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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
Fourth Quarter 2025 Highlights
•GAAP Net Income of $15.0 million was flat compared to 3Q 2025. Earnings per share of $0.91 increased $0.02 per share, compared to 3Q 2025 and return on average assets ("ROA") of 1.71% decreased 6 basis points compared to 3Q 2025
◦Core net income(1) of $15.0 million, or $0.91 per share increased $0.19 per share compared to 3Q 2025 and Core ROA(1) of 1.71% increased 28 basis points compared to 3Q 2025
•Book value per common share of $24.54 at December 31, 2025, increased $0.74 compared to 3Q 2025, and increased $3.23 when compared to 4Q 2024
◦Tangible book value per share(1) of $22.05, increased 3.4% (not annualized), or $0.72 as compared to 3Q 2025, and increased 15.5%, or $2.96 compared to 4Q 2024
•Return on average equity ("ROE") of 15.23% decreased 34 basis points compared to 3Q 2025, and return on average tangible common equity ("ROTCE")(1) of 17.23% decreased 26 basis points compared to 3Q 2025
◦Core ROE(1) of 15.23% increased 267 basis points compared to 3Q 2025 and Core ROTCE(1) of 17.23% increased 308 basis points compared to 3Q 2025
•Gross Loans(2) grew $137.5 million, or 19.3% (annualized), during 4Q 2025, and grew $329.3 million, or 12.5% from 4Q 2024
•Total deposits grew $180.9 million, or 24.6% (annualized), from 3Q 2025 and grew $331.0 million, or 12.0% from 4Q 2024
◦Customer Deposit3 growth of $41.8 million, or 6.2% (annualized) from 3Q 2025, and $287.4 million, or 11.8% from 4Q 2024
•Net interest income decreased $1.7 million, or 3.3% (not annualized) from 3Q 2025, mainly due to the $4.6 million of accretion during 3Q 2025 from refinancing callable brokered time deposits acquired in the IFH transaction, and increased $6.0 million, or 13.4% from 4Q 2024, primarily driven by growth from the Commercial Bank.
•Net Interest Margin ("NIM") of 5.94% decreased 42 bps compared to 3Q 2025 and increased 7 bps compared to 4Q 2024
◦Commercial Bank NIM(1) of 4.18% decreased by 46 bps (but increased 21 bps when excluding purchase accounting accretion ("PAA")), compared to 3Q 2025, and increased 19 bps, compared to 4Q 2024
◦4Q 2025 net PAA of $0.2 million, or 3 bps of NIM and 3 bps of Commercial Bank NIM(1), decreased $5.3 million, or 61 bps, compared to 3Q 2025.
•The allowance for credit losses to total loans ("ACL Coverage Ratio") equaled 1.85% at December 31, 2025, which represented a 3 bps decrease from September 30, 2025, and remained flat year-over-year.
◦The Commercial Bank ACL Coverage Ratio(1) equaled 1.65% at December 31, 2025, which represented a 5 bps decrease from 1.70% at both September 30, 2025 and December 31, 2024
•Fee Revenue (noninterest income) totaled $12.5 million, or 19.9% of total revenue for 4Q 2025, an increase of $1.4 million from 3Q 2025 primarily due to SBIC income, and increased $0.6 million from 4Q 2024
•Cash Dividend of $0.12 per share declared by the Board of Directors
•Shares repurchased and retired during the three months ended December 31, 2025, as part of the Company's stock repurchase program, totaled 304,288 shares at an average price of $28.12, for a total cost of $8.6 million
(1) As used in this press release, Core net income, Core ROA, Core ROE, ROTCE, Core ROTCE, Commercial Bank NIM, Commercial Bank ACL Coverage Ratio, and Tangible Book Value are non–U.S. generally accepted accounting principles ("GAAP") financial measures. These non-GAAP financial metrics excludes the impact of income from the call of brokered time deposits, merger-related expenses and other pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
(2) Gross loans represent portfolio loans receivable, net of deferred fees and costs.
(3) Customer Deposits represents total deposits excluding brokered deposits.
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Rockville, Maryland, January 26, 2026 (GLOBE NEWSWIRE) – Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported net income of $15.0 million, or $0.91 per diluted share, for 4Q 2025, compared to net income of $15.1 million, or $0.89 per diluted share, for 3Q 2025, and $7.5 million, or $0.45 per diluted share, for 4Q 2024. Core net income(1) for 4Q 2025 of $15.0 million, or $0.91 per diluted share, compared to $12.2 million, or $0.72 per diluted share in 3Q 2025, and $15.5 million, or $0.92 per diluted share, for 4Q 2024.
The Company also declared a cash dividend on its common stock of $0.12 per share. The dividend is payable on February 28, 2026 to shareholders of record on February 9, 2026.
“Our diversified business model continues to be a source of consistency and strength enabling us to perform at a high level in different market conditions" said Ed Barry, CEO of the Company. With the IFH integration behind us, our focus on executing our strategic plan remains our top priority. Our growth levers offer us a wide range of options on which we are capitalizing."
“We continue to demonstrate our ability to deliver meaningful growth in tangible book value per share and loans outstanding, and we are pleased that net interest margin has proven durable” said Steven J Schwartz, Chairman of the Company. “Our ongoing and planned investments in technology and human capital give me confidence that we are well-positioned to carry forward our strategy for profitable organic growth and to capitalize on opportunities that may arise for bolt-on and other acquisitions. Further, I expect our ongoing, opportunistic stock buyback program will, over time, prove to have been a wise use of our capital.”

Reconciliation of GAAP Net Income to Core (Non-GAAP) Net Income
The following table provides a reconciliation of the Company's net income under GAAP to core net income (non-GAAP) results excluding income from the call of brokered time deposits, merger-related expenses and other one-time non-recurring transactions.
Fourth Quarter 2025
Third Quarter 2025
(in thousands, except per share data)Income Before Income TaxesIncome Tax ExpenseNet IncomeDiluted Earnings per ShareIncome Before Income TaxesIncome Tax Expense (Benefit)Net IncomeDiluted Earnings per Share
GAAP Net Income$19,681 $4,644 $15,037 $0.91 $19,867 $4,802 $15,065 $0.89 
Deduct: Income from the Call of Brokered Time Deposits— — — (4,618)(1,129)(3,489)
Add: Merger-Related Expenses— — — 697 122 575 
Core Net Income(1)
$19,681 $4,644 $15,037 $0.91 $15,946 $3,795 $12,151 $0.72 
Year Ended December 31, 2025Year Ended December 31, 2024
(in thousands except per share data)Income Before Income TaxesIncome Tax Expense (Benefit)Net IncomeDiluted Earnings per ShareIncome Before Income TaxesIncome Tax Expense (Benefit)Net IncomeDiluted Earnings per Share
GAAP Net Income$74,944 $17,774 $57,170 $3.41 $41,832 $10,860 $30,972 $2.12 
Deduct: Income from the Call of Brokered Time Deposits(4,618)(1,129)(3,489)— — — 
Add: Merger-Related Expenses3,361 752 2,609 3,930 622 3,308 
Add: Non-recurring Equity and Debt Investment Write-Down— — — 2,620 — 2,620 
Add: Initial IFH ACL Provision— — — 4,194 1,025 3,169 
Core Net Income(1)
$73,687 $17,397 $56,290 $3.36 $52,576 $12,507 $40,069 $2.74 
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 the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
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Fourth Quarter 2025 Results
Earnings Summary
Net income of $15.0 million was flat compared to 3Q 2025, and earnings per share of $0.91 increased $0.02 per share from 3Q 2025. Net income increased $7.5 million, or 99.6%, from $7.5 million, or $0.45 per diluted share, for 4Q 2024. 4Q 2025 core net income(1) of $15.0 million, or $0.91 per diluted share, increased $2.9 million, or 18.1%, from 3Q 2025 core net income of $12.2 million, or $0.72 per diluted share. 4Q 2025 core net income decreased $0.4 million, or 2.8%, from 4Q 2024 core net income of $15.5 million, or $0.92 per diluted share.
•Net interest income of $50.3 million decreased $1.7 million, or 3.3% (not annualized), compared to 3Q 2025, and increased $6.0 million, or 13.4%, year-over-year.
◦During 3Q 2025 there were two non-recurring events that impacted net interest income.
▪The Bank identified Fee Revenue that was also previously recognized as Interest Income in the first and second quarter. As a result, the Bank recorded a one-time adjustment of $1.3 million of interest income ("Interest Income Adjustment"). There was no corresponding adjustment needed to Fee Revenue as the fee income was correctly recognized during those periods.
▪Also, the Bank issued a call of brokered time deposits acquired from the IFH transaction, resulting in the accelerated accretion of $4.6 million ("Call of Brokered Time Deposits").
▪When excluding the Call of Brokered Time Deposits and Interest Income Adjustment in 3Q 2025, net interest income increased $1.6 million, or 3.2%, from 3Q 2025.
◦Interest income of $68.6 million increased $3.7 million, or 5.8% (not annualized), over 3Q 2025, and increased $6.9 million, or 11.2%, year-over-year. When excluding the Interest Income Adjustment, interest income increased $2.4 million from 3Q 2025, driven by $0.8 million of growth from OpenSky™ and $1.6 million from the Commercial Bank, while the increase year-over-year was primarily driven by strong balance sheet growth and higher net PAA.
▪Interest income included $0.1 million from net PAA in 4Q 2025, compared to $0.2 million in 3Q 2025 and $0.7 million in net PAA in 4Q 2024.
◦Interest expense of $18.4 million increased $5.5 million, or 42.6% (not annualized), compared to 3Q 2025, and increased $1.0 million, or 5.6%, year-over-year. When excluding the Call of Brokered Time Deposits, interest expense increased $0.9 million, or 5.1%, compared to 3Q 2025, primarily driven by $0.5 million lower PAA and a $0.4 million increase from borrowings costs. The increase of $1.0 million year-over-year was primarily driven by $1.3 million of lower PAA offset by a $0.3 million shift in portfolio mix.
▪Interest expense included a $0.2 million benefit from net PAA in 4Q 2025, compared to a $5.3 million benefit in 3Q 2025, which included $4.6 million from the Call of Brokered Time Deposits. There was $1.4 million from net PAA in 4Q 2024.
•The 4Q 2025 provision for credit losses was $4.0 million, a decrease of $0.7 million from 3Q 2025. During the quarter, a $2.0 million credit to the allowance for credit losses was made to reflect recoveries resulting from the sale of $69.5 million charged-off OpenSky™ credit card receivables. Net charge-offs totaled $2.4 million, or 0.32% of portfolio loans (annualized), down from $2.5 million or 0.35% of portfolio loans (annualized), in 3Q 2025. Net charge-offs in the quarter include $1.9 million from the Commercial Bank and $0.5 million from OpenSky™ loans. Net charge-offs for the Commercial Bank increased $1.6 million from 3Q 2025 primarily driven by legacy Commercial Bank loans not previously provided for, and OpenSky™ net-charge-offs decreased $1.7 million from 3Q 2025 primarily driven by the sale of OpenSky™ credit card debt.
1 As used in this press release, Core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
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◦At December 31, 2025, the ACL Coverage Ratio was 1.85%, down 3 bps from September 30, 2025, and flat year-over-year.
•Fee Revenue of $12.5 million increased $1.4 million, compared to 3Q 2025 and increased $0.6 million year-over-year. During 4Q 2025, Core fee revenue(1) of $12.5 million increased $1.4 million as a result of a $1.2 million higher SBIC investment income and a $0.3 million increase in credit card fees from OpenSky™, offset by a $0.1 million decrease in loan servicing rights income. Year-over-year core fee revenue(1) decreased $2.1 million primarily due to a decrease in government lending revenue of $2.3 million offset by a $0.1 million increase from mortgage banking revenue and an increase of $0.1 million from service charges on deposits. Core fee revenue mix was 19.9% of total revenue for 4Q 2025, compared to 17.5% during 3Q 2025, and 24.7% during 4Q 2024.
•Noninterest expense of $39.1 million increased $0.7 million compared to 3Q 2025 and increased $1.6 million compared to 4Q 2024. Core noninterest expense(1) of $39.1 million increased $1.4 million compared to 3Q 2025 and increased $4.2 million compared to 4Q 2024. Core comparisons include:
◦The increase of $1.4 million quarter-over-quarter was primarily driven by professional fees including costs for investment in OpenSky™ initiatives and other investments in technology, offset by decreases from OpenSky™ marketing, occupancy & equipment from leases and software contracts, and data processing from Windsor™ and OpenSky™.
◦Year-over-year expense growth of $4.2 million was driven by professional fees associated with investments in shared services areas, personnel expense due to headcount growth, marketing expense from OpenSky™, and regulatory fees driven by the acquisition of IFH.
•Income tax expense of $4.6 million, or 23.6% of pre-tax income for 4Q 2025, decreased $0.2 million from $4.8 million, or 24.2% of pre-tax income for 3Q 2025. The effective income tax rate change quarter-over-quarter was primarily due to the $1.1 million utilization of a deferred tax asset related to the Call of Brokered Time Deposits during 3Q 2025.
◦The Core effective income tax rate(1) for 4Q 2025 and 3Q 2025 would have been 23.6% and 23.8%, respectively.
1 As used in this press release, Core fee revenue, Core noninterest expense, and Core effective income tax rate are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
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Balance Sheet
Total assets of $3.6 billion at December 31, 2025 increased $216.8 million from September 30, 2025. Total assets growth year-over-year was $399.3 million, or 12.5%.
•Gross Loans of $2.96 billion at December 31, 2025 increased $137.5 million, or 19.3% (annualized), from September 30, 2025 and increased $329.3 million, or 12.5%, year-over-year.
◦Compared to September 30, 2025, growth was primarily driven by $79.1 million from commercial and industrial ("C&I"), $25.7 million from residential real estate, $15.3 million from construction real estate, $9.5 million from lender finance, and $5.9 million from OpenSky™.
◦Compared to December 31, 2024, growth was primarily driven by $143.7 million from C&I, $77.3 million from residential real estate, $40.5 million from commercial real estate ("CRE"), $38.3 million from construction real estate, $14.6 million from OpenSky™, and $12.8 million from lender finance.
◦C&l loans, plus owner-occupied CRE loans totaled 37.7% of total portfolio loans at December 31, 2025, consistent with the prior quarter, and 37.8% at December 31, 2024.
•Total deposits of $3.09 billion at December 31, 2025 increased $180.9 million, or 24.6% (annualized), from September 30, 2025, and increased $331.0 million, or 12.0% (annualized) from December 31, 2024.
◦When excluding the increase in brokered time deposits of $139.1 million, customer deposits increased $41.8 million or 5.7% (annualized), including $116.0 million of growth in customer money market deposits, offset by a decrease of $49.5 million in customer time deposits, an $18.5 million decrease from interest-bearing demand accounts, a $5.0 million decrease from noninterest-bearing deposits, and a $1.2 million decrease from savings accounts.
◦The increase in total deposits of $331.0 million year-over-year was driven by $288.5 million in growth from customer money market deposits, $43.6 million from brokered time deposits, $41.6 million from noninterest-bearing deposits, $18.4 million from interest-bearing demand accounts, offset by a decrease of $59.2 million from customer time deposits, and $1.8 million from savings accounts.
◦Insured and protected1 deposits were approximately $2.1 billion as of December 31, 2025 representing 68.4% of the Company's deposit portfolio.
◦Low interest and noninterest-bearing DDA deposits of $1.1 billion, or 36.3% of deposits, decreased $24.7 million, or 8.6% (annualized) from 3Q 2025, but increased $58.1 million, or 5.5% year-over-year.
▪The average rate on the low interest and noninterest-bearing deposits was 0.14% for 4Q 2025, which remained flat compared to 3Q 2025 and year-over-year.
•The average portfolio loans-to-deposit ratio was 97.0% for 4Q 2025, compared to 95.6% for 3Q 2025, and 99.3% for 4Q 2024.
•The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $230.1 million, or 6.4% of total assets, an effective duration of 2.5 years, with U.S. Treasury Securities representing 60% of the overall investment portfolio at December 31, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio improved $1.0 million during the quarter to negative $5.8 million after-tax as of December 31, 2025, which represents 1.4% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio.
•Liquidity – The Company maintains stable and reliable sources of available borrowings, generally consistent with prior quarter. Sources of available borrowings at December 31, 2025 totaled $817.9 million, compared to $858.4 from 3Q 2025. During 4Q 2025, available collateralized lines of credit
1 Protected deposits includes deposits that are indirectly protected under the product terms.
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totaled $731.6 million, unsecured lines of credit with other banks totaled $76.0 million and unpledged investment securities available as collateral for potential additional borrowings totaled $9.3 million.
•Capital Positions – As of December 31, 2025, the Company reported a Common Equity Tier-1 capital ratio of 12.98%, compared to 13.54% at September 30, 2025. At December 31, 2025, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
◦Shares repurchased and retired during the three months ended December 31, 2025, as part of the Company's stock repurchase program, totaled 304,288 shares at an average price of $28.12, for a total cost of $8.6 million. As of December 31, 2025, there was $3.3 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on February 28, 2026.
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Financial Metrics
Net Interest Margin – NIM of 5.94% for 4Q 2025, decreased 42 bps compared to the prior quarter, and increased 7 bps year-over-year. Commercial Bank NIM(1) of 4.18% decreased 46 bps (but increased 21 bps when excluding PAA) compared to the prior quarter, and increased 19 bps year-over-year. Net PAA for 4Q 2025 was 3 bps for NIM and 3 bps for Commercial Bank NIM(1).
•3Q 2025 includes the previously mentioned $4.6 million Call of Brokered Time Deposits and $1.3 million Interest Income Adjustment. Excluding the Interest Income Adjustment and Call of Brokered Time Deposits in 3Q 2025, Commercial Bank NIM(1) declined to 4.18%, or 3 bps, in 4Q 2025.
•The average yield on interest earning assets of 8.10% increased 17 bps compared to the prior quarter and decreased 7 bps year-over-year. During 3Q 2025 there was a 16 bps impact from the Interest Income Adjustment. Excluding this item, the average yield in 3Q 2025 would have been 8.09%, which results in a increase of 1 bps compared to 3Q 2025. The decrease quarter-over-quarter was primarily a result of changes in the overall rate environment. The average yield decreased 7 bps year-over-year primarily due to changes in the overall rate environment.
◦The Commercial Bank Loan Yield(1) of 6.95% for 4Q 2025 increased 21 bps compared to 3Q 2025, and decreased 3 bps year-over-year. Excluding the Interest Income Adjustment impact, the average yield in 3Q 2025 would have been 6.94%, which remained flat compared to 3Q 2025.
•The total cost of deposits of 2.36% for 4Q 2025 increased 63 bps compared to the prior quarter and decreased 14 bps year-over-year. During 3Q 2025 there was a 63 bps impact from the Call of Brokered Time Deposits. Excluding this item, the cost of deposits for the quarter would have been 2.36%, and 4Q 2025 would have been consistent with 3Q 2025.
•The total cost of interest-bearing deposits increased 87 bps quarter-over-quarter, and decreased 19 bps year-over-year, to 3.28% for 4Q 2025. Excluding the Call of Brokered Time Deposits, the 3Q 2025 cost of interest-bearing deposits would have been 3.28%, and 4Q 2025 would have been consistent with 3Q 2025. The decrease year-over-year was due to a shift in product mix as well as a change in the rate environment.
•Net PAA of $0.2 million, or 3 bps of NIM and 3 bps of Commercial Bank NIM(1), during 4Q 2025, decreased $5.3 million from 3Q 2025 mainly due to the Call of Brokered Time Deposits. There was $0.7 million from net PAA during 4Q 2024.
•NIM for 2025 was 6.10%, a year-over-year decrease of 15 bps from 6.22% for 2024. The decrease was primarily driven by the acquisition of commercial loans from IFH, which diluted the impact from OpenSky™.
◦Commercial Bank NIM(1) for 2025 was 4.38%, a year-over-year increase of 45 bps from 3.93% for 2024 that was primarily driven by the acquisition of commercial loans from IFH and balance sheet growth from the Commercial Bank during 2025. Excluding the Call of Brokered Time Deposits and Interest Income Adjustment, Commercial Bank NIM(1) for 2025 would have been 4.27%, an increase of 34 bps year-over-year.
Fee Revenue Mix – The fee revenue mix was 19.9% of total revenue for 4Q 2025, compared to 17.5% during 3Q 2025, and 21.2% during 4Q 2024. The core fee revenue mix(1) was 19.9% for 4Q 2025, compared to 17.5% during 3Q 2025, and 24.7% during 4Q 2024.
Credit Metrics and Asset Quality – The ACL Coverage Ratio equaled 1.85% at December 31, 2025, a decrease of 3 bps from September 30, 2025, and remained flat year-over-year.
1 As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, Core fee revenue mix and Core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
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Nonperforming assets were $58.3 million or 1.62% of total assets at December 31, 2025, an increase of $6.0 million or 7 bps compared to September 30, 2025. The increase in nonperforming assets from 3Q 2025 was primarily driven by $3.9 million from OREO, or 5 bps, and $2.2 million from the acquired IFH portfolio, or 2 bps. Nonperforming assets increased $28.0 million or 67 bps year-over-year, mainly due to the $15.9 million increase during 3Q 2025 from two loan relationships acquired as part of the IFH transaction, described last quarter, $4.4 million from other changes in the acquired IFH portfolio, $3.9 million from OREO, and $3.8 million from the legacy Commercial Bank portfolio. At December 31, 2025, substandard loans totaled $58.5 million, or 2.0% of total portfolio loans, compared to $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025 and $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024. The $10.1 million year-over-year increase in substandard loans was primarily driven by the $15.9 million of loans described above. At December 31, 2025, special mention loans totaled $57.9 million, or 2.0% of total portfolio loans, compared to $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025, and $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024.
Efficiency Ratios – The efficiency ratio was 62.3% for 4Q 2025, compared to 60.8% for 3Q 2025 and 66.7% for 4Q 2024. The core efficiency ratio(1) was 62.3% for 4Q 2025, which decreased from 64.4% compared to the prior quarter, and increased from 59.3% for 4Q 2024.
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Financial Metrics (Continued)
Performance Ratios – ROA was 1.71% for 4Q 2025, compared to 1.77% for 3Q 2025, and 0.96% for 4Q 2024. Core ROA(1) for 4Q 2025 was 1.71%, compared to 1.43% for 3Q 2025, and 1.97% for 4Q 2024.
•ROE was 15.23% for 4Q 2025, compared to 15.57% for 3Q 2025, and 8.50% for 4Q 2024. Core ROE(1) was 15.23% for 4Q 2025, compared to 12.56% for 3Q 2025, and 17.46% for 4Q 2024.
•ROTCE(1) was 17.23% for 4Q 2025, compared to 17.49% for 3Q 2025, and 9.33% for 4Q 2024. Core ROTCE(1) for 4Q 2025 was 17.23%, compared to 14.15% for 3Q 2025, and 18.91% for 4Q 2024.
Book Value and Tangible Book Value – Book value per common share of $24.54 at December 31, 2025, increased $0.74 when compared to September 30, 2025, and increased $3.23 when compared to December 31, 2024. Tangible book value per common share(1) increased $0.72, or 3.4% (not annualized), to $22.05 at December 31, 2025 when compared to September 30, 2025, and increased $2.96, or 15.5%, when compared to December 31, 2024. Tangible book value(1) was impacted by the purchase accounting adjustments required as part of the IFH acquisition. Tangible book value per share(1) was equal to book value per share for periods prior to 4Q 2024.

1 As used in this press release, Core ROA, Core ROE, ROTCE, Core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
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Commercial Bank
Loan Growth – Portfolio loans(1) increased $129.6 million at December 31, 2025 compared to September 30, 2025, driven by $79.1 million from C&I, $25.7 million from residential real estate, and $15.3 million from construction real estate. Portfolio loans increased $327.8 million at December 31, 2025 compared to December 31, 2024, driven by $143.7 million from C&I, $77.3 million from residential real estate, and $40.5 million from CRE. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.
Net Interest Income – Interest income of $52.0 million increased $3.0 million from the prior quarter, primarily due to 3Q 2025, due to growth in the Commercial Bank loan portfolio during the quarter. Excluding the $1.3 million Interest Income Adjustment in 3Q 2025, interest income grew by $1.6 million from 3Q 2025. Interest expense of $18.2 million increased $5.5 million, primarily due to 3Q 2025 including a $4.6 million benefit from the Call of Brokered Time Deposits. The remaining $0.9 million increase was due to $0.5 million from lower PAA and $0.4 million from short term borrowings during 4Q 2025.
Credit Metrics – Nonperforming assets increased 8 bps to 1.71% of total assets at December 31, 2025 compared to September 30, 2025. Total nonaccrual loans at December 31, 2025 were $54.4 million, an increase of $2.2 million or 4.0% compared to $52.2 million at September 30, 2025.
Classified and Criticized Loans – At December 31, 2025, special mention loans totaled $57.9 million, or 2.0% of total portfolio loans, compared to $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025. At December 31, 2025, substandard loans totaled $58.5 million, or 2.0% of total portfolio loans, compared to $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025.

OpenSky™
Accounts – During 4Q 2025, credit card accounts of 585.5 thousand declined by 2.1 thousand, or 0.4% (not annualized) from September 30, 2025, and increased 32.9 thousand, or 6.0% year-over-year.
Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $142.4 million at December 31, 2025 increased by $5.9 million, or 4.3% (not annualized), compared to September 30, 2025 and $14.6 million, or 11.5%, year-over-year. Deposit balances of $163.2 million for 4Q 2025 decreased $3.7 million compared to 3Q 2025 and decreased $3.2 million, or 1.9% year-over-year. Gross unsecured loan balances of $61.4 million at December 31, 2025 increased $7.7 million, or 14.4% (not annualized), compared to $53.6 million at September 30, 2025, and increased $18.9 million year-over-year. Gross secured loan balances of $83.1 million at December 31, 2025 decreased $1.7 million, or 2.0% (not annualized), compared to $84.7 million at September 30, 2025, and decreased $4.2 million, or 4.8% (not annualized) year-over-year.
Net Interest Income – Interest income of $16.4 million increased $0.7 million compared to 3Q 2025. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $133.9 million for 4Q 2025, increased $4.8 million, or 3.7% (not annualized), compared to 3Q 2025.
Fee Revenue – Total fee revenue of $4.8 million increased $0.3 million from the prior quarter primarily driven by other credit-card related fees associated with the legacy product.
Noninterest Expense – Total noninterest expense of $14.6 million increased $0.6 million compared to 3Q 2025, driven primarily by professional fees associated with the legacy and unsecured products.
OpenSky™ Credit – Portfolio credit metrics continued to be consistent with modeled expectations during 4Q 2025. The provision for credit losses of $1.3 million decreased $1.5 million when compared to the prior quarter, primarily due to a $2.0 million credit to the allowance for credit losses was made to reflect the debt sale.
(1) Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.
10
OpenSky's™ unsecured loan product is offered exclusively to current and former secured card customers. Unsecured loans have been offered by OpenSky™ since the fourth quarter of 2021 and have generally performed in accordance with management expectations over that time period.

Capital Bank Home Loans
Originations of loans held for sale totaled $107.3 million during 4Q 2025, with $83.0 million of mortgage loans sold resulting in a gain on sale of loans of $2.1 million, representing a 2.58% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $80.7 million during 3Q 2025, with $66.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.7 million, representing a 2.56% gain on sale as a percentage of total loans sold.

Windsor Advantage™
Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of Capital Bank related servicing fees, during 4Q 2025. Gross government loan servicing revenue totaled $5.3 million, including $1.1 million of Capital Bank related servicing fees, during 3Q 2025. Windsor's™ total servicing portfolio was $3.1 billion at December 31, 2025, and $3.2 billion at September 30, 2025.
11
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
Quarter Ended4Q25 vs 3Q254Q25 vs 4Q24
(in thousands, except per share data)December 31, 2025September 30, 2025December 31, 2024$ Change% Change$ Change% Change
Earnings Summary
Interest income$68,634 $64,891 $61,707 $3,743 5.8 %$6,927 11.2 %
Interest expense18,355 12,871 17,380 5,484 42.6 %975 5.6 %
Net interest income50,279 52,020 44,327 (1,741)(3.3)%5,952 13.4 %
Provision for credit losses3,988 4,650 7,828 (662)(14.2)%(3,840)(49.1)%
(Release of) provision for credit losses on unfunded commitments(29)217 122 (246)(113.4)%(151)(123.8)%
Noninterest income12,464 11,068 11,913 1,396 12.6 %551 4.6 %
Noninterest expense39,103 38,354 37,514 749 2.0 %1,589 4.2 %
Income before income taxes19,681 19,867 10,776 (186)(0.9)%8,905 82.6 %
Income tax expense4,644 4,802 3,243 (158)(3.3)%1,401 43.2 %
Net income$15,037 $15,065 $7,533 $(28)(0.2)%$7,504 99.6 %
Pre-tax pre-provision net revenue ("PPNR") (1)
$23,640 $24,734 $18,726 $(1,094)(4.4)%$4,914 26.2 %
Core PPNR(1)
$23,640 $20,813 $23,961 $2,827 13.6 %$(321)(1.3)%
Common Share Data
Earnings per share - Basic$0.91 $0.91 $0.45 $— — %$0.46 102.2 %
Earnings per share - Diluted$0.91 $0.89 $0.45 $0.02 2.2 %$0.46 102.2 %
Core earnings per share - Diluted(1)
$0.91 $0.72 $0.92 $0.19 26.4 %$(0.01)(1.1)%
Weighted average common shares - Basic16,493 16,586 16,595 
Weighted average common shares - Diluted16,493 16,844 16,729 
Return Ratios
Return on average assets (annualized)1.71 %1.77 %0.96 %
Core return on average assets (annualized)(1)
1.71 %1.43 %1.97 %
Return on average equity (annualized)15.23 %15.57 %8.50 %
Core return on average equity (annualized)(1)
15.23 %12.56 %17.46 %
Return on average tangible common equity (annualized)(1)
17.23 %17.49 %9.33 %
Core return on average tangible common equity (annualized)(1)
17.23 %14.15 %18.91 %
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.



12
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)
Year Ended
December 31,
(in thousands, except per share data)20252024$ Change% Change
Earnings Summary
Interest income$260,871 $213,301 $47,570 22.3 %
Interest expense64,879 58,555 6,324 10.8 %
Net interest income195,992 154,746 41,246 26.7 %
Provision for credit losses14,965 17,720 (2,755)(15.5)%
(Release of) provision for credit losses on unfunded commitments188 385 (197)(51.2)%
Noninterest income49,187 31,410 17,777 56.6 %
Noninterest expense155,082 126,219 28,863 22.9 %
Income before income taxes74,944 41,832 33,112 79.2 %
Income tax expense17,774 10,860 6,914 63.7 %
Net income$57,170 $30,972 $26,198 84.6 %
Pre-tax pre-provision net revenue ("PPNR") (1)
$90,097 $59,937 $30,160 50.3 %
Core PPNR(1)
$88,840 $66,487 $22,353 33.6 %
Common Share Data
Earnings per share - Basic$3.45 $2.12 $1.33 62.7 %
Earnings per share - Diluted$3.41 $2.12 $1.29 60.8 %
Core earnings per share - Diluted(1)
$3.36 $2.74 
Weighted average common shares - Basic16,582 14,584 
Weighted average common shares - Diluted16,768 14,640 
Return Ratios
Return on average assets1.71 %1.21 %
Core return on average assets(1)
1.68 %1.57 %
Return on average equity15.13 %10.78 %
Core return on average equity(1)
14.90 %13.94 %
Return on average tangible common equity(1)
17.10 %11.07 %
Core return on average tangible common equity(1)
16.84 %14.30 %
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.

13
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)
Quarter EndedQuarter Ended
December 31,September 30,June 30,March 31,
(in thousands, except per share data)20252024% Change202520252025
Balance Sheet Highlights
Assets$3,606,207 $3,206,911 12.5 %$3,389,442 $3,388,662 $3,349,805 
Investment securities available-for-sale230,083 223,630 2.9 %232,640 228,923 213,452 
Mortgage loans held for sale25,828 17,063 51.4 %14,146 15,933 30,005 
Portfolio loans receivable (2)
2,959,457 2,630,163 12.5 %2,821,983 2,739,808 2,678,406 
Allowance for credit losses54,660 48,652 12.3 %53,045 47,447 48,454 
Goodwill25,969 21,126 22.9 %25,969 22,478 24,085 
Intangible assets13,246 14,072 (5.9)%13,457 13,668 13,861 
Core deposit intangibles1,525 1,745 (12.6)%1,576 1,627 1,695 
Deposits3,092,979 2,761,939 12.0 %2,912,053 2,940,738 2,891,333 
FHLB borrowings 50,000 22,000 127.3 %22,000 22,000 22,000 
Other borrowed funds2,062 12,062 (82.9)%12,062 12,062 12,062 
Total stockholders' equity401,978 355,139 13.2 %394,770 380,035 369,577 
Tangible common equity (1)
361,238 318,196 13.5 %353,768 342,262 329,936 
Common shares outstanding16,381 16,663 (1.7)%16,589 16,582 16,657 
Book value per share$24.54 $21.31 15.2 %$23.80 $22.92 $22.19 
Tangible book value per share (1)
$22.05 $19.10 15.4 %$21.33 $20.64 $19.81 
Dividends per share
$0.12 $0.10 20.0 %$0.12 $0.10 $0.10 
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Loans are reflected net of deferred fees and costs.
14
Consolidated Statements of Income (Unaudited)
Three Months Ended
Year Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024December 31, 2025December 31, 2024
Interest income
Loans, including fees$64,933 $60,838 $60,810 $58,691 $58,602 $245,272 $202,915 
Investment securities available-for-sale1,728 1,805 1,582 1,861 1,539 6,976 5,441 
Federal funds sold and other1,973 2,248 2,194 2,208 1,566 8,623 4,945 
Total interest income68,634 64,891 64,586 62,760 61,707 260,871 213,301 
Interest expense
Deposits17,805 12,732 16,722 16,512 16,385 63,771 56,170 
Borrowed funds550 139 218 201 995 1,108 2,385 
Total interest expense18,355 12,871 16,940 16,713 17,380 64,879 58,555 
Net interest income50,279 52,020 47,646 46,047 44,327 195,992 154,746 
Provision for credit losses3,988 4,650 4,081 2,246 7,828 14,965 17,720 
(Release of) provision for credit losses on unfunded commitments(29)217 — — 122 188 385 
Net interest income after provision for credit losses46,320 47,153 43,565 43,801 36,377 180,839 136,641 
Noninterest income
Service charges on deposits371 425 262 258 241 1,316 883 
Credit card fees4,837 4,509 4,298 3,722 3,733 17,366 15,999 
Mortgage banking revenue1,960 1,927 1,754 1,831 1,821 7,472 7,146 
Government lending revenue— 14 3,112 1,096 2,301 4,222 2,301 
Government loan servicing revenue4,036 4,265 3,644 3,568 3,993 15,513 3,993 
Loan servicing rights (government guaranteed)295 368 (590)472 1,013 545 1,013 
Non-recurring equity and debt investment write-down— — — — (2,620)— (2,620)
Other income965 (440)626 1,602 1,431 2,753 2,695 
Total noninterest income12,464 11,068 13,106 12,549 11,913 49,187 31,410 
Noninterest expenses
Salaries and employee benefits17,914 17,728 18,460 18,067 16,513 72,169 56,037 
Occupancy and equipment2,638 2,849 2,995 2,910 2,976 11,392 8,244 
Professional fees4,294 2,131 2,422 2,112 2,150 10,959 7,846 
Data processing7,502 7,654 7,520 7,112 7,210 29,788 27,689 
Advertising1,398 1,714 1,371 1,779 1,032 6,262 6,359 
Loan processing1,152 1,114 979 743 969 3,988 2,431 
Foreclosed real estate expenses, net— — — 1 — 1 2 
Merger-related expenses— 697 1,398 1,266 2,615 3,361 3,930 
Operational and other card fraud related losses750 923 933 903 993 3,509 3,714 
Regulatory assessment expenses858 740 884 889 554 3,371 1,937 
Other operating2,597 2,804 2,610 2,271 2,502 10,282 8,030 
Total noninterest expenses39,103 38,354 39,572 38,053 37,514 155,082 126,219 
Income before income taxes19,681 19,867 17,099 18,297 10,776 74,944 41,832 
Income tax expense4,644 4,802 3,963 4,365 3,243 17,774 10,860 
Net income$15,037 $15,065 $13,136 $13,932 $7,533 $57,170 $30,972 
15
Consolidated Balance Sheets
(unaudited)(unaudited)(unaudited)(unaudited)(audited)
(in thousands, except share data)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Assets
Cash and due from banks$30,894 $25,724 $26,843 $27,836 $25,433 
Interest-bearing deposits at other financial institutions224,611 163,078 247,704 266,092 179,841 
Federal funds sold60 59 59 59 58 
Total cash and cash equivalents255,565 188,861 274,606 293,987 205,332 
Investment securities available-for-sale230,083 232,640 228,923 213,452 223,630 
Restricted investments8,397 7,057 7,043 7,031 4,479 
Loans held for sale25,828 14,146 15,933 30,005 17,063 
Portfolio loans receivable, net of deferred fees and costs2,959,457 2,821,983 2,739,808 2,678,406 2,630,163 
   Less allowance for credit losses(54,660)(53,045)(47,447)(48,454)(48,652)
Total portfolio loans held for investment, net2,904,797 2,768,938 2,692,361 2,629,952 2,581,511 
Premises and equipment, net15,072 15,304 14,863 15,085 15,525 
Accrued interest receivable16,695 19,011 15,149 19,458 16,664 
Goodwill25,969 25,969 22,478 24,085 21,126 
Intangible assets13,246 13,457 13,668 13,861 14,072 
Core deposit intangibles1,525 1,576 1,627 1,695 1,745 
Loan servicing assets1,816 2,070 2,221 2,244 5,511 
Deferred tax asset14,992 14,885 15,667 15,902 16,670 
Bank owned life insurance45,488 45,105 44,721 44,335 43,956 
Other assets46,734 40,423 39,402 38,713 39,627 
Total assets$3,606,207 $3,389,442 $3,388,662 $3,349,805 $3,206,911 
Liabilities
Deposits
Noninterest-bearing$852,520 $857,543 $836,979 $812,224 $810,928 
Interest-bearing2,240,459 2,054,510 2,103,759 2,079,109 1,951,011 
Total deposits3,092,979 2,912,053 2,940,738 2,891,333 2,761,939 
Federal Home Loan Bank advances50,000 22,000 22,000 22,000 22,000 
Other borrowed funds2,062 12,062 12,062 12,062 12,062 
Accrued interest payable8,745 8,045 8,158 9,995 9,393 
Other liabilities50,443 40,512 25,669 44,838 46,378 
Total liabilities3,204,229 2,994,672 3,008,627 2,980,228 2,851,772 
Stockholders' equity
Common stock164 166 166 167 167 
Additional paid-in capital120,913 127,359 126,888 128,692 128,598 
Retained earnings286,661 274,041 261,093 249,925 237,843 
Accumulated other comprehensive loss(5,760)(6,796)(8,112)(9,207)(11,469)
Total stockholders' equity401,978 394,770 380,035 369,577 355,139 
Total liabilities and stockholders' equity$3,606,207 $3,389,442 $3,388,662 $3,349,805 $3,206,911 
16
The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.
Three Months Ended
December 31, 2025		Three Months Ended
September 30, 2025		Three Months Ended
December 31, 2024
Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits$196,281 $1,868 3.78 %$194,858 $2,139 4.36 %$140,206 $1,446 4.10 %
Federal funds sold60 1 6.61 59 1 5.79 58 — — 
Investment securities available-for-sale238,295 1,728 2.88 241,086 1,805 2.97 236,951 1,539 2.58 
Restricted investments6,725 104 6.14 7,052 108 6.06 7,292 120 6.55 
Loans held for sale 17,118 263 6.10 13,783 228 6.57 25,614 193 3.00 
Portfolio loans receivable(2)(3)
2,902,033 64,670 8.84 2,789,815 60,610 8.62 2,592,960 58,409 8.96 
Total interest earning assets3,360,512 68,634 8.10 3,246,653 64,891 7.93 3,003,081 61,707 8.17 
Noninterest earning assets138,028 131,643 117,026 
Total assets
$3,498,540 $3,378,296 $3,120,107 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts$269,342 366 0.54 $282,873 388 0.54 $257,446 424 0.66 
Savings12,033 11 0.36 12,887 15 0.47 13,497 20 0.59 
Money market accounts1,061,293 9,124 3.41 985,106 8,650 3.48 763,526 7,131 3.72 
Time deposits812,186 8,304 4.06 815,302 3,679 1.79 847,618 8,810 4.13 
Borrowed funds46,497 550 4.69 34,062 139 1.62 97,116 995 4.08 
Total interest-bearing liabilities2,201,351 18,355 3.31 2,130,230 12,871 2.40 1,979,203 17,380 3.49 
Noninterest-bearing liabilities:
Noninterest-bearing liabilities67,509 43,245 58,460 
Noninterest-bearing deposits837,930 820,899 729,907 
Stockholders’ equity
391,750 383,922 352,537 
Total liabilities and stockholders’ equity$3,498,540 $3,378,296 $3,120,107 
Net interest spread4.79 %5.53 %4.68 %
Net interest income$50,279 $52,020 $44,327 
Net interest margin(4)
5.94 %6.36 %5.87 %
_______________
(1)Annualized.
(2)Includes nonaccrual loans.
(3)For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, collectively, Commercial Bank Loan Yield was 6.95%, 6.74% and 6.98%, respectively.
(4)For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, collectively, Commercial Bank Net Interest Margin was 4.18%, 4.64% and 3.99%, respectively.

17
Year Ended December 31,
20252024
Average
Outstanding
Balance		Interest Income/
Expense		Average
Yield/
Rate		Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits$194,080 $8,211 4.23 %$98,319 $4,569 4.65 %
Federal funds sold59 2 3.39 57 3 5.26 
Investment securities available-for-sale236,346 6,976 2.95 228,909 5,441 2.38 
Restricted investments6,648 410 6.17 5,563 373 6.71 
Loans held for sale 12,576 892 7.09 12,121 569 4.69 
Portfolio loans receivable(1)(2)
2,765,758 244,380 8.84 2,142,638 202,346 9.44 
Total interest earning assets3,215,467 260,871 8.11 2,487,607 213,301 8.57 
Noninterest earning assets133,207 66,442 
Total assets$3,348,674 $2,554,049 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts$269,224 $1,513 0.56 %$221,437 $1,003 0.45 %
Savings12,789 60 0.47 6,732 27 0.40 
Money market accounts960,882 33,195 3.45 704,002 28,741 4.08 
Time deposits825,847 29,003 3.51 561,369 26,399 4.70 
Borrowed funds37,196 1,108 2.98 63,686 2,385 3.74 
Total interest-bearing liabilities2,105,938 64,879 3.08 1,557,226 58,555 3.76 
Noninterest-bearing liabilities:
Noninterest-bearing liabilities53,197 34,043 
Noninterest-bearing deposits811,798 675,360 
Stockholders’ equity377,741 287,420 
Total liabilities and stockholders’ equity$3,348,674 $2,554,049 
Net interest spread5.03 %4.81 %
Net interest income$195,992 $154,746 
Net interest margin(3)
6.10 %6.22 %
(1)Includes nonaccrual loans.
(2)For the years ended December 31, 2025 and 2024, collectively. Commercial Bank Loan Yield was 6.99% and 7.03%, respectively.
(3)For the years ended December 31, 2025 and 2024, collectively. Commercial Bank Net Interest Margin was 4.38% and 3.93%, respectively.



18
The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, OpenSky™ (the Company’s credit card division), Windsor Advantage™ and Capital Bank Home Loans (the Company’s mortgage loan division).

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

The following schedules reported internally for performance assessment by the chief operating decision maker presents financial information for each reportable segment for the periods indicated. Total assets are presented as of December 31, 2025, September 30, 2025, and December 31, 2024.

Segments
For the three months ended December 31, 2025
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income$51,994 $16,377 $— $263 $68,634 
Interest expense18,230 — — 125 18,355 
Net interest income33,764 16,377 — 138 50,279 
Provision for credit losses2,715 1,273 — — 3,988 
Release of credit losses on unfunded commitments(29)— — — (29)
Net interest income after provision31,078 15,104 — 138 46,320 
Noninterest income
Service charges on deposits371 — — — 371 
Credit card fees— 4,837 — — 4,837 
Mortgage banking revenue433 — — 1,527 1,960 
Government lending revenue— — — — — 
Government loan servicing revenue(1)
(952)— 4,988 — 4,036 
Loan servicing rights (government guaranteed)295 — — — 295 
Other income698 10 — 257 965 
Total noninterest income845 4,847 4,988 1,784 12,464 
Noninterest expenses
Salaries and employee benefits
11,071 3,038 2,425 1,380 17,914 
Occupancy and equipment1,773 688 40 137 2,638 
Professional fees3,047 947 53 247 4,294 
Data processing1,026 6,687 (165)(46)7,502 
Advertising608 634 (3)159 1,398 
Loan processing101 475 163 413 1,152 
Foreclosed real estate expenses, net— — — — — 
Merger-related expenses— — — — — 
Operational and other card fraud related losses13 737 — — 750 
Regulatory assessment expenses230 388 143 97 858 
Other operating639 966 763 229 2,597 
Total noninterest expenses18,508 14,560 3,419 2,616 39,103 
Net income (loss) before taxes$13,415 $5,391 $1,569 $(694)$19,681 
Total assets$3,407,326 $140,914 $25,993 $31,974 $3,606,207 
________________________
(1)     Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended December 31, 2025.
19
Segments
For the three months ended September 30, 2025
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income(2)
$49,035 $15,628 $— $228 $64,891 
Interest expense(3)
12,768 — — 103 12,871 
Net interest income36,267 15,628 — 125 52,020 
Provision for credit losses1,852 2,798 — — 4,650 
Provision for credit losses on unfunded commitments217 — — — 217 
Net interest income after provision34,198 12,830 — 125 47,153 
Noninterest income
Service charges on deposits425 — — — 425 
Credit card fees— 4,509 — — 4,509 
Mortgage banking revenue315 — — 1,612 1,927 
Government lending revenue14 — — — 14 
Government loan servicing revenue(1)
(1,074)— 5,339 — 4,265 
Loan servicing rights (government guaranteed)368 — — — 368 
Other (loss) income(557)(33)— 150 (440)
Total noninterest income(509)4,476 5,339 1,762 11,068 
Noninterest expenses
Salaries and employee benefits
10,559 3,271 2,455 1,443 17,728 
Occupancy and equipment1,635 632 416 166 2,849 
Professional fees1,079 571 198 283 2,131 
Data processing350 7,154 97 53 7,654 
Advertising694 833 76 111 1,714 
Loan processing740 15 67 292 1,114 
Foreclosed real estate expenses, net— — — — — 
Merger-related expenses697 — — — 697 
Operational and other card fraud related losses— 923 — — 923 
Regulatory assessment expenses788 (30)(11)(7)740 
Other operating1,493 587 614 110 2,804 
Total noninterest expenses18,035 13,956 3,912 2,451 38,354 
Net income (loss) before taxes$15,654 $3,350 $1,427 $(564)$19,867 
Total assets$3,213,222 $134,422 $21,743 $20,055 $3,389,442 
________________________
(1)     Gross government loan servicing revenue totaled $5.3 million, including $1.1 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended September 30, 2025
(2)     Interest income of $52.0 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.
(3)     Interest expense of $12.8 million for the Commercial Bank includes the $4.6 million Call of Brokered Time Deposits.

20
Segments
For the three months ended December 31, 2024
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income$46,061 $15,454 $— $192 $61,707 
Interest expense17,249 — — 131 17,380 
Net interest income28,812 15,454 — 61 44,327 
Provision for credit losses6,651 1,177 — — 7,828 
Provision for credit losses on unfunded commitments122 — — — 122 
Net interest income after provision22,039 14,277 — 61 36,377 
Noninterest income
Service charges on deposits241 — — — 241 
Credit card fees— 3,733 — — 3,733 
Mortgage banking revenue284 — — 1,537 1,821 
Government lending revenue2,301 — — — 2,301 
Government loan servicing revenue(1)
(543)— 4,536 — 3,993 
Loan servicing rights (government guaranteed1,013 — — — 1,013 
Non-recurring equity and debt investment write-down(2,620)— — — (2,620)
Other income1,252 10 30 139 1,431 
Total noninterest income1,928 3,743 4,566 1,676 11,913 
Noninterest expense
Salaries and employee benefits
10,383 2,985 1,662 1,483 16,513 
Occupancy and equipment1,655 617 537 167 2,976 
Professional fees914 845 123 268 2,150 
Data processing639 6,495 32 44 7,210 
Advertising767 79 106 80 1,032 
Loan processing754 14 3 198 969 
Foreclosed real estate expenses, net— — — — — 
Merger-related expenses2,615 — — — 2,615 
Operational and other card fraud related losses24 969 — — 993 
Regulatory assessment expenses525 21 1 6 553 
Other operating1,596 570 206 131 2,503 
Total noninterest expenses19,872 12,595 2,670 2,377 37,514 
Net income (loss) before taxes$4,095 $5,425 $1,896 $(640)$10,776 
Total assets$3,033,792 $125,913 $25,515 $21,691 $3,206,911 
________________________
(1)     Gross government loan servicing revenue totaled $4.5 million, including $0.5 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended December 31, 2024.


21

Segments
For the year ended December 31, 2025
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income(3)
$199,122 $60,943 $— $806 $260,871 
Interest expense(4)
64,503 — — 376 64,879 
Net interest income134,619 60,943 — 430 195,992 
Provision for credit losses6,172 8,793 — — 14,965 
Release of credit losses on unfunded commitments188 — — — 188 
Net interest income after provision128,259 52,150 — 430 180,839 
Noninterest income
Service charges on deposits1,316 — — — 1,316 
Credit card fees— 17,366 — — 17,366 
Mortgage banking revenue1,476 — — 5,996 7,472 
Government lending revenue4,222 — — — 4,222 
Government loan servicing revenue(1)
(4,116)— 19,629 — 15,513 
Loan servicing rights (government guaranteed)(2)
545 — — — 545 
Other income1,913 13 — 827 2,753 
Total noninterest income5,356 17,379 19,629 6,823 49,187 
Noninterest expenses
Salaries and employee benefits
43,346 13,057 9,795 5,971 72,169 
Occupancy and equipment6,888 2,381 1,535 588 11,392 
Professional fees6,849 2,661 442 1,007 10,959 
Data processing2,270 27,320 118 80 29,788 
Advertising2,815 2,811 212 424 6,262 
Loan processing1,968 533 291 1,196 3,988 
Foreclosed real estate expenses, net1 — — — 1 
Merger-related expenses3,361 — — — 3,361 
Operational and other card fraud related losses144 3,365 — — 3,509 
Regulatory assessment expenses2,743 388 143 97 3,371 
Other operating5,357 2,407 1,985 533 10,282 
Total noninterest expenses75,742 54,923 14,521 9,896 155,082 
Net income (loss) before taxes$57,873 $14,606 $5,108 $(2,643)$74,944 
Total assets$3,407,326 $140,914 $25,993 $31,974 $3,606,207 
________________________
(1)     Gross government loan servicing revenue totaled $19.6 million, including $4.1 million of servicing fees earned from the Commercial Bank by WindsorTM, for the year ended December 31, 2025.
(2)    Loan servicing rights of $0.5 million for the Commercial Bank includes a $1.7 million fair value adjustment associated with the loan servicing portfolio.
(3)    Interest income of $199.1 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.
(4)     Interest expense of $64.5 million for the Commercial Bank includes the $4.6 million Call of Brokered Time Deposits.


22
Segments
For the year ended December 31, 2024
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income$150,948 $61,785 $— $568 $213,301 
Interest expense58,192 — — 363 58,555 
Net interest income92,756 61,785 — 205 154,746 
Provision for credit losses10,391 7,329 — — 17,720 
Provision for credit losses on unfunded commitments385 — — — 385 
Net interest income after provision81,980 54,456 — 205 136,641 
Noninterest income
Service charges on deposits883 — — — 883 
Credit card fees— 15,999 — — 15,999 
Mortgage banking revenue1,072 — — 6,074 7,146 
Government lending revenue2,301 — — — 2,301 
Government loan servicing revenue(1)
(543)— 4,536 — 3,993 
Loan servicing rights (government guaranteed)1,013 — — — 1,013 
Non-recurring equity and debt investment write-down(2,620)— — — (2,620)
Other income1,932 123 30 610 2,695 
Total noninterest income4,038 16,122 4,566 6,684 31,410 
Noninterest expenses
Salaries and employee benefits
36,229 12,156 1,662 5,990 56,037 
Occupancy and equipment5,085 2,035 537 587 8,244 
Professional fees3,575 3,183 123 965 7,846 
Data processing1,496 25,991 32 170 27,689 
Advertising1,982 3,944 106 327 6,359 
Loan processing1,517 59 3 852 2,431 
Foreclosed real estate expenses, net2 — — — 2 
Merger-related expenses3,930 — — — 3,930 
Operational and other card fraud related losses37 3,677 — — 3,714 
Regulatory assessment expenses1,909 21 1 6 1,937 
Other operating5,165 2,179 206 480 8,030 
Total noninterest expenses60,927 53,245 2,670 9,377 126,219 
Net income (loss) before taxes$25,091 $17,333 $1,896 $(2,488)$41,832 
Total assets$3,033,792 $125,913 $25,515 $21,691 $3,206,911 
________________________
(1)     Gross government loan servicing revenue totaled $4.5 million, including $0.5 million of servicing fees earned from the Commercial Bank by WindsorTM, for the year ended December 31, 2024.








23

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
Quarter Ended
(in thousands, except per share data)December 31,
2025		September 30, 2025June 30,
2025		March 31,
2025		December 31,
2024
Earnings:
Net income$15,037 $15,065 $13,136 $13,932 $7,533 
Earnings per common share, diluted0.91 0.89 0.78 0.82 0.45 
Net interest margin5.94 %6.36 %6.04 %6.05 %5.87 %
Commercial Bank net interest margin(2)
4.18 %4.64 %4.38 %4.32 %3.99 %
Return on average assets(1)
1.71 %1.77 %1.60 %1.75 %0.96 %
Return on average equity(1)
15.23 %15.57 %14.17 %15.56 %8.50 %
Efficiency ratio62.32 %60.79 %65.14 %64.94 %66.70 %
Balance Sheet:
Total portfolio loans receivable, net deferred fees$2,959,457 $2,821,983 $2,739,808 $2,678,406 $2,630,163 
Total deposits3,092,979 2,912,053 2,940,738 2,891,333 2,761,939 
Total assets3,606,207 3,389,442 3,388,662 3,349,805 3,206,911 
Total stockholders' equity401,978 394,770 380,035 369,577 355,139 
Total average portfolio loans receivable, net deferred fees2,902,033 2,789,815 2,733,865 2,634,110 2,592,960 
Total average deposits2,992,784 2,917,067 2,841,153 2,768,284 2,611,994 
Portfolio loans-to-deposit ratio (period-end balances)95.68 %96.91 %93.17 %92.64 %95.23 %
Portfolio loans-to-deposit ratio (average balances)96.97 %95.64 %96.22 %95.15 %99.27 %
Asset Quality Ratios:
Nonperforming assets to total assets1.62 %1.54 %1.07 %1.28 %0.94 %
Nonperforming loans to total loans1.84 %1.85 %1.32 %1.60 %1.15 %
Net charge-offs to average portfolio loans (1)
0.32 %0.35 %0.75 %0.38 %0.37 %
Allowance for credit losses to total loans1.85 %1.88 %1.73 %1.81 %1.85 %
Allowance for credit losses to non-performing loans100.44 %101.53 %131.19 %112.86 %160.88 %
Bank Capital Ratios:
Total risk based capital ratio12.60 %12.95 %13.13 %12.93 %12.79 %
Tier-1 risk based capital ratio11.34 %11.69 %11.87 %11.67 %11.54 %
Leverage ratio9.24 %9.34 %9.39 %9.27 %9.17 %
Common Equity Tier-1 capital ratio11.34 %11.69 %11.87 %11.67 %11.54 %
Tangible common equity8.75 %9.06 %8.84 %8.66 %9.31 %
Holding Company Capital Ratios:
Total risk based capital ratio14.31 %15.25 %15.30 %14.97 %15.48 %
Tier-1 risk based capital ratio13.05 %13.62 %13.66 %13.32 %13.83 %
Leverage ratio10.72 %10.98 %10.90 %10.68 %11.07 %
Common Equity Tier-1 capital ratio12.98 %13.54 %13.58 %13.24 %13.74 %
Tangible common equity10.08 %10.60 %10.22 %9.94 %11.07 %
_______________
(1)Annualized.
(2)Refer to Appendix for reconciliation of non-GAAP measures.

24

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (Continued)
Quarter Ended
(in thousands, except per share data)December 31,
2025		September 30, 2025June 30,
2025		March 31,
2025		December 31,
2024
Composition of Loans:
Commercial real estate, non owner-occupied$533,141 $509,878 $495,341 $484,399 $471,329 
Commercial real estate, owner-occupied418,701 442,827 436,421 420,643 440,026 
Residential real estate765,808 740,060 710,730 693,597 688,552 
Construction real estate359,566 344,290 343,189 343,280 321,252 
Commercial and industrial698,289 619,148 593,279 594,331 554,550 
Lender finance41,421 31,883 32,494 23,165 28,574 
Business equity lines of credit3,818 2,931 2,853 3,468 3,090 
Credit card, net of reserve(3)
142,397 136,483 131,029 118,709 127,766 
Other consumer loans1,930 2,010 2,727 2,200 2,089 
Portfolio loans receivable$2,965,071 $2,829,510 $2,748,063 $2,683,792 $2,637,228 
Deferred origination fees, net(5,614)(7,527)(8,255)(5,386)(7,065)
Portfolio loans receivable, net$2,959,457 $2,821,983 $2,739,808 $2,678,406 $2,630,163 
Composition of Deposits:
Noninterest-bearing$852,520 $857,543 $836,979 $812,224 $810,928 
Interest-bearing demand257,233 275,767 319,431 296,455 238,881 
Savings11,679 12,835 12,879 12,819 13,488 
Money markets1,105,183 989,159 960,237 912,418 816,708 
Customer time deposits489,687 539,207 541,079 549,630 548,901 
Brokered time deposits376,677 237,542 270,133 307,787 333,033 
Total deposits$3,092,979 $2,912,053 $2,940,738 $2,891,333 $2,761,939 
Capital Bank Home Loan Metrics:
Origination of loans held for sale$107,283 $80,651 $80,334 $65,815 $89,998 
Mortgage loans sold82,998 66,409 59,663 54,144 77,399 
Gain on sale of loans2,145 1,698 1,597 1,664 1,897 
Purchase volume as a % of originations72.77 %92.32 %91.61 %90.73 %90.42 %
Gain on sale as a % of loans sold(4)
2.58 %2.56 %2.68 %3.07 %2.45 %
Mortgage commissions$899 $656 $501 $545 $620 
OpenSky™ Portfolio Metrics:
Open customer accounts585,492 587,641 585,372 563,718 552,566 
Secured credit card loans, gross$83,065 $84,737 $86,400 $81,252 $87,226 
Unsecured credit card loans, gross61,378 53,633 46,352 38,987 42,430 
Noninterest secured credit card deposits163,184 166,874 168,936 168,796 166,355 
_______________
(3)Credit card loans are presented net of reserve for interest and fees.
(4)Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.
25

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.
26

Appendix

Reconciliation of Non-GAAP Measures




Core Earnings MetricsQuarter Ended
(in thousands, except per share data)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Net Income$15,037 $15,065 $13,136 $13,932 $7,533 
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax— (3,489)— — — 
Add: Merger-Related Expenses, Net of Tax— 575 1,070 964 2,151 
Add: Non-Recurring Equity and Debt Investment Write-Down— — — — 2,620 
Add: IFH ACL Provision, Net of Tax— — — — 3,169 
Core Net Income$15,037 $12,151 $14,206 $14,896 $15,473 
Weighted Average Common Shares - Diluted16,493 16,844 16,802 16,925 16,729 
Earnings per Share - Diluted$0.91 $0.89 $0.78 $0.82 $0.45 
Core Earnings per Share - Diluted$0.91 $0.72 $0.85 $0.88 $0.92 
Average Assets$3,498,540 $3,378,296 $3,292,533 $3,221,964 $3,120,107 
Return on Average Assets(1)
1.71 %1.77 %1.60 %1.75 %0.96 %
Core Return on Average Assets(1)
1.71 %1.43 %1.73 %1.87 %1.97 %
Average Equity$391,750 $383,922 $371,795 $363,115 $352,537 
Return on Average Equity(1)
15.23 %15.57 %14.17 %15.56 %8.50 %
Core Return on Average Equity(1)
15.23 %12.56 %15.33 %16.64 %17.46 %
Net Interest Income$50,279 $52,020 $47,646 $46,047 $44,327 
Noninterest Income12,464 11,068 13,106 12,549 11,913 
Total Revenue$62,743 $63,088 $60,752 $58,596 $56,240 
Noninterest Expense39,103 38,354 39,572 38,053 37,514 
Efficiency Ratio(2)
62.3 %60.8 %65.1 %64.9 %66.7 %
Net Interest Income$50,279 $52,020 $47,646 $46,047 $44,327 
Less: Brokered Time Deposit Call— 4,618 — — — 
Core Net Interest Income (a)$50,279 $47,402 $47,646 $46,047 $44,327 
Noninterest Income12,464 11,068 13,106 12,549 11,913 
Add: Non-Recurring Equity and Debt Investment Write-Down— — — — 2,620 
Core Fee Revenue (b)$12,464 $11,068 $13,106 $12,549 $14,533 
Core Revenue (a) + (b)$62,743 $58,470 $60,752 $58,596 $58,860 
Noninterest Expense$39,103 $38,354 $39,572 $38,053 $37,514 
Less: Merger-Related Expenses— 697 1,398 1,266 2,615 
Core Noninterest Expense$39,103 $37,657 $38,174 $36,787 $34,899 
Core Efficiency Ratio(2)
62.3 %64.4 %62.8 %62.8 %59.3 %
_______________
(1)Annualized.
(2)The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).


27

Appendix

Reconciliation of Non-GAAP Measures



Core Earnings MetricsYear Ended
(in thousands, except per share data)December 31, 2025December 31, 2024
Net Income$57,170 $30,972 
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax(3,489)— 
Add: Merger-Related Expenses, Net of Tax2,609 3,308 
Add: Non-Recurring Equity and Debt Investment Write-Down— 2,620 
Add: IFH ACL Provision, Net of Tax— 3,169 
Core Net Income$56,290 $40,069 
Weighted Average Common Shares - Diluted16,768 14,640 
Earnings per Share - Diluted$3.41 $2.12 
Core Earnings per Share - Diluted$3.36 $2.74 
Average Assets$3,348,674 $2,554,049 
Return on Average Assets1.71 %1.21 %
Core Return on Average Assets1.68 %1.57 %
Average Equity$377,741 $287,420 
Return on Average Equity15.13 %10.78 %
Core Return on Average Equity14.90 %13.94 %
Net Interest Income$195,992 $154,746 
Noninterest Income49,187 31,410 
Total Revenue$245,179 $186,156 
Noninterest Expense155,082 126,219 
Efficiency Ratio(1)
63.3 %67.8 %
Net Interest Income$195,992 $154,746 
Less: Brokered Time Deposit Call4,618 — 
Core Net Interest Income (a)$191,374 $154,746 
Noninterest Income49,187 31,410 
Add: Non-Recurring Equity and Debt Investment Write-Down— 2,620 
Core Fee Revenue (b)$49,187 $34,030 
Core Revenue (a) + (b)$240,561 $188,776 
Noninterest Expense$155,082 $126,219 
Less: Merger-Related Expenses3,361 3,930 
Core Noninterest Expense$151,721 $122,289 
Core Efficiency Ratio(1)
63.1 %64.8 %
_______________
(1)The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).
28

Appendix

Reconciliation of Non-GAAP Measures




Commercial Bank Net Interest MarginQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Commercial Bank Net Interest Income$33,764 $36,267 $33,073 $31,515 $28,812 
Average Interest Earning Assets3,360,576 3,246,653 3,163,421 3,087,943 3,003,081 
Less: Average Non-Commercial Bank Interest Earning Assets152,715 144,558 132,196 128,278 133,401 
Average Commercial Bank Interest Earning Assets$3,207,861 $3,102,095 $3,031,225 $2,959,665 $2,869,680 
Commercial Bank Net Interest Margin4.18%4.64%4.38%4.32%3.99%
Commercial Bank Net Interest MarginYear Ended
(in thousands)December 31, 2025December 31, 2024
Commercial Bank Net Interest Income$134,619 $92,756 
Average Interest Earning Assets3,215,483 2,487,607 
Less: Average Non-Commercial Bank Interest Earning Assets139,344 124,863 
Average Commercial Bank Interest Earning Assets$3,076,139 $2,362,744 
Commercial Bank Net Interest Margin4.38%3.93%
Commercial Bank Portfolio Loans Receivable YieldQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Portfolio Loans Receivable Interest Income$64,670 $60,610 $60,647 $58,453 $58,409 
Less: Credit Card Loan Income16,197 15,387 14,116 14,148 15,022 
Commercial Bank Portfolio Loans Receivable Interest Income$48,473 $45,223 $46,531 $44,305 $43,387 
Average Portfolio Loans Receivable2,902,033 2,789,815 2,733,865 2,634,110 2,592,960 
Less: Average Credit Card Loans133,858 129,100 121,414 118,723 120,993 
Total Commercial Bank Average Portfolio Loans Receivable$2,768,175 $2,660,715 $2,612,451 $2,515,387 $2,471,967 
Commercial Bank Portfolio Loans Receivable Yield6.95%6.74%7.14%7.14%6.98%
Commercial Bank Portfolio Loans Receivable YieldYear Ended
(in thousands)December 31, 2025December 31, 2024
Portfolio Loans Receivable Interest Income$244,380 $202,346 
Less: Credit Card Loan Income59,848 59,821 
Commercial Bank Portfolio Loans Receivable Interest Income$184,532 $142,525 
Average Portfolio Loans Receivable2,765,758 2,142,638 
Less: Average Credit Card Loans125,824 115,581 
Total Commercial Bank Average Portfolio Loans Receivable$2,639,934 $2,027,057 
Commercial Bank Portfolio Loans Receivable Yield6.99%7.03%





29

Appendix

Reconciliation of Non-GAAP Measures


Pre-tax, Pre-Provision Net Revenue ("PPNR")Quarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Net Income
$15,037 $15,065 $13,136 $13,932 $7,533 
Add: Income Tax Expense4,644 4,802 3,963 4,365 3,243 
Add: Provision for Credit Losses3,988 4,650 4,081 2,246 7,828 
Add: (Release of) Provision for Credit Losses on Unfunded Commitments(29)217 — — 122 
Pre-tax, Pre-Provision Net Revenue ("PPNR")$23,640 $24,734 $21,180 $20,543 $18,726 
Pre-tax, Pre-Provision Net Revenue ("PPNR")Year Ended
(in thousands)December 31, 2025December 31, 2024
Net Income
$57,170 $30,972 
Add: Income Tax Expense17,774 10,860 
Add: Provision for Credit Losses14,965 17,720 
Add: (Release of) Provision for Credit Losses on Unfunded Commitments188 385 
Pre-tax, Pre-Provision Net Revenue ("PPNR")$90,097 $59,937 

Core PPNRQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Net Income
$15,037 $15,065 $13,136 $13,932 $7,533 
Add: Income Tax Expense4,644 4,802 3,963 4,365 3,243 
Add: Provision for Credit Losses3,988 4,650 4,081 2,246 7,828 
Add: (Release of) Provision for Credit Losses on Unfunded Commitments(29)217 — — 122 
Deduct: Income from the Call of Brokered Time Deposits— (4,618)— — — 
Add: Merger-Related Expenses— 697 1,398 1,266 2,615 
Add: Non-Recurring Equity and Debt Investment Write-Down— — — — 2,620 
Core PPNR$23,640 $20,813 $22,578 $21,809 $23,961 
Core PPNRYear Ended
(in thousands)December 31, 2025December 31, 2024
Net Income
$57,170 $30,972 
Add: Income Tax Expense17,774 10,860 
Add: Provision for Credit Losses14,965 17,720 
Add: (Release of) Provision for Credit Losses on Unfunded Commitments188 385 
Deduct: Income from the Call of Brokered Time Deposits(4,618)— 
Add: Merger-Related Expenses3,361 3,930 
Add: Non-Recurring Equity and Debt Investment Write-Down— 2,620 
Core PPNR$88,840 $66,487 
30

Appendix

Reconciliation of Non-GAAP Measures




Allowance for Credit Losses to Total Portfolio LoansQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Allowance for Credit Losses$54,660 $53,045 $47,447 $48,454 $48,652 
Total Portfolio Loans2,959,457 2,821,983 2,739,808 2,678,406 2,630,163 
Allowance for Credit Losses to Total Portfolio Loans1.85%1.88%1.73%1.81%1.85%

Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio LoansQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Allowance for Credit Losses$54,660 $53,045 $47,447 $48,454 $48,652 
Less: Credit Card Allowance for Credit Losses8,232 7,413 6,762 5,905 6,402 
Commercial Bank Allowance for Credit Losses46,428 45,632 40,685 42,549 42,250 
Total Portfolio Loans2,959,457 2,821,983 2,739,808 2,678,406 2,630,163 
Less: Gross Credit Card Loans137,905 130,897 126,233 115,991 122,928 
Commercial Bank Portfolio Loans2,821,552 2,691,086 2,613,575 2,562,415 2,507,235 
Commercial Bank Allowance for Credit Losses to Total Portfolio Loans1.65%1.70%1.56%1.67%1.70%

Nonperforming Assets to Total AssetsQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Total Nonperforming Assets$58,276 $52,247 $36,167 $42,934 $30,241 
Total Assets3,606,207 3,389,442 3,388,662 3,349,805 3,206,911 
Nonperforming Assets to Total Assets1.62%1.54%1.07%1.28%0.94%


Nonperforming Loans to Total Portfolio LoansQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Total Nonperforming Loans$54,421 $52,247 $36,167 $42,934 $30,241 
Total Portfolio Loans2,959,457 2,821,983 2,739,808 2,678,406 2,630,163 
Nonperforming Loans to Total Portfolio Loans1.84%1.85%1.32%1.60%1.15%


Net Charge-Offs to Average Portfolio LoansQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Total Net Charge-Offs$2,373 $2,476 $5,088 $2,444 $2,427 
Total Average Portfolio Loans2,902,033 2,789,815 2,733,865 2,634,110 2,592,960 
Net Charge-Offs to Average Portfolio Loans, Annualized0.32%0.35%0.75%0.38%0.37%








31

Appendix

Reconciliation of Non-GAAP Measures



Tangible Book Value per ShareQuarter Ended
(in thousands, except share and per share data)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Total Stockholders' Equity$401,978 $394,770 $380,035 $369,577 $355,139 
Less: Preferred Equity
— — — — — 
Less: Intangible Assets
40,740 41,002 37,773 39,641 36,943 
Tangible Common Equity$361,238 $353,768 $342,262 $329,936 $318,196 
Period End Shares Outstanding16,381,088 16,589,241 16,581,990 16,657,168 16,662,626 
Tangible Book Value per Share$22.05 $21.33 $20.64 $19.81 $19.10 

Return on Average Tangible Common EquityQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Net Income
$15,037 $15,065 $13,136 $13,932 $7,533 
Add: Intangible Amortization, Net of Tax200 199 200 199 198 
Net Tangible Income$15,237 $15,264 $13,336 $14,131 $7,731 
Average Equity391,750 383,922 371,795 363,115 352,537 
Less: Average Intangible Assets40,884 37,706 39,534 36,896 22,890 
Net Average Tangible Common Equity$350,866 $346,216 $332,261 $326,219 $329,647 
Return on Average Equity15.23 %15.57 %14.17 %15.56 %8.50 %
Return on Average Tangible Common Equity17.23 %17.49 %16.10 %17.57 %9.33 %

Return on Average Tangible Common EquityYear Ended
(in thousands)December 31, 2025December 31, 2024
Net Income
$57,170 $30,972 
Add: Intangible Amortization, Net of Tax798 198 
Net Tangible Income$57,968 $31,170 
Average Equity377,741 287,420 
Less: Average Intangible Assets38,763 5,754 
Net Average Tangible Common Equity$338,978 $281,666 
Return on Average Equity15.13 %10.78 %
Return on Average Tangible Common Equity17.10 %11.07 %

Core Return on Average Tangible Common EquityQuarter Ended
(in thousands)December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Core Net Income$15,037 $12,151 $14,206 $14,896 $15,473 
Add: Intangible Amortization, Net of Tax200 199 200 199 198 
Core Net Tangible Income$15,237 $12,350 $14,406 $15,095 $15,671 
Core Return on Average Tangible Common Equity17.23 %14.15 %17.39 %18.77 %18.91 %

Core Return on Average Tangible Common EquityYear Ended
(in thousands)December 31, 2025December 31, 2024
Core Net Income$56,290 $40,069 
Add: Intangible Amortization, Net of Tax798 198 
Core Net Tangible Income$57,088 $40,267 
Core Return on Average Tangible Common Equity16.84 %14.30 %

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ABOUT CAPITAL BANCORP, INC.
Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in four locations in the Washington, D.C., Baltimore, other Maryland markets, one bank branch in Fort Lauderdale, Florida, one bank branch in Chicago, Illinois and one bank branch in Raleigh, North Carolina. Capital Bancorp had assets of approximately $3.6 billion at December 31, 2025 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company's website www.CapitalBankMD.com under its investor relations page.
FORWARD-LOOKING STATEMENTS
This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” "optimistic," “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company's Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.

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

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