January 31, 2019

Dear Shareholder,

As the polar vortex and bitter cold settles in on Madison this week, I am reminded of my thoughts last January while I pondered the year ahead. I wondered how the economy would react to the predicted rate increases and what new challenges were on the horizon. It’s now evident that my team responded well to the challenging goals set for them a year ago by hitting and exceeding expectations in most categories. So as we approach record low temperatures outside, I am enjoying the contrast of reporting a record high in key areas of financial and strategic performance for 2018 with record earnings, strong balance sheet growth, solid loan quality and key hires.

The financial highlights for the 12 months ending December 31, 2018 include:

  • Consolidated Net Income of $4,619,523, an increase of 53% over 2017
  • Consolidated Earnings Before Taxes increased 12% to $5,971,131
  • Bank Return on Equity of 11.81% compared to 8.12% the previous year
  • Bank Return on Assets of 1.30% versus 0.85% for the same period in 2017
  • Earnings per share reached $4.82, also up 52% in the past 12 months
  • Net loan balances grew $34,108,804, up 14% to $278,725,719
  • Only two loans with past-due payments over 30 days at year-end totaling $96,290
  • Bank Gross Revenues of $15,812,300 grew 16% in the past 12 months

Clearly, 2018 will be remembered as one of the strongest in the 23 year history of Capitol Bank.

Stock Update

Enclosed is a historical summary of key financial measures for Capitol Bankshares, Inc. and Capitol Bank including stock activity. Private party stock transaction levels were similar to the previous year with 28,535 shares sold in 2018. The last sale in 2018 was priced at $53.50 a share representing an increase of 7%. I should mention that 1500 shares sold in January 2019 at $55 a share. If you have questions regarding your shares or are interested in purchasing stock, please contact Paige Janquart or me at 608-836-1616 for more information.

Our Team

Any success Capitol Bank has achieved in the past is directly attributable to the quality team we have assembled over the years. As evidence of our banker’s value, you may find these statistics interesting. Our experienced bankers manage an average of $7.4 million in assets per employee compared to our bank peers average of $5.32 million. Additionally, the amount of pre-tax income generated per Capitol Bank employee is $120,914 compared to our bank peers level of $75,740. These numbers demonstrate that Capitol Bank’s #1 asset is our team of qualified bankers and our future success depends on our ability to attract and retain talent. Much progress was made in 2018 as we added seven full-time employees. They include:

Eli Boecker, Credit Analyst
Kim Brewer, Commercial Lending Administrator
Heather Flood, Assistant Vice President, Deposit Operations
Natalie Gregerson, Director of Marketing
Briel Kohl, Portfolio Manager, Commercial Lending
Brianna Johnson, Deposit Operations Specialist
Sam Ruenger, Universal Banker – Verona Bank

We are also happy to announce the hiring of two senior level employees in recent weeks who bring a wealth of experience to the management team.

Jim Saer, Senior Vice President, Commercial Lending
Ami Myrland, Senior Vice President, CFO (starting in February 2019)

The leadership team has been expanded to support the future growth of the Bank. With the evolution in technology and increased regulation, Capitol Bank is well-positioned to continue to grow market share.

Retirement Announcement

Gene Bembenek, Executive Vice President and CFO has decided to retire in the spring of 2019. Gene joined the Bank in 2007 and was instrumental in helping streamline many of our backroom functions. During Gene’s tenure, Capitol Bank grew from $165 million to $370 million today. His varied background helped the Bank navigate some historically turbulent times in the banking industry. We wish Gene the best as he embarks on a new chapter in his life.

As always, we appreciate the support our shareholders provide the Bank and are eager to help you with your banking needs. We also welcome your input and suggestions towards improving the customer experience.

Please contact me or a member of the Capitol Bank Team at any time.

Best wishes.


Ken Thompson Signature

Ken Thompson President / CEO

Capitol Bankshares Documents

Below are a few frequently requested documents.
Authorization Agreement for Automatic Deposit
Letter of Transmittal – Transferee
Letter of Transmittal – Transferor

Buy & Sell Stock

Please contact Capitol Bank if you are interested in buying or selling stock shares.

Download the 2018 Annual Report

Capitol Bank celebrated its 23rd anniversary in 2018. Read the full report on the excellent year we had.

Download the PDF

Board of Directors


Kenneth D. Thompson
President & CEO, Capitol Bank
President & Chairman of the Board


Frank E. Burgess
Chairman, Madison Investment Holdings, Inc.

Sean Cleary - Cleary Building Corp.

Sean Cleary
President of Cleary Holdings Inc., Cleary Building Corp., and Cleary Transport LLC.


Joseph P. Hildebrandt
Managing Director
DaneVest Tech Fund I, LP
Phenomenelle Angels Fund I
Secretary, Capitol Bankshares, Inc.


Erik S. Johnson
Chairman & CEO, Hy Cite Corporation

Mark Koehl, CPA
Retired, Wipfli LLP


Gerald C. Peterson
Owner, Peterson Investments
Treasurer, Capitol Bankshares, Inc.


Theodore J. Richards
Chairman of the Board, Strand Associates, Inc.


Robert W. Tensfeldt
Private Investor


Albert L. Toon, Jr.
Olson Toon Landscaping, Inc.
Private Investor
Vice President, Capitol Bankshares, Inc.

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