CBNK Reports 4Q EPS of $0.91; 4Q ROA of 1.71% and ROE of 15.23%; FY 2025: Record Earnings, Double-Digit Balance Sheet Growth and a 1.71% ROA
Fourth Quarter 2025 Highlights
- GAAP Net Income of $15.0 million was flat compared to 3Q 2025. Earnings per share of $0.91 increased $0.02 per share, compared to 3Q 2025 and return on average assets ("ROA") of 1.71% decreased 6 basis points compared to 3Q 2025
- Core net income(1) of $15.0 million, or $0.91 per share increased $0.19 per share compared to 3Q 2025 and Core ROA(1) of 1.71% increased 28 basis points compared to 3Q 2025
- Book value per common share of $24.54 at December 31, 2025, increased $0.74 compared to 3Q 2025, and increased $3.23 when compared to 4Q 2024
- Tangible book value per share(1) of $22.05, increased 3.4% (not annualized), or $0.72 as compared to 3Q 2025, and increased 15.5%, or $2.96 compared to 4Q 2024
- Return on average equity ("ROE") of 15.23% decreased 34 basis points compared to 3Q 2025, and return on average tangible common equity ("ROTCE")(1) of 17.23% decreased 26 basis points compared to 3Q 2025
- Core ROE(1) of 15.23% increased 267 basis points compared to 3Q 2025 and Core ROTCE(1) of 17.23% increased 308 basis points compared to 3Q 2025
- Gross Loans(2) grew $137.5 million, or 19.3% (annualized), during 4Q 2025, and grew $329.3 million, or 12.5% from 4Q 2024
- Total deposits grew $180.9 million, or 24.6% (annualized), from 3Q 2025 and grew $331.0 million, or 12.0% from 4Q 2024
- Customer Deposit3 growth of $41.8 million, or 6.2% (annualized) from 3Q 2025, and $287.4 million, or 11.8% from 4Q 2024
- Net interest income decreased $1.7 million, or 3.3% (not annualized) from 3Q 2025, mainly due to the $4.6 million of accretion during 3Q 2025 from refinancing callable brokered time deposits acquired in the IFH transaction, and increased $6.0 million, or 13.4% from 4Q 2024, primarily driven by growth from the Commercial Bank.
- Net Interest Margin ("NIM") of 5.94% decreased 42 bps compared to 3Q 2025 and increased 7 bps compared to 4Q 2024
- Commercial Bank NIM(1) of 4.18% decreased by 46 bps (but increased 21 bps when excluding purchase accounting accretion ("PAA")), compared to 3Q 2025, and increased 19 bps, compared to 4Q 2024
- 4Q 2025 net PAA of $0.2 million, or 3 bps of NIM and 3 bps of Commercial Bank NIM(1), decreased $5.3 million, or 61 bps, compared to 3Q 2025.
- The allowance for credit losses to total loans ("ACL Coverage Ratio") equaled 1.85% at December 31, 2025, which represented a 3 bps decrease from September 30, 2025, and remained flat year-over-year.
- The Commercial Bank ACL Coverage Ratio(1) equaled 1.65% at December 31, 2025, which represented a 5 bps decrease from 1.70% at both September 30, 2025 and December 31, 2024
- Fee Revenue (noninterest income) totaled $12.5 million, or 19.9% of total revenue for 4Q 2025, an increase of $1.4 million from 3Q 2025 primarily due to SBIC income, and increased $0.6 million from 4Q 2024
- Cash Dividend of $0.12 per share declared by the Board of Directors
- Shares repurchased and retired during the three months ended December 31, 2025, as part of the Company's stock repurchase program, totaled 304,288 shares at an average price of $28.12, for a total cost of $8.6 million
(1) As used in this press release, Core net income, Core ROA, Core ROE, ROTCE, Core ROTCE, Commercial Bank NIM, Commercial Bank ACL Coverage Ratio, and Tangible Book Value are non–U.S. generally accepted accounting principles ("GAAP") financial measures. These non-GAAP financial metrics excludes the impact of income from the call of brokered time deposits, merger-related expenses and other pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
(2) Gross loans represent portfolio loans receivable, net of deferred fees and costs.
(3) Customer Deposits represents total deposits excluding brokered deposits.
ROCKVILLE, Md., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company") (NASDAQ:CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported net income of $15.0 million, or $0.91 per diluted share, for 4Q 2025, compared to net income of $15.1 million, or $0.89 per diluted share, for 3Q 2025, and $7.5 million, or $0.45 per diluted share, for 4Q 2024. Core net income(1) for 4Q 2025 of $15.0 million, or $0.91 per diluted share, compared to $12.2 million, or $0.72 per diluted share in 3Q 2025, and $15.5 million, or $0.92 per diluted share, for 4Q 2024.
The Company also declared a cash dividend on its common stock of $0.12 per share. The dividend is payable on February 28, 2026 to shareholders of record on February 9, 2026.
"Our diversified business model continues to be a source of consistency and strength enabling us to perform at a high level in different market conditions," said Ed Barry, CEO of the Company. With the IFH integration behind us, our focus on executing our strategic plan remains our top priority. Our growth levers offer us a wide range of options on which we are capitalizing."
"We continue to demonstrate our ability to deliver meaningful growth in tangible book value per share and loans outstanding, and we are pleased that net interest margin has proven durable," said Steven J Schwartz, Chairman of the Company. "Our ongoing and planned investments in technology and human capital give me confidence that we are well-positioned to carry forward our strategy for profitable organic growth and to capitalize on opportunities that may arise for bolt-on and other acquisitions. Further, I expect our ongoing, opportunistic stock buyback program will, over time, prove to have been a wise use of our capital."
Reconciliation of GAAP Net Income to Core (Non-GAAP) Net Income
The following table provides a reconciliation of the Company's net income under GAAP to core net income (non-GAAP) results excluding income from the call of brokered time deposits, merger-related expenses and other one-time non-recurring transactions.
| Fourth Quarter 2025 | Third Quarter 2025 | |||||||||||||||||||||||||
| (in thousands, except per share data) | Income Before Income Taxes | Income Tax Expense | Net Income | Diluted Earnings per Share | Income Before Income Taxes | Income Tax Expense (Benefit) | Net Income | Diluted Earnings per Share | ||||||||||||||||||
| GAAP Net Income | $ | 19,681 | $ | 4,644 | $ | 15,037 | $ | 0.91 | $ | 19,867 | $ | 4,802 | $ | 15,065 | $ | 0.89 | ||||||||||
| Deduct: Income from the Call of Brokered Time Deposits | — | — | — | (4,618 | ) | (1,129 | ) | (3,489 | ) | |||||||||||||||||
| Add: Merger-Related Expenses | — | — | — | 697 | 122 | 575 | ||||||||||||||||||||
| Core Net Income(1) | $ | 19,681 | $ | 4,644 | $ | 15,037 | $ | 0.91 | $ | 15,946 | $ | 3,795 | $ | 12,151 | $ | 0.72 | ||||||||||
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||||||||||||||||||||
| (in thousands except per share data) | Income Before Income Taxes | Income Tax Expense (Benefit) | Net Income | Diluted Earnings per Share | Income Before Income Taxes | Income Tax Expense (Benefit) | Net Income | Diluted Earnings per Share | ||||||||||||||||||
| GAAP Net Income | $ | 74,944 | $ | 17,774 | $ | 57,170 | $ | 3.41 | $ | 41,832 | $ | 10,860 | $ | 30,972 | $ | 2.12 | ||||||||||
| Deduct: Income from the Call of Brokered Time Deposits | (4,618 | ) | (1,129 | ) | (3,489 | ) | — | — | — | |||||||||||||||||
| Add: Merger-Related Expenses | 3,361 | 752 | 2,609 | 3,930 | 622 | 3,308 | ||||||||||||||||||||
| Add: Non-recurring Equity and Debt Investment Write-Down | — | — | — | 2,620 | — | 2,620 | ||||||||||||||||||||
| Add: Initial IFH ACL Provision | — | — | — | 4,194 | 1,025 | 3,169 | ||||||||||||||||||||
| Core Net Income(1) | $ | 73,687 | $ | 17,397 | $ | 56,290 | $ | 3.36 | $ | 52,576 | $ | 12,507 | $ | 40,069 | $ | 2.74 | ||||||||||
[1] As used in this press release, Core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
Note: The income tax expense reflects the non-deductibility of certain merger-related expenses.
Fourth Quarter 2025 Results
Earnings Summary
Net income of $15.0 million was flat compared to 3Q 2025, and earnings per share of $0.91 increased $0.02 per share from 3Q 2025. Net income increased $7.5 million, or 99.6%, from $7.5 million, or $0.45 per diluted share, for 4Q 2024. 4Q 2025 core net income(1) of $15.0 million, or $0.91 per diluted share, increased $2.9 million, or 18.1%, from 3Q 2025 core net income of $12.2 million, or $0.72 per diluted share. 4Q 2025 core net income decreased $0.4 million, or 2.8%, from 4Q 2024 core net income of $15.5 million, or $0.92 per diluted share.
[1] As used in this press release, Core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
- Net interest income of $50.3 million decreased $1.7 million, or 3.3% (not annualized), compared to 3Q 2025, and increased $6.0 million, or 13.4%, year-over-year.
- During 3Q 2025 there were two non-recurring events that impacted net interest income.
- The Bank identified Fee Revenue that was also previously recognized as Interest Income in the first and second quarter. As a result, the Bank recorded a one-time adjustment of $1.3 million of interest income ("Interest Income Adjustment"). There was no corresponding adjustment needed to Fee Revenue as the fee income was correctly recognized during those periods.
- Also, the Bank issued a call of brokered time deposits acquired from the IFH transaction, resulting in the accelerated accretion of $4.6 million ("Call of Brokered Time Deposits").
- When excluding the Call of Brokered Time Deposits and Interest Income Adjustment in 3Q 2025, net interest income increased $1.6 million, or 3.2%, from 3Q 2025.
- Interest income of $68.6 million increased $3.7 million, or 5.8% (not annualized), over 3Q 2025, and increased $6.9 million, or 11.2%, year-over-year. When excluding the Interest Income Adjustment, interest income increased $2.4 million from 3Q 2025, driven by $0.8 million of growth from OpenSky™ and $1.6 million from the Commercial Bank, while the increase year-over-year was primarily driven by strong balance sheet growth and higher net PAA.
- Interest income included $0.1 million from net PAA in 4Q 2025, compared to $0.2 million in 3Q 2025 and $0.7 million in net PAA in 4Q 2024.
- Interest expense of $18.4 million increased $5.5 million, or 42.6% (not annualized), compared to 3Q 2025, and increased $1.0 million, or 5.6%, year-over-year. When excluding the Call of Brokered Time Deposits, interest expense increased $0.9 million, or 5.1%, compared to 3Q 2025, primarily driven by $0.5 million lower PAA and a $0.4 million increase from borrowings costs. The increase of $1.0 million year-over-year was primarily driven by $1.3 million of lower PAA offset by a $0.3 million shift in portfolio mix.
- Interest expense included a $0.2 million benefit from net PAA in 4Q 2025, compared to a $5.3 million benefit in 3Q 2025, which included $4.6 million from the Call of Brokered Time Deposits. There was $1.4 million from net PAA in 4Q 2024.
- During 3Q 2025 there were two non-recurring events that impacted net interest income.
- The 4Q 2025 provision for credit losses was $4.0 million, a decrease of $0.7 million from 3Q 2025. During the quarter, a $2.0 million credit to the allowance for credit losses was made to reflect recoveries resulting from the sale of $69.5 million charged-off OpenSky™ credit card receivables. Net charge-offs totaled $2.4 million, or 0.32% of portfolio loans (annualized), down from $2.5 million or 0.35% of portfolio loans (annualized), in 3Q 2025. Net charge-offs in the quarter include $1.9 million from the Commercial Bank and $0.5 million from OpenSky™ loans. Net charge-offs for the Commercial Bank increased $1.6 million from 3Q 2025 primarily driven by legacy Commercial Bank loans not previously provided for, and OpenSky™ net-charge-offs decreased $1.7 million from 3Q 2025 primarily driven by the sale of OpenSky™ credit card debt.
- At December 31, 2025, the ACL Coverage Ratio was 1.85%, down 3 bps from September 30, 2025, and flat year-over-year.
- Fee Revenue of $12.5 million increased $1.4 million, compared to 3Q 2025 and increased $0.6 million year-over-year. During 4Q 2025, Core fee revenue(1) of $12.5 million increased $1.4 million as a result of a $1.2 million higher SBIC investment income and a $0.3 million increase in credit card fees from OpenSky™, offset by a $0.1 million decrease in loan servicing rights income. Year-over-year core fee revenue(1) decreased $2.1 million primarily due to a decrease in government lending revenue of $2.3 million offset by a $0.1 million increase from mortgage banking revenue and an increase of $0.1 million from service charges on deposits. Core fee revenue mix was 19.9% of total revenue for 4Q 2025, compared to 17.5% during 3Q 2025, and 24.7% during 4Q 2024.
- Noninterest expense of $39.1 million increased $0.7 million compared to 3Q 2025 and increased $1.6 million compared to 4Q 2024. Core noninterest expense(1) of $39.1 million increased $1.4 million compared to 3Q 2025 and increased $4.2 million compared to 4Q 2024. Core comparisons include:
- The increase of $1.4 million quarter-over-quarter was primarily driven by professional fees including costs for investment in OpenSky™ initiatives and other investments in technology, offset by decreases from OpenSky™ marketing, occupancy & equipment from leases and software contracts, and data processing from Windsor™ and OpenSky™.
- Year-over-year expense growth of $4.2 million was driven by professional fees associated with investments in shared services areas, personnel expense due to headcount growth, marketing expense from OpenSky™, and regulatory fees driven by the acquisition of IFH.
- Income tax expense of $4.6 million, or 23.6% of pre-tax income for 4Q 2025, decreased $0.2 million from $4.8 million, or 24.2% of pre-tax income for 3Q 2025. The effective income tax rate change quarter-over-quarter was primarily due to the $1.1 million utilization of a deferred tax asset related to the Call of Brokered Time Deposits during 3Q 2025.
- The Core effective income tax rate(1) for 4Q 2025 and 3Q 2025 would have been 23.6% and 23.8%, respectively.
[1] As used in this press release, Core fee revenue, Core noninterest expense, and Core effective income tax rate are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
Balance Sheet
Total assets of $3.6 billion at December 31, 2025 increased $216.8 million from September 30, 2025. Total assets growth year-over-year was $399.3 million, or 12.5%.
- Gross Loans of $2.96 billion at December 31, 2025 increased $137.5 million, or 19.3% (annualized), from September 30, 2025 and increased $329.3 million, or 12.5%, year-over-year.
- Compared to September 30, 2025, growth was primarily driven by $79.1 million from commercial and industrial ("C&I"), $25.7 million from residential real estate, $15.3 million from construction real estate, $9.5 million from lender finance, and $5.9 million from OpenSky™.
- Compared to December 31, 2024, growth was primarily driven by $143.7 million from C&I, $77.3 million from residential real estate, $40.5 million from commercial real estate ("CRE"), $38.3 million from construction real estate, $14.6 million from OpenSky™, and $12.8 million from lender finance.
- C&l loans, plus owner-occupied CRE loans totaled 37.7% of total portfolio loans at December 31, 2025, consistent with the prior quarter, and 37.8% at December 31, 2024.
- Total deposits of $3.09 billion at December 31, 2025 increased $180.9 million, or 24.6% (annualized), from September 30, 2025, and increased $331.0 million, or 12.0% (annualized) from December 31, 2024.
- When excluding the increase in brokered time deposits of $139.1 million, customer deposits increased $41.8 million or 5.7% (annualized), including $116.0 million of growth in customer money market deposits, offset by a decrease of $49.5 million in customer time deposits, an $18.5 million decrease from interest-bearing demand accounts, a $5.0 million decrease from noninterest-bearing deposits, and a $1.2 million decrease from savings accounts.
- The increase in total deposits of $331.0 million year-over-year was driven by $288.5 million in growth from customer money market deposits, $43.6 million from brokered time deposits, $41.6 million from noninterest-bearing deposits, $18.4 million from interest-bearing demand accounts, offset by a decrease of $59.2 million from customer time deposits, and $1.8 million from savings accounts.
- Insured and protected1 deposits were approximately $2.1 billion as of December 31, 2025 representing 68.4% of the Company's deposit portfolio.
- Low interest and noninterest-bearing DDA deposits of $1.1 billion, or 36.3% of deposits, decreased $24.7 million, or 8.6% (annualized) from 3Q 2025, but increased $58.1 million, or 5.5% year-over-year.
- The average rate on the low interest and noninterest-bearing deposits was 0.14% for 4Q 2025, which remained flat compared to 3Q 2025 and year-over-year.
- The average portfolio loans-to-deposit ratio was 97.0% for 4Q 2025, compared to 95.6% for 3Q 2025, and 99.3% for 4Q 2024.
- The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $230.1 million, or 6.4% of total assets, an effective duration of 2.5 years, with U.S. Treasury Securities representing 60% of the overall investment portfolio at December 31, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio improved $1.0 million during the quarter to negative $5.8 million after-tax as of December 31, 2025, which represents 1.4% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio.
- Liquidity – The Company maintains stable and reliable sources of available borrowings, generally consistent with prior quarter. Sources of available borrowings at December 31, 2025 totaled $817.9 million, compared to $858.4 from 3Q 2025. During 4Q 2025, available collateralized lines of credit totaled $731.6 million, unsecured lines of credit with other banks totaled $76.0 million and unpledged investment securities available as collateral for potential additional borrowings totaled $9.3 million.
- Capital Positions – As of December 31, 2025, the Company reported a Common Equity Tier-1 capital ratio of 12.98%, compared to 13.54% at September 30, 2025. At December 31, 2025, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
- Shares repurchased and retired during the three months ended December 31, 2025, as part of the Company's stock repurchase program, totaled 304,288 shares at an average price of $28.12, for a total cost of $8.6 million. As of December 31, 2025, there was $3.3 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on February 28, 2026.
- Shares repurchased and retired during the three months ended December 31, 2025, as part of the Company's stock repurchase program, totaled 304,288 shares at an average price of $28.12, for a total cost of $8.6 million. As of December 31, 2025, there was $3.3 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on February 28, 2026.
[1] Protected deposits includes deposits that are indirectly protected under the product terms.
Financial Metrics
Net Interest Margin – NIM of 5.94% for 4Q 2025, decreased 42 bps compared to the prior quarter, and increased 7 bps year-over-year. Commercial Bank NIM(1) of 4.18% decreased 46 bps (but increased 21 bps when excluding PAA) compared to the prior quarter, and increased 19 bps year-over-year. Net PAA for 4Q 2025 was 3 bps for NIM and 3 bps for Commercial Bank NIM(1).
- 3Q 2025 includes the previously mentioned $4.6 million Call of Brokered Time Deposits and $1.3 million Interest Income Adjustment. Excluding the Interest Income Adjustment and Call of Brokered Time Deposits in 3Q 2025, Commercial Bank NIM(1) declined to 4.18%, or 3 bps, in 4Q 2025.
- The average yield on interest earning assets of 8.10% increased 17 bps compared to the prior quarter and decreased 7 bps year-over-year. During 3Q 2025 there was a 16 bps impact from the Interest Income Adjustment. Excluding this item, the average yield in 3Q 2025 would have been 8.09%, which results in a increase of 1 bps compared to 3Q 2025. The decrease quarter-over-quarter was primarily a result of changes in the overall rate environment. The average yield decreased 7 bps year-over-year primarily due to changes in the overall rate environment.
- The Commercial Bank Loan Yield(1) of 6.95% for 4Q 2025 increased 21 bps compared to 3Q 2025, and decreased 3 bps year-over-year. Excluding the Interest Income Adjustment impact, the average yield in 3Q 2025 would have been 6.94%, which remained flat compared to 3Q 2025.
- The total cost of deposits of 2.36% for 4Q 2025 increased 63 bps compared to the prior quarter and decreased 14 bps year-over-year. During 3Q 2025 there was a 63 bps impact from the Call of Brokered Time Deposits. Excluding this item, the cost of deposits for the quarter would have been 2.36%, and 4Q 2025 would have been consistent with 3Q 2025.
- The total cost of interest-bearing deposits increased 87 bps quarter-over-quarter, and decreased 19 bps year-over-year, to 3.28% for 4Q 2025. Excluding the Call of Brokered Time Deposits, the 3Q 2025 cost of interest-bearing deposits would have been 3.28%, and 4Q 2025 would have been consistent with 3Q 2025. The decrease year-over-year was due to a shift in product mix as well as a change in the rate environment.
- Net PAA of $0.2 million, or 3 bps of NIM and 3 bps of Commercial Bank NIM(1), during 4Q 2025, decreased $5.3 million from 3Q 2025 mainly due to the Call of Brokered Time Deposits. There was $0.7 million from net PAA during 4Q 2024.
- NIM for 2025 was 6.10%, a year-over-year decrease of 15 bps from 6.22% for 2024. The decrease was primarily driven by the acquisition of commercial loans from IFH, which diluted the impact from OpenSky™.
- Commercial Bank NIM(1) for 2025 was 4.38%, a year-over-year increase of 45 bps from 3.93% for 2024 that was primarily driven by the acquisition of commercial loans from IFH and balance sheet growth from the Commercial Bank during 2025. Excluding the Call of Brokered Time Deposits and Interest Income Adjustment, Commercial Bank NIM(1) for 2025 would have been 4.27%, an increase of 34 bps year-over-year.
Fee Revenue Mix – The fee revenue mix was 19.9% of total revenue for 4Q 2025, compared to 17.5% during 3Q 2025, and 21.2% during 4Q 2024. The core fee revenue mix(1) was 19.9% for 4Q 2025, compared to 17.5% during 3Q 2025, and 24.7% during 4Q 2024.
Credit Metrics and Asset Quality – The ACL Coverage Ratio equaled 1.85% at December 31, 2025, a decrease of 3 bps from September 30, 2025, and remained flat year-over-year.
Nonperforming assets were $58.3 million or 1.62% of total assets at December 31, 2025, an increase of $6.0 million or 7 bps compared to September 30, 2025. The increase in nonperforming assets from 3Q 2025 was primarily driven by $3.9 million from OREO, or 5 bps, and $2.2 million from the acquired IFH portfolio, or 2 bps. Nonperforming assets increased $28.0 million or 67 bps year-over-year, mainly due to the $15.9 million increase during 3Q 2025 from two loan relationships acquired as part of the IFH transaction, described last quarter, $4.4 million from other changes in the acquired IFH portfolio, $3.9 million from OREO, and $3.8 million from the legacy Commercial Bank portfolio. At December 31, 2025, substandard loans totaled $58.5 million, or 2.0% of total portfolio loans, compared to $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025 and $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024. The $10.1 million year-over-year increase in substandard loans was primarily driven by the $15.9 million of loans described above. At December 31, 2025, special mention loans totaled $57.9 million, or 2.0% of total portfolio loans, compared to $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025, and $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024.
Efficiency Ratios – The efficiency ratio was 62.3% for 4Q 2025, compared to 60.8% for 3Q 2025 and 66.7% for 4Q 2024. The core efficiency ratio(1) was 62.3% for 4Q 2025, which decreased from 64.4% compared to the prior quarter, and increased from 59.3% for 4Q 2024.
[1] As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, Core fee revenue mix and Core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
Financial Metrics (Continued)
Performance Ratios – ROA was 1.71% for 4Q 2025, compared to 1.77% for 3Q 2025, and 0.96% for 4Q 2024. Core ROA(9) for 4Q 2025 was 1.71%, compared to 1.43% for 3Q 2025, and 1.97% for 4Q 2024.
- ROE was 15.23% for 4Q 2025, compared to 15.57% for 3Q 2025, and 8.50% for 4Q 2024. Core ROE(1) was 15.23% for 4Q 2025, compared to 12.56% for 3Q 2025, and 17.46% for 4Q 2024.
- ROTCE(1) was 17.23% for 4Q 2025, compared to 17.49% for 3Q 2025, and 9.33% for 4Q 2024. Core ROTCE(1) for 4Q 2025 was 17.23%, compared to 14.15% for 3Q 2025, and 18.91% for 4Q 2024.
Book Value and Tangible Book Value – Book value per common share of $24.54 at December 31, 2025, increased $0.74 when compared to September 30, 2025, and increased $3.23 when compared to December 31, 2024. Tangible book value per common share(1) increased $0.72, or 3.4% (not annualized), to $22.05 at December 31, 2025 when compared to September 30, 2025, and increased $2.96, or 15.5%, when compared to December 31, 2024. Tangible book value(1) was impacted by the purchase accounting adjustments required as part of the IFH acquisition. Tangible book value per share(1) was equal to book value per share for periods prior to 4Q 2024.
[1] As used in this press release, Core ROA, Core ROE, ROTCE, Core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
Commercial Bank
Loan Growth – Portfolio loans(1) increased $129.6 million at December 31, 2025 compared to September 30, 2025, driven by $79.1 million from C&I, $25.7 million from residential real estate, and $15.3 million from construction real estate. Portfolio loans increased $327.8 million at December 31, 2025 compared to December 31, 2024, driven by $143.7 million from C&I, $77.3 million from residential real estate, and $40.5 million from CRE. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.
Net Interest Income – Interest income of $52.0 million increased $3.0 million from the prior quarter, primarily due to 3Q 2025, due to growth in the Commercial Bank loan portfolio during the quarter. Excluding the $1.3 million Interest Income Adjustment in 3Q 2025, interest income grew by $1.6 million from 3Q 2025. Interest expense of $18.2 million increased $5.5 million, primarily due to 3Q 2025 including a $4.6 million benefit from the Call of Brokered Time Deposits. The remaining $0.9 million increase was due to $0.5 million from lower PAA and $0.4 million from short term borrowings during 4Q 2025.
Credit Metrics – Nonperforming assets increased 8 bps to 1.71% of total assets at December 31, 2025 compared to September 30, 2025. Total nonaccrual loans at December 31, 2025 were $54.4 million, an increase of $2.2 million or 4.0% compared to $52.2 million at September 30, 2025.
Classified and Criticized Loans – At December 31, 2025, special mention loans totaled $57.9 million, or 2.0% of total portfolio loans, compared to $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025. At December 31, 2025, substandard loans totaled $58.5 million, or 2.0% of total portfolio loans, compared to $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025.
(1) Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.
OpenSky™
Accounts – During 4Q 2025, credit card accounts of 585.5 thousand declined by 2.1 thousand, or 0.4% (not annualized) from September 30, 2025, and increased 32.9 thousand, or 6.0% year-over-year.
Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $142.4 million at December 31, 2025 increased by $5.9 million, or 4.3% (not annualized), compared to September 30, 2025 and $14.6 million, or 11.5%, year-over-year. Deposit balances of $163.2 million for 4Q 2025 decreased $3.7 million compared to 3Q 2025 and decreased $3.2 million, or 1.9% year-over-year. Gross unsecured loan balances of $61.4 million at December 31, 2025 increased $7.7 million, or 14.4% (not annualized), compared to $53.6 million at September 30, 2025, and increased $18.9 million year-over-year. Gross secured loan balances of $83.1 million at December 31, 2025 decreased $1.7 million, or 2.0% (not annualized), compared to $84.7 million at September 30, 2025, and decreased $4.2 million, or 4.8% (not annualized) year-over-year.
Net Interest Income – Interest income of $16.4 million increased $0.7 million compared to 3Q 2025. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $133.9 million for 4Q 2025, increased $4.8 million, or 3.7% (not annualized), compared to 3Q 2025.
Fee Revenue – Total fee revenue of $4.8 million increased $0.3 million from the prior quarter primarily driven by other credit-card related fees associated with the legacy product.
Noninterest Expense – Total noninterest expense of $14.6 million increased $0.6 million compared to 3Q 2025, driven primarily by professional fees associated with the legacy and unsecured products.
OpenSky™ Credit – Portfolio credit metrics continued to be consistent with modeled expectations during 4Q 2025. The provision for credit losses of $1.3 million decreased $1.5 million when compared to the prior quarter, primarily due to a $2.0 million credit to the allowance for credit losses was made to reflect the debt sale. OpenSky's™ unsecured loan product is offered exclusively to current and former secured card customers. Unsecured loans have been offered by OpenSky™ since the fourth quarter of 2021 and have generally performed in accordance with management expectations over that time period.
Capital Bank Home Loans
Originations of loans held for sale totaled $107.3 million during 4Q 2025, with $83.0 million of mortgage loans sold resulting in a gain on sale of loans of $2.1 million, representing a 2.58% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $80.7 million during 3Q 2025, with $66.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.7 million, representing a 2.56% gain on sale as a percentage of total loans sold.
Windsor Advantage™
Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of Capital Bank related servicing fees, during 4Q 2025. Gross government loan servicing revenue totaled $5.3 million, including $1.1 million of Capital Bank related servicing fees, during 3Q 2025. Windsor's™ total servicing portfolio was $3.1 billion at December 31, 2025, and $3.2 billion at September 30, 2025.
| COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited | |||||||||||||||||||||||||
| Quarter Ended | 4Q25 vs 3Q25 | 4Q25 vs 4Q24 | |||||||||||||||||||||||
| (in thousands, except per share data) | December 31, 2025 | September 30, 2025 | December 31, 2024 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||
| Earnings Summary | |||||||||||||||||||||||||
| Interest income | $ | 68,634 | $ | 64,891 | $ | 61,707 | $ | 3,743 | 5.8 | % | $ | 6,927 | 11.2 | % | |||||||||||
| Interest expense | 18,355 | 12,871 | 17,380 | 5,484 | 42.6 | % | 975 | 5.6 | % | ||||||||||||||||
| Net interest income | 50,279 | 52,020 | 44,327 | (1,741 | ) | (3.3 | )% | 5,952 | 13.4 | % | |||||||||||||||
| Provision for credit losses | 3,988 | 4,650 | 7,828 | (662 | ) | (14.2 | )% | (3,840 | ) | (49.1 | )% | ||||||||||||||
| (Release of) provision for credit losses on unfunded commitments | (29 | ) | 217 | 122 | (246 | ) | (113.4 | )% | (151 | ) | (123.8 | )% | |||||||||||||
| Noninterest income | 12,464 | 11,068 | 11,913 | 1,396 | 12.6 | % | 551 | 4.6 | % | ||||||||||||||||
| Noninterest expense | 39,103 | 38,354 | 37,514 | 749 | 2.0 | % | 1,589 | 4.2 | % | ||||||||||||||||
| Income before income taxes | 19,681 | 19,867 | 10,776 | (186 | ) | (0.9 | )% | 8,905 | 82.6 | % | |||||||||||||||
| Income tax expense | 4,644 | 4,802 | 3,243 | (158 | ) | (3.3 | )% | 1,401 | 43.2 | % | |||||||||||||||
| Net income | $ | 15,037 | $ | 15,065 | $ | 7,533 | $ | (28 | ) | (0.2 | )% | $ | 7,504 | 99.6 | % | ||||||||||
| Pre-tax pre-provision net revenue ("PPNR") (1) | $ | 23,640 | $ | 24,734 | $ | 18,726 | $ | (1,094 | ) | (4.4 | )% | $ | 4,914 | 26.2 | % | ||||||||||
| Core PPNR(1) | $ | 23,640 | $ | 20,813 | $ | 23,961 | $ | 2,827 | 13.6 | % | $ | (321 | ) | (1.3 | )% | ||||||||||
| Common Share Data | |||||||||||||||||||||||||
| Earnings per share - Basic | $ | 0.91 | $ | 0.91 | $ | 0.45 | $ | — | — | % | $ | 0.46 | 102.2 | % | |||||||||||
| Earnings per share - Diluted | $ | 0.91 | $ | 0.89 | $ | 0.45 | $ | 0.02 | 2.2 | % | $ | 0.46 | 102.2 | % | |||||||||||
| Core earnings per share - Diluted(1) | $ | 0.91 | $ | 0.72 | $ | 0.92 | $ | 0.19 | 26.4 | % | $ | (0.01 | ) | (1.1 | )% | ||||||||||
| Weighted average common shares - Basic | 16,493 | 16,586 | 16,595 | ||||||||||||||||||||||
| Weighted average common shares - Diluted | 16,493 | 16,844 | 16,729 | ||||||||||||||||||||||
| Return Ratios | |||||||||||||||||||||||||
| Return on average assets (annualized) | 1.71 | % | 1.77 | % | 0.96 | % | |||||||||||||||||||
| Core return on average assets (annualized)(1) | 1.71 | % | 1.43 | % | 1.97 | % | |||||||||||||||||||
| Return on average equity (annualized) | 15.23 | % | 15.57 | % | 8.50 | % | |||||||||||||||||||
| Core return on average equity (annualized)(1) | 15.23 | % | 12.56 | % | 17.46 | % | |||||||||||||||||||
| Return on average tangible common equity (annualized)(1) | 17.23 | % | 17.49 | % | 9.33 | % | |||||||||||||||||||
| Core return on average tangible common equity (annualized)(1) | 17.23 | % | 14.15 | % | 18.91 | % | |||||||||||||||||||
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
| COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued) | |||||||||||||||
| Year Ended | |||||||||||||||
| December 31, | |||||||||||||||
| (in thousands, except per share data) | 2025 | 2024 | $ Change | % Change | |||||||||||
| Earnings Summary | |||||||||||||||
| Interest income | $ | 260,871 | $ | 213,301 | $ | 47,570 | 22.3 | % | |||||||
| Interest expense | 64,879 | 58,555 | 6,324 | 10.8 | % | ||||||||||
| Net interest income | 195,992 | 154,746 | 41,246 | 26.7 | % | ||||||||||
| Provision for credit losses | 14,965 | 17,720 | (2,755 | ) | (15.5 | )% | |||||||||
| (Release of) provision for credit losses on unfunded commitments | 188 | 385 | (197 | ) | (51.2 | )% | |||||||||
| Noninterest income | 49,187 | 31,410 | 17,777 | 56.6 | % | ||||||||||
| Noninterest expense | 155,082 | 126,219 | 28,863 | 22.9 | % | ||||||||||
| Income before income taxes | 74,944 | 41,832 | 33,112 | 79.2 | % | ||||||||||
| Income tax expense | 17,774 | 10,860 | 6,914 | 63.7 | % | ||||||||||
| Net income | $ | 57,170 | $ | 30,972 | $ | 26,198 | 84.6 | % | |||||||
| Pre-tax pre-provision net revenue ("PPNR") (1) | $ | 90,097 | $ | 59,937 | $ | 30,160 | 50.3 | % | |||||||
| Core PPNR(1) | $ | 88,840 | $ | 66,487 | $ | 22,353 | 33.6 | % | |||||||
| Common Share Data | |||||||||||||||
| Earnings per share - Basic | $ | 3.45 | $ | 2.12 | $ | 1.33 | 62.7 | % | |||||||
| Earnings per share - Diluted | $ | 3.41 | $ | 2.12 | $ | 1.29 | 60.8 | % | |||||||
| Core earnings per share - Diluted(1) | $ | 3.36 | $ | 2.74 | |||||||||||
| Weighted average common shares - Basic | 16,582 | 14,584 | |||||||||||||
| Weighted average common shares - Diluted | 16,768 | 14,640 | |||||||||||||
| Return Ratios | |||||||||||||||
| Return on average assets | 1.71 | % | 1.21 | % | |||||||||||
| Core return on average assets(1) | 1.68 | % | 1.57 | % | |||||||||||
| Return on average equity | 15.13 | % | 10.78 | % | |||||||||||
| Core return on average equity(1) | 14.90 | % | 13.94 | % | |||||||||||
| Return on average tangible common equity(1) | 17.10 | % | 11.07 | % | |||||||||||
| Core return on average tangible common equity(1) | 16.84 | % | 14.30 | % | |||||||||||
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
| COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued) | |||||||||||||||||
| Quarter Ended | Quarter Ended | ||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | ||||||||||||||
| (in thousands, except per share data) | 2025 | 2024 | % Change | 2025 | 2025 | 2025 | |||||||||||
| Balance Sheet Highlights | |||||||||||||||||
| Assets | $ | 3,606,207 | $ | 3,206,911 | 12.5 | % | $ | 3,389,442 | $ | 3,388,662 | $ | 3,349,805 | |||||
| Investment securities available-for-sale | 230,083 | 223,630 | 2.9 | % | 232,640 | 228,923 | 213,452 | ||||||||||
| Mortgage loans held for sale | 25,828 | 17,063 | 51.4 | % | 14,146 | 15,933 | 30,005 | ||||||||||
| Portfolio loans receivable (2) | 2,959,457 | 2,630,163 | 12.5 | % | 2,821,983 | 2,739,808 | 2,678,406 | ||||||||||
| Allowance for credit losses | 54,660 | 48,652 | 12.3 | % | 53,045 | 47,447 | 48,454 | ||||||||||
| Goodwill | 25,969 | 21,126 | 22.9 | % | 25,969 | 22,478 | 24,085 | ||||||||||
| Intangible assets | 13,246 | 14,072 | (5.9 | )% | 13,457 | 13,668 | 13,861 | ||||||||||
| Core deposit intangibles | 1,525 | 1,745 | (12.6 | )% | 1,576 | 1,627 | 1,695 | ||||||||||
| Deposits | 3,092,979 | 2,761,939 | 12.0 | % | 2,912,053 | 2,940,738 | 2,891,333 | ||||||||||
| FHLB borrowings | 50,000 | 22,000 | 127.3 | % | 22,000 | 22,000 | 22,000 | ||||||||||
| Other borrowed funds | 2,062 | 12,062 | (82.9 | )% | 12,062 | 12,062 | 12,062 | ||||||||||
| Total stockholders' equity | 401,978 | 355,139 | 13.2 | % | 394,770 | 380,035 | 369,577 | ||||||||||
| Tangible common equity (1) | 361,238 | 318,196 | 13.5 | % | 353,768 | 342,262 | 329,936 | ||||||||||
| Common shares outstanding | 16,381 | 16,663 | (1.7 | )% | 16,589 | 16,582 | 16,657 | ||||||||||
| Book value per share | $ | 24.54 | $ | 21.31 | 15.2 | % | $ | 23.80 | $ | 22.92 | $ | 22.19 | |||||
| Tangible book value per share (1) | $ | 22.05 | $ | 19.10 | 15.4 | % | $ | 21.33 | $ | 20.64 | $ | 19.81 | |||||
| Dividends per share | $ | 0.12 | $ | 0.10 | 20.0 | % | $ | 0.12 | $ | 0.10 | $ | 0.10 | |||||
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Loans are reflected net of deferred fees and costs.
| Consolidated Statements of Income (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||
| Interest income | |||||||||||||||||||||||||
| Loans, including fees | $ | 64,933 | $ | 60,838 | $ | 60,810 | $ | 58,691 | $ | 58,602 | $ | 245,272 | $ | 202,915 | |||||||||||
| Investment securities available-for-sale | 1,728 | 1,805 | 1,582 | 1,861 | 1,539 | 6,976 | 5,441 | ||||||||||||||||||
| Federal funds sold and other | 1,973 | 2,248 | 2,194 | 2,208 | 1,566 | 8,623 | 4,945 | ||||||||||||||||||
| Total interest income | 68,634 | 64,891 | 64,586 | 62,760 | 61,707 | 260,871 | 213,301 | ||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||
| Deposits | 17,805 | 12,732 | 16,722 | 16,512 | 16,385 | 63,771 | 56,170 | ||||||||||||||||||
| Borrowed funds | 550 | 139 | 218 | 201 | 995 | 1,108 | 2,385 | ||||||||||||||||||
| Total interest expense | 18,355 | 12,871 | 16,940 | 16,713 | 17,380 | 64,879 | 58,555 | ||||||||||||||||||
| Net interest income | 50,279 | 52,020 | 47,646 | 46,047 | 44,327 | 195,992 | 154,746 | ||||||||||||||||||
| Provision for credit losses | 3,988 | 4,650 | 4,081 | 2,246 | 7,828 | 14,965 | 17,720 | ||||||||||||||||||
| (Release of) provision for credit losses on unfunded commitments | (29 | ) | 217 | — | — | 122 | 188 | 385 | |||||||||||||||||
| Net interest income after provision for credit losses | 46,320 | 47,153 | 43,565 | 43,801 | 36,377 | 180,839 | 136,641 | ||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||
| Service charges on deposits | 371 | 425 | 262 | 258 | 241 | 1,316 | 883 | ||||||||||||||||||
| Credit card fees | 4,837 | 4,509 | 4,298 | 3,722 | 3,733 | 17,366 | 15,999 | ||||||||||||||||||
| Mortgage banking revenue | 1,960 | 1,927 | 1,754 | 1,831 | 1,821 | 7,472 | 7,146 | ||||||||||||||||||
| Government lending revenue | — | 14 | 3,112 | 1,096 | 2,301 | 4,222 | 2,301 | ||||||||||||||||||
| Government loan servicing revenue | 4,036 | 4,265 | 3,644 | 3,568 | 3,993 | 15,513 | 3,993 | ||||||||||||||||||
| Loan servicing rights (government guaranteed) | 295 | 368 | (590 | ) | 472 | 1,013 | 545 | 1,013 | |||||||||||||||||
| Non-recurring equity and debt investment write-down | — | — | — | — | (2,620 | ) | — | (2,620 | ) | ||||||||||||||||
| Other income | 965 | (440 | ) | 626 | 1,602 | 1,431 | 2,753 | 2,695 | |||||||||||||||||
| Total noninterest income | 12,464 | 11,068 | 13,106 | 12,549 | 11,913 | 49,187 | 31,410 | ||||||||||||||||||
| Noninterest expenses | |||||||||||||||||||||||||
| Salaries and employee benefits | 17,914 | 17,728 | 18,460 | 18,067 | 16,513 | 72,169 | 56,037 | ||||||||||||||||||
| Occupancy and equipment | 2,638 | 2,849 | 2,995 | 2,910 | 2,976 | 11,392 | 8,244 | ||||||||||||||||||
| Professional fees | 4,294 | 2,131 | 2,422 | 2,112 | 2,150 | 10,959 | 7,846 | ||||||||||||||||||
| Data processing | 7,502 | 7,654 | 7,520 | 7,112 | 7,210 | 29,788 | 27,689 | ||||||||||||||||||
| Advertising | 1,398 | 1,714 | 1,371 | 1,779 | 1,032 | 6,262 | 6,359 | ||||||||||||||||||
| Loan processing | 1,152 | 1,114 | 979 | 743 | 969 | 3,988 | 2,431 | ||||||||||||||||||
| Foreclosed real estate expenses, net | — | — | — | 1 | — | 1 | 2 | ||||||||||||||||||
| Merger-related expenses | — | 697 | 1,398 | 1,266 | 2,615 | 3,361 | 3,930 | ||||||||||||||||||
| Operational and other card fraud related losses | 750 | 923 | 933 | 903 | 993 | 3,509 | 3,714 | ||||||||||||||||||
| Regulatory assessment expenses | 858 | 740 | 884 | 889 | 554 | 3,371 | 1,937 | ||||||||||||||||||
| Other operating | 2,597 | 2,804 | 2,610 | 2,271 | 2,502 | 10,282 | 8,030 | ||||||||||||||||||
| Total noninterest expenses | 39,103 | 38,354 | 39,572 | 38,053 | 37,514 | 155,082 | 126,219 | ||||||||||||||||||
| Income before income taxes | 19,681 | 19,867 | 17,099 | 18,297 | 10,776 | 74,944 | 41,832 | ||||||||||||||||||
| Income tax expense | 4,644 | 4,802 | 3,963 | 4,365 | 3,243 | 17,774 | 10,860 | ||||||||||||||||||
| Net income | $ | 15,037 | $ | 15,065 | $ | 13,136 | $ | 13,932 | $ | 7,533 | $ | 57,170 | $ | 30,972 | |||||||||||
| Consolidated Balance Sheets | |||||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||||||||
| (in thousands, except share data) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 30,894 | $ | 25,724 | $ | 26,843 | $ | 27,836 | $ | 25,433 | |||||||||
| Interest-bearing deposits at other financial institutions | 224,611 | 163,078 | 247,704 | 266,092 | 179,841 | ||||||||||||||
| Federal funds sold | 60 | 59 | 59 | 59 | 58 | ||||||||||||||
| Total cash and cash equivalents | 255,565 | 188,861 | 274,606 | 293,987 | 205,332 | ||||||||||||||
| Investment securities available-for-sale | 230,083 | 232,640 | 228,923 | 213,452 | 223,630 | ||||||||||||||
| Restricted investments | 8,397 | 7,057 | 7,043 | 7,031 | 4,479 | ||||||||||||||
| Loans held for sale | 25,828 | 14,146 | 15,933 | 30,005 | 17,063 | ||||||||||||||
| Portfolio loans receivable, net of deferred fees and costs | 2,959,457 | 2,821,983 | 2,739,808 | 2,678,406 | 2,630,163 | ||||||||||||||
| Less allowance for credit losses | (54,660 | ) | (53,045 | ) | (47,447 | ) | (48,454 | ) | (48,652 | ) | |||||||||
| Total portfolio loans held for investment, net | 2,904,797 | 2,768,938 | 2,692,361 | 2,629,952 | 2,581,511 | ||||||||||||||
| Premises and equipment, net | 15,072 | 15,304 | 14,863 | 15,085 | 15,525 | ||||||||||||||
| Accrued interest receivable | 16,695 | 19,011 | 15,149 | 19,458 | 16,664 | ||||||||||||||
| Goodwill | 25,969 | 25,969 | 22,478 | 24,085 | 21,126 | ||||||||||||||
| Intangible assets | 13,246 | 13,457 | 13,668 | 13,861 | 14,072 | ||||||||||||||
| Core deposit intangibles | 1,525 | 1,576 | 1,627 | 1,695 | 1,745 | ||||||||||||||
| Loan servicing assets | 1,816 | 2,070 | 2,221 | 2,244 | 5,511 | ||||||||||||||
| Deferred tax asset | 14,992 | 14,885 | 15,667 | 15,902 | 16,670 | ||||||||||||||
| Bank owned life insurance | 45,488 | 45,105 | 44,721 | 44,335 | 43,956 | ||||||||||||||
| Other assets | 46,734 | 40,423 | 39,402 | 38,713 | 39,627 | ||||||||||||||
| Total assets | $ | 3,606,207 | $ | 3,389,442 | $ | 3,388,662 | $ | 3,349,805 | $ | 3,206,911 | |||||||||
| Liabilities | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Noninterest-bearing | $ | 852,520 | $ | 857,543 | $ | 836,979 | $ | 812,224 | $ | 810,928 | |||||||||
| Interest-bearing | 2,240,459 | 2,054,510 | 2,103,759 | 2,079,109 | 1,951,011 | ||||||||||||||
| Total deposits | 3,092,979 | 2,912,053 | 2,940,738 | 2,891,333 | 2,761,939 | ||||||||||||||
| Federal Home Loan Bank advances | 50,000 | 22,000 | 22,000 | 22,000 | 22,000 | ||||||||||||||
| Other borrowed funds | 2,062 | 12,062 | 12,062 | 12,062 | 12,062 | ||||||||||||||
| Accrued interest payable | 8,745 | 8,045 | 8,158 | 9,995 | 9,393 | ||||||||||||||
| Other liabilities | 50,443 | 40,512 | 25,669 | 44,838 | 46,378 | ||||||||||||||
| Total liabilities | 3,204,229 | 2,994,672 | 3,008,627 | 2,980,228 | 2,851,772 | ||||||||||||||
| Stockholders' equity | |||||||||||||||||||
| Common stock | 164 | 166 | 166 | 167 | 167 | ||||||||||||||
| Additional paid-in capital | 120,913 | 127,359 | 126,888 | 128,692 | 128,598 | ||||||||||||||
| Retained earnings | 286,661 | 274,041 | 261,093 | 249,925 | 237,843 | ||||||||||||||
| Accumulated other comprehensive loss | (5,760 | ) | (6,796 | ) | (8,112 | ) | (9,207 | ) | (11,469 | ) | |||||||||
| Total stockholders' equity | 401,978 | 394,770 | 380,035 | 369,577 | 355,139 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,606,207 | $ | 3,389,442 | $ | 3,388,662 | $ | 3,349,805 | $ | 3,206,911 | |||||||||
The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders' equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.
| Three Months Ended December 31, 2025 | Three Months Ended September 30, 2025 | Three Months Ended December 31, 2024 | ||||||||||||||||||||||||
| Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate(1) | Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate(1) | Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate(1) | ||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 196,281 | $ | 1,868 | 3.78 | % | $ | 194,858 | $ | 2,139 | 4.36 | % | $ | 140,206 | $ | 1,446 | 4.10 | % | ||||||||
| Federal funds sold | 60 | 1 | 6.61 | 59 | 1 | 5.79 | 58 | — | — | |||||||||||||||||
| Investment securities available-for-sale | 238,295 | 1,728 | 2.88 | 241,086 | 1,805 | 2.97 | 236,951 | 1,539 | 2.58 | |||||||||||||||||
| Restricted investments | 6,725 | 104 | 6.14 | 7,052 | 108 | 6.06 | 7,292 | 120 | 6.55 | |||||||||||||||||
| Loans held for sale | 17,118 | 263 | 6.10 | 13,783 | 228 | 6.57 | 25,614 | 193 | 3.00 | |||||||||||||||||
| Portfolio loans receivable(2)(3) | 2,902,033 | 64,670 | 8.84 | 2,789,815 | 60,610 | 8.62 | 2,592,960 | 58,409 | 8.96 | |||||||||||||||||
| Total interest earning assets | 3,360,512 | 68,634 | 8.10 | 3,246,653 | 64,891 | 7.93 | 3,003,081 | 61,707 | 8.17 | |||||||||||||||||
| Noninterest earning assets | 138,028 | 131,643 | 117,026 | |||||||||||||||||||||||
| Total assets | $ | 3,498,540 | $ | 3,378,296 | $ | 3,120,107 | ||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||
| Interest-bearing demand accounts | $ | 269,342 | 366 | 0.54 | $ | 282,873 | 388 | 0.54 | $ | 257,446 | 424 | 0.66 | ||||||||||||||
| Savings | 12,033 | 11 | 0.36 | 12,887 | 15 | 0.47 | 13,497 | 20 | 0.59 | |||||||||||||||||
| Money market accounts | 1,061,293 | 9,124 | 3.41 | 985,106 | 8,650 | 3.48 | 763,526 | 7,131 | 3.72 | |||||||||||||||||
| Time deposits | 812,186 | 8,304 | 4.06 | 815,302 | 3,679 | 1.79 | 847,618 | 8,810 | 4.13 | |||||||||||||||||
| Borrowed funds | 46,497 | 550 | 4.69 | 34,062 | 139 | 1.62 | 97,116 | 995 | 4.08 | |||||||||||||||||
| Total interest-bearing liabilities | 2,201,351 | 18,355 | 3.31 | 2,130,230 | 12,871 | 2.40 | 1,979,203 | 17,380 | 3.49 | |||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||
| Noninterest-bearing liabilities | 67,509 | 43,245 | 58,460 | |||||||||||||||||||||||
| Noninterest-bearing deposits | 837,930 | 820,899 | 729,907 | |||||||||||||||||||||||
| Stockholders' equity | 391,750 | 383,922 | 352,537 | |||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,498,540 | $ | 3,378,296 | $ | 3,120,107 | ||||||||||||||||||||
| Net interest spread | 4.79 | % | 5.53 | % | 4.68 | % | ||||||||||||||||||||
| Net interest income | $ | 50,279 | $ | 52,020 | $ | 44,327 | ||||||||||||||||||||
| Net interest margin(4) | 5.94 | % | 6.36 | % | 5.87 | % | ||||||||||||||||||||
_______________
(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, collectively, Commercial Bank Loan Yield was 6.95%, 6.74% and 6.98%, respectively.
(4) For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, collectively, Commercial Bank Net Interest Margin was 4.18%, 4.64% and 3.99%, respectively.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate | Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate(1) | ||||||||||||
| (in thousands) | |||||||||||||||||
| Assets | |||||||||||||||||
| Interest earning assets: | |||||||||||||||||
| Interest-bearing deposits | $ | 194,080 | $ | 8,211 | 4.23 | % | $ | 98,319 | $ | 4,569 | 4.65 | % | |||||
| Federal funds sold | 59 | 2 | 3.39 | 57 | 3 | 5.26 | |||||||||||
| Investment securities available-for-sale | 236,346 | 6,976 | 2.95 | 228,909 | 5,441 | 2.38 | |||||||||||
| Restricted investments | 6,648 | 410 | 6.17 | 5,563 | 373 | 6.71 | |||||||||||
| Loans held for sale | 12,576 | 892 | 7.09 | 12,121 | 569 | 4.69 | |||||||||||
| Portfolio loans receivable(1)(2) | 2,765,758 | 244,380 | 8.84 | 2,142,638 | 202,346 | 9.44 | |||||||||||
| Total interest earning assets | 3,215,467 | 260,871 | 8.11 | 2,487,607 | 213,301 | 8.57 | |||||||||||
| Noninterest earning assets | 133,207 | 66,442 | |||||||||||||||
| Total assets | $ | 3,348,674 | $ | 2,554,049 | |||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Interest-bearing demand accounts | $ | 269,224 | $ | 1,513 | 0.56 | % | $ | 221,437 | $ | 1,003 | 0.45 | % | |||||
| Savings | 12,789 | 60 | 0.47 | 6,732 | 27 | 0.40 | |||||||||||
| Money market accounts | 960,882 | 33,195 | 3.45 | 704,002 | 28,741 | 4.08 | |||||||||||
| Time deposits | 825,847 | 29,003 | 3.51 | 561,369 | 26,399 | 4.70 | |||||||||||
| Borrowed funds | 37,196 | 1,108 | 2.98 | 63,686 | 2,385 | 3.74 | |||||||||||
| Total interest-bearing liabilities | 2,105,938 | 64,879 | 3.08 | 1,557,226 | 58,555 | 3.76 | |||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||
| Noninterest-bearing liabilities | 53,197 | 34,043 | |||||||||||||||
| Noninterest-bearing deposits | 811,798 | 675,360 | |||||||||||||||
| Stockholders' equity | 377,741 | 287,420 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,348,674 | $ | 2,554,049 | |||||||||||||
| Net interest spread | 5.03 | % | 4.81 | % | |||||||||||||
| Net interest income | $ | 195,992 | $ | 154,746 | |||||||||||||
| Net interest margin(3) | 6.10 | % | 6.22 | % | |||||||||||||
(1) Includes nonaccrual loans.
(2) For the years ended December 31, 2025 and 2024, collectively. Commercial Bank Loan Yield was 6.99% and 7.03%, respectively.
(3) For the years ended December 31, 2025 and 2024, collectively. Commercial Bank Net Interest Margin was 4.38% and 3.93%, respectively.
The Company's reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, OpenSky™ (the Company's credit card division), Windsor Advantage™ and Capital Bank Home Loans (the Company's mortgage loan division).
Prior to March 31, 2025, the Company disclosed Corporate as a reportable segment. The Company has determined that what was previously deemed the Corporate reportable segment consists of other business activities that are associated with the Commercial Bank and are reflected in the tabular disclosures that follow. It should be noted that such restructuring of the tabular disclosure did not result in any changes to the Company's revenue and expense allocation methodology. The Company restructured prior period tabular disclosures to achieve appropriate comparability.
The following schedules reported internally for performance assessment by the chief operating decision maker presents financial information for each reportable segment for the periods indicated. Total assets are presented as of December 31, 2025, September 30, 2025, and December 31, 2024.
| Segments | ||||||||||||||||||||
| For the three months ended December 31, 2025 | ||||||||||||||||||||
| (in thousands) | Commercial Bank | OpenSky™ | Windsor Advantage™ | CBHL | Consolidated | |||||||||||||||
| Interest income | $ | 51,994 | $ | 16,377 | $ | — | $ | 263 | $ | 68,634 | ||||||||||
| Interest expense | 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 (government guaranteed) | 295 | — | — | — | 295 | |||||||||||||||
| Other income | 698 | 10 | — | 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 | 40 | 137 | 2,638 | |||||||||||||||
| Professional fees | 3,047 | 947 | 53 | 247 | 4,294 | |||||||||||||||
| Data processing | 1,026 | 6,687 | (165 | ) | (46 | ) | 7,502 | |||||||||||||
| Advertising | 608 | 634 | (3 | ) | 159 | 1,398 | ||||||||||||||
| Loan processing | 101 | 475 | 163 | 413 | 1,152 | |||||||||||||||
| Foreclosed real estate expenses, net | — | — | — | — | — | |||||||||||||||
| Merger-related expenses | — | — | — | — | — | |||||||||||||||
| Operational and other card fraud related losses | 13 | 737 | — | — | 750 | |||||||||||||||
| Regulatory assessment expenses | 230 | 388 | 143 | 97 | 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 WindsorTM, for the three months ended December 31, 2025.
| Segments | |||||||||||||||||||||
| For the three months ended September 30, 2025 | |||||||||||||||||||||
| (in thousands) | Commercial Bank | OpenSky™ | Windsor Advantage™ | CBHL | Consolidated | ||||||||||||||||
| Interest income(2) | $ | 49,035 | $ | 15,628 | $ | — | $ | 228 | $ | 64,891 | |||||||||||
| Interest expense(3) | 12,768 | — | — | 103 | 12,871 | ||||||||||||||||
| Net interest income | 36,267 | 15,628 | — | 125 | 52,020 | ||||||||||||||||
| Provision for credit losses | 1,852 | 2,798 | — | — | 4,650 | ||||||||||||||||
| Provision for credit losses on unfunded commitments | 217 | — | — | — | 217 | ||||||||||||||||
| Net interest income after provision | 34,198 | 12,830 | — | 125 | 47,153 | ||||||||||||||||
| Noninterest income | |||||||||||||||||||||
| Service charges on deposits | 425 | — | — | — | 425 | ||||||||||||||||
| Credit card fees | — | 4,509 | — | — | 4,509 | ||||||||||||||||
| Mortgage banking revenue | 315 | — | — | 1,612 | 1,927 | ||||||||||||||||
| Government lending revenue | 14 | — | — | — | 14 | ||||||||||||||||
| Government loan servicing revenue(1) | (1,074 | ) | — | 5,339 | — | 4,265 | |||||||||||||||
| Loan servicing rights (government guaranteed) | 368 | — | — | — | 368 | ||||||||||||||||
| Other (loss) income | (557 | ) | (33 | ) | — | 150 | (440 | ) | |||||||||||||
| Total noninterest income | (509 | ) | 4,476 | 5,339 | 1,762 | 11,068 | |||||||||||||||
| Noninterest expenses | |||||||||||||||||||||
| Salaries and employee benefits | 10,559 | 3,271 | 2,455 | 1,443 | 17,728 | ||||||||||||||||
| Occupancy and equipment | 1,635 | 632 | 416 | 166 | 2,849 | ||||||||||||||||
| Professional fees | 1,079 | 571 | 198 | 283 | 2,131 | ||||||||||||||||
| Data processing | 350 | 7,154 | 97 | 53 | 7,654 | ||||||||||||||||
| Advertising | 694 | 833 | 76 | 111 | 1,714 | ||||||||||||||||
| Loan processing | 740 | 15 | 67 | 292 | 1,114 | ||||||||||||||||
| Foreclosed real estate expenses, net | — | — | — | — | — | ||||||||||||||||
| Merger-related expenses | 697 | — | — | — | 697 | ||||||||||||||||
| Operational and other card fraud related losses | — | 923 | — | — | 923 | ||||||||||||||||
| Regulatory assessment expenses | 788 | (30 | ) | (11 | ) | (7 | ) | 740 | |||||||||||||
| Other operating | 1,493 | 587 | 614 | 110 | 2,804 | ||||||||||||||||
| Total noninterest expenses | 18,035 | 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 Windsor™, for the three months ended September 30, 2025
(2) Interest income of $52.0 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.
(3) Interest expense of $12.8 million for the Commercial Bank includes the $4.6 million Call of Brokered Time Deposits.
| Segments | |||||||||||||||||||
| For the three months ended December 31, 2024 | |||||||||||||||||||
| (in thousands) | Commercial Bank | OpenSky™ | Windsor Advantage™ | CBHL | Consolidated | ||||||||||||||
| Interest income | $ | 46,061 | $ | 15,454 | $ | — | $ | 192 | $ | 61,707 | |||||||||
| Interest expense | 17,249 | — | — | 131 | 17,380 | ||||||||||||||
| Net interest income | 28,812 | 15,454 | — | 61 | 44,327 | ||||||||||||||
| Provision for credit losses | 6,651 | 1,177 | — | — | 7,828 | ||||||||||||||
| Provision for credit losses on unfunded commitments | 122 | — | — | — | 122 | ||||||||||||||
| Net interest income after provision | 22,039 | 14,277 | — | 61 | 36,377 | ||||||||||||||
| Noninterest income | |||||||||||||||||||
| Service charges on deposits | 241 | — | — | — | 241 | ||||||||||||||
| Credit card fees | — | 3,733 | — | — | 3,733 | ||||||||||||||
| Mortgage banking revenue | 284 | — | — | 1,537 | 1,821 | ||||||||||||||
| Government lending revenue | 2,301 | — | — | — | 2,301 | ||||||||||||||
| Government loan servicing revenue(1) | (543 | ) | — | 4,536 | — | 3,993 | |||||||||||||
| Loan servicing rights (government guaranteed | 1,013 | — | — | — | 1,013 | ||||||||||||||
| Non-recurring equity and debt investment write-down | (2,620 | ) | — | — | — | (2,620 | ) | ||||||||||||
| Other income | 1,252 | 10 | 30 | 139 | 1,431 | ||||||||||||||
| Total noninterest income | 1,928 | 3,743 | 4,566 | 1,676 | 11,913 | ||||||||||||||
| Noninterest expense | |||||||||||||||||||
| Salaries and employee benefits | 10,383 | 2,985 | 1,662 | 1,483 | 16,513 | ||||||||||||||
| Occupancy and equipment | 1,655 | 617 | 537 | 167 | 2,976 | ||||||||||||||
| Professional fees | 914 | 845 | 123 | 268 | 2,150 | ||||||||||||||
| Data processing | 639 | 6,495 | 32 | 44 | 7,210 | ||||||||||||||
| Advertising | 767 | 79 | 106 | 80 | 1,032 | ||||||||||||||
| Loan processing | 754 | 14 | 3 | 198 | 969 | ||||||||||||||
| Foreclosed real estate expenses, net | — | — | — | — | — | ||||||||||||||
| Merger-related expenses | 2,615 | — | — | — | 2,615 | ||||||||||||||
| Operational and other card fraud related losses | 24 | 969 | — | — | 993 | ||||||||||||||
| Regulatory assessment expenses | 525 | 21 | 1 | 6 | 553 | ||||||||||||||
| Other operating | 1,596 | 570 | 206 | 131 | 2,503 | ||||||||||||||
| Total noninterest expenses | 19,872 | 12,595 | 2,670 | 2,377 | 37,514 | ||||||||||||||
| Net income (loss) before taxes | $ | 4,095 | $ | 5,425 | $ | 1,896 | $ | (640 | ) | $ | 10,776 | ||||||||
| Total assets | $ | 3,033,792 | $ | 125,913 | $ | 25,515 | $ | 21,691 | $ | 3,206,911 | |||||||||
________________________
(1) Gross government loan servicing revenue totaled $4.5 million, including $0.5 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended December 31, 2024.
| Segments | ||||||||||||||||||
| For the year ended December 31, 2025 | ||||||||||||||||||
| (in thousands) | Commercial Bank | OpenSky™ | Windsor Advantage™ | CBHL | Consolidated | |||||||||||||
| Interest income(3) | $ | 199,122 | $ | 60,943 | $ | — | $ | 806 | $ | 260,871 | ||||||||
| Interest expense(4) | 64,503 | — | — | 376 | 64,879 | |||||||||||||
| Net interest income | 134,619 | 60,943 | — | 430 | 195,992 | |||||||||||||
| Provision for credit losses | 6,172 | 8,793 | — | — | 14,965 | |||||||||||||
| Release of credit losses on unfunded commitments | 188 | — | — | — | 188 | |||||||||||||
| Net interest income after provision | 128,259 | 52,150 | — | 430 | 180,839 | |||||||||||||
| Noninterest income | ||||||||||||||||||
| Service charges on deposits | 1,316 | — | — | — | 1,316 | |||||||||||||
| Credit card fees | — | 17,366 | — | — | 17,366 | |||||||||||||
| Mortgage banking revenue | 1,476 | — | — | 5,996 | 7,472 | |||||||||||||
| Government lending revenue | 4,222 | — | — | — | 4,222 | |||||||||||||
| Government loan servicing revenue(1) | (4,116 | ) | — | 19,629 | — | 15,513 | ||||||||||||
| Loan servicing rights (government guaranteed)(2) | 545 | — | — | — | 545 | |||||||||||||
| Other income | 1,913 | 13 | — | 827 | 2,753 | |||||||||||||
| Total noninterest income | 5,356 | 17,379 | 19,629 | 6,823 | 49,187 | |||||||||||||
| Noninterest expenses | ||||||||||||||||||
| Salaries and employee benefits | 43,346 | 13,057 | 9,795 | 5,971 | 72,169 | |||||||||||||
| Occupancy and equipment | 6,888 | 2,381 | 1,535 | 588 | 11,392 | |||||||||||||
| Professional fees | 6,849 | 2,661 | 442 | 1,007 | 10,959 | |||||||||||||
| Data processing | 2,270 | 27,320 | 118 | 80 | 29,788 | |||||||||||||
| Advertising | 2,815 | 2,811 | 212 | 424 | 6,262 | |||||||||||||
| Loan processing | 1,968 | 533 | 291 | 1,196 | 3,988 | |||||||||||||
| Foreclosed real estate expenses, net | 1 | — | — | — | 1 | |||||||||||||
| Merger-related expenses | 3,361 | — | — | — | 3,361 | |||||||||||||
| Operational and other card fraud related losses | 144 | 3,365 | — | — | 3,509 | |||||||||||||
| Regulatory assessment expenses | 2,743 | 388 | 143 | 97 | 3,371 | |||||||||||||
| Other operating | 5,357 | 2,407 | 1,985 | 533 | 10,282 | |||||||||||||
| Total noninterest expenses | 75,742 | 54,923 | 14,521 | 9,896 | 155,082 | |||||||||||||
| Net income (loss) before taxes | $ | 57,873 | $ | 14,606 | $ | 5,108 | $ | (2,643 | ) | $ | 74,944 | |||||||
| Total assets | $ | 3,407,326 | $ | 140,914 | $ | 25,993 | $ | 31,974 | $ | 3,606,207 | ||||||||
________________________
(1) Gross government loan servicing revenue totaled $19.6 million, including $4.1 million of servicing fees earned from the Commercial Bank by WindsorTM, for the year ended December 31, 2025.
(2) Loan servicing rights of $0.5 million for the Commercial Bank includes a $1.7 million fair value adjustment associated with the loan servicing portfolio.
(3)Interest income of $199.1 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.
(4) Interest expense of $64.5 million for the Commercial Bank includes the $4.6 million Call of Brokered Time Deposits.
| Segments | |||||||||||||||||||
| For the year ended December 31, 2024 | |||||||||||||||||||
| (in thousands) | Commercial Bank | OpenSky™ | Windsor Advantage™ | CBHL | Consolidated | ||||||||||||||
| Interest income | $ | 150,948 | $ | 61,785 | $ | — | $ | 568 | $ | 213,301 | |||||||||
| Interest expense | 58,192 | — | — | 363 | 58,555 | ||||||||||||||
| Net interest income | 92,756 | 61,785 | — | 205 | 154,746 | ||||||||||||||
| Provision for credit losses | 10,391 | 7,329 | — | — | 17,720 | ||||||||||||||
| Provision for credit losses on unfunded commitments | 385 | — | — | — | 385 | ||||||||||||||
| Net interest income after provision | 81,980 | 54,456 | — | 205 | 136,641 | ||||||||||||||
| Noninterest income | |||||||||||||||||||
| Service charges on deposits | 883 | — | — | — | 883 | ||||||||||||||
| Credit card fees | — | 15,999 | — | — | 15,999 | ||||||||||||||
| Mortgage banking revenue | 1,072 | — | — | 6,074 | 7,146 | ||||||||||||||
| Government lending revenue | 2,301 | — | — | — | 2,301 | ||||||||||||||
| Government loan servicing revenue(1) | (543 | ) | — | 4,536 | — | 3,993 | |||||||||||||
| Loan servicing rights (government guaranteed) | 1,013 | — | — | — | 1,013 | ||||||||||||||
| Non-recurring equity and debt investment write-down | (2,620 | ) | — | — | — | (2,620 | ) | ||||||||||||
| Other income | 1,932 | 123 | 30 | 610 | 2,695 | ||||||||||||||
| Total noninterest income | 4,038 | 16,122 | 4,566 | 6,684 | 31,410 | ||||||||||||||
| Noninterest expenses | |||||||||||||||||||
| Salaries and employee benefits | 36,229 | 12,156 | 1,662 | 5,990 | 56,037 | ||||||||||||||
| Occupancy and equipment | 5,085 | 2,035 | 537 | 587 | 8,244 | ||||||||||||||
| Professional fees | 3,575 | 3,183 | 123 | 965 | 7,846 | ||||||||||||||
| Data processing | 1,496 | 25,991 | 32 | 170 | 27,689 | ||||||||||||||
| Advertising | 1,982 | 3,944 | 106 | 327 | 6,359 | ||||||||||||||
| Loan processing | 1,517 | 59 | 3 | 852 | 2,431 | ||||||||||||||
| Foreclosed real estate expenses, net | 2 | — | — | — | 2 | ||||||||||||||
| Merger-related expenses | 3,930 | — | — | — | 3,930 | ||||||||||||||
| Operational and other card fraud related losses | 37 | 3,677 | — | — | 3,714 | ||||||||||||||
| Regulatory assessment expenses | 1,909 | 21 | 1 | 6 | 1,937 | ||||||||||||||
| Other operating | 5,165 | 2,179 | 206 | 480 | 8,030 | ||||||||||||||
| Total noninterest expenses | 60,927 | 53,245 | 2,670 | 9,377 | 126,219 | ||||||||||||||
| Net income (loss) before taxes | $ | 25,091 | $ | 17,333 | $ | 1,896 | $ | (2,488 | ) | $ | 41,832 | ||||||||
| Total assets | $ | 3,033,792 | $ | 125,913 | $ | 25,515 | $ | 21,691 | $ | 3,206,911 | |||||||||
________________________
(1) Gross government loan servicing revenue totaled $4.5 million, including $0.5 million of servicing fees earned from the Commercial Bank by WindsorTM, for the year ended December 31, 2024.
| HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited | ||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| (in thousands, except per share data) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
| Earnings: | ||||||||||||||||||||
| Net income | $ | 15,037 | $ | 15,065 | $ | 13,136 | $ | 13,932 | $ | 7,533 | ||||||||||
| Earnings per common share, diluted | 0.91 | 0.89 | 0.78 | 0.82 | 0.45 | |||||||||||||||
| Net interest margin | 5.94 | % | 6.36 | % | 6.04 | % | 6.05 | % | 5.87 | % | ||||||||||
| Commercial Bank net interest margin(2) | 4.18 | % | 4.64 | % | 4.38 | % | 4.32 | % | 3.99 | % | ||||||||||
| Return on average assets(1) | 1.71 | % | 1.77 | % | 1.60 | % | 1.75 | % | 0.96 | % | ||||||||||
| Return on average equity(1) | 15.23 | % | 15.57 | % | 14.17 | % | 15.56 | % | 8.50 | % | ||||||||||
| Efficiency ratio | 62.32 | % | 60.79 | % | 65.14 | % | 64.94 | % | 66.70 | % | ||||||||||
| Balance Sheet: | ||||||||||||||||||||
| Total portfolio loans receivable, net deferred fees | $ | 2,959,457 | $ | 2,821,983 | $ | 2,739,808 | $ | 2,678,406 | $ | 2,630,163 | ||||||||||
| Total deposits | 3,092,979 | 2,912,053 | 2,940,738 | 2,891,333 | 2,761,939 | |||||||||||||||
| Total assets | 3,606,207 | 3,389,442 | 3,388,662 | 3,349,805 | 3,206,911 | |||||||||||||||
| Total stockholders' equity | 401,978 | 394,770 | 380,035 | 369,577 | 355,139 | |||||||||||||||
| Total average portfolio loans receivable, net deferred fees | 2,902,033 | 2,789,815 | 2,733,865 | 2,634,110 | 2,592,960 | |||||||||||||||
| Total average deposits | 2,992,784 | 2,917,067 | 2,841,153 | 2,768,284 | 2,611,994 | |||||||||||||||
| Portfolio loans-to-deposit ratio (period-end balances) | 95.68 | % | 96.91 | % | 93.17 | % | 92.64 | % | 95.23 | % | ||||||||||
| Portfolio loans-to-deposit ratio (average balances) | 96.97 | % | 95.64 | % | 96.22 | % | 95.15 | % | 99.27 | % | ||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Nonperforming assets to total assets | 1.62 | % | 1.54 | % | 1.07 | % | 1.28 | % | 0.94 | % | ||||||||||
| Nonperforming loans to total loans | 1.84 | % | 1.85 | % | 1.32 | % | 1.60 | % | 1.15 | % | ||||||||||
| Net charge-offs to average portfolio loans (1) | 0.32 | % | 0.35 | % | 0.75 | % | 0.38 | % | 0.37 | % | ||||||||||
| Allowance for credit losses to total loans | 1.85 | % | 1.88 | % | 1.73 | % | 1.81 | % | 1.85 | % | ||||||||||
| Allowance for credit losses to non-performing loans | 100.44 | % | 101.53 | % | 131.19 | % | 112.86 | % | 160.88 | % | ||||||||||
| Bank Capital Ratios: | ||||||||||||||||||||
| Total risk based capital ratio | 12.60 | % | 12.95 | % | 13.13 | % | 12.93 | % | 12.79 | % | ||||||||||
| Tier-1 risk based capital ratio | 11.34 | % | 11.69 | % | 11.87 | % | 11.67 | % | 11.54 | % | ||||||||||
| Leverage ratio | 9.24 | % | 9.34 | % | 9.39 | % | 9.27 | % | 9.17 | % | ||||||||||
| Common Equity Tier-1 capital ratio | 11.34 | % | 11.69 | % | 11.87 | % | 11.67 | % | 11.54 | % | ||||||||||
| Tangible common equity | 8.75 | % | 9.06 | % | 8.84 | % | 8.66 | % | 9.31 | % | ||||||||||
| Holding Company Capital Ratios: | ||||||||||||||||||||
| Total risk based capital ratio | 14.31 | % | 15.25 | % | 15.30 | % | 14.97 | % | 15.48 | % | ||||||||||
| Tier-1 risk based capital ratio | 13.05 | % | 13.62 | % | 13.66 | % | 13.32 | % | 13.83 | % | ||||||||||
| Leverage ratio | 10.72 | % | 10.98 | % | 10.90 | % | 10.68 | % | 11.07 | % | ||||||||||
| Common Equity Tier-1 capital ratio | 12.98 | % | 13.54 | % | 13.58 | % | 13.24 | % | 13.74 | % | ||||||||||
| Tangible common equity | 10.08 | % | 10.60 | % | 10.22 | % | 9.94 | % | 11.07 | % | ||||||||||
_______________
(1) Annualized.
(2) Refer to Appendix for reconciliation of non-GAAP measures.
| HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (Continued) | ||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| (in thousands, except per share data) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
| Composition of Loans: | ||||||||||||||||||||
| Commercial real estate, non owner-occupied | $ | 533,141 | $ | 509,878 | $ | 495,341 | $ | 484,399 | $ | 471,329 | ||||||||||
| Commercial real estate, owner-occupied | 418,701 | 442,827 | 436,421 | 420,643 | 440,026 | |||||||||||||||
| Residential real estate | 765,808 | 740,060 | 710,730 | 693,597 | 688,552 | |||||||||||||||
| Construction real estate | 359,566 | 344,290 | 343,189 | 343,280 | 321,252 | |||||||||||||||
| Commercial and industrial | 698,289 | 619,148 | 593,279 | 594,331 | 554,550 | |||||||||||||||
| Lender finance | 41,421 | 31,883 | 32,494 | 23,165 | 28,574 | |||||||||||||||
| Business equity lines of credit | 3,818 | 2,931 | 2,853 | 3,468 | 3,090 | |||||||||||||||
| Credit card, net of reserve(3) | 142,397 | 136,483 | 131,029 | 118,709 | 127,766 | |||||||||||||||
| Other consumer loans | 1,930 | 2,010 | 2,727 | 2,200 | 2,089 | |||||||||||||||
| Portfolio loans receivable | $ | 2,965,071 | $ | 2,829,510 | $ | 2,748,063 | $ | 2,683,792 | $ | 2,637,228 | ||||||||||
| Deferred origination fees, net | (5,614 | ) | (7,527 | ) | (8,255 | ) | (5,386 | ) | (7,065 | ) | ||||||||||
| Portfolio loans receivable, net | $ | 2,959,457 | $ | 2,821,983 | $ | 2,739,808 | $ | 2,678,406 | $ | 2,630,163 | ||||||||||
| Composition of Deposits: | ||||||||||||||||||||
| Noninterest-bearing | $ | 852,520 | $ | 857,543 | $ | 836,979 | $ | 812,224 | $ | 810,928 | ||||||||||
| Interest-bearing demand | 257,233 | 275,767 | 319,431 | 296,455 | 238,881 | |||||||||||||||
| Savings | 11,679 | 12,835 | 12,879 | 12,819 | 13,488 | |||||||||||||||
| Money markets | 1,105,183 | 989,159 | 960,237 | 912,418 | 816,708 | |||||||||||||||
| Customer time deposits | 489,687 | 539,207 | 541,079 | 549,630 | 548,901 | |||||||||||||||
| Brokered time deposits | 376,677 | 237,542 | 270,133 | 307,787 | 333,033 | |||||||||||||||
| Total deposits | $ | 3,092,979 | $ | 2,912,053 | $ | 2,940,738 | $ | 2,891,333 | $ | 2,761,939 | ||||||||||
| Capital Bank Home Loan Metrics: | ||||||||||||||||||||
| Origination of loans held for sale | $ | 107,283 | $ | 80,651 | $ | 80,334 | $ | 65,815 | $ | 89,998 | ||||||||||
| Mortgage loans sold | 82,998 | 66,409 | 59,663 | 54,144 | 77,399 | |||||||||||||||
| Gain on sale of loans | 2,145 | 1,698 | 1,597 | 1,664 | 1,897 | |||||||||||||||
| Purchase volume as a % of originations | 72.77 | % | 92.32 | % | 91.61 | % | 90.73 | % | 90.42 | % | ||||||||||
| Gain on sale as a % of loans sold(4) | 2.58 | % | 2.56 | % | 2.68 | % | 3.07 | % | 2.45 | % | ||||||||||
| Mortgage commissions | $ | 899 | $ | 656 | $ | 501 | $ | 545 | $ | 620 | ||||||||||
| OpenSky™ Portfolio Metrics: | ||||||||||||||||||||
| Open customer accounts | 585,492 | 587,641 | 585,372 | 563,718 | 552,566 | |||||||||||||||
| Secured credit card loans, gross | $ | 83,065 | $ | 84,737 | $ | 86,400 | $ | 81,252 | $ | 87,226 | ||||||||||
| Unsecured credit card loans, gross | 61,378 | 53,633 | 46,352 | 38,987 | 42,430 | |||||||||||||||
| Noninterest secured credit card deposits | 163,184 | 166,874 | 168,936 | 168,796 | 166,355 | |||||||||||||||
_______________
(3) Credit card loans are presented net of reserve for interest and fees.
(4) Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.
Appendix
Reconciliation of Non-GAAP Measures
The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company's industry. Investors should recognize that the Company's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.
| Core Earnings Metrics | Quarter Ended | ||||||||||||||||||
| (in thousands, except per share data) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Net Income | $ | 15,037 | $ | 15,065 | $ | 13,136 | $ | 13,932 | $ | 7,533 | |||||||||
| Deduct: Income from the Call of Brokered Time Deposits, Net of Tax | — | (3,489 | ) | — | — | — | |||||||||||||
| Add: Merger-Related Expenses, Net of Tax | — | 575 | 1,070 | 964 | 2,151 | ||||||||||||||
| Add: Non-Recurring Equity and Debt Investment Write-Down | — | — | — | — | 2,620 | ||||||||||||||
| Add: IFH ACL Provision, Net of Tax | — | — | — | — | 3,169 | ||||||||||||||
| Core Net Income | $ | 15,037 | $ | 12,151 | $ | 14,206 | $ | 14,896 | $ | 15,473 | |||||||||
| Weighted Average Common Shares - Diluted | 16,493 | 16,844 | 16,802 | 16,925 | 16,729 | ||||||||||||||
| Earnings per Share - Diluted | $ | 0.91 | $ | 0.89 | $ | 0.78 | $ | 0.82 | $ | 0.45 | |||||||||
| Core Earnings per Share - Diluted | $ | 0.91 | $ | 0.72 | $ | 0.85 | $ | 0.88 | $ | 0.92 | |||||||||
| Average Assets | $ | 3,498,540 | $ | 3,378,296 | $ | 3,292,533 | $ | 3,221,964 | $ | 3,120,107 | |||||||||
| Return on Average Assets(1) | 1.71 | % | 1.77 | % | 1.60 | % | 1.75 | % | 0.96 | % | |||||||||
| Core Return on Average Assets(1) | 1.71 | % | 1.43 | % | 1.73 | % | 1.87 | % | 1.97 | % | |||||||||
| Average Equity | $ | 391,750 | $ | 383,922 | $ | 371,795 | $ | 363,115 | $ | 352,537 | |||||||||
| Return on Average Equity(1) | 15.23 | % | 15.57 | % | 14.17 | % | 15.56 | % | 8.50 | % | |||||||||
| Core Return on Average Equity(1) | 15.23 | % | 12.56 | % | 15.33 | % | 16.64 | % | 17.46 | % | |||||||||
| Net Interest Income | $ | 50,279 | $ | 52,020 | $ | 47,646 | $ | 46,047 | $ | 44,327 | |||||||||
| Noninterest Income | 12,464 | 11,068 | 13,106 | 12,549 | 11,913 | ||||||||||||||
| Total Revenue | $ | 62,743 | $ | 63,088 | $ | 60,752 | $ | 58,596 | $ | 56,240 | |||||||||
| Noninterest Expense | 39,103 | 38,354 | 39,572 | 38,053 | 37,514 | ||||||||||||||
| Efficiency Ratio(2) | 62.3 | % | 60.8 | % | 65.1 | % | 64.9 | % | 66.7 | % | |||||||||
| Net Interest Income | $ | 50,279 | $ | 52,020 | $ | 47,646 | $ | 46,047 | $ | 44,327 | |||||||||
| Less: Brokered Time Deposit Call | — | 4,618 | — | — | — | ||||||||||||||
| Core Net Interest Income (a) | $ | 50,279 | $ | 47,402 | $ | 47,646 | $ | 46,047 | $ | 44,327 | |||||||||
| Noninterest Income | 12,464 | 11,068 | 13,106 | 12,549 | 11,913 | ||||||||||||||
| Add: Non-Recurring Equity and Debt Investment Write-Down | — | — | — | — | 2,620 | ||||||||||||||
| Core Fee Revenue (b) | $ | 12,464 | $ | 11,068 | $ | 13,106 | $ | 12,549 | $ | 14,533 | |||||||||
| Core Revenue (a) + (b) | $ | 62,743 | $ | 58,470 | $ | 60,752 | $ | 58,596 | $ | 58,860 | |||||||||
| Noninterest Expense | $ | 39,103 | $ | 38,354 | $ | 39,572 | $ | 38,053 | $ | 37,514 | |||||||||
| Less: Merger-Related Expenses | — | 697 | 1,398 | 1,266 | 2,615 | ||||||||||||||
| Core Noninterest Expense | $ | 39,103 | $ | 37,657 | $ | 38,174 | $ | 36,787 | $ | 34,899 | |||||||||
| Core Efficiency Ratio(2) | 62.3 | % | 64.4 | % | 62.8 | % | 62.8 | % | 59.3 | % | |||||||||
_______________
(1) Annualized.
(2) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).
| Core Earnings Metrics | Year Ended | ||||||
| (in thousands, except per share data) | December 31, 2025 | December 31, 2024 | |||||
| Net Income | $ | 57,170 | $ | 30,972 | |||
| Deduct: Income from the Call of Brokered Time Deposits, Net of Tax | (3,489 | ) | — | ||||
| Add: Merger-Related Expenses, Net of Tax | 2,609 | 3,308 | |||||
| Add: Non-Recurring Equity and Debt Investment Write-Down | — | 2,620 | |||||
| Add: IFH ACL Provision, Net of Tax | — | 3,169 | |||||
| Core Net Income | $ | 56,290 | $ | 40,069 | |||
| Weighted Average Common Shares - Diluted | 16,768 | 14,640 | |||||
| Earnings per Share - Diluted | $ | 3.41 | $ | 2.12 | |||
| Core Earnings per Share - Diluted | $ | 3.36 | $ | 2.74 | |||
| Average Assets | $ | 3,348,674 | $ | 2,554,049 | |||
| Return on Average Assets | 1.71 | % | 1.21 | % | |||
| Core Return on Average Assets | 1.68 | % | 1.57 | % | |||
| Average Equity | $ | 377,741 | $ | 287,420 | |||
| Return on Average Equity | 15.13 | % | 10.78 | % | |||
| Core Return on Average Equity | 14.90 | % | 13.94 | % | |||
| Net Interest Income | $ | 195,992 | $ | 154,746 | |||
| Noninterest Income | 49,187 | 31,410 | |||||
| Total Revenue | $ | 245,179 | $ | 186,156 | |||
| Noninterest Expense | 155,082 | 126,219 | |||||
| Efficiency Ratio(1) | 63.3 | % | 67.8 | % | |||
| Net Interest Income | $ | 195,992 | $ | 154,746 | |||
| Less: Brokered Time Deposit Call | 4,618 | — | |||||
| Core Net Interest Income (a) | $ | 191,374 | $ | 154,746 | |||
| Noninterest Income | 49,187 | 31,410 | |||||
| Add: Non-Recurring Equity and Debt Investment Write-Down | — | 2,620 | |||||
| Core Fee Revenue (b) | $ | 49,187 | $ | 34,030 | |||
| Core Revenue (a) + (b) | $ | 240,561 | $ | 188,776 | |||
| Noninterest Expense | $ | 155,082 | $ | 126,219 | |||
| Less: Merger-Related Expenses | 3,361 | 3,930 | |||||
| Core Noninterest Expense | $ | 151,721 | $ | 122,289 | |||
| Core Efficiency Ratio(1) | 63.1 | % | 64.8 | % | |||
_______________
(1) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).
| Commercial Bank Net Interest Margin | Quarter Ended | ||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Commercial Bank Net Interest Income | $ | 33,764 | $ | 36,267 | $ | 33,073 | $ | 31,515 | $ | 28,812 | |||||||||
| Average Interest Earning Assets | 3,360,576 | 3,246,653 | 3,163,421 | 3,087,943 | 3,003,081 | ||||||||||||||
| Less: Average Non-Commercial Bank Interest Earning Assets | 152,715 | 144,558 | 132,196 | 128,278 | 133,401 | ||||||||||||||
| Average Commercial Bank Interest Earning Assets | $ | 3,207,861 | $ | 3,102,095 | $ | 3,031,225 | $ | 2,959,665 | $ | 2,869,680 | |||||||||
| Commercial Bank Net Interest Margin | 4.18 | % | 4.64 | % | 4.38 | % | 4.32 | % | 3.99 | % | |||||||||
| Commercial Bank Net Interest Margin | Year Ended | ||||||
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||
| Commercial Bank Net Interest Income | $ | 134,619 | $ | 92,756 | |||
| Average Interest Earning Assets | 3,215,483 | 2,487,607 | |||||
| Less: Average Non-Commercial Bank Interest Earning Assets | 139,344 | 124,863 | |||||
| Average Commercial Bank Interest Earning Assets | $ | 3,076,139 | $ | 2,362,744 | |||
| Commercial Bank Net Interest Margin | 4.38 | % | 3.93 | % | |||
| Commercial Bank Portfolio Loans Receivable Yield | Quarter Ended | ||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Portfolio Loans Receivable Interest Income | $ | 64,670 | $ | 60,610 | $ | 60,647 | $ | 58,453 | $ | 58,409 | |||||||||
| Less: Credit Card Loan Income | 16,197 | 15,387 | 14,116 | 14,148 | 15,022 | ||||||||||||||
| Commercial Bank Portfolio Loans Receivable Interest Income | $ | 48,473 | $ | 45,223 | $ | 46,531 | $ | 44,305 | $ | 43,387 | |||||||||
| Average Portfolio Loans Receivable | 2,902,033 | 2,789,815 | 2,733,865 | 2,634,110 | 2,592,960 | ||||||||||||||
| Less: Average Credit Card Loans | 133,858 | 129,100 | 121,414 | 118,723 | 120,993 | ||||||||||||||
| Total Commercial Bank Average Portfolio Loans Receivable | $ | 2,768,175 | $ | 2,660,715 | $ | 2,612,451 | $ | 2,515,387 | $ | 2,471,967 | |||||||||
| Commercial Bank Portfolio Loans Receivable Yield | 6.95 | % | 6.74 | % | 7.14 | % | 7.14 | % | 6.98 | % | |||||||||
| Commercial Bank Portfolio Loans Receivable Yield | Year Ended | ||||||
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||
| Portfolio Loans Receivable Interest Income | $ | 244,380 | $ | 202,346 | |||
| Less: Credit Card Loan Income | 59,848 | 59,821 | |||||
| Commercial Bank Portfolio Loans Receivable Interest Income | $ | 184,532 | $ | 142,525 | |||
| Average Portfolio Loans Receivable | 2,765,758 | 2,142,638 | |||||
| Less: Average Credit Card Loans | 125,824 | 115,581 | |||||
| Total Commercial Bank Average Portfolio Loans Receivable | $ | 2,639,934 | $ | 2,027,057 | |||
| Commercial Bank Portfolio Loans Receivable Yield | 6.99 | % | 7.03 | % | |||
| Pre-tax, Pre-Provision Net Revenue ("PPNR") | Quarter Ended | ||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||
| Net Income | $ | 15,037 | $ | 15,065 | $ | 13,136 | $ | 13,932 | $ | 7,533 | |||||
| Add: Income Tax Expense | 4,644 | 4,802 | 3,963 | 4,365 | 3,243 | ||||||||||
| Add: Provision for Credit Losses | 3,988 | 4,650 | 4,081 | 2,246 | 7,828 | ||||||||||
| Add: (Release of) Provision for Credit Losses on Unfunded Commitments | (29 | ) | 217 | — | — | 122 | |||||||||
| Pre-tax, Pre-Provision Net Revenue ("PPNR") | $ | 23,640 | $ | 24,734 | $ | 21,180 | $ | 20,543 | $ | 18,726 | |||||
| Pre-tax, Pre-Provision Net Revenue ("PPNR") | Year Ended | ||||
| (in thousands) | December 31, 2025 | December 31, 2024 | |||
| Net Income | $ | 57,170 | $ | 30,972 | |
| Add: Income Tax Expense | 17,774 | 10,860 | |||
| Add: Provision for Credit Losses | 14,965 | 17,720 | |||
| Add: (Release of) Provision for Credit Losses on Unfunded Commitments | 188 | 385 | |||
| Pre-tax, Pre-Provision Net Revenue ("PPNR") | $ | 90,097 | $ | 59,937 | |
| Core PPNR | Quarter Ended | |||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||
| Net Income | $ | 15,037 | $ | 15,065 | $ | 13,136 | $ | 13,932 | $ | 7,533 | ||||||
| Add: Income Tax Expense | 4,644 | 4,802 | 3,963 | 4,365 | 3,243 | |||||||||||
| Add: Provision for Credit Losses | 3,988 | 4,650 | 4,081 | 2,246 | 7,828 | |||||||||||
| Add: (Release of) Provision for Credit Losses on Unfunded Commitments | (29 | ) | 217 | — | — | 122 | ||||||||||
| Deduct: Income from the Call of Brokered Time Deposits | — | (4,618 | ) | — | — | — | ||||||||||
| Add: Merger-Related Expenses | — | 697 | 1,398 | 1,266 | 2,615 | |||||||||||
| Add: Non-Recurring Equity and Debt Investment Write-Down | — | — | — | — | 2,620 | |||||||||||
| Core PPNR | $ | 23,640 | $ | 20,813 | $ | 22,578 | $ | 21,809 | $ | 23,961 | ||||||
| Core PPNR | Year Ended | |||||
| (in thousands) | December 31, 2025 | December 31, 2024 | ||||
| Net Income | $ | 57,170 | $ | 30,972 | ||
| Add: Income Tax Expense | 17,774 | 10,860 | ||||
| Add: Provision for Credit Losses | 14,965 | 17,720 | ||||
| Add: (Release of) Provision for Credit Losses on Unfunded Commitments | 188 | 385 | ||||
| Deduct: Income from the Call of Brokered Time Deposits | (4,618 | ) | — | |||
| Add: Merger-Related Expenses | 3,361 | 3,930 | ||||
| Add: Non-Recurring Equity and Debt Investment Write-Down | — | 2,620 | ||||
| Core PPNR | $ | 88,840 | $ | 66,487 | ||
| Allowance for Credit Losses to Total Portfolio Loans | Quarter Ended | ||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Allowance for Credit Losses | $ | 54,660 | $ | 53,045 | $ | 47,447 | $ | 48,454 | $ | 48,652 | |||||||||
| Total Portfolio Loans | 2,959,457 | 2,821,983 | 2,739,808 | 2,678,406 | 2,630,163 | ||||||||||||||
| Allowance for Credit Losses to Total Portfolio Loans | 1.85 | % | 1.88 | % | 1.73 | % | 1.81 | % | 1.85 | % | |||||||||
| Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans | Quarter Ended | ||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Allowance for Credit Losses | $ | 54,660 | $ | 53,045 | $ | 47,447 | $ | 48,454 | $ | 48,652 | |||||||||
| Less: Credit Card Allowance for Credit Losses | 8,232 | 7,413 | 6,762 | 5,905 | 6,402 | ||||||||||||||
| Commercial Bank Allowance for Credit Losses | 46,428 | 45,632 | 40,685 | 42,549 | 42,250 | ||||||||||||||
| Total Portfolio Loans | 2,959,457 | 2,821,983 | 2,739,808 | 2,678,406 | 2,630,163 | ||||||||||||||
| Less: Gross Credit Card Loans | 137,905 | 130,897 | 126,233 | 115,991 | 122,928 | ||||||||||||||
| Commercial Bank Portfolio Loans | 2,821,552 | 2,691,086 | 2,613,575 | 2,562,415 | 2,507,235 | ||||||||||||||
| Commercial Bank Allowance for Credit Losses to Total Portfolio Loans | 1.65 | % | 1.70 | % | 1.56 | % | 1.67 | % | 1.70 | % | |||||||||
| Nonperforming Assets to Total Assets | Quarter Ended | ||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Total Nonperforming Assets | $ | 58,276 | $ | 52,247 | $ | 36,167 | $ | 42,934 | $ | 30,241 | |||||||||
| Total Assets | 3,606,207 | 3,389,442 | 3,388,662 | 3,349,805 | 3,206,911 | ||||||||||||||
| Nonperforming Assets to Total Assets | 1.62 | % | 1.54 | % | 1.07 | % | 1.28 | % | 0.94 | % | |||||||||
| Nonperforming Loans to Total Portfolio Loans | Quarter Ended | ||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Total Nonperforming Loans | $ | 54,421 | $ | 52,247 | $ | 36,167 | $ | 42,934 | $ | 30,241 | |||||||||
| Total Portfolio Loans | 2,959,457 | 2,821,983 | 2,739,808 | 2,678,406 | 2,630,163 | ||||||||||||||
| Nonperforming Loans to Total Portfolio Loans | 1.84 | % | 1.85 | % | 1.32 | % | 1.60 | % | 1.15 | % | |||||||||
| Net Charge-Offs to Average Portfolio Loans | Quarter Ended | ||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Total Net Charge-Offs | $ | 2,373 | $ | 2,476 | $ | 5,088 | $ | 2,444 | $ | 2,427 | |||||||||
| Total Average Portfolio Loans | 2,902,033 | 2,789,815 | 2,733,865 | 2,634,110 | 2,592,960 | ||||||||||||||
| Net Charge-Offs to Average Portfolio Loans, Annualized | 0.32 | % | 0.35 | % | 0.75 | % | 0.38 | % | 0.37 | % | |||||||||
| Tangible Book Value per Share | Quarter Ended | |||||||||||||
| (in thousands, except share and per share data) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||
| Total Stockholders' Equity | $ | 401,978 | $ | 394,770 | $ | 380,035 | $ | 369,577 | $ | 355,139 | ||||
| Less: Preferred Equity | — | — | — | — | — | |||||||||
| Less: Intangible Assets | 40,740 | 41,002 | 37,773 | 39,641 | 36,943 | |||||||||
| Tangible Common Equity | $ | 361,238 | $ | 353,768 | $ | 342,262 | $ | 329,936 | $ | 318,196 | ||||
| Period End Shares Outstanding | 16,381,088 | 16,589,241 | 16,581,990 | 16,657,168 | 16,662,626 | |||||||||
| Tangible Book Value per Share | $ | 22.05 | $ | 21.33 | $ | 20.64 | $ | 19.81 | $ | 19.10 | ||||
| Return on Average Tangible Common Equity | Quarter Ended | ||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Net Income | $ | 15,037 | $ | 15,065 | $ | 13,136 | $ | 13,932 | $ | 7,533 | |||||||||
| Add: Intangible Amortization, Net of Tax | 200 | 199 | 200 | 199 | 198 | ||||||||||||||
| Net Tangible Income | $ | 15,237 | $ | 15,264 | $ | 13,336 | $ | 14,131 | $ | 7,731 | |||||||||
| Average Equity | 391,750 | 383,922 | 371,795 | 363,115 | 352,537 | ||||||||||||||
| Less: Average Intangible Assets | 40,884 | 37,706 | 39,534 | 36,896 | 22,890 | ||||||||||||||
| Net Average Tangible Common Equity | $ | 350,866 | $ | 346,216 | $ | 332,261 | $ | 326,219 | $ | 329,647 | |||||||||
| Return on Average Equity | 15.23 | % | 15.57 | % | 14.17 | % | 15.56 | % | 8.50 | % | |||||||||
| Return on Average Tangible Common Equity | 17.23 | % | 17.49 | % | 16.10 | % | 17.57 | % | 9.33 | % | |||||||||
| Return on Average Tangible Common Equity | Year Ended | ||||||
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||
| Net Income | $ | 57,170 | $ | 30,972 | |||
| Add: Intangible Amortization, Net of Tax | 798 | 198 | |||||
| Net Tangible Income | $ | 57,968 | $ | 31,170 | |||
| Average Equity | 377,741 | 287,420 | |||||
| Less: Average Intangible Assets | 38,763 | 5,754 | |||||
| Net Average Tangible Common Equity | $ | 338,978 | $ | 281,666 | |||
| Return on Average Equity | 15.13 | % | 10.78 | % | |||
| Return on Average Tangible Common Equity | 17.10 | % | 11.07 | % | |||
| Core Return on Average Tangible Common Equity | Quarter Ended | ||||||||||||||||||
| (in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
| Core Net Income | $ | 15,037 | $ | 12,151 | $ | 14,206 | $ | 14,896 | $ | 15,473 | |||||||||
| Add: Intangible Amortization, Net of Tax | 200 | 199 | 200 | 199 | 198 | ||||||||||||||
| Core Net Tangible Income | $ | 15,237 | $ | 12,350 | $ | 14,406 | $ | 15,095 | $ | 15,671 | |||||||||
| Core Return on Average Tangible Common Equity | 17.23 | % | 14.15 | % | 17.39 | % | 18.77 | % | 18.91 | % | |||||||||
| Core Return on Average Tangible Common Equity | Year Ended | ||||||
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||
| Core Net Income | $ | 56,290 | $ | 40,069 | |||
| Add: Intangible Amortization, Net of Tax | 798 | 198 | |||||
| Core Net Tangible Income | $ | 57,088 | $ | 40,267 | |||
| Core Return on Average Tangible Common Equity | 16.84 | % | 14.30 | % | |||
ABOUT CAPITAL BANCORP, INC.
Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in four locations in the Washington, D.C., Baltimore, other Maryland markets, one bank branch in Fort Lauderdale, Florida, one bank branch in Chicago, Illinois and one bank branch in Raleigh, North Carolina. Capital Bancorp had assets of approximately $3.6 billion at December 31, 2025 and its common stock is traded in the NASDAQ Global Market under the symbol "CBNK." More information can be found at the Company's website www.CapitalBankMD.com under its investor relations page.
FORWARD-LOOKING STATEMENTS
This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management's expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "optimistic," "intends" and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company's Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: the strength of the United States ("U.S.") economy in general and the strength of the local economies in which we conduct operations; geopolitical concerns, including acts or threats of terrorism and the ongoing war in Ukraine; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; changes in U.S. trade policies, including the implementation of tariffs and other protectionist trade policies; the effects of federal government shutdowns, debt ceiling standoff, or other fiscal policy uncertainty; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them; climate change, and other catastrophic disasters; the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; the effect of the IFH acquisition or any other acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations, including the planned growth of Windsor AdvantageTM; and other factors that may affect our future results.
These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.
FINANCIAL CONTACT: Jake Dalaya (301) 637-5118
MEDIA CONTACT: Ed Barry (240) 283-1912
WEB SITE: www.CapitalBankMD.com
