CBNK Reports 3Q EPS of $0.89; 3Q ROA of 1.77% and ROE of 15.57%; Continued Strong Growth in Loans and Book Value

Written by Customer Service on October 27, 2025. Posted in Earnings Releases And Operating Results.

Third Quarter 2025 Highlights

GAAP Net Income of $15.1 million, or $0.89 per share, and return on average assets (“ROA”) of 1.77%
- Core net income⁽¹⁾ of $12.2 million, or $0.72 per share, and Core ROA⁽¹⁾ of 1.43%
Book value per common share of $23.80 at September 30, 2025, increased $0.88 compared to 2Q 2025, and increased $3.67 when compared to 3Q 2024
- Tangible book value per share⁽¹⁾ of $21.27, increased 3.1% (not annualized), or $0.63 as compared to 2Q 2025, and increased 5.7%, or $1.15 compared to 3Q 2024
Return on average equity (“ROE”) of 15.57%, and return on average tangible common equity (“ROTCE”)⁽¹⁾ of 17.49%
- Core ROE⁽¹⁾ of 12.56%, and Core ROTCE⁽¹⁾ of 14.15%
Gross Loans⁽²⁾ grew $82.2 million, or 11.9% (annualized), during 3Q 2025, and growth of $714.5 million year-over-year including $341.0 million from organic growth and $373.5 million from the IFH acquisition
Total deposits decreased $28.7 million, or (3.9)% (annualized), from 2Q 2025. Year-over-year growth of $725.8 million includes $459.0 million from the acquisition of IFH, and $266.8 million from organic growth, or 33.2% from 3Q 2024
- Customer Deposit³ growth of $3.9 million, or 0.6% (annualized) from 2Q 2025, and $641.3 million year-over-year, or 31.5% from 3Q 2024, including $347.8 million of organic growth, and $293.5 million from the acquisition of IFH
Net Interest Income increased $4.4 million, or 9.2% (not annualized), from 2Q 2025, mainly due to the $4.6 million acceleration of accretion from refinancing callable brokered time deposits acquired in the IFH transaction, and increased $13.7 million, or 35.6%, year-over-year, primarily driven by strong organic growth and the acquisition of IFH
Net Interest Margin (“NIM”) of 6.36% increased 32 bps compared to 2Q 2025 and decreased 5 bps compared to 3Q 2024 due to the acquisition of commercial loans from IFH, diluting the impact from OpenSky^™
- Commercial Bank NIM⁽¹⁾ of 4.64% increased by 28 bps (but decreased 43 bps when excluding purchase accounting accretion (“PAA”)), when compared to 2Q 2025, and increased 82 bps (or 12 bps excluding PAA), compared to 3Q 2024
  - 3Q 2025 net PAA of $5.5 million, or 67 bps of NIM and 70 bps of Commercial Bank NIM⁽¹⁾, increased $4.7 million, or 59 bps, compared to 2Q 2025
The allowance for credit losses to total loans (“ACL Coverage Ratio”) equaled 1.88% at September 30, 2025, and represented a 15 bps increase from June 30, 2025 and a 37 bps increase from September 30, 2024, primarily due to the acquisition of IFH loans. The Commercial Bank ACL Coverage Ratio⁽¹⁾ equaled 1.70% at September 30, 2025, compared to 1.56% at June 30, 2025
Fee Revenue (noninterest income) totaled $11.1 million, or 18.9% of total revenue for 3Q 2025, a decrease of $2.0 million, from 2Q 2025 primarily due to decreased government lending revenue (net gain on sale) and an increase of $4.4 million, from 3Q 2024
Cash Dividend of $0.12 per share declared by the Board of Directors

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⁽¹⁾ As used in this press release, Core net income, Core ROA, Core ROE, ROTCE, Core ROTCE, Commercial Bank NIM, Commercial Bank ACL Coverage Ratio, and Tangible Book Value are non–U.S. generally accepted accounting principles (“GAAP”) financial measures. These non-GAAP financial metrics excludes the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
⁽²⁾ Gross loans represent portfolio loans receivable, net of deferred fees and costs.
⁽³⁾ Customer Deposits represents total deposits excluding brokered deposits.

ROCKVILLE, Md., Oct. 27, 2025 (GLOBE NEWSWIRE) — Capital Bancorp, Inc. (the “Company”) (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the “Bank”), today reported net income of $15.1 million, or $0.89 per diluted share, for 3Q 2025, compared to net income of $13.1 million, or $0.78 per diluted share, for 2Q 2025, and $8.7 million, or $0.62 per diluted share, for 3Q 2024. Core net income⁽⁴⁾ for 3Q 2025 of $12.2 million, or $0.72 per diluted share, compared to $14.2 million, or $0.85 per diluted share in 2Q 2025, and $9.2 million, or $0.66 per diluted share, for 3Q 2024.

The Company also declared a cash dividend on its common stock of $0.12 per share. The dividend is payable on November 26, 2025 to shareholders of record on November 10, 2025.

“We continue to execute on our strategic plan and see progress in driving long term growth and profitability,” said Ed Barry, CEO of the Company and the Bank. “The diversity of our business continues to be a strength as outperformance in our government servicing business offset a decline in USDA gain-on-sales revenues.”

“With and without the one-time items this quarter, we continue to grow our tangible book value and report solid returns on equity and tangible book value,” said Steven J Schwartz, Chairman of the Company. “We believe our continued investment in technology and infrastructure, while negatively impacting our current core earnings, will help us provide long-term superior returns to our shareholders. I am also pleased that the uptick in our credit metrics is almost entirely due to loans acquired in the IFH transaction, not to loans originated by Capital Bank. That gives me reason for confidence that our credit discipline, combined with our superior net interest margin, continues to constitute a core competency.”

Reconciliation of GAAP Net Income to Core (Non-GAAP) Net Income

The following table provides a reconciliation of the Company’s net income under GAAP to Core net income (non-GAAP) results excluding brokered time deposit call, merger-related expenses and other one-time non-recurring transactions.

	Third Quarter 2025											Second Quarter 2025
(in thousands, except per share data)	Income Before Income Taxes			Income Tax Expense (Benefit)			Net Income			Diluted Earnings per Share		Income Before Income Taxes		Income Tax Expense		Net Income		Diluted Earnings per Share
GAAP Net Income	$	19,867		$	4,802		$	15,065		$	0.89	$	17,099	$	3,963	$	13,136	$	0.78
Deduct: Income from the Call of Brokered Time Deposits		(4,618	)		(1,129	)		(3,489	)
Add: Merger-Related Expenses		697			122			575					1,398		328		1,070
Core Net Income⁽¹⁾	$	15,946		$	3,795		$	12,151		$	0.72	$	18,497	$	4,291	$	14,206	$	0.85

	Nine Months Ended September 30, 2025
(in thousands except per share data)	Income Before Income Taxes			Income Tax Expense (Benefit)			Net Income			Diluted Earnings per Share
GAAP Net Income	$	55,263		$	13,130		$	42,133		$	2.50
Deduct: Income from the Call of Brokered Time Deposits		(4,618	)		(1,129	)		(3,489	)
Add: Merger-Related Expenses		3,361			752			2,609
Core Net Income⁽¹⁾	$	54,006		$	12,753		$	41,253		$	2.45

^{Note: The income tax expense reflects the non-deductibility of certain merger-related expenses.}

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¹ As used in this press release, Core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Third Quarter 2025 Results

Earnings Summary

Net income of $15.1 million, or $0.89 per diluted share, compared to net income of $13.1 million, or $0.78 per diluted share, for 2Q 2025, and $8.7 million or $0.62 per diluted share, for 3Q 2024. 3Q 2025 core net income⁽¹⁾ of $12.2 million, or $0.72 per diluted share, compared to 2Q 2025 of $14.2 million, or $0.85 per diluted share.

During the quarter there were two non-recurring events that impacted net income:

The Bank identified Fee Revenue that was also previously recognized as Interest Income in the first and second quarter. As a result, the Bank recorded a one-time reversal of $1.3 million of interest income (“Interest Income Adjustment”). There was no corresponding adjustment needed to Fee Revenue as the fee income was correctly recognized during those periods.
Also, during the quarter, the Bank issued a call of brokered time deposits acquired from the IFH transaction, resulting in the accelerated accretion of $4.6 million (“Call of Brokered Time Deposits”).
Net interest income of $52.0 million increased $4.4 million, or 9.2% (not annualized), compared to 2Q 2025, and increased $13.7 million, or 35.6%, year-over-year.
- Interest income of $64.9 million increased $0.3 million, or 0.5% (not annualized), over 2Q 2025, and increased $12.3 million, or 23.3%, year-over-year. When excluding the $1.3 million Interest Income Adjustment, interest income increased $1.6 million from 2Q 2025, primarily driven by $1.3 million of growth from OpenSky^™and $0.3 million from the investment portfolio, while the increase year-over-year was primarily driven by organic growth and the acquisition of IFH.
  - Interest income included $0.2 million from net purchase accounting accretion in 3Q 2025, compared to $0.4 million in 2Q 2025. There was no impact related to purchase accounting during 3Q 2024.
- Interest expense of $12.9 million decreased $4.1 million, or 24.0% (not annualized) compared to 2Q 2025, and decreased $1.4 million, or 9.7%, year-over-year. When excluding the $4.6 million one-time impact from the Call of Brokered Time Deposits, interest expense increased $0.5 million, or 3.2%, compared to 2Q 2025, primarily driven by a shift in portfolio mix.
  - Interest expense included a $5.3 million benefit from net purchase accounting accretion in 3Q 2025, which included $4.6 million from the Call of Brokered Time Deposits, compared to a $0.9 million benefit in 2Q 2025. There was no impact related to purchase accounting during 3Q 2024.
The 3Q 2025 provision for credit losses was $4.7 million, an increase of $0.6 million from 2Q 2025. Excluding the impact of a loan sale during 2Q 2025 from the acquired IFH portfolio, the provision decreased $0.9 million quarter over quarter. Net charge-offs totaled $2.5 million, or 0.35% of portfolio loans (annualized), down from $5.1 million or 0.75% of portfolio loans (annualized), in 2Q 2025. Net charge-offs in the quarter include $0.3 million from the Commercial Bank and $2.1 million from OpenSky^™ loans.
- At September 30, 2025, the ACL Coverage Ratio was 1.88%, up $5.6 million or 15 bps from June 30, 2025. The increase in the ACL Coverage Ratio over prior quarter was primarily driven by a 12 bps impact resulting from the reassignment of an IFH acquired loan from non-purchase credit deteriorated (“non-PCD”) loan to a purchase credit deteriorated (“PCD”) loan during the quarter as a measurement period adjustment to the Day-1 purchase accounting, increasing the allowance for credit losses (“ACL”) by $3.4 million.

Earnings Summary (Continued)

Fee Revenue of $11.1 million decreased $2.0 million, compared to 2Q 2025 and increased $4.4 million year-over-year primarily due to the contributions made by the businesses IFH brought to the merged entity. During 3Q 2025, core fee revenue⁽¹⁾of $11.1 million decreased $2.0 million as a result of a $3.1 million decrease in government lending revenue (net gain on sale), $0.8 million lower SBIC investment income, and a $0.1 million decrease in other income, offset by a $1.0 million increase in loan servicing revenue, a $0.6 million increase in government loan servicing revenue (Windsor Advantage^™), a $0.2 million increase in credit card fees from OpenSky^™, and $0.2 million increase in mortgage banking revenue. Core fee revenue mix was 18.9% of total revenue for 3Q 2025, compared to 21.6% during 2Q 2025, and 14.7% during 3Q 2024.
Noninterest expense of $38.4 million decreased $1.2 million compared to 2Q 2025 and increased $8.6 million compared to 3Q 2024. Core noninterest expense⁽¹⁾of $37.7 million decreased $0.5 million compared to 2Q 2025 and increased $8.5 million compared to 3Q 2024. Core comparisons include:
- The decrease of $0.5 million quarter-over-quarter was driven by decreases from personnel expenses and regulatory related expenses, offset by growth in advertising expense mainly from OpenSky^™.
- Year-over-year expense growth of $8.6 million was primarily due to the acquisition of IFH.
Income tax expense of $4.8 million, or 24.2% of pre-tax income for 3Q 2025, increased $0.8 million from $4.0 million, or 23.2% of pre-tax income for 2Q 2025. The Core effective income tax rate⁽¹⁾ for 3Q 2025 and 2Q 2025 would have been 23.8% and 23.2%, respectively.

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¹ As used in this press release, Core fee revenue, Core noninterest expense, and Core effective income tax rate are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Balance Sheet

Total assets of $3.4 billion at September 30, 2025 increased $0.8 million from June 30, 2025. Total assets growth year-over-year of $828.7 million, or 32.4%, included $559.4 million acquired with the IFH acquisition, net of purchase accounting, and $269.3 million of organic growth.

Gross Loans of $2.82 billion at September 30, 2025 increased $82.2 million, or 11.9% (annualized), from June 30, 2025 and increased $714.5 million year-over-year including $373.5 million from the acquisition of IFH and $341.0 million of organic growth.
- Compared to June 30, 2025, growth was primarily driven by $29.3 million from residential real estate, $25.9 million from commercial and industrial (“C&I”), $20.9 million from commercial real estate (“CRE”), and $5.5 million from OpenSky^™.
- C&l loans, plus owner-occupied commercial real estate loans totaled 37.6% of total portfolio loans at September 30, 2025, consistent with the prior quarter, and 29.6% at September 30, 2024.
Total deposits of $2.91 billion at September 30, 2025 decreased $28.7 million, or 3.9% (annualized), from June 30, 2025, and increased $725.8 million, or 33.2% (annualized) from September 30, 2024. When excluding a decrease in brokered time deposits of $32.6 million, customer deposits increased $3.9 million or 0.5% (annualized), including $28.9 million of growth in customer money market deposits, $20.6 million growth of noninterest-bearing deposits, offset by $43.7 million decrease from interest-bearing demand accounts and a $1.9 million decrease in customer time deposits. The increase of $725.8 million year-over-year was driven by $459.0 million from the acquisition of IFH, and $266.8 million from organic growth.
- Insured and protected¹ deposits were approximately $2.0 billion as of September 30, 2025 representing 67.0% of the Company’s deposit portfolio.
- Low-and-no interest-bearing DDA deposits of $1.1 billion, or 39.4% of deposits, increased $23.1 million, or 7.9% (annualized) from 2Q 2025, and increased $157.8 million, or 16.0% year-over-year, including $91.5 million from the acquisition of IFH, and $66.3 million of organic growth.
  - The average rate on the low-and-no interest-bearing deposits was 0.14% for 3Q 2025, which remained flat compared to 2Q 2025 and year-over-year.
The average portfolio loans-to-deposit ratio was 95.6% for 3Q 2025, compared to 96.2% for 2Q 2025, and 98.2% for 3Q 2024.
The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $232.6 million, or 6.9% of total assets, an effective duration of 2.6 years, with U.S. Treasury Securities representing 59% of the overall investment portfolio at September 30, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio improved $1.3 million during the quarter to negative $6.8 million after-tax as of September 30, 2025, which represents 1.7% of total stockholders’ equity. The Company does not have a held-to-maturity investment securities portfolio.
Liquidity – The Company maintains stable and reliable sources of available borrowings, generally consistent with prior quarter. Sources of available borrowings at September 30, 2025 totaled $858.4 million, compared to $834.8 from 2Q 2025. During 3Q 2025, available collateralized lines of credit totaled $767.8 million, unsecured lines of credit with other banks totaled $76.0 million and unpledged investment securities available as collateral for potential additional borrowings totaled $14.5 million.
Capital Positions – As of September 30, 2025, the Company reported a Common Equity Tier-1 capital ratio of 13.51%, compared to 13.58% at June 30, 2025. At September 30, 2025, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
- There were no shares repurchased and retired during the three months ended September 30, 2025, as part of the Company’s stock repurchase program. There is $11.9 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on February 28, 2026.

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¹ Protected deposits includes deposits that are indirectly protected under the product terms

Financial Metrics

Net Interest Margin – NIM of 6.36% for 3Q 2025, increased 32 bps compared to the prior quarter, and decreased 5 bps year-over-year. Commercial Bank NIM⁽¹⁾, of 4.64% increased 28 bps compared to the prior quarter, and increased 82 bps year-over-year. Net purchase accounting accretion for 3Q 2025 was 67 bps for NIM and 70 bps for Commercial Bank NIM⁽¹⁾.

3Q 2025 includes the previously mentioned $4.6 million (59 bps) Call of Brokered Time Deposits and $1.3 million (17 bps) Interest Income Adjustment. Excluding these items, 3Q 2025 NIM would have been 5.95% and Commercial Bank NIM would have been 4.21%.
The average yield on interest earning assets of 7.93% decreased 26 bps compared to the prior quarter, mainly due to a 16 bps impact from the Interest Income Adjustment. Excluding this item, the average yield in the quarter would have been 7.77% a decrease of 10 bps compared to 2Q 2025 as a result of the overall rate environment. The average yield decreased 86 bps year-over-year primarily due to the acquisition of commercial loans diluting the positive impact from OpenSky^™as well as the Interest Income Adjustment.
- The Commercial Bank Loan Yield⁽¹⁾ of 6.74% for 3Q 2025 decreased 40 bps compared to 2Q 2025, and decreased 41 bps year-over-year. Excluding the Interest Income Adjustment, average yield in the quarter would have been 6.94%, a decrease of 21 bps compared to 2Q 2025 and 22 bps year-over-year as a result of rate environment.
The total cost of deposits of 1.73% for 3Q 2025 decreased 63 bps compared to the prior quarter and decreased 91 bps year-over-year, both mainly due to the Call of Brokered Time Deposits. Excluding this item, total costs of deposits for the quarter would have been 2.36%, consistent with 2Q 2025, and a decrease of 29 bps year-over-year due to shifts in product mix from the acquisition of IFH.
The total cost of interest-bearing deposits decreased 88 bps quarter-over-quarter, due to the Call of Brokered Time Deposits. Total cost of interest-bearing deposits decreased 151 bps year-over-year, to 2.41% for 3Q 2025 primarily due to the Call of Brokered Time Deposits as well as shifts in product mix from the acquisition of IFH.
Net purchase accounting accretion of $5.5 million, or 67 bps of NIM and 70 bps of Commercial Bank NIM, during 3Q 2025, which includes $4.6 million, or 59 bps, from the Call of Brokered Time Deposits, increased $4.4 million from 2Q 2025. There was no impact from purchase accounting during 3Q 2024.

Fee Revenue Mix – The fee revenue mix was 18.9% of total revenue for 3Q 2025, compared to 21.6% during 2Q 2025, and 14.7% during 3Q 2024. The core fee revenue mix⁽¹⁾ was consistent with fee revenue mix for these periods.

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¹ As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, Core fee revenue mix and Core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Credit Metrics and Asset Quality – The ACL Coverage Ratio equaled 1.88% at September 30, 2025, an increase of 15 bps from June 30, 2025, and an increase of 37 bps year-over-year driven by a 12 bps impact resulting from the inclusion of an IFH acquired loan discussed below.

Credit metrics in the quarter were impacted by two loan relationships, both of which were acquired as part of the IFH transaction:

One relationship across three loans accounted for an $8.8 million increase to nonperforming assets. One loan of $5.0 million was previously identified as a PCD loan, which had a specific ACL reserve of $3.8 million established from Day-1 purchase accounting of the IFH acquisition. The other two are USDA loans with an unguaranteed balance of $3.8 million secured by underlying assets, which have no ACL reserve recorded.
The other relationship accounted for a $7.1 million increase to nonperforming assets. As previously mentioned, the loan was reassigned to a PCD loan as a measurement period adjustment to the Day-1 purchase accounting from the IFH acquisition. The measurement period adjustment for this loan resulted in recording a specific ACL reserve of $3.4 million during the quarter, or a 12 bps impact to the ACL Coverage Ratio.

Nonperforming assets were $52.2 million or 1.54% of total assets at September 30, 2025, an increase of $16.1 million or 47 bps compared to June 30, 2025, due to the $15.9 million or 47 bps of loans described above. Nonperforming assets increased $36.8 million or 94 bps year-over-year, mainly due to the acquisition of IFH. At September 30, 2025, substandard loans totaled $56.8 million, or 2.0% of total portfolio loans, compared to $44.6 million, or 1.7% of total portfolio loans, at June 30, 2025 and $23.8 million, or 1.2% of total portfolio loans, at September 30, 2024. The $12.2 million increase in substandard loans during the quarter was primarily driven by the $15.9 million of loans described above. At September 30, 2025, special mention loans totaled $71.5 million, or 2.5% of total portfolio loans, compared to $54.2 million, or 2.0% of total portfolio loans, at June 30, 2025, and $20.3 million, or 1.0% of total portfolio loans, at September 30, 2024.

Efficiency Ratios – The efficiency ratio was 60.8% for 3Q 2025, compared to 65.1% for 2Q 2025 and 66.1% for 3Q 2024. The core efficiency ratio⁽¹⁾ was 64.4%, for 3Q 2025, which increased from 62.8% compared to the prior quarter, and 64.9% for 3Q 2024.

Financial Metrics (Continued)

Performance Ratios – ROA was 1.77% for 3Q 2025, compared to 1.60% for 2Q 2025, and 1.42% for 3Q 2024. Core ROA⁽¹⁾for 3Q 2025 was 1.43%, compared to 1.73% for 2Q 2025, and 1.51% for 3Q 2024.

ROE was 15.57% for 3Q 2025, compared to 14.17% for 2Q 2025, and 12.59% for 3Q 2024. Core ROE⁽¹⁾ was 12.56% for 3Q 2025, compared to 15.33% for 2Q 2025, and 13.40% for 3Q 2024.
ROTCE⁽¹⁾ was 17.49% for 3Q 2025, compared to 16.10% for 2Q 2025, and 12.59% for 3Q 2024. Core ROTCE⁽¹⁾ for 3Q 2025 was 14.15%, compared to 17.39% for 2Q 2025, and 13.40% for 3Q 2024.

Book Value and Tangible Book Value – Book value per common share of $23.80 at September 30, 2025, increased $0.88 when compared to June 30, 2025, and increased $3.67 when compared to September 30, 2024. Tangible book value per common share⁽¹⁾ increased $0.63, or 3.1%, to $21.27 at September 30, 2025 when compared to June 30, 2025, and increased $1.15, or 5.7%, when compared to September 30, 2024. Tangible book value was impacted by the purchase accounting adjustments required as part of the IFH acquisition. Tangible book value per share⁽¹⁾ was equal to book value per share for periods prior to 4Q 2024.

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¹ As used in this press release, Core ROA, Core ROE, ROTCE, Core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Commercial Bank

Loan Growth – Portfolio loans⁽¹⁾ increased $76.0 million at September 30, 2025 compared to June 30, 2025, driven by $29.3 million from residential real estate, $25.9 million from C&I, and $20.9 million from CRE owner and non-owner occupied. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

Net Interest Income – Interest income of $49.0 million decreased $0.9 million from the prior quarter, primarily due to the Interest Income Adjustment, offset by growth in the Commercial Bank loan portfolio during the quarter. Interest expense of $12.8 million decreased $4.1 million, primarily due to the Call of Brokered Time Deposits offset by growth from money market deposits in 3Q 2025.

Credit Metrics – Nonperforming assets, comprised solely of nonaccrual loans, increased 50 bps to 1.63% of total assets at September 30, 2025 compared to June 30, 2025. Total nonaccrual loans at September 30, 2025 increased to $52.2 million compared to $36.2 million at June 30, 2025 primarily due to the two loan relationships acquired as part of the IFH transaction discussed previously.

Classified and Criticized Loans – At September 30, 2025, special mention loans totaled $71.5 million, or 2.5% of total portfolio loans, compared to $54.2 million, or 2.0% of total portfolio loans, at June 30, 2025. At September 30, 2025, substandard loans totaled $56.8 million, or 2.0% of total portfolio loans, compared to $44.6 million, or 1.7% of total portfolio loans, at June 30, 2025.

OpenSky^™

Accounts – During 3Q 2025, credit card accounts of 587.6 thousand increased by 2.3 thousand, or 0.4% (not annualized) from June 30, 2025, and increased 38.7 thousand, or 7.0% year-over-year.

Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves, of $136.5 million at September 30, 2025 increased by $5.5 million, or 4.2% (not annualized), compared to June 30, 2025 and $9.4 million, or 7.4%, year-over-year. Deposit balances of $166.9 million for 3Q 2025 decreased $2.1 million compared to 2Q 2025 and decreased $3.9 million, or 2.3% year-over-year. Gross unsecured loan balances of $53.6 million at September 30, 2025 increased $7.3 million, or 15.7% (not annualized), compared to $46.4 million at June 30, 2025, and increased $13.9 million year-over-year. Gross secured loan balances of $84.7 million at September 30, 2025 decreased $1.7 million, or 1.9% (not annualized), compared to $86.4 million at June 30, 2025, and decreased $4.9 million, or 5.5% (not annualized) year-over-year.

Net Interest Income – Interest income of $15.6 million increased $1.1 million compared to 2Q 2025. Average OpenSky credit card loan balances, net of reserves and deferred fees of $129.1 million for 3Q 2025, increased $7.7 million, or 6.3% (not annualized), compared to 2Q 2025.

Fee Revenue – Total fee revenue of $4.5 million increased $0.2 million from the prior quarter primarily driven by other credit-card related fees associated with the unsecured product.

Noninterest Expense – Total noninterest expense of $14.0 million increased $0.9 million compared to 2Q 2025, driven by growth from the unsecured product associated with advertising spend, data processing and professional fees.

OpenSky^™Credit – Portfolio credit metrics continued to be consistent with modeled expectations during 3Q 2025. The provision for credit losses of $2.8 million decreased $0.1 million when compared to the prior quarter. OpenSky’s unsecured loan product continues to be offered exclusively to current and former secured card customers to retain customers who have successfully improved their credit profiles. Unsecured loans have been offered by OpenSky since the fourth quarter of 2021 and have generally performed in accordance with management expectations over that time period.

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¹ Portfolio loans represents portfolio loans receivable excluding deferred origination fee

Capital Bank Home Loans

Originations of loans held for sale totaled $80.7 million during 3Q 2025, with $66.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.7 million, representing a 2.56% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $80.3 million during 2Q 2025, with $59.7 million of mortgage loans sold resulting in a gain on sale of loans of $1.6 million, representing a 2.68% gain on sale as a percentage of total loans sold.

Windsor Advantage^™

Gross government loan servicing revenue totaled $5.3 million, including $1.1 million of Capital Bank related servicing fees, during 3Q 2025. Gross government loan servicing revenue totaled $4.7 million, including $1.1 million of Capital Bank related servicing fees, during 2Q 2025. Windsor’s^™ total servicing portfolio was $3.2 billion at September 30, 2025, and $2.9 billion at June 30, 2025.

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited

	Quarter Ended									3Q25 vs 2Q25					3Q25 vs 3Q24
(in thousands, except per share data)	September 30, 2025			June 30, 2025			September 30, 2024			$ Change			% Change		$ Change			% Change
Earnings Summary
Interest income	$	64,891		$	64,586		$	52,610		$	305		0.5	%	$	12,281		23.3	%
Interest expense		12,871			16,940			14,256			(4,069	)	(24.0	)%		(1,385	)	(9.7	)%
Net interest income		52,020			47,646			38,354			4,374		9.2	%		13,666		35.6	%
Provision for credit losses		4,650			4,081			3,748			569		13.9	%		902		24.1	%
Provision for credit losses on unfunded commitments		217			—			17			217		—	%		200		1,176.5	%
Noninterest income		11,068			13,106			6,635			(2,038	)	(15.6	)%		4,433		66.8	%
Noninterest expense		38,354			39,572			29,725			(1,218	)	(3.1	)%		8,629		29.0	%
Income before income taxes		19,867			17,099			11,499			2,768		16.2	%		8,368		72.8	%
Income tax expense		4,802			3,963			2,827			839		21.2	%		1,975		69.9	%
Net income	$	15,065		$	13,136		$	8,672		$	1,929		14.7	%	$	6,393		73.7	%

Pre-tax pre-provision net revenue (“PPNR”)⁽¹⁾	$	24,734		$	21,180		$	15,264		$	3,554		16.8	%	$	9,470		62.0	%
Core PPNR⁽¹⁾	$	20,813		$	22,578		$	15,784		$	(1,765	)	(7.8	)%	$	5,029		31.9	%

Common Share Data
Earnings per share – Basic	$	0.91		$	0.79		$	0.62		$	0.12		15.2	%	$	0.29		46.8	%
Earnings per share – Diluted	$	0.89		$	0.78		$	0.62		$	0.11		14.1	%	$	0.27		43.5	%
Core earnings per share – Diluted⁽¹⁾	$	0.72		$	0.85		$	0.66		$	(0.13	)	(15.3	)%	$	0.06		9.1	%
Weighted average common shares – Basic		16,586			16,584			13,914
Weighted average common shares – Diluted		16,844			16,802			13,951

Return Ratios
Return on average assets (annualized)		1.77	%		1.60	%		1.42	%
Core return on average assets (annualized)⁽¹⁾		1.43	%		1.73	%		1.51	%
Return on average equity (annualized)		15.57	%		14.17	%		12.59	%
Core return on average equity (annualized)⁽¹⁾		12.56	%		15.33	%		13.40	%
Return on average tangible common equity (annualized)⁽¹⁾		17.49	%		16.10	%		12.59	%
Core return on average tangible common equity (annualized)⁽¹⁾		14.15	%		17.39	%		13.40	%

______________
⁽¹⁾Refer to Appendix for reconciliation of non-GAAP measures.

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (Continued)

	Nine Months Ended
	September 30,
(in thousands, except per share data)		2025			2024		$ Change			% Change
Earnings Summary
Interest income	$	192,237		$	151,594		$	40,643		26.8	%
Interest expense		46,524			41,175			5,349		13.0	%
Net interest income		145,713			110,419			35,294		32.0	%
Provision for credit losses		10,977			9,892			1,085		11.0	%
Provision for credit losses on unfunded commitments		217			263			(46	)	(17.5	)%
Noninterest income		36,723			19,497			17,226		88.4	%
Noninterest expense		115,979			88,705			27,274		30.7	%
Income before income taxes		55,263			31,056			24,207		77.9	%
Income tax expense		13,130			7,617			5,513		72.4	%
Net income	$	42,133		$	23,439		$	18,694		79.8	%

Pre-tax pre-provision net revenue (“PPNR”)⁽¹⁾	$	66,457		$	41,211		$	25,246		61.3	%
Core PPNR⁽¹⁾	$	65,200		$	42,526		$	22,674		53.3	%

Common Share Data
Earnings per share – Basic	$	2.54		$	1.69		$	0.85		50.3	%
Earnings per share – Diluted	$	2.50		$	1.69		$	0.81		47.9	%
Core earnings per share – Diluted⁽¹⁾	$	2.45		$	1.77
Weighted average common shares – Basic		16,611			13,909
Weighted average common shares – Diluted		16,850			13,909

Return Ratios
Return on average assets (annualized)		1.71	%		1.32	%
Core return on average assets (annualized)⁽¹⁾		1.67	%		1.39	%
Return on average equity (annualized)		15.10	%		11.79	%
Core return on average equity (annualized)⁽¹⁾		14.79	%		12.37	%
Return on average tangible common equity (annualized)⁽¹⁾		17.06	%		11.79	%
Core return on average tangible common equity (annualized)⁽¹⁾		16.70	%		12.37	%

______________
⁽¹⁾Refer to Appendix for reconciliation of non-GAAP measures.

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (Continued)

	Quarter Ended						Quarter Ended
	September 30,						June 30,		March 31,		December 31,
(in thousands, except per share data)	2025		2024		% Change		2025		2025		2024
Balance Sheet Highlights
Assets	$	3,389,442	$	2,560,788	32.4	%	$	3,388,662	$	3,349,805	$	3,206,911
Investment securities available-for-sale		232,640		208,700	11.5	%		228,923		213,452		223,630
Mortgage loans held for sale		19,679		19,554	0.6	%		20,925		34,656		21,270
Portfolio loans receivable⁽²⁾		2,821,983		2,107,522	33.9	%		2,739,808		2,678,406		2,630,163
Allowance for credit losses		53,045		31,925	66.2	%		47,447		48,454		48,652
Goodwill		26,806		—	100.0	%		22,478		24,085		21,126
Intangible assets		13,457		—	100.0	%		13,668		13,861		14,072
Core deposit intangibles		1,576		—	100.0	%		1,627		1,695		1,745
Deposits		2,912,053		2,186,224	33.2	%		2,940,738		2,891,333		2,761,939
FHLB borrowings		22,000		52,000	(57.7	)%		22,000		22,000		22,000
Other borrowed funds		12,062		12,062	—	%		12,062		12,062		12,062
Total stockholders’ equity		394,770		280,111	40.9	%		380,035		369,577		355,139
Tangible common equity⁽¹⁾		352,931		280,111	26.0	%		342,262		329,936		318,196

Common shares outstanding		16,589		13,918	19.2	%		16,582		16,657		16,663
Book value per share	$	23.80	$	20.13	18.2	%	$	22.92	$	22.19	$	21.31
Tangible book value per share⁽¹⁾	$	21.27	$	20.13	5.7	%	$	20.64	$	19.81	$	19.10
Dividends per share	$	0.12	$	0.10	20.0	%	$	0.10	$	0.10	$	0.10

______________
⁽¹⁾Refer to Appendix for reconciliation of non-GAAP measures.
⁽²⁾Loans are reflected net of deferred fees and costs.

Consolidated Statements of Income (Unaudited)
	Three Months Ended													Nine Months Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025		December 31, 2024			September 30, 2024		September 30, 2025		September 30, 2024
Interest income
Loans, including fees	$	60,838		$	60,810		$	58,691	$	58,602		$	50,047	$	180,339	$	144,313
Investment securities available-for-sale		1,805			1,582			1,861		1,539			1,343		5,248		3,902
Federal funds sold and other		2,248			2,194			2,208		1,566			1,220		6,650		3,379
Total interest income		64,891			64,586			62,760		61,707			52,610		192,237		151,594

Interest expense
Deposits		12,732			16,722			16,512		16,385			13,902		45,966		39,785
Borrowed funds		139			218			201		995			354		558		1,390
Total interest expense		12,871			16,940			16,713		17,380			14,256		46,524		41,175

Net interest income		52,020			47,646			46,047		44,327			38,354		145,713		110,419
Provision for credit losses		4,650			4,081			2,246		7,828			3,748		10,977		9,892
Provision for credit losses on unfunded commitments		217			—			—		122			17		217		263
Net interest income after provision for credit losses		47,153			43,565			43,801		36,377			34,589		134,519		100,264
Noninterest income
Service charges on deposits		425			262			258		241			235		945		642
Credit card fees		4,509			4,298			3,722		3,733			4,055		12,529		12,266
Mortgage banking revenue		1,927			1,754			1,831		1,821			1,882		5,512		5,325
Government lending revenue		14			3,112			1,096		2,301			—		4,222		—
Government loan servicing revenue		4,265			3,644			3,568		3,993			—		11,477		—
Loan servicing rights (government guaranteed)		368			(590	)		472		1,013			—		250		—
Non-recurring equity and debt investment write-down		—			—			—		(2,620	)		—		—		—
Other income		(440	)		626			1,602		1,431			463		1,788		1,264
Total noninterest income		11,068			13,106			12,549		11,913			6,635		36,723		19,497
Noninterest expenses
Salaries and employee benefits		17,728			18,460			18,067		16,513			13,345		54,255		39,524
Occupancy and equipment		2,849			2,995			2,910		2,976			1,791		8,754		5,268
Professional fees		2,131			2,422			2,112		2,150			1,980		6,665		5,696
Data processing		7,654			7,520			7,112		7,210			6,930		22,286		20,479
Advertising		1,714			1,371			1,779		1,032			1,223		4,864		5,327
Loan processing		1,114			979			743		969			615		2,836		1,462
Foreclosed real estate expenses, net		—			—			1		—			1		1		2
Merger-related expenses		697			1,398			1,266		2,615			520		3,361		1,315
Operational losses		923			933			903		993			1,008		2,759		2,721
Regulatory assessment expenses		740			884			889		554			483		2,513		1,384
Other operating		2,804			2,610			2,271		2,502			1,829		7,685		5,527
Total noninterest expenses		38,354			39,572			38,053		37,514			29,725		115,979		88,705
Income before income taxes		19,867			17,099			18,297		10,776			11,499		55,263		31,056
Income tax expense		4,802			3,963			4,365		3,243			2,827		13,130		7,617
Net income	$	15,065		$	13,136		$	13,932	$	7,533		$	8,672	$	42,133	$	23,439

Consolidated Balance Sheets
	(unaudited)			(unaudited)			(unaudited)			(audited)			(unaudited)
(in thousands, except share data)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Assets
Cash and due from banks	$	25,724		$	26,843		$	27,836		$	25,433		$	23,462
Interest-bearing deposits at other financial institutions		163,078			247,704			266,092			179,841			133,180
Federal funds sold		59			59			59			58			58
Total cash and cash equivalents		188,861			274,606			293,987			205,332			156,700
Investment securities available-for-sale		232,640			228,923			213,452			223,630			208,700
Restricted investments		7,057			7,043			7,031			4,479			5,895
Loans held for sale		19,679			20,925			34,656			21,270			19,554
Portfolio loans receivable, net of deferred fees and costs		2,821,983			2,739,808			2,678,406			2,630,163			2,107,522
Less allowance for credit losses		(53,045	)		(47,447	)		(48,454	)		(48,652	)		(31,925	)
Total portfolio loans held for investment, net		2,768,938			2,692,361			2,629,952			2,581,511			2,075,597
Premises and equipment, net		15,304			14,863			15,085			15,525			5,959
Accrued interest receivable		19,011			15,149			19,458			16,664			12,468
Goodwill		26,806			22,478			24,085			21,126			—
Intangible assets		13,457			13,668			13,861			14,072			—
Core deposit intangibles		1,576			1,627			1,695			1,745			—
Loan servicing assets		2,070			2,221			2,244			5,511			—
Deferred tax asset		14,048			15,667			15,902			16,670			10,748
Bank owned life insurance		45,105			44,721			44,335			43,956			38,779
Other assets		34,890			34,410			34,062			35,420			26,388
Total assets	$	3,389,442		$	3,388,662		$	3,349,805		$	3,206,911		$	2,560,788

Liabilities
Deposits
Noninterest-bearing	$	857,543		$	836,979		$	812,224		$	810,928		$	718,120
Interest-bearing		2,054,510			2,103,759			2,079,109			1,951,011			1,468,104
Total deposits		2,912,053			2,940,738			2,891,333			2,761,939			2,186,224
Federal Home Loan Bank advances		22,000			22,000			22,000			22,000			52,000
Other borrowed funds		12,062			12,062			12,062			12,062			12,062
Accrued interest payable		8,045			8,158			9,995			9,393			8,503
Other liabilities		40,512			25,669			44,838			46,378			21,888
Total liabilities		2,994,672			3,008,627			2,980,228			2,851,772			2,280,677

Stockholders’ equity
Common stock		166			166			167			167			139
Additional paid-in capital		127,359			126,888			128,692			128,598			55,585
Retained earnings		274,041			261,093			249,925			237,843			232,995
Accumulated other comprehensive loss		(6,796	)		(8,112	)		(9,207	)		(11,469	)		(8,608	)
Total stockholders’ equity		394,770			380,035			369,577			355,139			280,111
Total liabilities and stockholders’ equity	$	3,389,442		$	3,388,662		$	3,349,805		$	3,206,911		$	2,560,788

The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.

	Three Months Ended September 30, 2025						Three Months Ended June 30, 2025						Three Months Ended September 30, 2024
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	194,858	$	2,139	4.36	%	$	182,192	$	2,065	4.55	%	$	91,089	$	1,137	4.97	%
Federal funds sold		59		1	5.79			59		—	—			57		1	6.98
Investment securities available-for-sale		241,086		1,805	2.97			230,317		1,582	2.76			221,303		1,343	2.41
Restricted investments		7,052		108	6.06			7,038		129	7.35			4,911		82	6.64
Loans held for sale		13,783		228	6.57			9,950		163	6.57			9,967		161	6.43
Portfolio loans receivable⁽²⁾⁽³⁾		2,789,815		60,610	8.62			2,733,865		60,647	8.90			2,053,619		49,886	9.66
Total interest earning assets		3,246,653		64,891	7.93			3,163,421		64,586	8.19			2,380,946		52,610	8.79
Noninterest earning assets		131,643						129,112						56,924
Total assets	$	3,378,296					$	3,292,533					$	2,437,870

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	282,873		388	0.54		$	281,878		391	0.56		$	228,365		321	0.56
Savings		12,887		15	0.47			13,043		16	0.49			4,135		5	0.48
Money market accounts		985,106		8,650	3.48			924,784		8,022	3.48			698,239		7,442	4.24
Time deposits		815,302		3,679	1.79			816,809		8,293	4.07			479,824		6,134	5.09
Borrowed funds		34,062		139	1.62			34,062		218	2.57			43,655		354	3.23
Total interest-bearing liabilities		2,130,230		12,871	2.40			2,070,576		16,940	3.28			1,454,218		14,256	3.90
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		43,245						45,523						28,834
Noninterest-bearing deposits		820,899						804,639						680,731
Stockholders’ equity		383,922						371,795						274,087
Total liabilities and stockholders’ equity	$	3,378,296					$	3,292,533					$	2,437,870

Net interest spread					5.53	%					4.91	%					4.89	%
Net interest income			$	52,020					$	47,646					$	38,354
Net interest margin⁽⁴⁾					6.36	%					6.04	%					6.41	%

_______________
⁽¹⁾Annualized.
⁽²⁾Includes nonaccrual loans.
⁽³⁾For the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, collectively, Commercial Bank Loan Yield was 6.74%, 7.14% and 7.15%, respectively.
⁽⁴⁾For the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, collectively, Commercial Bank Net Interest Margin was 4.64%, 4.38% and 4.01%, respectively.

	Nine Months Ended September 30,
		2025						2024
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	193,337	$	6,342	4.39	%	$	84,254	$	3,123	4.95	%
Federal funds sold		59		2	4.24			57		3	7.03
Investment securities available-for-sale		235,690		5,248	2.98			226,151		3,902	2.30
Restricted investments		6,622		306	6.17			4,982		253	6.78
Loans held for sale		11,046		629	7.62			7,591		376	6.62
Portfolio loans receivable⁽²⁾⁽³⁾		2,719,834		179,710	8.83			1,991,435		143,937	9.65
Total interest earning assets		3,166,588		192,237	8.12			2,314,470		151,594	8.75
Noninterest earning assets		131,582						49,458
Total assets	$	3,298,170					$	2,363,928

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	269,184	$	1,147	0.57	%	$	209,346	$	579	0.37	%
Savings		13,044		49	0.51			4,460		7	0.21
Money market accounts		927,044		24,071	3.47			684,017		21,610	4.22
Time deposits		830,451		20,699	3.33			465,256		17,589	5.05
Borrowed funds		34,062		558	2.19			52,461		1,390	3.54
Total interest-bearing liabilities		2,073,785		46,524	3.00			1,415,540		41,175	3.89
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		48,374						25,844
Noninterest-bearing deposits		802,991						657,044
Stockholders’ equity		373,020						265,500
Total liabilities and stockholders’ equity	$	3,298,170					$	2,363,928

Net interest spread					5.12	%					4.86	%
Net interest income			$	145,713					$	110,419
Net interest margin⁽⁴⁾					6.15	%					6.37	%

⁽¹⁾Annualized.
⁽²⁾Includes nonaccrual loans.
⁽³⁾For the nine months ended September 30, 2025 and 2024, collectively. Commercial Bank Loan Yield was 7.01% and 7.05%, respectively.
⁽⁴⁾For the nine months ended September 30, 2025 and 2024, collectively. Commercial Bank Net Interest Margin was 4.45% and 4.13%, respectively.

The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, OpenSky^™ (the Company’s credit card division), Windsor Advantage^™ and Capital Bank Home Loans (the Company’s mortgage loan division).

Prior to March 31, 2025, the Company disclosed Corporate as a reportable segment. The Company has determined that what was previously deemed the Corporate reportable segment consists of other business activities that are associated with the Commercial Bank and are reflected in the tabular disclosures that follow. It should be noted that such restructuring of the tabular disclosure did not result in any changes to the Company’s revenue and expense allocation methodology. The Company restructured prior period tabular disclosures to achieve appropriate comparability.

The following schedules reported internally for performance assessment by the chief operating decision maker presents financial information for each reportable segment for the periods indicated. Total assets are presented as of September 30, 2025, June 30, 2025, and September 30, 2024.

Segments

For the three months ended September 30, 2025

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income⁽²⁾

49,035

15,628

—

228

64,891

Interest expense

12,768

—

103

12,871

Net interest income

36,267

15,628

—

125

52,020

Provision for credit losses

1,852

2,798

—

4,650

Provision for credit losses on unfunded commitments

217

—

217

Net interest income after provision

34,198

12,830

—

125

47,153

Noninterest income

Service charges on deposits

425

—

425

Credit card fees

—

4,509

—

4,509

Mortgage banking revenue

315

—

1,612

1,927

Government lending revenue

—

Government loan servicing revenue⁽¹⁾

(1,074

)

—

5,339

—

4,265

Loan servicing rights (government guaranteed)⁽²⁾

368

—

368

Other (loss) income

(557

)

(33

)

—

150

(440

)

Total noninterest income

(509

)

4,476

5,339

1,762

11,068

Noninterest expenses

Salaries and employee benefits

10,559

3,271

2,455

1,443

17,728

Occupancy and equipment

1,635

632

416

166

2,849

Professional fees

1,079

571

198

283

2,131

Data processing

350

7,154

7,654

Advertising

694

833

111

1,714

Loan processing

740

292

1,114

Foreclosed real estate expenses, net

—

Merger-related expenses

697

—

697

Operational losses

—

923

—

923

Regulatory assessment expenses

788

(30

)

(11

)

740

Other operating

1,493

587

614

110

2,804

Total noninterest expenses

18,035

13,956

3,912

2,451

38,354

Net income (loss) before taxes

15,654

3,350

1,427

(564

)

19,867

Total assets

3,213,222

134,422

21,743

20,055

3,389,442

________________________
⁽¹⁾ Gross government loan servicing revenue totaled $5.3 million, including $1.1 million of servicing fees earned from the Commercial Bank by Windsor, for the three months ended September 30, 2025.
⁽²⁾ Interest income of $49.0 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.

Segments

For the three months ended June 30, 2025

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income

49,929

14,494

—

163

64,586

Interest expense

16,856

—

16,940

Net interest income

33,073

14,494

—

47,646

Provision for credit losses

1,159

2,922

—

4,081

Provision for credit losses on unfunded commitments

—

Net interest income after provision

31,914

11,572

—

43,565

Noninterest income

Service charges on deposits

262

—

262

Credit card fees

—

4,298

—

4,298

Mortgage banking revenue

465

—

1,289

1,754

Government lending revenue

3,112

—

3,112

Government loan servicing revenue⁽¹⁾

(1,052

)

—

4,696

—

3,644

Loan servicing rights (government guaranteed)⁽²⁾

(590

)

—

(590

)

Other income

349

—

252

626

Total noninterest income

2,546

4,323

4,696

1,541

13,106

Noninterest expenses

Salaries and employee benefits

11,090

3,403

2,509

1,458

18,460

Occupancy and equipment

1,903

573

368

151

2,995

Professional fees

1,572

552

227

2,422

Data processing

454

6,897

133

7,520

Advertising

795

470

1,371

Loan processing

650

251

979

Foreclosed real estate expenses, net

—

Merger-related expenses

1,398

—

1,398

Operational losses

100

833

—

933

Regulatory assessment expenses

860

884

Other operating

1,817

338

354

101

2,610

Total noninterest expenses

20,639

13,105

3,530

2,298

39,572

Net income (loss) before taxes

13,821

2,790

1,166

(678

)

17,099

Total assets

3,211,421

129,397

25,936

21,908

3,388,662

________________________
⁽¹⁾ Gross government loan servicing revenue totaled $4.7 million, including $1.1 million of servicing fees earned from the Commercial Bank by Windsor, for the three months ended June 30, 2025
⁽²⁾ Loan servicing rights of negative $0.6 million for the Commercial Bank includes a $1.1 million negative fair value adjustment associated with loan servicing portfolio

Segments

For the three months ended September 30, 2024

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income

36,824

15,625

—

161

52,610

Interest expense

14,148

—

108

14,256

Net interest income

22,676

15,625

—

38,354

Provision for credit losses

1,454

2,294

—

3,748

Provision for credit losses on unfunded commitments

—

Net interest income after provision

21,205

13,331

—

34,589

Noninterest income

Service charges on deposits

235

—

235

Credit card fees

—

4,055

—

4,055

Mortgage banking revenue

166

—

1,716

1,882

Other income

327

—

463

Total noninterest income

728

4,096

—

1,811

6,635

Noninterest expense

Salaries and employee benefits

8,542

3,273

—

1,530

13,345

Occupancy and equipment

1,165

485

—

141

1,791

Professional fees

1,005

722

—

253

1,980

Data processing

396

6,492

—

6,930

Advertising

429

697

—

1,223

Loan processing

371

—

228

615

Foreclosed real estate expenses, net

—

Merger-related expenses

520

—

520

Operational losses

1,000

—

1,008

Regulatory assessment expenses

483

—

483

Other operating

1,134

591

—

104

1,829

Total noninterest expenses

14,054

13,276

—

2,395

29,725

Net income (loss) before taxes

7,879

4,151

—

(531

)

11,499

Total assets

2,419,370

121,587

—

19,831

2,560,788

Segments

For the nine months ended September 30, 2025

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income⁽²⁾

147,128

44,566

—

543

192,237

Interest expense

46,273

—

251

46,524

Net interest income

100,855

44,566

—

292

145,713

Provision for credit losses

3,457

7,520

—

10,977

Provision for credit losses on unfunded commitments

217

—

217

Net interest income after provision

97,181

37,046

—

292

134,519

Noninterest income

Service charges on deposits

945

—

945

Credit card fees

—

12,529

—

12,529

Mortgage banking revenue

1,043

—

4,469

5,512

Government lending revenue

4,222

—

4,222

Government loan servicing revenue⁽¹⁾

(3,164

)

—

14,641

—

11,477

Loan servicing rights (government guaranteed)

250

—

250

Other income

1,215

—

570

1,788

Total noninterest income

4,511

12,532

14,641

5,039

36,723

Noninterest expenses

Salaries and employee benefits

32,275

10,019

7,370

4,591

54,255

Occupancy and equipment

5,115

1,693

1,495

451

8,754

Professional fees

3,802

1,714

389

760

6,665

Data processing

1,244

20,633

283

126

22,286

Advertising

2,207

2,177

215

265

4,864

Loan processing

1,867

128

783

2,836

Foreclosed real estate expenses, net

—

Merger-related expenses

3,361

—

3,361

Operational losses

131

2,628

—

2,759

Regulatory assessment expenses

2,513

—

2,513

Other operating

4,718

1,441

1,222

304

7,685

Total noninterest expenses

57,234

40,363

11,102

7,280

115,979

Net income (loss) before taxes

44,458

9,215

3,539

(1,949

)

55,263

Total assets

3,213,222

134,422

21,743

20,055

3,389,442

________________________
⁽¹⁾ Gross government loan servicing revenue totaled $14.6 million, including $3.2 million of servicing fees earned from the Commercial Bank by Windsor, for the nine months ended September 30, 2025.
⁽²⁾ Interest income of $147.1 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.

Segments

For the nine months ended September 30, 2024

(in thousands)

Commercial Bank

OpenSky™

Windsor Advantage^™

CBHL

Consolidated

Interest income

104,887

46,331

—

376

151,594

Interest expense

40,943

—

232

41,175

Net interest income

63,944

46,331

—

144

110,419

Provision for credit losses

3,740

6,152

—

9,892

Provision for credit losses on unfunded commitments

263

—

263

Net interest income after provision

59,941

40,179

—

144

100,264

Noninterest income

Service charges on deposits

642

—

642

Credit card fees

—

12,266

—

12,266

Mortgage banking revenue

788

—

4,537

5,325

Other income

680

113

—

471

1,264

Total noninterest income

2,110

12,379

—

5,008

19,497

Noninterest expenses

Salaries and employee benefits

25,846

9,171

—

4,507

39,524

Occupancy and equipment

3,430

1,418

—

420

5,268

Professional fees

2,661

2,338

—

697

5,696

Data processing

857

19,496

—

126

20,479

Advertising

1,215

3,865

—

247

5,327

Loan processing

763

—

654

1,462

Foreclosed real estate expenses, net

—

Merger-related expenses

1,315

—

1,315

Operational losses

2,708

—

2,721

Regulatory assessment expenses

1,384

—

1,384

Other operating

3,569

1,609

—

349

5,527

Total noninterest expenses

41,055

40,650

—

7,000

88,705

Net income (loss) before taxes

20,996

11,908

—

(1,848

)

31,056

Total assets

2,419,370

121,587

—

19,831

2,560,788

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited
	Quarter Ended
(in thousands, except per share data)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Earnings:
Net income	$	15,065		$	13,136		$	13,932		$	7,533		$	8,672
Earnings per common share, diluted		0.89			0.78			0.82			0.45			0.62
Net interest margin		6.36	%		6.04	%		6.05	%		5.87	%		6.41	%
Commercial Bank net interest margin⁽²⁾		4.64	%		4.38	%		4.32	%		3.99	%		4.01	%
Return on average assets⁽¹⁾		1.77	%		1.60	%		1.75	%		0.96	%		1.42	%
Return on average equity⁽¹⁾		15.57	%		14.17	%		15.56	%		8.50	%		12.59	%
Efficiency ratio		60.79	%		65.14	%		64.94	%		66.70	%		66.07	%

Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	2,821,983		$	2,739,808		$	2,678,406		$	2,630,163		$	2,107,522
Total deposits		2,912,053			2,940,738			2,891,333			2,761,939			2,186,224
Total assets		3,389,442			3,388,662			3,349,805			3,206,911			2,560,788
Total stockholders’ equity		394,770			380,035			369,577			355,139			280,111
Total average portfolio loans receivable, net deferred fees		2,789,815			2,733,865			2,634,110			2,592,960			2,053,619
Total average deposits		2,917,067			2,841,153			2,768,284			2,611,994			2,091,294
Portfolio loans-to-deposit ratio (period-end balances)		96.91	%		93.17	%		92.64	%		95.23	%		96.40	%
Portfolio loans-to-deposit ratio (average balances)		95.64	%		96.22	%		95.15	%		99.27	%		98.20	%

Asset Quality Ratios:
Nonperforming assets to total assets		1.54	%		1.07	%		1.28	%		0.94	%		0.60	%
Nonperforming loans to total loans		1.85	%		1.32	%		1.60	%		1.15	%		0.73	%
Net charge-offs to average portfolio loans⁽¹⁾		0.35	%		0.75	%		0.38	%		0.37	%		0.51	%
Allowance for credit losses to total loans		1.88	%		1.73	%		1.81	%		1.85	%		1.51	%
Allowance for credit losses to non-performing loans		101.53	%		131.19	%		112.86	%		160.88	%		206.50	%

Bank Capital Ratios:
Total risk based capital ratio		12.92	%		13.13	%		12.93	%		12.79	%		13.76	%
Tier-1 risk based capital ratio		11.66	%		11.87	%		11.67	%		11.54	%		12.50	%
Leverage ratio		9.31	%		9.39	%		9.27	%		9.17	%		9.84	%
Common Equity Tier-1 capital ratio		11.66	%		11.87	%		11.67	%		11.54	%		12.50	%
Tangible common equity		9.04	%		8.84	%		8.66	%		9.31	%		9.12	%
Holding Company Capital Ratios:
Total risk based capital ratio		15.22	%		15.30	%		14.97	%		15.48	%		16.65	%
Tier-1 risk based capital ratio		13.59	%		13.66	%		13.32	%		13.83	%		14.88	%
Leverage ratio		10.96	%		10.90	%		10.68	%		11.07	%		11.85	%
Common Equity Tier-1 capital ratio		13.51	%		13.58	%		13.24	%		13.74	%		14.78	%
Tangible common equity		10.57	%		10.22	%		9.94	%		11.07	%		10.94	%

_______________
⁽¹⁾ Annualized.
⁽²⁾ Refer to Appendix for reconciliation of non-GAAP measures.

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited (Continued)
	Quarter Ended
(in thousands, except per share data)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Composition of Loans:
Commercial real estate, non owner-occupied	$	509,878		$	495,341		$	484,399		$	471,329		$	403,487
Commercial real estate, owner-occupied		442,827			436,421			420,643			440,026			351,462
Residential real estate		740,060			710,730			693,597			688,552			623,684
Construction real estate		344,290			343,189			343,280			321,252			301,909
Commercial and industrial		619,148			593,279			594,331			554,550			271,811
Lender finance		31,883			32,494			23,165			28,574			29,546
Business equity lines of credit		2,931			2,853			3,468			3,090			2,663
Credit card, net of reserve⁽³⁾		136,483			131,029			118,709			127,766			127,098
Other consumer loans		2,010			2,727			2,200			2,089			2,045
Portfolio loans receivable	$	2,829,510		$	2,748,063		$	2,683,792		$	2,637,228		$	2,113,705
Deferred origination fees, net		(7,527	)		(8,255	)		(5,386	)		(7,065	)		(6,183	)
Portfolio loans receivable, net	$	2,821,983		$	2,739,808		$	2,678,406		$	2,630,163		$	2,107,522

Composition of Deposits:
Noninterest-bearing	$	857,542		$	836,979		$	812,224		$	810,928		$	718,120
Interest-bearing demand		275,767			319,431			296,455			238,881			266,493
Savings		12,835			12,879			12,819			13,488			3,763
Money markets		989,160			960,237			912,418			816,708			686,526
Customer time deposits		539,207			541,079			549,630			548,901			358,300
Brokered time deposits		237,542			270,133			307,787			333,033			153,022
Total deposits	$	2,912,053		$	2,940,738		$	2,891,333		$	2,761,939		$	2,186,224

Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	80,651		$	80,334		$	65,815		$	89,998		$	74,690
Mortgage loans sold		66,409			59,663			54,144			77,399			67,296
Gain on sale of loans		1,698			1,597			1,664			1,897			1,644
Purchase volume as a % of originations		92.32	%		91.61	%		90.73	%		90.42	%		90.98	%
Gain on sale as a % of loans sold⁽⁴⁾		2.56	%		2.68	%		3.07	%		2.45	%		2.44	%
Mortgage commissions	$	656		$	501		$	545		$	620		$	598

OpenSky^™Portfolio Metrics:
Open customer accounts		587,641			585,372			563,718			552,566			548,952
Secured credit card loans, gross	$	84,737		$	86,400		$	81,252		$	87,226		$	89,641
Unsecured credit card loans, gross		53,633			46,352			38,987			42,430			39,730
Noninterest secured credit card deposits		166,874			168,936			168,796			166,355			170,750

_______________
⁽³⁾Credit card loans are presented net of reserve for interest and fees.
⁽⁴⁾Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.

Appendix

Reconciliation of Non-GAAP Measures

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

Core Earnings Metrics	Quarter Ended
(in thousands, except per share data)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Net Income	$	15,065		$	13,136		$	13,932		$	7,533		$	8,672
Add: Income from the Call of Brokered Time Deposits, Net of Tax		(3,489	)		—			—			—			—
Add: Merger-Related Expenses, Net of Tax		575			1,070			964			2,151			557
Add: Non-Recurring Equity and Debt Investment Write-Down		—			—			—			2,620			—
Add: IFH ACL Provision, Net of Tax		—			—			—			3,169			—
Core Net Income	$	12,151		$	14,206		$	14,896		$	15,473		$	9,229

Weighted Average Common Shares – Diluted		16,844			16,802			16,925			16,729			13,951
Earnings per Share – Diluted	$	0.89		$	0.78		$	0.82		$	0.45		$	0.62
Core Earnings per Share – Diluted	$	0.72		$	0.85		$	0.88		$	0.92		$	0.66

Average Assets	$	3,378,296		$	3,292,533		$	3,221,964		$	3,120,107		$	2,437,870
Return on Average Assets⁽¹⁾		1.77	%		1.60	%		1.75	%		0.96	%		1.42	%
Core Return on Average Assets⁽¹⁾		1.43	%		1.73	%		1.87	%		1.97	%		1.51	%

Average Equity	$	383,922		$	371,795		$	363,115		$	352,537		$	274,087
Return on Average Equity⁽¹⁾		15.57	%		14.17	%		15.56	%		8.50	%		12.59	%
Core Return on Average Equity⁽¹⁾		12.56	%		15.33	%		16.64	%		17.46	%		13.40	%

Net Interest Income	$	52,020		$	47,646		$	46,047		$	44,327		$	38,354
Less: Brokered Time Deposit Call		4,618			—			—			—			—
Core Net Interest Income (a)	$	47,402		$	47,646		$	46,047		$	44,327		$	38,354
Noninterest Income		11,068			13,106			12,549			11,913			6,635
Total Revenue	$	58,470		$	60,752		$	58,596		$	56,240		$	44,989
Noninterest Expense	$	38,354		$	39,572		$	38,053		$	37,514		$	29,725
Efficiency Ratio⁽²⁾		65.6	%		65.1	%		64.9	%		66.7	%		66.1	%

Noninterest Income	$	11,068		$	13,106		$	12,549		$	11,913		$	6,635
Add: Non-Recurring Equity and Debt Investment Write-Down		—			—			—			2,620			—
Core Fee Revenue (b)	$	11,068		$	13,106		$	12,549		$	14,533		$	6,635
Core Revenue (a) + (b)	$	58,470		$	60,752		$	58,596		$	58,860		$	44,989

Noninterest Expense	$	38,354		$	39,572		$	38,053		$	37,514		$	29,725
Less: Merger-Related Expenses		697			1,398			1,266			2,615			520
Core Noninterest Expense	$	37,657		$	38,174		$	36,787		$	34,899		$	29,205
Core Efficiency Ratio⁽²⁾		64.4	%		62.8	%		62.8	%		59.3	%		64.9	%

_______________
⁽¹⁾Annualized.
⁽²⁾The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).

Core Earnings Metrics	Nine Months Ended
(in thousands, except per share data)	September 30, 2025			September 30, 2024

Net Income	$	42,133		$	23,439
Add: Income from the Call of Brokered Time Deposits, Net of Tax		(3,489	)		—
Add: Merger-Related Expenses, Net of Tax		2,609			1,157
Add: Non-Recurring Equity and Debt Investment Write-Down		—			—
Add: IFH ACL Provision, Net of Tax		—			—
Core Net Income	$	41,253		$	24,596

Weighted Average Common Shares – Diluted		16,850			13,909
Earnings per Share – Diluted	$	2.50		$	1.69
Core Earnings per Share – Diluted	$	2.45		$	1.77

Average Assets	$	3,298,170		$	2,363,928
Return on Average Assets⁽¹⁾		1.71	%		1.32	%
Core Return on Average Assets		1.67	%		1.39	%

Average Equity	$	373,020		$	265,500
Return on Average Equity⁽¹⁾		15.10	%		11.79	%
Core Return on Average Equity		14.79	%		12.37	%

Net Interest Income	$	145,713		$	110,419
Less: Income from the Call of Brokered Time Deposits		4,618			—
Core Net Interest Income (a)	$	141,095		$	110,419
Noninterest Income		36,723			19,497
Total Revenue	$	177,818		$	129,916
Noninterest Expense	$	115,979		$	88,705
Efficiency Ratio⁽²⁾		65.2	%		68.3	%

Noninterest Income	$	36,723		$	19,497
Add: Non-Recurring Equity and Debt Investment Write-Down		—			—
Core Fee Revenue (b)	$	36,723		$	19,497
Core Revenue (a) + (b)	$	177,818		$	129,916

Noninterest Expense	$	115,979		$	88,705
Less: Merger-Related Expenses		3,361			1,315
Core Noninterest Expense	$	112,618		$	87,390
Core Efficiency Ratio⁽²⁾		63.3	%		67.3	%

_______________
⁽¹⁾Annualized.
⁽²⁾The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).

Commercial Bank Net Interest Margin	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Commercial Bank Net Interest Income	$	36,267		$	33,073		$	31,515		$	28,812		$	22,676
Average Interest Earning Assets		3,246,653			3,163,421			3,087,943			3,003,081			2,380,946
Less: Average Non-Commercial Bank Interest Earning Assets		144,558			132,196			128,278			133,401			129,906
Average Commercial Bank Interest Earning Assets	$	3,102,095		$	3,031,225		$	2,959,665		$	2,869,680		$	2,251,040
Commercial Bank Net Interest Margin		4.64	%		4.38	%		4.32	%		3.99	%		4.01	%

Commercial Bank Net Interest Margin	Nine Months Ended
(in thousands)	September 30, 2025			September 30, 2024

Commercial Bank Net Interest Income	$	100,855		$	63,944
Average Interest Earning Assets		3,166,588			2,314,470
Less: Average Non-Commercial Bank Interest Earning Assets		135,146			247,905
Average Commercial Bank Interest Earning Assets	$	3,031,442		$	2,066,565
Commercial Bank Net Interest Margin		4.45	%		4.13	%

Commercial Bank Portfolio Loans Receivable Yield	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Portfolio Loans Receivable Interest Income	$	60,610		$	60,647		$	58,453		$	58,409		$	49,886
Less: Credit Card Loan Income		15,387			14,116			14,148			15,022			15,137
Commercial Bank Portfolio Loans Receivable Interest Income	$	45,223		$	46,531		$	44,305		$	43,387		$	34,749
Average Portfolio Loans Receivable		2,789,815			2,733,865			2,634,110			2,592,960			2,053,619
Less: Average Credit Card Loans		129,100			121,414			118,723			120,993			119,458
Total Commercial Bank Average Portfolio Loans Receivable	$	2,660,715		$	2,612,451		$	2,515,387		$	2,471,967		$	1,934,161
Commercial Bank Portfolio Loans Receivable Yield		6.74	%		7.14	%		7.14	%		6.98	%		7.15	%

Commercial Bank Portfolio Loans Receivable Yield	Nine Months Ended
(in thousands)	September 30, 2025			September 30, 2024

Portfolio Loans Receivable Interest Income	$	179,710		$	143,937
Less: Credit Card Loan Income		43,651			44,798
Commercial Bank Portfolio Loans Receivable Interest Income	$	136,059		$	99,139
Average Portfolio Loans Receivable		2,719,834			1,991,435
Less: Average Credit Card Loans		123,117			113,764
Total Commercial Bank Average Portfolio Loans Receivable	$	2,596,717		$	1,877,671
Commercial Bank Portfolio Loans Receivable Yield		7.01	%		7.05	%

Pre-tax, Pre-Provision Net Revenue (“PPNR”)	Quarter Ended
(in thousands)	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024

Net Income	$	15,065	$	13,136	$	13,932	$	7,533	$	8,672
Add: Income Tax Expense		4,802		3,963		4,365		3,243		2,827
Add: Provision for Credit Losses		4,650		4,081		2,246		7,828		3,748
Add: Provision for Credit Losses on Unfunded Commitments		217		—		—		122		17
Pre-tax, Pre-Provision Net Revenue (“PPNR”)	$	24,734	$	21,180	$	20,543	$	18,726	$	15,264

Pre-tax, Pre-Provision Net Revenue (“PPNR”)	Nine Months Ended
(in thousands)	September 30, 2025		September 30, 2024

Net Income	$	42,133	$	23,439
Add: Income Tax Expense		13,130		7,617
Add: Provision for Credit Losses		10,977		9,892
Add: Provision for Credit Losses on Unfunded Commitments		217		263
Pre-tax, Pre-Provision Net Revenue (“PPNR”)	$	66,457	$	41,211

Core PPNR	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024

Net Income	$	15,065		$	13,136	$	13,932	$	7,533	$	8,672
Add: Income Tax Expense		4,802			3,963		4,365		3,243		2,827
Add: Provision for Credit Losses		4,650			4,081		2,246		7,828		3,748
Add: Provision for Credit Losses on Unfunded Commitments		217			—		—		122		17
Add: Income from the Call of Brokered Time Deposits		(4,618	)		—		—		—		—
Add: Merger-Related Expenses		697			1,398		1,266		2,615		520
Add: Non-Recurring Equity and Debt Investment Write-Down		—			—		—		2,620		—
Core PPNR	$	20,813		$	22,578	$	21,809	$	23,961	$	15,784

Core PPNR	Nine Months Ended
(in thousands)	September 30, 2025			September 30, 2024

Net Income	$	42,133		$	23,439
Add: Income Tax Expense		13,130			7,617
Add: Provision for Credit Losses		10,977			9,892
Add: Provision for Credit Losses on Unfunded Commitments		217			263
Add: Income from the Call of Brokered Time Deposits		(4,618	)		—
Add: Merger-Related Expenses		3,361			1,315
Core PPNR	$	65,200		$	42,526

Allowance for Credit Losses to Total Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Allowance for Credit Losses	$	53,045		$	47,447		$	48,454		$	48,652		$	31,925
Total Portfolio Loans		2,821,983			2,739,808			2,678,406			2,630,163			2,107,522
Allowance for Credit Losses to Total Portfolio Loans		1.88	%		1.73	%		1.81	%		1.85	%		1.51	%

Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Allowance for Credit Losses	$	53,045		$	47,447		$	48,454		$	48,652		$	31,925
Less: Credit Card Allowance for Credit Losses		7,413			6,762			5,905			6,402			7,339
Commercial Bank Allowance for Credit Losses		45,632			40,685			42,549			42,250			24,586
Total Portfolio Loans		2,821,983			2,739,808			2,678,406			2,630,163			2,107,522
Less: Gross Credit Card Loans		130,897			126,233			115,991			122,928			121,718
Commercial Bank Portfolio Loans		2,691,086			2,613,575			2,562,415			2,507,235			1,985,804
Commercial Bank Allowance for Credit Losses to Total Portfolio Loans		1.70	%		1.56	%		1.67	%		1.70	%		1.24	%

Nonperforming Assets to Total Assets	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Total Nonperforming Assets	$	52,247		$	36,167		$	42,934		$	30,241		$	15,460
Total Assets		3,389,442			3,388,662			3,349,805			3,206,911			2,560,788
Nonperforming Assets to Total Assets		1.54	%		1.07	%		1.28	%		0.94	%		0.60	%

Nonperforming Loans to Total Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Total Nonperforming Loans	$	52,247		$	36,167		$	42,934		$	30,241		$	15,460
Total Portfolio Loans		2,821,983			2,739,808			2,678,406			2,630,163			2,107,522
Nonperforming Loans to Total Portfolio Loans		1.85	%		1.32	%		1.60	%		1.15	%		0.73	%

Net Charge-Offs to Average Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Total Net Charge-Offs	$	2,476		$	5,088		$	2,444		$	2,427		$	2,655
Total Average Portfolio Loans		2,789,815			2,733,865			2,634,110			2,592,960			2,053,619
Net Charge-Offs to Average Portfolio Loans, Annualized		0.35	%		0.75	%		0.38	%		0.37	%		0.51	%

Tangible Book Value per Share	Quarter Ended
(in thousands, except share and per share data)	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024

Total Stockholders’ Equity	$	394,770	$	380,035	$	369,577	$	355,139	$	280,111
Less: Preferred Equity		—		—		—		—		—
Less: Intangible Assets		41,839		37,773		39,641		36,943		—
Tangible Common Equity	$	352,931	$	342,262	$	329,936	$	318,196	$	280,111
Period End Shares Outstanding		16,589,241		16,581,990		16,657,168		16,662,626		13,917,891
Tangible Book Value per Share	$	21.27	$	20.64	$	19.81	$	19.10	$	20.13

Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Net Income	$	15,065		$	13,136		$	13,932		$	7,533		$	8,672
Add: Intangible Amortization, Net of Tax		199			200			199			198			—
Net Tangible Income	$	15,264		$	13,336		$	14,131		$	7,731		$	8,672
Average Equity		383,922			371,795			363,115			352,537			274,087
Less: Average Intangible Assets		37,715			39,534			36,896			22,890			—
Net Average Tangible Common Equity	$	346,207		$	332,261		$	326,219		$	329,647		$	274,087
Return on Average Equity		15.57	%		14.17	%		15.56	%		8.50	%		12.59	%
Return on Average Tangible Common Equity		17.49	%		16.10	%		17.57	%		9.33	%		12.59	%

Return on Average Tangible Common Equity	Nine Months Ended
(in thousands)	September 30, 2025			September 30, 2024

Net Income	$	42,133		$	23,439
Add: Intangible Amortization, Net of Tax		599			—
Net Tangible Income	$	42,732		$	23,439
Average Equity		373,020			265,500
Less: Average Intangible Assets		38,051			—
Net Average Tangible Common Equity	$	334,969		$	265,500
Return on Average Equity		15.10	%		11.79	%
Return on Average Tangible Common Equity		17.06	%		11.79	%

Core Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024

Net Income, as Adjusted	$	12,151		$	14,206		$	14,896		$	15,473		$	9,229
Add: Intangible Amortization, Net of Tax		199			200			199			198			—
Core Net Tangible Income	$	12,350		$	14,406		$	15,095		$	15,671		$	9,229
Core Return on Average Tangible Common Equity		14.15	%		17.39	%		18.77	%		18.91	%		13.40	%

Core Return on Average Tangible Common Equity	Nine Months Ended
(in thousands)	September 30, 2025			September 30, 2024

Net Income, as Adjusted	$	41,253		$	24,596
Add: Intangible Amortization, Net of Tax		599			—
Core Net Tangible Income	$	41,852		$	24,596
Core Return on Average Tangible Common Equity		16.70	%		12.37	%

ABOUT CAPITAL BANCORP, INC.

Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in four locations in the Washington, D.C., Baltimore, other Maryland markets, one bank branch in Fort Lauderdale, Florida, one bank branch in Chicago, Illinois and one bank branch in Raleigh, North Carolina. Capital Bancorp had assets of approximately $3.4 billion at September 30, 2025 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company’s website www.CapitalBankMD.com under its investor relations page.

FORWARD-LOOKING STATEMENTS

This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “optimistic,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.

While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: the strength of the United States (“U.S.”) economy in general and the strength of the local economies in which we conduct operations; geopolitical concerns, including acts or threats of terrorism and the ongoing wars in Ukraine and in the Middle East; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; changes in U.S. trade policies, including the implementation of tariffs and other protectionist trade policies; the effects of federal government shutdowns, debt ceiling standoff, or other fiscal policy uncertainty; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them; climate change, and other catastrophic disasters; the effect of the IFH acquisition or any other acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations, including the planned growth of Windsor Advantage^™; and other factors that may affect our future results.

These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.

FINANCIAL CONTACT: Ed Barry (240) 283-1912

MEDIA CONTACT: Ed Barry (240) 283-1912

WEB SITE: www.CapitalBankMD.com

CBNK Reports 3Q EPS of $0.89; 3Q ROA of 1.77% and ROE of 15.57%; Continued Strong Growth in Loans and Book Value

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