Capital Bancorp, Inc. - Raises $13,500,000 Growth Capital from Private Investors
Proceeds from capital raise will fund organic growth for the Washington, DC metro area bank
ROCKVILLE, Md., Dec. 11, 2015 /PRNewswire/ -- Capital Bancorp, Inc., parent of Capital Bank, N.A., recognized earlier this year as among the top-performing banks in the nation with assets under $2 billion by American Banker Magazine, has recently completed a capital raise of $13.5 million. Working with Sandler O'Neill + Partners, L.P., as placement agent and Holland & Knight as legal counsel, the Bank issued subordinated notes, due 2025, through a private placement with institutional investors.
The proceeds from the capital raise, completed at the end of November, will be used to support Capital Bank's continued organic growth across its regional commercial banking business as well as its growing nationwide consumer-lending businesses in mortgages and credit cards. More immediately, the funds will give Capital Bank the ability to refinance outstanding debt and to buy back shares to further enhance shareholder value, as well as fund potential future acquisitions.
"We made the decision to raise capital with clear goals in mind," says Ed Barry, CEO of Capital Bank, N.A. "With strong management and a solid infrastructure across all of our divisions, we are in a good place to accelerate our growth trajectory in the Washington DC-Baltimore MSA and believe that this capital infusion will help us expand our already proven strategy."
Capital Bank has seen return-on-asset growth of at, or nearly, two times its peer group averages with a compounded annual growth rate of 27% since 2010. In addition, superior balance sheet and earnings have realized a compounded annual growth of 30% also in the last five years.
Capital Bank commercial lending uses an efficient local-based branch model that delivers high touch service to underserved business owners and investors with complex needs. The bank's consumer lending platforms provide consumers with easy access to competitively priced mortgages including VA home loans, and a secured credit card offering helps consumers with little or poor credit history build credit.
For more information on Capital Bank or to interview Ed Barry, please contact Ksenia Valentine at 301-468-8848 or email.
ABOUT CAPITAL BANK
Capital Bank, N.A., is a leading private bank in the Washington, D.C. metropolitan area that offers a range of services encompassing cash management, commercial lending, consumer credit and residential mortgage/Veterans Administration home loans. Capital Bank's core commercial banking and lending business includes two rankings by the U.S. Small Business Administration (SBA), ranked number two among community lenders and in the top ten among all lenders in the Washington Metropolitan District for loan volume for Fiscal Year 2014. With double-digit asset growth over the past three years, Capital Bank has more than $700 million in assets. For more information, visit http://www.capitalbankmd.com. Member FDIC. An Equal Housing Lender.
SOURCE Capital Bank N.A.
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