funds12,062 14,016 
Accrued interest payable839 1,134 
Other liabilities24,337 28,004 
Total liabilities
1,980,476 1,717,282 
Stockholders' equity
Common stock, $.01 par value; 49,000,000 shares authorized; 13,801,936 and 13,753,529 issued and outstanding
138 138 
Additional paid-in capital52,123 50,602 
Retained earnings135,906 106,854 
Accumulated other comprehensive income 913 1,717 
Total stockholders' equity
189,080 159,311 
Total liabilities and stockholders' equity
$2,169,556 $1,876,593 


See Notes to Consolidated Financial Statements
2


Capital Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(dollars in thousands except per share data)2021202020212020
Interest income
Loans, including fees$32,840 $24,836 $87,549 $67,520 
Investment securities available for sale549 273 1,571 929 
Federal funds sold and other139 80 335 484 
Total interest income33,528 25,189 89,455 68,933 
Interest expense
Deposits, includes payments to related parties of $41 and $167 for the three and nine months ended September 30, 2021, respectively, and $184 and $862 for the three and nine months ended September 30, 2020, respectively.
1,285 2,634 4,874 9,201 
Borrowed funds184 516 559 1,382 
Total interest expense1,469 3,150 5,433 10,583 
Net interest income32,059 22,039 84,022 58,350 
Provision for loan losses975 3,500 2,259 9,209 
Net interest income after provision for loan losses
31,084 18,539 81,763 49,141 
Noninterest income
Service charges on deposits160 119 473 378 
Credit card fees7,554 5,773 21,208 10,694 
Mortgage banking revenue4,465 10,690 17,478 20,984 
Gain on sale of investment securities available for sale, net  153  
Other fees and charges418 895 707 2,058 
Total noninterest income12,597 17,477 40,019 34,114 
Noninterest expenses
Salaries and employee benefits
9,962 8,940 27,279 24,849 
Occupancy and equipment998 1,328 3,322 3,658 
Professional fees2,555 1,307 5,542 2,971 
Data processing10,161 7,880 29,594 17,664 
Advertising1,027 633 3,153 1,875 
Loan processing644 1,264 2,670 2,451 
Foreclosed real estate expenses, net44 9 321 137 
Other operating3,236 3,089 9,718 7,548 
Total noninterest expenses28,627 24,450 81,599 61,153 
Income before income taxes15,054 11,566 40,183 22,102 
Income tax expense3,877 3,128 10,376 5,968 
Net income$11,177 $8,438 $29,807 $16,134 
Basic earnings per share$0.81 $0.61 $2.16 $1.17 
Diluted earnings per share$0.79 $0.61 $2.11 $1.17 
Weighted average common shares outstanding:
Basic13,793,087 13,794,628 13,772,261 13,829,341 
Diluted14,228,497 13,794,628 14,110,789 13,832,176 


See Notes to Consolidated Financial Statements
3


Capital Bancorp, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2021202020212020
Net income$11,177 $8,438 $29,807 $16,134 
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available for sale1,051 37 (1,219)2,458 
Reclassification of realized gain on sale of investment securities available for sale
  153  
1,051 37 (1,066)2,458 
Income tax benefit (expense) relating to the items above(286)(10)262 (677)
Other comprehensive income 765 27 (804)1,781 
Comprehensive income$11,942 $8,465 $29,003 $17,915 

See Notes to Consolidated Financial Statements
4


Capital Bancorp, Inc. and Subsidiaries
Consolidated Statements of Changes in Stockholders’ Equity
(unaudited)
Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated Other Comprehensive IncomeTotal
Stockholders'
Equity
(dollars in thousands)SharesAmount
Balance, December 31, 201913,894,842 $139 $51,561 $81,618 $13 $133,331 
Net income— — — 2,934 — 2,934 
Unrealized gain on investment securities available for sale, net of income taxes
— — — — 754 754 
Stock options exercised, net of repurchased shares34,015 — 263 (163)— 100 
Stock-based compensation
— — 244 — — 244 
Shares repurchased and retired
(112,134)(1)(1,282)— — (1,283)
Balance, March 31, 202013,816,723 $138 $50,786 $84,389 $767 $136,080 
Net income— — — 4,761 — 4,761 
Unrealized gain on investment securities available for sale, net of income taxes
— — — — 1,000 1,000 
Shares issued as compensation
3,000 — 37 — — 37 
Stock-based compensation
— — 243 1 — 244 
Shares repurchased and retired
(1,500)— (14)— — (14)
Balance, June 30, 202013,818,223 138 51,052 89,151 1,767 142,108 
Net income   8,438  8,438 
Unrealized gain on investment securities available for sale, net of income taxes
— — — — 2727 
Stock options exercised5,175— 57— — 57 
Stock-based compensation
— — 249(1)— 248 
Shares repurchased and retired
(141,200)(1)(1,492)(8)— (1,501)
Balance, September 30, 202013,682,198 $137 $49,866 $97,580 $1,794 $149,377 
Balance, December 31, 202013,753,529 $138 $50,602 $106,854 $1,717 $159,311 
Net income— — — 8,982 — 8,982 
Unrealized loss on investment securities available for sale, net of income taxes— — — — (1,699)(1,699)
Stock options exercised, net of repurchased shares5,689 — 107 (31)— 76 
Stock-based compensation
— — 333 — — 333 
Balance, March 31, 202113,759,218 $138 $51,042 $115,805 $18 $167,003 
Net income— — — 9,648 — 9,648 
Unrealized gain on investment securities available for sale, net of income taxes— — — — 130 130 
Stock options exercised, net of repurchased shares10,301 — 121 (22)— 99 
Shares issued as compensation
2,096 — 26 — — 26 
Stock-based compensation
— — 298 — — 298 
Balance, June 30, 202113,771,615 $138 $51,487 $125,431 $148 $177,204 
Net income— — — 11,177 — 11,177 
Unrealized gain on investment securities available for sale, net of income taxes— — — — 765 765 
Stock options exercised, net of repurchased shares30,321 — 261 (702)— (441)
Stock-based compensation
— — 375 — — 375 
Balance, September 30, 202113,801,936 $138 $52,123 $135,906 $913 $189,080 

See Notes to Consolidated Financial Statements
5

Capital Bancorp, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
Nine Months Ended September 30,
(in thousands)20212020
Operating activities
Net income$29,807 $16,134 
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision for loan losses2,259 9,209 
Provision for losses on mortgage loans sold279 475 
Provision for (reversal of) off balance sheet credit commitments(39)233 
Amortization on investments, net358 216 
Depreciation and amortization1,013 1,401 
Increase in cash surrender value of bank-owned life insurance policies(268) 
Stock-based compensation expense1,006 736 
Director and employee compensation paid in stock26 37 
Deferred income tax expense (benefit)(92)(3)
Amortization of debt issuance expense 139 
Gain on sale of securities available for sale(153) 
Loss on sale of foreclosed real estate28  
Mortgage banking revenue(17,478)(20,984)
Proceeds from sales of loans held for sale925,093 880,942 
Originations of loans held for sale(836,466)(926,645)
Changes in assets and liabilities:
Decrease (increase) in accrued interest receivable306 (2,908)
Decrease in other assets1,055 233 
Decrease in accrued interest payable(295)(278)
Decrease (increase) in other liabilities(3,906)5,175 
Net cash provided by (used for) operating activities102,533 (35,888)
Investing activities
Purchases of securities available for sale(169,672)(2,000)
Maturities, calls and principal paydowns of securities available for sale12,231 11,078 
Proceeds from sale of securities available for sale66,534  
Sales of restricted investments473 8 
Purchases of bank-owned life insurance(35,000) 
Decrease (increase) in SBA-PPP loans receivable, net63,840 (233,349)
Increase in portfolio loans receivable, net(130,564)(74,928)
Purchases of premises and equipment, net(239)(330)
Proceeds from sales of foreclosed real estate62  
Net cash used for investing activities(192,335)(299,521)
Financing activities
Net increase (decrease) in:
Noninterest-bearing deposits
224,628 304,461 
Interest-bearing deposits
44,482 132,328 
Federal Home Loan Bank advances, net (10,000)
(Repayment of) advances from Federal Reserve Bank(1,954)1,954 
Repurchase of common stock (2,798)
Net proceeds from exercise of stock options (repurchase of option shares)(266)157 
Net cash provided by financing activities266,890 426,102 
See Notes to Consolidated Financial Statements
6

Capital Bancorp, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
Nine Months Ended September 30,
(in thousands)20212020
Net increase in cash and cash equivalents177,088 90,693 
Cash and cash equivalents, beginning of year146,910 114,824 
Cash and cash equivalents, end of period$323,998 $205,517 
Noncash activities:
Loans transferred to foreclosed real estate$ $942 
Change in unrealized gains (losses) on investments$(1,066)$2,458 
Cash paid during the period for:
Taxes$12,596 $7,350 
Interest$5,728 $10,861 
See Notes to Consolidated Financial Statements
7


Capital Bancorp, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Note 1 - Nature of Business and Basis of Presentation

Nature of operations:
Capital Bancorp, Inc. is a Maryland corporation and the bank holding company (the “Company”) for Capital Bank, N.A. (the “Bank”). The Company's primary operations are conducted by the Bank, which operates branches in Rockville, and Columbia, Maryland, Reston, Virginia, and the District of Columbia. The Bank is principally engaged in the business of investing in commercial, real estate, and credit card loans and attracting deposits. The Company originates residential mortgages for sale in the secondary market through Capital Bank Home Loans (“CBHL”), the Bank’s residential mortgage banking arm, and issues credit cards through OpenSky®, a secured, digitally-driven nationwide credit card platform.
The Company formed Church Street Capital, LLC (“Church Street Capital”) in 2014 to provide short-term secured real estate financing to Washington, D.C. area investors and developers that may not meet all Bank credit criteria. At September 30, 2021, Church Street Capital had loans totaling $5.9 million.
In addition, the Company 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.
Basis of presentation:
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”) and include the activity of the Company and its wholly-owned subsidiaries, the Bank and Church Street Capital. The statements do not include all of the information and footnotes required by GAAP for complete financials statements. All adjustments have been made which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Such adjustments are all of a normal and recurring nature. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto as of December 31, 2020, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
The Company reports its activities as four business segments. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment.
Risks and Uncertainties
The Company has been, and may continue to be, impacted by the coronavirus disease 2019 pandemic (“COVID-19”). In recent months, COVID-19 vaccination rates have been increasing and restrictive measures have been eased in certain areas. However, uncertainty remains about the duration of the pandemic and the timing and strength of the global economy’s recovery. To address the economic impact of the pandemic in the U.S., multiple stimulus packages have been enacted to provide economic relief to individuals and businesses, including the Coronavirus Aid, Relief and Economic Security Act
8


Capital Bancorp, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

Note 1 - Nature of Business and Basis of Presentation (continued)
(“CARES Act”), which established the Small Business Administration Paycheck Protection Program (“SBA-PPP”) and the American Rescue Plan Act of 2021 which was enacted in March 2021.
As the pandemic evolves, the Company continues to evaluate processes in place to execute our business continuity plan and promote the health and safety of our employees.
Although the macroeconomic and public health outlooks improved in the U.S. during the third quarter of 2021, the future direct and indirect impact of the pandemic on the Company’s businesses, results of operations and financial condition remains uncertain. Should current economic conditions deteriorate or if the pandemic worsens, including as the result of the spread of the more easily communicable variants of COVID-19, the macroeconomic environment could have an adverse effect on our businesses, results of operations and financial condition.
Significant Accounting Policies:
The preparation of consolidated financial statements in accordance with GAAP requires estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The primary reference point for the estimates is historical experience and assumptions believed to be reasonable regarding the carrying value of certain assets and liabilities that are not readily available from other sources. Estimates are evaluated on an ongoing basis. Actual results may materially differ from these estimates under different assumptions or conditions.
Cash and cash equivalents
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from financial institutions, interest bearing deposits with financial institutions and federal funds sold. Generally, federal funds are sold for one-day periods.
Investment securities
Investment securities are classified as available for sale and carried at fair value with unrealized gains and losses included in stockholders’ equity on an after-tax basis. Premiums and discounts on investment securities are amortized or accreted using the interest method. Changes in the fair value of debt securities available for sale are included in stockholders’ equity as unrealized gains and losses, net of the related tax effect. Unrealized losses are periodically reviewed to determine whether the loss represents an other than temporary impairment. Any unrealized losses judged to be other than a temporary impairment are charged to income.
Marketable Equity Securities
Marketable equity securities are carried at fair value with realized gains and losses included in earnings. Premiums and discounts on investment securities are amortized or accreted using the interest method. Changes in the fair value of equity securities are also included in earnings as gain or loss on marketable equity securities.
Loans held for sale
Mortgage loans originated and intended for sale are recorded at fair value, determined individually, as of the balance sheet date. Fair value is determined based on outstanding investor commitments, or in the absence of such commitments, based on current investor yield requirements. Gains and losses on loan
9


Capital Bancorp, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

Note 1 - Nature of Business and Basis of Presentation (continued)
sales are determined by the specific-identification method. The Company’s current practice is to sell residential mortgage loans on a servicing released basis, and, therefore, it has no servicing rights recorded for the value of such servicing. Interest on loans held for sale is credited to income based on the principal amounts outstanding.
Upon sale and delivery, loans are legally isolated from the Company and the Company has no ability to restrict or constrain the ability of third‑party investors to pledge or exchange the mortgage loans. The Company does not have the entitlement or ability to repurchase the mortgage loans or unilaterally cause third‑party investors to put the mortgage loans back to the Company. Unrealized and realized gains on loan sales are determined using the specific-identification method and are recognized through mortgage banking activity in the Consolidated Statements of Income.
The Company elects to measure loans held for sale at fair value to better align reported results with the underlying economic changes in value of the loans on the Company’s balance sheet.
Small Business Administration Paycheck Protection Program
The SBA-PPP is one of the centerpieces of the CARES Act which was passed on March 27, 2020 in response to the outbreak of COVID-19 and was supplemented with subsequent legislation. Overseen by the United States (“U.S.”) Treasury Department, the SBA-PPP offered cash-flow assistance to nonprofit and small business employers through guaranteed loans. Borrowers are eligible for forgiveness of principal and accrued interest on SBA-PPP loans to the extent that the proceeds are used to cover eligible payroll costs, interest costs, rent, and utility costs over a period between eight and twenty four weeks after the loan is made as long as the borrower retains its employees and their compensation levels. The CARES Act authorized the SBA to fully guarantee these loans.
On December 27, 2020, the Consolidated Appropriations Act, 2021 (“CAA”) was signed into law. The CAA provides several amendments to the SBA-PPP, including additional funding for the first and second draws of PPP loans up to March 13, 2021. On March 30, 2021, the PPP Extension Act of 2021 was signed into law, which extended the program to May 31, 2021.
Due to the unique nature of these provisions, SBA-PPP loans have been disclosed as a separate balance sheet item. Origination fees received by the SBA are capitalized into the carrying amount of the loans. The deferred fee income, net of origination costs, is recognized over the life of the loan as an adjustment to yield using the effective interest method. SBA-PPP loans receivable as of September 30, 2021 totaled $141.4 million with $4.3 million of net unearned fees. SBA-PPP loans generated interest income of $1.5 million for the three months ended September 30, 2021 and $6.3 million for the nine months ended September 30, 2021.
Loans and the Allowance for Loan Losses
Loans are stated at the principal amount outstanding, adjusted for deferred origination fees and costs, discounts on loans acquired, and the allowance for loan losses. Interest is accrued based on the loan principal balances and stated interest rates. Origination fees and costs are recognized as an adjustment to the related loan yield using approximate interest methods. The Company discontinues the accrual of interest when any portion of the principal and/or interest is 90 days past due, or when it is probable that not all principal and interest payments will be collected, and collateral is insufficient to discharge the debt in full. Generally, interest payments on nonaccrual loans are recorded as a reduction of the principal balance.
10


Capital Bancorp, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

Note 1 - Nature of Business and Basis of Presentation (continued)
Loans are considered impaired when, based on current information, management believes the Company will not collect all principal and interest payments according to contractual terms. Generally, loans are reviewed for impairment when the risk grade for a loan is downgraded to a classified asset category. The loans are evaluated for appropriate classification, accrual, impairment, and troubled debt restructure (“TDR”) status. If collection of principal is evaluated as doubtful, all payments are applied to principal. A modification of a loan is considered a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession; however, the CARES Act provides financial institutions optional temporary relief from TDR and impairment accounting for certain loan modifications related to the COVID-19 pandemic. Under Section 4013 of the CARES Act, banks may suspend (1) the requirement under GAAP for certain modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. To be eligible, each loan modification must be (1) related to the COVID-19 event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The December 31, 2020 deadline was subsequently extended to January 1, 2022, by the CAA.
All other short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented.
Loans are generally charged-off in part or in full when management determines the loan to be uncollectible. Factors for charge-off that may be considered include: repayments deemed to be projected beyond reasonable time frames, client bankruptcy and lack of assets, and/or collateral deficiencies.
The allowance for loan losses is estimated to adequately provide for probable future losses on existing loans. The allowance consists of specific and general components. For loans that are classified as impaired, an allowance is established when the collateral value, if the loan is collateral dependent, or the discounted cash flows of the impaired loan is lower than the carrying value of that loan. The general component covers pools of nonclassified loans and is based on historical loss experience adjusted with qualitative factors such as: trends in volume and terms of loans; levels of, and trends in, delinquencies and non-accruals; effects of any changes in lending policies, experience, ability and depth of management; national and local economic trends and conditions (with a specific evaluation of COVID-19 impact); commitments and concentrations of credit; changes in the quality of the Company’s loan review system; and the volume of loans with identified incomplete financial documentation. Actual loan performance may differ materially from those estimates. A loss is recognized as a charge to the allowance when management believes that collection of the loan is unlikely. Collections of loans previously charged off are added to the allowance at the time of recovery.
The Company determines the allowance for loan losses based on the accumulation of various components that are calculated independently in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 450 for pools of loans, and ASC 310 for TDRs and for individually evaluated loans. The process for determining an appropriate allowance for loan losses is based on a comprehensive and consistently applied analysis of the loan portfolio. The analysis considers all significant factors that affect the collectibility of the portfolio and supports the credit losses estimated by this process. It is important to recognize that the related process, methodology, and underlying assumptions require a substantial degree of judgment. Additional disclosure on the allowance for loan
11


Capital Bancorp, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

Note 1 - Nature of Business and Basis of Presentation (continued)
losses, qualitative factors, and the potential COVID-19 impact can be found in Part II, Item 1A - Risk Factors and Note 5 - Portfolio Loans Receivable.
The allowance for loan losses for SBA-PPP loans were separately evaluated given the explicit government guarantee. This analysis, which incorporated historical experience with similar SBA guarantees and underwriting, concluded that the likelihood of loss was remote and therefore no allowance for loan losses was assigned to these loans.
Premises and equipment
Premises and equipment are stated at cost less accumulated depreciation and amortization over two to seven years. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related property. Leasehold improvements are amortized over the estimated useful lives of the improvements, approximately ten years, or the term of the lease, whichever is less. Expenditures for maintenance, repairs, and minor replacements are charged to noninterest expenses as incurred.
Leases
The Company accounts for leases according to ASU 2016-02, Leases (Topic 842), and applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. The Company elected to apply the package of practical expedients permitting entities to not reassess: 1) whether any expired or existing contracts are or contain leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. Additionally, as provided by ASU 2016-02, the Company elected not to apply the recognition requirements of ASC 842 to short-term leases, defined as leases with a term of 12 months or less, and to recognize the lease payments in net income on short-term leases on a straight-line basis over the lease term.
Derivative Financial Instruments
The Company enters into commitments to fund residential mortgage loans (interest rate locks) with the intention of selling them in the secondary market. The Company also enters into forward sales agreements for certain funded loans and loan commitments. The Company records unfunded commitments intended for loans held for sale and forward sales agreements at fair value with changes in fair value recorded as a component of mortgage banking revenue. Loans originated and intended for sale in the secondary market are carried at fair value. For pipeline loans which are not pre-sold to an investor, the Company endeavors to manage the interest rate risk on rate lock commitments by entering into forward sale contracts, whereby the Company obtains the right to deliver securities to investors in the future at a specified price. Such contracts are accounted for as derivatives and are recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage banking revenue.
The Company accounts for derivative instruments and hedging activities according to guidelines established in ASC 815-10, Accounting for Derivative Instruments and Hedging Activities, as amended. The Company recognizes all derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value. Changes in fair value of derivatives designated and accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income, net
12


Capital Bancorp, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

Note 1 - Nature of Business and Basis of Presentation (continued)
of deferred taxes. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item.
Fair Value Measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. The degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market inputs. For financial instruments that are traded actively and have quoted market prices or observable market inputs, there is minimal subjectivity involved in measuring fair value. However, when quoted market prices or observable market inputs are not fully available, significant management judgment may be necessary to estimate fair value. In developing our fair value estimates, we endeavor to maximize the use of observable inputs and minimize the use of unobservable inputs.
The fair value hierarchy defines Level 1 valuations as those based on quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 valuations include inputs based on quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 valuations are based on at least one significant assumption not observable in the market, or significant management judgment or estimation, some of which may be internally developed.
Financial assets that are recorded at fair value on a recurring basis include investment securities available for sale, loans held for sale, and derivative financial instruments. Financial liabilities that are recorded at fair value on a recurring basis are comprised of derivative financial instruments. Additional information is included in Note 8 - Fair Value.
Income Taxes
Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized when it is deemed more likely than not that the benefits of such deferred income taxes will be realized.
Earnings per share:
Earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for the dilutive effect of stock options and restricted stock using the treasury stock method. At September 30, 2020, there were 510,550 stock options excluded from the calculation as their effect would have been anti-dilutive, whereas at September 30, 2021 there were 147 such options.

Comprehensive income:
The Company reports as comprehensive income all changes in stockholders' equity during the year from sources other than stockholders. Other comprehensive income refers to all components (income, expenses, gains, and losses) of comprehensive income that are excluded from net income.
13


Capital Bancorp, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

Note 1 - Nature of Business and Basis of Presentation (continued)
The Company's only component of other comprehensive income is unrealized gains and losses on investment securities available for sale, net of income taxes.