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

7/28/25 4:00:00 PM ET

$CBNK

Major Banks

Finance

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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, Md., 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⁽⁴⁾ 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⁽⁵⁾ 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⁽⁶⁾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 protected⁷ 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.
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.

_{^{____________________________________________

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

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⁽⁸⁾ 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⁽⁹⁾ 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⁽¹⁰⁾ 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

—

16,940

Net interest income

33,073

14,494

—

47,646

Provision for credit losses

1,159

2,922

—

4,081

Provision for credit losses on unfunded commitments

—

Net interest income after provision

31,914

11,572

—

43,565

Noninterest income

Service charges on deposits

262

—

262

Credit card fees

—

4,298

—

4,298

Mortgage banking revenue

465

—

1,289

1,754

Government lending revenue

3,112

—

3,112

Government loan servicing revenue⁽¹⁾

(1,052

)

—

4,696

—

3,644

Loan servicing rights (government guaranteed)⁽²⁾

(590

)

—

(590

)

Other income

349

—

252

626

Total noninterest income

2,546

4,323

4,696

1,541

13,106

Noninterest expenses

Salaries and employee benefits

11,090

3,403

2,509

1,458

18,460

Occupancy and equipment

1,903

573

368

151

2,995

Professional fees

1,572

552

227

2,422

Data processing

454

6,897

133

7,520

Advertising

795

470

1,371

Loan processing

650

251

979

Foreclosed real estate expenses, net

—

Merger-related expenses

1,398

—

1,398

Operational losses

100

833

—

933

Regulatory assessment expenses

860

884

Other operating

1,817

338

354

101

2,610

Total noninterest expenses

20,639

13,105

3,530

2,298

39,572

Net income (loss) before taxes

13,821

2,790

1,166

(678

)

17,099

Total assets

3,211,421

129,397

25,936

21,908

3,388,662

_{^{____________________________________________

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

_{⁽²⁾Loan servicing 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

—

16,713

Net interest income

31,515

14,444

—

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

—

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

—

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

7,112

Advertising

718

874

104

1,779

Loan processing

477

240

743

Foreclosed real estate expenses, net

—

Merger-related expenses

1,266

—

1,266

Operational losses

872

—

903

Regulatory assessment expenses

865

889

Other operating

1,408

516

254

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

—

13,558

Net interest income

21,223

15,785

—

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

—

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

—

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

—

6,788

Advertising

404

1,576

—

2,072

Loan processing

233

—

227

476

Foreclosed real estate expenses, net

—

Merger-related expenses

—

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

—

420

2,228

Total noninterest income

5,020

8,056

9,302

3,277

25,655

Noninterest expenses

Salaries and employee benefits

21,716

6,748

4,915

3,148

36,527

Occupancy and equipment

3,480

1,061

1,079

285

5,905

Professional fees

2,723

1,143

191

477

4,534

Data processing

894

13,479

186

14,632

Advertising

1,513

1,344

139

154

3,150

Loan processing

1,127

491

1,722

Foreclosed real estate expenses, net

—

Merger-related expenses

2,664

—

2,664

Operational losses

131

1,705

—

1,836

Regulatory assessment expenses

1,725

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

—

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

—

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

—

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

—

13,549

Advertising

786

3,168

—

150

4,104

Loan processing

392

—

426

847

Foreclosed real estate expenses, net

—

Merger-related expenses

795

—

795

Operational losses

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.

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).}

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).}

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	%

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

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	%

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

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Date	Price Target	Rating	Analyst
7/29/2025	$35.00 → $39.00	Outperform	Hovde Group
3/17/2025	$36.00 → $34.00	Outperform	Hovde Group
7/24/2024	$26.00 → $28.00	Outperform	Hovde Group
4/23/2024	$27.00 → $26.00	Outperform	Hovde Group
4/1/2024	$25.00 → $28.00	Equal-Weight → Overweight	Stephens
6/13/2023	$22.00	Overweight	Piper Sandler
4/4/2023	$19.00	Equal-Weight	Stephens
12/13/2022	$30.00 → $26.00	Outperform → Mkt Perform	Keefe Bruyette

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

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Recent Analyst Ratings for
$CBNK

$CBNK
Insider Purchases

EVP, Chief Financial Officer Canuso Dominic C bought $18,666 worth of shares (600 units at $31.11), increasing direct ownership by 14% to 4,834 units (SEC Form 4)

Chief Executive Officer Barry Edward F bought $33,447 worth of shares (1,204 units at $27.78), increasing direct ownership by 0.81% to 149,893 units (SEC Form 4)

EVP and CHRO Suss Eric M. bought $11,080 worth of shares (368 units at $30.11), increasing direct ownership by 1% to 59,323 units (SEC Form 4)

$CBNK
Insider Trading

EVP, Chief Financial Officer Canuso Dominic C bought $18,666 worth of shares (600 units at $31.11), increasing direct ownership by 14% to 4,834 units (SEC Form 4)

EVP, Chief Financial Officer Canuso Dominic C converted options into 1,150 shares and covered exercise/tax liability with 316 shares, increasing direct ownership by 25% to 4,234 units (SEC Form 4)

Chief Executive Officer Barry Edward F bought $33,447 worth of shares (1,204 units at $27.78), increasing direct ownership by 0.81% to 149,893 units (SEC Form 4)

$CBNK
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