Capital Bancorp, Inc. (CBNK): Business Model Canvas [Dec-2025 Updated]

You're looking at a regional bank that made a sharp, successful turn toward national scale, and honestly, it's a fascinating blueprint for any community bank feeling the pressure. I've spent two decades mapping these shifts, and what Capital Bancorp, Inc. (CBNK) pulled off by integrating Windsor Advantage is defintely key: they grew total assets to $3.39 billion by Q2 2025 while boosting their Return on Average Assets (ROA) to 1.77% by Q3 2025, all by balancing local commercial lending with national SBA and secured card operations. Below, we break down their entire nine-part Business Model Canvas-from their national OpenSky credit card channel to their specialized Key Resources-so you can see exactly how they built this diversified engine.

Capital Bancorp, Inc. (CBNK) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that allow Capital Bancorp, Inc. (CBNK) to execute its strategy, especially after major integration and technology shifts in 2025. These partnerships are critical for scaling its niche lending and digital capabilities.

Integration and Strategic Alignment

The most significant recent partnership event was the full integration of Integrated Financial Holdings (IFH), which converted its operations and systems into CBNK's structure on February 24, 2025. This merger, valued at $66 million, was designed to immediately impact the 2025 financial performance, with an expected 17% EPS accretion in 2025.

This integration immediately bolstered CBNK's national lending focus. Here's how the pro forma business mix was structured post-merger, based on illustrative 2023 earnings:

Also, the pro forma loan book was expected to see a meaningful increase in commercial lending, with ~38% consisting of C&I (Commercial & Industrial) and owner-occupied CRE (Commercial Real Estate).

Government Lending Alliances

CBNK relies heavily on its established relationship with government agencies to drive its specialized lending vertical. The expertise gained from IFH centered on originating and servicing loans guaranteed by the U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA).

To capitalize on this, Capital Bancorp, Inc. announced a strategic expansion of its SBA team on December 4, 2025, aiming to accelerate national small-business lending. This move followed strong Q3 2025 results, where CBNK reported an EPS of $0.89 and a Return on Assets (ROA) of 1.77%.

Key aspects of this partnership focus include:

• Strengthening SBA origination capabilities.
• Enhancing credit discipline for government-guaranteed programs.
• Pursuing broader national SBA lending.

Digital Transformation Partner

A major operational partnership for customer experience was solidified in the second quarter. Capital Bank, a subsidiary of Capital Bancorp, Inc., officially launched its new digital banking platform, powered by Q2, on May 19, 2025. This was a strategic step aligning technology with growth, as Capital Bancorp reported total assets of approximately $3.4 billion as of September 30, 2025.

The Q2 platform launch provided:

• A secure, modern experience for business customers.
• Advanced digital treasury management capabilities.
• Scalability needed to expand into new geographies and customer segments.

Investor Base as a Key Resource

While not a traditional vendor or agency partnership, the composition of the shareholder base acts as a key external resource, providing capital and market validation. As of the latest filings covering Q2 activity, hedge funds and other institutional investors held a substantial portion of the company's stock.

Institutional Ownership Snapshot (as of Q2 2025 filings):

This level of institutional backing supports the capital base necessary for executing large-scale initiatives like the IFH acquisition and technology upgrades. The bank also maintains relationships with correspondent banks necessary for national lending and servicing operations, though specific financial terms of those arrangements aren't publicly detailed.

Finance: draft 13-week cash view by Friday.

Capital Bancorp, Inc. (CBNK) - Canvas Business Model: Key Activities

You're looking at the engine room of Capital Bancorp, Inc. (CBNK) for late 2025; this is where the work gets done to drive that balance sheet growth. The key activities are heavily weighted toward national, outsourced, and digital lending platforms, a clear shift from its Mid-Atlantic commercial banking roots.

The strategic balance sheet expansion is a major activity, pushing total assets to $3.39 billion as of June 30, 2025. That represents a 39.0% increase year-over-year from Q2 2024. This growth is directly fueled by the success of the specialized lending activities.

Here's a breakdown of the key activities and their recent financial impact, showing where the income is actually coming from as of Q2 2025:

The operational focus clearly supports the following core activities:

• Commercial and industrial lending in the Mid-Atlantic region, which posted a Net Interest Margin of 4.36% in Q2 2025.
• National origination and servicing of SBA/USDA loans via Windsor Advantage, which drove 36% of year-to-date core fee revenue in Q2 2025.
• Managing a national OpenSky secured credit card portfolio, which accounted for 31% of year-to-date core fee revenue.
• Mortgage loan origination and sales across all 50 states via Capital Bank Home Loans.
• Strategic balance sheet expansion, growing total assets to $3.39 billion in Q2 2025.

For context on the SBA activity, Q1 of FY2025 saw about $8.73 billion in 7(a) approvals, marking an increase of approximately 38% year-over-year. Capital Bancorp, Inc. announced an expansion of its SBA team on December 4, 2025, to further this national lending capability.

The OpenSky division, which provides secured credit cards nationwide, saw its contribution to net income settle at 16% in Q2 2025. The Commercial Banking segment's income contribution dropped to 7% in the same quarter. Finance: draft 13-week cash view by Friday.

Capital Bancorp, Inc. (CBNK) - Canvas Business Model: Key Resources

You're analyzing the core assets Capital Bancorp, Inc. (CBNK) relies on to execute its business strategy as of late 2025. These resources are the foundation for their diversified model, especially the growth driven by the Government Guaranty Lending (GGL) segment.

The balance sheet provides tangible evidence of scale, which is a critical resource for a bank. As of June 30, 2025, Capital Bancorp, Inc. (CBNK) reported:

By September 30, 2025, loan and deposit figures continued to grow, with Portfolio Loans reaching $2.83 billion and Total Deposits at $2.91 billion.

The non-tangible resources, particularly the specialized lending platform, are equally vital to the Capital Bancorp, Inc. (CBNK) value proposition.

The Windsor Advantage national SBA/USDA loan servicing platform represents a key outsourced capability that allows Capital Bancorp, Inc. (CBNK) to participate in government-guaranteed lending without the full internal overhead.

• Windsor Advantage services a portfolio exceeding $2.7 billion in government guaranteed loans for over 96+ clients nationwide.
• It offers a comprehensive, turn-key solution on a variable cost basis with no minimum volume requirements.
• The platform supports participation in all U.S. Small Business Association (SBA) 7(a) and U.S. Department of Agriculture (USDA) sub-programs.

The human capital associated with this platform is a significant resource. The specialized, expanded SBA lending team, primarily through the Windsor Advantage partnership, brings deep domain expertise.

• Windsor staff possess more than 225 years of cumulative SBA and USDA experience as both lenders and lender service providers.
• This expertise helps Capital Bancorp, Inc. (CBNK) navigate complex deal structures and maintain compliance.

Underpinning the operational efficiency and the small loan platform is the digital banking platform and core technology infrastructure.

• Windsor Advantage utilizes a best-in-class, technology-enabled program for funding small business lending solutions.
• Capital Bank's small loan platform features a fully digitized application and prescreening process, aiming for highly efficient turn-times to funding.
• The technology infrastructure supports seamless application, pre-qualification, underwriting, and closing processes.

Honestly, the combination of substantial balance sheet resources and the specialized, outsourced GGL infrastructure is what sets the current model apart.

Capital Bancorp, Inc. (CBNK) - Canvas Business Model: Value Propositions

You're looking at how Capital Bancorp, Inc. (CBNK) creates value across its distinct business lines. It's not just one bank; it's a structure designed to balance risk and capture niche growth.

Diversified revenue model mitigating regional banking risk

Capital Bancorp, Inc. operates through four distinct divisions, which helps spread risk away from being solely dependent on one geographic area or loan type. This structure includes Commercial Banking, Capital Bank Home Loans (CBHL), OpenSky, and Windsor Advantage. This setup is explicitly noted as a 'Uniquely Diversified' business model as of June 30, 2025.

The financial performance reflects this diversification, showing strong profitability:

The third quarter's record results were driven by strong growth in the Commercial Bank and OpenSky, which more than made up for the anticipated slowdown of the mortgage business.

National reach for specialized lending (SBA, OpenSky, Home Loans)

Capital Bank Home Loans and OpenSky both use Capital Bank's national banking charter to run consumer business lines across the country. The Windsor Advantage division further supports this national play by servicing, processing, and packaging Small Business Administration (SBA) and USDA loans for other financial institutions. Capital Bancorp, Inc. has been actively strengthening its SBA capabilities, adding several experienced SBA professionals to enhance its small business lending nationwide.

Personalized, community-focused commercial banking in core markets

The Commercial Banking division stays grounded in its core footprint, focusing on providing personalized service to commercial clients primarily in the Washington, D.C. and Baltimore metropolitan areas. This division maintains a strong pipeline, with a proven ability to originate over $150+ million per year of loans.

Simplified, accessible credit building via the OpenSky secured card

OpenSky is designed to serve under-banked populations nationwide by offering digitally originated and served, secured, partially secured, and unsecured credit cards. This provides a clear path for credit building. The scale of this operation is significant:

• OpenSky accounts exceeded 700,000 as of June 30, 2025.
• OpenSky annualized quarterly loan growth reached 44.3 percent.

The growth in this segment is a key driver; OpenSky revenue grew by 80.6 percent to $23.2 million for the quarter ended September 30, 2021, compared to the same period in 2020. That's real growth in serving a specific customer segment.

Finance: draft 13-week cash view by Friday.

Capital Bancorp, Inc. (CBNK) - Canvas Business Model: Customer Relationships

You're looking at how Capital Bancorp, Inc. (CBNK) manages its connections with different customer groups, which is key since their business model is built on both high-touch commercial service and high-volume digital credit.

Dedicated relationship managers for commercial clients

For commercial clients, Capital Bancorp, Inc. leans heavily on human expertise. This is evident in their strategic staffing moves. For instance, in May 2025, the bank expanded its Commercial Banking in Delaware by adding experienced relationship managers to strengthen local business support across Maryland, Delaware, and Virginia. Also, in December 2025, Capital Bank accelerated its Small Business Administration (SBA) growth by adding several experienced SBA professionals to its team. This investment in specialized talent shows a commitment to deep, dedicated service for commercial lending needs.

High-touch, personalized service for local businesses and entrepreneurs

The core philosophy here is to deliver tailored financial solutions, which they frame as their operating principle: Think Big, Act Local. This consultative approach is what they believe fuels their continued growth. They focus on providing a little input for a tailored solution for your business. This high-touch service is supported by the bank's overall size, with total assets reported at approximately $3.4 billion as of September 30, 2025. The bank's Q3 2025 performance, posting net income of $15.1 million, shows this relationship focus is translating to results.

Here's a quick look at the scale supporting these relationship efforts:

Self-service digital banking for day-to-day transactions

To handle day-to-day needs efficiently, Capital Bancorp, Inc. is moving toward a branch-lite model, maximizing web-based and mobile banking applications to drive core funding. A major step in this direction was the official launch of their new digital banking platform, powered by Q2, in May 2025. This upgrade was designed to deliver a secure, modern experience specifically for their business customers. The strategy is to use technology to improve the customer experience and loyalty while delivering operational efficiencies.

Standardized, high-volume digital interaction for OpenSky credit card users

The OpenSky brand represents the standardized, high-volume side of the customer relationship. This division focuses on providing secured, partially secured, and unsecured credit solutions nationwide. Capital Bancorp, Inc. aims to grow this secured credit card business by utilizing its customer acquisition system, Apollo, and leveraging its investment in a new core processing system. The bank also plans to retain OpenSky customers who graduate from the secured product through the limited use of partially and fully unsecured credit products. While the latest public account number is from 2021, when OpenSky accounts exceeded 700,000, the current strategy is clearly focused on scaling this digital, standardized offering.

The customer relationship mix involves:

• Dedicated, consultative service for Commercial Banking.
• Personalized support for local businesses and entrepreneurs.
• Modern, self-service digital tools for daily banking tasks.
• Nationwide, high-volume credit card servicing via OpenSky.

Finance: draft the 13-week cash view by Friday.

Capital Bancorp, Inc. (CBNK) - Canvas Business Model: Channels

Capital Bancorp, Inc. uses a multi-faceted channel strategy to reach its customer segments, blending a limited physical footprint with significant national digital and specialized lending platforms. As of September 30, 2025, the company managed total assets of approximately $3.4 billion.

The physical presence is deliberately concentrated, focusing on key Mid-Atlantic markets and strategic expansion. The limited physical branch network includes locations in:

• MD: Rockville and Columbia.
• VA: Reston.
• DC: Washington D.C.
• FL: Ft. Lauderdale.
• IL: N. Riverside.
• NC: Raleigh (new branch opened March 3, 2025).

This physical network is supplemented by a robust digital banking platform, which includes both web and mobile access for customers, following the launch of a new digital banking platform in partnership with Q2.

National direct-to-consumer channels are critical for scale, primarily driven by the OpenSky credit card operation and Capital Bank Home Loans. OpenSky, which provides a nationwide secured credit card to help under-banked customers, saw its accounts exceed 700,000 as of 2021. By Q2 2025, OpenSky contributed 16% of the company's net income, down from 45% in FY 2023, and accounted for 31% of year-to-date fee revenue. Capital Bank Home Loans offers mortgage lending across all 50 states.

The Windsor Advantage platform serves as a specialized national channel for loan origination and servicing, operating as a subsidiary of Capital Bancorp, Inc. This platform offers a comprehensive outsourced U.S. Small Business Administration (SBA) 7(a) and U.S. Department of Agriculture (USDA) lending platform to other financial institutions. Windsor Advantage's total servicing portfolio stood at $2.5 billion at December 31, 2024. Its national reach extends to 140+ Lenders in 36 States. This channel has become the dominant contributor to profitability, generating 78% of Q2 2025 net income, and accounted for 36% of year-to-date fee revenue in Q2 2025. Since 2010, the platform has facilitated over $5.5+ Billion in funded SBA and USDA loans.

Here is a snapshot of the scale and contribution of the national/digital channels as of mid-to-late 2025:

The company's revenue for the quarter ending September 30, 2025, was $58.22M, marking a 41.23% growth for that quarter.

For the third quarter of 2025, the Return on Average Assets (ROA) was 1.77%, and the Return on Average Equity (ROE) was 15.57%.

The efficiency ratio improved to 65.1% in Q2 2025, from 67.1% a year earlier.

Finance: draft 13-week cash view by Friday.

Capital Bancorp, Inc. (CBNK) - Canvas Business Model: Customer Segments

You're looking at the customer base for Capital Bancorp, Inc. (CBNK) as of late 2025. The business model clearly segments its focus across commercial lending, national credit cards, and mortgage origination, which is key to understanding their revenue mix.

Small to medium-sized businesses (SMBs) and entrepreneurs

This group is served through the Commercial Bank, which includes Government Guaranty Lending (GGL) with niche expertise in Solar and Renewable Energy. The Commercial Bank contributed 16% to the fully-allocated illustrative net income for Q2 2025. Capital Bank, N.A. announced an expansion of its Small Business Administration (SBA) team in December 2025, signaling a deliberate investment to grow its national presence in small business lending. The bank has a proven ability to originate $150+ million per year of loans within its strong Commercial & Industrial (C&I) pipeline.

Not-for-profit associations in the Washington D.C./Baltimore metro areas

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A., providing services to not-for-profit associations primarily in Maryland, Virginia, and the District of Columbia. The bank operates branches in key metro areas including Washington D.C., Reston, VA, Rockville, MD, and Columbia, MD, as of September 30, 2025. While specific revenue contribution from this exact sub-segment isn't broken out, the core geographic focus of the bank's physical presence centers here.

National consumer base seeking secured credit cards (OpenSky)

The OpenSky division targets consumers seeking to re-establish credit. As of Q2 2025, OpenSky accounted for 16% of the fully-allocated illustrative net income. The division has scaled significantly; OpenSky® accounts exceeded 700,000 by 2021. For the OpenSky Secured Visa® Credit Card in Q1 2025, the average approval rate was 89.39%. This product line is designed to help under-banked customers, with options like the Secured Visa® requiring a minimum deposit of $100 or the Plus Secured Visa® requiring a minimum deposit of $300.

Mortgage borrowers across all 50 states

Capital Bank Home Loans (CBHL) serves a national base, though its originations show a concentration in its core markets. As of the end-of-2023 data, approximately 62.8% of CBHL loan originations by volume occurred within Capital Bank's operating markets of Maryland, Virginia, and Washington, D.C.. The remaining originations are national in scope, primarily utilizing a consumer direct channel. The bank also has a servicing portfolio, which stood at $2.9 Billion as of Q2 2025.

Here's a quick look at the segment contributions based on Q2 2025 illustrative net income allocation:

You can see the overall company health supports these segments; total assets for Capital Bancorp, Inc. were $3.389 billion as of Q2 2025, and revenue for the quarter ending September 30, 2025, was $58.22M.

The customer base diversity is supported by the following operational facts:

• Capital Bank, N.A. operates bank branches in seven locations as of September 30, 2025.
• The national OpenSky secured card average approval rate was 89.39% in Q1 2025.
• The company is actively growing its SBA team to better serve entrepreneurs nationwide.
• The mortgage origination split for Capital Bank Home Loans was approximately 62.8% in core DMV markets in 2023.

Capital Bancorp, Inc. (CBNK) - Canvas Business Model: Cost Structure

You're looking at the cost side of Capital Bancorp, Inc. (CBNK)'s operations as of late 2025, which is heavily influenced by its funding structure and recent business model transformation, particularly with the integration of IFH.

Interest Expense on Deposits and Borrowings

The cost of funding remains a major component. For the first quarter of 2025 (1Q 2025), the Interest Expense on deposits and borrowings was reported at $\mathbf{\$16.6 \text{ million}}$. This figure reflected a decrease of $\mathbf{\$0.6 \text{ million}}$ from the linked fourth quarter of 2024, primarily due to a reduction in the average balance of borrowings. Year-over-year, however, this expense was up $\mathbf{25.1\%}$, driven by organic growth and the IFH acquisition.

Key related metrics from 1Q 2025 include:

• Total cost of deposits: $\mathbf{2.42\%}$.
• Cost of interest-bearing deposits: $\mathbf{3.37\%}$.
• Net purchase accounting accretion included in interest expense: $\mathbf{\$1.1 \text{ million}}$.

Personnel and Compensation Costs

Personnel costs reflect the growth in staff supporting the expanded footprint and specialized lending areas. While specific compensation dollar amounts for 2025 aren't detailed here, the scale of the organization is indicated by employee counts reported near the end of 2025, hovering around $\mathbf{407}$ or $\mathbf{398}$ employees, depending on the reporting period. A clear action driving future personnel costs is the strategic expansion of the Small Business Administration (SBA) team, announced on December 4, 2025, which involved adding several experienced SBA professionals.

Technology and Data Processing Costs

Technology investment supports the digital platform and specialized operations like OpenSky®. Specific line-item costs for technology and data processing are embedded within other expense categories in the available summaries. However, the bank highlighted advancements, such as launching a new Digital Banking Platform in partnership with Q2 in May 2025, suggesting ongoing, material technology expenditure.

General and Administrative Expenses and Operational Efficiency

The overall cost control effectiveness is measured by the efficiency ratio, which incorporates general and administrative expenses (G&A) against revenue. Capital Bancorp, Inc. (CBNK) has shown improvement in this area:

The Core Efficiency Ratio for the first quarter ended March 31, 2025, was $\mathbf{62.8\%}$. By the second quarter of 2025, the overall Efficiency Ratio stood at $\mathbf{65.1\%}$, down from $\mathbf{67.1\%}$ a year prior, showing that overhead costs as a percentage of revenue are tightening.

Capital Bancorp, Inc. (CBNK) - Canvas Business Model: Revenue Streams

Capital Bancorp, Inc.'s revenue streams are built upon a diversified model spanning traditional banking activities and specialized national lending/servicing platforms. The core of the revenue generation remains the spread between interest earned on assets and interest paid on liabilities.

Net Interest Income (NII) is the primary driver. For the third quarter of 2025, Capital Bancorp, Inc. reported a Net Interest Income (NII) of $52.0 million. This NII contributed significantly to the total revenue of $58.47 million reported for Q3 2025.

Non-interest income, which includes various fees, is the second major component. For Q3 2025, the total non-interest income was approximately $6.47 million (derived from Total Revenue of $58.47 million minus NII of $52.0 million). This fee income is sourced from several key areas, including the specialized lending and servicing divisions.

The Windsor Advantage platform, which provides an outsourced U.S. Small Business Association (SBA) 7(a) and U.S. Department of Agriculture (USDA) lending platform, generates revenue through servicing fees. The total servicing portfolio size for Windsor Advantage stood at $2.6 billion as of March 31, 2025. For the first quarter of 2025 (1Q 2025), the Gross government loan servicing revenue totaled $4.6 million, which included $1.0 million of Capital Bank related servicing fees. For comparison, the Gross government loan servicing revenue in the preceding quarter (4Q 2024) was also $4.6 million, but it included $0.5 million of Capital Bank related servicing fees. The noninterest income in 1Q 2025 saw a decrease of $0.5 million attributed to lower government loan servicing revenue (Windsor).

The OpenSky national credit card portfolio contributes through interest and fees. As of the end of 4Q 2024, the OpenSky division had 552,566 open customer accounts. Specific interest and fee income for Q3 2025 is not explicitly detailed, but the OpenSky division is a recognized contributor to overall revenue. For context on fee structure, the OpenSky Secured Visa Credit Card has an Annual Fee of $35 and the APR for Cash Advances is 24.14%.

Revenue is also recognized from the sale of loans originated through the Capital Bank Home Loans division. The Gain on sale of mortgage loans was $1.9 million in the fourth quarter of 2024 (4Q 2024), which resulted from selling $77.4 million of mortgage loans.

The breakdown of key revenue-generating metrics is presented below:

Additional data points related to fee income streams include:

• Noninterest income for 1Q 2025 was $12.5 million.
• Core fee revenue for 1Q 2025 was $12.5 million.
• The OpenSky Secured Visa Credit Card has a stated Annual Fee of $35.
• The Cash Advance APR for the OpenSky card is 24.14%.