Capital Bancorp, Inc. (CBNK) names Crowe LLP as new independent auditor
Rhea-AI Filing Summary
Capital Bancorp, Inc. replaced its independent auditor. On August 14, 2026, the Audit Committee dismissed Elliott Davis, PLLC and approved Crowe LLP as independent registered public accounting firm for the fiscal year ending December 31, 2026. The change was made to engage a larger firm with additional resources and industry specialization to support the company’s growth.
Audit reports from Elliott Davis for 2024 and 2025 contained no adverse opinions or qualifications, and the company reports no disagreements or other reportable events with Elliott Davis, other than a previously disclosed material weakness in internal control over financial reporting in the 2025 Form 10‑K. The company states it did not consult Crowe LLP on accounting matters or audit opinions before this appointment, aside from earlier valuation work related to the October 1, 2024 acquisition of Integrated Financial Holdings, Inc.
Positive
- None.
Negative
- The company previously disclosed a material weakness in internal control over financial reporting for the year ended December 31, 2025, indicating control deficiencies that could affect financial reporting reliability.
Insights
Analyzing...
8-K Event Classification
2 items: 4.01, 9.01
2 items
Item 4.01
Changes in Registrant's Certifying Accountant
Governance
The company changed its independent auditing firm, which may involve disagreements on accounting matters.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Auditor change date: August 14, 2026
Audit years covered by Elliott Davis reports: Years ended December 31, 2025 and 2024
New auditor engagement period: Fiscal year ending December 31, 2026
+1 more
4 metrics
Auditor change date
August 14, 2026
Date the company dismissed Elliott Davis, PLLC and approved Crowe LLP
Audit years covered by Elliott Davis reports
Years ended December 31, 2025 and 2024
Periods for which Elliott Davis, PLLC issued audit reports with no adverse opinions
New auditor engagement period
Fiscal year ending December 31, 2026
Crowe LLP appointed as independent registered public accounting firm for this fiscal year
Acquisition valuation engagement date
October 1, 2024
Date of Integrated Financial Holdings, Inc. acquisition for which Crowe LLP performed valuation work
Key Terms
independent registered public accounting firm, material weakness, internal control over financial reporting, reportable events, +1 more
5 terms
independent registered public accounting firm financial
"the Company’s independent registered public accounting firm for the fiscal year"
An independent registered public accounting firm is an outside accounting company officially registered with the government regulator to examine and report on a public company's financial records and controls. Investors treat its reports like an impartial inspector’s certificate — they add credibility to financial statements, help spot errors or misleading claims, and reduce the risk that shareholders are relying on unchecked or biased numbers.
material weakness financial
"other than a material weakness in the Company's internal control over"
A material weakness is a significant flaw in the systems and checks a company uses to ensure its financial reports are accurate, meaning errors or fraud could happen and not be caught. For investors it matters because it raises the risk that reported results are unreliable—similar to finding a hole in a ship’s hull—potentially leading to corrected financials, regulatory action, reduced trust, and negative effects on stock value and borrowing costs.
internal control over financial reporting financial
"material weakness in the Company's internal control over financial reporting disclosed"
Internal control over financial reporting is a company’s system of procedures and checks designed to make sure its financial statements are accurate and complete, like a set of guardrails and verification steps that catch mistakes or fraud before numbers are published. Investors care because strong controls make reported results more trustworthy, lower the risk of surprise restatements or regulatory problems, and give greater confidence when valuing the company or comparing it to peers.
reportable events regulatory
"any reportable events requiring disclosure pursuant to Item 304(a)(1)(v)"
Reportable events are significant incidents or changes a company is legally required to disclose to regulators and the public, such as major safety problems, legal actions, financial irregularities, or management changes. They matter to investors because these events can alter a company’s risk profile or future performance, much like a dashboard warning light signals a problem that could affect a car’s safety or reliability. Timely disclosure helps investors make informed decisions and maintain market fairness.
Emerging growth company regulatory
"Emerging growth company"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
FAQ
What auditor change did Capital Bancorp, Inc. (CBNK) disclose?
Capital Bancorp, Inc. dismissed Elliott Davis, PLLC and approved Crowe LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2026, following approval by the company’s Audit Committee.
Why did Capital Bancorp, Inc. (CBNK) select Crowe LLP as its new auditor?
The Audit Committee chose Crowe LLP to engage a larger independent registered public accounting firm with additional resources and industry specialization the company believes are needed to support its continued growth and expanding operations.
Were there any disagreements between Capital Bancorp, Inc. (CBNK) and Elliott Davis, PLLC?
The company reports no disagreements with Elliott Davis, PLLC on accounting principles, financial statement disclosure, or auditing scope and procedures during 2024, 2025, and through August 14, 2026, aside from a previously disclosed material weakness.
What internal control issue did Capital Bancorp, Inc. (CBNK) report?
Capital Bancorp, Inc. disclosed a material weakness in internal control over financial reporting in its Form 10‑K for the year ended December 31, 2025, which is referenced again in connection with the auditor change.
Did Capital Bancorp, Inc. (CBNK) previously work with Crowe LLP?
Yes. In connection with the October 1, 2024 acquisition of Integrated Financial Holdings, Inc., the company engaged Crowe LLP for valuation work on the acquired loan portfolio, deposit intangibles, customer relationships, trade name, assembled workforce, and Windsor Advantage, LLC.
Did Capital Bancorp, Inc. (CBNK) consult Crowe LLP on accounting opinions before appointing it auditor?
Apart from prior valuation services, the company states that neither it nor anyone on its behalf consulted Crowe LLP on applying accounting principles, potential audit opinions, disagreements, or reportable events before Crowe’s appointment.
AI-generated analysis. How Rhea-AI works. Not financial advice.
