CBNK - Capital Bancorp: Anticipated Decline In Mortgage Refinancing To Drag Earnings

• An increase in interest rates will hurt mortgage refinancing activity. Mortgage purchasing volume is likely to remain unscathed.
• Economic strength in the country will likely drive decent loan growth this year. Further, recent team additions will result in loan additions.
• The margin is moderately sensitive to interest rate changes. Further, CBNK has the opportunity to improve its asset mix this year, which can further help the margin.
• The December 2022 target price suggests a decent upside from the current market price.

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