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CBNK Delivers Strong Revenue Growth and Positive Operating Leverage
Rockville, Maryland, October 26, 2026 (GLOBE NEWSWIRE) – Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported:
Quarter Ended
% Change (Annualized)
(in millions, except per share data)3Q262Q263Q253Q26 vs 2Q263Q26 vs 3Q25
Balance Sheet Summary
Gross Loans(1)
$3,114$3,086$2,8223.6%10.4%
Total Deposits3,3193,3712,912(6.1)%14.0%
Customer Deposits(2)
2,9883,1402,675(19.2)%11.7%
Tangible Book Value per share(3)
$23.98$23.45$21.339.0%12.4%
GAAP
Core(3)
Quarter EndedChangeQuarter EndedChange
(in millions, except per share data)3Q262Q263Q253Q26 vs 2Q263Q26 vs 3Q253Q262Q263Q253Q26 vs 2Q263Q26 vs 3Q25
Earnings Summary
Net Income$13.1$14.3$15.1(7.9)%(12.9)%$14.7$14.3$12.23.2%21.0%
Earnings per share - diluted$0.80$0.87$0.89(8.0)%(10.1)%$0.89$0.87$0.722.3%23.6%
ROA1.38%1.52%1.77%(14) bps(39) bps1.55%1.52%1.43%3 bps12 bps
ROTCE(3)
13.62%15.51%17.49%(189) bps(387) bps15.24%15.51%14.15%(27) bps109 bps
Including CardExcluding Card
NIM5.81%5.64%6.36%17 bps(55) bps4.18%4.04%4.66%14 bps(48) bps
GAAP
Core(3)
Nine Months EndedChangeNine Months EndedChange
(in millions, except per share data)3Q263Q253Q26 vs 3Q253Q263Q253Q26 vs 3Q25
Earnings Summary
Net Income$39.4$42.1(6.5)%$41.0$41.3(0.7)%
Earnings per share - diluted$2.40$2.50(4.0)%$2.49$2.451.6%
ROA1.41%1.71%(30) bps1.47%1.67%(20) bps
ROTCE(3)
14.24%17.06%(282) bps14.80%16.70%(190) bps
Including CardExcluding Card
NIM5.72%6.15%(43) bps4.12%4.48%(36) bps1
“This was indeed a very busy quarter with the announcements of the merger with Peoples Bank and the sale of our Chicago branch,” said Steven J. Schwartz, Chairman of the Company. “However, it is also important to note our continued steady net interest margin and tangible net book value(3) growth, along with sustained double-digit loan growth and the quarter-over-quarter increase in core earnings per share. The Board is excited about both the synergistic opportunities the merger provides as well as our independent organic growth and performance prospects.”




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

1
Third Quarter 2026 Highlights
•On September 29, 2026 the Company announced it has entered into a definitive merger agreement under which Peoples Bancorp, Inc. ("Peoples") will acquire Capital Bancorp, Inc. in an all-stock transaction. Under the terms of the agreement, shareholders will receive 1.11 shares of Peoples common stock for each share of the Company's common stock, representing an implied value of $43.75 per share and an approximate 22.7% premium over the Company's closing stock price on September 29, 2026. The implied value represented a 1.9x tangible book value per share(1) and 12.9x last-twelve-month earnings per share - diluted for the quarter ended June 30, 2026. The transaction is subject to receipt of required regulatory approvals, shareholder approval, and other customary closing conditions
•On September 29, 2026 the Company announced it has entered into a purchase and assumption agreement with respect to the Bank's branch office located in North Riverside, Illinois ("Chicago branch"), subject to regulatory approvals and other customary closing conditions. Based on the composition of deposits at September 30, 2026, the Bank would have received a deposit premium of approximately $3.2 million had the transaction closed at that date. The Bank will also receive a payment equal to the unpaid principal balance of loans transferred in the transaction, which could result in an additional gain at the time of closing
•Total deposits decreased $52.0 million or 6.1% (annualized) from 2Q 2026, primarily driven by decreases of $89.3 million from DDA products associated with our Title business, consistent with regular seasonality. The decrease in deposits also included a $45.2 million reduction associated with a single customer relationship that had grown significantly throughout the year and which was noted in the 2Q 2026 earnings release. Excluding deposits from title companies and the single customer relationship, deposits increased $82.5 million or 11.8% (annualized)
•Noninterest expenses increased $2.5 million or 23.3% (annualized) from 2Q 2026 as we continued to execute on strategic growth initiatives and incurred merger-related expenses related to the pending merger with Peoples. Excluding the impact of merger-related expenses, Core noninterest expenses(1) increased $1.0 million or 8.8% (annualized) from 2Q 2026
•Generated $80.2 million, or 10.2% (annualized) growth in total gross loans from 2Q 2026, largely driven by commercial and industrial ("C&I"), which grew $47.1 million, or 25.6% (annualized), across both held for sale and held for investment portfolios, and residential real estate, which grew $26.1 million, or 13.0% (annualized), across both held for sale and held for investment portfolios
•Continued tangible book value compounding, with tangible book value per share(1) increasing 9.0% (annualized) from 2Q 2026
•NIM of 5.81% increased 17 bps from 2Q 2026, driven by 14 bps from the Commercial Bank loan portfolio and 4 bps increased contribution from OpenSkyTM due to higher balances, partially offset by 1 bp from other Commercial Bank activity. Core NIM of 4.18% increased 14 bps from 2Q 2026, primarily driven by 11 bps from organic growth from Commercial Bank portfolio.
•Diluted earnings per share of $0.80, down 8.0% from 2Q 2026. Core earnings per share(1) increased $0.02, or 2.3% from 2Q 2026
•Produced 18.7% (annualized) fee income growth, led by government lending revenue, loan servicing rights income, credit card fees and USDA fees. Fee revenue represented 22.1% of total revenue
•The Company also declared a cash dividend on its common stock of $0.14 per share. The dividend is payable on November 25, 2026 to shareholders of record on November 9, 2026.
“We are excited about our combination with Peoples Bank and what it will bring to our franchises" said Ed Barry, CEO of the Company. "Our current quarter results reflect work on the merger and continued progress on our strategic plan. Prudent and disciplined financial management is demonstrated in our ability to deliver strong profitability in a volatile operating environment."
(1) As used in this press release, Core noninterest expense, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
2
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 brokered time deposit call, merger-related expenses and other one-time non-recurring transactions.
Third Quarter 2026
Second Quarter 2026
Third Quarter 2025
(in thousands)Income Before Income TaxesIncome Tax Expense (Benefit)Net IncomeIncome Before Income TaxesIncome Tax ExpenseNet IncomeIncome Before Income TaxesIncome Tax Expense (Benefit)Net Income
GAAP Net Income$17,546 $4,424 $13,122 $18,454 $4,204 $14,250 $19,867 $4,802 $15,065 
Deduct: Income from the Call of Brokered Time Deposits— — — — — — (4,618)(1,129)(3,489)
Add: Merger-Related Expenses1,577 — 1,577 — — — 697 122 575 
Core Net Income(1)
$19,123 $4,424 $14,699 $18,454 $4,204 $14,250 $15,946 $3,795 $12,151 
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
(in thousands)Income Before Income TaxesIncome Tax Expense (Benefit)Net IncomeIncome Before Income TaxesIncome Tax ExpenseNet Income
GAAP Net Income$51,871 $12,481 $39,390 $55,263 $13,130 $42,133 
Deduct: Income from the Call of Brokered Time Deposits— — — (4,618)(1,129)(3,489)
Add: Merger-Related Expenses1,577 — 1,577 3,361 752 2,609 
Core Net Income(1)
$53,448 $12,481 $40,967 $54,006 $12,753 $41,253 
Note: The income tax expense reflects the non-deductibility of certain merger-related expenses.
Net income of $13.1 million decreased $1.1 million compared to 2Q 2026, and earnings per share - diluted of $0.80 decreased $0.07 per share from 2Q 2026. Net income decreased $1.9 million, or 12.9%, compared to $15.1 million, or $0.89 per diluted share, for 3Q 2025. 3Q 2026 Core net income(1) of $14.7 million, or $0.89 per diluted share, increased $0.4 million, or 3.2%, compared to 2Q 2026 Core net income(1) of $14.3 million, or $0.87 per diluted share. 3Q 2026 Core net income(1) increased $2.5 million from 3Q 2025 Core net income(1) of $12.2 million. 3Q 2026 Core net income(1) excluding purchase accounting accretion ("PAA") was $14.4 million, an increase of $2.9 million, or 25.2%, from 3Q 2025 Core net income(1) of $11.5 million excluding PAA.
Consolidated Financial Performance
Quarterly net interest income:
•Net interest income of $53.1 million increased $2.1 million, or 4.2% (not annualized), compared to 2Q 2026, and increased $1.1 million, or 2.0%, year-over-year.
◦Interest income of $72.3 million increased $2.3 million, or 3.3% (not annualized), compared to 2Q 2026, and increased $7.4 million, or 11.4%, year-over-year. The increase from 2Q 2026 was primarily driven by a $2.4 million increase from Commercial Bank loan growth and $0.5 million increase from OpenSky™ due to higher balances and higher yields, slightly offset by a $0.5 million decrease in interest bearing cash income due to lower balances of interest-bearing deposits from other financial institutions. The increase year-over-year was primarily driven by $6.5 million from the Commercial Bank due to strong organic loan growth, and $0.9 million from OpenSky™ due to strong growth from the unsecured loan product.
▪Interest income included $0.3 million from net PAA in 3Q 2026, compared to $0.2 million in 2Q 2026 and $0.2 million in net PAA in 3Q 2025.
◦Interest expense of $19.2 million increased $0.2 million, or 1.0% (not annualized), compared to 2Q 2026, and increased $6.3 million, or 49.3%, year-over-year. The increase of $0.2 million, compared to 2Q 2026, was primarily driven by growth in money market accounts, offset by a decrease in borrowed funds. The increase of $6.3 million year-over-year was driven by $1.0 million from higher balances and a shift in deposit mix, $5.2 million of decreased benefit from net PAA, and $0.1 million of higher borrowing costs.
(1) As used in this press release, Core net income and Core noninterest expense are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
3
Consolidated Financial Performance (continued)
▪Interest expense included a $0.1 million benefit from net PAA in both 3Q 2026 and 2Q 2026. There was a $5.3 million benefit from net PAA in 3Q 2025, which included $4.6 million from the call of brokered time deposits acquired from the IFH transaction ("Call of Brokered Time Deposits").
Quarterly provision:
•The 3Q 2026 provision for credit losses was $4.9 million, an increase of $1.3 million from 2Q 2026. The increase was primarily driven by $1.3 million of increased provision for the Commercial Bank from 2Q 2026, primarily due to a $1.0 million increased reserve requirement largely attributable to loan growth and $0.3 million decrease in net charge-offs. Net charge-offs totaled $3.8 million, or 0.49% of portfolio loans (annualized), consistent with $3.8 million or 0.50% of portfolio loans (annualized), in 2Q 2026.
◦Net charge-offs in the quarter included $3.2 million from OpenSky™ loans and $0.6 million from Commercial Bank loans. Net charge-offs for the Commercial Bank decreased $0.3 million quarter-over-quarter. OpenSky™ net charge-offs increased $0.3 million quarter-over-quarter, driven by the secured product.
◦At September 30, 2026, the ACL Coverage Ratio was 1.78%, an increase of 2 bps from June 30, 2026.
Quarterly fee revenue:
•Fee Revenue of $15.0 million increased $0.7 million, compared to 2Q 2026 and increased $4.0 million year-over-year. The increase of $0.7 million during 3Q 2026 was primarily driven by a $0.4 million increase in other income from fees associated with USDA transactions that did not close and an increase in small business investment company ("SBIC") income, and a $0.3 million increase in government lending revenue from both USDA and SBA gain on sale. The year-over-year fee revenue increase of $4.0 million was primarily driven by a $1.5 million increase in government lending revenue mostly from USDA gain on sale, $1.2 million from SBIC income, $0.8 million from government loan servicing and packaging revenue (Windsor™) driven by growth in servicing income from organic growth in the servicing portfolio, and $0.3 million from fees earned from USDA deals which were not executed. Fee revenue mix(1) was 22.1% of total revenue for 3Q 2026, compared to 22.0% during 2Q 2026, and 17.5% during 3Q 2025. Core fee revenue mix was 22.1% for 3Q 2026, compared to 22.0% during 2Q 2026, and 18.9% during 3Q 2025.
Quarterly noninterest expense:
•Noninterest expense of $45.7 million increased $2.5 million compared to 2Q 2026 and increased $7.4 million compared to 3Q 2025. Core noninterest expense(2) of $44.1 million increased $1.0 million compared to 2Q 2026 and increased $6.5 million compared to 3Q 2025. Core comparisons include:
◦The increase of $1.0 million quarter-over-quarter was primarily driven by $1.0 million higher personnel costs primarily due to planned investment in headcount
◦Year-over-year expense growth of $6.5 million was primarily driven by planned expansion and investment in headcount across the organization, and an increase in professional fees associated with investments in shared services areas and OpenSky™.
Quarterly income taxes:
•Income tax expense of $4.4 million, or 25.2% of pre-tax income for 3Q 2026, increased $0.2 million from $4.2 million, or 22.8% of pre-tax income for 2Q 2026. The effective income tax rate change quarter-over-quarter primarily reflects $1.6 million of non-deductible merger costs. Our Core effective income tax rate excluding non-deductible merger costs was 23.1% for 3Q 2026.



(1) Fee revenue mix equals fee revenue divided by the sum of fee revenue and net interest income before provision for credit losses.
(2) As used in this press release, Core noninterest expense, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
4
Consolidated Financial Performance (continued)
Total assets:
Total assets of $3.8 billion at September 30, 2026 decreased $87.4 million, or 8.9% (annualized) from June 30, 2026. The $87.4 million decrease was primarily driven by $156.2 million of decreased cash and cash equivalents, offset by total loan growth of $80.2 million (inclusive of portfolio loans receivable and loans held for sale). Total assets growth year-over-year was $413.1 million, or 12.2%. The growth year-over-year was primarily driven by increases in portfolio loans and cash balances.
Gross Loans:
•Total loans increased $80.2 million driven by increases in loans held for sale of $51.9 million and loans held for investment of $28.3 million
•Loans held for sale increased $51.9 million, primarily driven by a reclassification of $60.2 million of loans from held for investment to held for sale due to the pending Chicago branch sale, subject to mutual agreement with the buyer on the loan population.
•Gross Loans held for investment of $3.1 billion at September 30, 2026 increased $28.3 million, or 3.6% (annualized), from June 30, 2026 and increased $292.3 million, or 10.4%, year-over-year.
◦Excluding the impact of $60.2 million of loans reclassified to held for sale, gross loans held for investment increased $88.5 million, or 11.4% (annualized) from June 30, 2026.
◦Compared to June 30, 2026, growth was primarily driven by $42.7 million from C&I and $10.0 million from construction real estate, slightly offset by a $21.1 million decrease in commercial real estate.
▪The $42.7 million growth from C&I was driven by $20.1 million SBA, $14.7 million legacy, and $7.9 million USDA.
◦C&I loans, plus owner-occupied CRE loans, totaled 38.3% of total portfolio loans at September 30, 2026, 37.4% at June 30, 2026, and 37.6% at September 30, 2025.
Deposits:
•Total deposits of $3.3 billion at September 30, 2026 decreased $52.0 million, or 6.1% (annualized), from June 30, 2026, and increased $407.1 million, or 14.0% from September 30, 2025.
◦Excluding a $99.9 million increase in brokered time deposits, customer deposits decreased $151.8 million or 19.2% (annualized), which was driven by an $89.3 million decrease from DDA products associated with our Title business due to typical seasonality, a $35.6 million increase from organic activity, and a $26.9 million decrease from customer time deposits which were not renewed or extended.
▪The $151.8 million decrease includes $68.4 million from interest-bearing demand accounts, $52.8 million from noninterest-bearing deposits, $11.2 million from customer money market deposits, and $26.9 million from customer time deposits, partially offset by $7.5 million of growth from savings accounts.
◦The increase in total deposits of $407.1 million year-over-year was primarily driven by $390.4 million in growth from customer money market deposits and $17.7 million from high yield savings accounts, with offsetting activity across other deposit products.
◦Total deposits include $111.1 million of deposits expected to be assumed in connection with the pending Chicago branch sale, subject to finalization of the purchase and assumption agreement.
◦Insured and protected(1) deposits were approximately $2.2 billion as of September 30, 2026 representing 66.6% of the Company's deposit portfolio.


(1) Protected deposits include deposits that are indirectly protected under the product terms.
5
Consolidated Financial Performance (continued)
◦Low interest(1) and noninterest-bearing demand deposit account ("DDA") deposits totaled $1.2 billion, or 36.1% of deposits, a decrease of $113.8 million, or 8.7% from 2Q 2026, and an increase of $52.1 million, or 4.5% year-over-year.
▪The average rate on the low interest and noninterest-bearing deposits was 0.30% for 3Q 2026, which increased 1 bps compared to 2Q 2026 and increased 15 bps year-over-year.
•The average portfolio loans-to-deposit ratio was 96.0% for 3Q 2026, compared to 94.3% for 2Q 2026, and 95.6% for 3Q 2025.
Investment securities:
•The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $214.5 million, or 5.6% of total assets, and an effective duration of 2.4 years, with U.S. Treasury Securities representing 61% of the overall investment portfolio at September 30, 2026. The accumulated other comprehensive loss on the investment securities portfolio increased $2.9 million during the quarter to $9.2 million after-tax as of September 30, 2026, 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 diversified sources of contingent liquidity, generally consistent with the prior quarter. Total available borrowing capacity as of September 30, 2026 was $842.6 million, compared to $801.6 million as of June 30, 2026, consisting of $736.0 million of available collateralized borrowing capacity, $100.5 million of unsecured lines of credit with other banks, and $6.1 million of unpledged investment securities available to collateralize potential additional borrowings. Including cash and cash equivalents of $262.0 million, total liquidity was approximately $1.1 billion.
Capital:
•As of September 30, 2026, the Company reported a Common Equity Tier-1 capital ratio of 13.25% and a Tier 1 leverage ratio of 10.84%, compared to 13.16% and 10.51%, respectively, at June 30, 2026. At September 30, 2026, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
•There were no shares repurchased and retired during the three months ended September 30, 2026, as part of the Company's stock repurchase program. As of September 30, 2026, there was $12.4 million remaining to be repurchased under the current $15.0 million authorized repurchase program, which will expire on December 31, 2026. In connection with the merger agreement with Peoples, the Company has suspended its stock repurchase program and does not currently expect to repurchase additional shares while the proposed transaction is pending.
(1) Low interest deposits include interest-bearing demand and savings accounts.
6
Financial Metrics
Net Interest Margin:
NIM of 5.81% for 3Q 2026, increased 17 bps compared to the prior quarter, but decreased 55 bps year-over-year. Core NIM(1) of 4.18% increased 14 bps (but increased 12 bps when excluding PAA) compared to the prior quarter, and decreased 48 bps year-over-year. Net PAA for 3Q 2026 was 4 bps for NIM and 5 bps for Core NIM(1). The increase quarter-over-quarter in Core NIM includes 11 bps from organic growth from Commercial Bank portfolio, 2 bps from one non-performing loan relationship in 2Q 2026, and 1 bp from higher net PAA compared to 2Q 2026. There was $4.6 million of PAA from the Call of Brokered Time Deposits during 3Q 2025, or 56 bps of NIM and 59 of Core NIM. Excluding the impact from the Call of Brokered Time Deposits, NIM increased 1 bp and Core NIM increased 11 bps year-over-year.
•The average yield on interest earning assets of 7.91% increased 16 bps compared to the prior quarter and decreased 2 bps year-over-year. The increase quarter-over-quarter was due to growth in both the Commercial Bank and OpenSky™ portfolios. The decrease year-over-year was primarily due to the impact of changes in the rate environment to the Commercial Bank and OpenSky™ portfolios.
◦The Core Loan Yield(1) of 6.83% for 3Q 2026 increased 6 bps compared to 2Q 2026, and increased 9 bps year-over-year. The increase quarter-over-quarter includes 3 bps from organic portfolio growth and 3 bps from loan PAA. The increase year-over-year was primarily a result of organic portfolio growth.
•The total cost of deposits of 2.30% for 3Q 2026 increased 1 bp compared to 2Q 2026, and increased 57 bps year-over-year. The increase year-over-year was primarily due to 63 bps from the Call of Brokered Time Deposits in 3Q 2025. Excluding the Call of Brokered Time Deposits from 3Q 2025, total cost of deposits would have decreased 6 bps year-over-year, primarily driven by a shift in product mix as well as changes in the rate environment offsetting lower time deposit PAA.
•The total cost of interest-bearing deposits of 3.09% for 3Q 2026, remained consistent compared to the prior quarter, and increased 68 bps year-over-year. The increase year-over-year was primarily due to 87 bps from the Call of Brokered Time Deposits in 3Q 2025. Excluding the Call of Brokered Time Deposits from 3Q 2025, total cost of interest-bearing deposits would have decreased 19 bps year-over-year, which was primarily driven by a shift in product mix as well as changes in the rate environment.
•Net PAA of $0.4 million, or 4 bps of NIM and 5 bps of Core NIM(1), during 3Q 2026, increased $0.1 million from 2Q 2026 due to $0.2 million from the acceleration of PAA from a loan that paid off during 3Q 2026, partially offset by $0.1 million lower time deposit PAA from the run-off of certain purchase accounting marks associated with acquired IFH deposit portfolio. There was $5.5 million from net PAA during 3Q 2025, which includes $4.6 million, or 59 bps of Core NIM, from the Call of Brokered Time Deposits. Excluding the impact from the Call of Brokered Time Deposits, net PAA decreased $0.5 million mainly driven by lower time deposit PAA.
Credit Metrics and Asset Quality:
Nonperforming assets were $60.5 million, or 1.59% of total assets, at September 30, 2026, a decrease of $0.3 million but an increase of 3 bps from June 30, 2026. The decrease of $0.3 million was primarily driven by the acquired IFH portfolio. Nonperforming assets increased $8.3 million or 5 bps year-over-year, mainly due to the $9.7 million increase during 2Q 2026 related to the legacy bank loan relationship noted during 2Q 2026. At September 30, 2026, substandard loans totaled $71.4 million, or 2.3% of total portfolio loans, compared to $70.6 million, or 2.3% of total portfolio loans, at June 30, 2026 and $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025. The $14.6 million year-over-year increase in substandard loans was primarily driven by the $9.7 million legacy bank relationship that is referenced above. At September 30, 2026, special mention loans totaled $67.8 million, or 2.2%, of total portfolio loans, compared to $61.5 million, or 2.0% of total portfolio loans, at June 30, 2026, and $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025.
Efficiency Ratio:
The efficiency ratio was 67.1% for 3Q 2026, compared to 66.1% for 2Q 2026 and 60.8% for 3Q 2025. The Core efficiency ratio(1) was 64.8% for 3Q 2026, which decreased from 66.1% compared to the prior quarter, and increased from 64.4% for 3Q 2025.
(1) As used in this press release, Core NIM, Core Loan Yield, and Core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
7

Financial Metrics (continued)
Returns:
ROA was 1.38% for 3Q 2026, compared to 1.52% for 2Q 2026, and 1.77% for 3Q 2025. Core ROA(1) for 3Q 2026 was 1.55%, compared to 1.52% for 2Q 2026, and 1.43% for 3Q 2025.
•ROE was 12.16% for 3Q 2026, compared to 13.80% for 2Q 2026, and 15.57% for 3Q 2025. Core ROE(1) was 13.63% for 3Q 2026, compared to 13.80% for 2Q 2026, and 12.56% for 3Q 2025.
•ROTCE(1) was 13.62% for 3Q 2026, compared to 15.51% for 2Q 2026, and 17.49% for 3Q 2025. Core ROTCE(1) for 3Q 2026 was 15.24%, compared to 15.51% for 2Q 2026, and 14.15% for 3Q 2025.
Book Value:
Book value per common share of $26.42 at September 30, 2026, increased $0.50 when compared to June 30, 2026, and increased $2.62 when compared to September 30, 2025. Tangible book value per share(1) increased $0.53, or 2.3% (not annualized), to $23.98 at September 30, 2026 when compared to June 30, 2026, and increased $2.65, or 12.4%, when compared to September 30, 2025.

(1) As used in this press release, Core ROA, Core ROE, ROTCE, Core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
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Reportable Segments
Commercial Bank
Loan Growth – Portfolio loans(1) increased $24.8 million at September 30, 2026 compared to June 30, 2026, primarily driven by increases of $42.7 million from C&I, $10.0 million from construction real estate, and $5.6 million from lender finance, offset by decreases of $21.1 million from CRE and $13.5 million from residential real estate. Excluding the impact of $60.2 million of loans reclassified to held for sale, gross loans held for investment increased $88.5 million, or 11.4% (annualized) from June 30, 2026. Portfolio loans increased $276.5 million at September 30, 2026 compared to September 30, 2025, driven by $155.1 million from C&I, $44.2 million from residential real estate, $36.4 million from construction real estate, and $12.1 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 $55.6 million increased $1.9 million from the prior quarter, driven by $2.4 million from loan growth, slightly offset by a $0.5 million decrease from interest bearing cash income. Interest expense of $19.1 million increased $0.2 million, driven by growth and a mix shift in the deposit portfolio.
Credit Metrics – Nonperforming assets increased 3 bps to 1.68% of total assets at September 30, 2026, compared to June 30, 2026. Total nonaccrual loans at September 30, 2026, were $56.7 million, a decrease of $0.3 million or 0.6% compared to $57.0 million at June 30, 2026.
Classified and Criticized Loans – At September 30, 2026, special mention loans totaled $67.8 million, or 2.2% of total portfolio loans, compared to $61.5 million, or 2.0% of total portfolio loans, at June 30, 2026. At September 30, 2026, substandard loans totaled $71.4 million, or 2.3% of total portfolio loans, compared to $70.6 million, or 2.3% of total portfolio loans, at June 30, 2026.
OpenSky™
OpenSky™ results reflected continued loan balance growth, lower operating expenses and credit performance consistent with management expectations.
Accounts – During 3Q 2026, credit card accounts declined to 575.8 thousand, decreasing 12.8 thousand, or 2.2% (not annualized) from June 30, 2026, and decreasing 11.8 thousand, or 2.0% year-over-year.
Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $149.2 million at September 30, 2026 increased by $3.9 million, or 2.7% (not annualized), compared to June 30, 2026, and increased $12.7 million, or 9.3%, year-over-year. Deposit balances of $162.4 million at September 30, 2026, decreased $3.8 million compared to June 30, 2026 and decreased $4.5 million, or 2.7% year-over-year. Gross unsecured loan balances of $57.6 million at September 30, 2026, increased $6.4 million, or 12.4% (not annualized), compared to $51.2 million at June 30, 2026, and increased $18.0 million, or 45.5% (not annualized), year-over-year. Gross secured loan balances of $93.7 million at September 30, 2026, decreased $2.4 million, or 2.5% (not annualized), compared to $96.0 million at June 30, 2026, and decreased $5.1 million, or 5.2% (not annualized) year-over-year.
Net Interest Income – Interest income of $16.5 million increased $0.5 million compared to 2Q 2026, supported by higher average OpenSky™ credit card loan balances. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $143.9 million for 3Q 2026, increased $6.8 million, or 5.0% (not annualized), compared to 2Q 2026.
Fee Revenue – Total fee revenue of $4.6 million increased $0.1 million from the prior quarter primarily driven by continued growth in net interest income as loan balances increased.
Noninterest Expense – Total noninterest expense of $15.7 million increased $0.3 million compared to 2Q 2026, driven by increased spending on professional services.
OpenSky™ Credit – Portfolio credit metrics continued to be generally consistent with modeled expectations during 3Q 2026. The provision for credit losses of $4.1 million increased $0.1 million when compared to the prior quarter. Net charge-offs increased $0.3 million to $3.2 million in 3Q 2026 from $2.9 million in 2Q 2026. The $0.3 million increase in charge-offs was primarily driven by the secured product and is consistent with normal seasonality and expectations for the card business. On a year-over-year basis, net charge-offs for the secured product increased only $0.1 million, while net charge-offs for the unsecured product increased $1.0 million, driven by growth in the unsecured portfolio. The majority of OpenSky's™ unsecured loan product is offered to current and former secured card customers, where the Company has historical customer performance data. Unsecured loans have been offered by OpenSky™ since the fourth
(1) Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.
9
quarter of 2021 and have generally performed in alignment with management expectations over that time period. OpenSky™ has begun testing limited offers to new customers; this activity remains insignificant to the overall unsecured loan portfolio and total accounts, and balances are expected to remain de minimis through year-end as management monitors performance.
Capital Bank Home Loans
Originations of loans held for sale totaled $75.3 million during 3Q 2026, with $47.9 million of mortgage loans sold resulting in a gain on sale of loans of $1.4 million, representing a 2.93% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $106.9 million during 2Q 2026, with $87.1 million of mortgage loans sold resulting in a gain on sale of loans of $2.4 million, representing a 2.71% gain on sale as a percentage of total loans sold.
Windsor Advantage™
Gross government loan servicing revenue totaled $6.7 million, including $1.7 million of Capital Bank related servicing fees, during 3Q 2026. Gross government loan servicing revenue totaled $6.6 million, including $1.3 million of Capital Bank related servicing fees, during 2Q 2026. Windsor's™ total servicing portfolio was $3.5 billion at September 30, 2026, and $3.4 billion at June 30, 2026. In 3Q 2026, Windsor processed the closing of $183.9 million of government guaranteed loans, a 17.8% decrease from $223.6 million in 2Q 2026 and a 35.4% increase from $135.8 million in 3Q 2025.
10
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
Quarter Ended3Q26 vs 2Q263Q26 vs 3Q25
(in thousands, except per share data)September 30, 2026June 30, 2026September 30, 2025$ Change% Change$ Change% Change
Earnings Summary
Interest income$72,292 $69,959 $64,891 $2,333 3.3 %$7,401 11.4 %
Interest expense19,214 19,030 12,871 184 1.0 %6,343 49.3 %
Net interest income53,078 50,929 52,020 2,149 4.2 %1,058 2.0 %
Provision for credit losses4,903 3,585 4,650 1,318 36.8 %253 5.4 %
Provision for (release of) credit losses on unfunded commitments(54)65 217 (119)(183.1)%(271)(124.9)%
Noninterest income15,039 14,361 11,068 678 4.7 %3,971 35.9 %
Noninterest expense45,722 43,186 38,354 2,536 5.9 %7,368 19.2 %
Income before income taxes17,546 18,454 19,867 (908)(4.9)%(2,321)(11.7)%
Income tax expense4,424 4,204 4,802 220 5.2 %(378)(7.9)%
Net income$13,122 $14,250 $15,065 $(1,128)(7.9)%$(1,943)(12.9)%
Core net income(1)
$14,699 $14,250 $12,151 $449 3.2 %$2,548 21.0 %
Pre-tax pre-provision net revenue ("PPNR") (1)
$22,395 $22,104 $24,734 $291 1.3 %$(2,339)(9.5)%
Core PPNR(1)
$23,972 $22,104 $20,813 $1,868 8.5 %$3,159 15.2 %
Common Share Data
Earnings per share - Basic$0.81 $0.87 $0.91 $(0.06)(6.9)%$(0.10)(11.0)%
Earnings per share - Diluted$0.80 $0.87 $0.89 $(0.07)(8.0)%$(0.09)(10.1)%
Core earnings per share - Diluted(1)
$0.89 $0.87 $0.72 $0.02 2.3 %$0.17 23.6 %
Weighted average common shares - Basic16,294 16,288 16,586 
Weighted average common shares - Diluted16,482 16,373 16,844 
Return Ratios
Return on average assets (annualized)1.38 %1.52 %1.77 %
Core return on average assets (annualized)(1)
1.55 %1.52 %1.43 %
Return on average equity (annualized)12.16 %13.80 %15.57 %
Core return on average equity (annualized)(1)
13.63 %13.80 %12.56 %
Return on average tangible common equity (annualized)(1)
13.62 %15.51 %17.49 %
Core return on average tangible common equity (annualized)(1)
15.24 %15.51 %14.15 %
_______________
(1)Refer to Appendix for reconciliation of non-GAAP measures.
11
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (continued)
Nine Months Ended
September 30,
(in thousands, except per share data)20262025$ Change% Change
Earnings Summary
Interest income$210,221 $192,237 $17,984 9.4 %
Interest expense56,816 46,524 10,292 22.1 %
Net interest income153,405 145,713 7,692 5.3 %
Provision for credit losses11,502 10,977 525 4.8 %
Provision for credit losses on unfunded commitments216 217 (1)(0.5)%
Noninterest income42,773 36,723 6,050 16.5 %
Noninterest expense132,589 115,979 16,610 14.3 %
Income before income taxes51,871 55,263 (3,392)(6.1)%
Income tax expense12,481 13,130 (649)(4.9)%
Net income$39,390 $42,133 $(2,743)(6.5)%
Core net income(1)
$40,967 $41,253 $(286)(0.7)%
Pre-tax pre-provision net revenue ("PPNR") (1)
$63,589 $66,457 $(2,868)(4.3)%
Core PPNR(1)
$65,166 $65,200 $(34)(0.1)%
Common Share Data
Earnings per share - Basic$2.42 $2.54 $(0.12)(4.7)%
Earnings per share - Diluted$2.40 $2.50 $(0.10)(4.0)%
Core earnings per share - Diluted(1)
$2.49 $2.45 $0.04 1.6 %
Weighted average common shares - Basic16,309 16,611 
Weighted average common shares - Diluted16,437 16,850 
Return Ratios
Return on average assets (annualized)1.41 %1.71 %
Core return on average assets (annualized)(1)
1.47 %1.67 %
Return on average equity (annualized)12.66 %15.10 %
Core return on average equity (annualized) (1)
13.17 %14.79 %
Return on average tangible common equity (annualized)(1)
14.24 %17.06 %
Core return on average tangible common equity (annualized)(1)
14.80 %16.70 %
_______________
(1)Refer to Appendix for reconciliation of non-GAAP measures.
12
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (continued)
Quarter EndedQuarter Ended
September 30,June 30,March 31,December 31,
(in thousands, except per share data)20262025% Change202620262025
Balance Sheet Highlights
Assets$3,802,553 $3,389,442 12.2 %$3,889,938 $3,808,467 $3,606,207 
Investment securities available-for-sale214,486 232,640 (7.8)%219,947 230,525 230,083 
Mortgage loans held for sale74,251 14,146 424.9 %22,370 13,739 25,828 
Portfolio loans receivable (2)
3,114,264 2,821,983 10.4 %3,085,950 3,026,431 2,959,457 
Allowance for credit losses55,493 53,045 4.6 %54,431 54,680 54,660 
Goodwill25,969 25,969 — %25,969 25,969 25,969 
Intangible assets13,989 15,033 (6.9)%14,250 14,511 14,771 
Deposits3,319,135 2,912,053 14.0 %3,371,103 3,292,047 3,093,200 
FHLB borrowings — 22,000 (100.0)%50,000 50,000 50,000 
Other borrowed funds2,062 12,062 (82.9)%2,062 2,062 2,062 
Total stockholders' equity431,450 394,770 9.3 %422,205 408,859 401,757 
Tangible common equity (1)
391,492 353,768 10.7 %381,986 368,379 361,017 
Common shares outstanding16,329 16,589 (1.6)%16,289 16,286 16,373 
Book value per share$26.42 $23.80 11.0 %$25.92 $25.10 $24.54 
Tangible book value per share (1)
$23.98 $21.33 12.4 %$23.45 $22.62 $22.05 
Dividends per share
$0.14 $0.12 16.7 %$0.12 $0.12 $0.12 
_______________
(1)Refer to Appendix for reconciliation of non-GAAP measures.
(2)Loans are reflected net of deferred fees and costs.
13
Consolidated Statements of Income (Unaudited)
Three Months Ended
Nine Months Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025September 30, 2026September 30, 2025
Interest income
Loans, including fees$68,136 $65,362 $64,186 $64,933 $60,838 $197,684 $180,339 
Investment securities available-for-sale1,826 1,814 1,459 1,728 1,805 5,099 5,248 
Federal funds sold and other2,330 2,783 2,325 1,973 2,248 7,438 6,650 
Total interest income72,292 69,959 67,970 68,634 64,891 210,221 192,237 
Interest expense
Deposits18,959 18,522 18,070 17,805 12,732 55,551 45,966 
Borrowed funds255 508 502 550 139 1,265 558 
Total interest expense19,214 19,030 18,572 18,355 12,871 56,816 46,524 
Net interest income53,078 50,929 49,398 50,279 52,020 153,405 145,713 
Provision for credit losses4,903 3,585 3,014 3,988 4,650 11,502 10,977 
Provision for (release of) credit losses on unfunded commitments(54)65 205 (29)217 216 217 
Net interest income after provision for credit losses48,229 47,279 46,179 46,320 47,153 141,687 134,519 
Noninterest income
Service charges on deposits418 409 403 371 425 1,230 945 
Credit card fees4,520 4,395 4,692 4,837 4,509 13,607 12,529 
Mortgage banking revenue1,849 1,960 1,556 1,960 1,927 5,365 5,512 
Government lending revenue1,474 1,207 923 — 14 3,604 4,222 
Government loan servicing revenue5,073 5,303 4,345 4,036 4,265 14,721 11,477 
Loan servicing rights523 292 497 295 368 1,312 250 
Other income (loss)1,182 795 957 965 (440)2,934 1,788 
Total noninterest income15,039 14,361 13,373 12,464 11,068 42,773 36,723 
Noninterest expenses
Salaries and employee benefits21,116 20,067 20,317 17,914 17,728 61,500 54,255 
Occupancy and equipment4,144 3,942 3,562 2,638 2,849 11,648 8,754 
Professional fees4,919 4,125 4,965 4,294 2,131 14,009 6,665 
Data processing7,708 7,551 7,767 7,502 7,654 23,026 22,286 
Advertising1,566 1,816 1,466 1,398 1,714 4,848 4,864 
Loan processing543 1,475 1,383 1,152 1,114 3,401 2,836 
Merger-related expenses1,577 — — — 697 1,577 3,361 
Operational and other card fraud related losses930 690 690 750 923 2,310 2,759 
Regulatory assessment expenses930 925 941 858 740 2,796 2,513 
Other operating2,289 2,595 2,590 2,597 2,804 7,474 7,686 
Total noninterest expenses45,722 43,186 43,681 39,103 38,354 132,589 115,979 
Income before income taxes17,546 18,454 15,871 19,681 19,867 51,871 55,263 
Income tax expense4,424 4,204 3,853 4,644 4,802 12,481 13,130 
Net income$13,122 $14,250 $12,018 $15,037 $15,065 $39,390 $42,133 
14
Consolidated Balance Sheets
(unaudited)(unaudited)(unaudited)(audited)(unaudited)
(in thousands, except share data)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Assets
Cash and due from banks$15,563 $24,771 $20,182 $30,894 $25,724 
Interest-bearing deposits at other financial institutions246,469 393,428 379,069 224,611 163,078 
Federal funds sold— 60 60 60 59 
Total cash and cash equivalents262,032 418,259 399,311 255,565 188,861 
Investment securities available-for-sale214,486 219,947 230,525 230,083 232,640 
Restricted investments6,360 8,707 8,691 8,397 7,057 
Loans held for sale(1)
74,251 22,370 13,739 25,828 14,146 
Portfolio loans receivable, net of deferred fees and costs3,114,264 3,085,950 3,026,431 2,959,457 2,821,983 
   Less allowance for credit losses(55,493)(54,431)(54,680)(54,660)(53,045)
Total portfolio loans held for investment, net3,058,771 3,031,519 2,971,751 2,904,797 2,768,938 
Premises and equipment, net(1)
17,531 17,669 17,732 15,072 15,304 
Accrued interest receivable23,189 19,429 16,795 16,695 19,011 
Goodwill25,969 25,969 25,969 25,969 25,969 
Intangible assets13,989 14,250 14,511 14,771 15,033 
Loan servicing assets1,994 1,847 1,957 1,816 2,070 
Deferred tax asset18,206 16,504 15,187 14,992 14,885 
Bank owned life insurance46,654 46,260 45,871 45,488 45,105 
Other assets39,121 47,208 46,428 46,734 40,423 
Total assets$3,802,553 $3,889,938 $3,808,467 $3,606,207 $3,389,442 
Liabilities
Deposits
Noninterest-bearing$844,536 $897,363 $871,677 $852,741 $857,543 
Interest-bearing2,474,599 2,473,740 2,420,370 2,240,459 2,054,510 
Total deposits(1)
3,319,135 3,371,103 3,292,047 3,093,200 2,912,053 
Federal Home Loan Bank advances— 50,000 50,000 50,000 22,000 
Other borrowed funds2,062 2,062 2,062 2,062 12,062 
Accrued interest payable6,843 6,606 8,944 8,745 8,045 
Other liabilities43,063 37,962 46,555 50,443 40,512 
Total liabilities3,371,103 3,467,733 3,399,608 3,204,450 2,994,672 
Stockholders' equity
Common stock163 163 163 164 166 
Additional paid-in capital114,557 113,217 112,268 114,604 121,707 
Retained earnings325,944 315,103 302,808 292,749 279,693 
Accumulated other comprehensive loss(9,214)(6,278)(6,380)(5,760)(6,796)
Total stockholders' equity431,450 422,205 408,859 401,757 394,770 
Total liabilities and stockholders' equity$3,802,553 $3,889,938 $3,808,467 $3,606,207 $3,389,442 
_______________
(1)Balances include held for sale transactions in connection with sale of Chicago branch.
15
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
September 30, 2026		Three Months Ended
June 30, 2026		Three Months Ended
September 30, 2025
Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits$242,761 $2,218 3.62 %$295,167 $2,646 3.60 %$194,858 $2,139 4.36 %
Federal funds sold22 — — 60 — — 59 1 5.79 
Investment securities available-for-sale227,537 1,826 3.18 240,102 1,814 3.03 241,086 1,805 2.97 
Restricted investments7,441 112 5.97 8,701 137 6.32 7,052 108 6.06 
Loans held for sale (2)(3)
11,630 194 6.62 17,381 252 5.82 13,783 228 6.57 
Portfolio loans receivable(3)(4)
3,135,648 67,942 8.60 3,058,476 65,110 8.54 2,789,815 60,610 8.62 
Total interest earning assets3,625,039 72,292 7.91 3,619,887 69,959 7.75 3,246,653 64,891 7.93 
Noninterest earning assets(2)
140,002 141,624 131,643 
Total assets
$3,765,041 $3,761,511 $3,378,296 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts$332,684 768 0.92 $346,671 816 0.94 $282,873 388 0.54 
Savings22,479 115 2.03 17,790 70 1.58 12,887 15 0.47 
Money market accounts1,375,162 11,389 3.29 1,315,061 10,797 3.29 985,106 8,650 3.48 
Time deposits703,072 6,687 3.77 722,144 6,839 3.80 815,302 3,679 1.79 
Borrowed funds25,051 255 4.04 52,062 508 3.91 34,062 139 1.62 
Total interest-bearing liabilities(2)
2,458,448 19,214 3.10 2,453,728 19,030 3.11 2,130,230 12,871 2.40 
Noninterest-bearing liabilities:
Noninterest-bearing liabilities46,904 51,427 43,245 
Noninterest-bearing deposits(2)
831,739 842,312 820,899 
Stockholders’ equity
427,950 414,044 383,922 
Total liabilities and stockholders’ equity$3,765,041 $3,761,511 $3,378,296 
Net interest spread4.81 %4.64 %5.53 %
Net interest income$53,078 $50,929 $52,020 
Net interest margin(5)
5.81 %5.64 %6.36 %
_______________
(1)Annualized.
(2)Balances include held for sale transactions in connection with sale of Chicago branch.
(3)Average balances includes nonaccrual loans. As of September 30, 2026, nonaccrual loans of $0.3 million were included in Loans held for sale and $56.4 million in Portfolio loans receivable.
(4)For the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, Core Loan Yield was 6.83%, 6.77% and 6.74%, respectively.
(5)For the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, Core Net Interest Margin was 4.18%, 4.04% and 4.66%, respectively.

16
Nine Months Ended September 30,
20262025
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$261,412 $7,063 3.61 %$193,337 $6,342 4.39 %
Federal funds sold47 1 2.84 59 2 4.24 
Investment securities available-for-sale233,592 5,099 2.92 235,690 5,248 2.98 
Restricted investments8,191 373 6.09 6,622 306 6.17 
Loans held for sale (2)(3)
13,971 623 5.96 11,046 629 7.62 
Portfolio loans receivable(3)(4)
3,067,904 197,062 8.59 2,719,834 179,710 8.83 
Total interest earning assets3,585,117 210,221 7.84 3,166,588 192,237 8.12 
Noninterest earning assets(2)
141,434 131,582 
Total assets$3,726,551 $3,298,170 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts$314,587 $1,998 0.85 %$269,184 $1,147 0.57 %
Savings18,022 214 1.59 13,044 49 0.51 
Money market accounts1,293,968 31,666 3.27 927,044 24,071 3.47 
Time deposits755,275 21,673 3.84 830,451 20,699 3.33 
Borrowed funds42,959 1,265 3.94 34,062 558 2.19 
Total interest-bearing liabilities(2)
2,424,811 56,816 3.13 2,073,785 46,524 3.00 
Noninterest-bearing liabilities:
Noninterest-bearing liabilities54,081 48,374 
Noninterest-bearing deposits(2)
831,811 802,991 
Stockholders’ equity415,848 373,020 
Total liabilities and stockholders’ equity$3,726,551 $3,298,170 
Net interest spread4.71 %5.12 %
Net interest income$153,405 $145,713 
Net interest margin(5)
5.72 %6.15 %
_______________
(1)Annualized.
(2)Balances include held for sale transactions in connection with sale of Chicago branch.
(3)Includes nonaccrual loans.
(4)For the nine months ended September 30, 2026 and 2025, collectively. Core Loan Yield was 6.84% and 7.01%, respectively.
(5)For the nine months ended September 30, 2026 and 2025, collectively. Core Net Interest Margin was 4.12% and 4.48%, respectively.


17
The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, OpenSky™ (the Company’s credit card division), Windsor Advantage™ and Capital Bank Home Loans (the Company’s mortgage loan division).

The following schedules reported internally for performance assessment by the chief operating decision maker presents financial information for each reportable segment for the periods indicated. Total assets are presented as of September 30, 2026, June 30, 2026, and September 30, 2025.

Segments
For the three months ended September 30, 2026
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income$55,580 $16,517 $— $195 $72,292 
Interest expense19,128 — — 86 19,214 
Net interest income36,452 16,517 — 109 53,078 
Provision for credit losses833 4,070 — — 4,903 
Release of credit losses on unfunded commitments(54)— — — (54)
Net interest income after provision35,673 12,447 — 109 48,229 
Noninterest income
Service charges on deposits418 — — — 418 
Credit card fees— 4,520 — — 4,520 
Mortgage banking revenue490 — — 1,359 1,849 
Government lending revenue1,474 — — — 1,474 
Government loan servicing revenue(1)
(1,665)— 6,738 — 5,073 
Loan servicing rights523 — — — 523 
Other income877 31 5 269 1,182 
Total noninterest income2,117 4,551 6,743 1,628 15,039 
Noninterest expenses
Salaries and employee benefits
11,879 4,319 3,095 1,823 21,116 
Occupancy and equipment2,441 1,064 436 203 4,144 
Professional fees2,469 1,736 287 427 4,919 
Data processing442 7,152 62 52 7,708 
Advertising1,183 143 123 117 1,566 
Loan processing266 5 1 271 543 
Merger-related expenses1,577 — — — 1,577 
Operational and other card fraud related losses73 812 23 22 930 
Regulatory assessment expenses563 232 70 65 930 
Other operating1,332 262 563 132 2,289 
Total noninterest expenses22,225 15,725 4,660 3,112 45,722 
Net income (loss) before taxes$15,565 $1,273 $2,083 $(1,375)$17,546 
Total assets$3,607,589 $144,462 $28,508 $21,994 $3,802,553 
_______________
(1)Gross government loan servicing revenue totaled $6.7 million, including $1.7 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended September 30, 2026.
18
Segments
For the three months ended June 30, 2026
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income$53,712 $15,995 $— $252 $69,959 
Interest expense18,894 — — 136 19,030 
Net interest income34,818 15,995 — 116 50,929 
Provision for (release of) credit losses(432)4,017 — — 3,585 
Provision for credit losses on unfunded commitments65 — — — 65 
Net interest income after provision35,185 11,978 — 116 47,279 
Noninterest income
Service charges on deposits409 — — — 409 
Credit card fees— 4,395 — — 4,395 
Mortgage banking revenue278 — — 1,682 1,960 
Government lending revenue1,207 — — — 1,207 
Government loan servicing revenue(1)
(1,256)— 6,559 — 5,303 
Loan servicing rights292 — — — 292 
Other income618 30 — 147 795 
Total noninterest income1,548 4,425 6,559 1,829 14,361 
Noninterest expenses
Salaries and employee benefits
12,048 3,792 2,625 1,602 20,067 
Occupancy and equipment2,315 1,047 391 189 3,942 
Professional fees2,233 1,228 271 393 4,125 
Data processing452 6,983 67 49 7,551 
Advertising765 598 297 156 1,816 
Loan processing927 271 9 268 1,475 
Merger-related expenses— — — — — 
Operational and other card fraud related losses72 618 — — 690 
Regulatory assessment expenses583 214 64 64 925 
Other operating1,277 639 558 121 2,595 
Total noninterest expenses20,672 15,390 4,282 2,842 43,186 
Net income (loss) before taxes$16,061 $1,013 $2,277 $(897)$18,454 
Total assets$3,689,273 $143,716 $27,818 $29,131 $3,889,938 
_______________
(1)     Gross government loan servicing revenue totaled $6.6 million, including $1.3 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended June 30, 2026.

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 expense12,768 — — 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 rights368 — — — 368 
Other income (loss)(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 
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 $49.0 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.


20

Segments
For the nine months ended September 30, 2026
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income$162,024 $47,573 $— $624 $210,221 
Interest expense56,494 — — 322 56,816 
Net interest income105,530 47,573 — 302 153,405 
Provision for credit losses745 10,757 — — 11,502 
Provision for credit losses on unfunded commitments216 — — — 216 
Net interest income after provision104,569 36,816 — 302 141,687 
Noninterest income
Service charges on deposits1,230 — — — 1,230 
Credit card fees— 13,607 — — 13,607 
Mortgage banking revenue1,184 — — 4,181 5,365 
Government lending revenue3,604 — — — 3,604 
Government loan servicing revenue(1)
(4,183)— 18,904 — 14,721 
Loan servicing rights1,312 — — — 1,312 
Other income2,202 73 5 654 2,934 
Total noninterest income5,349 13,680 18,909 4,835 42,773 
Noninterest expenses
Salaries and employee benefits
36,017 11,998 8,384 5,101 61,500 
Occupancy and equipment6,626 3,229 1,219 574 11,648 
Professional fees7,170 4,825 836 1,178 14,009 
Data processing1,439 21,242 188 157 23,026 
Advertising2,666 1,333 480 369 4,848 
Loan processing2,269 323 32 777 3,401 
Merger-related expenses1,577 — — — 1,577 
Operational and other card fraud related losses210 2,055 23 22 2,310 
Regulatory assessment expenses1,744 661 200 191 2,796 
Other operating3,749 1,616 1,726 383 7,474 
Total noninterest expenses63,467 47,282 13,088 8,752 132,589 
Net income (loss) before taxes$46,451 $3,214 $5,821 $(3,615)$51,871 
Total assets$3,607,589 $144,462 $28,508 $21,994 $3,802,553 
_______________
(1)     Gross government loan servicing revenue totaled $18.9 million, including $4.2 million of servicing fees earned from the Commercial Bank by WindsorTM, for the nine months ended September 30, 2026.

21
Segments
For the nine months ended September 30, 2025
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income$147,128 $44,566 $— $543 $192,237 
Interest expense46,273 — — 251 46,524 
Net interest income100,855 44,566 — 292 145,713 
Provision for credit losses3,457 7,520 — — 10,977 
Provision for credit losses on unfunded commitments217 — — — 217 
Net interest income after provision97,181 37,046 — 292 134,519 
Noninterest income
Service charges on deposits945 — — — 945 
Credit card fees— 12,529 — — 12,529 
Mortgage banking revenue1,043 — — 4,469 5,512 
Government lending revenue4,222 — — — 4,222 
Government loan servicing revenue(1)
(3,164)— 14,641 — 11,477 
Loan servicing rights250 — — — 250 
Other income1,215 3 — 570 1,788 
Total noninterest income4,511 12,532 14,641 5,039 36,723 
Noninterest expenses
Salaries and employee benefits
32,275 10,019 7,370 4,591 54,255 
Occupancy and equipment5,115 1,693 1,495 451 8,754 
Professional fees3,802 1,714 389 760 6,665 
Data processing1,244 20,633 283 126 22,286 
Advertising2,207 2,177 215 265 4,864 
Loan processing1,867 58 128 783 2,836 
Merger-related expenses3,361 — — — 3,361 
Operational and other card fraud related losses131 2,628 — — 2,759 
Regulatory assessment expenses2,513 — — — 2,513 
Other operating4,719 1,441 1,222 304 7,686 
Total noninterest expenses57,234 40,363 11,102 7,280 115,979 
Net income (loss) before taxes$44,458 $9,215 $3,539 $(1,949)$55,263 
Total assets$3,213,222 $134,422 $21,743 $20,055 $3,389,442 
_______________
(1)     Gross government loan servicing revenue totaled $14.6 million, including $3.2 million of servicing fees earned from the Commercial Bank by WindsorTM, for the nine months ended September 30, 2025.








22

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
Quarter Ended
(in thousands, except per share data)September 30,
2026		June 30, 2026March 31,
2026		December 31,
2025		September 30,
2025
Earnings:
Net income$13,122 $14,250 $12,018 $15,037 $15,065 
Earnings per common share, diluted0.80 0.87 0.73 0.91 0.89 
Net interest margin5.81 %5.64 %5.71 %5.94 %6.36 %
Core net interest margin(2)
4.18 %4.04 %4.15 %4.19 %4.66 %
Return on average assets(1)
1.38 %1.52 %1.33 %1.71 %1.77 %
Return on average equity(1)
12.16 %13.80 %12.03 %15.23 %15.57 %
Efficiency ratio67.12 %66.14 %69.59 %62.32 %60.79 %
Balance Sheet:
Total portfolio loans receivable, net deferred fees$3,114,264 $3,085,950 $3,026,431 $2,959,457 $2,821,983 
Total deposits3,319,135 3,371,103 3,292,047 3,093,200 2,912,053 
Total assets3,802,553 3,889,938 3,808,467 3,606,207 3,389,442 
Total stockholders' equity431,450 422,205 408,859 401,757 394,770 
Total average portfolio loans receivable, net deferred fees3,135,648 3,058,476 3,008,187 2,902,033 2,789,815 
Total average deposits3,265,136 3,243,978 3,130,392 2,992,784 2,917,067 
Portfolio loans-to-deposit ratio (period-end balances)93.83 %91.54 %91.93 %95.68 %96.91 %
Portfolio loans-to-deposit ratio (average balances)96.03 %94.28 %96.10 %96.97 %95.64 %
Asset Quality Ratios:
Nonperforming assets to total assets1.59 %1.56 %1.56 %1.62 %1.54 %
Nonperforming loans to total loans1.82 %1.85 %1.83 %1.84 %1.85 %
Net charge-offs to average portfolio loans (1)
0.49 %0.50 %0.40 %0.32 %0.35 %
Allowance for credit losses to total loans1.78 %1.76 %1.81 %1.85 %1.88 %
Allowance for credit losses to non-performing loans97.94 %95.51 %98.67 %100.44 %101.53 %
Bank Capital Ratios:
Total risk based capital ratio(3)
12.52 %12.60 %12.52 %12.60 %12.95 %
Tier-1 risk based capital ratio(3)
11.26 %11.34 %11.26 %11.34 %11.69 %
Leverage ratio(3)
9.15 %8.97 %9.00 %9.24 %9.34 %
Common Equity Tier-1 capital ratio(3)
11.26 %11.34 %11.26 %11.34 %11.69 %
Tangible common equity(3)
9.34 %9.06 %8.40 %8.75 %9.06 %
Holding Company Capital Ratios:
Total risk based capital ratio(3)
14.58 %14.49 %14.25 %14.31 %15.25 %
Tier-1 risk based capital ratio(3)
13.32 %13.23 %12.99 %13.05 %13.62 %
Leverage ratio(3)
10.84 %10.51 %10.48 %10.71 %10.98 %
Common Equity Tier-1 capital ratio(3)
13.25 %13.16 %12.92 %12.98 %13.54 %
Tangible common equity(3)
11.02 %10.54 %9.73 %10.07 %10.60 %
_______________
(1)Annualized.
(2)Refer to Appendix for reconciliation of non-GAAP measures.
(3)Estimated ratio at September 30, 2026.

23

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (continued)
Quarter Ended
(in thousands, except per share data)September 30,
2026		June 30, 2026March 31,
2026		December 31,
2025		September 30,
2025
Composition of Loans:
Commercial real estate, non owner-occupied$545,612 $561,805 $522,498 $533,141 $509,878 
Commercial real estate, owner-occupied419,186 424,109 428,632 418,701 442,827 
Residential real estate784,220 797,745 795,505 765,808 740,060 
Construction real estate380,688 370,710 365,706 359,566 344,290 
Commercial and industrial774,297 731,575 730,576 698,289 619,148 
Lender finance55,601 50,020 43,775 41,421 31,883 
Business equity lines of credit4,355 4,930 4,170 3,818 2,931 
Credit card, net of reserve(4)
149,184 145,266 134,789 142,397 136,483 
Other consumer loans5,539 3,772 4,779 1,930 2,010 
Portfolio loans receivable$3,118,682 $3,089,932 $3,030,430 $2,965,071 $2,829,510 
Deferred origination fees, net(4,418)(3,982)(3,999)(5,614)(7,527)
Portfolio loans receivable, net$3,114,264 $3,085,950 $3,026,431 $2,959,457 $2,821,983 
Composition of Deposits:
Noninterest-bearing$844,536 $897,363 $871,677 $852,741 $857,543 
Interest-bearing demand323,139 391,544 341,723 257,233 275,767 
Savings30,538 23,077 21,471 11,679 12,835 
Money markets1,379,580 1,390,778 1,276,034 1,105,183 989,159 
Customer time deposits410,479 437,358 478,085 489,687 539,207 
Brokered time deposits330,863 230,983 303,057 376,677 237,542 
Total deposits$3,319,135 $3,371,103 $3,292,047 $3,093,200 $2,912,053 
Capital Bank Home Loan Metrics:
Origination of loans held for sale$75,348 $106,885 $72,933 $107,283 $80,651 
Mortgage loans sold47,911 87,059 52,423 82,998 66,409 
Gain on sale of loans1,404 2,362 1,496 2,145 1,698 
Purchase volume as a % of originations90.50 %86.14 %73.15 %72.77 %92.32 %
Gain on sale as a % of loans sold(5)
2.93 %2.71 %2.85 %2.58 %2.56 %
Mortgage commissions$591 $947 $594 $899 $656 
OpenSky™ Portfolio Metrics:
Open customer accounts575,841 588,594 588,190 585,492 587,641 
Secured credit card loans, gross$93,672 $96,026 $90,021 $97,313 $98,793 
Unsecured credit card loans, gross57,589 51,234 46,574 47,131 39,576 
Noninterest secured credit card deposits162,354 166,174 165,506 163,184 166,874 
_______________
(4)Credit card loans are presented net of reserve for interest and fees.
(5)Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.
24

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.
25

Appendix

Reconciliation of Non-GAAP Measures




Core Earnings MetricsQuarter Ended
(in thousands, except per share data)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Net Income$13,122 $14,250 $12,018 $15,037 $15,065 
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax— — — — (3,489)
Add: Merger-Related Expenses, Net of Tax1,577 — — — 575 
Core Net Income$14,699 $14,250 $12,018 $15,037 $12,151 
Weighted Average Common Shares - Diluted16,482 16,373 16,441 16,493 16,844 
Earnings per Share - Diluted$0.80 $0.87 $0.73 $0.91 $0.89 
Core Earnings per Share - Diluted$0.89 $0.87 $0.73 $0.91 $0.72 
Average Assets$3,765,041 $3,761,511 $3,651,812 $3,498,540 $3,378,296 
Return on Average Assets(1)
1.38 %1.52 %1.33 %1.71 %1.77 %
Core Return on Average Assets(1)
1.55 %1.52 %1.33 %1.71 %1.43 %
Average Equity$427,950 $414,044 $405,302 $391,750 $383,922 
Return on Average Equity(1)
12.16 %13.80 %12.03 %15.23 %15.57 %
Core Return on Average Equity(1)
13.63 %13.80 %12.03 %15.23 %12.56 %
Net Interest Income$53,078 $50,929 $49,398 $50,279 $52,020 
Noninterest Income15,039 14,361 13,373 12,464 11,068 
Total Revenue$68,117 $65,290 $62,771 $62,743 $63,088 
Noninterest Expense45,722 43,186 43,681 39,103 38,354 
Efficiency Ratio(2)
67.1 %66.1 %69.6 %62.3 %60.8 %
Net Interest Income$53,078 $50,929 $49,398 $50,279 $52,020 
Deduct: Income from the Call of Brokered Time Deposits— — — — 4,618 
Core Net Interest Income (a)$53,078 $50,929 $49,398 $50,279 $47,402 
Noninterest Income (b)15,039 14,361 13,373 12,464 11,068 
Core Revenue (a) + (b)$68,117 $65,290 $62,771 $62,743 $58,470 
Noninterest Expense$45,722 $43,186 $43,681 $39,103 $38,354 
Less: Merger-Related Expenses1,577 — — — 697 
Core Noninterest Expense$44,145 $43,186 $43,681 $39,103 $37,657 
Core Efficiency Ratio(2)
64.8 %66.1 %69.6 %62.3 %64.4 %
_______________
(1)Annualized.
(2)The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).

26

Appendix

Reconciliation of Non-GAAP Measures



Core Earnings MetricsNine Months Ended
(in thousands, except per share data)September 30, 2026September 30, 2025
Net Income$39,390 $42,133 
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax— (3,489)
Add: Merger-Related Expenses, Net of Tax1,577 2,609 
Core Net Income$40,967 $41,253 
Weighted Average Common Shares - Diluted16,437 16,850 
Earnings per Share - Diluted$2.40 $2.50 
Core Earnings per Share - Diluted$2.49 $2.45 
Average Assets$3,726,551 $3,298,170 
Return on Average Assets(1)
1.41 %1.71 %
Core Return on Average Assets(1)
1.47 %1.67 %
Average Equity$415,848 $373,020 
Return on Average Equity(1)
12.66 %15.10 %
Core Return on Average Equity(1)
13.17 %14.79 %
Net Interest Income$153,405 $145,713 
Noninterest Income42,773 36,723 
Total Revenue$196,178 $182,436 
Noninterest Expense132,589 115,979 
Efficiency Ratio(2)
67.6 %63.6 %
Net Interest Income$153,405 $145,713 
Deduct: Income from the Call of Brokered Time Deposits— 4,618 
Core Net Interest Income (a)$153,405 $141,095 
Noninterest Income (b)42,773 36,723 
Core Revenue (a) + (b)$196,178 $177,818 
Noninterest Expense$132,589 $115,979 
Less: Merger-Related Expenses1,577 3,361 
Core Noninterest Expense$131,012 $112,618 
Core Efficiency Ratio(2)
66.8 %63.3 %
_______________
(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 Net Interest MarginQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Net Interest Income$53,078 $50,929 $49,398 $50,279 $52,020 
Less: Credit Card Loan Income16,405 15,808 14,882 16,196 15,386 
Net Interest Income Excluding Credit Card36,673 35,121 34,516 34,083 36,634 
Average Interest Earning Assets3,625,039 3,619,887 3,509,115 3,360,576 3,246,653 
Less: Average Credit Card Loans143,858 137,052 133,712 133,858 129,100 
Average Core Interest Earning Assets$3,481,181 $3,482,835 $3,375,403 $3,226,718 $3,117,553 
Core Net Interest Margin4.18%4.04%4.15%4.19%4.66%

Core Net Interest MarginNine Months Ended
(in thousands)September 30, 2026September 30, 2025
Net Interest Income$153,405 $145,713 
Less: Credit Card Loan Income47,095 43,651 
Core Net Interest Income106,310 102,062 
Average Interest Earning Assets3,585,117 3,166,588 
Less: Average Credit Card Loans138,244 123,117 
Average Core Interest Earning Assets$3,446,873 $3,043,471 
Core Net Interest Margin4.12%4.48%
Core Loan YieldQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Portfolio Loans Receivable Interest Income$67,942 $65,110 $64,009 $64,670 $60,610 
Less: Credit Card Loan Income16,405 15,808 14,882 16,196 15,386 
Core Portfolio Loans Receivable Interest Income$51,537 $49,302 $49,127 $48,474 $45,224 
Average Portfolio Loans Receivable3,135,648 3,058,476 3,008,187 2,902,033 2,789,815 
Less: Average Credit Card Loans143,858 137,052 133,712 133,858 129,100 
Total Core Average Portfolio Loans Receivable$2,991,790 $2,921,424 $2,874,475 $2,768,175 $2,660,715 
Core Portfolio Loans Receivable Yield6.83%6.77%6.93%6.95%6.74%
Core Loan YieldNine Months Ended
(in thousands)September 30, 2026September 30, 2025
Portfolio Loans Receivable Interest Income$197,062 $179,710 
Less: Credit Card Loan Income47,095 43,651 
Core Portfolio Loans Receivable Interest Income$149,967 $136,059 
Average Portfolio Loans Receivable3,067,904 2,719,834 
Less: Average Credit Card Loans138,244 123,117 
Total Core Average Portfolio Loans Receivable$2,929,660 $2,596,717 
Core Portfolio Loans Receivable Yield6.84%7.01%
28

Appendix

Reconciliation of Non-GAAP Measures



Pre-tax, Pre-Provision Net Revenue ("PPNR")Quarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Net Income
$13,122 $14,250 $12,018 $15,037 $15,065 
Add: Income Tax Expense4,424 4,204 3,853 4,644 4,802 
Add: Provision for Credit Losses4,903 3,585 3,014 3,988 4,650 
Add: Provision for (Release of) Credit Losses on Unfunded Commitments(54)65 205 (29)217 
Pre-tax, Pre-Provision Net Revenue ("PPNR")$22,395 $22,104 $19,090 $23,640 $24,734 
Pre-tax, Pre-Provision Net Revenue ("PPNR")Nine Months Ended
(in thousands)September 30, 2026September 30, 2025
Net Income
$39,390 $42,133 
Add: Income Tax Expense12,481 13,130 
Add: Provision for Credit Losses11,502 10,977 
Add: Provision for Credit Losses on Unfunded Commitments216 217 
Pre-tax, Pre-Provision Net Revenue ("PPNR")$63,589 $66,457 
Core PPNRQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Net Income
$13,122 $14,250 $12,018 $15,037 $15,065 
Add: Income Tax Expense4,424 4,204 3,853 4,644 4,802 
Add: Provision for Credit Losses4,903 3,585 3,014 3,988 4,650 
Add: Provision for (Release of) Credit Losses on Unfunded Commitments(54)65 205 (29)217 
Deduct: Income from the Call of Brokered Time Deposits— — — — (4,618)
Add: Merger-Related Expenses1,577 — — — 697 
Core PPNR$23,972 $22,104 $19,090 $23,640 $20,813 
Core PPNRNine Months Ended
(in thousands)September 30, 2026September 30, 2025
Net Income
$39,390 $42,133 
Add: Income Tax Expense12,481 13,130 
Add: Provision for Credit Losses11,502 10,977 
Add: Provision for Credit Losses on Unfunded Commitments216 217 
Deduct: Income from the Call of Brokered Time Deposits— (4,618)
Add: Merger-Related Expenses1,577 3,361 
Core PPNR$65,166 $65,200 

29

Appendix

Reconciliation of Non-GAAP Measures



Allowance for Credit Losses to Total Portfolio LoansQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Allowance for Credit Losses$55,493 $54,431 $54,680 $54,660 $53,045 
Total Portfolio Loans3,114,264 3,085,950 3,026,431 2,959,457 2,821,983 
Allowance for Credit Losses to Total Portfolio Loans1.78%1.76%1.81%1.85%1.88%
Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio LoansQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Allowance for Credit Losses$55,493 $54,431 $54,680 $54,660 $53,045 
Less: Credit Card Allowance for Credit Losses9,777 8,904 7,802 8,232 7,413 
Commercial Bank Allowance for Credit Losses$45,716 $45,527 $46,878 $46,428 $45,632 
Total Portfolio Loans3,114,264 3,085,950 3,026,431 2,959,457 2,821,983 
Less: Gross Credit Card Loans144,258 141,446 131,887 137,905 130,897 
Commercial Bank Portfolio Loans$2,970,006 $2,944,504 $2,894,544 $2,821,552 $2,691,086 
Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans1.54%1.55%1.62%1.65%1.70%
Nonperforming Assets to Total AssetsQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Total Nonperforming Assets$60,518 $60,843 $59,273 $58,276 $52,247 
Total Assets3,802,553 3,889,938 3,808,467 3,606,207 3,389,442 
Nonperforming Assets to Total Assets1.59%1.56%1.56%1.62%1.54%
Nonperforming Loans to Total Portfolio LoansQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Total Nonperforming Loans$56,662 $56,987 $55,417 $54,421 $52,247 
Total Portfolio Loans3,114,264 3,085,950 3,026,431 2,959,457 2,821,983 
Nonperforming Loans to Total Portfolio Loans1.82%1.85%1.83%1.84%1.85%
30

Appendix

Reconciliation of Non-GAAP Measures



Net Charge-Offs to Average Portfolio LoansQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Total Net Charge-Offs$3,841 $3,834 $2,994 $2,373 $2,476 
Total Average Portfolio Loans3,135,648 3,058,476 3,008,187 2,902,033 2,789,815 
Net Charge-Offs to Average Portfolio Loans, Annualized0.49%0.50%0.40%0.32%0.35%
Net Charge-offs to Average Portfolio LoansNine Months Ended
(in thousands)September 30, 2026September 30, 2025
Total Net Charge-Offs$10,669 $10,008 
Total Average Portfolio Loans3,067,904 2,719,834 
Net Charge-Offs to Average Portfolio Loans, Annualized0.46%0.49%
Tangible Book Value per ShareQuarter Ended
(in thousands, except share and per share data)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Total Stockholders' Equity$431,450 $422,205 $408,859 $401,757 $394,770 
Less: Intangible Assets
39,958 40,219 40,480 40,740 41,002 
Tangible Common Equity$391,492 $381,986 $368,379 $361,017 $353,768 
Period End Shares Outstanding16,328,648 16,289,288 16,286,480 16,373,288 16,589,241 
Tangible Book Value per Share$23.98 $23.45 $22.62 $22.05 $21.33 
Return on Average Tangible Common EquityQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Net Income
$13,122 $14,250 $12,018 $15,037 $15,065 
Add: Intangible Amortization, Net of Tax195 201 197 200 199 
Net Tangible Income$13,317 $14,451 $12,215 $15,237 $15,264 
Average Equity427,950 414,044 405,302 391,750 383,922 
Less: Average Intangible Assets40,116 40,377 40,628 40,884 37,706 
Net Average Tangible Common Equity$387,834 $373,667 $364,674 $350,866 $346,216 
Return on Average Equity12.16 %13.80 %12.03 %15.23 %15.57 %
Return on Average Tangible Common Equity13.62 %15.51 %13.58 %17.23 %17.49 %
Return on Average Tangible Common EquityNine Months Ended
(in thousands)September 30, 2026September 30, 2025
Net Income
$39,390 $42,133 
Add: Intangible Amortization, Net of Tax594 599 
Net Tangible Income$39,984 $42,732 
Average Equity415,848 373,020 
Less: Average Intangible Assets40,372 38,048 
Net Average Tangible Common Equity$375,476 $334,972 
Return on Average Equity12.66 %15.10 %
Return on Average Tangible Common Equity14.24 %17.06 %
31

Appendix

Reconciliation of Non-GAAP Measures



Core Return on Average Tangible Common EquityQuarter Ended
(in thousands)September 30, 2026June 30, 2026March 31, 2026December 31, 2025September 30, 2025
Core Net Income$14,699 $14,250 $12,018 $15,037 $12,151 
Add: Intangible Amortization, Net of Tax195 201 197 200 199 
Core Net Tangible Income$14,894 $14,451 $12,215 $15,237 $12,350 
Core Return on Average Tangible Common Equity15.24 %15.51 %13.58 %17.23 %14.15 %
Core Return on Average Tangible Common EquityNine Months Ended
(in thousands)September 30, 2026September 30, 2025
Core Net Income$40,967 $41,253 
Add: Intangible Amortization, Net of Tax594 599 
Core Net Tangible Income$41,561 $41,852 
Core Return on Average Tangible Common Equity14.80 %16.70 %
32

ABOUT CAPITAL BANCORP, INC.
Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in four locations in the Washington, D.C., and Baltimore, Maryland metropolitan markets, one bank branch in Fort Lauderdale, Florida, one bank branch in Chicago, Illinois and one bank branch in Raleigh, North Carolina. Capital Bancorp had assets of approximately $3.8 billion at September 30, 2026 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company's website www.CapitalBankMD.com under its investor relations page.
FORWARD-LOOKING STATEMENTS
This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” "optimistic," “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company's Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors that could cause actual results to differ materially from those contained or implied in the forward-looking statements: the strength of the United States (“U.S.”) economy in general and the strength of the local economies in
which we conduct operations; geopolitical concerns, including acts or threats of terrorism and the ongoing wars in Iran and Ukraine; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; changes in U.S. trade policies, including the implementation of tariffs and other protectionist trade policies; the effects of federal government shutdowns, debt ceiling standoff, or other fiscal policy uncertainty; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them; climate change, and other catastrophic disasters; the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; the Company’s ability to remediate the material weakness in the Company’s internal control over financial reporting; the effect of the IFH acquisition or any other acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations, including the planned growth of Windsor AdvantageTM; the possibility that the Company's pending merger with Peoples does not close when expected or at all because required regulatory approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the possibility that the anticipated benefits and cost savings from the merger with Peoples may not be fully realized or may take longer to realize than expected; disruptions to the Company's business as a result of the announcement and pendency of the merger with Peoples; the possibility that the merger with Peoples may be more expensive to complete than anticipated, including as a result of unexpected factors or events; and our ability to manage the risks involved in the foregoing.
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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