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CBNK Continues Strong Growth With Accelerated Investment Underway

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Rhea-AI Summary

Capital Bancorp (NASDAQ: CBNK) reported 1Q26 results with continued balance-sheet expansion and strategic investments. Gross loans rose to $3.026B, total deposits to $3.292B, and tangible book value per share reached $22.62. Core net income was $12.0M; EPS diluted $0.73. The company initiated technology and OpenSky™ investments, repurchased $3.5M of stock, and declared a $0.12/share cash dividend payable May 27, 2026.

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AI-generated analysis. Not financial advice.

Positive

  • Gross loans increased to $3.026B (9.2% annualized vs 4Q25)
  • Total deposits grew to $3.292B (26.1% annualized vs 4Q25)
  • Customer deposits rose to $2.989B (40.7% annualized vs 4Q25)
  • Tangible book value per share reached $22.62 (+10.5% annualized vs 4Q25)
  • Fee revenue expanded 29.6% annualized, representing 21.3% of total revenue
  • Company repurchased $3.5M of common stock and declared a $0.12 dividend

Negative

  • GAAP net income declined to $12.0M (down $3.0M vs 4Q25)
  • Diluted EPS fell to $0.73 (down $0.18 vs 4Q25)
  • Core noninterest expense increased to $43.7M (+$4.6M vs 4Q25) due to investments
  • Core ROTCE decreased to 13.58% (down 365 bps vs 4Q25)
  • Net charge-offs increased to $3.0M (0.40% annualized), driven by OpenSky™ credit losses

News Market Reaction – CBNK

-4.56%
1 alert
-4.56% News Effect

On the day this news was published, CBNK declined 4.56%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

1Q26 Net Income: $12.0M 1Q26 Diluted EPS: $0.73 Gross Loans: $3.0B +5 more
8 metrics
1Q26 Net Income $12.0M Down from $15.0M in 4Q 2025 and $13.9M in 1Q 2025
1Q26 Diluted EPS $0.73 Decreased from $0.91 in 4Q 2025 and $0.82 in 1Q 2025
Gross Loans $3.0B March 31, 2026; up 9.2% annualized vs 4Q 2025 and 13.0% YoY
Total Deposits $3.3B March 31, 2026; up 26.1% annualized vs 4Q 2025 and 13.9% YoY
Tangible Book Value/Share $22.62 1Q26; up from $22.05 in 4Q 2025 and $19.81 in 1Q 2025
Net Interest Margin 5.71% 1Q26; down 23 bps QoQ and 34 bps YoY
Core NIM 4.15% 1Q26; decreased 4 bps QoQ and 21 bps YoY
CET1 Ratio 12.92% March 31, 2026; above regulatory capital adequacy requirements

Market Reality Check

Price: $32.59 Vol: Volume 32,166 is about 40...
low vol
$32.59 Last Close
Volume Volume 32,166 is about 40% of the 20-day average, indicating muted pre-news trading interest. low
Technical Price at $31.37 is trading above the 200-day MA of $30.65 and about 13.8% below the 52-week high.

Peers on Argus

Pre-news, CBNK was roughly flat (-0.22%) with low volume, while only one peer in...
1 Up

Pre-news, CBNK was roughly flat (-0.22%) with low volume, while only one peer in the momentum scanner (WASH) showed an upside move and core listed peers showed mixed, low‑magnitude moves. This points to stock-specific drivers rather than a clear sector rotation.

Historical Context

5 past events · Latest: Jan 26 (Positive)
Pattern 5 events
Date Event Sentiment Move Catalyst
Jan 26 Earnings report Positive +2.0% Reported strong 4Q 2025 earnings, double-digit balance sheet growth, and cash dividend.
Dec 30 Management changes Positive -0.6% Announced leadership realignment and CEO contract renewal to support growth strategy.
Dec 04 SBA expansion Positive -0.8% Expanded SBA team to scale national small-business lending capabilities.
Nov 19 Workplace award Positive -0.1% Received sixth “Best Banks to Work For” recognition with expanded integration post-acquisition.
Nov 14 CFO appointment Neutral -4.1% Promoted new CFO with prior strategy role and integration experience at the bank.
Pattern Detected

Recent news often drew muted or negative price reactions, even on seemingly positive announcements such as awards, SBA expansion, and leadership appointments.

Recent Company History

Over the last six months, Capital Bancorp’s news flow has centered on financial performance, leadership alignment, and strategic growth. A Jan 26, 2026 earnings release highlighted record 2025 results with $15.0M 4Q net income and strong loan and deposit growth, and the stock rose modestly. In late 2025, management changes, an SBA expansion initiative, a “Best Banks to Work For” recognition, and a new CFO appointment were all framed positively but saw small negative price reactions. Against this backdrop, the latest quarter’s strong balance sheet growth but lower earnings fits a mixed fundamental narrative.

Market Pulse Summary

This announcement highlights Capital Bancorp’s trade-off between growth and profitability. Gross loa...
Analysis

This announcement highlights Capital Bancorp’s trade-off between growth and profitability. Gross loans reached about $3.0B and deposits $3.3B, while tangible book value per share increased to $22.62 and the CET1 ratio stood at 12.92%. Yet net income declined to $12.0M, diluted EPS to $0.73, and NIM compressed to 5.71%. Historically, news around earnings and strategic initiatives has sometimes produced muted or negative moves, so investors may focus on margin trends, credit metrics, and expense growth in upcoming quarters.

Key Terms

non-gaap, roa, rotce, nim, +3 more
7 terms
non-gaap financial
"As used in this press release, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures."
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
roa financial
"ROA | | 1.33 | % | | 1.71 | % | | 1.75 | %"
Return on assets (ROA) measures how efficiently a company turns what it owns—like factories, equipment, and cash—into profit, expressed as a percentage of its total assets. Investors use ROA to compare how well different companies squeeze earnings from their resources; higher ROA is like a car that gets more miles from a gallon of gas, signaling better efficiency and potentially stronger returns on investment.
rotce financial
"ROTCE ( 3 ) | | 13.58 | % | | 17.23 | % | | 17.57 | %"
Return on Tangible Common Equity (ROTCE) measures how much profit a company generates for common shareholders using the company’s tangible equity — the book value of shareholders’ equity after subtracting intangible assets (like goodwill) and preferred stock. For investors it shows the efficiency of a company’s core, visible capital in producing earnings; like comparing how much profit a shop makes relative to the actual cash-and-inventory value a small owner has invested, it helps assess true underlying profitability and capital returns.
nim financial
"NIM | | 5.71 | % | | 5.94 | % | | 6.05 | %"
NIM (net interest margin) measures the gap between the interest a bank earns on loans and other interest‑producing assets and the interest it pays to depositors and creditors, shown as a percentage of the bank’s earning assets. Think of it like a store’s markup: a wider NIM means the bank keeps more money from its core lending activity, boosting profit potential. Investors watch NIM because shifts reveal how profitable a bank’s lending is, and how sensitive that profit is to interest‑rate changes and shifts in the mix of loans versus other assets.
acl coverage ratio financial
"At March 31, 2026, the ACL Coverage Ratio was 1.81%, down 4 bps from December 31, 2025"
The ACL coverage ratio compares a bank’s reserve for expected loan losses (allowance for credit losses) to the amount of loans that are past due or likely to default. It tells investors how large the lender’s “rainy-day fund” is relative to troubled loans, so a higher ratio means a bigger cushion against future write-offs and generally lower immediate risk to the bank’s capital and earnings.
available-for-sale regulatory
"The investment securities portfolio continues to be classified as available-for-sale"
A classification for bonds, stocks or other investments that a company plans to keep but might sell before they reach full term. Think of it like items a shop keeps on a shelf for potential sale: their market value can go up or down while the company holds them, and those unrealized gains or losses are shown separately from operating profit until they are sold. Investors watch this because large swings can change a company’s reported net worth and signal how much flexibility it has to raise cash quickly.
common equity tier-1 capital ratio regulatory
"the Company reported a Common Equity Tier-1 capital ratio of 12.92%, compared to 12.98%"
Common equity tier-1 (CET1) capital ratio measures a bank’s core capital — mainly common shares and profits the bank has kept — divided by its risk-weighted assets, which are loans and investments adjusted for how risky they are. It matters to investors because it shows how much of a cushion the bank has to absorb losses without needing outside help; think of it as how much emergency savings a household has relative to its risky monthly bills, affecting safety, dividend capacity and growth potential.

AI-generated analysis. Not financial advice.

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

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


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

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

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

First Quarter 2026 Highlights

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

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

Consolidated financial performance

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

Quarterly net interest income:

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

Quarterly provision:

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

Quarterly fee revenue:

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

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

Quarterly noninterest expense:

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

Quarterly income taxes:

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

Total assets:

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

Gross Loans:

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

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

Consolidated financial performance (Continued)

Deposits:

  • Total deposits of $3.3 billion at March 31, 2026 increased $198.8 million, or 26.1% (annualized), from December 31, 2025, and increased $400.7 million, or 13.9% from March 31, 2025.
    • When excluding the decrease in brokered time deposits of $73.6 million, customer deposits increased $272.5 million or 40.7% (annualized), including $170.9 million of growth in customer money market deposits, $84.5 million of growth in interest-bearing demand accounts, $18.9 million of growth in noninterest-bearing deposits, and $9.8 million of growth in savings accounts, offset by a decrease of $11.6 million in customer time deposits.
        • The growth in the quarter includes $107.8 million of deposits tied to one customer. Excluding this relationship, total deposits increased $91.0 million, or 11.9% (annualized) and customer deposits increased $164.7 million, or 27.0% (annualized).
      • The increase in total deposits of $400.7 million year-over-year was driven by $363.6 million in growth from customer money market deposits, $59.5 million from noninterest-bearing deposits, $45.3 million from interest-bearing demand accounts, and $8.7 million from savings accounts, offset by a decrease of $71.5 million from customer time deposits, and $4.7 million from brokered time deposits.
    • Insured and protected1 deposits were approximately $2.3 billion as of March 31, 2026 representing 69.4% of the Company's deposit portfolio.
    • Low interest2 and noninterest-bearing demand deposit account ("DDA") deposits of $1.2 billion, or 37.5% of deposits, increased $113.2 million, or 40.9% (annualized) from 4Q 2025, and increased $113.4 million, or 10.1% year-over-year.
        • The growth in the quarter of low interest and noninterest-bearing DDA deposits includes $36.1 million of deposits tied to one customer, the same relationship mentioned above. Excluding this relationship, total low interest and noninterest-bearing DDA deposits increased $77.1 million, or 27.9% from 4Q 2025, and increased $77.3 million, or 27.9% year-over-year.
        • The average rate on the low interest and noninterest-bearing deposits was 0.16% for 1Q 2026, which increased 2 bps compared to 4Q 2025 and increased 1 bps year-over-year.
  • The average portfolio loans-to-deposit ratio was 96.1% for 1Q 2026, compared to 97.0% for 4Q 2025, and 95.2% for 1Q 2025.

Investment securities:

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

Liquidity:

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

_____________________
1 Protected deposits includes deposits that are indirectly protected under the product terms.
2 Low interest deposits include interest-bearing demand and savings accounts

Consolidated financial performance (Continued)

Capital:

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

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

Financial Metrics

Net Interest Margin:

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

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

Credit Metrics and Asset Quality:

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

Efficiency Ratio:

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

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

Financial Metrics (Continued)

Returns:

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

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

Book Value:

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

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

Reportable Segments

Commercial Bank

Loan Growth – Portfolio loans(1) increased $73.0 million at March 31, 2026 compared to December 31, 2025, driven by $32.3 million from C&I, $29.7 million from residential real estate, and $6.1 million from construction real estate. Portfolio loans increased $330.6 million at March 31, 2026 compared to March 31, 2025, driven by $136.2 million from C&I, $101.9 million from residential real estate, and $46.1 million from CRE. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

Net Interest Income – Interest income of $52.7 million increased $0.7 million from the prior quarter, $0.5 million of which was due to growth in the Commercial Bank loan portfolio and $0.2 million of which was from higher loan PAA. Interest expense of $18.5 million increased $0.2 million, primarily due to a mix shift in the deposit portfolio.

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

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

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

OpenSky™

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

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

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

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

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

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

Capital Bank Home Loans

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

Windsor Advantage™

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

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited      
              
 Quarter Ended 1Q26 vs 4Q25 1Q26 vs 1Q25
(in thousands, except per share data)March 31,
2026		 December 31,
2025		 March 31,
2025		 $ Change % Change $ Change % Change
Earnings Summary             
Interest income$67,970  $68,634  $62,760  $(664) (1.0)% $5,210  8.3 %
Interest expense 18,572   18,355   16,713   217  1.2 %  1,859  11.1 %
Net interest income 49,398   50,279   46,047   (881) (1.8)%  3,351  7.3 %
Provision for credit losses 3,014   3,988   2,246   (974) (24.4)%  768  34.2 %
Provision for (release of) credit losses on unfunded commitments 205   (29)  —   234  (806.9)%  205  — %
Noninterest income 13,373   12,464   12,549   909  7.3 %  824  6.6 %
Noninterest expense 43,681   39,103   38,053   4,578  11.7 %  5,628  14.8 %
Income before income taxes 15,871   19,681   18,297   (3,810) (19.4)%  (2,426) (13.3)%
Income tax expense 3,853   4,644   4,365   (791) (17.0)%  (512) (11.7)%
Net income$12,018  $15,037  $13,932  $(3,019) (20.1)% $(1,914) (13.7)%
              
Pre-tax pre-provision net revenue ("PPNR")(1)$19,090  $23,640  $20,543  $(4,550) (19.2)% $(1,453) (7.1)%
Core PPNR(1)$19,090  $23,640  $21,809  $(4,550) (19.2)% $(2,719) (12.5)%
              
Common Share Data             
Earnings per share - Basic$0.74  $0.91  $0.84  $(0.17) (18.7)% $(0.10) (11.9)%
Earnings per share - Diluted$0.73  $0.91  $0.82  $(0.18) (19.8)% $(0.09) (11.0)%
Core earnings per share - Diluted(1)$0.73  $0.91  $0.88  $(0.18) (19.8)% $(0.15) (17.0)%
Weighted average common shares - Basic 16,345   16,493   16,666         
Weighted average common shares - Diluted 16,441   16,493   16,925         
              
Return Ratios             
Return on average assets (annualized) 1.33 %  1.71 %  1.75 %        
Core return on average assets (annualized)(1) 1.33 %  1.71 %  1.87 %        
Return on average equity (annualized) 12.03 %  15.23 %  15.56 %        
Core return on average equity (annualized)(1) 12.03 %  15.23 %  16.64 %        
Return on average tangible common equity (annualized)(1) 13.58 %  17.23 %  17.57 %        
Core return on average tangible common equity (annualized)(1) 13.58 %  17.23 %  18.77 %        

______________

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



COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)    
            
 Quarter Ended   Quarter Ended
 March 31,  December 31, September 30, June 30,
(in thousands, except per share data)2026
 2025
 % Change 2025
 2025
 2025
Balance Sheet Highlights           
Assets$3,808,467 $3,349,805 13.7% $3,606,207 $3,389,442 $3,388,662
Investment securities available-for-sale 230,525  213,452 8.0%  230,083  232,640  228,923
Mortgage loans held for sale 13,739  30,005 (54.2)%  25,828  14,146  15,933
Portfolio loans receivable(2) 3,026,431  2,678,406 13.0%  2,959,457  2,821,983  2,739,808
Allowance for credit losses 54,680  48,454 12.8%  54,660  53,045  47,447
Goodwill 25,969  24,085 7.8%  25,969  25,969  22,478
Intangible assets 14,511  15,556 (6.7)%  14,771  15,033  15,295
Deposits 3,292,047  2,891,333 13.9%  3,093,200  2,912,053  2,940,738
FHLB borrowings 50,000  22,000 127.3%  50,000  22,000  22,000
Other borrowed funds 2,062  12,062 (82.9)%  2,062  12,062  12,062
Total stockholders' equity 408,859  369,577 10.6%  401,757  394,770  380,035
Tangible common equity(1) 368,379  329,936 11.7%  361,017  353,768  342,262
            
Common shares outstanding 16,286  16,657 (2.2)%  16,373  16,589  16,582
Book value per share$25.10 $22.19 13.1% $24.54 $23.80 $22.92
Tangible book value per share(1)$22.62 $19.81 14.2% $22.05 $21.33 $20.64
Dividends per share$0.12 $0.10 20.0% $0.12 $0.12 $0.10

______________

(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Loans are reflected net of deferred fees and costs.



Consolidated Statements of Income (Unaudited)
 Three Months Ended
(in thousands)March 31,
2026		 December 31,
2025		 September 30,
2025		 June 30,
2025		 March 31,
2025
Interest income         
Loans, including fees$64,186 $64,933  $60,838  $60,810  $58,691
Investment securities available-for-sale 1,459  1,728   1,805   1,582   1,861
Federal funds sold and other 2,325  1,973   2,248   2,194   2,208
Total interest income 67,970  68,634   64,891   64,586   62,760
          
Interest expense         
Deposits 18,070  17,805   12,732   16,722   16,512
Borrowed funds 502  550   139   218   201
Total interest expense 18,572  18,355   12,871   16,940   16,713
          
Net interest income 49,398  50,279   52,020   47,646   46,047
Provision for credit losses 3,014  3,988   4,650   4,081   2,246
Provision for (release of) credit losses on unfunded commitments 205  (29)  217   —   —
Net interest income after provision for credit losses 46,179  46,320   47,153   43,565   43,801
Noninterest income         
Service charges on deposits 403  371   425   262   258
Credit card fees 4,692  4,837   4,509   4,298   3,722
Mortgage banking revenue 1,556  1,960   1,927   1,754   1,831
Government lending revenue 923  —   14   3,112   1,096
Government loan servicing revenue 4,345  4,036   4,265   3,644   3,568
Loan servicing rights 497  295   368   (590)  472
Other income (loss) 957  965   (440)  626   1,602
Total noninterest income 13,373  12,464   11,068   13,106   12,549
Noninterest expenses         
Salaries and employee benefits 20,317  17,914   17,728   18,460   18,067
Occupancy and equipment 3,562  2,638   2,849   2,995   2,910
Professional fees 4,965  4,294   2,131   2,422   2,112
Data processing 7,767  7,502   7,654   7,520   7,112
Advertising 1,466  1,398   1,714   1,371   1,779
Loan processing 1,383  1,152   1,114   979   743
Merger-related expenses —  —   697   1,398   1,266
Operational and other card fraud related losses 690  750   923   933   903
Regulatory assessment expenses 941  858   740   884   889
Other operating 2,590  2,597   2,804   2,610   2,272
Total noninterest expenses 43,681  39,103   38,354   39,572   38,053
Income before income taxes 15,871  19,681   19,867   17,099   18,297
Income tax expense 3,853  4,644   4,802   3,963   4,365
Net income$12,018 $15,037  $15,065  $13,136  $13,932



Consolidated Balance Sheets         
 (unaudited) (audited) (unaudited) (unaudited) (unaudited)
(in thousands, except share data)March 31,
2026		 December 31,
2025		 September 30,
2025		 June 30,
2025		 March 31,
2025
Assets         
Cash and due from banks$20,182  $30,894  $25,724  $26,843  $27,836 
Interest-bearing deposits at other financial institutions 379,069   224,611   163,078   247,704   266,092 
Federal funds sold 60   60   59   59   59 
Total cash and cash equivalents 399,311   255,565   188,861   274,606   293,987 
Investment securities available-for-sale 230,525   230,083   232,640   228,923   213,452 
Restricted investments 8,691   8,397   7,057   7,043   7,031 
Loans held for sale 13,739   25,828   14,146   15,933   30,005 
Portfolio loans receivable, net of deferred fees and costs 3,026,431   2,959,457   2,821,983   2,739,808   2,678,406 
Less allowance for credit losses (54,680)  (54,660)  (53,045)  (47,447)  (48,454)
Total portfolio loans held for investment, net 2,971,751   2,904,797   2,768,938   2,692,361   2,629,952 
Premises and equipment, net 17,732   15,072   15,304   14,863   15,085 
Accrued interest receivable 16,795   16,695   19,011   15,149   19,458 
Goodwill 25,969   25,969   25,969   22,478   24,085 
Intangible assets 14,511   14,771   15,033   15,295   15,556 
Loan servicing assets 1,957   1,816   2,070   2,221   2,244 
Deferred tax asset 15,187   14,992   14,885   15,667   15,902 
Bank owned life insurance 45,871   45,488   45,105   44,721   44,335 
Other assets 46,428   46,734   40,423   39,402   38,713 
Total assets$3,808,467  $3,606,207  $3,389,442  $3,388,662  $3,349,805 
          
Liabilities         
Deposits         
Noninterest-bearing$871,677  $852,741  $857,543  $836,979  $812,224 
Interest-bearing 2,420,370   2,240,459   2,054,510   2,103,759   2,079,109 
Total deposits 3,292,047   3,093,200   2,912,053   2,940,738   2,891,333 
Federal Home Loan Bank advances 50,000   50,000   22,000   22,000   22,000 
Other borrowed funds 2,062   2,062   12,062   12,062   12,062 
Accrued interest payable 8,944   8,745   8,045   8,158   9,995 
Other liabilities 46,555   50,443   40,512   25,669   44,838 
Total liabilities 3,399,608   3,204,450   2,994,672   3,008,627   2,980,228 
          
Stockholders' equity         
Common stock 163   164   166   166   167 
Additional paid-in capital 112,268   114,604   121,707   121,362   123,476 
Retained earnings 302,808   292,749   279,693   266,619   255,141 
Accumulated other comprehensive loss (6,380)  (5,760)  (6,796)  (8,112)  (9,207)
Total stockholders' equity 408,859   401,757   394,770   380,035   369,577 
Total liabilities and stockholders' equity$3,808,467  $3,606,207  $3,389,442  $3,388,662  $3,349,805 



The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.

 Three Months Ended
March 31, 2026		 Three Months Ended
December 31, 2025		 Three Months Ended
March 31, 2025
 Average
Outstanding
Balance		 Interest Income/
Expense		 Average
Yield/
Rate(1)		 Average
Outstanding
Balance		 Interest Income/
Expense		 Average
Yield/
Rate(1)		 Average
Outstanding
Balance		 Interest Income/
Expense		 Average
Yield/
Rate(1)
 (in thousands)
Assets                 
Interest earning assets:                 
Interest-bearing deposits$246,346 $2,200 3.62% $196,281 $1,868 3.78% $203,053 $2,138 4.27%
Federal funds sold 60  1 6.76   60  1 6.61   58  1 6.99 
Investment securities available-for-sale 233,165  1,459 2.54   238,295  1,728 2.88   235,605  1,861 3.20 
Restricted investments 8,441  124 5.96   6,725  104 6.14   5,761  69 4.86 
Loans held for sale 12,916  177 5.56   17,118  263 6.10   9,356  238 10.32 
Portfolio loans receivable(2)(3) 3,008,187  64,009 8.63   2,902,033  64,670 8.84   2,634,110  58,453 9.00 
Total interest earning assets 3,509,115  67,970 7.86   3,360,512  68,634 8.10   3,087,943  62,760 8.24 
Noninterest earning assets 142,697      138,028      134,021    
Total assets$3,651,812     $3,498,540     $3,221,964    
                  
Liabilities and Stockholders’ Equity                 
Interest-bearing liabilities:                 
Interest-bearing demand accounts$263,645  414 0.64  $269,342  366 0.54  $242,355  368 0.62 
Savings 13,701  30 0.89   12,033  11 0.36   13,204  18 0.55 
Money market accounts 1,189,642  9,479 3.23   1,061,293  9,124 3.41   869,978  7,399 3.45 
Time deposits 842,137  8,147 3.92   812,186  8,304 4.06   859,729  8,727 4.12 
Borrowed funds 52,062  502 3.91   46,497  550 4.69   34,062  201 2.39 
Total interest-bearing liabilities 2,361,187  18,572 3.19   2,201,351  18,355 3.31   2,019,328  16,713 3.36 
Noninterest-bearing liabilities:                 
Noninterest-bearing liabilities 64,056      67,509      56,503    
Noninterest-bearing deposits 821,267      837,930      783,018    
Stockholders’ equity 405,302      391,750      363,115    
Total liabilities and stockholders’ equity$3,651,812     $3,498,540     $3,221,964    
                  
Net interest spread    4.67%     4.79%     4.88%
Net interest income  $49,398     $50,279     $46,047  
Net interest margin(4)    5.71%     5.94%     6.05%

_______________

(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, collectively, Core Loan Yield was 6.93%, 6.95% and 7.14%, respectively.
(4) For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, collectively, Core Net Interest Margin was 4.15%, 4.19% and 4.36%, respectively.


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

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

Segments         
For the three months ended March 31, 2026    
(in thousands)Commercial
Bank		 OpenSky™ Windsor
Advantage™		 CBHL Consolidated
Interest income$52,732  $15,061 $— $177  $67,970
Interest expense 18,472   —  —  100   18,572
Net interest income 34,260   15,061  —  77   49,398
Provision for credit losses 344   2,670  —  —   3,014
Provision for credit losses on unfunded commitments 205   —  —  —   205
Net interest income after provision 33,711   12,391  —  77   46,179
Noninterest income         
Service charges on deposits 403   —  —  —   403
Credit card fees —   4,692  —  —   4,692
Mortgage banking revenue 416   —  —  1,140   1,556
Government lending revenue 923   —  —  —   923
Government loan servicing revenue(1) (1,262)  —  5,607  —   4,345
Loan servicing rights 497   —  —  —   497
Other income 707   12  —  238   957
Total noninterest income 1,684   4,704  5,607  1,378   13,373
Noninterest expenses         
Salaries and employee benefits 12,090   3,887  2,664  1,676   20,317
Occupancy and equipment 1,870   1,118  392  182   3,562
Professional fees 2,468   1,861  278  358   4,965
Data processing 545   7,107  59  56   7,767
Advertising 718   592  60  96   1,466
Loan processing 1,076   47  22  238   1,383
Merger-related expenses —   —  —  —   —
Operational and other card fraud related losses 65   625  —  —   690
Regulatory assessment expenses 598   215  66  62   941
Other operating 1,140   715  605  130   2,590
Total noninterest expenses 20,570   16,167  4,146  2,798   43,681
Net income (loss) before taxes$14,825  $928 $1,461 $(1,343) $15,871
          
Total assets$3,624,207  $135,414 $28,535 $20,311  $3,808,467

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



Segments         
For the three months ended December 31, 2025    
(in thousands)Commercial
Bank		 OpenSky™ Windsor
Advantage™		 CBHL Consolidated
Interest income(2)$51,994  $16,377 $—  $263  $68,634 
Interest expense(3) 18,230   —  —   125   18,355 
Net interest income 33,764   16,377  —   138   50,279 
Provision for credit losses 2,715   1,273  —   —   3,988 
Release of credit losses on unfunded commitments (29)  —  —   —   (29)
Net interest income after provision 31,078   15,104  —   138   46,320 
Noninterest income         
Service charges on deposits 371   —  —   —   371 
Credit card fees —   4,837  —   —   4,837 
Mortgage banking revenue 433   —  —   1,527   1,960 
Government lending revenue —   —  —   —   — 
Government loan servicing revenue(1) (952)  —  4,988   —   4,036 
Loan servicing rights 295   —  —   —   295 
Other income 698   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 
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 Windsor™, for the three months ended December 31, 2025.



Segments         
For the three months ended March 31, 2025    
(in thousands)Commercial
Bank		 OpenSky™ Windsor
Advantage™		 CBHL Consolidated
Interest income$48,164  $14,444 $— $152  $62,760
Interest expense 16,649   —  —  64   16,713
Net interest income 31,515   14,444  —  88   46,047
Provision for credit losses 446   1,800  —  —   2,246
Provision for credit losses on unfunded commitments —   —  —  —   —
Net interest income after provision 31,069   12,644  —  88   43,801
Noninterest income         
Service charges on deposits 258   —  —  —   258
Credit card fees —   3,722  —  —   3,722
Mortgage banking revenue 263   —  —  1,568   1,831
Government lending revenue 1,096   —  —  —   1,096
Government loan servicing revenue(1) (1,038)  —  4,606  —   3,568
Loan servicing rights 472   —  —  —   472
Non-recurring equity and debt investment write-down —   —  —  —   —
Other income 1,423   11  30  139   1,603
Total noninterest income 2,474   3,733  4,636  1,707   12,550
Noninterest expenses         
Salaries and employee benefits 10,626   3,345  2,406  1,690   18,067
Occupancy and equipment 1,577   488  711  134   2,910
Professional fees 1,151   591  120  250   2,112
Data processing 440   6,582  53  37   7,112
Advertising 718   874  104  83   1,779
Loan processing 477   19  7  240   743
Merger-related expenses 1,266   —  —  —   1,266
Operational and other card fraud related losses 31   872  —  —   903
Regulatory assessment expenses 865   15  5  4   889
Other operating 1,409   516  254  93   2,272
Total noninterest expenses 18,560   13,302  3,660  2,531   38,053
Net income (loss) before taxes$14,983  $3,075 $976 $(736) $18,298
          
Total assets$3,192,327  $119,636 $23,750 $14,092  $3,349,805

________________________
(1) Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of servicing fees earned from the Commercial Bank by Windsor™, for the three months ended March 31, 2025.



HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
 Quarter Ended
(in thousands, except per share data)March 31,
2026		 December 31,
2025		 September 30,
2025		 June 30,
2025		 March 31,
2025
Earnings:         
Net income$12,018  $15,037  $15,065  $13,136  $13,932 
Earnings per common share, diluted 0.73   0.91   0.89   0.78   0.82 
Net interest margin 5.71%  5.94%  6.36%  6.04%  6.05%
Core net interest margin(2) 4.15%  4.19%  4.66%  4.42%  4.36%
Return on average assets(1) 1.33%  1.71%  1.77%  1.60%  1.75%
Return on average equity(1) 12.03%  15.23%  15.57%  14.17%  15.56%
Efficiency ratio 69.59%  62.32%  60.79%  65.14%  64.94%
          
Balance Sheet:         
Total portfolio loans receivable, net deferred fees$3,026,431  $2,959,457  $2,821,983  $2,739,808  $2,678,406 
Total deposits 3,292,047   3,093,200   2,912,053   2,940,738   2,891,333 
Total assets 3,808,467   3,606,207   3,389,442   3,388,662   3,349,805 
Total stockholders' equity 408,859   401,757   394,770   380,035   369,577 
Total average portfolio loans receivable, net deferred fees 3,008,187   2,902,033   2,789,815   2,733,865   2,634,110 
Total average deposits 3,130,392   2,992,784   2,917,067   2,841,153   2,768,284 
Portfolio loans-to-deposit ratio (period-end balances) 91.93%  95.68%  96.91%  93.17%  92.64%
Portfolio loans-to-deposit ratio (average balances) 96.10%  96.97%  95.64%  96.22%  95.15%
          
Asset Quality Ratios:         
Nonperforming assets to total assets 1.56%  1.62%  1.54%  1.07%  1.28%
Nonperforming loans to total loans 1.83%  1.84%  1.85%  1.32%  1.60%
Net charge-offs to average portfolio loans(1) 0.40%  0.32%  0.35%  0.75%  0.38%
Allowance for credit losses to total loans 1.81%  1.85%  1.88%  1.73%  1.81%
Allowance for credit losses to non-performing loans 98.67%  100.44%  101.53%  131.19%  112.86%
          
Bank Capital Ratios:         
Total risk based capital ratio 12.52%  12.60%  12.95%  13.13%  12.93%
Tier-1 risk based capital ratio 11.26%  11.34%  11.69%  11.87%  11.67%
Leverage ratio 9.00%  9.24%  9.34%  9.39%  9.27%
Common Equity Tier-1 capital ratio 11.26%  11.34%  11.69%  11.87%  11.67%
Tangible common equity 8.40%  8.75%  9.06%  8.84%  8.66%
Holding Company Capital Ratios:         
Total risk based capital ratio 14.25%  14.31%  15.25%  15.30%  14.97%
Tier-1 risk based capital ratio 12.99%  13.05%  13.62%  13.66%  13.32%
Leverage ratio 10.48%  10.71%  10.98%  10.90%  10.68%
Common Equity Tier-1 capital ratio 12.92%  12.98%  13.54%  13.58%  13.24%
Tangible common equity 9.73%  10.07%  10.60%  10.22%  9.94%

_______________
(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)March 31,
2026		 December 31,
2025		 September 30,
2025		 June 30,
2025		 March 31,
2025
Composition of Loans:         
Commercial real estate, non owner-occupied$522,498  $533,141  $509,878  $495,341  $484,399 
Commercial real estate, owner-occupied 428,632   418,701   442,827   436,421   420,643 
Residential real estate 795,505   765,808   740,060   710,730   693,597 
Construction real estate 365,706   359,566   344,290   343,189   343,280 
Commercial and industrial 730,576   698,289   619,148   593,279   594,331 
Lender finance 43,775   41,421   31,883   32,494   23,165 
Business equity lines of credit 4,170   3,818   2,931   2,853   3,468 
Credit card, net of reserve(3) 134,789   142,397   136,483   131,029   118,709 
Other consumer loans 4,779   1,930   2,010   2,727   2,200 
Portfolio loans receivable$3,030,430  $2,965,071  $2,829,510  $2,748,063  $2,683,792 
Deferred origination fees, net (3,999)  (5,614)  (7,527)  (8,255)  (5,386)
Portfolio loans receivable, net$3,026,431  $2,959,457  $2,821,983  $2,739,808  $2,678,406 
          
Composition of Deposits:         
Noninterest-bearing$871,677  $852,741  $857,543  $836,979  $812,224 
Interest-bearing demand 341,723   257,233   275,767   319,431   296,455 
Savings 21,471   11,679   12,835   12,879   12,819 
Money markets 1,276,034   1,105,183   989,159   960,237   912,418 
Customer time deposits 478,085   489,687   539,207   541,079   549,630 
Brokered time deposits 303,057   376,677   237,542   270,133   307,787 
Total deposits$3,292,047  $3,093,200  $2,912,053  $2,940,738  $2,891,333 
          
Capital Bank Home Loan Metrics:         
Origination of loans held for sale$72,933  $107,283  $80,651  $80,334  $65,815 
Mortgage loans sold 52,423   82,998   66,409   59,663   54,144 
Gain on sale of loans 1,496   2,145   1,698   1,597   1,664 
Purchase volume as a % of originations 73.15%  72.77%  92.32%  91.61%  90.73%
Gain on sale as a % of loans sold(4) 2.85%  2.58%  2.56%  2.68%  3.07%
Mortgage commissions$594  $899  $656  $501  $545 
          
OpenSky™Portfolio Metrics:         
Open customer accounts 588,190   585,492   587,641   585,372   563,718 
Secured credit card loans, gross$90,021  $97,313  $98,793  $100,037  $93,570 
Unsecured credit card loans, gross 46,574   47,131   39,576   32,715   26,670 
Noninterest secured credit card deposits 165,506   163,184   166,874   168,936   168,796 

_______________

(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 MetricsQuarter Ended
(in thousands, except per share data)March 31,
2026		 December 31,
2025		 September 30,
2025		 June 30,
2025		 March 31,
2025
          
Net Income$12,018  $15,037  $15,065  $13,136  $13,932 
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 
Core Net Income$12,018  $15,037  $12,151  $14,206  $14,896 
          
Weighted Average Common Shares - Diluted 16,441   16,493   16,844   16,802   16,925 
Earnings per Share - Diluted$0.73  $0.91  $0.89  $0.78  $0.82 
Core Earnings per Share - Diluted$0.73  $0.91  $0.72  $0.85  $0.88 
          
Average Assets$3,651,812  $3,498,540  $3,378,296  $3,292,533  $3,221,964 
Return on Average Assets(1) 1.33%  1.71%  1.77%  1.60%  1.75%
Core Return on Average Assets(1) 1.33%  1.71%  1.43%  1.73%  1.87%
          
Average Equity$405,302  $391,750  $383,922  $371,795  $363,115 
Return on Average Equity(1) 12.03%  15.23%  15.57%  14.17%  15.56%
Core Return on Average Equity(1) 12.03%  15.23%  12.56%  15.33%  16.64%
          
Net Interest Income$49,398  $50,279  $52,020  $47,646  $46,047 
Noninterest Income 13,373   12,464   11,068   13,106   12,549 
Total Revenue$62,771  $62,743  $63,088  $60,752  $58,596 
Noninterest Expense 43,681   39,103   38,354   39,572   38,053 
Efficiency Ratio(2) 69.6%  62.3%  60.8%  65.1%  64.9%
          
Net Interest Income$49,398  $50,279  $52,020  $47,646  $46,047 
Deduct: Income from the Call of Brokered Time Deposits —   —   4,618   —   — 
Core Net Interest Income (a)$49,398  $50,279  $47,402  $47,646  $46,047 
Noninterest Income 13,373   12,464   11,068   13,106   12,549 
Core Fee Revenue (b)$13,373  $12,464  $11,068  $13,106  $12,549 
Core Revenue (a) + (b)$62,771  $62,743  $58,470  $60,752  $58,596 
          
Noninterest Expense$43,681  $39,103  $38,354  $39,572  $38,053 
Less: Merger-Related Expenses —   —   697   1,398   1,266 
Core Noninterest Expense$43,681  $39,103  $37,657  $38,174  $36,787 
Core Efficiency Ratio(2) 69.6%  62.3%  64.4%  62.8%  62.8%

_______________

(1) Annualized.
(2) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).



Core Net Interest MarginQuarter Ended
(in thousands)March 31,
2026		 December 31,
2025		 September 30,
2025		 June 30,
2025		 March 31,
2025
          
Net Interest Income$49,398  $50,279  $52,020  $47,646  $46,047 
Less: Credit Card Loan Income 14,882   16,196   15,386   14,116   14,147 
Core Net Interest Income 34,516   34,083   36,634   33,530   31,900 
Average Interest Earning Assets 3,509,115   3,360,576   3,246,653   3,163,421   3,087,943 
Less: Average Credit Card Loans 133,712   133,858   129,100   121,414   118,723 
Average Core Interest Earning Assets$3,375,403  $3,226,718  $3,117,553  $3,042,007  $2,969,220 
Core Net Interest Margin 4.15%  4.19%  4.66%  4.42%  4.36%


Core Loan YieldQuarter Ended
(in thousands)March 31,
2026		 December 31,
2025		 September 30,
2025		 June 30,
2025		 March 31,
2025
          
Portfolio Loans Receivable Interest Income$64,009  $64,670  $60,610  $60,647  $58,453 
Less: Credit Card Loan Income 14,882   16,197   15,387   14,116   14,148 
Core Portfolio Loans Receivable Interest Income$49,127  $48,473  $45,223  $46,531  $44,305 
Average Portfolio Loans Receivable 3,008,187   2,902,033   2,789,815   2,733,865   2,634,110 
Less: Average Credit Card Loans 133,712   133,858   129,100   121,414   118,723 
Total Core Average Portfolio Loans Receivable$2,874,475  $2,768,175  $2,660,715  $2,612,451  $2,515,387 
Core Portfolio Loans Receivable Yield 6.93%  6.95%  6.74%  7.14%  7.14%


Pre-tax, Pre-Provision Net Revenue ("PPNR")Quarter Ended
(in thousands)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Net Income$12,018 $15,037  $15,065 $13,136 $13,932
Add: Income Tax Expense 3,853  4,644   4,802  3,963  4,365
Add: Provision for Credit Losses 3,014  3,988   4,650  4,081  2,246
Add: Provision for (Release of) Credit Losses on Unfunded Commitments 205  (29)  217  —  —
Pre-tax, Pre-Provision Net Revenue ("PPNR")$19,090 $23,640  $24,734 $21,180 $20,543


Core PPNRQuarter Ended
(in thousands)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Net Income$12,018 $15,037  $15,065  $13,136 $13,932
Add: Income Tax Expense 3,853  4,644   4,802   3,963  4,365
Add: Provision for Credit Losses 3,014  3,988   4,650   4,081  2,246
Add: Provision for (Release of) Credit Losses on Unfunded Commitments 205  (29)  217   —  —
Deduct: Income from the Call of Brokered Time Deposits —  —   (4,618)  —  —
Add: Merger-Related Expenses —  —   697   1,398  1,266
Add: Non-Recurring Equity and Debt Investment Write-Down —  —   —   —  —
Core PPNR$19,090 $23,640  $20,813  $22,578 $21,809


Allowance for Credit Losses to Total Portfolio LoansQuarter Ended
(in thousands)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Allowance for Credit Losses$54,680  $54,660  $53,045  $47,447  $48,454 
Total Portfolio Loans 3,026,431   2,959,457   2,821,983   2,739,808   2,678,406 
Allowance for Credit Losses to Total Portfolio Loans 1.81%  1.85%  1.88%  1.73%  1.81%


Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio LoansQuarter Ended
(in thousands)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Allowance for Credit Losses$54,680  $54,660  $53,045  $47,447  $48,454 
Less: Credit Card Allowance for Credit Losses 7,802   8,232   7,413   6,762   5,905 
Commercial Bank Allowance for Credit Losses$46,878  $46,428  $45,632  $40,685  $42,549 
Total Portfolio Loans 3,026,431   2,959,457   2,821,983   2,739,808   2,678,406 
Less: Gross Credit Card Loans 131,887   137,905   130,897   126,233   115,991 
Commercial Bank Portfolio Loans$2,894,544  $2,821,552  $2,691,086  $2,613,575  $2,562,415 
Commercial Bank Allowance for Credit Losses to Total Portfolio Loans 1.62%  1.65%  1.70%  1.56%  1.67%


Nonperforming Assets to Total AssetsQuarter Ended
(in thousands)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Total Nonperforming Assets$59,273  $58,276  $52,247  $36,167  $42,934 
Total Assets 3,808,467   3,606,207   3,389,442   3,388,662   3,349,805 
Nonperforming Assets to Total Assets 1.56%  1.62%  1.54%  1.07%  1.28%


Nonperforming Loans to Total Portfolio LoansQuarter Ended
(in thousands)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Total Nonperforming Loans$55,417  $54,421  $52,247  $36,167  $42,934 
Total Portfolio Loans 3,026,431   2,959,457   2,821,983   2,739,808   2,678,406 
Nonperforming Loans to Total Portfolio Loans 1.83%  1.84%  1.85%  1.32%  1.60%


Net Charge-Offs to Average Portfolio LoansQuarter Ended
(in thousands)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Total Net Charge-Offs$2,994  $2,373  $2,476  $5,088  $2,444 
Total Average Portfolio Loans 3,008,187   2,902,033   2,789,815   2,733,865   2,634,110 
Net Charge-Offs to Average Portfolio Loans, Annualized 0.40%  0.32%  0.35%  0.75%  0.38%


Tangible Book Value per ShareQuarter Ended
(in thousands, except share and per share data)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Total Stockholders' Equity$408,859 $401,757 $394,770 $380,035 $369,577
Less: Intangible Assets 40,480  40,740  41,002  37,773  39,641
Tangible Common Equity$368,379 $361,017 $353,768 $342,262 $329,936
Period End Shares Outstanding 16,286,480  16,373,288  16,589,241  16,581,990  16,657,168
Tangible Book Value per Share$22.62 $22.05 $21.33 $20.64 $19.81


Return on Average Tangible Common EquityQuarter Ended
(in thousands)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Net Income$12,018  $15,037  $15,065  $13,136  $13,932 
Add: Intangible Amortization, Net of Tax 197   200   199   200   199 
Net Tangible Income$12,215  $15,237  $15,264  $13,336  $14,131 
Average Equity 405,302   391,750   383,922   371,795   363,115 
Less: Average Intangible Assets 40,628   40,884   37,706   39,534   36,896 
Net Average Tangible Common Equity$364,674  $350,866  $346,216  $332,261  $326,219 
Return on Average Equity 12.03%  15.23%  15.57%  14.17%  15.56%
Return on Average Tangible Common Equity 13.58%  17.23%  17.49%  16.10%  17.57%



Core Return on Average Tangible Common EquityQuarter Ended
(in thousands)March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
          
Core Net Income$12,018  $15,037  $12,151  $14,206  $14,896 
Add: Intangible Amortization, Net of Tax 197   200   199   200   199 
Core Net Tangible Income$12,215  $15,237  $12,350  $14,406  $15,095 
Core Return on Average Tangible Common Equity 13.58%  17.23%  14.15%  17.39%  18.77%


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 $3.8 billion at March 31, 2026 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company's website www.CapitalBankMD.com under its investor relations page.

FORWARD-LOOKING STATEMENTS

This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” "optimistic," “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company's Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.

While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors 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 wars in Israel, Iran and Ukraine; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; changes in U.S. trade policies, including the implementation of tariffs and other protectionist trade policies; the effects of federal government shutdowns, debt ceiling standoff, or other fiscal policy uncertainty; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them; climate change, and other catastrophic disasters; the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; the Company’s ability to remediate the material weakness in the Company’s internal control over financial reporting; the effect of the IFH acquisition or any other acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations, including the planned growth of Windsor Advantage™; 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


FAQ

What were Capital Bancorp (CBNK) 1Q26 loan and deposit figures?

CBNK reported $3.026B in gross loans and $3.292B in total deposits for 1Q26. According to the company, loans rose 9.2% annualized versus 4Q25 and deposits grew 26.1% annualized, with customer deposits up 40.7% annualized.

How did Capital Bancorp (CBNK) 1Q26 profitability compare to 4Q25?

GAAP net income was $12.0M and diluted EPS was $0.73 in 1Q26. According to the company, net income decreased $3.0M and EPS fell $0.18 versus 4Q25, reflecting higher expenses and mix shifts.

What investments and capital actions did Capital Bancorp (CBNK) announce in 1Q26?

CBNK accelerated investments in OpenSky™, card partnerships, and data infrastructure and repurchased $3.5M of stock. According to the company, these expenditures support technology, scalability, and new product introductions.

Did Capital Bancorp (CBNK) change its dividend or buyback program in 1Q26?

The company declared a cash dividend of $0.12 per share payable May 27, 2026 and repurchased $3.5M of common stock. According to the company, the actions return capital while investments proceed.

What credit metrics and provisions did Capital Bancorp (CBNK) report for 1Q26?

Provision for credit losses was $3.0M and net charge-offs were $3.0M (0.40% annualized) in 1Q26. According to the company, OpenSky™ accounted for most charge-offs while ACL coverage ratio remained ~1.81%.

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