CBNK Reports 2Q ROA of 1.52% and EPS of $0.87

By Capital Bancorp, Inc. | July 27, 2026, 4:05 PM

Delivers Strong Balance Sheet and Revenue Growth, Positive Operating Leverage

ROCKVILLE, Md., July 27, 2026 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported:

	Quarter Ended			% Change (Annualized)
(in millions, except per share data)	2Q26	1Q26	2Q25	2Q26 vs 1Q26	2Q26 vs 2Q25
Balance Sheet Summary
Gross Loans ⁽¹⁾	$3,086	$3,026	$2,740	7.9%	12.6%
Total Deposits	3,371	3,292	2,941	9.6%	14.6%
Customer Deposits⁽²⁾	3,140	2,989	2,671	20.3%	17.6%
Tangible Book Value per share⁽³⁾	$23.45	$22.62	$20.64	14.7%	13.6%

GAAP

Core⁽³⁾

Quarter Ended

Change

Quarter Ended

Change

(in millions, except per share data)

2Q26

1Q26

2Q25

2Q26 vs 1Q26

2Q26 vs 2Q25

2Q26

1Q26

2Q25

2Q26 vs 1Q26

2Q26 vs 2Q25

Earnings Summary

Net Income

$14.3

$12.0

$13.1

18.6%

8.5%

$14.3

$12.0

$14.2

18.6%

0.3%

Earnings per share - diluted

$0.87

$0.73

$0.78

19.2%

11.5%

$0.87

$0.73

$0.85

19.2%

2.4%

ROA

1.52%

1.33%

1.60%

19 bps

(8) bps

1.52%

1.33%

1.73%

19 bps

(21) bps

ROTCE⁽³⁾

15.51%

13.58%

16.10%

193 bps

(59) bps

15.51%

13.58%

17.39%

193 bps

(188) bps

Including Card

Excluding Card

NIM

5.64%

5.71%

6.04%

(7) bps

(40) bps

4.04%

4.15%

4.42%

(11) bps

(38) bps

GAAP

Core⁽³⁾

Six Months Ended

Change

Six Months Ended

Change

(in millions, except per share data)

2Q26

2Q25

2Q26 vs 2Q25

2Q26

2Q25

2Q26 vs 2Q25

Earnings Summary

Net Income

$26.3

$27.1

(3.0)%

$26.3

$29.1

(9.7)%

Earnings per share - diluted

$1.60

$1.60

—%

$1.60

$1.72

(7.0)%

ROA

1.43%

1.68%

(25) bps

1.43%

1.80%

(37) bps

ROTCE⁽³⁾

14.57%

16.82%

(225) bps

14.57%

18.07%

(350) bps

Including Card

Excluding Card

NIM

5.68%

6.04%

(36) bps

4.09%

4.39%

(30) bps

⁽¹⁾ Gross loans represent portfolio loans receivable, net of deferred fees and costs.
⁽²⁾Customer deposits represents total deposits excluding brokered deposits.
⁽³⁾As used in this press release, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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.

“The Board is very pleased that we were able to deliver another quarter of strong operating performance, highlighted by solid loan and deposit growth, diversified fee income generation, and continued growth in tangible book value per share,” said Steven J. Schwartz, Chairman of the Company. “The increase in non-interest expenses year-over-year reflects our continued investment in strategic initiatives, including our unsecured card platform, the expansion of our targeted C&I verticals, and our customer-facing and back-office technology infrastructure. We believe these investments strengthen our franchise and will continue to reduce our exposure to cyber risks, credit losses at OpenSky^™, enhance our customers' experience, and, ultimately, improve our operating efficiency, all while supporting our robust, organic, long-term growth goals.”

Second Quarter 2026 Highlights

Continued to strengthen the funding base, with total deposits, including brokered deposits, increasing 9.6% (annualized) from 1Q 2026; Excluding a $15.0 million reduction associated with the same single customer relationship noted in 1Q 2026, total deposits grew 11.5% (annualized) while reducing brokered deposits by 23.8%
Sustained strong customer deposit momentum, with customer deposits increasing 20.3% (annualized) from 1Q 2026, or 27.0% (annualized) excluding the relationship referenced above
Generated 7.9% (annualized) growth in gross loans from 1Q 2026, driven by broad-based production across the portfolio; Through July 15^th⁽¹⁾, loan growth totaled $159.2 million, representing an implied annualized growth rate of 10.0%
Continued tangible book value compounding, with tangible book value⁽²⁾ per share increasing 14.7% (annualized) from 1Q 2026
Delivered diluted earnings per share of $0.87, up 19.2% from 1Q 2026, supported by an 18.6% increase in net income
Produced 29.6% (annualized) fee income growth, with contributions from nearly every major fee category, led by higher USDA volume, continued production from the new SBA team, significant growth in Windsor revenue and increased mortgage production. Fee revenue represented 22.0% of total revenue
Continued to execute on strategic growth initiatives while maintaining strong expense discipline, with noninterest expense remaining flat despite ongoing investments in unsecured card, card partnerships, data infrastructure and personnel
The Company also declared a cash dividend on its common stock of $0.14 per share, a 16.7% increase from the prior quarterly dividend. The dividend is payable on August 26, 2026 to shareholders of record on August 10, 2026.

⁽¹⁾Balances through July 15th are preliminary and unaudited. They have not been subject to customary reconciliations or closing procedures and may not be indicative of final balances at quarter end.
⁽²⁾As used in this press release, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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.

“We continue to execute on our growth strategy across the franchise, delivering strong customer deposit growth, solid loan production and broad-based fee income expansion" said Ed Barry, CEO of the Company. "The breadth of our performance reflects the strength of our diversified business model and positions us well to continue expanding customer relationships, growing the balance sheet and delivering sustainable long-term growth."

Consolidated financial performance

Net income of $14.3 million increased $2.2 million compared to 1Q 2026, and earnings per share - diluted of $0.87 increased $0.14 per share from 1Q 2026. Net income increased $1.1 million, or 8.5%, compared to $13.1 million, or $0.78 per diluted share, for 2Q 2025. 2Q 2026 Core net income⁽¹⁾ of $14.3 million, or $0.87 per diluted share, increased $2.2 million, or 18.6%, from 1Q 2026 Core net income of $12.0 million, or $0.73 per diluted share. 2Q 2026 Core net income increased $0.1 million from 2Q 2025 Core net income of $14.2 million. 2Q 2026 Core net income excluding purchase accounting accretion ("PAA") was $14.0 million, an increase of $0.8 million from 2Q 2025 Core net income excluding PAA of $13.2 million.

⁽¹⁾ As used in this press release, Core net income and Core noninterest expense are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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.

Quarterly net interest income:

Net interest income of $50.9 million increased $1.5 million, or 3.1% (not annualized), compared to 1Q 2026, and increased $3.3 million, or 6.9%, year-over-year.
- Interest income of $70.0 million increased $2.0 million, or 2.9% (not annualized), compared to 1Q 2026, and increased $5.4 million, or 8.3%, year-over-year. The increase from 1Q 2026 was primarily driven by a $0.9 million increase from OpenSky^™due to higher balances and higher yields, $1.0 million from the Commercial Bank driven by $0.5 million from interest bearing cash income, $0.4 million from investment securities, and $0.2 million from loan growth. The increase year-over-year was primarily driven by $3.8 million from the Commercial Bank due to strong organic loan growth, and $1.5 million from OpenSky^™due to strong growth from the unsecured loan product.
  - Interest income included $0.2 million from net PAA in 2Q 2026, compared to $0.3 million in 1Q 2026 and $0.4 million in net PAA in 2Q 2025.
- Interest expense of $19.0 million increased $0.5 million, or 2.5% (not annualized), compared to 1Q 2026, and increased $2.1 million, or 12.3%, year-over-year. The increase of $0.5 million compared to 1Q 2026, was primarily driven by growth in the deposit portfolio, and a shift in deposit mix to money markets accounts. The increase of $2.1 million year-over-year was driven by $1.0 million from higher balances and a shift in deposit mix, $0.8 million of lower PAA, and $0.3 million of higher borrowing costs.
  - Interest expense included a $0.1 million benefit from net PAA in 2Q 2026, compared to a $0.1 million benefit in 1Q 2026. There was a $0.9 million benefit from net PAA in 2Q 2025.

Quarterly provision:

The 2Q 2026 provision for credit losses was $3.6 million, an increase of $0.6 million from 1Q 2026. Net charge-offs totaled $3.8 million, or 0.50% of portfolio loans (annualized), up from $3.0 million or 0.40% of portfolio loans (annualized), in 1Q 2026.
- Net charge-offs in the quarter include $2.9 million from OpenSky^™ loans and $0.9 million from Commercial Bank loans. Net charge-offs for the Commercial Bank increased $1.0 million quarter-over-quarter primarily due to a $0.7 million recovery in 1Q 2026. OpenSky^™ net charge-offs amounted to $2.9 million in 2Q 2026 compared to $3.1 million in 1Q 2026.
- At June 30, 2026, the ACL Coverage Ratio was 1.76%, down 5 bps from March 31, 2026.

Quarterly fee revenue:

Fee Revenue of $14.4 million increased $1.0 million, compared to 1Q 2026 and increased $1.3 million year-over-year. The increase of $1.0 million during 2Q 2026 was the result primarily of a $1.0 million increase in government loan servicing and packaging revenue (Windsor^™), a $0.4 million increase in mortgage banking revenue, and a $0.3 million increase in government lending revenue, offset by a $0.3 million decrease in credit card fees and a $0.2 million decrease in loan servicing rights. The year-over-year fee revenue increase of $1.3 million was primarily due to an increase in government loan servicing and packaging revenue (Windsor^™). Fee revenue mix⁽¹⁾ was 22.0% of total revenue for 2Q 2026, compared to 21.3% during 1Q 2026, and 21.6% during 2Q 2025.

Quarterly noninterest expense:

Noninterest expense of $43.2 million decreased $0.5 million compared to 1Q 2026 and increased $3.6 million compared to 2Q 2025. Core noninterest expense⁽²⁾of $43.2 million decreased $0.5 million compared to 1Q 2026 and increased $5.0 million compared to 2Q 2025. Core comparisons include:
- The decrease of $0.5 million quarter-over-quarter was primarily driven by the following:
  - $0.8 million lower professional fees, attributable to a decrease in consulting expenses and lower audit and accounting related fees; partially offset by a $0.4 million increase in occupancy and costs associated with software upgrades.
- Year-over-year expense growth of $5.0 million was driven by increases in professional fees associated with investments in shared services areas and OpenSky^™, expense associated with headcount growth, increased occupancy and equipment costs and an increase in loan processing costs.

Quarterly income taxes:

Income tax expense of $4.2 million, or 22.8% of pre-tax income for 2Q 2026, increased $0.4 million from $3.9 million, or 24.3% of pre-tax income for 1Q 2026. The effective income tax rate change quarter-over-quarter primarily reflects refinement of the quarterly tax provision following an updated estimate related to the deferred tax liability associated with fixed assets acquired in the IFH acquisition.

Total assets:

Total assets of $3.9 billion at June 30, 2026 increased $81.5 million, or 8.6% (annualized) from March 31, 2026. Total assets growth year-over-year was $501.3 million, or 14.8%. The growth quarter-over-quarter, and year-over-year, was primarily driven by increases in portfolio loans, and cash balances.

Gross Loans:

Gross Loans of $3.1 billion at June 30, 2026 increased $59.5 million, or 7.9% (annualized), from March 31, 2026 and increased $346.1 million, or 12.6%, year-over-year.
- Compared to March 31, 2026, growth was primarily driven by $34.8 million from commercial real estate, $10.5 million from credit cards, and $5.0 million from construction real estate.
- Gross loan growth through July 15th⁽¹⁾ of $159.2 million brings year-to-date loan growth to 10.0% (annualized).
- C&l loans, plus owner-occupied CRE loans, totaled 37.4% of total portfolio loans at June 30, 2026, 38.3% at March 31, 2026, and 37.6% at June 30, 2025.

⁽¹⁾ Fee revenue mix equals fee revenue divided by the sum of fee revenue and net interest income before provision for credit losses.
⁽²⁾As used in this press release, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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.
⁽³⁾Balances through July 15th are preliminary and unaudited. They have not been subject to customary reconciliations or closing procedures and may not be indicative of final balances at quarter end.

Deposits:

Total deposits of $3.4 billion at June 30, 2026 increased $79.1 million, or 9.6% (annualized), from March 31, 2026, and increased $430.4 million, or 14.6% from June 30, 2025.
- - Excluding a $72.1 million decrease in brokered time deposits, customer deposits increased $151.1 million or 20.3% (annualized), including $114.7 million of growth in customer money market deposits, $49.8 million of growth in interest-bearing demand accounts, $25.7 million of growth in noninterest-bearing deposits, and $1.6 million of growth in savings accounts, partially offset by a decrease of $40.7 million in customer time deposits.
  - The increase in total deposits of $430.4 million year-over-year was driven by $430.5 million in growth from customer money market deposits with offsetting activity across other deposit products.
  - Total deposit growth through July 15th⁽¹⁾ of $165.3 million brings year-to-date deposit growth to 10.0% (annualized).

- Insured and protected⁽²⁾ deposits were approximately $2.2 billion as of June 30, 2026 representing 66.6% of the Company's deposit portfolio.
- Low interest⁽³⁾ and noninterest-bearing demand deposit account ("DDA") deposits totaled $1.3 billion, or 38.9% of deposits, an increase of $77.1 million, or 25.0% (annualized) from 1Q 2026, and an increase of $142.7 million, or 12.2% year-over-year.
  - The average rate on the low interest and noninterest-bearing deposits was 0.29% for 2Q 2026, which increased 13 bps compared to 1Q 2026 and increased 15 bps year-over-year.

The average portfolio loans-to-deposit ratio was 94.3% for 2Q 2026, compared to 96.1% for 1Q 2026, and 96.2% for 2Q 2025.

⁽¹⁾Balances through July 15th are preliminary and unaudited. They have not been subject to customary reconciliations or closing procedures and may not be indicative of final balances at quarter end.
⁽²⁾Protected deposits include deposits that are indirectly protected under the product terms.
⁽³⁾ Low interest deposits include interest-bearing demand and savings accounts.

Investment securities:

The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $219.9 million, or 5.7% of total assets, and an effective duration of 2.5 years, with U.S. Treasury Securities representing 60% of the overall investment portfolio at June 30, 2026. The accumulated other comprehensive income (loss) on the investment securities portfolio declined $0.1 million during the quarter to $6.3 million after-tax as of June 30, 2026, which represents 1.5% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio.

Liquidity:

The Company maintains stable and diversified sources of contingent liquidity, generally consistent with prior quarter. Total available borrowing capacity as of June 30, 2026 was $801.6 million, compared to $809.5 million as of March 31, 2026, consisting of $699.4 million of available collateralized borrowing capacity, $96.0 million of unsecured lines of credit with other banks, and $6.2 million of unpledged investment securities available to collateralize potential additional borrowings. Including cash and cash equivalents of $418.3 million, total liquidity was approximately $1.2 billion.

Capital:

As of June 30, 2026, the Company reported a Common Equity Tier-1 capital ratio of 13.14% and a Tier 1 leverage ratio of 10.59%, compared to 12.92% and 10.48%, respectively, at March 31, 2026. At June 30, 2026, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
Shares repurchased and retired during the three months ended June 30, 2026, as part of the Company's stock repurchase program, totaled 1,213 shares at an average price of $30.03, for a total cost of $36 thousand. As of June 30, 2026, there was $12.4 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on December 31, 2026.

Financial Metrics

Net Interest Margin:

NIM of 5.64% for 2Q 2026, decreased 7 bps compared to the prior quarter, and decreased 40 bps year-over-year. Core NIM⁽¹⁾ of 4.04% decreased 11 bps (but decreased 9 bps when excluding PAA) compared to the prior quarter, and decreased 38 bps year-over-year. Net PAA for 2Q 2026 was 3 bps for NIM and 4 bps for Core NIM⁽¹⁾. The decrease quarter-over-quarter in Core NIM includes 3 bps from lower deferred origination fees and net PAA and 3 bps from one non-performing loan relationship.

The average yield on interest earning assets of 7.75% decreased 11 bps compared to the prior quarter and decreased 44 bps year-over-year. The decrease quarter-over-quarter was primarily due to the Commercial Bank loan portfolio. The decrease year-over-year was primarily due to the impact of changes in the rate environment to the Commercial Bank and OpenSky^™ portfolios, as well as lower loan PAA for the Commercial Bank.
- The Core Loan Yield⁽¹⁾ of 6.77% for 2Q 2026 decreased 16 bps compared to 1Q 2026, and decreased 37 bps year-over-year. The decrease quarter-over-quarter includes 5 bps from lower deferred origination fees and loan PAA, and 4 bps from one non-performing loan relationship. The decrease year-over-year was primarily a result of changes in the rate environment offsetting organic portfolio growth.
The total cost of deposits of 2.29% for 2Q 2026 decreased 5 bps compared to the prior quarter and decreased 7 bps year-over-year. The decrease quarter-over-quarter was primarily due to a shift in product mix, and the decrease year-over-year was primarily due to a shift in product mix as well as changes in the rate environment.
The total cost of interest-bearing deposits of 3.09% for 2Q 2026 decreased 8 bps quarter-over-quarter, and decreased 20 bps year-over-year. The decrease quarter-over-quarter was primarily due to a shift in product mix, and the decrease year-over-year was primarily due to a shift in product mix as well as changes in the rate environment.
Net PAA of $0.3 million, or 3 bps of NIM and 4 bps of Core NIM⁽¹⁾, during 2Q 2026, decreased $0.1 million from 1Q 2026 due to a loan that paid off during 1Q 2026. There was $1.3 million from net PAA during 2Q 2025.

⁽¹⁾ As used in this press release, Core NIM, Core Loan Yield, and Core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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:

Nonperforming assets were $60.8 million, or 1.56% of total assets, at June 30, 2026, an increase of $1.6 million from March 31, 2026, while remaining unchanged as a percentage of total assets. The increase in nonperforming assets from 1Q 2026 was primarily driven by a $5.3 million net increase in nonaccrual loans from the legacy CBNK portfolio, slightly offset by a $3.7 million net decrease from the acquired IFH portfolio. The legacy CBNK increase reflected $10.6 million of new nonaccruals, primarily attributable to one $9.7 million legacy bank loan relationship, partially offset by $5.3 million of nonaccrual resolutions. The acquired IFH portfolio decrease reflected $4.7 million of nonaccrual loan resolutions, partially offset by $1.0 million of new nonaccruals. Nonperforming assets increased $24.7 million or 49 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 and the $9.7 million increase during 2Q 2026 related to the legacy bank loan relationship referenced above. At June 30, 2026, substandard loans totaled $70.6 million, or 2.3% of total portfolio loans, compared to $71.8 million, or 2.4% of total portfolio loans, at March 31, 2026 and $44.6 million, or 1.7% of total portfolio loans, at June 30, 2025. The $26.1 million year-over-year increase in substandard loans was primarily driven by $15.9 million from two loan relationships acquired as part of the IFH transaction, and $9.7 million from the legacy bank relationship that is referenced above. At June 30, 2026, special mention loans totaled $61.5 million, or 2.0% of total portfolio loans, compared to $60.3 million, or 2.0% of total portfolio loans, at March 31, 2026, and $54.2 million, or 2.0% of total portfolio loans, at June 30, 2025.

Through July 15, 2026, management did not identify any significant changes in nonperforming assets, special mention loans, or substandard loans from June 30, 2026.

Efficiency Ratio:

The efficiency ratio was 66.1% for 2Q 2026, compared to 69.6% for 1Q 2026 and 65.1% for 2Q 2025. The core efficiency ratio⁽¹⁾ was 66.1% for 2Q 2026, which decreased from 69.6% compared to the prior quarter, and increased from 62.8% for 2Q 2025.

Returns:

ROA was 1.52% for 2Q 2026, compared to 1.33% for 1Q 2026, and 1.60% for 2Q 2025. Core ROA⁽¹⁾for 2Q 2026 was 1.52%, compared to 1.33% for 1Q 2026, and 1.73% for 2Q 2025.

ROE was 13.80% for 2Q 2026, compared to 12.03% for 1Q 2026, and 14.17% for 2Q 2025. Core ROE⁽¹⁾ was 13.80% for 2Q 2026, compared to 12.03% for 1Q 2026, and 15.33% for 2Q 2025.
ROTCE⁽¹⁾ was 15.51% for 2Q 2026, compared to 13.58% for 1Q 2026, and 16.10% for 2Q 2025. Core ROTCE⁽¹⁾ for 2Q 2026 was 15.51%, compared to 13.58% for 1Q 2026, and 17.39% for 2Q 2025.

⁽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 merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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.

Book Value:

Book value per common share of $25.92 at June 30, 2026, increased $0.82 when compared to March 31, 2026, and increased $3.00 when compared to June 30, 2025. Tangible book value per common share⁽¹⁾ increased $0.83, or 3.7% (not annualized), to $23.45 at June 30, 2026 when compared to March 31, 2026, and increased $2.81, or 13.6%, when compared to June 30, 2025.

Reportable Segments

Commercial Bank

Loan Growth – Portfolio loans⁽¹⁾ increased $49.0 million at June 30, 2026 compared to March 31, 2026, driven by $34.8 million from CRE, $5.0 million from construction real estate, $2.2 million from residential real estate, and $1.0 million from C&I. Portfolio loans increased $327.6 million at June 30, 2026 compared to June 30, 2025, driven by $138.3 million from C&I, $87.0 million from residential real estate, and $54.2 million from CRE. [C&I loans grew an additional 2.5% through July 15, 2026⁽²⁾.] Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

⁽¹⁾ Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.
⁽²⁾Balances through July 15th are preliminary and unaudited. They have not been subject to customary reconciliations or closing procedures and may not be indicative of final balances at quarter end.

Net Interest Income – Interest income of $53.7 million increased $1.0 million from the prior quarter, $0.5 million from interest bearing cash income, $0.4 million from investment securities, and $0.2 million from loan growth. Interest expense of $18.9 million increased $0.4 million, driven by growth and a mix shift in the deposit portfolio.

Credit Metrics – Nonperforming assets increased 1 bp to 1.65% of total assets at June 30, 2026 compared to March 31, 2026. Total nonaccrual loans at June 30, 2026 were $57.0 million, an increase of $1.6 million or 2.8% compared to $55.4 million at March 31, 2026.

Classified and Criticized Loans – At June 30, 2026, special mention loans totaled $61.5 million, or 2.0% of total portfolio loans, compared to $60.3 million, or 2.0% of total portfolio loans, at March 31, 2026. At June 30, 2026, substandard loans totaled $70.6 million, or 2.3% of total portfolio loans, compared to $71.8 million, or 2.4% of total portfolio loans, at March 31, 2026.

OpenSky^™

OpenSky^™ results reflected continued loan balance growth, stable account levels, lower operating expenses and credit performance consistent with management expectations. Higher net interest income from loan growth was partially offset by lower fee revenue and a higher provision for credit losses primarily related to portfolio growth.

Accounts – During 2Q 2026, credit card accounts grew to 588.6 thousand, increasing 0.4 thousand, or 0.1% (not annualized) from March 31, 2026, and increasing 3.2 thousand, or 0.6% year-over-year.

Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $145.3 million at June 30, 2026 increased by $10.5 million, or 7.8% (not annualized), compared to March 31, 2026 and increased $14.2 million, or 10.9%, year-over-year. Deposit balances of $166.2 million at June 30, 2026 increased $0.7 million compared to March 31, 2026 and decreased $2.8 million, or 1.6% year-over-year. Gross unsecured loan balances of $51.2 million at June 30, 2026 increased $4.7 million, or 10.0% (not annualized), compared to $46.6 million at March 31, 2026, and increased $18.5 million, or 56.6% (not annualized), year-over-year. Gross secured loan balances of $96.0 million at June 30, 2026 increased $6.0 million, or 6.7% (not annualized), compared to $90.0 million at March 31, 2026, and decreased $4.0 million, or 4.0% (not annualized) year-over-year.

Net Interest Income – Interest income of $16.0 million increased $0.9 million compared to 1Q 2026, supported by higher average OpenSky^™ credit card loan balances. Average OpenSky^™ credit card loan balances, net of reserves and deferred fees of $137.1 million for 2Q 2026, increased $3.3 million, or 2.5% (not annualized), compared to 1Q 2026.

Fee Revenue – Total fee revenue of $4.4 million decreased $0.3 million from the prior quarter primarily driven by lower credit-card fees from the unsecured product. The decline was partially offset by continued growth in net interest income as loan balances increased.

Noninterest Expense – Total noninterest expense of $15.4 million decreased $0.8 million compared to 1Q 2026, driven by savings from professional fees, lower depreciation of capitalized assets related to OpenSky^™ technology, lower data processing costs, and lower marketing spend.

OpenSky^™Credit – Portfolio credit metrics continued to be generally consistent with modeled expectations during 2Q 2026. The provision for credit losses of $4.0 million increased $1.3 million when compared to the prior quarter, primarily due to the growth of $10.5 million in the loan portfolio. Net charge-offs remained generally stable, decreasing $0.2 million to $2.9 million in 2Q 2026 from $3.1 million in 1Q 2026. The majority of OpenSky's^™ unsecured loan product is offered to current and former secured card customers, where the Company has historical customer performance data. Unsecured loans have been offered by OpenSky^™ since the fourth quarter of 2021 and have generally performed in alignment with management expectations over that time period. OpenSky^™has begun testing limited offers to new customers; however, this activity remains insignificant to the overall unsecured loan portfolio and total accounts, and balances are expected to remain de minimis through year-end as management monitors performance.

Capital Bank Home Loans

Originations of loans held for sale totaled $106.9 million during 2Q 2026 (46.6% growth in volume compared to 1Q 2026 on an unannualized basis), with $87.1 million of mortgage loans sold resulting in a gain on sale of loans of $2.4 million, representing a 2.71% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $72.9 million during 1Q 2026, with $52.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.5 million, representing a 2.85% gain on sale as a percentage of total loans sold.

Windsor Advantage^™

Gross government loan servicing revenue totaled $6.6 million, including $1.3 million of Capital Bank related servicing fees, during 2Q 2026. Gross government loan servicing revenue totaled $5.6 million, including $1.3 million of Capital Bank related servicing fees, during 1Q 2026. Windsor's^™ total servicing portfolio was $3.4 billion at June 30, 2026, and $3.2 billion at March 31, 2026. In 2Q 2026, Windsor processed the closing of $223.6 million of government guaranteed loans, an 84.3% increase from $121.4 million in 1Q 2026 and a 142.7% increase from $92.1 million in 2Q 2025.


COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited

	Quarter Ended									2Q26 vs 1Q26					2Q26 vs 2Q25
(in thousands, except per share data)	June 30, 2026			March 31, 2026			June 30, 2025			$ Change			% Change		$ Change			% Change
Earnings Summary
Interest income	$	69,959		$	67,970		$	64,586		$	1,989		2.9	%	$	5,373		8.3	%
Interest expense		19,030			18,572			16,940			458		2.5	%		2,090		12.3	%
Net interest income		50,929			49,398			47,646			1,531		3.1	%		3,283		6.9	%
Provision for credit losses		3,585			3,014			4,081			571		18.9	%		(496	)	(12.2	)%
Provision for credit losses on unfunded commitments		65			205			—			(140	)	(68.3	)%		65		—	%
Noninterest income		14,361			13,373			13,106			988		7.4	%		1,255		9.6	%
Noninterest expense		43,186			43,681			39,572			(495	)	(1.1	)%		3,614		9.1	%
Income before income taxes		18,454			15,871			17,099			2,583		16.3	%		1,355		7.9	%
Income tax expense		4,204			3,853			3,963			351		9.1	%		241		6.1	%
Net income	$	14,250		$	12,018		$	13,136		$	2,232		18.6	%	$	1,114		8.5	%

Pre-tax pre-provision net revenue ("PPNR")⁽¹⁾	$	22,104		$	19,090		$	21,180		$	3,014		15.8	%	$	924		4.4	%
Core PPNR⁽¹⁾	$	22,104		$	19,090		$	22,578		$	3,014		15.8	%	$	(474	)	(2.1	)%

Common Share Data
Earnings per share - Basic	$	0.87		$	0.74		$	0.79		$	0.13		17.6	%	$	0.08		10.1	%
Earnings per share - Diluted	$	0.87		$	0.73		$	0.78		$	0.14		19.2	%	$	0.09		11.5	%
Core earnings per share - Diluted⁽¹⁾	$	0.87		$	0.73		$	0.85		$	0.14		19.2	%	$	0.02		2.4	%
Weighted average common shares - Basic		16,288			16,345			16,584
Weighted average common shares - Diluted		16,373			16,441			16,802

Return Ratios
Return on average assets (annualized)		1.52	%		1.33	%		1.60	%
Core return on average assets (annualized)⁽¹⁾		1.52	%		1.33	%		1.73	%
Return on average equity (annualized)		13.80	%		12.03	%		14.17	%
Core return on average equity (annualized)⁽¹⁾		13.80	%		12.03	%		15.33	%
Return on average tangible common equity (annualized)⁽¹⁾		15.51	%		13.58	%		16.10	%
Core return on average tangible common equity (annualized)⁽¹⁾		15.51	%		13.58	%		17.39	%

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


COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)

	Six Months Ended
	June 30,
(in thousands, except per share data)	2026			2025			$ Change			% Change
Earnings Summary
Interest income	$	137,929		$	127,346		$	10,583		8.3	%
Interest expense		37,602			33,653			3,949		11.7	%
Net interest income		100,327			93,693			6,634		7.1	%
Provision for credit losses		6,599			6,327			272		4.3	%
Provision for credit losses on unfunded commitments		270			—			270		—	%
Noninterest income		27,734			25,655			2,079		8.1	%
Noninterest expense		86,867			77,625			9,242		11.9	%
Income before income taxes		34,325			35,396			(1,071	)	(3.0	)%
Income tax expense		8,057			8,328			(271	)	(3.3	)%
Net income	$	26,268		$	27,068		$	(800	)	(3.0	)%

Pre-tax pre-provision net revenue ("PPNR")⁽¹⁾	$	41,194		$	41,723		$	(529	)	(1.3	)%
Core PPNR⁽¹⁾	$	41,194		$	44,387		$	(3,193	)	(7.2	)%

Common Share Data
Earnings per share - Basic	$	1.61		$	1.63		$	(0.02	)	(1.2	)%
Earnings per share - Diluted	$	1.60		$	1.60		$	—		—	%
Core earnings per share - Diluted⁽¹⁾	$	1.60		$	1.72		$	(0.12	)	(7.0	)%
Weighted average common shares - Basic		16,316			16,624
Weighted average common shares - Diluted		16,404			16,872

Return Ratios
Return on average assets (annualized)		1.43	%		1.68	%
Core return on average assets (annualized)⁽¹⁾		1.43	%		1.80	%
Return on average equity (annualized)		12.93	%		14.85	%
Core return on average equity (annualized)⁽¹⁾		12.93	%		15.97	%
Return on average tangible common equity (annualized)⁽¹⁾		14.57	%		16.82	%
Core return on average tangible common equity (annualized)⁽¹⁾		14.57	%		18.07	%

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


COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)

	Quarter Ended						Quarter Ended
	June 30,						March 31,		December 31,		September 30,
(in thousands, except per share data)	2026		2025		% Change		2026		2025		2025
Balance Sheet Highlights
Assets	$	3,889,938	$	3,388,662	14.8	%	$	3,808,467	$	3,606,207	$	3,389,442
Investment securities available-for-sale		219,947		228,923	(3.9	)%		230,525		230,083		232,640
Mortgage loans held for sale		22,370		15,933	40.4	%		13,739		25,828		14,146
Portfolio loans receivable⁽²⁾		3,085,950		2,739,808	12.6	%		3,026,431		2,959,457		2,821,983
Allowance for credit losses		54,431		47,447	14.7	%		54,680		54,660		53,045
Goodwill		25,969		22,478	15.5	%		25,969		25,969		25,969
Intangible assets		14,250		15,295	(6.8	)%		14,511		14,771		15,033
Deposits		3,371,103		2,940,738	14.6	%		3,292,047		3,093,200		2,912,053
FHLB borrowings		50,000		22,000	127.3	%		50,000		50,000		22,000
Other borrowed funds		2,062		12,062	(82.9	)%		2,062		2,062		12,062
Total stockholders' equity		422,205		380,035	11.1	%		408,859		401,757		394,770
Tangible common equity⁽¹⁾		381,986		342,262	11.6	%		368,379		361,017		353,768

Common shares outstanding		16,289		16,582	(1.8	)%		16,286		16,373		16,589
Book value per share	$	25.92	$	22.92	13.1	%	$	25.10	$	24.54	$	23.80
Tangible book value per share⁽¹⁾	$	23.45	$	20.64	13.6	%	$	22.62	$	22.05	$	21.33
Dividends per share	$	0.12	$	0.10	20.0	%	$	0.12	$	0.12	$	0.12

_______________
⁽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													Six Months Ended
(in thousands)	June 30, 2026		March 31, 2026		December 31, 2025			September 30, 2025			June 30, 2025			June 30, 2026		June 30, 2025
Interest income
Loans, including fees	$	65,362	$	64,186	$	64,933		$	60,838		$	60,810		$	129,548	$	119,501
Investment securities available-for-sale		1,814		1,459		1,728			1,805			1,582			3,273		3,443
Federal funds sold and other		2,783		2,325		1,973			2,248			2,194			5,108		4,402
Total interest income		69,959		67,970		68,634			64,891			64,586			137,929		127,346

Interest expense
Deposits		18,522		18,070		17,805			12,732			16,722			36,592		33,234
Borrowed funds		508		502		550			139			218			1,010		419
Total interest expense		19,030		18,572		18,355			12,871			16,940			37,602		33,653

Net interest income		50,929		49,398		50,279			52,020			47,646			100,327		93,693
Provision for credit losses		3,585		3,014		3,988			4,650			4,081			6,599		6,327
Provision for (release of) credit losses on unfunded commitments		65		205		(29	)		217			—			270		—
Net interest income after provision for credit losses		47,279		46,179		46,320			47,153			43,565			93,458		87,366
Noninterest income
Service charges on deposits		409		403		371			425			262			812		520
Credit card fees		4,395		4,692		4,837			4,509			4,298			9,087		8,020
Mortgage banking revenue		1,960		1,556		1,960			1,927			1,754			3,516		3,585
Government lending revenue		1,207		923		—			14			3,112			2,130		4,208
Government loan servicing revenue		5,303		4,345		4,036			4,265			3,644			9,648		7,212
Loan servicing rights		292		497		295			368			(590	)		789		(118	)
Other income (loss)		795		957		965			(440	)		626			1,752		2,228
Total noninterest income		14,361		13,373		12,464			11,068			13,106			27,734		25,655
Noninterest expenses
Salaries and employee benefits		20,067		20,317		17,914			17,728			18,460			40,384		36,527
Occupancy and equipment		3,942		3,562		2,638			2,849			2,995			7,504		5,905
Professional fees		4,125		4,965		4,294			2,131			2,422			9,090		4,534
Data processing		7,551		7,767		7,502			7,654			7,520			15,318		14,632
Advertising		1,816		1,466		1,398			1,714			1,371			3,282		3,150
Loan processing		1,475		1,383		1,152			1,114			979			2,858		1,722
Merger-related expenses		—		—		—			697			1,398			—		2,664
Operational and other card fraud related losses		690		690		750			923			933			1,380		1,836
Regulatory assessment expenses		925		941		858			740			884			1,866		1,773
Other operating		2,595		2,590		2,597			2,804			2,610			5,185		4,882
Total noninterest expenses		43,186		43,681		39,103			38,354			39,572			86,867		77,625
Income before income taxes		18,454		15,871		19,681			19,867			17,099			34,325		35,396
Income tax expense		4,204		3,853		4,644			4,802			3,963			8,057		8,328
Net income	$	14,250	$	12,018	$	15,037		$	15,065		$	13,136		$	26,268	$	27,068


Consolidated Balance Sheets
	(unaudited)			(unaudited)			(audited)			(unaudited)			(unaudited)
(in thousands, except share data)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Assets
Cash and due from banks	$	24,771		$	20,182		$	30,894		$	25,724		$	26,843
Interest-bearing deposits at other financial institutions		393,428			379,069			224,611			163,078			247,704
Federal funds sold		60			60			60			59			59
Total cash and cash equivalents		418,259			399,311			255,565			188,861			274,606
Investment securities available-for-sale		219,947			230,525			230,083			232,640			228,923
Restricted investments		8,707			8,691			8,397			7,057			7,043
Loans held for sale		22,370			13,739			25,828			14,146			15,933
Portfolio loans receivable, net of deferred fees and costs		3,085,950			3,026,431			2,959,457			2,821,983			2,739,808
Less allowance for credit losses		(54,431	)		(54,680	)		(54,660	)		(53,045	)		(47,447	)
Total portfolio loans held for investment, net		3,031,519			2,971,751			2,904,797			2,768,938			2,692,361
Premises and equipment, net		17,669			17,732			15,072			15,304			14,863
Accrued interest receivable		19,429			16,795			16,695			19,011			15,149
Goodwill		25,969			25,969			25,969			25,969			22,478
Intangible assets		14,250			14,511			14,771			15,033			15,295
Loan servicing assets		1,847			1,957			1,816			2,070			2,221
Deferred tax asset		16,504			15,187			14,992			14,885			15,667
Bank owned life insurance		46,260			45,871			45,488			45,105			44,721
Other assets		47,208			46,428			46,734			40,423			39,402
Total assets	$	3,889,938		$	3,808,467		$	3,606,207		$	3,389,442		$	3,388,662

Liabilities
Deposits
Noninterest-bearing	$	897,363		$	871,677		$	852,741		$	857,543		$	836,979
Interest-bearing		2,473,740			2,420,370			2,240,459			2,054,510			2,103,759
Total deposits		3,371,103			3,292,047			3,093,200			2,912,053			2,940,738
Federal Home Loan Bank advances		50,000			50,000			50,000			22,000			22,000
Other borrowed funds		2,062			2,062			2,062			12,062			12,062
Accrued interest payable		6,606			8,944			8,745			8,045			8,158
Other liabilities		37,962			46,555			50,443			40,512			25,669
Total liabilities		3,467,733			3,399,608			3,204,450			2,994,672			3,008,627

Stockholders' equity
Common stock		163			163			164			166			166
Additional paid-in capital		113,217			112,268			114,604			121,707			121,362
Retained earnings		315,103			302,808			292,749			279,693			266,619
Accumulated other comprehensive loss		(6,278	)		(6,380	)		(5,760	)		(6,796	)		(8,112	)
Total stockholders' equity		422,205			408,859			401,757			394,770			380,035
Total liabilities and stockholders' equity	$	3,889,938		$	3,808,467		$	3,606,207		$	3,389,442		$	3,388,662

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 June 30, 2026						Three Months Ended March 31, 2026						Three Months Ended June 30, 2025
	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	$	295,167	$	2,646	3.60	%	$	246,346	$	2,200	3.62	%	$	182,192	$	2,065	4.55	%
Federal funds sold		60		—	—			60		1	6.76			59		—	—
Investment securities available-for-sale		240,102		1,814	3.03			233,165		1,459	2.54			230,317		1,582	2.76
Restricted investments		8,701		137	6.32			8,441		124	5.96			7,038		129	7.35
Loans held for sale		17,381		252	5.82			12,916		177	5.56			9,950		163	6.57
Portfolio loans receivable⁽²⁾⁽³⁾		3,058,476		65,110	8.54			3,008,187		64,009	8.63			2,733,865		60,647	8.90
Total interest earning assets		3,619,887		69,959	7.75			3,509,115		67,970	7.86			3,163,421		64,586	8.19
Noninterest earning assets		141,624						142,697						129,112
Total assets	$	3,761,511					$	3,651,812					$	3,292,533

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	346,671		816	0.94		$	263,645		414	0.64		$	281,878		391	0.56
Savings		17,790		70	1.58			13,701		30	0.89			13,043		16	0.49
Money market accounts		1,315,061		10,797	3.29			1,189,642		9,479	3.23			924,784		8,022	3.48
Time deposits		722,144		6,839	3.80			842,137		8,147	3.92			816,809		8,293	4.07
Borrowed funds		52,062		508	3.91			52,062		502	3.91			34,062		218	2.57
Total interest-bearing liabilities		2,453,728		19,030	3.11			2,361,187		18,572	3.19			2,070,576		16,940	3.28
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		51,427						64,056						45,523
Noninterest-bearing deposits		842,312						821,267						804,639
Stockholders’ equity		414,044						405,302						371,795
Total liabilities and stockholders’ equity	$	3,761,511					$	3,651,812					$	3,292,533

Net interest spread					4.64	%					4.67	%					4.91	%
Net interest income			$	50,929					$	49,398					$	47,646
Net interest margin⁽⁴⁾					5.64	%					5.71	%					6.04	%

_______________
⁽¹⁾Annualized.
⁽²⁾Includes nonaccrual loans.
⁽³⁾For the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, Core Loan Yield was 6.77%, 6.93% and 7.14%, respectively.
⁽⁴⁾For the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, Core Net Interest Margin was 4.04%, 4.15% and 4.42%, respectively.


	Six Months Ended June 30,
	2026						2025
	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	$	270,892	$	4,846	3.61	%	$	192,565	$	4,203	4.40	%
Federal funds sold		60		1	3.36			59		1	3.42
Investment securities available-for-sale		236,653		3,273	2.79			232,947		3,443	2.98
Restricted investments		8,572		261	6.14			6,403		198	6.24
Loans held for sale		15,161		429	5.71			9,654		401	8.38
Portfolio loans receivable⁽¹⁾⁽²⁾		3,033,470		129,119	8.58			2,684,263		119,100	8.95
Total interest earning assets		3,564,808		137,929	7.80			3,125,891		127,346	8.22
Noninterest earning assets		142,157						131,552
Total assets	$	3,706,965					$	3,257,443

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	305,388	$	1,230	0.81	%	$	262,226	$	759	0.58	%
Savings		15,757		100	1.28			13,123		34	0.52
Money market accounts		1,252,698		20,276	3.26			897,532		15,421	3.46
Time deposits		781,809		14,986	3.87			838,151		17,020	4.09
Borrowed funds		52,062		1,010	3.91			34,062		419	2.48
Total interest-bearing liabilities		2,407,714		37,602	3.15			2,045,094		33,653	3.32
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		57,707						50,982
Noninterest-bearing deposits		831,847						793,888
Stockholders’ equity		409,697						367,479
Total liabilities and stockholders’ equity	$	3,706,965					$	3,257,443

Net interest spread					4.65	%					4.90	%
Net interest income			$	100,327					$	93,693
Net interest margin⁽³⁾					5.68	%					6.04	%

_______________
⁽¹⁾Includes nonaccrual loans.
⁽²⁾For the six months ended June 30, 2026 and 2025, collectively. Core Loan Yield was 6.85% and 7.14%, respectively.
⁽³⁾For the six months ended June 30, 2026 and 2025, collectively. Core Net Interest Margin was 4.09% and 4.39%, 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).

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 June 30, 2026, March 31, 2026, and June 30, 2025.

Segments

For the three months ended June 30, 2026

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income

53,712

15,995

—

252

69,959

Interest expense

18,894

—

136

19,030

Net interest income

34,818

15,995

—

116

50,929

Provision for (release of) credit losses

(432

)

4,017

—

3,585

Provision for credit losses on unfunded commitments

—

Net interest income after provision

35,185

11,978

—

116

47,279

Noninterest income

Service charges on deposits

409

—

409

Credit card fees

—

4,395

—

4,395

Mortgage banking revenue

278

—

1,682

1,960

Government lending revenue

1,207

—

1,207

Government loan servicing revenue⁽¹⁾

(1,256

)

—

6,559

—

5,303

Loan servicing rights

292

—

292

Other income

618

—

147

795

Total noninterest income

1,548

4,425

6,559

1,829

14,361

Noninterest expenses

Salaries and employee benefits

12,048

3,792

2,625

1,602

20,067

Occupancy and equipment

2,315

1,047

391

189

3,942

Professional fees

2,233

1,228

271

393

4,125

Data processing

452

6,983

7,551

Advertising

765

598

297

156

1,816

Loan processing

927

271

268

1,475

Merger-related expenses

—

Operational and other card fraud related losses

618

—

690

Regulatory assessment expenses

583

214

925

Other operating

1,277

639

558

121

2,595

Total noninterest expenses

20,672

15,390

4,282

2,842

43,186

Net income (loss) before taxes

16,061

1,013

2,277

(897

)

18,454

Total assets

3,689,273

143,716

27,818

29,131

3,889,938

_______________
⁽¹⁾Gross government loan servicing revenue totaled $6.6 million, including $1.3 million of servicing fees earned from the Commercial Bank by Windsor^TM, for the three months ended June 30, 2026.

Segments

For the three months ended March 31, 2026

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income

52,732

15,061

—

177

67,970

Interest expense

18,472

—

100

18,572

Net interest income

34,260

15,061

—

49,398

Provision for credit losses

344

2,670

—

3,014

Provision for credit losses on unfunded commitments

205

—

205

Net interest income after provision

33,711

12,391

—

46,179

Noninterest income

Service charges on deposits

403

—

403

Credit card fees

—

4,692

—

4,692

Mortgage banking revenue

416

—

1,140

1,556

Government lending revenue

923

—

923

Government loan servicing revenue⁽¹⁾

(1,262

)

—

5,607

—

4,345

Loan servicing rights

497

—

497

Other income

707

—

238

957

Total noninterest income

1,684

4,704

5,607

1,378

13,373

Noninterest expenses

Salaries and employee benefits

12,090

3,887

2,664

1,676

20,317

Occupancy and equipment

1,870

1,118

392

182

3,562

Professional fees

2,468

1,861

278

358

4,965

Data processing

545

7,107

7,767

Advertising

718

592

1,466

Loan processing

1,076

238

1,383

Merger-related expenses

—

Operational and other card fraud related losses

625

—

690

Regulatory assessment expenses

598

215

941

Other operating

1,140

715

605

130

2,590

Total noninterest expenses

20,570

16,167

4,146

2,798

43,681

Net income (loss) before taxes

14,825

928

1,461

(1,343

)

15,871

Total assets

3,624,207

135,414

28,535

20,311

3,808,467

_______________
⁽¹⁾Gross government loan servicing revenue totaled $5.6 million, including $1.3 million of servicing fees earned from the Commercial Bank by Windsor^TM, for the three months ended March 31, 2026.

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⁽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

Merger-related expenses

1,398

—

1,398

Operational and other card fraud related 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^TM, 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 six months ended June 30, 2026

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income

106,444

31,056

—

429

137,929

Interest expense

37,366

—

236

37,602

Net interest income

69,078

31,056

—

193

100,327

Provision for (release of) credit losses

(88

)

6,687

—

6,599

Provision for credit losses on unfunded commitments

270

—

270

Net interest income after provision

68,896

24,369

—

193

93,458

Noninterest income

Service charges on deposits

812

—

812

Credit card fees

—

9,087

—

9,087

Mortgage banking revenue

694

—

2,822

3,516

Government lending revenue

2,130

—

2,130

Government loan servicing revenue⁽¹⁾

(2,518

)

—

12,166

—

9,648

Loan servicing rights (government guaranteed)

789

—

789

Other income

1,325

—

385

1,752

Total noninterest income

3,232

9,129

12,166

3,207

27,734

Noninterest expenses

Salaries and employee benefits

24,138

7,679

5,289

3,278

40,384

Occupancy and equipment

4,185

2,165

783

371

7,504

Professional fees

4,701

3,089

549

751

9,090

Data processing

997

14,090

126

105

15,318

Advertising

1,483

1,190

357

252

3,282

Loan processing

2,003

318

506

2,858

Merger-related expenses

—

Operational and other card fraud related losses

137

1,243

—

1,380

Regulatory assessment expenses

1,181

429

130

126

1,866

Other operating

2,417

1,354

1,163

251

5,185

Total noninterest expenses

41,242

31,557

8,428

5,640

86,867

Net income (loss) before taxes

30,886

1,941

3,738

(2,240

)

34,325

Total assets

3,689,273

143,716

27,818

29,131

3,889,938

_______________
⁽¹⁾Gross government loan servicing revenue totaled $12.2 million, including $2.5 million of servicing fees earned from the Commercial Bank by Windsor^TM, for the six months ended June 30, 2026.

Segments

For the six months ended June 30, 2025

(in thousands)

Commercial Bank

OpenSky^™

Windsor Advantage^™

CBHL

Consolidated

Interest income

98,093

28,938

—

315

127,346

Interest expense

33,505

—

148

33,653

Net interest income

64,588

28,938

—

167

93,693

Provision for credit losses

1,605

4,722

—

6,327

Provision for credit losses on unfunded commitments

—

Net interest income after provision

62,983

24,216

—

167

87,366

Noninterest income

Service charges on deposits

520

—

520

Credit card fees

—

8,020

—

8,020

Mortgage banking revenue

728

—

2,857

3,585

Government lending revenue

4,208

—

4,208

Government loan servicing revenue⁽¹⁾

(2,090

)

—

9,302

—

7,212

Loan servicing rights (government guaranteed)

(118

)

—

(118

)

Other income

1,772

—

420

2,228

Total noninterest income

5,020

8,056

9,302

3,277

25,655

Noninterest expenses

Salaries and employee benefits

21,716

6,748

4,915

3,148

36,527

Occupancy and equipment

3,480

1,061

1,079

285

5,905

Professional fees

2,723

1,143

191

477

4,534

Data processing

894

13,479

186

14,632

Advertising

1,513

1,344

139

154

3,150

Loan processing

1,127

491

1,722

Merger-related expenses

2,664

—

2,664

Operational and other card fraud related losses

131

1,705

—

1,836

Regulatory assessment expenses

1,725

1,773

Other operating

3,226

854

608

194

4,882

Total noninterest expenses

39,199

26,407

7,190

4,829

77,625

Net income (loss) before taxes

28,804

5,865

2,112

(1,385

)

35,396

Total assets

3,211,421

129,397

25,936

21,908

3,388,662

_______________
⁽¹⁾Gross government loan servicing revenue totaled $9.3 million, including $2.1 million of servicing fees earned from the Commercial Bank by Windsor^TM, for the six months ended June 30, 2025.


HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
	Quarter Ended
(in thousands, except per share data)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Earnings:
Net income	$	14,250		$	12,018		$	15,037		$	15,065		$	13,136
Earnings per common share, diluted		0.87			0.73			0.91			0.89			0.78
Net interest margin		5.64	%		5.71	%		5.94	%		6.36	%		6.04	%
Core net interest margin⁽²⁾		4.04	%		4.15	%		4.19	%		4.66	%		4.42	%
Return on average assets⁽¹⁾		1.52	%		1.33	%		1.71	%		1.77	%		1.60	%
Return on average equity⁽¹⁾		13.80	%		12.03	%		15.23	%		15.57	%		14.17	%
Efficiency ratio		66.14	%		69.59	%		62.32	%		60.79	%		65.14	%

Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	3,085,950		$	3,026,431		$	2,959,457		$	2,821,983		$	2,739,808
Total deposits		3,371,103			3,292,047			3,093,200			2,912,053			2,940,738
Total assets		3,889,938			3,808,467			3,606,207			3,389,442			3,388,662
Total stockholders' equity		422,205			408,859			401,757			394,770			380,035
Total average portfolio loans receivable, net deferred fees		3,058,476			3,008,187			2,902,033			2,789,815			2,733,865
Total average deposits		3,243,978			3,130,392			2,992,784			2,917,067			2,841,153
Portfolio loans-to-deposit ratio (period-end balances)		91.54	%		91.93	%		95.68	%		96.91	%		93.17	%
Portfolio loans-to-deposit ratio (average balances)		94.28	%		96.10	%		96.97	%		95.64	%		96.22	%

Asset Quality Ratios:
Nonperforming assets to total assets		1.56	%		1.56	%		1.62	%		1.54	%		1.07	%
Nonperforming loans to total loans		1.85	%		1.83	%		1.84	%		1.85	%		1.32	%
Net charge-offs to average portfolio loans⁽¹⁾		0.50	%		0.40	%		0.32	%		0.35	%		0.75	%
Allowance for credit losses to total loans		1.76	%		1.81	%		1.85	%		1.88	%		1.73	%
Allowance for credit losses to non-performing loans		95.51	%		98.67	%		100.44	%		101.53	%		131.19	%

Bank Capital Ratios:
Total risk based capital ratio⁽³⁾		12.60	%		12.52	%		12.60	%		12.95	%		13.13	%
Tier-1 risk based capital ratio⁽³⁾		11.34	%		11.26	%		11.34	%		11.69	%		11.87	%
Leverage ratio⁽³⁾		8.97	%		9.00	%		9.24	%		9.34	%		9.39	%
Common Equity Tier-1 capital ratio⁽³⁾		11.34	%		11.26	%		11.34	%		11.69	%		11.87	%
Tangible common equity⁽³⁾		8.47	%		8.40	%		8.75	%		9.06	%		8.84	%
Holding Company Capital Ratios:
Total risk based capital ratio⁽³⁾		14.47	%		14.25	%		14.31	%		15.25	%		15.30	%
Tier-1 risk based capital ratio⁽³⁾		13.21	%		12.99	%		13.05	%		13.62	%		13.66	%
Leverage ratio⁽³⁾		10.59	%		10.48	%		10.71	%		10.98	%		10.90	%
Common Equity Tier-1 capital ratio⁽³⁾		13.14	%		12.92	%		12.98	%		13.54	%		13.58	%
Tangible common equity⁽³⁾		9.86	%		9.73	%		10.07	%		10.60	%		10.22	%

_______________
⁽¹⁾Annualized.
⁽²⁾Refer to Appendix for reconciliation of non-GAAP measures.
⁽³⁾Estimated ratio at June 30, 2026.


HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (Continued)
	Quarter Ended
(in thousands, except per share data)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Composition of Loans:
Commercial real estate, non owner-occupied	$	561,805		$	522,498		$	533,141		$	509,878		$	495,341
Commercial real estate, owner-occupied		424,109			428,632			418,701			442,827			436,421
Residential real estate		797,745			795,505			765,808			740,060			710,730
Construction real estate		370,710			365,706			359,566			344,290			343,189
Commercial and industrial		731,575			730,576			698,289			619,148			593,279
Lender finance		50,020			43,775			41,421			31,883			32,494
Business equity lines of credit		4,930			4,170			3,818			2,931			2,853
Credit card, net of reserve⁽⁴⁾		145,266			134,789			142,397			136,483			131,029
Other consumer loans		3,772			4,779			1,930			2,010			2,727
Portfolio loans receivable	$	3,089,932		$	3,030,430		$	2,965,071		$	2,829,510		$	2,748,063
Deferred origination fees, net		(3,982	)		(3,999	)		(5,614	)		(7,527	)		(8,255	)
Portfolio loans receivable, net	$	3,085,950		$	3,026,431		$	2,959,457		$	2,821,983		$	2,739,808

Composition of Deposits:
Noninterest-bearing	$	897,363		$	871,677		$	852,741		$	857,543		$	836,979
Interest-bearing demand		391,544			341,723			257,233			275,767			319,431
Savings		23,077			21,471			11,679			12,835			12,879
Money markets		1,390,778			1,276,034			1,105,183			989,159			960,237
Customer time deposits		437,358			478,085			489,687			539,207			541,079
Brokered time deposits		230,983			303,057			376,677			237,542			270,133
Total deposits	$	3,371,103		$	3,292,047		$	3,093,200		$	2,912,053		$	2,940,738

Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	106,885		$	72,933		$	107,283		$	80,651		$	80,334
Mortgage loans sold		87,059			52,423			82,998			66,409			59,663
Gain on sale of loans		2,362			1,496			2,145			1,698			1,597
Purchase volume as a % of originations		86.14	%		73.15	%		72.77	%		92.32	%		91.61	%
Gain on sale as a % of loans sold⁽⁵⁾		2.71	%		2.85	%		2.58	%		2.56	%		2.68	%
Mortgage commissions	$	947		$	594		$	899		$	656		$	501

OpenSky^™Portfolio Metrics:
Open customer accounts		588,594			588,190			585,492			587,641			585,372
Secured credit card loans, gross	$	96,026		$	90,021		$	97,313		$	98,793		$	100,037
Unsecured credit card loans, gross		51,234			46,574			47,131			39,576			32,715
Noninterest secured credit card deposits		166,174			165,506			163,184			166,874			168,936

_______________
⁽⁴⁾Credit card loans are presented net of reserve for interest and fees.
⁽⁵⁾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)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Net Income	$	14,250		$	12,018		$	15,037		$	15,065		$	13,136
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax		—			—			—			(3,489	)		—
Add: Merger-Related Expenses, Net of Tax		—			—			—			575			1,070
Core Net Income	$	14,250		$	12,018		$	15,037		$	12,151		$	14,206

Weighted Average Common Shares - Diluted		16,373			16,441			16,493			16,844			16,802
Earnings per Share - Diluted	$	0.87		$	0.73		$	0.91		$	0.89		$	0.78
Core Earnings per Share - Diluted	$	0.87		$	0.73		$	0.91		$	0.72		$	0.85

Average Assets	$	3,761,511		$	3,651,812		$	3,498,540		$	3,378,296		$	3,292,533
Return on Average Assets⁽¹⁾		1.52	%		1.33	%		1.71	%		1.77	%		1.60	%
Core Return on Average Assets⁽¹⁾		1.52	%		1.33	%		1.71	%		1.43	%		1.73	%

Average Equity	$	414,044		$	405,302		$	391,750		$	383,922		$	371,795
Return on Average Equity⁽¹⁾		13.80	%		12.03	%		15.23	%		15.57	%		14.17	%
Core Return on Average Equity⁽¹⁾		13.80	%		12.03	%		15.23	%		12.56	%		15.33	%

Net Interest Income	$	50,929		$	49,398		$	50,279		$	52,020		$	47,646
Noninterest Income		14,361			13,373			12,464			11,068			13,106
Total Revenue	$	65,290		$	62,771		$	62,743		$	63,088		$	60,752
Noninterest Expense		43,186			43,681			39,103			38,354			39,572
Efficiency Ratio⁽²⁾		66.1	%		69.6	%		62.3	%		60.8	%		65.1	%

Net Interest Income	$	50,929		$	49,398		$	50,279		$	52,020		$	47,646
Deduct: Income from the Call of Brokered Time Deposits		—			—			—			4,618			—
Core Net Interest Income (a)	$	50,929		$	49,398		$	50,279		$	47,402		$	47,646
Noninterest Income (b)		14,361			13,373			12,464			11,068			13,106
Core Revenue (a) + (b)	$	65,290		$	62,771		$	62,743		$	58,470		$	60,752

Noninterest Expense	$	43,186		$	43,681		$	39,103		$	38,354		$	39,572
Less: Merger-Related Expenses		—			—			—			697			1,398
Core Noninterest Expense	$	43,186		$	43,681		$	39,103		$	37,657		$	38,174
Core Efficiency Ratio⁽²⁾		66.1	%		69.6	%		62.3	%		64.4	%		62.8	%

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


Core Earnings Metrics	Six Months Ended
(in thousands, except per share data)	June 30, 2026			June 30, 2025

Net Income	$	26,268		$	27,068
Add: Merger-Related Expenses, Net of Tax		—			2,034
Core Net Income	$	26,268		$	29,102

Weighted Average Common Shares - Diluted		16,404			16,872
Earnings per Share - Diluted	$	1.60		$	1.60
Core Earnings per Share - Diluted	$	1.60		$	1.72

Average Assets	$	3,706,965		$	3,257,443
Return on Average Assets⁽¹⁾		1.43	%		1.68	%
Core Return on Average Assets⁽¹⁾		1.43	%		1.80	%

Average Equity	$	409,697		$	367,479
Return on Average Equity⁽¹⁾		12.93	%		14.85	%
Core Return on Average Equity⁽¹⁾		12.93	%		15.97	%

Net Interest Income	$	100,327		$	93,693
Noninterest Income		27,734			25,655
Total Revenue	$	128,061		$	119,348
Noninterest Expense		86,867			77,625
Efficiency Ratio⁽²⁾		67.8	%		65.0	%

Net Interest Income (a)	$	100,327		$	93,693
Noninterest Income (b)		27,734			25,655
Core Revenue (a) + (b)	$	128,061		$	119,348

Noninterest Expense	$	86,867		$	77,625
Less: Merger-Related Expenses		—			2,664
Core Noninterest Expense	$	86,867		$	74,961
Core Efficiency Ratio⁽²⁾		67.8	%		62.8	%

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


Core Net Interest Margin	Quarter Ended
(in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Net Interest Income	$	50,929		$	49,398		$	50,279		$	52,020		$	47,646
Less: Credit Card Loan Income		15,808			14,882			16,196			15,386			14,116
Net Interest Income Excluding Credit Card		35,121			34,516			34,083			36,634			33,530
Average Interest Earning Assets		3,619,887			3,509,115			3,360,576			3,246,653			3,163,421
Less: Average Credit Card Loans		137,052			133,712			133,858			129,100			121,414
Average Core Interest Earning Assets	$	3,482,835		$	3,375,403		$	3,226,718		$	3,117,553		$	3,042,007
Core Net Interest Margin		4.04	%		4.15	%		4.19	%		4.66	%		4.42	%

Core Net Interest Margin	Six Months Ended
(in thousands)	June 30, 2026			June 30, 2025

Net Interest Income	$	100,327		$	93,693
Less: Credit Card Loan Income		30,690			28,264
Core Net Interest Income		69,637			65,429
Average Interest Earning Assets		3,564,808			3,125,891
Less: Average Credit Card Loans		135,391			120,076
Average Core Interest Earning Assets	$	3,429,417		$	3,005,815
Core Net Interest Margin		4.09	%		4.39	%

Core Loan Yield	Quarter Ended
(in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Portfolio Loans Receivable Interest Income	$	65,110		$	64,009		$	64,670		$	60,610		$	60,647
Less: Credit Card Loan Income		15,808			14,882			16,196			15,386			14,116
Core Portfolio Loans Receivable Interest Income	$	49,302		$	49,127		$	48,474		$	45,224		$	46,531
Average Portfolio Loans Receivable		3,058,476			3,008,187			2,902,033			2,789,815			2,733,865
Less: Average Credit Card Loans		137,052			133,712			133,858			129,100			121,414
Total Core Average Portfolio Loans Receivable	$	2,921,424		$	2,874,475		$	2,768,175		$	2,660,715		$	2,612,451
Core Portfolio Loans Receivable Yield		6.77	%		6.93	%		6.95	%		6.74	%		7.14	%

Core Loan Yield	Six Months Ended
(in thousands)	June 30, 2026			June 30, 2025

Portfolio Loans Receivable Interest Income	$	129,119		$	119,100
Less: Credit Card Loan Income		30,690			28,264
Core Portfolio Loans Receivable Interest Income	$	98,429		$	90,836
Average Portfolio Loans Receivable		3,033,470			2,684,263
Less: Average Credit Card Loans		135,391			120,076
Total Core Average Portfolio Loans Receivable	$	2,898,079		$	2,564,187
Core Portfolio Loans Receivable Yield		6.85	%		7.14	%

Pre-tax, Pre-Provision Net Revenue ("PPNR")	Quarter Ended
(in thousands)	June 30, 2026		March 31, 2026		December 31, 2025			September 30, 2025		June 30, 2025

Net Income	$	14,250	$	12,018	$	15,037		$	15,065	$	13,136
Add: Income Tax Expense		4,204		3,853		4,644			4,802		3,963
Add: Provision for Credit Losses		3,585		3,014		3,988			4,650		4,081
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		65		205		(29	)		217		—
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	22,104	$	19,090	$	23,640		$	24,734	$	21,180

Pre-tax, Pre-Provision Net Revenue ("PPNR")	Six Months Ended
(in thousands)	June 30, 2026		June 30, 2025

Net Income	$	26,268	$	27,068
Add: Income Tax Expense		8,057		8,328
Add: Provision for Credit Losses		6,599		6,327
Add: Provision for Credit Losses on Unfunded Commitments		270		—
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	41,194	$	41,723

Core PPNR	Quarter Ended
(in thousands)	June 30, 2026		March 31, 2026		December 31, 2025			September 30, 2025			June 30, 2025

Net Income	$	14,250	$	12,018	$	15,037		$	15,065		$	13,136
Add: Income Tax Expense		4,204		3,853		4,644			4,802			3,963
Add: Provision for Credit Losses		3,585		3,014		3,988			4,650			4,081
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		65		205		(29	)		217			—
Deduct: Income from the Call of Brokered Time Deposits		—		—		—			(4,618	)		—
Add: Merger-Related Expenses		—		—		—			697			1,398
Core PPNR	$	22,104	$	19,090	$	23,640		$	20,813		$	22,578

Core PPNR	Six Months Ended
(in thousands)	June 30, 2026		June 30, 2025

Net Income	$	26,268	$	27,068
Add: Income Tax Expense		8,057		8,328
Add: Provision for Credit Losses		6,599		6,327
Add: Provision for Credit Losses on Unfunded Commitments		270		—
Add: Merger-Related Expenses		—		2,664
Core PPNR	$	41,194	$	44,387

Allowance for Credit Losses to Total Portfolio Loans	Quarter Ended
(in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Allowance for Credit Losses	$	54,431		$	54,680		$	54,660		$	53,045		$	47,447
Total Portfolio Loans		3,085,950			3,026,431			2,959,457			2,821,983			2,739,808
Allowance for Credit Losses to Total Portfolio Loans		1.76	%		1.81	%		1.85	%		1.88	%		1.73	%

Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans	Quarter Ended
(in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Allowance for Credit Losses	$	54,431		$	54,680		$	54,660		$	53,045		$	47,447
Less: Credit Card Allowance for Credit Losses		8,904			7,802			8,232			7,413			6,762
Commercial Bank Allowance for Credit Losses	$	45,527		$	46,878		$	46,428		$	45,632		$	40,685
Total Portfolio Loans		3,085,950			3,026,431			2,959,457			2,821,983			2,739,808
Less: Gross Credit Card Loans		141,446			131,887			137,905			130,897			126,233
Commercial Bank Portfolio Loans	$	2,944,504		$	2,894,544		$	2,821,552		$	2,691,086		$	2,613,575
Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans		1.55	%		1.62	%		1.65	%		1.70	%		1.56	%

Nonperforming Assets to Total Assets	Quarter Ended
(in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Total Nonperforming Assets	$	60,843		$	59,273		$	58,276		$	52,247		$	36,167
Total Assets		3,889,938			3,808,467			3,606,207			3,389,442			3,388,662
Nonperforming Assets to Total Assets		1.56	%		1.56	%		1.62	%		1.54	%		1.07	%

Nonperforming Loans to Total Portfolio Loans	Quarter Ended
(in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Total Nonperforming Loans	$	56,987		$	55,417		$	54,421		$	52,247		$	36,167
Total Portfolio Loans		3,085,950			3,026,431			2,959,457			2,821,983			2,739,808
Nonperforming Loans to Total Portfolio Loans		1.85	%		1.83	%		1.84	%		1.85	%		1.32	%

Net Charge-Offs to Average Portfolio Loans	Quarter Ended
(in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Total Net Charge-Offs	$	3,834		$	2,994		$	2,373		$	2,476		$	5,088
Total Average Portfolio Loans		3,058,476			3,008,187			2,902,033			2,789,815			2,733,865
Net Charge-Offs to Average Portfolio Loans, Annualized		0.50	%		0.40	%		0.32	%		0.35	%		0.75	%


Net Charge-offs to Average Portfolio Loans	Six Months Ended
(in thousands)	June 30, 2026			June 30, 2025

Total Net Charge-Offs	$	6,828		$	7,532
Total Average Portfolio Loans		3,033,470			2,684,263
Net Charge-Offs to Average Portfolio Loans, Annualized		0.45	%		0.57	%

Tangible Book Value per Share	Quarter Ended
(in thousands, except share and per share data)	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025

Total Stockholders' Equity	$	422,205	$	408,859	$	401,757	$	394,770	$	380,035
Less: Intangible Assets		40,219		40,480		40,740		41,002		37,773
Tangible Common Equity	$	381,986	$	368,379	$	361,017	$	353,768	$	342,262
Period End Shares Outstanding		16,289,288		16,286,480		16,373,288		16,589,241		16,581,990
Tangible Book Value per Share	$	23.45	$	22.62	$	22.05	$	21.33	$	20.64

Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Net Income	$	14,250		$	12,018		$	15,037		$	15,065		$	13,136
Add: Intangible Amortization, Net of Tax		201			197			200			199			200
Net Tangible Income	$	14,451		$	12,215		$	15,237		$	15,264		$	13,336
Average Equity		414,044			405,302			391,750			383,922			371,795
Less: Average Intangible Assets		40,377			40,628			40,884			37,706			39,534
Net Average Tangible Common Equity	$	373,667		$	364,674		$	350,866		$	346,216		$	332,261
Return on Average Equity		13.80	%		12.03	%		15.23	%		15.57	%		14.17	%
Return on Average Tangible Common Equity		15.51	%		13.58	%		17.23	%		17.49	%		16.10	%

Return on Average Tangible Common Equity	Six Months Ended
(in thousands)	June 30, 2026			June 30, 2025

Net Income	$	26,268		$	27,068
Add: Intangible Amortization, Net of Tax		399			399
Net Tangible Income	$	26,667		$	27,467
Average Equity		409,697			367,479
Less: Average Intangible Assets		40,502			38,232
Net Average Tangible Common Equity	$	369,195		$	329,247
Return on Average Equity		12.93	%		14.85	%
Return on Average Tangible Common Equity		14.57	%		16.82	%

Core Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Core Net Income	$	14,250		$	12,018		$	15,037		$	12,151		$	14,206
Add: Intangible Amortization, Net of Tax		201			197			200			199			200
Core Net Tangible Income	$	14,451		$	12,215		$	15,237		$	12,350		$	14,406
Core Return on Average Tangible Common Equity		15.51	%		13.58	%		17.23	%		14.15	%		17.39	%

Core Return on Average Tangible Common Equity	Six Months Ended
(in thousands)	June 30, 2026			June 30, 2025

Core Net Income	$	26,268		$	29,102
Add: Intangible Amortization, Net of Tax		399			399
Core Net Tangible Income	$	26,667		$	29,501
Core Return on Average Tangible Common Equity		14.57	%		18.07	%

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., and Baltimore, Maryland metropolitan 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 $3.9 billion at June 30, 2026 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 that 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 Iran and 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 Company’s ability to remediate the material weakness in the Company’s internal control over financial reporting; 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

+0.50%

Capital Bancorp Inc

Latest News

3 hours	Capital Bancorp: Q2 Earnings Snapshot CBNK Associated Press
3 hours	CBNK Reports 2Q ROA of 1.52% and EPS of $0.87 CBNK GlobeNewswire
Jun-10	Capital Bank Announces the Appointment of Don Busick to Its Board Leadership Team CBNK GlobeNewswire
Apr-27	Capital Bancorp: Q1 Earnings Snapshot CBNK Associated Press
Apr-27	CBNK Continues Strong Growth With Accelerated Investment Underway CBNK GlobeNewswire
Apr-07	Should Value Investors Buy Capital Bancorp (CBNK) Stock? CBNK Quartz
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

CBNK Reports 2Q ROA of 1.52% and EPS of $0.87

Mentioned In This Article

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