Capital Bancorp, Inc. announced the completion of its private placement of $10.0 million of 5.00% Fixed-to-Floating Rate Subordinated Notes due 2030 (the Notes) to mostly local, Washington D.C. metropolitan area investors and some institutional investors. The proceeds from the Notes were used to retire $13.5 million of 6.95% subordinated debt issued in 2015 and due December 1, 2025 (the Old Notes). The Notes have a maturity date of November 30, 2030 and will bear interest at a fixed annual rate of 5.00% for the first five years of the term. Thereafter, the interest rate of the Notes shall reset quarterly to an interest rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR) plus 490 basis points. The Notes are redeemable, in whole or in part, starting on November 30, 2025 and on any interest payment date thereafter. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company. The Company handled the placement in-house and Nelson Mullins Riley & Scarborough LLP served as legal counsel to the Company.