Second Quarter 2025 Highlights

GAAP Net Income of $13.1 million, or $0.78 per share, and return on average assets ("ROA") of 1.60%
- Core net income⁽¹⁾ of $14.2 million, or $0.85 per share, and core ROA⁽¹⁾ of 1.73%
Book value per common share of $22.92 at June 30, 2025, increased $0.73 compared to 1Q 2025, and increased $3.66 when compared to 2Q 2024
- Tangible book value per share⁽¹⁾ of $20.64, increased 4.2% (not annualized), or $0.83 as compared to 1Q 2025, and increased 7.2%, or $1.38 compared to 2Q 2024
Return on average equity ("ROE") of 14.17%, and return on average tangible common equity ("ROTCE")⁽¹⁾ of 16.10%
- Core ROE⁽¹⁾ of 15.33%, and core ROTCE⁽¹⁾ of 17.39%
Gross Loans⁽²⁾ grew $61.4 million, or 9.2% (annualized), during 2Q 2025, and growth of $718.2 million year-over-year including $344.7 million from organic growth and $373.5 million from the IFH acquisition
Total deposits grew $49.4 million, or 6.9% (annualized), from 1Q 2025. Year-over-year growth of $840.3 million includes $381.3 million from organic growth, and $459.0 million from the acquisition of IFH, or 44.2% from 2Q 2024
- Customer Deposit³ growth of $87.1 million, or 13.5% (annualized) from 1Q 2025, and $725.3 million year-over-year, or 37.3% from 2Q 2024, including $431.8 million of organic growth, and $293.5 million from the acquisition of IFH
Net Interest Income increased $1.6 million, or 3.5% (not annualized), from 1Q 2025 due to strong balance sheet growth from the Commercial Bank , and increased $10.6 million, or 28.6%, year-over-year, primarily driven by strong organic growth and the acquisition of IFH
Net Interest Margin ("NIM") of 6.04% decreased 1 bps compared to 1Q 2025 and decreased 42 bps compared to 2Q 2024 due to the acquisition of commercial loans from IFH, diluting the impact from OpenSky™
- Commercial Bank NIM⁽¹⁾ of 4.36% increased by 4 bps, or 7 bps when excluding purchase accounting accretion ("PAA"), when compared to 1Q 2025, and 46 bps,or 30 bps excluding PAA, compared to 2Q 2024
  - 2Q 2025 net PAA of $1.3 million, or 16 bps of NIM and Commercial Bank NIM⁽¹⁾, decreased $0.2 million, or 3 bps, compared to 1Q 2025
The allowance for credit losses to total loans ("ACL Coverage Ratio") equaled 1.73% at June 30, 2025 down 8 bps from March 31, 2025 and up 20 bps from June 30, 2024, primarily due to the acquisition of IFH loans. The Commercial Bank ACL Coverage Ratio⁽¹⁾ equaled 1.56% at June 30, 2025, compared to 1.67% at March 31, 2025
Fee Revenue (noninterest income) totaled $13.1 million, or 21.6% of total revenue for 2Q 2025, an increase of $0.6 million, from 1Q 2025 and an increase of $6.2 million, from 2Q 2024
Cash Dividend of $0.12 per share declared by the Board of Directors, an increase of 20% from 1Q 2025
Shares repurchased and retired during the three months ended June 30, 2025, as part of the Company's stock repurchase program, totaled 93,170 shares at an average price of $26.66, for a total cost of $2.5 million including commissions

_{^{____________________________________________

(1)} As used in this press release, core net income, core ROA, core ROE, ROTCE, core ROTCE, Commercial Bank NIM, Commercial Bank ACL Coverage Ratio, and Tangible Book Value are non–U.S. generally accepted accounting principles ("GAAP") financial measures. These non-GAAP financial metrics exclude merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

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

_{⁽³⁾ Customer Deposits represents total deposits excluding brokered deposits}

ROCKVILLE, Md., July 28, 2025 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company") (NASDAQ:CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported net income of $13.1 million, or $0.78 per diluted share, for 2Q 2025, compared to net income of $13.9 million, or $0.82 per diluted share, for 1Q 2025, and $8.2 million, or $0.59 per diluted share, for 2Q 2024. Core net income⁽⁴⁾ for 2Q 2025 of $14.2 million, or $0.85 per diluted share, compared to $14.9 million, or $0.88 per diluted share in 1Q 2025.

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

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

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

Reconciliation of GAAP Net Income to Core (Non-GAAP) Net Income

The following table provides a reconciliation of the Company's net income under GAAP to Core net income (non-GAAP) results excluding merger-related expenses and other one-time non-recurring transactions.

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

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

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

_{^{____________________________________________

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

Second Quarter 2025 Results

Earnings Summary

Net income of $13.1 million, or $0.78 per diluted share, compared to net income of $13.9 million, or $0.82 per diluted share, for 1Q 2025, and $8.2 million or $0.59 per diluted share, for 2Q 2024. 2Q 2025 core net income⁽⁵⁾ of $14.2 million, or $0.85 per diluted share, compared to 1Q 2025 of $14.9 million, or $0.88 per diluted share.

Net interest income of $47.6 million increased $1.6 million, or 3.5% (not annualized), compared to 1Q 2025, and increased $10.6 million, or 28.6%, year-over-year.
- Interest income of $64.6 million increased $1.8 million, or 2.9% (not annualized), over 1Q 2025, and increased $14.0 million, or 27.6%, year-over-year. The increase quarter-over-quarter was driven by an increase from Commercial Bank loan interest income due to portfolio growth, while the increase year-over-year was primarily driven by organic growth and the acquisition of IFH.
  - Interest income included $0.4 million from net purchase accounting accretion in 2Q 2025, flat compared to 1Q 2025. There was no impact related to purchase accounting during 2Q 2024.
- Interest expense of $16.9 million increased $0.2 million, or 1.4% (not annualized) compared to 1Q 2025, and increased $3.4 million, or 24.9%, year-over-year. The increase quarter-over-quarter was mainly due to a lower benefit from net purchase accounting accretion, as higher deposit volumes were offset by lower deposit rates. The increase year-over-year was driven by organic growth and the acquisition of IFH.
  - Interest expense included a $0.9 million benefit from net purchase accounting accretion in 2Q 2025 compared to a $1.1 million benefit in 1Q 2025. There was no impact related to purchase accounting during 2Q 2024.
The 2Q 2025 provision for credit losses was $4.1 million, an increase of $1.8 million from 1Q 2025. The increase over the prior quarter was primarily driven by $1.1 million from OpenSky™ due to higher volumes in both the secured and unsecured portfolio, and $0.7 million from the Commercial Bank due to higher charge-offs not previously provided for. Net charge-offs totaled $5.1 million, or 0.75% of portfolio loans (annualized), including $3.0 million from the Commercial Bank and $2.1 million from OpenSky™ loans. The Commercial Bank charge-offs were driven by $2.1 million from balances charged off from the acquired IFH portfolio, including a loan sale resulting in a charge-off of $1.5 million. Net charge-offs for 1Q 2025 totaled $2.4 million, or 0.38% of portfolio loans (annualized), mainly driven by $2.3 million from OpenSky™ loans.
- At June 30, 2025, the ACL Coverage Ratio was 1.73%, down 8 bps from the ratio of 1.81% at March 31, 2025, primarily due to the sale during the quarter of a purchase credit deteriorated ("PCD") loan acquired from IFH .

Earnings Summary (Continued)

Fee Revenue of $13.1 million increased $0.6 million, compared to 1Q 2025 and increased $6.2 million year-over-year primarily due to the contributions made by the businesses IFH brought to the merged entity. During 2Q 2025, core fee revenue⁽⁶⁾of $13.1 million increased $0.6 million as a result of $2.0 million higher government lending revenue (net gain on sale), $0.6 million higher credit card fees from OpenSky™, and $0.1 million higher government loan servicing revenue (Windsor Advantage™), offset by a $1.1 million negative impact from the fair value adjustment related to the loan servicing portfolio, and $1.0 million lower other income. Core fee revenue mix was 21.6% of total revenue for 2Q 2025, compared to 21.4% during 1Q 2025, and 15.7% during 2Q 2024.
Noninterest expense of $39.6 million increased $1.5 million compared to 1Q 2025 and $10.1 million compared to 2Q 2024. Core noninterest expense⁽¹⁾of $38.2 million increased $1.4 million compared to 1Q 2025 and $8.8 million compared to 2Q 2024. Core comparisons include:
- The increase of $1.4 million quarter-over-quarter was driven by an increase from personnel expenses, growth from business related activities including costs associated with servicing the USDA portfolio, and continued investments in technology including the implementation of a new digital banking solution.
- Year-over-year expense growth of $8.8 million was primarily due to the acquisition of IFH.
Income tax expense of $4.0 million, or 23.2% of pre-tax income for 2Q 2025, decreased $0.4 million from $4.4 million, or 23.9% of pre-tax income for 1Q 2025. The core effective income tax rate⁽¹⁾ for 2Q 2025 and 1Q 2025 would have been 23.2% and 23.7%, respectively.

_{^{____________________________________________

1}As used in this press release, core fee revenue, core noninterest expense, and core effective income tax rate are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Balance Sheet

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

The $38.9 million growth in total assets quarter-over-quarter is primarily driven by Gross Loan growth of $61.4 million, Investment portfolio growth of $15.5 million, partially offset by decreases in total Cash of $19.4 million and Loans Held for Sale of $13.7 million.
Gross Loans of $2.74 billion at June 30, 2025 increased $61.4 million, or 9.2% (annualized), from March 31, 2025 and increased $718.2 million year-over-year including $373.5 million from the acquisition of IFH and $344.7 million of organic growth.
- Compared to March 31, 2025, the growth of $61.4 million was primarily driven by $26.7 million from commercial real estate, $17.1 million from residential real estate, $12.3 million from OpenSky™, and $9.3 million from lender finance.
- Commercial and industrial loans, plus owner-occupied commercial real estate loans totaled 37.6% of total portfolio loans at June 30, 2025, consistent with the prior quarter, and 28.4% at June 30, 2024.
Total deposits of $2.94 billion at June 30, 2025 increased $49.4 million, or 6.9% (annualized), from March 31, 2025, and increased $840.3 million, or 40.0% (annualized) from June 30, 2024. The increase quarter-over-quarter includes $47.8 million of growth in customer money market deposits, $24.8 million of noninterest-bearing deposits, and $23.0 million from interest-bearing demand accounts, partially offset by a decrease in brokered time deposits of $37.7 million and $8.6 million of customer time deposits. The increase of $840.3 million year-over-year is driven by $459.0 million from the acquisition of IFH and $381.3 million from organic growth.
- Insured and protected⁷ deposits were approximately $2.1 billion as of June 30, 2025 representing 69.9% of the Company's deposit portfolio.
- Low-and-no interest-bearing DDA deposits of $1.2 billion, or 39.8% of deposits, increased $47.8 million, or 17.1% (annualized) from 1Q 2025, and increased $214.4 million, or 22.4% year-over-year, including $122.9 million of organic growth, and $91.5 million from the acquisition of IFH.
  - The average rate on the low-and-no interest-bearing deposits was 0.14% for 2Q 2025, a decrease of 1 bps from 1Q 2025 and an increase of 8 bps year-over-year.
The average portfolio loans-to-deposit ratio was 96.2% for 2Q 2025, compared to 95.2% for 1Q 2025, and 99.1% for 2Q 2024.
The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $228.9 million, or 6.8% of total assets, an effective duration of 2.7 years, with U.S. Treasury Securities representing 60% of the overall investment portfolio at June 30, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio improved $1.1 million during the quarter to negative $8.1 million after-tax as of June 30, 2025, which represents 2.1% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio.
Liquidity – The Company maintains stable and reliable sources of available borrowings, generally consistent with prior quarter. Sources of available borrowings at June 30, 2025 totaled $834.8 million, compared to $820.9 from 1Q 2025. During 2Q 2025, available collateralized lines of credit totaled $750.6 million, unsecured lines of credit with other banks totaled $76.0 million and unpledged investment securities available as collateral for potential additional borrowings of $8.2 million.
Capital Positions – As of June 30, 2025, the Company reported a Common Equity Tier-1 capital ratio of 13.58%, compared to 13.24% at March 31, 2025. At June 30, 2025, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
- Shares repurchased and retired during the three months ended June 30, 2025, as part of the Company's stock repurchase program, totaled 93,170 shares at an average price of $26.66, for a total cost of $2.5 million including commissions. There is $11.9 million remaining to be repurchased under the authorized and approved stock repurchase plan. The stock repurchase program will expire on February 28, 2026.

_{^{____________________________________________

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

Financial Metrics

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

The average yield on interest earning assets of 8.19% decreased 5 bps compared to the prior quarter, due to minor changes in portfolio mix, and decreased 63 bps year-over-year primarily due to the acquisition of commercial loans diluting the positive impact from OpenSky™. The Commercial Bank Loan Yield⁽¹⁾ of 7.14% for 2Q 2025 was flat compared to 1Q 2025, and increased 10 bps year-over-year.
The total cost of deposits of 2.36% for 2Q 2025 decreased 6 bps compared to the prior quarter due to lower rates on most products and mix shift and decreased 25 bps year-over-year. The total cost of interest-bearing deposits decreased 8 bps quarter-over-quarter, and 57 bps year-over-year, to 3.29% for 2Q 2025 primarily due to changes in product mix.
Net purchase accounting accretion of $1.3 million during 2Q 2025, decreased $0.2 million from 1Q 2025. There was no impact from purchase accounting during 2Q 2024.

Fee Revenue Mix – The fee revenue mix was 21.6% of total revenue for 2Q 2025, compared to 21.4% during 1Q 2025, and 15.7% during 2Q 2024. The core fee revenue mix⁽⁸⁾ was consistent with fee revenue mix for these periods.

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

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

Efficiency Ratios – The efficiency ratio was 65.1% for 2Q 2025, compared to 64.9% for 1Q 2025 and 67.1% for 2Q 2024. The core efficiency ratio⁽¹⁾ was 62.8%, for 2Q 2025, which was flat compared to the prior quarter, and 66.9% for 2Q 2024.

_{^{____________________________________________

1}As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, core fee revenue mix and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Financial Metrics (Continued)

Performance Ratios – ROA was 1.60% for 2Q 2025, compared to 1.75% for 1Q 2025, and 1.40% for 2Q 2024. As of June 30, 2024, the Company did not have goodwill or other intangible assets. Core ROA⁽⁹⁾ for 2Q 2025 was 1.73%, compared to 1.87% for 1Q 2025, and 1.41% for 2Q 2024.

ROE was 14.17% for 2Q 2025, compared to 15.56% for 1Q 2025, and 12.53% for 2Q 2024. As of June 30, 2024, the Company did not have goodwill or other intangible assets. Core ROE⁽¹⁾ was 15.33% for 2Q 2025, compared to 16.64% for 1Q 2025, and 12.62% for 2Q 2024.
ROTCE was 16.10% for 2Q 2025, compared to 17.57% for 1Q 2025, and 12.53% for 2Q 2024. As of June 30, 2024, the Company did not have goodwill or other intangible assets. Core ROTCE⁽¹⁾ for 2Q 2025 was 17.39%, compared to 18.77% for 1Q 2025, and 12.62% for 2Q 2024.

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

_{^{____________________________________________

1}As used in this press release, core ROA, core ROE, ROTCE, core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Commercial Bank

Loan Growth – Portfolio loans⁽¹⁰⁾ increased $52.0 million at June 30, 2025 compared to March 31, 2025, driven by $10.9 million from CRE owner and non-owner occupied, $17.1 million from residential real estate, and $9.3 million from lender finance loans. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

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

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

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

OpenSky™

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

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

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

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

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

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

_{^{____________________________________________

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

Capital Bank Home Loans

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

Windsor Advantage™

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

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited

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

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

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

Return Ratios
Return on average assets (annualized)		1.60	%		1.75	%		1.40	%
Core return on average assets (annualized)⁽¹⁾		1.73	%		1.87	%		1.41	%
Return on average equity (annualized)		14.17	%		15.56	%		12.53	%
Core return on average equity (annualized)⁽¹⁾		15.33	%		16.64	%		12.62	%
Return on average tangible common equity (annualized)⁽¹⁾		16.10	%		17.57	%		12.53	%
Core return on average tangible common equity (annualized)⁽¹⁾		17.39	%		18.77	%		12.62	%

_{^{____________________________________________

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

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)

	Six Months Ended
	June 30,
(in thousands, except per share data)		2025			2024		$ Change			% Change
Earnings Summary
Interest income	$	127,346		$	98,984		$	28,362		28.7	%
Interest expense		33,653			26,919			6,734		25.0	%
Net interest income		93,693			72,065			21,628		30.0	%
Provision for credit losses		6,327			6,144			183		3.0	%
Provision for credit losses on unfunded commitments		—			246			(246	)	(100.0	)%
Noninterest income		25,655			12,862			12,793		99.5	%
Noninterest expense		77,625			58,980			18,645		31.6	%
Income before income taxes		35,396			19,557			15,839		81.0	%
Income tax expense		8,328			4,790			3,538		73.9	%
Net income	$	27,068		$	14,767		$	12,301		83.3	%

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

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

Return Ratios
Return on average assets (annualized)		1.68	%		1.28	%
Core return on average assets (annualized)⁽¹⁾		1.80	%		1.33	%
Return on average equity (annualized)		14.85	%		11.37	%
Core return on average equity (annualized)⁽¹⁾		15.97	%		11.83	%
Return on average tangible common equity (annualized)⁽¹⁾		16.82	%		11.37	%
Core return on average tangible common equity (annualized)⁽¹⁾		18.07	%		11.83	%

_{^{____________________________________________

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

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)

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

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

_{^{____________________________________________

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

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

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

Interest expense
Deposits		16,722		16,512		16,385		13,902		13,050

CBNK Reports 2Q ROA of 1.60% and EPS of $0.78 Growth across Loans, Deposits, and Cards accompanied by Improving Credit Delivers Strong Profitability