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

	Quarter Ended						% Change(Annualized)
(in millions, except per share data)	1Q26		4Q25		1Q25		1Q26 vs 4Q25		1Q26 vs 1Q25
Balance Sheet Summary
Gross Loans⁽¹⁾	$	3,026	$	2,959	$	2,678	9.2	%	13.0	%
Total Deposits		3,292		3,093		2,891	26.1	%	13.9	%
Customer Deposits⁽²⁾		2,989		2,717		2,584	40.7	%	15.7	%
Tangible Book Value per share⁽³⁾	$	22.62	$	22.05	$	19.81	10.5	%	14.2	%

	GAAP													Core⁽³⁾
	Quarter Ended									Change				Quarter Ended									Change
(in millions, except per share data)	1Q26			4Q25			1Q25			1Q26 vs 4Q25		1Q26 vs 1Q25		1Q26			4Q25			1Q25			1Q26 vs 4Q25		1Q26 vs 1Q25
Earnings Summary
Net Income	$	12.0		$	15.0		$	13.9		(20.0	)%	(13.7	)%	$	12.0		$	15.0		$	14.9		(20.0	)%	(19.5	)%
Earnings per share - diluted	$	0.73		$	0.91		$	0.82		(19.8	)%	(11.2	)%	$	0.73		$	0.91		$	0.88		(19.8	)%	(16.9	)%
ROA		1.33	%		1.71	%		1.75	%	(38) bps		(42) bps			1.33	%		1.71	%		1.87	%	(38) bps		(54) bps
ROTCE⁽³⁾		13.58	%		17.23	%		17.57	%	(365) bps		(399) bps			13.58	%		17.23	%		18.77	%	(365) bps		(519) bps
	Including Card													Excluding Card
NIM		5.71	%		5.94	%		6.05	%	(23) bps		(34) bps			4.15	%		4.19	%		4.36	%	(4) bps		(21) bps

⁽¹⁾ Gross loans represent portfolio loans receivable, net of deferred fees and costs.

⁽²⁾ Customer deposits represents total deposits excluding brokered deposits.

⁽³⁾ As used in this press release, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

"We are pleased that the sustained organic growth at the Commercial Bank permits us to accommodate an increase in noninterest expenses, while, at the same time, providing our stockholders with reasonable returns and a steadily growing TBV," said Steven J. Schwartz, Chairman of the Company. "We expect these expenditures to enable technology advancements in customer experience and back office efficiency, and to support the introduction by OpenSky^™ of new products. We remain alert to the possibility that the markets in which we operate remain vulnerable to disruption from geopolitical and other developments, but have not yet seen any macroeconomic signs of credit deterioration in our markets."

First Quarter 2026 Highlights

Delivered strong balance sheet growth, with gross loans increasing 9.2% (annualized) from 4Q 2025, driven by continued momentum in the Commercial Bank
Generated robust deposit growth, with total deposits increasing 26.1% (annualized) from 4Q 2025. Excluding $107.8 million of deposit growth tied to a single customer relationship, total deposits grew 11.9% annualized while reducing brokered deposits by 19.5%
Achieved strong customer deposit growth, which increased 40.7% (annualized) from 4Q 2025, or 27.0% annualized excluding the relationship noted above
Continued tangible book value compounding, with tangible book value⁽³⁾ per share increasing 10.5% annualized from 4Q 2025
Expanded fee revenue, which increased 29.6% (annualized), primarily driven by SBA loan sales generated by a new team and increased USDA volume; fee revenue represented 21.3% of total revenue
Advanced strategic investments in unsecured card, card partnerships, data infrastructure, and back-office support to enhance scalability and long-term growth
Returned capital to shareholders, repurchasing $3.5 million of common stock under the Company's share repurchase program
The Company also declared a cash dividend on its common stock of $0.12 per share. The dividend is payable on May 27, 2026 to shareholders of record on May 11, 2026.

"We continue to demonstrate our ability to grow across the Company, highlighted by the increase in customer deposits, which positions us for continued balance sheet growth." said Ed Barry, CEO of the Company. "Our investment program is underway across the Commercial and OpenSky™ division, including technology and data initiatives that will improve our competitive position."

Consolidated financial performance

Net income of $12.0 million decreased $3.0 million compared to 4Q 2025, and earnings per share - diluted of $0.73 decreased $0.18 per share from 4Q 2025. Net income decreased $1.9 million, or 13.7%, from $13.9 million, or $0.82 per diluted share, for 1Q 2025. 1Q 2026 Core net income⁽¹⁾ of $12.0 million, or $0.73 per diluted share, decreased $3.0 million, or 20.1%, from 4Q 2025 Core net income of $15.0 million, or $0.91 per diluted share. 1Q 2026 Core net income decreased $2.9 million, or 19.3%, from 1Q 2025 core net income of $14.9 million, or $0.88 per diluted share.

Quarterly net interest income:

Net interest income of $49.4 million decreased $0.9 million, or 1.8% (not annualized), compared to 4Q 2025, and increased $3.4 million, or 7.3%, year-over-year.
- Interest income of $68.0 million decreased $0.7 million, or 1.0% (not annualized), compared to 4Q 2025, and increased $5.2 million, or 8.3%, year-over-year. The decrease from 4Q 2025 was primarily driven by a $1.3 million decrease from OpenSky™ due to changes in the rate environment, partially offset by a $0.7 million increase from the Commercial Bank driven by loan growth. The increase year-over-year was primarily driven by $4.6 million from the Commercial Bank due to strong balance sheet growth, and $0.6 million from OpenSky™ due to the growth from the unsecured loan product.
  - Interest income included $0.3 million from net purchase accounting accretion ("PAA") in 1Q 2026, compared to $0.1 million in 4Q 2025 and $0.3 million in net PAA in 1Q 2025.
- Interest expense of $18.6 million increased $0.2 million, or 1.2% (not annualized), compared to 4Q 2025, and increased $1.9 million, or 11.1%, year-over-year. The increase of $0.2 million compared to 4Q 2025, was primarily driven by a shift in deposit mix. The increase of $1.9 million year-over-year was driven by $0.9 million of lower PAA, $0.7 million from a shift in deposit mix and $0.3 of million higher borrowing costs.
  - Interest expense included a $0.1 million benefit from net PAA in 1Q 2026, compared to a $0.1 million benefit in 4Q 2025. There was a $1.1 million benefit from net PAA in 1Q 2025.

Quarterly provision:

The 1Q 2026 provision for credit losses was $3.0 million, a decrease of $1.0 million from 4Q 2025. Net charge-offs totaled $3.0 million, or 0.40% of portfolio loans (annualized), up from $2.4 million or 0.32% of portfolio loans (annualized), in 4Q 2025.
- Net charge-offs in the quarter include $3.1 million from OpenSky™ loans and a net recovery of $0.1 million from Commercial Bank loans. Net charge-offs for the Commercial Bank decreased $2.0 million from 4Q 2025 primarily driven by $1.9 million of legacy Commercial Bank loans that were charged off during 4Q 2025. OpenSky™ net charge-offs amounted to $0.5 million in 4Q 2025 compared to a net charge-offs of $3.1 million in 1Q 2026. During 4Q 2025, a $2.0 million credit to the allowance for credit losses was made to reflect recoveries resulting from the sale of $69.5 million of charged-off OpenSky™ credit card receivables.
- At March 31, 2026, the ACL Coverage Ratio was 1.81%, down 4 bps from December 31, 2025, and flat year-over-year.

Quarterly fee revenue:

Fee Revenue of $13.4 million increased $0.9 million, compared to 4Q 2025 and increased $0.8 million year-over-year. The increase of $0.9 million during 1Q 2026 was primarily from a $0.9 million increase in government lending revenue with other offsetting activity. Year-over-year fee revenue increased $0.8 million primarily due to a $0.8 million increase from government loan servicing and packaging revenue (Windsor™) with other offsetting activity. Fee revenue mix¹ was 21.3% of total revenue for 1Q 2026, compared to 19.9% during 4Q 2025, and 21.4% during 1Q 2025.

_____________________

¹ As used in this press release, Core net income, and Core noninterest expense, are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Quarterly noninterest expense:

Noninterest expense of $43.7 million increased $4.6 million compared to 4Q 2025 and increased $5.6 million compared to 1Q 2025. Core noninterest expense⁽¹⁾of $43.7 million increased $4.6 million compared to 4Q 2025 and increased $6.9 million compared to 1Q 2025. Core comparisons include:
- The increase of $4.6 million quarter-over-quarter was primarily driven by the following:
  - $2.4 million from personnel expenses, driven by planned investment and expansion in headcount;
  - $0.9 million from occupancy & equipment, driven by an increase in software contracts, acceleration of depreciation of capitalized assets related to OpenSky™ technology, and an increase in lease expenses;
  - $0.7 million from professional fees, driven by planned investment in OpenSky™ initiatives and other professional fees;
  - $0.3 million from data processing driven by OpenSky™ and other core processing costs; and
  - $0.2 million from loan processing, driven by loan expenses associated with our government guaranteed lending portfolio;
- Year-over-year expense growth of $6.9 million was driven by professional fees associated with investments in shared services areas and OpenSky™, personnel expense due to headcount growth, growth in data processing costs from OpenSky™ and core processing for the Commercial Bank, and an increase in loan processing costs and loan expenses associated with our government guaranteed lending portfolio.

Quarterly income taxes:

Income tax expense of $3.9 million, or 24.3% of pre-tax income for 1Q 2026, decreased $0.8 million from $4.6 million, or 23.6% of pre-tax income for 4Q 2025. The effective income tax rate change quarter-over-quarter was primarily due to certain one-time tax benefits recognized during 4Q 2025.

Total assets:

Total assets of $3.8 billion at March 31, 2026 increased $202.3 million, or 22.7% (annualized) from December 31, 2025. Total assets growth year-over-year was $458.7 million, or 13.7%. The growth quarter-over-quarter, and year-over-year, was primarily driven by increases in portfolio loans, and cash balances.

Gross Loans:

Gross Loans of $3.0 billion at March 31, 2026 increased $67.0 million, or 9.2% (annualized), from December 31, 2025 and increased $348.0 million, or 13.0%, year-over-year.
- Compared to December 31, 2025, growth was primarily driven by $32.3 million from commercial and industrial ("C&I"), $29.7 million from residential real estate, and $6.1 million from construction real estate. C&I contributed 48.2% of total loan growth in the quarter.
- C&l loans, plus owner-occupied CRE loans, totaled 38.3% of total portfolio loans at March 31, 2026, 37.7% for the prior quarter, and 37.9% at March 31, 2025.

_____________________¹ Fee revenue mix equals fee revenue divided by the sum of fee revenue and net interest income before provision for credit losses

Consolidated financial performance (Continued)

Deposits:

Total deposits of $3.3 billion at March 31, 2026 increased $198.8 million, or 26.1% (annualized), from December 31, 2025, and increased $400.7 million, or 13.9% from March 31, 2025.
- When excluding the decrease in brokered time deposits of $73.6 million, customer deposits increased $272.5 million or 40.7% (annualized), including $170.9 million of growth in customer money market deposits, $84.5 million of growth in interest-bearing demand accounts, $18.9 million of growth in noninterest-bearing deposits, and $9.8 million of growth in savings accounts, offset by a decrease of $11.6 million in customer time deposits.
  - - The growth in the quarter includes $107.8 million of deposits tied to one customer. Excluding this relationship, total deposits increased $91.0 million, or 11.9% (annualized) and customer deposits increased $164.7 million, or 27.0% (annualized).
  - The increase in total deposits of $400.7 million year-over-year was driven by $363.6 million in growth from customer money market deposits, $59.5 million from noninterest-bearing deposits, $45.3 million from interest-bearing demand accounts, and $8.7 million from savings accounts, offset by a decrease of $71.5 million from customer time deposits, and $4.7 million from brokered time deposits.

- Insured and protected¹ deposits were approximately $2.3 billion as of March 31, 2026 representing 69.4% of the Company's deposit portfolio.
- Low interest² and noninterest-bearing demand deposit account ("DDA") deposits of $1.2 billion, or 37.5% of deposits, increased $113.2 million, or 40.9% (annualized) from 4Q 2025, and increased $113.4 million, or 10.1% year-over-year.
  - - The growth in the quarter of low interest and noninterest-bearing DDA deposits includes $36.1 million of deposits tied to one customer, the same relationship mentioned above. Excluding this relationship, total low interest and noninterest-bearing DDA deposits increased $77.1 million, or 27.9% from 4Q 2025, and increased $77.3 million, or 27.9% year-over-year.
    - The average rate on the low interest and noninterest-bearing deposits was 0.16% for 1Q 2026, which increased 2 bps compared to 4Q 2025 and increased 1 bps year-over-year.

The average portfolio loans-to-deposit ratio was 96.1% for 1Q 2026, compared to 97.0% for 4Q 2025, and 95.2% for 1Q 2025.

Investment securities:

The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $230.5 million, or 6.1% of total assets, and an effective duration of 2.3 years, with U.S. Treasury Securities representing 61% of the overall investment portfolio at March 31, 2026. The accumulated other comprehensive income (loss) on the investment securities portfolio declined $0.6 million during the quarter to $(6.4) million after-tax as of March 31, 2026, which represents 1.6% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio.

Liquidity:

The Company maintains stable and diversified sources of contingent liquidity, generally consistent with prior quarter. Total available borrowing capacity as of March 31, 2026 was $809.5 million, compared to $816.9 million as of December 31, 2025, consisting of $705.3 million of available collateralized borrowing capacity, $96.0 million of unsecured lines of credit with other banks, and $8.2 million of unpledged investment securities available to collateralize potential additional borrowings.

_____________________

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

² Low interest deposits include interest-bearing demand and savings accounts

Consolidated financial performance (Continued)

Capital:

As of March 31, 2026, the Company reported a Common Equity Tier-1 capital ratio of 12.92%, compared to 12.98% at December 31, 2025. At March 31, 2026, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.

Shares repurchased and retired during the three months ended March 31, 2026, as part of the Company's stock repurchase program, totaled 122,757 shares at an average price of $28.89, for a total cost of $3.5 million. The share repurchases consisted of $0.9 million under the Company's previous stock repurchase program, which expired on February 28, 2026, and $2.6 million under the new stock repurchase program. As of March 31, 2026, there was $12.4 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on December 31, 2026.

Financial Metrics

Net Interest Margin:

NIM of 5.71% for 1Q 2026, decreased 23 bps compared to the prior quarter, and decreased 34 bps year-over-year. Core NIM⁽¹⁾ of 4.15% decreased 4 bps (but decreased 7 bps when excluding PAA) compared to the prior quarter, and decreased 21 bps year-over-year. Net PAA for 1Q 2026 was 5 bps for NIM and 5 bps for Core NIM⁽¹⁾.

The average yield on interest earning assets of 7.86% decreased 24 bps compared to the prior quarter and decreased 38 bps year-over-year. The decreases quarter-over-quarter and year-over-year were primarily due to OpenSky™ as a result of changes in the rate environment.
- The Core Loan Yield⁽¹⁾ of 6.93% for 1Q 2026 decreased 2 bps compared to 4Q 2025, and decreased 21 bps year-over-year. The decrease year-over-year was primarily a result of changes in the rate environment.
The total cost of deposits of 2.34% for 1Q 2026 decreased 2 bps compared to the prior quarter and decreased 8 bps year-over-year. The decrease year-over-year was primarily a result of a shift in the product mix of the portfolio, and changes in the rate environment.
The total cost of interest-bearing deposits of 3.17% for 1Q 2026 decreased 11 bps quarter-over-quarter, and decreased 20 bps year-over-year. The decreases quarter-over-quarter and year-over-year were due to a shift in product mix as well as changes in the rate environment.
Net PAA of $0.4 million, or 5 bps of NIM and 5 bps of Core NIM⁽¹⁾, during 1Q 2026, increased $0.2 million from 4Q 2025 mainly due to a loan payoff during the quarter. There was $1.4 million from net PAA during 1Q 2025.

Credit Metrics and Asset Quality:

Nonperforming assets were $59.3 million or 1.56% of total assets at March 31, 2026, an increase of $1.0 million but a decrease of 6 bps compared to December 31, 2025. The increase in nonperforming assets from 4Q 2025 was primarily driven by a $0.8 million increase from the legacy CBNK portfolio and a $0.2 million increase from the acquired IFH portfolio. Nonperforming assets increased $16.3 million or 28 bps year-over-year, mainly due to the $15.9 million increase during 3Q 2025 from two loan relationships acquired as part of the IFH transaction. At March 31, 2026, substandard loans totaled $71.8 million, or 2.4% of total portfolio loans, compared to $58.5 million, or 2.0% of total portfolio loans, at December 31, 2025 and $45.7 million, or 1.7% of total portfolio loans, at March 31, 2025. The increase from December 31, 2025 of $13.3 million was primarily driven by one legacy bank loan relationship, with three loans accounting for $9.7 million of the increase quarter-over-quarter. The $26.1 million year-over-year increase in substandard loans was primarily driven by $15.9 million from the two loan relationships acquired as part of the IFH transaction, and the one legacy bank relationship accounting for $9.7 million. At March 31, 2026, special mention loans totaled $60.3 million, or 2.0% of total portfolio loans, compared to $57.9 million, or 2.0% of total portfolio loans, at December 31, 2025, and $63.0 million, or 2.4% of total portfolio loans, at March 31, 2025.

Efficiency Ratio:

The efficiency ratio was 69.6% for 1Q 2026, compared to 62.3% for 4Q 2025 and 64.9% for 1Q 2025. The core efficiency ratio⁽¹⁾ was 69.6% for 1Q 2026, which increased from 62.3% compared to the prior quarter, and increased from 62.8% for 1Q 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.

Financial Metrics (Continued)

Returns:

ROA was 1.33% for 1Q 2026, compared to 1.71% for 4Q 2025, and 1.75% for 1Q 2025. Core ROA⁽¹⁾for 1Q 2026 was 1.33%, compared to 1.71% for 4Q 2025, and 1.87% for 1Q 2025.

ROE was 12.03% for 1Q 2026, compared to 15.23% for 4Q 2025, and 15.56% for 1Q 2025. Core ROE⁽¹⁾ was 12.03% for 1Q 2026, compared to 15.23% for 4Q 2025, and 16.64% for 1Q 2025.
ROTCE⁽¹⁾ was 13.58% for 1Q 2026, compared to 17.23% for 4Q 2025, and 17.57% for 1Q 2025. Core ROTCE⁽¹⁾ for 1Q 2026 was 13.58%, compared to 17.23% for 4Q 2025, and 18.77% for 1Q 2025.

Book Value:

Book value per common share of $25.10 at March 31, 2026, increased $0.57 when compared to December 31, 2025, and increased $2.91 when compared to March 31, 2025. Tangible book value per common share⁽¹⁾ increased $0.57, or 2.6% (not annualized), to $22.62 at March 31, 2026 when compared to December 31, 2025, and increased $2.81, or 14.2%, when compared to March 31, 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.

Reportable Segments

Commercial Bank

Loan Growth – Portfolio loans⁽¹⁾ increased $73.0 million at March 31, 2026 compared to December 31, 2025, driven by $32.3 million from C&I, $29.7 million from residential real estate, and $6.1 million from construction real estate. Portfolio loans increased $330.6 million at March 31, 2026 compared to March 31, 2025, driven by $136.2 million from C&I, $101.9 million from residential real estate, and $46.1 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 $52.7 million increased $0.7 million from the prior quarter, $0.5 million of which was due to growth in the Commercial Bank loan portfolio and $0.2 million of which was from higher loan PAA. Interest expense of $18.5 million increased $0.2 million, primarily due to a mix shift in the deposit portfolio.

Credit Metrics – Nonperforming assets decreased 7 bps to 1.64% of total assets at March 31, 2026 compared to December 31, 2025. Total nonaccrual loans at March 31, 2026 were $55.4 million, an increase of $1.0 million or 1.8% compared to $54.4 million at December 31, 2025.

Classified and Criticized Loans – At March 31, 2026, special mention loans totaled $60.3 million, or 2.0% of total portfolio loans, compared to $57.9 million, or 2.0% of total portfolio loans, at December 31, 2025. At March 31, 2026, substandard loans totaled $71.8 million, or 2.4% of total portfolio loans, compared to $58.5 million, or 2.0% of total portfolio loans, at December 31, 2025.

_____________________⁽¹⁾ Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.

OpenSky™

Accounts – During 1Q 2026, credit card accounts grew to 588.2 thousand, increasing 2.7 thousand, or 0.5% (not annualized) from December 31, 2025, and increasing 24.5 thousand, or 4.3% year-over-year.

Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $134.8 million at March 31, 2026 decreased by $7.6 million, or 5.3% (not annualized), compared to December 31, 2025 and increased $16.1 million, or 13.5%, year-over-year. Deposit balances of $165.5 million at March 31, 2026 increased $2.3 million compared to December 31, 2025 and decreased $3.3 million, or 1.9% year-over-year. Gross unsecured loan balances of $46.6 million at March 31, 2026 decreased $0.6 million, or 1.2% (not annualized), compared to $47.1 million at December 31, 2025, and increased $19.9 million year-over-year. Gross secured loan balances of $90.0 million at March 31, 2026 decreased $7.3 million, or 7.5% (not annualized), compared to $97.3 million at December 31, 2025, and decreased $3.5 million, or 3.8% (not annualized) year-over-year.

Net Interest Income – Interest income of $15.1 million decreased $1.3 million compared to 4Q 2025. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $133.7 million for 1Q 2026, decreased $0.1 million, or 0.1% (not annualized), compared to 4Q 2025.

Fee Revenue – Total fee revenue of $4.7 million decreased $0.1 million from the prior quarter primarily driven by lower interchange and other credit-card related fees.

Noninterest Expense – Total noninterest expense of $16.2 million increased $1.6 million compared to 4Q 2025, driven by professional fees associated with the legacy and unsecured products, investment in headcount for initiatives, the acceleration of depreciation of capitalized assets related to OpenSky™ technology, and data processing costs.

OpenSky™ Credit – Portfolio credit metrics continued to be consistent with modeled expectations during 1Q 2026. The provision for credit losses of $2.7 million increased $1.4 million when compared to the prior quarter, primarily due to a $2.0 million credit in 4Q 2025 to the allowance for credit losses that was made to reflect the debt sale. Excluding this item in 4Q 2025, the provision for credit losses would have decreased $0.6 million primarily due to lower balances in the loan portfolio. OpenSky's™ unsecured loan product is offered exclusively to current and former secured card customers. Unsecured loans have been offered by OpenSky™ since the fourth quarter of 2021 and have generally performed in alignment with management expectations over that time period.

Capital Bank Home Loans

Originations of loans held for sale totaled $72.9 million during 1Q 2026, with $52.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.5 million, representing a 2.85% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $107.3 million during 4Q 2025, with $83.0 million of mortgage loans sold resulting in a gain on sale of loans of $2.1 million, representing a 2.58% gain on sale as a percentage of total loans sold.

Windsor Advantage™

Gross government loan servicing revenue totaled $5.6 million, including $1.3 million of Capital Bank related servicing fees, during 1Q 2026. Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of Capital Bank related servicing fees, during 4Q 2025. Windsor's™ total servicing portfolio was $3.2 billion at March 31, 2026, and $3.1 billion at December 31, 2025.

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited

	Quarter Ended									1Q26 vs 4Q25					1Q26 vs 1Q25
(in thousands, except per share data)	March 31, 2026			December 31, 2025			March 31, 2025			$ Change			% Change		$ Change			% Change
Earnings Summary
Interest income	$	67,970		$	68,634		$	62,760		$	(664	)	(1.0	)%	$	5,210		8.3	%
Interest expense		18,572			18,355			16,713			217		1.2	%		1,859		11.1	%
Net interest income		49,398			50,279			46,047			(881	)	(1.8	)%		3,351		7.3	%
Provision for credit losses		3,014			3,988			2,246			(974	)	(24.4	)%		768		34.2	%
Provision for (release of) credit losses on unfunded commitments		205			(29	)		—			234		(806.9	)%		205		—	%
Noninterest income		13,373			12,464			12,549			909		7.3	%		824		6.6	%
Noninterest expense		43,681			39,103			38,053			4,578		11.7	%		5,628		14.8	%
Income before income taxes		15,871			19,681			18,297			(3,810	)	(19.4	)%		(2,426	)	(13.3	)%
Income tax expense		3,853			4,644			4,365			(791	)	(17.0	)%		(512	)	(11.7	)%
Net income	$	12,018		$	15,037		$	13,932		$	(3,019	)	(20.1	)%	$	(1,914	)	(13.7	)%

Pre-tax pre-provision net revenue ("PPNR")⁽¹⁾	$	19,090		$	23,640		$	20,543		$	(4,550	)	(19.2	)%	$	(1,453	)	(7.1	)%
Core PPNR⁽¹⁾	$	19,090		$	23,640		$	21,809		$	(4,550	)	(19.2	)%	$	(2,719	)	(12.5	)%

Common Share Data
Earnings per share - Basic	$	0.74		$	0.91		$	0.84		$	(0.17	)	(18.7	)%	$	(0.10	)	(11.9	)%
Earnings per share - Diluted	$	0.73		$	0.91		$	0.82		$	(0.18	)	(19.8	)%	$	(0.09	)	(11.0	)%
Core earnings per share - Diluted⁽¹⁾	$	0.73		$	0.91		$	0.88		$	(0.18	)	(19.8	)%	$	(0.15	)	(17.0	)%
Weighted average common shares - Basic		16,345			16,493			16,666
Weighted average common shares - Diluted		16,441			16,493			16,925

Return Ratios
Return on average assets (annualized)		1.33	%		1.71	%		1.75	%
Core return on average assets (annualized)⁽¹⁾		1.33	%		1.71	%		1.87	%
Return on average equity (annualized)		12.03	%		15.23	%		15.56	%
Core return on average equity (annualized)⁽¹⁾		12.03	%		15.23	%		16.64	%
Return on average tangible common equity (annualized)⁽¹⁾		13.58	%		17.23	%		17.57	%
Core return on average tangible common equity (annualized)⁽¹⁾		13.58	%		17.23	%		18.77	%

______________

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

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)

	Quarter Ended						Quarter Ended
	March 31,						December 31,		September 30,		June 30,
(in thousands, except per share data)	2026		2025		% Change		2025		2025		2025
Balance Sheet Highlights
Assets	$	3,808,467	$	3,349,805	13.7	%	$	3,606,207	$	3,389,442	$	3,388,662
Investment securities available-for-sale		230,525		213,452	8.0	%		230,083		232,640		228,923
Mortgage loans held for sale		13,739		30,005	(54.2	)%		25,828		14,146		15,933
Portfolio loans receivable⁽²⁾		3,026,431		2,678,406	13.0	%		2,959,457		2,821,983		2,739,808
Allowance for credit losses		54,680		48,454	12.8	%		54,660		53,045		47,447
Goodwill		25,969		24,085	7.8	%		25,969		25,969		22,478
Intangible assets		14,511		15,556	(6.7	)%		14,771		15,033		15,295
Deposits		3,292,047		2,891,333	13.9	%		3,093,200		2,912,053		2,940,738
FHLB borrowings		50,000		22,000	127.3	%		50,000		22,000		22,000
Other borrowed funds		2,062		12,062	(82.9	)%		2,062		12,062		12,062
Total stockholders' equity		408,859		369,577	10.6	%		401,757		394,770		380,035
Tangible common equity⁽¹⁾		368,379		329,936	11.7	%		361,017		353,768		342,262

Common shares outstanding		16,286		16,657	(2.2	)%		16,373		16,589		16,582
Book value per share	$	25.10	$	22.19	13.1	%	$	24.54	$	23.80	$	22.92
Tangible book value per share⁽¹⁾	$	22.62	$	19.81	14.2	%	$	22.05	$	21.33	$	20.64
Dividends per share	$	0.12	$	0.10	20.0	%	$	0.12	$	0.12	$	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
(in thousands)	March 31, 2026		December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Interest income
Loans, including fees	$	64,186	$	64,933		$	60,838		$	60,810		$	58,691
Investment securities available-for-sale		1,459		1,728			1,805			1,582			1,861
Federal funds sold and other		2,325		1,973			2,248			2,194			2,208
Total interest income		67,970		68,634			64,891			64,586			62,760

Interest expense
Deposits		18,070		17,805			12,732			16,722			16,512
Borrowed funds		502		550			139			218			201
Total interest expense		18,572		18,355			12,871			16,940			16,713

Net interest income		49,398		50,279			52,020			47,646			46,047
Provision for credit losses		3,014		3,988			4,650			4,081			2,246
Provision for (release of) credit losses on unfunded commitments		205		(29	)		217			—			—
Net interest income after provision for credit losses		46,179		46,320			47,153			43,565			43,801
Noninterest income
Service charges on deposits		403		371			425			262			258
Credit card fees		4,692		4,837			4,509			4,298			3,722
Mortgage banking revenue		1,556		1,960			1,927			1,754			1,831
Government lending revenue		923		—			14			3,112			1,096
Government loan servicing revenue		4,345		4,036			4,265			3,644			3,568
Loan servicing rights		497		295			368			(590	)		472
Other income (loss)		957		965			(440	)		626			1,602
Total noninterest income		13,373		12,464			11,068			13,106			12,549
Noninterest expenses
Salaries and employee benefits		20,317		17,914			17,728			18,460			18,067
Occupancy and equipment		3,562		2,638			2,849			2,995			2,910
Professional fees		4,965		4,294			2,131			2,422			2,112
Data processing		7,767		7,502			7,654			7,520			7,112
Advertising		1,466		1,398			1,714			1,371			1,779
Loan processing		1,383		1,152			1,114			979			743
Merger-related expenses		—		—			697			1,398			1,266
Operational and other card fraud related losses		690		750			923			933			903
Regulatory assessment expenses		941		858			740			884			889
Other operating		2,590		2,597			2,804			2,610			2,272
Total noninterest expenses		43,681		39,103			38,354			39,572			38,053
Income before income taxes		15,871		19,681			19,867			17,099			18,297
Income tax expense		3,853		4,644			4,802			3,963			4,365
Net income	$	12,018	$	15,037		$	15,065		$	13,136		$	13,932

Consolidated Balance Sheets
	(unaudited)			(audited)			(unaudited)			(unaudited)			(unaudited)
(in thousands, except share data)	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Assets
Cash and due from banks	$	20,182		$	30,894		$	25,724		$	26,843		$	27,836
Interest-bearing deposits at other financial institutions		379,069			224,611			163,078			247,704			266,092
Federal funds sold		60			60			59			59			59
Total cash and cash equivalents		399,311			255,565			188,861			274,606			293,987
Investment securities available-for-sale		230,525			230,083			232,640			228,923			213,452
Restricted investments		8,691			8,397			7,057			7,043			7,031
Loans held for sale		13,739			25,828			14,146			15,933			30,005
Portfolio loans receivable, net of deferred fees and costs		3,026,431			2,959,457			2,821,983			2,739,808			2,678,406
Less allowance for credit losses		(54,680	)		(54,660	)		(53,045	)		(47,447	)		(48,454	)
Total portfolio loans held for investment, net		2,971,751			2,904,797			2,768,938			2,692,361			2,629,952
Premises and equipment, net		17,732			15,072			15,304			14,863			15,085
Accrued interest receivable		16,795			16,695			19,011			15,149			19,458
Goodwill		25,969			25,969			25,969			22,478			24,085
Intangible assets		14,511			14,771			15,033			15,295			15,556
Loan servicing assets		1,957			1,816			2,070			2,221			2,244
Deferred tax asset		15,187			14,992			14,885			15,667			15,902
Bank owned life insurance		45,871			45,488			45,105			44,721			44,335
Other assets		46,428			46,734			40,423			39,402			38,713
Total assets	$	3,808,467		$	3,606,207		$	3,389,442		$	3,388,662		$	3,349,805

Liabilities
Deposits
Noninterest-bearing	$	871,677		$	852,741		$	857,543		$	836,979		$	812,224
Interest-bearing		2,420,370			2,240,459			2,054,510			2,103,759			2,079,109
Total deposits		3,292,047			3,093,200			2,912,053			2,940,738			2,891,333
Federal Home Loan Bank advances		50,000			50,000			22,000			22,000			22,000
Other borrowed funds		2,062			2,062			12,062			12,062			12,062
Accrued interest payable		8,944			8,745			8,045			8,158			9,995
Other liabilities		46,555			50,443			40,512			25,669			44,838
Total liabilities		3,399,608			3,204,450			2,994,672			3,008,627			2,980,228

Stockholders' equity
Common stock		163			164			166			166			167
Additional paid-in capital		112,268			114,604			121,707			121,362			123,476
Retained earnings		302,808			292,749			279,693			266,619			255,141
Accumulated other comprehensive loss		(6,380	)		(5,760	)		(6,796	)		(8,112	)		(9,207	)
Total stockholders' equity		408,859			401,757			394,770			380,035			369,577
Total liabilities and stockholders' equity	$	3,808,467		$	3,606,207		$	3,389,442		$	3,388,662		$	3,349,805

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 March 31, 2026						Three Months Ended December 31, 2025						Three Months Ended March 31, 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	$	246,346	$	2,200	3.62	%	$	196,281	$	1,868	3.78	%	$	203,053	$	2,138	4.27	%
Federal funds sold		60		1	6.76			60		1	6.61			58		1	6.99
Investment securities available-for-sale		233,165		1,459	2.54			238,295		1,728	2.88			235,605		1,861	3.20
Restricted investments		8,441		124	5.96			6,725		104	6.14			5,761		69	4.86
Loans held for sale		12,916		177	5.56			17,118		263	6.10			9,356		238	10.32
Portfolio loans receivable⁽²⁾⁽³⁾		3,008,187		64,009	8.63			2,902,033		64,670	8.84			2,634,110		58,453	9.00
Total interest earning assets		3,509,115		67,970	7.86			3,360,512		68,634	8.10			3,087,943		62,760	8.24
Noninterest earning assets		142,697						138,028						134,021
Total assets	$	3,651,812					$	3,498,540					$	3,221,964

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	263,645		414	0.64		$	269,342		366	0.54		$	242,355		368	0.62
Savings		13,701		30	0.89			12,033		11	0.36			13,204		18	0.55
Money market accounts		1,189,642		9,479	3.23			1,061,293		9,124	3.41			869,978		7,399	3.45
Time deposits		842,137		8,147	3.92			812,186		8,304	4.06			859,729		8,727	4.12
Borrowed funds		52,062		502	3.91			46,497		550	4.69			34,062		201	2.39
Total interest-bearing liabilities		2,361,187		18,572	3.19			2,201,351		18,355	3.31			2,019,328		16,713	3.36
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		64,056						67,509						56,503
Noninterest-bearing deposits		821,267						837,930						783,018
Stockholders' equity		405,302						391,750						363,115
Total liabilities and stockholders' equity	$	3,651,812					$	3,498,540					$	3,221,964

Net interest spread					4.67	%					4.79	%					4.88	%
Net interest income			$	49,398					$	50,279					$	46,047
Net interest margin⁽⁴⁾					5.71	%					5.94	%					6.05	%

_______________

⁽¹⁾Annualized.

⁽²⁾Includes nonaccrual loans.

⁽³⁾For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, collectively, Core Loan Yield was 6.93%, 6.95% and 7.14%, respectively.

⁽⁴⁾For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, collectively, Core Net Interest Margin was 4.15%, 4.19% and 4.36%, respectively.

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

The following schedules reported internally for performance assessment by the chief operating decision maker presents financial information for each reportable segment for the periods indicated. Total assets are presented as of March 31, 2026, December 31, 2025, and March 31, 2025.

Segments

For the three months ended March 31, 2026

(in thousands)

Commercial

Bank

OpenSky™

Windsor

Advantage^™

CBHL

Consolidated

Interest income

52,732

15,061

—

177

67,970

Interest expense

18,472

—

100

18,572

Net interest income

34,260

15,061

—

49,398

Provision for credit losses

344

2,670

—

3,014

Provision for credit losses on unfunded commitments

205

—

205

Net interest income after provision

33,711

12,391

—

46,179

Noninterest income

Service charges on deposits

403

—

403

Credit card fees

—

4,692

—

4,692

Mortgage banking revenue

416

—

1,140

1,556

Government lending revenue

923

—

923

Government loan servicing revenue⁽¹⁾

(1,262

)

—

5,607

—

4,345

Loan servicing rights

497

—

497

Other income

707

—

238

957

Total noninterest income

1,684

4,704

5,607

1,378

13,373

Noninterest expenses

Salaries and employee benefits

12,090

3,887

2,664

1,676

20,317

Occupancy and equipment

1,870

1,118

392

182

3,562

Professional fees

2,468

1,861

278

358

4,965

Data processing

545

7,107

7,767

Advertising

718

592

1,466

Loan processing

1,076

238

1,383

Merger-related expenses

—

Operational and other card fraud related losses

625

—

690

Regulatory assessment expenses

598

215

941

Other operating

1,140

715

605

130

2,590

Total noninterest expenses

20,570

16,167

4,146

2,798

43,681

Net income (loss) before taxes

14,825

928

1,461

(1,343

)

15,871

Total assets

3,624,207

135,414

28,535

20,311

3,808,467

________________________

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

Segments

For the three months ended December 31, 2025

(in thousands)

Commercial

Bank

OpenSky™

Windsor

Advantage™

CBHL

Consolidated

Interest income⁽²⁾

51,994

16,377

—

263

68,634

Interest expense⁽³⁾

18,230

—

125

18,355

Net interest income

33,764

16,377

—

138

50,279

Provision for credit losses

2,715

1,273

—

3,988

Release of credit losses on unfunded commitments

(29

)

—

(29

)

Net interest income after provision

31,078

15,104

—

138

46,320

Noninterest income

Service charges on deposits

371

—

371

Credit card fees

—

4,837

—

4,837

Mortgage banking revenue

433

—

1,527

1,960

Government lending revenue

—

Government loan servicing revenue⁽¹⁾

(952

)

—

4,988

—

4,036

Loan servicing rights

295

—

295

Other income

698

—

257

965

Total noninterest income

845

4,847

4,988

1,784

12,464

Noninterest expenses

Salaries and employee benefits

11,071

3,038

2,425

1,380

17,914

Occupancy and equipment

1,773

688

137

2,638

Professional fees

3,047

947

247

4,294

Data processing

1,026

6,687

(165

)

(46

)

7,502

Advertising

608

634

)

159

1,398

Loan processing

101

475

163

413

1,152

Merger-related expenses

—

Operational and other card fraud related losses

737

—

750

Regulatory assessment expenses

230

388

143

858

Other operating

639

966

763

229

2,597

Total noninterest expenses

18,508

14,560

3,419

2,616

39,103

Net income (loss) before taxes

13,415

5,391

1,569

(694

)

19,681

Total assets

3,407,326

140,914

25,993

31,974

3,606,207

________________________

⁽¹⁾Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of servicing fees earned from the Commercial Bank by Windsor™, for the three months ended December 31, 2025.

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

472

—

472

Non-recurring equity and debt investment write-down

—

Other income

1,423

139

1,603

Total noninterest income

2,474

3,733

4,636

1,707

12,550

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

Merger-related expenses

1,266

—

1,266

Operational and other card fraud related losses

872

—

903

Regulatory assessment expenses

865

889

Other operating

1,409

516

254

2,272

Total noninterest expenses

18,560

13,302

3,660

2,531

38,053

Net income (loss) before taxes

14,983

3,075

976

(736

)

18,298

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.

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
	Quarter Ended
(in thousands, except per share data)	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Earnings:
Net income	$	12,018		$	15,037		$	15,065		$	13,136		$	13,932
Earnings per common share, diluted		0.73			0.91			0.89			0.78			0.82
Net interest margin		5.71	%		5.94	%		6.36	%		6.04	%		6.05	%
Core net interest margin⁽²⁾		4.15	%		4.19	%		4.66	%		4.42	%		4.36	%
Return on average assets⁽¹⁾		1.33	%		1.71	%		1.77	%		1.60	%		1.75	%
Return on average equity⁽¹⁾		12.03	%		15.23	%		15.57	%		14.17	%		15.56	%
Efficiency ratio		69.59	%		62.32	%		60.79	%		65.14	%		64.94	%

Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	3,026,431		$	2,959,457		$	2,821,983		$	2,739,808		$	2,678,406
Total deposits		3,292,047			3,093,200			2,912,053			2,940,738			2,891,333
Total assets		3,808,467			3,606,207			3,389,442			3,388,662			3,349,805
Total stockholders' equity		408,859			401,757			394,770			380,035			369,577
Total average portfolio loans receivable, net deferred fees		3,008,187			2,902,033			2,789,815			2,733,865			2,634,110
Total average deposits		3,130,392			2,992,784			2,917,067			2,841,153			2,768,284
Portfolio loans-to-deposit ratio (period-end balances)		91.93	%		95.68	%		96.91	%		93.17	%		92.64	%
Portfolio loans-to-deposit ratio (average balances)		96.10	%		96.97	%		95.64	%		96.22	%		95.15	%

Asset Quality Ratios:
Nonperforming assets to total assets		1.56	%		1.62	%		1.54	%		1.07	%		1.28	%
Nonperforming loans to total loans		1.83	%		1.84	%		1.85	%		1.32	%		1.60	%
Net charge-offs to average portfolio loans⁽¹⁾		0.40	%		0.32	%		0.35	%		0.75	%		0.38	%
Allowance for credit losses to total loans		1.81	%		1.85	%		1.88	%		1.73	%		1.81	%
Allowance for credit losses to non-performing loans		98.67	%		100.44	%		101.53	%		131.19	%		112.86	%

Bank Capital Ratios:
Total risk based capital ratio		12.52	%		12.60	%		12.95	%		13.13	%		12.93	%
Tier-1 risk based capital ratio		11.26	%		11.34	%		11.69	%		11.87	%		11.67	%
Leverage ratio		9.00	%		9.24	%		9.34	%		9.39	%		9.27	%
Common Equity Tier-1 capital ratio		11.26	%		11.34	%		11.69	%		11.87	%		11.67	%
Tangible common equity		8.40	%		8.75	%		9.06	%		8.84	%		8.66	%
Holding Company Capital Ratios:
Total risk based capital ratio

CBNK Continues Strong Growth With Accelerated Investment Underway