CBNK Reports 4Q EPS of $0.91; 4Q ROA of 1.71% and ROE of 15.23%; FY 2025: Record Earnings, Double-Digit Balance Sheet Growth and a 1.71% ROA

By Capital Bancorp, Inc. | January 26, 2026, 4:05 PM

Fourth Quarter 2025 Highlights

GAAP Net Income of $15.0 million was flat compared to 3Q 2025. Earnings per share of $0.91 increased $0.02 per share, compared to 3Q 2025 and return on average assets ("ROA") of 1.71% decreased 6 basis points compared to 3Q 2025
- Core net income⁽¹⁾ of $15.0 million, or $0.91 per share increased $0.19 per share compared to 3Q 2025 and Core ROA⁽¹⁾ of 1.71% increased 28 basis points compared to 3Q 2025
Book value per common share of $24.54 at December 31, 2025, increased $0.74 compared to 3Q 2025, and increased $3.23 when compared to 4Q 2024
- Tangible book value per share⁽¹⁾ of $22.05, increased 3.4% (not annualized), or $0.72 as compared to 3Q 2025, and increased 15.5%, or $2.96 compared to 4Q 2024
Return on average equity ("ROE") of 15.23% decreased 34 basis points compared to 3Q 2025, and return on average tangible common equity ("ROTCE")⁽¹⁾ of 17.23% decreased 26 basis points compared to 3Q 2025
- Core ROE⁽¹⁾ of 15.23% increased 267 basis points compared to 3Q 2025 and Core ROTCE⁽¹⁾ of 17.23% increased 308 basis points compared to 3Q 2025
Gross Loans⁽²⁾ grew $137.5 million, or 19.3% (annualized), during 4Q 2025, and grew $329.3 million, or 12.5% from 4Q 2024
Total deposits grew $180.9 million, or 24.6% (annualized), from 3Q 2025 and grew $331.0 million, or 12.0% from 4Q 2024
- Customer Deposit³ growth of $41.8 million, or 6.2% (annualized) from 3Q 2025, and $287.4 million, or 11.8% from 4Q 2024
Net interest income decreased $1.7 million, or 3.3% (not annualized) from 3Q 2025, mainly due to the $4.6 million of accretion during 3Q 2025 from refinancing callable brokered time deposits acquired in the IFH transaction, and increased $6.0 million, or 13.4% from 4Q 2024, primarily driven by growth from the Commercial Bank.
Net Interest Margin ("NIM") of 5.94% decreased 42 bps compared to 3Q 2025 and increased 7 bps compared to 4Q 2024
- Commercial Bank NIM⁽¹⁾ of 4.18% decreased by 46 bps (but increased 21 bps when excluding purchase accounting accretion ("PAA")), compared to 3Q 2025, and increased 19 bps, compared to 4Q 2024
- 4Q 2025 net PAA of $0.2 million, or 3 bps of NIM and 3 bps of Commercial Bank NIM⁽¹⁾, decreased $5.3 million, or 61 bps, compared to 3Q 2025.
The allowance for credit losses to total loans ("ACL Coverage Ratio") equaled 1.85% at December 31, 2025, which represented a 3 bps decrease from September 30, 2025, and remained flat year-over-year.
- The Commercial Bank ACL Coverage Ratio⁽¹⁾ equaled 1.65% at December 31, 2025, which represented a 5 bps decrease from 1.70% at both September 30, 2025 and December 31, 2024
Fee Revenue (noninterest income) totaled $12.5 million, or 19.9% of total revenue for 4Q 2025, an increase of $1.4 million from 3Q 2025 primarily due to SBIC income, and increased $0.6 million from 4Q 2024
Cash Dividend of $0.12 per share declared by the Board of Directors
Shares repurchased and retired during the three months ended December 31, 2025, as part of the Company's stock repurchase program, totaled 304,288 shares at an average price of $28.12, for a total cost of $8.6 million

^{(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 pre-tax adjustments which are not indicative of operating performance 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., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported net income of $15.0 million, or $0.91 per diluted share, for 4Q 2025, compared to net income of $15.1 million, or $0.89 per diluted share, for 3Q 2025, and $7.5 million, or $0.45 per diluted share, for 4Q 2024. Core net income⁽¹⁾ for 4Q 2025 of $15.0 million, or $0.91 per diluted share, compared to $12.2 million, or $0.72 per diluted share in 3Q 2025, and $15.5 million, or $0.92 per diluted share, for 4Q 2024.

The Company also declared a cash dividend on its common stock of $0.12 per share. The dividend is payable on February 28, 2026 to shareholders of record on February 9, 2026.

“Our diversified business model continues to be a source of consistency and strength enabling us to perform at a high level in different market conditions," said Ed Barry, CEO of the Company. With the IFH integration behind us, our focus on executing our strategic plan remains our top priority. Our growth levers offer us a wide range of options on which we are capitalizing."

“We continue to demonstrate our ability to deliver meaningful growth in tangible book value per share and loans outstanding, and we are pleased that net interest margin has proven durable,” said Steven J Schwartz, Chairman of the Company. “Our ongoing and planned investments in technology and human capital give me confidence that we are well-positioned to carry forward our strategy for profitable organic growth and to capitalize on opportunities that may arise for bolt-on and other acquisitions. Further, I expect our ongoing, opportunistic stock buyback program will, over time, prove to have been a wise use of our capital.”

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 income from the call of brokered time deposits, merger-related expenses and other one-time non-recurring transactions.

	Fourth Quarter 2025								Third Quarter 2025
(in thousands, except per share data)	Income Before Income Taxes		Income Tax Expense		Net Income		Diluted Earnings per Share		Income Before Income Taxes			Income Tax Expense (Benefit)			Net Income			Diluted Earnings per Share
GAAP Net Income	$	19,681	$	4,644	$	15,037	$	0.91	$	19,867		$	4,802		$	15,065		$	0.89
Deduct: Income from the Call of Brokered Time Deposits		—		—		—				(4,618	)		(1,129	)		(3,489	)
Add: Merger-Related Expenses		—		—		—				697			122			575
Core Net Income⁽¹⁾	$	19,681	$	4,644	$	15,037	$	0.91	$	15,946		$	3,795		$	12,151		$	0.72

	Year Ended December 31, 2025											Year Ended December 31, 2024
(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 (Benefit)		Net Income		Diluted Earnings per Share
GAAP Net Income	$	74,944		$	17,774		$	57,170		$	3.41	$	41,832	$	10,860	$	30,972	$	2.12
Deduct: Income from the Call of Brokered Time Deposits		(4,618	)		(1,129	)		(3,489	)				—		—		—
Add: Merger-Related Expenses		3,361			752			2,609					3,930		622		3,308
Add: Non-recurring Equity and Debt Investment Write-Down		—			—			—					2,620		—		2,620
Add: Initial IFH ACL Provision		—			—			—					4,194		1,025		3,169
Core Net Income⁽¹⁾	$	73,687		$	17,397		$	56,290		$	3.36	$	52,576	$	12,507	$	40,069	$	2.74

^{[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 pre-tax adjustments which are not indicative of operating performance 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.}

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

Fourth Quarter 2025 Results

Earnings Summary

Net income of $15.0 million was flat compared to 3Q 2025, and earnings per share of $0.91 increased $0.02 per share from 3Q 2025. Net income increased $7.5 million, or 99.6%, from $7.5 million, or $0.45 per diluted share, for 4Q 2024. 4Q 2025 core net income⁽¹⁾ of $15.0 million, or $0.91 per diluted share, increased $2.9 million, or 18.1%, from 3Q 2025 core net income of $12.2 million, or $0.72 per diluted share. 4Q 2025 core net income decreased $0.4 million, or 2.8%, from 4Q 2024 core net income of $15.5 million, or $0.92 per diluted share.

Net interest income of $50.3 million decreased $1.7 million, or 3.3% (not annualized), compared to 3Q 2025, and increased $6.0 million, or 13.4%, year-over-year.
- During 3Q 2025 there were two non-recurring events that impacted net interest 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 adjustment 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, 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").
  - When excluding the Call of Brokered Time Deposits and Interest Income Adjustment in 3Q 2025, net interest income increased $1.6 million, or 3.2%, from 3Q 2025.
- Interest income of $68.6 million increased $3.7 million, or 5.8% (not annualized), over 3Q 2025, and increased $6.9 million, or 11.2%, year-over-year. When excluding the Interest Income Adjustment, interest income increased $2.4 million from 3Q 2025, driven by $0.8 million of growth from OpenSky^™and $1.6 million from the Commercial Bank, while the increase year-over-year was primarily driven by strong balance sheet growth and higher net PAA.
  - Interest income included $0.1 million from net PAA in 4Q 2025, compared to $0.2 million in 3Q 2025 and $0.7 million in net PAA in 4Q 2024.
- Interest expense of $18.4 million increased $5.5 million, or 42.6% (not annualized), compared to 3Q 2025, and increased $1.0 million, or 5.6%, year-over-year. When excluding the Call of Brokered Time Deposits, interest expense increased $0.9 million, or 5.1%, compared to 3Q 2025, primarily driven by $0.5 million lower PAA and a $0.4 million increase from borrowings costs. The increase of $1.0 million year-over-year was primarily driven by $1.3 million of lower PAA offset by a $0.3 million shift in portfolio mix.
  - Interest expense included a $0.2 million benefit from net PAA in 4Q 2025, compared to a $5.3 million benefit in 3Q 2025, which included $4.6 million from the Call of Brokered Time Deposits. There was $1.4 million from net PAA in 4Q 2024.
The 4Q 2025 provision for credit losses was $4.0 million, a decrease of $0.7 million from 3Q 2025. During the quarter, a $2.0 million credit to the allowance for credit losses was made to reflect recoveries resulting from the sale of $69.5 million charged-off OpenSky^™ credit card receivables. Net charge-offs totaled $2.4 million, or 0.32% of portfolio loans (annualized), down from $2.5 million or 0.35% of portfolio loans (annualized), in 3Q 2025. Net charge-offs in the quarter include $1.9 million from the Commercial Bank and $0.5 million from OpenSky^™ loans. Net charge-offs for the Commercial Bank increased $1.6 million from 3Q 2025 primarily driven by legacy Commercial Bank loans not previously provided for, and OpenSky^™ net-charge-offs decreased $1.7 million from 3Q 2025 primarily driven by the sale of OpenSky^™ credit card debt.
- At December 31, 2025, the ACL Coverage Ratio was 1.85%, down 3 bps from September 30, 2025, and flat year-over-year.
Fee Revenue of $12.5 million increased $1.4 million, compared to 3Q 2025 and increased $0.6 million year-over-year. During 4Q 2025, Core fee revenue⁽¹⁾of $12.5 million increased $1.4 million as a result of a $1.2 million higher SBIC investment income and a $0.3 million increase in credit card fees from OpenSky^™, offset by a $0.1 million decrease in loan servicing rights income. Year-over-year core fee revenue⁽¹⁾ decreased $2.1 million primarily due to a decrease in government lending revenue of $2.3 million offset by a $0.1 million increase from mortgage banking revenue and an increase of $0.1 million from service charges on deposits. Core fee revenue mix was 19.9% of total revenue for 4Q 2025, compared to 17.5% during 3Q 2025, and 24.7% during 4Q 2024.
Noninterest expense of $39.1 million increased $0.7 million compared to 3Q 2025 and increased $1.6 million compared to 4Q 2024. Core noninterest expense⁽¹⁾of $39.1 million increased $1.4 million compared to 3Q 2025 and increased $4.2 million compared to 4Q 2024. Core comparisons include:
- The increase of $1.4 million quarter-over-quarter was primarily driven by professional fees including costs for investment in OpenSky^™ initiatives and other investments in technology, offset by decreases from OpenSky^™marketing, occupancy & equipment from leases and software contracts, and data processing from Windsor^™ and OpenSky^™.
- Year-over-year expense growth of $4.2 million was driven by professional fees associated with investments in shared services areas, personnel expense due to headcount growth, marketing expense from OpenSky^™, and regulatory fees driven by the acquisition of IFH.
Income tax expense of $4.6 million, or 23.6% of pre-tax income for 4Q 2025, decreased $0.2 million from $4.8 million, or 24.2% of pre-tax income for 3Q 2025. The effective income tax rate change quarter-over-quarter was primarily due to the $1.1 million utilization of a deferred tax asset related to the Call of Brokered Time Deposits during 3Q 2025.
- The Core effective income tax rate⁽¹⁾ for 4Q 2025 and 3Q 2025 would have been 23.6% and 23.8%, respectively.

^{[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 pre-tax adjustments which are not indicative of operating performance 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 $3.6 billion at December 31, 2025 increased $216.8 million from September 30, 2025. Total assets growth year-over-year was $399.3 million, or 12.5%.

Gross Loans of $2.96 billion at December 31, 2025 increased $137.5 million, or 19.3% (annualized), from September 30, 2025 and increased $329.3 million, or 12.5%, year-over-year.
- Compared to September 30, 2025, growth was primarily driven by $79.1 million from commercial and industrial ("C&I"), $25.7 million from residential real estate, $15.3 million from construction real estate, $9.5 million from lender finance, and $5.9 million from OpenSky^™.
- Compared to December 31, 2024, growth was primarily driven by $143.7 million from C&I, $77.3 million from residential real estate, $40.5 million from commercial real estate ("CRE"), $38.3 million from construction real estate, $14.6 million from OpenSky^™, and $12.8 million from lender finance.
- C&l loans, plus owner-occupied CRE loans totaled 37.7% of total portfolio loans at December 31, 2025, consistent with the prior quarter, and 37.8% at December 31, 2024.
Total deposits of $3.09 billion at December 31, 2025 increased $180.9 million, or 24.6% (annualized), from September 30, 2025, and increased $331.0 million, or 12.0% (annualized) from December 31, 2024.
- When excluding the increase in brokered time deposits of $139.1 million, customer deposits increased $41.8 million or 5.7% (annualized), including $116.0 million of growth in customer money market deposits, offset by a decrease of $49.5 million in customer time deposits, an $18.5 million decrease from interest-bearing demand accounts, a $5.0 million decrease from noninterest-bearing deposits, and a $1.2 million decrease from savings accounts.
- The increase in total deposits of $331.0 million year-over-year was driven by $288.5 million in growth from customer money market deposits, $43.6 million from brokered time deposits, $41.6 million from noninterest-bearing deposits, $18.4 million from interest-bearing demand accounts, offset by a decrease of $59.2 million from customer time deposits, and $1.8 million from savings accounts.

Insured and protected¹ deposits were approximately $2.1 billion as of December 31, 2025 representing 68.4% of the Company's deposit portfolio.
Low interest and noninterest-bearing DDA deposits of $1.1 billion, or 36.3% of deposits, decreased $24.7 million, or 8.6% (annualized) from 3Q 2025, but increased $58.1 million, or 5.5% year-over-year.
- The average rate on the low interest and noninterest-bearing deposits was 0.14% for 4Q 2025, which remained flat compared to 3Q 2025 and year-over-year.

The average portfolio loans-to-deposit ratio was 97.0% for 4Q 2025, compared to 95.6% for 3Q 2025, and 99.3% for 4Q 2024.
The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $230.1 million, or 6.4% of total assets, an effective duration of 2.5 years, with U.S. Treasury Securities representing 60% of the overall investment portfolio at December 31, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio improved $1.0 million during the quarter to negative $5.8 million after-tax as of December 31, 2025, which represents 1.4% 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 December 31, 2025 totaled $817.9 million, compared to $858.4 from 3Q 2025. During 4Q 2025, available collateralized lines of credit totaled $731.6 million, unsecured lines of credit with other banks totaled $76.0 million and unpledged investment securities available as collateral for potential additional borrowings totaled $9.3 million.
Capital Positions – As of December 31, 2025, the Company reported a Common Equity Tier-1 capital ratio of 12.98%, compared to 13.54% at September 30, 2025. At December 31, 2025, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
- Shares repurchased and retired during the three months ended December 31, 2025, as part of the Company's stock repurchase program, totaled 304,288 shares at an average price of $28.12, for a total cost of $8.6 million. As of December 31, 2025, there was $3.3 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on February 28, 2026.

^{[1] Protected deposits includes deposits that are indirectly protected under the product terms.}

Financial Metrics

Net Interest Margin – NIM of 5.94% for 4Q 2025, decreased 42 bps compared to the prior quarter, and increased 7 bps year-over-year. Commercial Bank NIM⁽¹⁾ of 4.18% decreased 46 bps (but increased 21 bps when excluding PAA) compared to the prior quarter, and increased 19 bps year-over-year. Net PAA for 4Q 2025 was 3 bps for NIM and 3 bps for Commercial Bank NIM⁽¹⁾.

3Q 2025 includes the previously mentioned $4.6 million Call of Brokered Time Deposits and $1.3 million Interest Income Adjustment. Excluding the Interest Income Adjustment and Call of Brokered Time Deposits in 3Q 2025, Commercial Bank NIM⁽¹⁾ declined to 4.18%, or 3 bps, in 4Q 2025.
The average yield on interest earning assets of 8.10% increased 17 bps compared to the prior quarter and decreased 7 bps year-over-year. During 3Q 2025 there was a 16 bps impact from the Interest Income Adjustment. Excluding this item, the average yield in 3Q 2025 would have been 8.09%, which results in a increase of 1 bps compared to 3Q 2025. The decrease quarter-over-quarter was primarily a result of changes in the overall rate environment. The average yield decreased 7 bps year-over-year primarily due to changes in the overall rate environment.
- The Commercial Bank Loan Yield⁽¹⁾ of 6.95% for 4Q 2025 increased 21 bps compared to 3Q 2025, and decreased 3 bps year-over-year. Excluding the Interest Income Adjustment impact, the average yield in 3Q 2025 would have been 6.94%, which remained flat compared to 3Q 2025.
The total cost of deposits of 2.36% for 4Q 2025 increased 63 bps compared to the prior quarter and decreased 14 bps year-over-year. During 3Q 2025 there was a 63 bps impact from the Call of Brokered Time Deposits. Excluding this item, the cost of deposits for the quarter would have been 2.36%, and 4Q 2025 would have been consistent with 3Q 2025.
The total cost of interest-bearing deposits increased 87 bps quarter-over-quarter, and decreased 19 bps year-over-year, to 3.28% for 4Q 2025. Excluding the Call of Brokered Time Deposits, the 3Q 2025 cost of interest-bearing deposits would have been 3.28%, and 4Q 2025 would have been consistent with 3Q 2025. The decrease year-over-year was due to a shift in product mix as well as a change in the rate environment.
Net PAA of $0.2 million, or 3 bps of NIM and 3 bps of Commercial Bank NIM⁽¹⁾, during 4Q 2025, decreased $5.3 million from 3Q 2025 mainly due to the Call of Brokered Time Deposits. There was $0.7 million from net PAA during 4Q 2024.
NIM for 2025 was 6.10%, a year-over-year decrease of 15 bps from 6.22% for 2024. The decrease was primarily driven by the acquisition of commercial loans from IFH, which diluted the impact from OpenSky™.
- Commercial Bank NIM⁽¹⁾ for 2025 was 4.38%, a year-over-year increase of 45 bps from 3.93% for 2024 that was primarily driven by the acquisition of commercial loans from IFH and balance sheet growth from the Commercial Bank during 2025. Excluding the Call of Brokered Time Deposits and Interest Income Adjustment, Commercial Bank NIM⁽¹⁾ for 2025 would have been 4.27%, an increase of 34 bps year-over-year.

Fee Revenue Mix – The fee revenue mix was 19.9% of total revenue for 4Q 2025, compared to 17.5% during 3Q 2025, and 21.2% during 4Q 2024. The core fee revenue mix⁽¹⁾was 19.9% for 4Q 2025, compared to 17.5% during 3Q 2025, and 24.7% during 4Q 2024.

Credit Metrics and Asset Quality – The ACL Coverage Ratio equaled 1.85% at December 31, 2025, a decrease of 3 bps from September 30, 2025, and remained flat year-over-year.

Nonperforming assets were $58.3 million or 1.62% of total assets at December 31, 2025, an increase of $6.0 million or 7 bps compared to September 30, 2025. The increase in nonperforming assets from 3Q 2025 was primarily driven by $3.9 million from OREO, or 5 bps, and $2.2 million from the acquired IFH portfolio, or 2 bps. Nonperforming assets increased $28.0 million or 67 bps year-over-year, mainly due to the $15.9 million increase during 3Q 2025 from two loan relationships acquired as part of the IFH transaction, described last quarter, $4.4 million from other changes in the acquired IFH portfolio, $3.9 million from OREO, and $3.8 million from the legacy Commercial Bank portfolio. At December 31, 2025, substandard loans totaled $58.5 million, or 2.0% of total portfolio loans, compared to $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025 and $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024. The $10.1 million year-over-year increase in substandard loans was primarily driven by the $15.9 million of loans described above. At December 31, 2025, special mention loans totaled $57.9 million, or 2.0% of total portfolio loans, compared to $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025, and $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024.

Efficiency Ratios – The efficiency ratio was 62.3% for 4Q 2025, compared to 60.8% for 3Q 2025 and 66.7% for 4Q 2024. The core efficiency ratio⁽¹⁾ was 62.3% for 4Q 2025, which decreased from 64.4% compared to the prior quarter, and increased from 59.3% for 4Q 2024.

^{[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 pre-tax adjustments which are not indicative of operating performance 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.}

Financial Metrics (Continued)

Performance Ratios – ROA was 1.71% for 4Q 2025, compared to 1.77% for 3Q 2025, and 0.96% for 4Q 2024. Core ROA⁽⁹⁾for 4Q 2025 was 1.71%, compared to 1.43% for 3Q 2025, and 1.97% for 4Q 2024.

ROE was 15.23% for 4Q 2025, compared to 15.57% for 3Q 2025, and 8.50% for 4Q 2024. Core ROE⁽¹⁾ was 15.23% for 4Q 2025, compared to 12.56% for 3Q 2025, and 17.46% for 4Q 2024.
ROTCE⁽¹⁾ was 17.23% for 4Q 2025, compared to 17.49% for 3Q 2025, and 9.33% for 4Q 2024. Core ROTCE⁽¹⁾ for 4Q 2025 was 17.23%, compared to 14.15% for 3Q 2025, and 18.91% for 4Q 2024.

Book Value and Tangible Book Value – Book value per common share of $24.54 at December 31, 2025, increased $0.74 when compared to September 30, 2025, and increased $3.23 when compared to December 31, 2024. Tangible book value per common share⁽¹⁾ increased $0.72, or 3.4% (not annualized), to $22.05 at December 31, 2025 when compared to September 30, 2025, and increased $2.96, or 15.5%, when compared to December 31, 2024. Tangible book value⁽¹⁾ 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.

^{[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 pre-tax adjustments which are not indicative of operating performance 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 $129.6 million at December 31, 2025 compared to September 30, 2025, driven by $79.1 million from C&I, $25.7 million from residential real estate, and $15.3 million from construction real estate. Portfolio loans increased $327.8 million at December 31, 2025 compared to December 31, 2024, driven by $143.7 million from C&I, $77.3 million from residential real estate, and $40.5 million from CRE. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

Net Interest Income – Interest income of $52.0 million increased $3.0 million from the prior quarter, primarily due to 3Q 2025, due to growth in the Commercial Bank loan portfolio during the quarter. Excluding the $1.3 million Interest Income Adjustment in 3Q 2025, interest income grew by $1.6 million from 3Q 2025. Interest expense of $18.2 million increased $5.5 million, primarily due to 3Q 2025 including a $4.6 million benefit from the Call of Brokered Time Deposits. The remaining $0.9 million increase was due to $0.5 million from lower PAA and $0.4 million from short term borrowings during 4Q 2025.

Credit Metrics – Nonperforming assets increased 8 bps to 1.71% of total assets at December 31, 2025 compared to September 30, 2025. Total nonaccrual loans at December 31, 2025 were $54.4 million, an increase of $2.2 million or 4.0% compared to $52.2 million at September 30, 2025.

Classified and Criticized Loans – At December 31, 2025, special mention loans totaled $57.9 million, or 2.0% of total portfolio loans, compared to $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025. At December 31, 2025, substandard loans totaled $58.5 million, or 2.0% of total portfolio loans, compared to $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025.

⁽¹⁾ ^{Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.}

OpenSky^™

Accounts – During 4Q 2025, credit card accounts of 585.5 thousand declined by 2.1 thousand, or 0.4% (not annualized) from September 30, 2025, and increased 32.9 thousand, or 6.0% year-over-year.

Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $142.4 million at December 31, 2025 increased by $5.9 million, or 4.3% (not annualized), compared to September 30, 2025 and $14.6 million, or 11.5%, year-over-year. Deposit balances of $163.2 million for 4Q 2025 decreased $3.7 million compared to 3Q 2025 and decreased $3.2 million, or 1.9% year-over-year. Gross unsecured loan balances of $61.4 million at December 31, 2025 increased $7.7 million, or 14.4% (not annualized), compared to $53.6 million at September 30, 2025, and increased $18.9 million year-over-year. Gross secured loan balances of $83.1 million at December 31, 2025 decreased $1.7 million, or 2.0% (not annualized), compared to $84.7 million at September 30, 2025, and decreased $4.2 million, or 4.8% (not annualized) year-over-year.

Net Interest Income – Interest income of $16.4 million increased $0.7 million compared to 3Q 2025. Average OpenSky^™ credit card loan balances, net of reserves and deferred fees of $133.9 million for 4Q 2025, increased $4.8 million, or 3.7% (not annualized), compared to 3Q 2025.

Fee Revenue – Total fee revenue of $4.8 million increased $0.3 million from the prior quarter primarily driven by other credit-card related fees associated with the legacy product.

Noninterest Expense – Total noninterest expense of $14.6 million increased $0.6 million compared to 3Q 2025, driven primarily by professional fees associated with the legacy and unsecured products.

OpenSky^™Credit – Portfolio credit metrics continued to be consistent with modeled expectations during 4Q 2025. The provision for credit losses of $1.3 million decreased $1.5 million when compared to the prior quarter, primarily due to a $2.0 million credit to the allowance for credit losses was made to reflect the debt sale. OpenSky's^™ unsecured loan product is offered exclusively to current and former secured card customers. 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.

Capital Bank Home Loans

Originations of loans held for sale totaled $107.3 million during 4Q 2025, with $83.0 million of mortgage loans sold resulting in a gain on sale of loans of $2.1 million, representing a 2.58% gain on sale as a percentage of total loans sold. 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.

Windsor Advantage^™

Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of Capital Bank related servicing fees, during 4Q 2025. Gross government loan servicing revenue totaled $5.3 million, including $1.1 million of Capital Bank related servicing fees, during 3Q 2025. Windsor's^™ total servicing portfolio was $3.1 billion at December 31, 2025, and $3.2 billion at September 30, 2025.

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited

	Quarter Ended									4Q25 vs 3Q25					4Q25 vs 4Q24
(in thousands, except per share data)	December 31, 2025			September 30, 2025			December 31, 2024			$ Change			% Change		$ Change			% Change
Earnings Summary
Interest income	$	68,634		$	64,891		$	61,707		$	3,743		5.8	%	$	6,927		11.2	%
Interest expense		18,355			12,871			17,380			5,484		42.6	%		975		5.6	%
Net interest income		50,279			52,020			44,327			(1,741	)	(3.3	)%		5,952		13.4	%
Provision for credit losses		3,988			4,650			7,828			(662	)	(14.2	)%		(3,840	)	(49.1	)%
(Release of) provision for credit losses on unfunded commitments		(29	)		217			122			(246	)	(113.4	)%		(151	)	(123.8	)%
Noninterest income		12,464			11,068			11,913			1,396		12.6	%		551		4.6	%
Noninterest expense		39,103			38,354			37,514			749		2.0	%		1,589		4.2	%
Income before income taxes		19,681			19,867			10,776			(186	)	(0.9	)%		8,905		82.6	%
Income tax expense		4,644			4,802			3,243			(158	)	(3.3	)%		1,401		43.2	%
Net income	$	15,037		$	15,065		$	7,533		$	(28	)	(0.2	)%	$	7,504		99.6	%

Pre-tax pre-provision net revenue ("PPNR") ⁽¹⁾	$	23,640		$	24,734		$	18,726		$	(1,094	)	(4.4	)%	$	4,914		26.2	%
Core PPNR⁽¹⁾	$	23,640		$	20,813		$	23,961		$	2,827		13.6	%	$	(321	)	(1.3	)%

Common Share Data
Earnings per share - Basic	$	0.91		$	0.91		$	0.45		$	—		—	%	$	0.46		102.2	%
Earnings per share - Diluted	$	0.91		$	0.89		$	0.45		$	0.02		2.2	%	$	0.46		102.2	%
Core earnings per share - Diluted⁽¹⁾	$	0.91		$	0.72		$	0.92		$	0.19		26.4	%	$	(0.01	)	(1.1	)%
Weighted average common shares - Basic		16,493			16,586			16,595
Weighted average common shares - Diluted		16,493			16,844			16,729

Return Ratios
Return on average assets (annualized)		1.71	%		1.77	%		0.96	%
Core return on average assets (annualized)⁽¹⁾		1.71	%		1.43	%		1.97	%
Return on average equity (annualized)		15.23	%		15.57	%		8.50	%
Core return on average equity (annualized)⁽¹⁾		15.23	%		12.56	%		17.46	%
Return on average tangible common equity (annualized)⁽¹⁾		17.23	%		17.49	%		9.33	%
Core return on average tangible common equity (annualized)⁽¹⁾		17.23	%		14.15	%		18.91	%

______________

^{(1) Refer to Appendix for reconciliation of non-GAAP measures.}

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)

	Year Ended
	December 31,
(in thousands, except per share data)		2025			2024		$ Change			% Change
Earnings Summary
Interest income	$	260,871		$	213,301		$	47,570		22.3	%
Interest expense		64,879			58,555			6,324		10.8	%
Net interest income		195,992			154,746			41,246		26.7	%
Provision for credit losses		14,965			17,720			(2,755	)	(15.5	)%
(Release of) provision for credit losses on unfunded commitments		188			385			(197	)	(51.2	)%
Noninterest income		49,187			31,410			17,777		56.6	%
Noninterest expense		155,082			126,219			28,863		22.9	%
Income before income taxes		74,944			41,832			33,112		79.2	%
Income tax expense		17,774			10,860			6,914		63.7	%
Net income	$	57,170		$	30,972		$	26,198		84.6	%

Pre-tax pre-provision net revenue ("PPNR") ⁽¹⁾	$	90,097		$	59,937		$	30,160		50.3	%
Core PPNR⁽¹⁾	$	88,840		$	66,487		$	22,353		33.6	%

Common Share Data
Earnings per share - Basic	$	3.45		$	2.12		$	1.33		62.7	%
Earnings per share - Diluted	$	3.41		$	2.12		$	1.29		60.8	%
Core earnings per share - Diluted⁽¹⁾	$	3.36		$	2.74
Weighted average common shares - Basic		16,582			14,584
Weighted average common shares - Diluted		16,768			14,640

Return Ratios
Return on average assets		1.71	%		1.21	%
Core return on average assets⁽¹⁾		1.68	%		1.57	%
Return on average equity		15.13	%		10.78	%
Core return on average equity⁽¹⁾		14.90	%		13.94	%
Return on average tangible common equity⁽¹⁾		17.10	%		11.07	%
Core return on average tangible common equity⁽¹⁾		16.84	%		14.30	%

______________

^{(1) Refer to Appendix for reconciliation of non-GAAP measures.}

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)

	Quarter Ended						Quarter Ended
	December 31,						September 30,		June 30,		March 31,
(in thousands, except per share data)		2025		2024	% Change			2025		2025		2025
Balance Sheet Highlights
Assets	$	3,606,207	$	3,206,911	12.5	%	$	3,389,442	$	3,388,662	$	3,349,805
Investment securities available-for-sale		230,083		223,630	2.9	%		232,640		228,923		213,452
Mortgage loans held for sale		25,828		17,063	51.4	%		14,146		15,933		30,005
Portfolio loans receivable ⁽²⁾		2,959,457		2,630,163	12.5	%		2,821,983		2,739,808		2,678,406
Allowance for credit losses		54,660		48,652	12.3	%		53,045		47,447		48,454
Goodwill		25,969		21,126	22.9	%		25,969		22,478		24,085
Intangible assets		13,246		14,072	(5.9	)%		13,457		13,668		13,861
Core deposit intangibles		1,525		1,745	(12.6	)%		1,576		1,627		1,695
Deposits		3,092,979		2,761,939	12.0	%		2,912,053		2,940,738		2,891,333
FHLB borrowings		50,000		22,000	127.3	%		22,000		22,000		22,000
Other borrowed funds		2,062		12,062	(82.9	)%		12,062		12,062		12,062
Total stockholders' equity		401,978		355,139	13.2	%		394,770		380,035		369,577
Tangible common equity ⁽¹⁾		361,238		318,196	13.5	%		353,768		342,262		329,936

Common shares outstanding		16,381		16,663	(1.7	)%		16,589		16,582		16,657
Book value per share	$	24.54	$	21.31	15.2	%	$	23.80	$	22.92	$	22.19
Tangible book value per share⁽¹⁾	$	22.05	$	19.10	15.4	%	$	21.33	$	20.64	$	19.81
Dividends per share	$	0.12	$	0.10	20.0	%	$	0.12	$	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														Year Ended
(in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025		December 31, 2024			December 31, 2025		December 31, 2024
Interest income
Loans, including fees	$	64,933		$	60,838		$	60,810		$	58,691	$	58,602		$	245,272	$	202,915
Investment securities available-for-sale		1,728			1,805			1,582			1,861		1,539			6,976		5,441
Federal funds sold and other		1,973			2,248			2,194			2,208		1,566			8,623		4,945
Total interest income		68,634			64,891			64,586			62,760		61,707			260,871		213,301

Interest expense
Deposits		17,805			12,732			16,722			16,512		16,385			63,771		56,170
Borrowed funds		550			139			218			201		995			1,108		2,385
Total interest expense		18,355			12,871			16,940			16,713		17,380			64,879		58,555

Net interest income		50,279			52,020			47,646			46,047		44,327			195,992		154,746
Provision for credit losses		3,988			4,650			4,081			2,246		7,828			14,965		17,720
(Release of) provision for credit losses on unfunded commitments		(29	)		217			—			—		122			188		385
Net interest income after provision for credit losses		46,320			47,153			43,565			43,801		36,377			180,839		136,641
Noninterest income
Service charges on deposits		371			425			262			258		241			1,316		883
Credit card fees		4,837			4,509			4,298			3,722		3,733			17,366		15,999
Mortgage banking revenue		1,960			1,927			1,754			1,831		1,821			7,472		7,146
Government lending revenue		—			14			3,112			1,096		2,301			4,222		2,301
Government loan servicing revenue		4,036			4,265			3,644			3,568		3,993			15,513		3,993
Loan servicing rights (government guaranteed)		295			368			(590	)		472		1,013			545		1,013
Non-recurring equity and debt investment write-down		—			—			—			—		(2,620	)		—		(2,620	)
Other income		965			(440	)		626			1,602		1,431			2,753		2,695
Total noninterest income		12,464			11,068			13,106			12,549		11,913			49,187		31,410
Noninterest expenses
Salaries and employee benefits		17,914			17,728			18,460			18,067		16,513			72,169		56,037
Occupancy and equipment		2,638			2,849			2,995			2,910		2,976			11,392		8,244
Professional fees		4,294			2,131			2,422			2,112		2,150			10,959		7,846
Data processing		7,502			7,654			7,520			7,112		7,210			29,788		27,689
Advertising		1,398			1,714			1,371			1,779		1,032			6,262		6,359
Loan processing		1,152			1,114			979			743		969			3,988		2,431
Foreclosed real estate expenses, net		—			—			—			1		—			1		2
Merger-related expenses		—			697			1,398			1,266		2,615			3,361		3,930
Operational and other card fraud related losses		750			923			933			903		993			3,509		3,714
Regulatory assessment expenses		858			740			884			889		554			3,371		1,937
Other operating		2,597			2,804			2,610			2,271		2,502			10,282		8,030
Total noninterest expenses		39,103			38,354			39,572			38,053		37,514			155,082		126,219
Income before income taxes		19,681			19,867			17,099			18,297		10,776			74,944		41,832
Income tax expense		4,644			4,802			3,963			4,365		3,243			17,774		10,860
Net income	$	15,037		$	15,065		$	13,136		$	13,932	$	7,533		$	57,170	$	30,972

Consolidated Balance Sheets
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(audited)
(in thousands, except share data)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Assets
Cash and due from banks	$	30,894		$	25,724		$	26,843		$	27,836		$	25,433
Interest-bearing deposits at other financial institutions		224,611			163,078			247,704			266,092			179,841
Federal funds sold		60			59			59			59			58
Total cash and cash equivalents		255,565			188,861			274,606			293,987			205,332
Investment securities available-for-sale		230,083			232,640			228,923			213,452			223,630
Restricted investments		8,397			7,057			7,043			7,031			4,479
Loans held for sale		25,828			14,146			15,933			30,005			17,063
Portfolio loans receivable, net of deferred fees and costs		2,959,457			2,821,983			2,739,808			2,678,406			2,630,163
Less allowance for credit losses		(54,660	)		(53,045	)		(47,447	)		(48,454	)		(48,652	)
Total portfolio loans held for investment, net		2,904,797			2,768,938			2,692,361			2,629,952			2,581,511
Premises and equipment, net		15,072			15,304			14,863			15,085			15,525
Accrued interest receivable		16,695			19,011			15,149			19,458			16,664
Goodwill		25,969			25,969			22,478			24,085			21,126
Intangible assets		13,246			13,457			13,668			13,861			14,072
Core deposit intangibles		1,525			1,576			1,627			1,695			1,745
Loan servicing assets		1,816			2,070			2,221			2,244			5,511
Deferred tax asset		14,992			14,885			15,667			15,902			16,670
Bank owned life insurance		45,488			45,105			44,721			44,335			43,956
Other assets		46,734			40,423			39,402			38,713			39,627
Total assets	$	3,606,207		$	3,389,442		$	3,388,662		$	3,349,805		$	3,206,911

Liabilities
Deposits
Noninterest-bearing	$	852,520		$	857,543		$	836,979		$	812,224		$	810,928
Interest-bearing		2,240,459			2,054,510			2,103,759			2,079,109			1,951,011
Total deposits		3,092,979			2,912,053			2,940,738			2,891,333			2,761,939
Federal Home Loan Bank advances		50,000			22,000			22,000			22,000			22,000
Other borrowed funds		2,062			12,062			12,062			12,062			12,062
Accrued interest payable		8,745			8,045			8,158			9,995			9,393
Other liabilities		50,443			40,512			25,669			44,838			46,378
Total liabilities		3,204,229			2,994,672			3,008,627			2,980,228			2,851,772

Stockholders' equity
Common stock		164			166			166			167			167
Additional paid-in capital		120,913			127,359			126,888			128,692			128,598
Retained earnings		286,661			274,041			261,093			249,925			237,843
Accumulated other comprehensive loss		(5,760	)		(6,796	)		(8,112	)		(9,207	)		(11,469	)
Total stockholders' equity		401,978			394,770			380,035			369,577			355,139
Total liabilities and stockholders' equity	$	3,606,207		$	3,389,442		$	3,388,662		$	3,349,805		$	3,206,911

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 December 31, 2025						Three Months Ended September 30, 2025						Three Months Ended December 31, 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	$	196,281	$	1,868	3.78	%	$	194,858	$	2,139	4.36	%	$	140,206	$	1,446	4.10	%
Federal funds sold		60		1	6.61			59		1	5.79			58		—	—
Investment securities available-for-sale		238,295		1,728	2.88			241,086		1,805	2.97			236,951		1,539	2.58
Restricted investments		6,725		104	6.14			7,052		108	6.06			7,292		120	6.55
Loans held for sale		17,118		263	6.10			13,783		228	6.57			25,614		193	3.00
Portfolio loans receivable⁽²⁾⁽³⁾		2,902,033		64,670	8.84			2,789,815		60,610	8.62			2,592,960		58,409	8.96
Total interest earning assets		3,360,512		68,634	8.10			3,246,653		64,891	7.93			3,003,081		61,707	8.17
Noninterest earning assets		138,028						131,643						117,026
Total assets	$	3,498,540					$	3,378,296					$	3,120,107

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	269,342		366	0.54		$	282,873		388	0.54		$	257,446		424	0.66
Savings		12,033		11	0.36			12,887		15	0.47			13,497		20	0.59
Money market accounts		1,061,293		9,124	3.41			985,106		8,650	3.48			763,526		7,131	3.72
Time deposits		812,186		8,304	4.06			815,302		3,679	1.79			847,618		8,810	4.13
Borrowed funds		46,497		550	4.69			34,062		139	1.62			97,116		995	4.08
Total interest-bearing liabilities		2,201,351		18,355	3.31			2,130,230		12,871	2.40			1,979,203		17,380	3.49
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		67,509						43,245						58,460
Noninterest-bearing deposits		837,930						820,899						729,907
Stockholders’ equity		391,750						383,922						352,537
Total liabilities and stockholders’ equity	$	3,498,540					$	3,378,296					$	3,120,107

Net interest spread					4.79	%					5.53	%					4.68	%
Net interest income			$	50,279					$	52,020					$	44,327
Net interest margin⁽⁴⁾					5.94	%					6.36	%					5.87	%

_______________

^{(1)   Annualized.}
^{(2)   Includes nonaccrual loans.}
^{(3)   For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, collectively, Commercial Bank Loan Yield was 6.95%, 6.74% and 6.98%, respectively.}
^{(4)   For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, collectively, Commercial Bank Net Interest Margin was 4.18%, 4.64% and 3.99%, respectively.}

	Year Ended December 31,
		2025						2024
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	194,080	$	8,211	4.23	%	$	98,319	$	4,569	4.65	%
Federal funds sold		59		2	3.39			57		3	5.26
Investment securities available-for-sale		236,346		6,976	2.95			228,909		5,441	2.38
Restricted investments		6,648		410	6.17			5,563		373	6.71
Loans held for sale		12,576		892	7.09			12,121		569	4.69
Portfolio loans receivable⁽¹⁾⁽²⁾		2,765,758		244,380	8.84			2,142,638		202,346	9.44
Total interest earning assets		3,215,467		260,871	8.11			2,487,607		213,301	8.57
Noninterest earning assets		133,207						66,442
Total assets	$	3,348,674					$	2,554,049

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	269,224	$	1,513	0.56	%	$	221,437	$	1,003	0.45	%
Savings		12,789		60	0.47			6,732		27	0.40
Money market accounts		960,882		33,195	3.45			704,002		28,741	4.08
Time deposits		825,847		29,003	3.51			561,369		26,399	4.70
Borrowed funds		37,196		1,108	2.98			63,686		2,385	3.74
Total interest-bearing liabilities		2,105,938		64,879	3.08			1,557,226		58,555	3.76
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		53,197						34,043
Noninterest-bearing deposits		811,798						675,360
Stockholders’ equity		377,741						287,420
Total liabilities and stockholders’ equity	$	3,348,674					$	2,554,049

Net interest spread					5.03	%					4.81	%
Net interest income			$	195,992					$	154,746
Net interest margin⁽³⁾					6.10	%					6.22	%

^{(1)   Includes nonaccrual loans.}
^{(2)   For the years ended December 31, 2025 and 2024, collectively. Commercial Bank Loan Yield was 6.99% and 7.03%, respectively.}
^{(3)   For the years ended December 31, 2025 and 2024, collectively. Commercial Bank Net Interest Margin was 4.38% and 3.93%, 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 December 31, 2025, September 30, 2025, and December 31, 2024.

Segments

For the three months ended December 31, 2025

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income

51,994

16,377

—

263

68,634

Interest expense

18,230

—

125

18,355

Net interest income

33,764

16,377

—

138

50,279

Provision for credit losses

2,715

1,273

—

3,988

Release of credit losses on unfunded commitments

(29

)

—

(29

)

Net interest income after provision

31,078

15,104

—

138

46,320

Noninterest income

Service charges on deposits

371

—

371

Credit card fees

—

4,837

—

4,837

Mortgage banking revenue

433

—

1,527

1,960

Government lending revenue

—

Government loan servicing revenue⁽¹⁾

(952

)

—

4,988

—

4,036

Loan servicing rights (government guaranteed)

295

—

295

Other income

698

—

257

965

Total noninterest income

845

4,847

4,988

1,784

12,464

Noninterest expenses

Salaries and employee benefits

11,071

3,038

2,425

1,380

17,914

Occupancy and equipment

1,773

688

137

2,638

Professional fees

3,047

947

247

4,294

Data processing

1,026

6,687

(165

)

(46

)

7,502

Advertising

608

634

)

159

1,398

Loan processing

101

475

163

413

1,152

Foreclosed real estate expenses, net

—

Merger-related expenses

—

Operational and other card fraud related losses

737

—

750

Regulatory assessment expenses

230

388

143

858

Other operating

639

966

763

229

2,597

Total noninterest expenses

18,508

14,560

3,419

2,616

39,103

Net income (loss) before taxes

13,415

5,391

1,569

(694

)

19,681

Total assets

3,407,326

140,914

25,993

31,974

3,606,207

________________________

^{(1) Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended December 31, 2025.}

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⁽³⁾

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)

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 and other card fraud related 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 $52.0 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.}
^{(3) Interest expense of $12.8 million for the Commercial Bank includes the $4.6 million Call of Brokered Time Deposits.}

Segments

For the three months ended December 31, 2024

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income

46,061

15,454

—

192

61,707

Interest expense

17,249

—

131

17,380

Net interest income

28,812

15,454

—

44,327

Provision for credit losses

6,651

1,177

—

7,828

Provision for credit losses on unfunded commitments

122

—

122

Net interest income after provision

22,039

14,277

—

36,377

Noninterest income

Service charges on deposits

241

—

241

Credit card fees

—

3,733

—

3,733

Mortgage banking revenue

284

—

1,537

1,821

Government lending revenue

2,301

—

2,301

Government loan servicing revenue⁽¹⁾

(543

)

—

4,536

—

3,993

Loan servicing rights (government guaranteed

1,013

—

1,013

Non-recurring equity and debt investment write-down

(2,620

)

—

(2,620

)

Other income

1,252

139

1,431

Total noninterest income

1,928

3,743

4,566

1,676

11,913

Noninterest expense

Salaries and employee benefits

10,383

2,985

1,662

1,483

16,513

Occupancy and equipment

1,655

617

537

167

2,976

Professional fees

914

845

123

268

2,150

Data processing

639

6,495

7,210

Advertising

767

106

1,032

Loan processing

754

198

969

Foreclosed real estate expenses, net

—

Merger-related expenses

2,615

—

2,615

Operational and other card fraud related losses

969

—

993

Regulatory assessment expenses

525

553

Other operating

1,596

570

206

131

2,503

Total noninterest expenses

19,872

12,595

2,670

2,377

37,514

Net income (loss) before taxes

4,095

5,425

1,896

(640

)

10,776

Total assets

3,033,792

125,913

25,515

21,691

3,206,911

________________________
^{(1) Gross government loan servicing revenue totaled $4.5 million, including $0.5 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended December 31, 2024.}

Segments

For the year ended December 31, 2025

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income⁽³⁾

199,122

60,943

—

806

260,871

Interest expense⁽⁴⁾

64,503

—

376

64,879

Net interest income

134,619

60,943

—

430

195,992

Provision for credit losses

6,172

8,793

—

14,965

Release of credit losses on unfunded commitments

188

—

188

Net interest income after provision

128,259

52,150

—

430

180,839

Noninterest income

Service charges on deposits

1,316

—

1,316

Credit card fees

—

17,366

—

17,366

Mortgage banking revenue

1,476

—

5,996

7,472

Government lending revenue

4,222

—

4,222

Government loan servicing revenue⁽¹⁾

(4,116

)

—

19,629

—

15,513

Loan servicing rights (government guaranteed)⁽²⁾

545

—

545

Other income

1,913

—

827

2,753

Total noninterest income

5,356

17,379

19,629

6,823

49,187

Noninterest expenses

Salaries and employee benefits

43,346

13,057

9,795

5,971

72,169

Occupancy and equipment

6,888

2,381

1,535

588

11,392

Professional fees

6,849

2,661

442

1,007

10,959

Data processing

2,270

27,320

118

29,788

Advertising

2,815

2,811

212

424

6,262

Loan processing

1,968

533

291

1,196

3,988

Foreclosed real estate expenses, net

—

Merger-related expenses

3,361

—

3,361

Operational and other card fraud related losses

144

3,365

—

3,509

Regulatory assessment expenses

2,743

388

143

3,371

Other operating

5,357

2,407

1,985

533

10,282

Total noninterest expenses

75,742

54,923

14,521

9,896

155,082

Net income (loss) before taxes

57,873

14,606

5,108

(2,643

)

74,944

Total assets

3,407,326

140,914

25,993

31,974

3,606,207

________________________

^{(1) Gross government loan servicing revenue totaled $19.6 million, including $4.1 million of servicing fees earned from the Commercial Bank by WindsorTM, for the year ended December 31, 2025.}
^{(2) Loan servicing rights of $0.5 million for the Commercial Bank includes a $1.7 million fair value adjustment associated with the loan servicing portfolio.}^{(3)Interest income of $199.1 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.}
^{(4) Interest expense of $64.5 million for the Commercial Bank includes the $4.6 million Call of Brokered Time Deposits.}

Segments

For the year ended December 31, 2024

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income

150,948

61,785

—

568

213,301

Interest expense

58,192

—

363

58,555

Net interest income

92,756

61,785

—

205

154,746

Provision for credit losses

10,391

7,329

—

17,720

Provision for credit losses on unfunded commitments

385

—

385

Net interest income after provision

81,980

54,456

—

205

136,641

Noninterest income

Service charges on deposits

883

—

883

Credit card fees

—

15,999

—

15,999

Mortgage banking revenue

1,072

—

6,074

7,146

Government lending revenue

2,301

—

2,301

Government loan servicing revenue⁽¹⁾

(543

)

—

4,536

—

3,993

Loan servicing rights (government guaranteed)

1,013

—

1,013

Non-recurring equity and debt investment write-down

(2,620

)

—

(2,620

)

Other income

1,932

123

610

2,695

Total noninterest income

4,038

16,122

4,566

6,684

31,410

Noninterest expenses

Salaries and employee benefits

36,229

12,156

1,662

5,990

56,037

Occupancy and equipment

5,085

2,035

537

587

8,244

Professional fees

3,575

3,183

123

965

7,846

Data processing

1,496

25,991

170

27,689

Advertising

1,982

3,944

106

327

6,359

Loan processing

1,517

852

2,431

Foreclosed real estate expenses, net

—

Merger-related expenses

3,930

—

3,930

Operational and other card fraud related losses

3,677

—

3,714

Regulatory assessment expenses

1,909

1,937

Other operating

5,165

2,179

206

480

8,030

Total noninterest expenses

60,927

53,245

2,670

9,377

126,219

Net income (loss) before taxes

25,091

17,333

1,896

(2,488

)

41,832

Total assets

3,033,792

125,913

25,515

21,691

3,206,911

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
	Quarter Ended
(in thousands, except per share data)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Earnings:
Net income	$	15,037		$	15,065		$	13,136		$	13,932		$	7,533
Earnings per common share, diluted		0.91			0.89			0.78			0.82			0.45
Net interest margin		5.94	%		6.36	%		6.04	%		6.05	%		5.87	%
Commercial Bank net interest margin⁽²⁾		4.18	%		4.64	%		4.38	%		4.32	%		3.99	%
Return on average assets⁽¹⁾		1.71	%		1.77	%		1.60	%		1.75	%		0.96	%
Return on average equity⁽¹⁾		15.23	%		15.57	%		14.17	%		15.56	%		8.50	%
Efficiency ratio		62.32	%		60.79	%		65.14	%		64.94	%		66.70	%

Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	2,959,457		$	2,821,983		$	2,739,808		$	2,678,406		$	2,630,163
Total deposits		3,092,979			2,912,053			2,940,738			2,891,333			2,761,939
Total assets		3,606,207			3,389,442			3,388,662			3,349,805			3,206,911
Total stockholders' equity		401,978			394,770			380,035			369,577			355,139
Total average portfolio loans receivable, net deferred fees		2,902,033			2,789,815			2,733,865			2,634,110			2,592,960
Total average deposits		2,992,784			2,917,067			2,841,153			2,768,284			2,611,994
Portfolio loans-to-deposit ratio (period-end balances)		95.68	%		96.91	%		93.17	%		92.64	%		95.23	%
Portfolio loans-to-deposit ratio (average balances)		96.97	%		95.64	%		96.22	%		95.15	%		99.27	%

Asset Quality Ratios:
Nonperforming assets to total assets		1.62	%		1.54	%		1.07	%		1.28	%		0.94	%
Nonperforming loans to total loans		1.84	%		1.85	%		1.32	%		1.60	%		1.15	%
Net charge-offs to average portfolio loans ⁽¹⁾		0.32	%		0.35	%		0.75	%		0.38	%		0.37	%
Allowance for credit losses to total loans		1.85	%		1.88	%		1.73	%		1.81	%		1.85	%
Allowance for credit losses to non-performing loans		100.44	%		101.53	%		131.19	%		112.86	%		160.88	%

Bank Capital Ratios:
Total risk based capital ratio		12.60	%		12.95	%		13.13	%		12.93	%		12.79	%
Tier-1 risk based capital ratio		11.34	%		11.69	%		11.87	%		11.67	%		11.54	%
Leverage ratio		9.24	%		9.34	%		9.39	%		9.27	%		9.17	%
Common Equity Tier-1 capital ratio		11.34	%		11.69	%		11.87	%		11.67	%		11.54	%
Tangible common equity		8.75	%		9.06	%		8.84	%		8.66	%		9.31	%
Holding Company Capital Ratios:
Total risk based capital ratio		14.31	%		15.25	%		15.30	%		14.97	%		15.48	%
Tier-1 risk based capital ratio		13.05	%		13.62	%		13.66	%		13.32	%		13.83	%
Leverage ratio		10.72	%		10.98	%		10.90	%		10.68	%		11.07	%
Common Equity Tier-1 capital ratio		12.98	%		13.54	%		13.58	%		13.24	%		13.74	%
Tangible common equity		10.08	%		10.60	%		10.22	%		9.94	%		11.07	%

_______________
^{(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)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Composition of Loans:
Commercial real estate, non owner-occupied	$	533,141		$	509,878		$	495,341		$	484,399		$	471,329
Commercial real estate, owner-occupied		418,701			442,827			436,421			420,643			440,026
Residential real estate		765,808			740,060			710,730			693,597			688,552
Construction real estate		359,566			344,290			343,189			343,280			321,252
Commercial and industrial		698,289			619,148			593,279			594,331			554,550
Lender finance		41,421			31,883			32,494			23,165			28,574
Business equity lines of credit		3,818			2,931			2,853			3,468			3,090
Credit card, net of reserve⁽³⁾		142,397			136,483			131,029			118,709			127,766
Other consumer loans		1,930			2,010			2,727			2,200			2,089
Portfolio loans receivable	$	2,965,071		$	2,829,510		$	2,748,063		$	2,683,792		$	2,637,228
Deferred origination fees, net		(5,614	)		(7,527	)		(8,255	)		(5,386	)		(7,065	)
Portfolio loans receivable, net	$	2,959,457		$	2,821,983		$	2,739,808		$	2,678,406		$	2,630,163

Composition of Deposits:
Noninterest-bearing	$	852,520		$	857,543		$	836,979		$	812,224		$	810,928
Interest-bearing demand		257,233			275,767			319,431			296,455			238,881
Savings		11,679			12,835			12,879			12,819			13,488
Money markets		1,105,183			989,159			960,237			912,418			816,708
Customer time deposits		489,687			539,207			541,079			549,630			548,901
Brokered time deposits		376,677			237,542			270,133			307,787			333,033
Total deposits	$	3,092,979		$	2,912,053		$	2,940,738		$	2,891,333		$	2,761,939

Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	107,283		$	80,651		$	80,334		$	65,815		$	89,998
Mortgage loans sold		82,998			66,409			59,663			54,144			77,399
Gain on sale of loans		2,145			1,698			1,597			1,664			1,897
Purchase volume as a % of originations		72.77	%		92.32	%		91.61	%		90.73	%		90.42	%
Gain on sale as a % of loans sold⁽⁴⁾		2.58	%		2.56	%		2.68	%		3.07	%		2.45	%
Mortgage commissions	$	899		$	656		$	501		$	545		$	620

OpenSky^™ Portfolio Metrics:
Open customer accounts		585,492			587,641			585,372			563,718			552,566
Secured credit card loans, gross	$	83,065		$	84,737		$	86,400		$	81,252		$	87,226
Unsecured credit card loans, gross		61,378			53,633			46,352			38,987			42,430
Noninterest secured credit card deposits		163,184			166,874			168,936			168,796			166,355

_______________

^{(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)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024

Net Income	$	15,037		$	15,065		$	13,136		$	13,932		$	7,533
Deduct: 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
Add: Non-Recurring Equity and Debt Investment Write-Down		—			—			—			—			2,620
Add: IFH ACL Provision, Net of Tax		—			—			—			—			3,169
Core Net Income	$	15,037		$	12,151		$	14,206		$	14,896		$	15,473

Weighted Average Common Shares - Diluted		16,493			16,844			16,802			16,925			16,729
Earnings per Share - Diluted	$	0.91		$	0.89		$	0.78		$	0.82		$	0.45
Core Earnings per Share - Diluted	$	0.91		$	0.72		$	0.85		$	0.88		$	0.92

Average Assets	$	3,498,540		$	3,378,296		$	3,292,533		$	3,221,964		$	3,120,107
Return on Average Assets⁽¹⁾		1.71	%		1.77	%		1.60	%		1.75	%		0.96	%
Core Return on Average Assets⁽¹⁾		1.71	%		1.43	%		1.73	%		1.87	%		1.97	%

Average Equity	$	391,750		$	383,922		$	371,795		$	363,115		$	352,537
Return on Average Equity⁽¹⁾		15.23	%		15.57	%		14.17	%		15.56	%		8.50	%
Core Return on Average Equity⁽¹⁾		15.23	%		12.56	%		15.33	%		16.64	%		17.46	%

Net Interest Income	$	50,279		$	52,020		$	47,646		$	46,047		$	44,327
Noninterest Income		12,464			11,068			13,106			12,549			11,913
Total Revenue	$	62,743		$	63,088		$	60,752		$	58,596		$	56,240
Noninterest Expense		39,103			38,354			39,572			38,053			37,514
Efficiency Ratio⁽²⁾		62.3	%		60.8	%		65.1	%		64.9	%		66.7	%

Net Interest Income	$	50,279		$	52,020		$	47,646		$	46,047		$	44,327
Less: Brokered Time Deposit Call		—			4,618			—			—			—
Core Net Interest Income (a)	$	50,279		$	47,402		$	47,646		$	46,047		$	44,327
Noninterest Income		12,464			11,068			13,106			12,549			11,913
Add: Non-Recurring Equity and Debt Investment Write-Down		—			—			—			—			2,620
Core Fee Revenue (b)	$	12,464		$	11,068		$	13,106		$	12,549		$	14,533
Core Revenue (a) + (b)	$	62,743		$	58,470		$	60,752		$	58,596		$	58,860

Noninterest Expense	$	39,103		$	38,354		$	39,572		$	38,053		$	37,514
Less: Merger-Related Expenses		—			697			1,398			1,266			2,615
Core Noninterest Expense	$	39,103		$	37,657		$	38,174		$	36,787		$	34,899
Core Efficiency Ratio⁽²⁾		62.3	%		64.4	%		62.8	%		62.8	%		59.3	%

_______________

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

Core Earnings Metrics	Year Ended
(in thousands, except per share data)	December 31, 2025			December 31, 2024

Net Income	$	57,170		$	30,972
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax		(3,489	)		—
Add: Merger-Related Expenses, Net of Tax		2,609			3,308
Add: Non-Recurring Equity and Debt Investment Write-Down		—			2,620
Add: IFH ACL Provision, Net of Tax		—			3,169
Core Net Income	$	56,290		$	40,069

Weighted Average Common Shares - Diluted		16,768			14,640
Earnings per Share - Diluted	$	3.41		$	2.12
Core Earnings per Share - Diluted	$	3.36		$	2.74

Average Assets	$	3,348,674		$	2,554,049
Return on Average Assets		1.71	%		1.21	%
Core Return on Average Assets		1.68	%		1.57	%

Average Equity	$	377,741		$	287,420
Return on Average Equity		15.13	%		10.78	%
Core Return on Average Equity		14.90	%		13.94	%

Net Interest Income	$	195,992		$	154,746
Noninterest Income		49,187			31,410
Total Revenue	$	245,179		$	186,156
Noninterest Expense		155,082			126,219
Efficiency Ratio⁽¹⁾		63.3	%		67.8	%

Net Interest Income	$	195,992		$	154,746
Less: Brokered Time Deposit Call		4,618			—
Core Net Interest Income (a)	$	191,374		$	154,746
Noninterest Income		49,187			31,410
Add: Non-Recurring Equity and Debt Investment Write-Down		—			2,620
Core Fee Revenue (b)	$	49,187		$	34,030
Core Revenue (a) + (b)	$	240,561		$	188,776

Noninterest Expense	$	155,082		$	126,219
Less: Merger-Related Expenses		3,361			3,930
Core Noninterest Expense	$	151,721		$	122,289
Core Efficiency Ratio⁽¹⁾		63.1	%		64.8	%

_______________

^{(1) 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)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024

Commercial Bank Net Interest Income	$	33,764		$	36,267		$	33,073		$	31,515		$	28,812
Average Interest Earning Assets		3,360,576			3,246,653			3,163,421			3,087,943			3,003,081
Less: Average Non-Commercial Bank Interest Earning Assets		152,715			144,558			132,196			128,278			133,401
Average Commercial Bank Interest Earning Assets	$	3,207,861		$	3,102,095		$	3,031,225		$	2,959,665		$	2,869,680
Commercial Bank Net Interest Margin		4.18	%		4.64	%		4.38	%		4.32	%		3.99	%


Commercial Bank Net Interest Margin	Year Ended
(in thousands)	December 31, 2025			December 31, 2024

Commercial Bank Net Interest Income	$	134,619		$	92,756
Average Interest Earning Assets		3,215,483			2,487,607
Less: Average Non-Commercial Bank Interest Earning Assets		139,344			124,863
Average Commercial Bank Interest Earning Assets	$	3,076,139		$	2,362,744
Commercial Bank Net Interest Margin		4.38	%		3.93	%

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

Portfolio Loans Receivable Interest Income	$	64,670		$	60,610		$	60,647		$	58,453		$	58,409
Less: Credit Card Loan Income		16,197			15,387			14,116			14,148			15,022
Commercial Bank Portfolio Loans Receivable Interest Income	$	48,473		$	45,223		$	46,531		$	44,305		$	43,387
Average Portfolio Loans Receivable		2,902,033			2,789,815			2,733,865			2,634,110			2,592,960
Less: Average Credit Card Loans		133,858			129,100			121,414			118,723			120,993
Total Commercial Bank Average Portfolio Loans Receivable	$	2,768,175		$	2,660,715		$	2,612,451		$	2,515,387		$	2,471,967
Commercial Bank Portfolio Loans Receivable Yield		6.95	%		6.74	%		7.14	%		7.14	%		6.98	%


Commercial Bank Portfolio Loans Receivable Yield	Year Ended
(in thousands)	December 31, 2025			December 31, 2024

Portfolio Loans Receivable Interest Income	$	244,380		$	202,346
Less: Credit Card Loan Income		59,848			59,821
Commercial Bank Portfolio Loans Receivable Interest Income	$	184,532		$	142,525
Average Portfolio Loans Receivable		2,765,758			2,142,638
Less: Average Credit Card Loans		125,824			115,581
Total Commercial Bank Average Portfolio Loans Receivable	$	2,639,934		$	2,027,057
Commercial Bank Portfolio Loans Receivable Yield		6.99	%		7.03	%

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

Net Income	$	15,037		$	15,065	$	13,136	$	13,932	$	7,533
Add: Income Tax Expense		4,644			4,802		3,963		4,365		3,243
Add: Provision for Credit Losses		3,988			4,650		4,081		2,246		7,828
Add: (Release of) Provision for Credit Losses on Unfunded Commitments		(29	)		217		—		—		122
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	23,640		$	24,734	$	21,180	$	20,543	$	18,726


Pre-tax, Pre-Provision Net Revenue ("PPNR")	Year Ended
(in thousands)	December 31, 2025		December 31, 2024

Net Income	$	57,170	$	30,972
Add: Income Tax Expense		17,774		10,860
Add: Provision for Credit Losses		14,965		17,720
Add: (Release of) Provision for Credit Losses on Unfunded Commitments		188		385
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	90,097	$	59,937

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

Net Income	$	15,037		$	15,065		$	13,136	$	13,932	$	7,533
Add: Income Tax Expense		4,644			4,802			3,963		4,365		3,243
Add: Provision for Credit Losses		3,988			4,650			4,081		2,246		7,828
Add: (Release of) Provision for Credit Losses on Unfunded Commitments		(29	)		217			—		—		122
Deduct: Income from the Call of Brokered Time Deposits		—			(4,618	)		—		—		—
Add: Merger-Related Expenses		—			697			1,398		1,266		2,615
Add: Non-Recurring Equity and Debt Investment Write-Down		—			—			—		—		2,620
Core PPNR	$	23,640		$	20,813		$	22,578	$	21,809	$	23,961


Core PPNR	Year Ended
(in thousands)	December 31, 2025			December 31, 2024

Net Income	$	57,170		$	30,972
Add: Income Tax Expense		17,774			10,860
Add: Provision for Credit Losses		14,965			17,720
Add: (Release of) Provision for Credit Losses on Unfunded Commitments		188			385
Deduct: Income from the Call of Brokered Time Deposits		(4,618	)		—
Add: Merger-Related Expenses		3,361			3,930
Add: Non-Recurring Equity and Debt Investment Write-Down		—			2,620
Core PPNR	$	88,840		$	66,487

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

Allowance for Credit Losses	$	54,660		$	53,045		$	47,447		$	48,454		$	48,652
Total Portfolio Loans		2,959,457			2,821,983			2,739,808			2,678,406			2,630,163
Allowance for Credit Losses to Total Portfolio Loans		1.85	%		1.88	%		1.73	%		1.81	%		1.85	%

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

Allowance for Credit Losses	$	54,660		$	53,045		$	47,447		$	48,454		$	48,652
Less: Credit Card Allowance for Credit Losses		8,232			7,413			6,762			5,905			6,402
Commercial Bank Allowance for Credit Losses		46,428			45,632			40,685			42,549			42,250
Total Portfolio Loans		2,959,457			2,821,983			2,739,808			2,678,406			2,630,163
Less: Gross Credit Card Loans		137,905			130,897			126,233			115,991			122,928
Commercial Bank Portfolio Loans		2,821,552			2,691,086			2,613,575			2,562,415			2,507,235
Commercial Bank Allowance for Credit Losses to Total Portfolio Loans		1.65	%		1.70	%		1.56	%		1.67	%		1.70	%

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

Total Nonperforming Assets	$	58,276		$	52,247		$	36,167		$	42,934		$	30,241
Total Assets		3,606,207			3,389,442			3,388,662			3,349,805			3,206,911
Nonperforming Assets to Total Assets		1.62	%		1.54	%		1.07	%		1.28	%		0.94	%

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

Total Nonperforming Loans	$	54,421		$	52,247		$	36,167		$	42,934		$	30,241
Total Portfolio Loans		2,959,457			2,821,983			2,739,808			2,678,406			2,630,163
Nonperforming Loans to Total Portfolio Loans		1.84	%		1.85	%		1.32	%		1.60	%		1.15	%

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

Total Net Charge-Offs	$	2,373		$	2,476		$	5,088		$	2,444		$	2,427
Total Average Portfolio Loans		2,902,033			2,789,815			2,733,865			2,634,110			2,592,960
Net Charge-Offs to Average Portfolio Loans, Annualized		0.32	%		0.35	%		0.75	%		0.38	%		0.37	%

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

Total Stockholders' Equity	$	401,978	$	394,770	$	380,035	$	369,577	$	355,139
Less: Preferred Equity		—		—		—		—		—
Less: Intangible Assets		40,740		41,002		37,773		39,641		36,943
Tangible Common Equity	$	361,238	$	353,768	$	342,262	$	329,936	$	318,196
Period End Shares Outstanding		16,381,088		16,589,241		16,581,990		16,657,168		16,662,626
Tangible Book Value per Share	$	22.05	$	21.33	$	20.64	$	19.81	$	19.10

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

Net Income	$	15,037		$	15,065		$	13,136		$	13,932		$	7,533
Add: Intangible Amortization, Net of Tax		200			199			200			199			198
Net Tangible Income	$	15,237		$	15,264		$	13,336		$	14,131		$	7,731
Average Equity		391,750			383,922			371,795			363,115			352,537
Less: Average Intangible Assets		40,884			37,706			39,534			36,896			22,890
Net Average Tangible Common Equity	$	350,866		$	346,216		$	332,261		$	326,219		$	329,647
Return on Average Equity		15.23	%		15.57	%		14.17	%		15.56	%		8.50	%
Return on Average Tangible Common Equity		17.23	%		17.49	%		16.10	%		17.57	%		9.33	%

Return on Average Tangible Common Equity	Year Ended
(in thousands)	December 31, 2025			December 31, 2024

Net Income	$	57,170		$	30,972
Add: Intangible Amortization, Net of Tax		798			198
Net Tangible Income	$	57,968		$	31,170
Average Equity		377,741			287,420
Less: Average Intangible Assets		38,763			5,754
Net Average Tangible Common Equity	$	338,978		$	281,666
Return on Average Equity		15.13	%		10.78	%
Return on Average Tangible Common Equity		17.10	%		11.07	%

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

Core Net Income	$	15,037		$	12,151		$	14,206		$	14,896		$	15,473
Add: Intangible Amortization, Net of Tax		200			199			200			199			198
Core Net Tangible Income	$	15,237		$	12,350		$	14,406		$	15,095		$	15,671
Core Return on Average Tangible Common Equity		17.23	%		14.15	%		17.39	%		18.77	%		18.91	%

Core Return on Average Tangible Common Equity	Year Ended
(in thousands)	December 31, 2025			December 31, 2024

Core Net Income	$	56,290		$	40,069
Add: Intangible Amortization, Net of Tax		798			198
Core Net Tangible Income	$	57,088		$	40,267
Core Return on Average Tangible Common Equity		16.84	%		14.30	%

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 $3.6 billion at December 31, 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 war in Ukraine; 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 effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; 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^TM; 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: Jake Dalaya (301) 637-5118

MEDIA CONTACT: Ed Barry (240) 283-1912

WEB SITE: www.CapitalBankMD.com

Mentioned In This Article

CBNK

+2.35%

Capital Bancorp Inc

Latest News

Jan-26	Capital Bancorp (CBNK) Tops Q4 Earnings and Revenue Estimates CBNK Zacks
Jan-26	Capital Bancorp: Q4 Earnings Snapshot CBNK Associated Press Finance
Jan-26	CBNK Reports 4Q EPS of $0.91; 4Q ROA of 1.71% and ROE of 15.23%; FY 2025: Record Earnings, Double-Digit Balance Sheet Growth and a 1.71% ROA CBNK GlobeNewswire
Jan-22	NB Bancorp, Inc. (NBBK) Tops Q4 Earnings Estimates CBNK Zacks
Dec-30	Capital Bancorp Implements Management Changes to Align Leadership Structure and Advance Long-Term Enterprise Growth Strategy CBNK GlobeNewswire
Dec-04	Capital Bank Accelerates SBA Growth with a Strategic Expansion of its SBA Team CBNK GlobeNewswire
Nov-19	Capital Bank Achieves its Sixth "Best Banks to Work For" Distinction CBNK GlobeNewswire
Nov-14	Capital Bancorp Appoints Jacob Dalaya as Chief Financial Officer CBNK GlobeNewswire
Oct-27	Capital Bancorp (CBNK) Q3 Earnings Miss Estimates CBNK Zacks
Oct-27	Capital Bancorp: Q3 Earnings Snapshot CBNK Associated Press Finance
Oct-27	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 CBNK GlobeNewswire
Oct-23	Business First (BFST) Q3 Earnings and Revenues Beat Estimates CBNK Zacks
Oct-22	Eagle Bancorp (EGBN) Reports Q3 Loss, Misses Revenue Estimates CBNK Zacks
Jul-28	Capital Bancorp (CBNK) Misses Q2 Earnings and Revenue Estimates CBNK Zacks
Jul-28	Capital Bancorp: Q2 Earnings Snapshot CBNK Associated Press Finance

CBNK Reports 4Q EPS of $0.91; 4Q ROA of 1.71% and ROE of 15.23%; FY 2025: Record Earnings, Double-Digit Balance Sheet Growth and a 1.71% ROA

Mentioned In This Article

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