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CBNK Reports 2Q ROA of 1.60% and EPS of $0.78

Growth across Loans, Deposits, and Cards accompanied

by Improving Credit Delivers Strong Profitability

Second Quarter 2025 Highlights

•GAAP Net Income of $13.1 million, or $0.78 per share, and return on average assets ("ROA") of 1.60%

◦Core net income(1) of $14.2 million, or $0.85 per share, and core ROA(1) of 1.73%

•Book value per common share of $22.92 at June 30, 2025, increased $0.73 compared to 1Q 2025, and increased $3.66 when compared to 2Q 2024

◦Tangible book value per share(1) of $20.64, increased 4.2% (not annualized), or $0.83 as compared to 1Q 2025, and increased 7.2%, or $1.38 compared to 2Q 2024

•Return on average equity ("ROE") of 14.17%, and return on average tangible common equity ("ROTCE")(1) of 16.10%

◦Core ROE(1) of 15.33%, and core ROTCE(1) of 17.39%

•Gross Loans(2) grew $61.4 million, or 9.2% (annualized), during 2Q 2025, and growth of $718.2 million year-over-year including $344.7 million from organic growth and $373.5 million from the IFH acquisition

•Total deposits grew $49.4 million, or 6.9% (annualized), from 1Q 2025. Year-over-year growth of $840.3 million includes $381.3 million from organic growth, and $459.0 million from the acquisition of IFH, or 44.2% from 2Q 2024

◦Customer Deposit3 growth of $87.1 million, or 13.5% (annualized) from 1Q 2025, and $725.3 million year-over-year, or 37.3% from 2Q 2024, including $431.8 million of organic growth, and $293.5 million from the acquisition of IFH

•Net Interest Income increased $1.6 million, or 3.5% (not annualized), from 1Q 2025 due to strong balance sheet growth from the Commercial Bank , and increased $10.6 million, or 28.6%, year-over-year, primarily driven by strong organic growth and the acquisition of IFH

•Net Interest Margin ("NIM") of 6.04% decreased 1 bps compared to 1Q 2025 and decreased 42 bps compared to 2Q 2024 due to the acquisition of commercial loans from IFH, diluting the impact from OpenSky™

◦Commercial Bank NIM(1) of 4.36% increased by 4 bps, or 7 bps when excluding purchase accounting accretion ("PAA"), when compared to 1Q 2025, and 46 bps,or 30 bps excluding PAA, compared to 2Q 2024

▪2Q 2025 net PAA of $1.3 million, or 16 bps of NIM and Commercial Bank NIM(1), decreased $0.2 million, or 3 bps, compared to 1Q 2025

•The allowance for credit losses to total loans ("ACL Coverage Ratio") equaled 1.73% at June 30, 2025 down 8 bps from March 31, 2025 and up 20 bps from June 30, 2024, primarily due to the acquisition of IFH loans. The Commercial Bank ACL Coverage Ratio(1) equaled 1.56% at June 30, 2025, compared to 1.67% at March 31, 2025

•Fee Revenue (noninterest income) totaled $13.1 million, or 21.6% of total revenue for 2Q 2025, an increase of $0.6 million, from 1Q 2025 and an increase of $6.2 million, from 2Q 2024

•Cash Dividend of $0.12 per share declared by the Board of Directors, an increase of 20% from 1Q 2025

•Shares repurchased and retired during the three months ended June 30, 2025, as part of the Company's stock repurchase program, totaled 93,170 shares at an average price of $26.66, for a total cost of $2.5 million including commissions

(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 exclude merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

(2) Gross loans represent portfolio loans receivable, net of deferred fees and costs

(3) Customer Deposits represents total deposits excluding brokered deposits

Rockville, Maryland, July 28, 2025 (GLOBE NEWSWIRE) – Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported net income of $13.1 million, or $0.78 per diluted share, for 2Q 2025, compared to net income of $13.9 million, or $0.82 per diluted share, for 1Q 2025, and $8.2 million, or $0.59 per diluted share, for 2Q 2024. Core net income(1) for 2Q 2025 of $14.2 million, or $0.85 per diluted share, compared to $14.9 million, or $0.88 per diluted share in 1Q 2025.

The Company also declared a cash dividend on its common stock of $0.12 per share, a 20% increase from the prior quarterly dividend. The dividend is payable on August 27, 2025 to shareholders of record on August 11, 2025.

“We are pleased with the significant progress we are making on our Strategic Plan, demonstrated by our record results for the first half of 2025” said Ed Barry, CEO of the Company and the Bank. “Our teams continue to unlock the value of our acquisition of IFH, grow the franchise, and strengthen our diversified business model."

"Although earnings did not advance quarter over quarter, our continued focus on growing commercial and industrial loans, our success at building core deposits, and our strong net interest margin have the Commercial Bank well-positioned for profitable growth,” said Steven J. Schwartz, Chairman of the Company. “As the integration of the IFH transaction progresses, we are pleased that we have been able to maintain our fee revenue above 20% of total revenue. And, in the absence of any unexpected headwinds, which do not appear to be materializing at present, our multiple growth levers provide the means to achieve robust EPS and TBV growth. This marks the 4th consecutive year that we have increased our dividend payout. Our consistent dividend payments and continued stock buybacks evidence our sustained commitment to reward our shareholders.”

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 merger-related expenses and other one-time non-recurring transactions.


	Second Quarter 2025								First 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		Net Income		Diluted Earnings per Share
GAAP Net Income	$	17,099	$	3,963	$	13,136	$	0.78	$	18,297	$	4,365	$	13,932	$	0.82
Add: Merger-Related Expenses	1,398		328		1,070				1,266		302		964
Core Net Income(1)	$	18,497	$	4,291	$	14,206	$	0.85	$	19,563	$	4,667	$	14,896	$	0.88


	Six Months Ended June 30, 2025
(in thousands except per share data)	Income Before Income Taxes		Income Tax Expense		Net Income		Diluted Earnings per Share
GAAP Earnings	$	35,396	$	8,328	$	27,068	$	1.60
Add: Merger-Related Expenses	2,664		630		2,034
Core Net Income(1)	$	38,060	$	8,958	$	29,102	$	1.72

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

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

Second Quarter 2025 Results

Earnings Summary

Net income of $13.1 million, or $0.78 per diluted share, compared to net income of $13.9 million, or $0.82 per diluted share, for 1Q 2025, and $8.2 million or $0.59 per diluted share, for 2Q 2024. 2Q 2025 core net income(1) of $14.2 million, or $0.85 per diluted share, compared to 1Q 2025 of $14.9 million, or $0.88 per diluted share.

•Net interest income of $47.6 million increased $1.6 million, or 3.5% (not annualized), compared to 1Q 2025, and increased $10.6 million, or 28.6%, year-over-year.

◦Interest income of $64.6 million increased $1.8 million, or 2.9% (not annualized), over 1Q 2025, and increased $14.0 million, or 27.6%, year-over-year. The increase quarter-over-quarter was driven by an increase from Commercial Bank loan interest income due to portfolio growth, while the increase year-over-year was primarily driven by organic growth and the acquisition of IFH.

▪Interest income included $0.4 million from net purchase accounting accretion in 2Q 2025, flat compared to 1Q 2025. There was no impact related to purchase accounting during 2Q 2024.

◦Interest expense of $16.9 million increased $0.2 million, or 1.4% (not annualized) compared to 1Q 2025, and increased $3.4 million, or 24.9%, year-over-year. The increase quarter-over-quarter was mainly due to a lower benefit from net purchase accounting accretion, as higher deposit volumes were offset by lower deposit rates. The increase year-over-year was driven by organic growth and the acquisition of IFH.

▪Interest expense included a $0.9 million benefit from net purchase accounting accretion in 2Q 2025 compared to a $1.1 million benefit in 1Q 2025. There was no impact related to purchase accounting during 2Q 2024.

•The 2Q 2025 provision for credit losses was $4.1 million, an increase of $1.8 million from 1Q 2025. The increase over the prior quarter was primarily driven by $1.1 million from OpenSky™ due to higher volumes in both the secured and unsecured portfolio, and $0.7 million from the Commercial Bank due to higher charge-offs not previously provided for. Net charge-offs totaled $5.1 million, or 0.75% of portfolio loans (annualized), including $3.0 million from the Commercial Bank and $2.1 million from OpenSky™ loans. The Commercial Bank charge-offs were driven by $2.1 million from balances charged off from the acquired IFH portfolio, including a loan sale resulting in a charge-off of $1.5 million. Net charge-offs for 1Q 2025 totaled $2.4 million, or 0.38% of portfolio loans (annualized), mainly driven by $2.3 million from OpenSky™ loans.

◦At June 30, 2025, the ACL Coverage Ratio was 1.73%, down 8 bps from the ratio of 1.81% at March 31, 2025, primarily due to the sale during the quarter of a purchase credit deteriorated ("PCD") loan acquired from IFH .

Earnings Summary (Continued)

•Fee Revenue of $13.1 million increased $0.6 million, compared to 1Q 2025 and increased $6.2 million year-over-year primarily due to the contributions made by the businesses IFH brought to the merged entity. During 2Q 2025, core fee revenue(1) of $13.1 million increased $0.6 million as a result of $2.0 million higher government lending revenue (net gain on sale), $0.6 million higher credit card fees from OpenSky™, and $0.1 million higher government loan servicing revenue (Windsor Advantage™), offset by a $1.1 million negative impact from the fair value adjustment related to the loan servicing portfolio, and $1.0 million lower other income. Core fee revenue mix was 21.6% of total revenue for 2Q 2025, compared to 21.4% during 1Q 2025, and 15.7% during 2Q 2024.

•Noninterest expense of $39.6 million increased $1.5 million compared to 1Q 2025 and $10.1 million compared to 2Q 2024. Core noninterest expense(1) of $38.2 million increased $1.4 million compared to 1Q 2025 and $8.8 million compared to 2Q 2024. Core comparisons include:

◦The increase of $1.4 million quarter-over-quarter was driven by an increase from personnel expenses, growth from business related activities including costs associated with servicing the USDA portfolio, and continued investments in technology including the implementation of a new digital banking solution.

◦Year-over-year expense growth of $8.8 million was primarily due to the acquisition of IFH.

•Income tax expense of $4.0 million, or 23.2% of pre-tax income for 2Q 2025, decreased $0.4 million from $4.4 million, or 23.9% of pre-tax income for 1Q 2025. The core effective income tax rate(1) for 2Q 2025 and 1Q 2025 would have been 23.2% and 23.7%, 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 merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Balance Sheet

Total assets of $3.4 billion at June 30, 2025 increased $38.9 million, or 4.7% (annualized), from March 31, 2025. Total assets growth year-over-year of $1.0 billion, or 39.0%, included $559.4 million acquired with the IFH acquisition, net of purchase accounting, and $440.6 million of organic growth.

•The $38.9 million growth in total assets quarter-over-quarter is primarily driven by Gross Loan growth of $61.4 million, Investment portfolio growth of $15.5 million, partially offset by decreases in total Cash of $19.4 million and Loans Held for Sale of $13.7 million.

•Gross Loans of $2.74 billion at June 30, 2025 increased $61.4 million, or 9.2% (annualized), from March 31, 2025 and increased $718.2 million year-over-year including $373.5 million from the acquisition of IFH and $344.7 million of organic growth.

◦Compared to March 31, 2025, the growth of $61.4 million was primarily driven by $26.7 million from commercial real estate, $17.1 million from residential real estate, $12.3 million from OpenSky™, and $9.3 million from lender finance.

◦Commercial and industrial loans, plus owner-occupied commercial real estate loans totaled 37.6% of total portfolio loans at June 30, 2025, consistent with the prior quarter, and 28.4% at June 30, 2024.

•Total deposits of $2.94 billion at June 30, 2025 increased $49.4 million, or 6.9% (annualized), from March 31, 2025, and increased $840.3 million, or 40.0% (annualized) from June 30, 2024. The increase quarter-over-quarter includes $47.8 million of growth in customer money market deposits, $24.8 million of noninterest-bearing deposits, and $23.0 million from interest-bearing demand accounts, partially offset by a decrease in brokered time deposits of $37.7 million and $8.6 million of customer time deposits. The increase of $840.3 million year-over-year is driven by $459.0 million from the acquisition of IFH and $381.3 million from organic growth.

◦Insured and protected1 deposits were approximately $2.1 billion as of June 30, 2025 representing 69.9% of the Company's deposit portfolio.

◦Low-and-no interest-bearing DDA deposits of $1.2 billion, or 39.8% of deposits, increased $47.8 million, or 17.1% (annualized) from 1Q 2025, and increased $214.4 million, or 22.4% year-over-year, including $122.9 million of organic growth, and $91.5 million from the acquisition of IFH.

▪The average rate on the low-and-no interest-bearing deposits was 0.14% for 2Q 2025, a decrease of 1 bps from 1Q 2025 and an increase of 8 bps year-over-year.

•The average portfolio loans-to-deposit ratio was 96.2% for 2Q 2025, compared to 95.2% for 1Q 2025, and 99.1% for 2Q 2024.

•The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $228.9 million, or 6.8% of total assets, an effective duration of 2.7 years, with U.S. Treasury Securities representing 60% of the overall investment portfolio at June 30, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio improved $1.1 million during the quarter to negative $8.1 million after-tax as of June 30, 2025, which represents 2.1% 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 June 30, 2025 totaled $834.8 million, compared to $820.9 from 1Q 2025. During 2Q 2025, available collateralized lines of credit totaled $750.6 million, unsecured lines of credit with other banks totaled $76.0 million and unpledged investment securities available as collateral for potential additional borrowings of $8.2 million.

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

•Capital Positions – As of June 30, 2025, the Company reported a Common Equity Tier-1 capital ratio of 13.58%, compared to 13.24% at March 31, 2025. At June 30, 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 June 30, 2025, as part of the Company's stock repurchase program, totaled 93,170 shares at an average price of $26.66, for a total cost of $2.5 million including commissions. There is $11.9 million remaining to be repurchased under the authorized and approved stock repurchase plan. The stock repurchase program will expire on February 28, 2026.

Financial Metrics

Net Interest Margin – NIM of 6.04% for 2Q 2025, decreased 1 bps compared to the prior quarter, and decreased 42 bps year-over-year. Commercial Bank NIM(1), of 4.36% increased 4 bps, compared to the prior quarter, and increased 46 bps year-over-year. Net purchase accounting accretion for 2Q 2025 was 16 bps for NIM and Commercial Bank NIM(1).

•The average yield on interest earning assets of 8.19% decreased 5 bps compared to the prior quarter, due to minor changes in portfolio mix, and decreased 63 bps year-over-year primarily due to the acquisition of commercial loans diluting the positive impact from OpenSky™. The Commercial Bank Loan Yield(1) of 7.14% for 2Q 2025 was flat compared to 1Q 2025, and increased 10 bps year-over-year.

•The total cost of deposits of 2.36% for 2Q 2025 decreased 6 bps compared to the prior quarter due to lower rates on most products and mix shift and decreased 25 bps year-over-year. The total cost of interest-bearing deposits decreased 8 bps quarter-over-quarter, and 57 bps year-over-year, to 3.29% for 2Q 2025 primarily due to changes in product mix.

•Net purchase accounting accretion of $1.3 million during 2Q 2025, decreased $0.2 million from 1Q 2025. There was no impact from purchase accounting during 2Q 2024.

Fee Revenue Mix – The fee revenue mix was 21.6% of total revenue for 2Q 2025, compared to 21.4% during 1Q 2025, and 15.7% during 2Q 2024. The core fee revenue mix(1) was consistent with fee revenue mix for these periods.

Credit Metrics and Asset Quality – The ACL Coverage Ratio equaled 1.73% at June 30, 2025, a decrease of 8 bps from March 31, 2025, and an increase of 20 bps year-over-year driven by the acquisition of IFH.

Nonperforming assets decreased 17 bps to 1.11% of total assets at June 30, 2025 compared to March 31, 2025, primarily due to the sale of a PCD loan acquired from IFH during the quarter, and increased 53 bps year-over-year. Total nonaccrual loans at June 30, 2025 decreased $5.4 million to $37.5 million compared to March 31, 2025, and increased $23.5 million year-over-year, mainly due to the acquisition of IFH. At June 30, 2025, special mention loans totaled $54.2 million, or 2.0% of total portfolio loans, compared to $63.0 million, or 2.4% of total portfolio loans, at March 31, 2025, and $23.3 million, or 1.2% of total portfolio loans, at June 30, 2024. At June 30, 2025, substandard loans totaled $44.6 million, or 1.7% of total portfolio loans, compared to $48.4 million, or 1.8% of total portfolio loans, at March 31, 2025 and $22.1 million, or 1.2% of total portfolio loans, at June 30, 2024.

Efficiency Ratios – The efficiency ratio was 65.1% for 2Q 2025, compared to 64.9% for 1Q 2025 and 67.1% for 2Q 2024. The core efficiency ratio(1) was 62.8%, for 2Q 2025, which was flat compared to the prior quarter, and 66.9% for 2Q 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 merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Financial Metrics (Continued)

Performance Ratios – ROA was 1.60% for 2Q 2025, compared to 1.75% for 1Q 2025, and 1.40% for 2Q 2024. As of June 30, 2024, the Company did not have goodwill or other intangible assets. Core ROA(1) for 2Q 2025 was 1.73%, compared to 1.87% for 1Q 2025, and 1.41% for 2Q 2024.

•ROE was 14.17% for 2Q 2025, compared to 15.56% for 1Q 2025, and 12.53% for 2Q 2024. As of June 30, 2024, the Company did not have goodwill or other intangible assets. Core ROE(1) was 15.33% for 2Q 2025, compared to 16.64% for 1Q 2025, and 12.62% for 2Q 2024.

•ROTCE was 16.10% for 2Q 2025, compared to 17.57% for 1Q 2025, and 12.53% for 2Q 2024. As of June 30, 2024, the Company did not have goodwill or other intangible assets. Core ROTCE(1) for 2Q 2025 was 17.39%, compared to 18.77% for 1Q 2025, and 12.62% for 2Q 2024.

Book Value and Tangible Book Value – Book value per common share of $22.92 at June 30, 2025, increased $0.73 when compared to March 31, 2025, and increased $3.66 when compared to June 30, 2024. Tangible book value per common share(1) increased $0.83, or 4.2%, to $20.64 at June 30, 2025 when compared to March 31, 2025, and increased $1.39, or 7.2%, when compared to June 30, 2024. Tangible book value was impacted by the purchase accounting adjustments required as part of the IFH acquisition. Tangible book value per share(1) was equal to book value per share for periods prior to 4Q 2024.

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 merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Commercial Bank

Loan Growth – Portfolio loans(1) increased $52.0 million at June 30, 2025 compared to March 31, 2025, driven by $10.9 million from CRE owner and non-owner occupied, $17.1 million from residential real estate, and $9.3 million from lender finance loans. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

Net Interest Income – Interest income of $49.9 million increased $1.8 million from the prior quarter, primarily driven by loan growth and slightly higher loan yields. Interest expense of $16.9 million increased $0.2 million, primarily due to lower benefit from purchase accounting adjustments in 2Q 2025.

Credit Metrics – Nonperforming assets, comprised solely of nonaccrual loans, decreased 17 bps to 1.11% of total assets at June 30, 2025 compared to March 31, 2025. Total nonaccrual loans at June 30, 2025 decreased to $37.5 million compared to $42.9 million at March 31, 2025.

Classified and Criticized Loans – At June 30, 2025, special mention loans totaled $54.2 million, or 2.0% of total portfolio loans, compared to $63.0 million, or 2.4% of total portfolio loans, at March 31, 2025. At June 30, 2025, substandard loans totaled $44.6 million, or 1.7% of total portfolio loans, compared to $45.7 million, or 1.7% of total portfolio loans, at March 31, 2025.

OpenSky™

Accounts – During 2Q 2025, credit card accounts of 585.4 thousand increased by 21.7 thousand, or 3.8% (not annualized) from March 31, 2025, and increased 47.6 thousand, or 8.9% year-over-year.

Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves, of $131.0 million at June 30, 2025 increased by $12.3 million, or 10.4% (not annualized), compared to March 31, 2025. Deposit balances of $168.9 million for 2Q 2025 remained flat compared to 1Q 2025. Gross unsecured loan balances of $46.4 million at June 30, 2025 increased $7.4 million, or 18.9% (not annualized), compared to $39.0 million at March 31, 2025, and increased $12.8 million year-over-year. Gross secured loan balances of $86.4 million at June 30, 2025 increased $5.1 million, or 6.3% (not annualized), compared to $81.3 million at March 31, 2025, and decreased $4.6 million, or 5.0% (not annualized) year-over-year.

Net Interest Income – Interest income of $14.5 million was in-line with the prior quarter. Average OpenSky credit card loan balances, net of reserves and deferred fees of $121.4 million for 2Q 2025, increased $2.7 million, or 2.3% (not annualized), compared to 1Q 2025.

Fee Revenue - Total fee revenue of $4.3 million increased $0.6 million from the prior quarter primarily driven by interchange income due to higher volume and other credit-card related fees.

Noninterest Expense – Total noninterest expense of $13.1 million remained generally consistent with the prior quarter.

OpenSky™ Credit – Portfolio credit metrics continued to be consistent with modeled expectations during 2Q 2025. The provision for credit losses of $2.9 million increased $1.1 million when compared to the prior quarter mainly due to growth in the secured and unsecured portfolio. OpenSky's unsecured loan product continues to be offered exclusively to current and former secured card customers to retain customers who have successfully improved their credit profiles. Unsecured loans have been offered by OpenSky since the fourth quarter of 2021 and have generally performed in accordance with management expectations over that time period.

(1) Portfolio loans represents portfolio loans receivable excluding deferred origination fees

Capital Bank Home Loans

Originations of loans held for sale totaled $80.3 million during 2Q 2025, with $59.7 million of mortgage loans sold resulting in a gain on sale of loans of $1.6 million, representing a 2.68% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $65.8 million during 1Q 2025, with $54.1 million of mortgage loans sold resulting in a gain on sale of loans of $1.7 million, representing a 3.07% gain on sale as a percentage of total loans sold.

Windsor Advantage™

Gross government loan servicing revenue totaled $4.7 million, including $1.1 million of Capital Bank related servicing fees, during 2Q 2025. Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of Capital Bank related servicing fees, during 1Q 2025. Windsor's™ total servicing portfolio was $2.9 billion at June 30, 2025, and $2.7 billion at March 31, 2025.


COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited

	Quarter Ended									2Q25 vs 1Q25				2Q25 vs 2Q24
(in thousands, except per share data)	June 30, 2025			March 31, 2025			June 30, 2024			$ Change		% Change		$ Change		% Change
Earnings Summary
Interest income	$	64,586		$	62,760		$	50,615		$	1,826	2.9	%	$	13,971	27.6	%
Interest expense	16,940			16,713			13,558			227		1.4	%	3,382		24.9	%
Net interest income	47,646			46,047			37,057			1,599		3.5	%	10,589		28.6	%
Provision for credit losses	4,081			2,246			3,417			1,835		81.7	%	664		19.4	%
Provision for credit losses on unfunded commitments	—			—			104			—		—	%	(104)		(100.0)	%
Noninterest income	13,106			12,549			6,890			557		4.4	%	6,216		90.2	%
Noninterest expense	39,572			38,053			29,493			1,519		4.0	%	10,079		34.2	%
Income before income taxes	17,099			18,297			10,933			(1,198)		(6.5)	%	6,166		56.4	%
Income tax expense	3,963			4,365			2,728			(402)		(9.2)	%	1,235		45.3	%
Net income	$	13,136		$	13,932		$	8,205		$	(796)	(5.7)	%	$	4,931	60.1	%

Pre-tax pre-provision net revenue ("PPNR") (1)	$	21,180		$	20,543		$	14,454		$	637	3.1	%	$	6,726	46.5	%
Core PPNR(1)	$	22,578		$	21,809		$	14,537		$	769	3.5	%	$	8,041	55.3	%

Common Share Data
Earnings per share - Basic	$	0.79		$	0.84		$	0.59		$	(0.05)	(6.0)	%	$	0.20	33.9	%
Earnings per share - Diluted	$	0.78		$	0.82		$	0.59		$	(0.04)	(4.9)	%	$	0.19	32.2	%
Core earnings per share - Diluted(1)	$	0.85		$	0.88		$	0.59		$	(0.03)	(3.4)	%	$	0.26	44.1	%
Weighted average common shares - Basic	16,584			16,666			13,895
Weighted average common shares - Diluted	16,802			16,925			13,895

Return Ratios
Return on average assets (annualized)	1.60		%	1.75		%	1.40		%
Core return on average assets (annualized)(1)	1.73		%	1.87		%	1.41		%

Return on average equity (annualized)	14.17		%	15.56		%	12.53		%
Core return on average equity (annualized)(1)	15.33		%	16.64		%	12.62		%
Return on average tangible common equity (annualized)(1)	16.10		%	17.57		%	12.53		%

Core return on average tangible common equity (annualized)(1)	17.39		%	18.77		%	12.62		%

______________

(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)	2025			2024			$ Change		% Change
Earnings Summary
Interest income	$	127,346		$	98,984		$	28,362	28.7	%
Interest expense	33,653			26,919			6,734		25.0	%
Net interest income	93,693			72,065			21,628		30.0	%
Provision for credit losses	6,327			6,144			183		3.0	%
Provision for credit losses on unfunded commitments	—			246			(246)		(100.0)	%
Noninterest income	25,655			12,862			12,793		99.5	%
Noninterest expense	77,625			58,980			18,645		31.6	%
Income before income taxes	35,396			19,557			15,839		81.0	%
Income tax expense	8,328			4,790			3,538		73.9	%
Net income	$	27,068		$	14,767		$	12,301	83.3	%

Pre-tax pre-provision net revenue ("PPNR") (1)	$	41,723		$	25,947		$	15,776	60.8	%
Core PPNR(1)	$	44,387		$	26,742		$	17,645	66.0	%

Common Share Data
Earnings per share - Basic	$	1.63		$	1.06		$	0.57	53.8	%
Earnings per share - Diluted	$	1.60		$	1.06		$	0.54	50.9	%
Core earnings per share - Diluted(1)	$	1.72		$	1.10
Weighted average common shares - Basic	16,624			13,907
Weighted average common shares - Diluted	16,872			13,907

Return Ratios
Return on average assets (annualized)	1.68		%	1.28		%
Core return on average assets (annualized)(1)	1.80		%	1.33		%

Return on average equity (annualized)	14.85		%	11.37		%
Core return on average equity (annualized)(1)	15.97		%	11.83		%
Return on average tangible common equity (annualized)(1)	16.82		%	11.37		%
Core return on average tangible common equity (annualized)(1)	18.07		%	11.83		%

______________

(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)	2025		2024		% Change		2025		2024		2024
Balance Sheet Highlights
Assets	$	3,388,662	$	2,438,583	39.0	%	$	3,349,805	$	3,206,911	$	2,560,788
Investment securities available-for-sale	228,923		207,917		10.1	%	213,452		223,630		208,700
Mortgage loans held for sale	20,925		19,219		8.9	%	34,656		21,270		19,554
Portfolio loans receivable (2)	2,739,808		2,021,588		35.5	%	2,678,406		2,630,163		2,107,522
Allowance for credit losses	47,447		30,832		53.9	%	48,454		48,652		31,925
Deposits	2,940,738		2,100,428		40.0	%	2,891,333		2,761,939		2,186,224
FHLB borrowings	22,000		32,000		(31.3)	%	22,000		22,000		52,000
Other borrowed funds	12,062		12,062		—	%	12,062		12,062		12,062
Total stockholders' equity	380,035		267,854		41.9	%	369,577		355,139		280,111
Tangible common equity (1)	342,262		267,854		27.8	%	329,936		318,196		280,111

Common shares outstanding	16,582		13,910		19.2	%	16,657		16,663		13,918
Book value per share	$	22.92	$	19.26	19.0	%	$	22.19	$	21.31	$	20.13
Tangible book value per share (1)	$	20.64	$	19.26	7.2	%	$	19.81	$	19.10	$	20.13
Dividends per share	$	0.10	$	0.08	25.0	%	$	0.10	$	0.10	$	0.10

______________

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

(2) Loans are reflected net of deferred fees and costs.


Consolidated Statements of Income (Unaudited)
	Three Months Ended										Six Months Ended
(in thousands)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		June 30, 2025		June 30, 2024
Interest income
Loans, including fees	$	60,810	$	58,691	$	58,602	$	50,047	$	48,275	$	119,501	$	94,266
Investment securities available-for-sale	1,582		1,861		1,539		1,343		1,308		3,443		2,559
Federal funds sold and other	2,194		2,208		1,566		1,220		1,032		4,402		2,159
Total interest income	64,586		62,760		61,707		52,610		50,615		127,346		98,984

Interest expense
Deposits	16,722		16,512		16,385		13,902		13,050		33,234		25,883
Borrowed funds	218		201		995		354		508		419		1,036
Total interest expense	16,940		16,713		17,380		14,256		13,558		33,653		26,919

Net interest income	47,646		46,047		44,327		38,354		37,057		93,693		72,065
Provision for credit losses	4,081		2,246		7,828		3,748		3,417		6,327		6,144
Provision for credit losses on unfunded commitments	—		—		122		17		104		—		246
Net interest income after provision for credit losses	43,565		43,801		36,377		34,589		33,536		87,366		65,675

Noninterest income
Service charges on deposits	262		258		241		235		200		520		407
Credit card fees	4,298		3,722		3,733		4,055		4,330		8,020		8,211
Mortgage banking revenue	1,754		1,831		1,821		1,882		1,990		3,585		3,443
Government lending revenue	3,112		1,096		2,301		—		—		4,208		—
Government loan servicing revenue	3,644		3,568		3,993		—		—		7,212		—
Loan servicing rights (government guaranteed)	(590)		472		1,013		—		—		(118)		—
Non-recurring equity and debt investment write-down	—		—		(2,620)		—		—		—		—


Other income	626		1,602		1,431		463		370		2,228		801
Total noninterest income	13,106		12,549		11,913		6,635		6,890		25,655		12,862

Noninterest expenses
Salaries and employee benefits	18,460		18,067		16,513		13,345		13,272		36,527		26,179
Occupancy and equipment	2,995		2,910		2,976		1,791		1,864		5,905		3,477
Professional fees	2,422		2,112		2,150		1,980		1,769		4,534		3,716
Data processing	7,520		7,112		7,210		6,930		6,788		14,632		13,549
Advertising	1,371		1,779		1,032		1,223		2,072		3,150		4,104
Loan processing	979		743		969		615		476		1,722		847
Foreclosed real estate expenses, net	—		1		—		1		—		1		1
Merger-related expenses	1,398		1,266		2,615		520		83		2,664		795
Operational losses	933		903		993		1,008		782		1,836		1,713
Regulatory assessment expenses	884		889		554		483		427		1,773		900
Other operating	2,610		2,271		2,502		1,829		1,960		4,881		3,699
Total noninterest expenses	39,572		38,053		37,514		29,725		29,493		77,625		58,980
Income before income taxes	17,099		18,297		10,776		11,499		10,933		35,396		19,557
Income tax expense	3,963		4,365		3,243		2,827		2,728		8,328		4,790
Net income	$	13,136	$	13,932	$	7,533	$	8,672	$	8,205	$	27,068	$	14,767


Consolidated Balance Sheets
	(unaudited)		(unaudited)		(audited)		(unaudited)		(unaudited)
(in thousands, except share data)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
Assets
Cash and due from banks	$	26,843	$	27,836	$	25,433	$	23,462	$	19,294
Interest-bearing deposits at other financial institutions	247,704		266,092		179,841		133,180		117,160
Federal funds sold	59		59		58		58		57
Total cash and cash equivalents	274,606		293,987		205,332		156,700		136,511
Investment securities available-for-sale	228,923		213,452		223,630		208,700		207,917

Restricted investments	7,043		7,031		4,479		5,895		4,930
Loans held for sale	20,925		34,656		21,270		19,554		19,219

Portfolio loans receivable, net of deferred fees and costs	2,739,808		2,678,406		2,630,163		2,107,522		2,021,588
Less allowance for credit losses	(47,447)		(48,454)		(48,652)		(31,925)		(30,832)
Total portfolio loans held for investment, net	2,692,361		2,629,952		2,581,511		2,075,597		1,990,756
Premises and equipment, net	14,863		15,085		15,525		5,959		5,551
Accrued interest receivable	15,149		19,458		16,664		12,468		12,162
Goodwill	22,478		24,085		21,126		—		—
Intangible assets	13,668		13,861		14,072		—		—
Core deposit intangibles	1,627		1,695		1,745		—		—
Loan servicing assets	2,221		2,244		5,511		—		—
Deferred tax asset	15,667		15,902		16,670		10,748		12,150


Bank owned life insurance	44,721		44,335		43,956		38,779		38,414

Other assets	34,410		34,062		35,420		26,388		10,973
Total assets	$	3,388,662	$	3,349,805	$	3,206,911	$	2,560,788	$	2,438,583

Liabilities
Deposits
Noninterest-bearing	$	836,979	$	812,224	$	810,928	$	718,120	$	684,574
Interest-bearing	2,103,759		2,079,109		1,951,011		1,468,104		1,415,854
Total deposits	2,940,738		2,891,333		2,761,939		2,186,224		2,100,428


Federal Home Loan Bank advances	22,000		22,000		22,000		52,000		32,000
Other borrowed funds	12,062		12,062		12,062		12,062		12,062
Accrued interest payable	8,158		9,995		9,393		8,503		6,573
Other liabilities	25,669		44,838		46,378		21,888		19,666
Total liabilities	3,008,627		2,980,228		2,851,772		2,280,677		2,170,729

Stockholders' equity

Common stock	166		167		167		139		139
Additional paid-in capital	126,888		128,692		128,598		55,585		55,005
Retained earnings	261,093		249,925		237,843		232,995		225,824
Accumulated other comprehensive loss	(8,112)		(9,207)		(11,469)		(8,608)		(13,114)
Total stockholders' equity	380,035		369,577		355,139		280,111		267,854
Total liabilities and stockholders' equity	$	3,388,662	$	3,349,805	$	3,206,911	$	2,560,788	$	2,438,583

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, 2025						Three Months Ended March 31, 2025						Three Months Ended June 30, 2024
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate(1)		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate(1)		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate(1)
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	182,192	$	2,065	4.55	%	$	203,053	$	2,138	4.27	%	$	77,069	$	937	4.89	%
Federal funds sold	59		—		—		58		1		6.99		56		1		7.18
Investment securities available-for-sale	230,317		1,582		2.76		235,605		1,861		3.20		223,973		1,308		2.35
Restricted investments	7,038		129		7.35		5,761		69		4.86		5,435		94		6.96
Loans held for sale	9,950		163		6.57		9,356		238		10.32		7,907		132		6.71
Portfolio loans receivable(2)(3)	2,733,865		60,647		8.90		2,634,110		58,453		9.00		1,992,630		48,143		9.72
Total interest earning assets	3,163,421		64,586		8.19		3,087,943		62,760		8.24		2,307,070		50,615		8.82
Noninterest earning assets	129,112						134,021						46,798
Total assets	$	3,292,533					$	3,221,964					$	2,353,868

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	281,878	391		0.56		$	242,355	368		0.62		$	216,247	148		0.28
Savings	13,043		16		0.49		13,204		18		0.55		4,409		1		0.09
Money market accounts	924,784		8,022		3.48		869,978		7,399		3.45		671,240		7,032		4.21
Time deposits	816,809		8,293		4.07		859,729		8,727		4.12		465,822		5,869		5.07
Borrowed funds	34,062		218		2.57		34,062		201		2.39		54,863		508		3.72
Total interest-bearing liabilities	2,070,576		16,940		3.28		2,019,328		16,713		3.36		1,412,581		13,558		3.86
Noninterest-bearing liabilities:
Noninterest-bearing liabilities	45,523						56,503						24,844
Noninterest-bearing deposits	804,639						783,018						653,018
Stockholders’ equity	371,795						363,115						263,425
Total liabilities and stockholders’ equity	$	3,292,533					$	3,221,964					$	2,353,868

Net interest spread					4.91	%					4.88	%					4.96	%
Net interest income			$	47,646					$	46,047					$	37,057
Net interest margin(4)					6.04	%					6.05	%					6.46	%

_______________

(1)Annualized.

(2)Includes nonaccrual loans.

(3)For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, collectively, Commercial Bank Loan Yield was 7.14%, 7.14% and 7.04%, respectively.

(4)For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, collectively, Commercial Bank Net Interest Margin was 4.36%, 4.32% and 3.90%, respectively.


	Six Months Ended June 30,
	2025						2024
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate(1)		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate(1)
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	192,565	$	4,203	4.40	%	$	80,800	$	1,986	4.94	%
Federal funds sold	59		1		3.42		56		2		7.18
Investment securities available-for-sale	232,947		3,443		2.98		228,602		2,559		2.25
Restricted investments	6,403		198		6.24		5,018		171		6.85
Loans held for sale	9,654		401		8.38		6,390		215		6.77
Portfolio loans receivable(2)(3)	2,684,263		119,100		8.95		1,960,001		94,051		9.65
Total interest earning assets	3,125,891		127,346		8.22		2,280,867		98,984		8.73
Noninterest earning assets	131,552						45,684
Total assets	$	3,257,443					$	2,326,551

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	262,226	$	759	0.58	%	$	199,732	$	258	0.26	%
Savings	13,123		34		0.52		4,625		2		0.09
Money market accounts	897,532		15,421		3.46		676,827		14,168		4.21
Time deposits	838,151		17,020		4.09		457,892		11,455		5.03
Borrowed funds	34,062		419		2.48		56,913		1,036		3.66
Total interest-bearing liabilities	2,045,094		33,653		3.32		1,395,989		26,919		3.88
Noninterest-bearing liabilities:
Noninterest-bearing liabilities	50,982						24,332
Noninterest-bearing deposits	793,888						645,071
Stockholders’ equity	367,479						261,159
Total liabilities and stockholders’ equity	$	3,257,443					$	2,326,551

Net interest spread					4.90	%					4.85	%
Net interest income			$	93,693					$	72,065
Net interest margin(4)					6.04	%					6.35	%

(1)Annualized.

(2)Includes nonaccrual loans.

(3)For the years ended June 30, 2025 and 2024, collectively. Commercial Bank Loan Yield was 7.14% and 7.00%, respectively.

(4)For the years ended June 30, 2025 and 2024, collectively. Commercial Bank Net Interest Margin was 4.33% and 3.84%, 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 June 30, 2025, March 31, 2025, and June 30, 2024.


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					—		84		16,940
Net interest income	33,073			14,494		—		79		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		—		79		43,565
Noninterest income
Service charges on deposits	262			—		—		—		262
Credit card fees	—			4,298		—		—		4,298
Mortgage banking revenue	465			—		—		1,289		1,754
Government lending revenue	3,112			—		—		—		3,112
Government loan servicing revenue(1)	(1,052)			—		4,696		—		3,644
Loan servicing rights (government guaranteed)(2)	(590)			—		—		—		(590)
Other income	349			25		—		252		626
Total noninterest income	2,546		2546000	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		71		227		2,422
Data processing	454			6,897		133		36		7,520
Advertising	795			470		35		71		1,371
Loan processing	650			24		54		251		979
Foreclosed real estate expenses, net	—			—		—		—		—
Merger-related expenses	1,398			—		—		—		1,398
Operational losses	100			833		—		—		933
Regulatory assessment expenses	860			15		6		3		884
Other operating	1,817			338		354		101		2,610
Total noninterest expenses	20,639			13,105		3,530		2,298		39,572
Net income (loss) before taxes	$	13,821		$	2,790	$	1,166	$	(678)	$	17,099

Total assets	$	3,211,421		$	129,397	$	25,936	$	21,908	$	3,388,662

________________________

(1) Gross government loan servicing revenue totaled $4.7 million, including $1.1 million of servicing fees earned from the Commercial Bank by Windsor, for the three months ended June 30, 2025.

(2) Loan servicing revenue of negative $0.6 million for the Commercial Bank includes a $1.1 million negative fair value adjustment associated with loan servicing portfolio


Segments
For the three months ended March 31, 2025
(in thousands)	Commercial Bank		OpenSky™		Windsor Advantage™		CBHL		Consolidated
Interest income	$	48,164	$	14,444	$	—	$	152	$	62,760
Interest expense	16,649		—		—		64		16,713
Net interest income	31,515		14,444		—		88		46,047
Provision for credit losses	446		1,800		—		—		2,246
Provision for credit losses on unfunded commitments	—		—		—		—		—
Net interest income after provision	31,069		12,644		—		88		43,801
Noninterest income
Service charges on deposits	258		—		—		—		258
Credit card fees	—		3,722		—		—		3,722
Mortgage banking revenue	263		—		—		1,568		1,831
Government lending revenue	1,096		—		—		—		1,096
Government loan servicing revenue(1)	(1,038)		—		4,606		—		3,568
Loan servicing rights (government guaranteed)	472		—		—		—		472
Other income	1,423		11		—		168		1,602
Total noninterest income	2,474		3,733		4,606		1,736		12,549
Noninterest expenses
Salaries and employee benefits	10,626		3,345		2,406		1,690		18,067
Occupancy and equipment	1,577		488		711		134		2,910
Professional fees	1,151		591		120		250		2,112
Data processing	440		6,582		53		37		7,112
Advertising	718		874		104		83		1,779
Loan processing	477		19		7		240		743
Foreclosed real estate expenses, net	1		—		—		—		1
Merger-related expenses	1,266		—		—		—		1,266
Operational losses	31		872		—		—		903
Regulatory assessment expenses	865		15		5		4		889
Other operating	1,408		516		254		93		2,271
Total noninterest expenses	18,560		13,302		3,660		2,531		38,053
Net income (loss) before taxes	$	14,983	$	3,075	$	946	$	(707)	$	18,297

Total assets	$	3,192,327	$	119,636	$	23,750	$	14,092	$	3,349,805

________________________

(1) Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of servicing fees earned from the Commercial Bank by Windsor, for the three months ended March 31, 2025.


Segments
For the three months ended June 30, 2024
(in thousands)	Commercial Bank		OpenSky™		Windsor Advantage™		CBHL		Consolidated
Interest income	$	34,698	$	15,785	$	—	$	132	$	50,615
Interest expense	13,475		—		—		83		13,558
Net interest income	21,223		15,785		—		49		37,057
Provision for credit losses	1,118		2,299		—		—		3,417
Provision for credit losses on unfunded commitments	104		—		—		—		104
Net interest income after provision	20,001		13,486		—		49		33,536
Noninterest income
Service charges on deposits	200		—		—		—		200
Credit card fees	—		4,330		—		—		4,330
Mortgage banking revenue	334		—		—		1,656		1,990
Other income	143		38		—		189		370
Total noninterest income	677		4,368		—		1,845		6,890
Noninterest expense
Salaries and employee benefits	8,595		3,086		—		1,591		13,272
Occupancy and equipment	1,221		499		—		144		1,864
Professional fees	855		675		—		239		1,769
Data processing	145		6,597		—		46		6,788
Advertising	404		1,576		—		92		2,072
Loan processing	233		16		—		227		476
Foreclosed real estate expenses, net	—		—		—		—		—
Merger-related expenses	83		—		—		—		83
Operational losses	—		782		—		—		782
Regulatory assessment expenses	427		—		—		—		427
Other operating	1,255		544		—		161		1,960
Total noninterest expenses	13,218		13,775		—		2,500		29,493
Net income (loss) before taxes	$	7,460	$	4,079	$	—	$	(606)	$	10,933

Total assets	$	2,303,368	$	115,593	$	—	$	19,622	$	2,438,583


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		36		—		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		73		14,632
Advertising	1,513		1,344		139		154		3,150
Loan processing	1,127		43		61		491		1,722
Foreclosed real estate expenses, net	1		—		—		—		1
Merger-related expenses	2,664		—		—		—		2,664
Operational losses	131		1,705		—		—		1,836
Regulatory assessment expenses	1,725		30		11		7		1,773
Other operating	3,225		854		608		194		4,881
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, for the six months ended June 30, 2025.


Segments
For the six months ended June 30, 2024
(in thousands)	Commercial Bank		OpenSky™		Windsor Advantage™		CBHL		Consolidated
Interest income	$	68,063	$	30,706	$	—	$	215	$	98,984
Interest expense	26,795		—		—		124		26,919
Net interest income	41,268		30,706		—		91		72,065
Provision for credit losses	2,286		3,858		—		—		6,144
Provision for credit losses on unfunded commitments	246		—		—		—		246
Net interest income after provision	38,736		26,848		—		91		65,675
Noninterest income
Service charges on deposits	407		—		—		—		407
Credit card fees	—		8,211		—		—		8,211
Mortgage banking revenue	622		—		—		2,821		3,443
Other income	353		72		—		376		801
Total noninterest income	1,382		8,283		—		3,197		12,862
Noninterest expenses
Salaries and employee benefits	17,304		5,898		—		2,977		26,179
Occupancy and equipment	2,265		933		—		279		3,477
Professional fees	1,656		1,616		—		444		3,716
Data processing	461		13,004		—		84		13,549
Advertising	786		3,168		—		150		4,104
Loan processing	392		29		—		426		847
Foreclosed real estate expenses, net	1		—		—		—		1
Merger-related expenses	795		—		—		—		795
Operational losses	5		1,708		—		—		1,713
Regulatory assessment expenses	900		—		—		—		900
Other operating	2,436		1,018		—		245		3,699
Total noninterest expenses	27,001		27,374		—		4,605		58,980
Net income (loss) before taxes	$	13,117	$	7,757	$	—	$	(1,317)	$	19,557

Total assets	$	2,303,368	$	115,593	$	—	$	19,622	$	2,438,583


HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
	Quarter Ended
(in thousands, except per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Earnings:
Net income	$	13,136		$	13,932		$	7,533		$	8,672		$	8,205
Earnings per common share, diluted	0.78			0.82			0.45			0.62			0.59
Net interest margin	6.04		%	6.05		%	5.87		%	6.41		%	6.46		%
Commercial Bank net interest margin(2)	4.36		%	4.32		%	3.99		%	4.01		%	3.90		%
Return on average assets(1)	1.60		%	1.75		%	0.96		%	1.42		%	1.40		%
Return on average equity(1)	14.17		%	15.56		%	8.50		%	12.59		%	12.53		%
Efficiency ratio	65.14		%	64.94		%	66.70		%	66.07		%	67.11		%

Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	2,739,808		$	2,678,406		$	2,630,163		$	2,107,522		$	2,021,588
Total deposits	2,940,738			2,891,333			2,761,939			2,186,224			2,100,428
Total assets	3,388,662			3,349,805			3,206,911			2,560,788			2,438,583
Total stockholders' equity	380,035			369,577			355,139			280,111			267,854
Total average portfolio loans receivable, net deferred fees	2,733,865			2,634,110			2,592,960			2,053,619			1,992,630
Total average deposits	2,841,153			2,768,284			2,611,994			2,091,294			2,010,736
Portfolio loans-to-deposit ratio (period-end balances)	93.17		%	92.64		%	95.23		%	96.40		%	96.25		%
Portfolio loans-to-deposit ratio (average balances)	96.22		%	95.15		%	99.27		%	98.20		%	99.10		%

Asset Quality Ratios:
Nonperforming assets to total assets	1.11		%	1.28		%	0.94		%	0.60		%	0.58		%
Nonperforming loans to total loans	1.37		%	1.60		%	1.15		%	0.73		%	0.70		%

Net charge-offs to average portfolio loans (1)	0.75		%	0.38		%	0.37		%	0.51		%	0.39		%

Allowance for credit losses to total loans	1.73		%	1.81		%	1.85		%	1.51		%	1.53		%

Allowance for credit losses to non-performing loans	126.51		%	119.73		%	160.88		%	206.50		%	219.40		%

Bank Capital Ratios:
Total risk based capital ratio	13.13		%	12.93		%	12.79		%	13.76		%	14.51		%
Tier-1 risk based capital ratio	11.87		%	11.67		%	11.54		%	12.50		%	13.25		%
Leverage ratio	9.39		%	9.27		%	9.17		%	9.84		%	10.36		%
Common Equity Tier-1 capital ratio	11.87		%	11.67		%	11.54		%	12.50		%	13.25		%
Tangible common equity	8.84		%	8.66		%	9.31		%	9.12		%	9.53		%

Holding Company Capital Ratios:
Total risk based capital ratio	15.30		%	14.97		%	15.48		%	16.65		%	16.98		%
Tier-1 risk based capital ratio	13.66		%	13.32		%	13.83		%	14.88		%	15.19		%
Leverage ratio	10.90		%	10.68		%	11.07		%	11.85		%	11.93		%
Common Equity Tier-1 capital ratio	13.58		%	13.24		%	13.74		%	14.78		%	15.08		%
Tangible common equity	10.22		%	9.94		%	11.07		%	10.94		%	10.98		%

_______________

(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)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Composition of Loans:

Commercial real estate, non owner-occupied	$	495,341		$	484,399		$	471,329		$	403,487		$	397,080
Commercial real estate, owner-occupied	436,421			420,643			440,026			351,462			319,370
Residential real estate	710,730			693,597			688,552			623,684			601,312
Construction real estate	343,189			343,280			321,252			301,909			294,489
Commercial and industrial	593,279			594,331			554,550			271,811			255,686
Lender finance	32,494			23,165			28,574			29,546			33,294
Business equity lines of credit	2,853			3,468			3,090			2,663			2,989
Credit card, net of reserve(3)	131,029			118,709			127,766			127,098			122,217
Other consumer loans	2,727			2,200			2,089			2,045			1,930
Portfolio loans receivable	$	2,748,063		$	2,683,792		$	2,637,228		$	2,113,705		$	2,028,367
Deferred origination fees, net	(8,255)			(5,386)			(7,065)			(6,183)			(6,779)
Portfolio loans receivable, net	$	2,739,808		$	2,678,406		$	2,630,163		$	2,107,522		$	2,021,588

Composition of Deposits:
Noninterest-bearing	$	836,979		$	812,224		$	810,928		$	718,120		$	684,574
Interest-bearing demand	319,431			296,455			238,881			266,493			266,070
Savings	12,879			12,819			13,488			3,763			4,270
Money markets	960,237			912,418			816,708			686,526			672,455
Customer time deposits	541,079			549,630			548,901			358,300			317,911
Brokered time deposits	270,133			307,787			333,033			153,022			155,148
Total deposits	$	2,940,738		$	2,891,333		$	2,761,939		$	2,186,224		$	2,100,428

Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	80,334		$	65,815		$	89,998		$	74,690		$	82,363
Mortgage loans sold	59,663			54,144			77,399			67,296			66,417
Gain on sale of loans	1,597			1,664			1,897			1,644			1,732
Purchase volume as a % of originations	91.61		%	90.73		%	90.42		%	90.98		%	96.48		%
Gain on sale as a % of loans sold(4)	2.68		%	3.07		%	2.45		%	2.44		%	2.61		%
Mortgage commissions	$	501		$	545		$	620		$	598		$	582

OpenSky™ Portfolio Metrics:
Open customer accounts	585,372			563,718			552,566			548,952			537,734
Secured credit card loans, gross	$	86,400		$	81,252		$	87,226		$	89,641		$	90,961
Unsecured credit card loans, gross	46,352			38,987			42,430			39,730			33,560
Noninterest secured credit card deposits	168,936			168,796			166,355			170,750			173,499

_______________

(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.

Appendix

Reconciliation of Non-GAAP Measures


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

Net Income	$	13,136		$	13,932		$	7,533		$	8,672		$	8,205
Add: Merger-Related Expenses, Net of Tax	1,070			964			2,151			557			62
Add: Non-Recurring Equity and Debt Investment Write-Down	—			—			2,620			—			—
Add: IFH ACL Provision, Net of Tax	—			—			3,169			—			—
Core Net Income	$	14,206		$	14,896		$	15,473		$	9,229		$	8,267

Weighted Average Common Shares - Diluted	16,802			16,925			16,729			13,951			13,895
Earnings per Share - Diluted	$	0.78		$	0.82		$	0.45		$	0.62		$	0.59
Core Earnings per Share - Diluted	$	0.85		$	0.88		$	0.92		$	0.66		$	0.59

Average Assets	$	3,292,533		$	3,221,964		$	3,120,107		$	2,437,870		$	2,353,868
Return on Average Assets(1)	1.60		%	1.75		%	0.96		%	1.42		%	1.40		%
Core Return on Average Assets(1)	1.73		%	1.87		%	1.97		%	1.51		%	1.41		%

Average Equity	$	371,795		$	363,115		$	352,537		$	274,087		$	263,425
Return on Average Equity(1)	14.17		%	15.56		%	8.50		%	12.59		%	12.53		%
Core Return on Average Equity(1)	15.33		%	16.64		%	17.46		%	13.40		%	12.62		%

Net Interest Income (a)	$	47,646		$	46,047		$	44,327		$	38,354		$	37,057
Noninterest Income	13,106			12,549			11,913			6,635			6,890
Total Revenue	$	60,752		$	58,596		$	56,240		$	44,989		$	43,947
Noninterest Expense	$	39,572		$	38,053		$	37,514		$	29,725		$	29,493
Efficiency Ratio(2)	65.1		%	64.9		%	66.7		%	66.1		%	67.1		%

Noninterest Income	$	13,106		$	12,549		$	11,913		$	6,635		$	6,890
Add: Non-Recurring Equity and Debt Investment Write-Down	—			—			2,620			—			—
Core Fee Revenue (b)	$	13,106		$	12,549		$	14,533		$	6,635		$	6,890
Core Revenue (a) + (b)	$	60,752		$	58,596		$	58,860		$	44,989		$	43,947

Noninterest Expense	$	39,572		$	38,053		$	37,514		$	29,725		$	29,493
Less: Merger-Related Expenses	1,398			1,266			2,615			520			83
Core Noninterest Expense	$	38,174		$	36,787		$	34,899		$	29,205		$	29,410
Core Efficiency Ratio(2)	62.8		%	62.8		%	59.3		%	64.9		%	66.9		%

_______________

(1)Annualized.

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

Appendix

Reconciliation of Non-GAAP Measures


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

Net Income	$	27,068		$	14,767
Add: Merger-Related Expenses, Net of Tax	2,034			600
Add: Non-Recurring Equity and Debt Investment Write-Down	—			—
Add: IFH ACL Provision, Net of Tax	—			—
Core Net Income	$	29,102		$	15,367

Weighted Average Common Shares - Diluted	16,872			13,907
Earnings per Share - Diluted	$	1.60		$	1.06
Core Earnings per Share - Diluted	$	1.72		$	1.10

Average Assets	$	3,257,443		$	2,326,551
Return on Average Assets(1)	1.68		%	1.28		%
Core Return on Average Assets	1.80		%	1.33		%

Average Equity	$	367,479		$	261,159
Return on Average Equity(1)	14.85		%	11.37		%
Core Return on Average Equity	15.97		%	11.83		%

Net Interest Income (a)	$	93,693		$	72,065
Noninterest Income	25,655			12,862
Total Revenue	$	119,348		$	84,927
Noninterest Expense	$	77,625		$	58,980
Efficiency Ratio(2)	65.0		%	69.4		%

Noninterest Income	$	25,655		$	12,862
Add: Non-Recurring Equity and Debt Investment Write-Down	—			—
Core Fee Revenue (b)	$	25,655		$	12,862
Core Revenue (a) + (b)	$	119,348		$	84,927

Noninterest Expense	$	77,625		$	58,980
Less: Merger-Related Expenses	2,664			795
Core Noninterest Expense	$	74,961		$	58,185
Core Efficiency Ratio(2)	62.8		%	68.5		%

_______________

(1)Annualized.

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

Appendix

Reconciliation of Non-GAAP Measures


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

Commercial Bank Net Interest Income	$	33,073	$	31,515	$	28,812	$	22,676	$	21,223
Average Interest Earning Assets	3,176,544		3,087,943		3,003,081		2,380,946		2,307,070
Less: Average Non-Commercial Bank Interest Earning Assets	132,196		128,278		133,401		129,906		119,801
Average Commercial Bank Interest Earning Assets	$	3,044,348	$	2,959,665	$	2,869,680	$	2,251,040	$	2,187,269
Commercial Bank Net Interest Margin	4.36%		4.32%		3.99%		4.01%		3.90%



Commercial Bank Net Interest Margin	Six Months Ended
(in thousands)	June 30, 2025		June 30, 2024

Commercial Bank Net Interest Income	$	64,588	$	41,268
Average Interest Earning Assets	3,138,661		2,280,867
Less: Average Non-Commercial Bank Interest Earning Assets	130,248		118,000
Average Commercial Bank Interest Earning Assets	$	3,008,413	$	2,162,867
Commercial Bank Net Interest Margin	4.33%		3.84%


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

Portfolio Loans Receivable Interest Income	$	60,647	$	58,453	$	58,409	$	49,886	$	48,143
Less: Credit Card Loan Income	14,116		14,148		15,022		15,137		15,205
Commercial Bank Portfolio Loans Receivable Interest Income	$	46,531	$	44,305	$	43,387	$	34,749	$	32,938
Average Portfolio Loans Receivable	2,733,865		2,634,110		2,592,960		2,053,619		1,992,630
Less: Average Credit Card Loans	121,414		118,723		120,993		119,458		111,288
Total Commercial Bank Average Portfolio Loans Receivable	$	2,612,451	$	2,515,387	$	2,471,967	$	1,934,161	$	1,881,342
Commercial Bank Portfolio Loans Receivable Yield	7.14%		7.14%		6.98%		7.15%		7.04%



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

Portfolio Loans Receivable Interest Income	$	119,100	$	94,051
Less: Credit Card Loan Income	28,264		29,662
Commercial Bank Portfolio Loans Receivable Interest Income	$	90,836	$	64,389
Average Portfolio Loans Receivable	2,684,263		1,960,001
Less: Average Credit Card Loans	120,076		110,885
Total Commercial Bank Average Portfolio Loans Receivable	$	2,564,187	$	1,849,116
Commercial Bank Portfolio Loans Receivable Yield	7.14%		7.00%

Appendix

Reconciliation of Non-GAAP Measures


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

Net Income	$	13,136	$	13,932	$	7,533	$	8,672	$	8,205
Add: Income Tax Expense	3,963		4,365		3,243		2,827		2,728
Add: Provision for Credit Losses	4,081		2,246		7,828		3,748		3,417
Add: Provision for Credit Losses on Unfunded Commitments	—		—		122		17		104
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	21,180	$	20,543	$	18,726	$	15,264	$	14,454



Pre-tax, Pre-Provision Net Revenue ("PPNR")	Six Months Ended
(in thousands)	June 30, 2025		June 30, 2024

Net Income	$	27,068	$	14,767
Add: Income Tax Expense	8,328		4,790
Add: Provision for Credit Losses	6,327		6,144
Add: Provision for Credit Losses on Unfunded Commitments	—		246
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	41,723	$	25,947


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

Net Income	$	13,136	$	13,932	$	7,533	$	8,672	$	8,205
Add: Income Tax Expense	3,963		4,365		3,243		2,827		2,728
Add: Provision for Credit Losses	4,081		2,246		7,828		3,748		3,417
Add: Provision for Credit Losses on Unfunded Commitments	—		—		122		17		104
Add: Merger-Related Expenses	1,398		1,266		2,615		520		83
Add: Non-Recurring Equity and Debt Investment Write-Down	—		—		2,620		—		—
Core PPNR	$	22,578	$	21,809	$	23,961	$	15,784	$	14,537



Core PPNR	Six Months Ended
(in thousands)	June 30, 2025		June 30, 2024

Net Income	$	27,068	$	14,767
Add: Income Tax Expense	8,328		4,790
Add: Provision for Credit Losses	6,327		6,144
Add: Provision for Credit Losses on Unfunded Commitments	—		246
Add: Merger-Related Expenses	2,664		795
Add: Non-Recurring Equity and Debt Investment Write-Down	—		—
Core PPNR	$	44,387	$	26,742

Appendix

Reconciliation of Non-GAAP Measures


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

Allowance for Credit Losses	$	47,447	$	48,454	$	48,652	$	31,925	$	30,832
Total Portfolio Loans	2,739,808		2,678,406		2,630,163		2,107,522		2,021,588
Allowance for Credit Losses to Total Portfolio Loans	1.73%		1.81%		1.85%		1.51%		1.53%


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

Allowance for Credit Losses	$	47,447	$	48,454	$	48,652	$	31,925	$	30,832
Less: Credit Card Allowance for Credit Losses	6,762		5,905		6,402		7,339		6,768
Commercial Bank Allowance for Credit Losses	40,685		42,549		42,250		24,586		24,064
Total Portfolio Loans	2,739,808		2,678,406		2,630,163		2,107,522		2,021,588
Less: Gross Credit Card Loans	126,233		115,991		122,928		121,718		116,180
Commercial Bank Portfolio Loans	2,613,575		2,562,415		2,507,235		1,985,804		1,905,408

Commercial Bank Allowance for Credit Losses to Total Portfolio Loans	1.56%		1.67%		1.70%		1.24%		1.26%


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

Total Nonperforming Assets	$	37,505	$	42,934	$	30,241	$	15,460	$	14,053
Total Assets	3,388,662		3,349,805		3,206,911		2,560,788		2,438,583
Nonperforming Assets to Total Assets	1.11%		1.28%		0.94%		0.60%		0.58%


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

Total Nonperforming Loans	$	37,505	$	42,934	$	30,241	$	15,460	$	14,053
Total Portfolio Loans	2,739,808		2,678,406		2,630,163		2,107,522		2,021,588
Nonperforming Loans to Total Portfolio Loans	1.37%		1.60%		1.15%		0.73%		0.70%


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

Total Net Charge-Offs	$	5,088	$	2,444	$	2,427	$	2,655	$	1,935
Total Average Portfolio Loans	2,733,865		2,634,110		2,592,960		2,053,619		1,992,630
Net Charge-Offs to Average Portfolio Loans, Annualized	0.75%		0.38%		0.37%		0.51%		0.39%

Appendix

Reconciliation of Non-GAAP Measures


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

Total Stockholders' Equity	$	380,035	$	369,577	$	355,139	$	280,111	$	267,854
Less: Preferred Equity	—		—		—		—		—
Less: Intangible Assets	37,773		39,641		36,943		—		—
Tangible Common Equity	$	342,262	$	329,936	$	318,196	$	280,111	$	267,854
Period End Shares Outstanding	16,581,990		16,657,168		16,662,626		13,917,891		13,910,467
Tangible Book Value per Share	$	20.64	$	19.81	$	19.10	$	20.13	$	19.26


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

Net Income	$	13,136		$	13,932		$	7,533		$	8,672		$	8,205
Add: Intangible Amortization, Net of Tax	200			199			198			—			—
Net Tangible Income	$	13,336		$	14,131		$	7,731		$	8,672		$	8,205
Average Equity	371,795			363,115			352,537			274,087			263,425
Less: Average Intangible Assets	39,552			36,896			22,890			—			—
Net Average Tangible Common Equity	$	332,243		$	326,219		$	329,647		$	274,087		$	263,425
Return on Average Equity	14.17		%	15.56		%	8.50		%	12.59		%	12.53		%
Return on Average Tangible Common Equity	16.10		%	17.57		%	9.33		%	12.59		%	12.53		%


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

Net Income	$	27,068		$	14,767
Add: Intangible Amortization, Net of Tax	399			—
Net Tangible Income	$	27,467		$	14,767
Average Equity	367,479			261,159
Less: Average Intangible Assets	38,232			—
Net Average Tangible Common Equity	$	329,247		$	261,159
Return on Average Equity	14.85		%	11.37		%
Return on Average Tangible Common Equity	16.82		%	11.37		%


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

Net Income, as Adjusted	$	14,206		$	14,896		$	15,473		$	9,229		$	8,267
Add: Intangible Amortization, Net of Tax	200			199			198			—			—
Core Net Tangible Income	$	14,406		$	15,095		$	15,671		$	9,229		$	8,267

Core Return on Average Tangible Common Equity	17.39		%	18.77		%	18.91		%	13.40		%	12.62		%


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

Net Income, as Adjusted	$	29,102		$	15,367
Add: Intangible Amortization, Net of Tax	399			—
Core Net Tangible Income	$	29,501		$	15,367

Core Return on Average Tangible Common Equity	18.07		%	11.83		%

ABOUT CAPITAL BANCORP, INC.

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

FORWARD-LOOKING STATEMENTS

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

While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: the strength of the United States (“U.S.”) economy in general and the strength of the local economies in

which we conduct operations; geopolitical concerns, including the ongoing wars in Ukraine and in the Middle East; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors and/or broader economic conditions and financial markets; 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, including the costs of compliance with potential legislation to combat cybersecurity at a state, national, or global level; climate change, and other catastrophic disasters; the effect of the IFH acquisition or any other acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; 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: Dominic C. Canuso (301) 468-8848 x1403

MEDIA CONTACT: Ed Barry (240) 283-1912

WEB SITE: www.CapitalBankMD.com