CBNK Delivers Strong Revenue Growth and Positive Operating Leverage

Q: What were Capital Bancorp's third-quarter 2026 earnings?

Capital Bancorp earned $13.1 million, or $0.80 per diluted share, in the third quarter of 2026. GAAP net income declined 7.9% sequentially and 12.9% year over year. Core net income, a non-GAAP measure, was $14.7 million, or $0.89 per diluted share.

Q: What will Capital Bancorp shareholders receive in the Peoples Bancorp merger?

Capital Bancorp shareholders will receive 1.11 shares of Peoples common stock for each Capital Bancorp common share under the merger agreement. The terms represent an implied value of $43.75 per share and an approximate 22.7% premium over Capital Bancorp's September 29, 2026 closing price. Completion requires regulatory and shareholder approvals.

Q: When will Capital Bancorp pay its declared dividend?

Capital Bancorp will pay its declared $0.14 per common share cash dividend on November 25, 2026, to shareholders of record on November 9, 2026.

Q: Why did Capital Bancorp's deposits decline in the third quarter of 2026?

The sequential deposit decline included $89.3 million from title-business demand deposit accounts and $45.2 million from a single customer relationship. The company described the title-business decline as consistent with regular seasonality. Excluding title-company deposits and that customer relationship, deposits increased $82.5 million, or 11.8% annualized.

Core quarterly earnings improved, but reported profit declined as expenses and credit-loss provisions increased.

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Positive)How Sentiment works

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

How Sentiment works How the balance works

Rhea-AI Summary

Capital Bancorp (NASDAQ: CBNK) reported third-quarter 2026 net income of $13.1 million, down from both the preceding quarter and a year earlier. Diluted earnings were $0.80, down 8.0% sequentially and 10.1% year over year. Core earnings, a non-GAAP measure excluding specified adjustments, rose to $0.89 per diluted share. Net interest income reached $53.1 million, while fee revenue reached $15.0 million. Net interest margin increased sequentially to 5.81% but remained below 6.36% a year earlier.

Gross portfolio loans reached $3.114 billion; deposits fell sequentially to $3.319 billion. Noninterest expense rose to $45.7 million, and credit-loss provisions increased to $4.9 million. The pending all-stock acquisition by Peoples Bancorp offers 1.11 Peoples shares per Capital Bancorp share, subject to regulatory and shareholder approvals. The Chicago branch sale also awaits regulatory approval.

16 points · 1 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance works How Sentiment works

0 major · 19 points

Hollow bars mark forward-looking points. How the balance works

Positive

Major pointPeoples acquisition offers 1.11 shares per Capital Bancorp share, implying $43.75 and an approximate 22.7% September 29 premium.
Moderate pointQuarterly core net income, a non-GAAP measure, reached $14.7 million, up 3.2% sequentially and 21.0% year over year.
Moderate pointQuarterly core diluted earnings reached $0.89, up 2.3% sequentially and 23.6% year over year.
Moderate pointNet interest income reached $53.1 million, up 4.2% sequentially, not annualized, and 2.0% year over year.
Moderate pointNet interest margin reached 5.81%, up 17 basis points sequentially but down 55 basis points year over year.
Moderate pointFee revenue reached $15.0 million, increasing $0.7 million sequentially and $4.0 million year over year.
Moderate pointGross portfolio loans reached $3.114 billion, versus $3.086 billion in 2Q26 and $2.822 billion in 3Q25.
Moderate pointDeposits excluding title companies and one customer increased $82.5 million, or 11.8% annualized, sequentially.
Moderate pointTangible book value per share reached $23.98, versus $23.45 in 2Q26 and $21.33 in 3Q25.

7 minor points

Minor point. Forward-looking: it has not happened yet and may not happen.Chicago branch sale would have generated an approximately $3.2 million deposit premium using September 30, 2026 deposits.
Minor point. Forward-looking: it has not happened yet and may not happen.Transferred Chicago branch loans bring payment equal to unpaid principal, potentially creating an additional closing gain.
Minor pointMargin excluding cards reached 4.18%, up 14 basis points sequentially but down 48 basis points year over year.
Minor pointFee revenue share reached 22.1%, versus 22.0% in 2Q26 and 17.5% in 3Q25.
Minor pointCommercial Bank net charge-offs decreased $0.3 million sequentially to $0.6 million.
Minor pointCredit-loss allowance coverage reached 1.78% at September 30, 2026, up 2 basis points from June 30.
Minor pointNine-month core diluted earnings increased 1.6% year over year to $2.49.

Negative

Moderate pointQuarterly GAAP net income fell to $13.1 million, down 7.9% sequentially and 12.9% year over year.
Moderate pointTotal deposits fell $52.0 million sequentially to $3.319 billion, versus $2.912 billion a year earlier.
Moderate pointNoninterest expense reached $45.7 million, up $2.5 million sequentially and $7.4 million year over year.
Moderate pointCredit-loss provisions increased $1.3 million sequentially to $4.9 million.
Moderate pointOpenSky net charge-offs increased $0.3 million sequentially to $3.2 million, driven by the secured product.
Moderate pointQuarterly return on assets fell to 1.38%, down 14 basis points sequentially and 39 basis points year over year.
Moderate pointQuarterly return on tangible common equity fell to 13.62%, versus 15.51% sequentially and 17.49% a year earlier.
Moderate pointNine-month GAAP net income fell 6.5% year over year to $39.4 million.
Moderate pointNine-month core net income fell 0.7% year over year to $41.0 million.
Moderate pointNine-month return on assets fell to 1.41%, versus 1.71% a year earlier; core return fell to 1.47% from 1.67%.
Moderate pointNine-month return on tangible common equity fell to 14.24%; core return fell to 14.80%, both year over year.
Moderate pointNine-month net interest margin fell 43 basis points year over year to 5.72%.

7 minor points

Minor pointQuarterly GAAP diluted earnings fell to $0.80, down 8.0% sequentially and 10.1% year over year.
Minor pointPeoples acquisition remains subject to required regulatory approvals and shareholder approval.
Minor pointChicago branch sale remains subject to regulatory approvals.
Minor pointCustomer deposits excluding brokered deposits fell to $2.988 billion, versus $3.140 billion sequentially and $2.675 billion a year earlier.
Minor pointCore quarterly return on tangible common equity was 15.24%, versus 15.51% sequentially and 14.15% a year earlier.
Minor pointNine-month GAAP diluted earnings fell 4.0% year over year to $2.40.
Minor pointNine-month margin excluding cards fell 36 basis points year over year to 4.12%.

News Explained

The branch-sale premium depends on closing, while the declared $0.14 dividend is payable November 25.

The Chicago branch sale agreement remains subject to regulatory approvals and customary closing conditions, with the September 30 deposit composition indicating the bank would have received a $3.2 million deposit premium had it closed then, and it will receive payment equal to the unpaid principal of transferred loans, which could produce an additional gain at closing.

The company declared a $0.14 per-share cash dividend, payable on November 25, 2026 to shareholders of record on November 9, 2026.

Key Figures

GAAP net income: $13.1 million; down 12.9% GAAP diluted EPS: $0.80; down 10.1% Core net income: $14.7 million; up 21.0% +5 more

GAAP net income: $13.1 million; down 12.9%; 3Q 2026 vs. 3Q 2025
GAAP diluted EPS: $0.80; down 10.1%; 3Q 2026 vs. 3Q 2025
Core net income: $14.7 million; up 21.0%; 3Q 2026 vs. 3Q 2025; non-GAAP
Core diluted EPS: $0.89; up 23.6%; 3Q 2026 vs. 3Q 2025; non-GAAP
Net interest margin: 5.81%; up 17 bps quarter over quarter and down 55 bps year over year; 3Q 2026
Gross loans: $3,114 million; up 10.4%; 3Q 2026 vs. 3Q 2025
Total deposits: $3,319 million; down 6.1% quarter over quarter and up 14.0% year over year; 3Q 2026; changes annualized
Cash dividend: $0.14 per share; Payable November 25, 2026, to shareholders of record November 9, 2026

Historical Context

1 past event · Latest: Jul 27

1 event

Jul 27
earnings report

24h Move

+4.0%

Reported 2Q net income and diluted EPS, establishing a comparable prior-quarter earnings baseline.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, net interest margin, purchase and assumption agreement, purchase accounting accretion

4 terms

non-gaap financial

"These non-GAAP financial metrics exclude the impact of merger-related expenses"

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.

View in glossary

net interest margin financial

"NIM of 5.81% increased 17 bps from 2Q 2026"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

purchase and assumption agreement financial

"entered into a purchase and assumption agreement with respect to the Bank's branch office"

A purchase and assumption agreement is a legal contract used when one financial firm buys parts of another—typically during a bank failure—by purchasing selected assets and taking on specified liabilities or deposits. Think of it as buying a store and agreeing to keep some of its owed bills and customer promises; for investors it matters because the deal determines which obligations survive, how much value is transferred, and what losses or recoveries shareholders and creditors may face.

purchase accounting accretion financial

"excluding purchase accounting accretion ("PAA") was $14.4 million"

Purchase accounting accretion describes how an acquisition’s required accounting adjustments change a company’s reported earnings per share after the deal. When the purchase price is reallocated to the acquired assets and liabilities, certain items (like tax effects, depreciation or amortization) are recorded differently, and those changes can make reported earnings per share rise over time — showing whether the transaction boosts or dilutes per-share results. Investors use it like checking whether two merged household budgets will increase the amount left over each month after relabeling expenses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10/26/2026 - 04:05 PM EDT

ROCKVILLE, Md., Oct. 26, 2026 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported:

	Quarter Ended			% Change (Annualized)
(in millions, except per share data)	3Q26	2Q26	3Q25	3Q26 vs 2Q26	3Q26 vs 3Q25
Balance Sheet Summary
Gross Loans⁽¹⁾	$3,114	$3,086	$2,822	3.6%	10.4%
Total Deposits	3,319	3,371	2,912	(6.1)%	14.0%
Customer Deposits⁽²⁾	2,988	3,140	2,675	(19.2)%	11.7%
Tangible Book Value per share⁽³⁾	$23.98	$23.45	$21.33	9.0%	12.4%

GAAP

Core⁽³⁾

Quarter Ended

Change

Quarter Ended

Change

(in millions, except per share data)

3Q26

2Q26

3Q25

3Q26 vs 2Q26

3Q26 vs 3Q25

3Q26

2Q26

3Q25

3Q26 vs 2Q26

3Q26 vs 3Q25

Earnings Summary

Net Income

$13.1

$14.3

$15.1

(7.9)%

(12.9)%

$14.7

$14.3

$12.2

3.2%

21.0%

Earnings per share - diluted

$0.80

$0.87

$0.89

(8.0)%

(10.1)%

$0.89

$0.87

$0.72

2.3%

23.6%

ROA

1.38%

1.52%

1.77%

(14) bps

(39) bps

1.55%

1.52%

1.43%

3 bps

12 bps

ROTCE⁽³⁾

13.62%

15.51%

17.49%

(189) bps

(387) bps

15.24%

15.51%

14.15%

(27) bps

109 bps

Including Card

Excluding Card

NIM

5.81%

5.64%

6.36%

17 bps

(55) bps

4.18%

4.04%

4.66%

14 bps

(48) bps

	GAAP			Core⁽³⁾
	Nine Months Ended		Change	Nine Months Ended		Change
(in millions, except per share data)	3Q26	3Q25	3Q26 vs 3Q25	3Q26	3Q25	3Q26 vs 3Q25
Earnings Summary
Net Income	$39.4	$42.1	(6.5)%	$41.0	$41.3	(0.7)%
Earnings per share - diluted	$2.40	$2.50	(4.0)%	$2.49	$2.45	1.6%
ROA	1.41%	1.71%	(30) bps	1.47%	1.67%	(20) bps
ROTCE⁽³⁾	14.24%	17.06%	(282) bps	14.80%	16.70%	(190) bps
	Including Card			Excluding Card
NIM	5.72%	6.15%	(43) bps	4.12%	4.48%	(36) bps

“This was indeed a very busy quarter with the announcements of the merger with Peoples Bank and the sale of our Chicago branch,” said Steven J. Schwartz, Chairman of the Company. “However, it is also important to note our continued steady net interest margin and tangible net book value⁽³⁾ growth, along with sustained double-digit loan growth and the quarter-over-quarter increase in core earnings per share. The Board is excited about both the synergistic opportunities the merger provides as well as our independent organic growth and performance prospects.”

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

Third Quarter 2026 Highlights

On September 29, 2026 the Company announced it has entered into a definitive merger agreement under which Peoples Bancorp, Inc. ("Peoples") will acquire Capital Bancorp, Inc. in an all-stock transaction. Under the terms of the agreement, shareholders will receive 1.11 shares of Peoples common stock for each share of the Company's common stock, representing an implied value of $43.75 per share and an approximate 22.7% premium over the Company's closing stock price on September 29, 2026. The implied value represented a 1.9x tangible book value per share⁽⁴⁾ and 12.9x last-twelve-month earnings per share - diluted for the quarter ended June 30, 2026. The transaction is subject to receipt of required regulatory approvals, shareholder approval, and other customary closing conditions
On September 29, 2026 the Company announced it has entered into a purchase and assumption agreement with respect to the Bank's branch office located in North Riverside, Illinois ("Chicago branch"), subject to regulatory approvals and other customary closing conditions. Based on the composition of deposits at September 30, 2026, the Bank would have received a deposit premium of approximately $3.2 million had the transaction closed at that date. The Bank will also receive a payment equal to the unpaid principal balance of loans transferred in the transaction, which could result in an additional gain at the time of closing
Total deposits decreased $52.0 million or 6.1% (annualized) from 2Q 2026, primarily driven by decreases of $89.3 million from DDA products associated with our Title business, consistent with regular seasonality. The decrease in deposits also included a $45.2 million reduction associated with a single customer relationship that had grown significantly throughout the year and which was noted in the 2Q 2026 earnings release. Excluding deposits from title companies and the single customer relationship, deposits increased $82.5 million or 11.8% (annualized)
Noninterest expenses increased $2.5 million or 23.3% (annualized) from 2Q 2026 as we continued to execute on strategic growth initiatives and incurred merger-related expenses related to the pending merger with Peoples. Excluding the impact of merger-related expenses, Core noninterest expenses⁽⁴⁾ increased $1.0 million or 8.8% (annualized) from 2Q 2026
Generated $80.2 million, or 10.2% (annualized) growth in total gross loans from 2Q 2026, largely driven by commercial and industrial ("C&I"), which grew $47.1 million, or 25.6% (annualized), across both held for sale and held for investment portfolios, and residential real estate, which grew $26.1 million, or 13.0% (annualized), across both held for sale and held for investment portfolios
Continued tangible book value compounding, with tangible book value per share⁽⁴⁾ increasing 9.0% (annualized) from 2Q 2026
NIM of 5.81% increased 17 bps from 2Q 2026, driven by 14 bps from the Commercial Bank loan portfolio and 4 bps increased contribution from OpenSky™ due to higher balances, partially offset by 1 bp from other Commercial Bank activity. Core NIM of 4.18% increased 14 bps from 2Q 2026, primarily driven by 11 bps from organic growth from Commercial Bank portfolio.
Diluted earnings per share of $0.80, down 8.0% from 2Q 2026. Core earnings per share⁽⁴⁾ increased $0.02, or 2.3% from 2Q 2026
Produced 18.7% (annualized) fee income growth, led by government lending revenue, loan servicing rights income, credit card fees and USDA fees. Fee revenue represented 22.1% of total revenue
The Company also declared a cash dividend on its common stock of $0.14 per share. The dividend is payable on November 25, 2026 to shareholders of record on November 9, 2026.

“We are excited about our combination with Peoples Bank and what it will bring to our franchises," said Ed Barry, CEO of the Company. "Our current quarter results reflect work on the merger and continued progress on our strategic plan. Prudent and disciplined financial management is demonstrated in our ability to deliver strong profitability in a volatile operating environment."

⁽⁴⁾As used in this press release, Core noninterest expense, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

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

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

	Third Quarter 2026						Second Quarter 2026						Third Quarter 2025
(in thousands)	Income Before Income Taxes		Income Tax Expense (Benefit)		Net Income		Income Before Income Taxes		Income Tax Expense		Net Income		Income Before Income Taxes			Income Tax Expense (Benefit)			Net Income
GAAP Net Income	$	17,546	$	4,424	$	13,122	$	18,454	$	4,204	$	14,250	$	19,867		$	4,802		$	15,065
Deduct: Income from the Call of Brokered Time Deposits		—		—		—		—		—		—		(4,618	)		(1,129	)		(3,489	)
Add: Merger-Related Expenses		1,577		—		1,577		—		—		—		697			122			575
Core Net Income⁽¹⁾	$	19,123	$	4,424	$	14,699	$	18,454	$	4,204	$	14,250	$	15,946		$	3,795		$	12,151

	Nine Months Ended September 30, 2026						Nine Months Ended September 30, 2025
(in thousands)	Income Before Income Taxes		Income Tax Expense (Benefit)		Net Income		Income Before Income Taxes			Income Tax Expense			Net Income
GAAP Net Income	$	51,871	$	12,481	$	39,390	$	55,263		$	13,130		$	42,133
Deduct: Income from the Call of Brokered Time Deposits		—		—		—		(4,618	)		(1,129	)		(3,489	)
Add: Merger-Related Expenses		1,577		—		1,577		3,361			752			2,609
Core Net Income⁽⁵⁾	$	53,448	$	12,481	$	40,967	$	54,006		$	12,753		$	41,253

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

Net income of $13.1 million decreased $1.1 million compared to 2Q 2026, and earnings per share - diluted of $0.80 decreased $0.07 per share from 2Q 2026. Net income decreased $1.9 million, or 12.9%, compared to $15.1 million, or $0.89 per diluted share, for 3Q 2025. 3Q 2026 Core net income⁽⁵⁾ of $14.7 million, or $0.89 per diluted share, increased $0.4 million, or 3.2%, compared to 2Q 2026 Core net income⁽⁵⁾ of $14.3 million, or $0.87 per diluted share. 3Q 2026 Core net income⁽⁵⁾ increased $2.5 million from 3Q 2025 Core net income⁽⁵⁾ of $12.2 million. 3Q 2026 Core net income⁽⁵⁾ excluding purchase accounting accretion ("PAA") was $14.4 million, an increase of $2.9 million, or 25.2%, from 3Q 2025 Core net income⁽⁵⁾ of $11.5 million excluding PAA.

⁽⁵⁾ 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.

Consolidated Financial Performance

Quarterly net interest income:

Net interest income of $53.1 million increased $2.1 million, or 4.2% (not annualized), compared to 2Q 2026, and increased $1.1 million, or 2.0%, year-over-year.
- Interest income of $72.3 million increased $2.3 million, or 3.3% (not annualized), compared to 2Q 2026, and increased $7.4 million, or 11.4%, year-over-year. The increase from 2Q 2026 was primarily driven by a $2.4 million increase from Commercial Bank loan growth and $0.5 million increase from OpenSky™ due to higher balances and higher yields, slightly offset by a $0.5 million decrease in interest bearing cash income due to lower balances of interest-bearing deposits from other financial institutions. The increase year-over-year was primarily driven by $6.5 million from the Commercial Bank due to strong organic loan growth, and $0.9 million from OpenSky™ due to strong growth from the unsecured loan product.
  - Interest income included $0.3 million from net PAA in 3Q 2026, compared to $0.2 million in 2Q 2026 and $0.2 million in net PAA in 3Q 2025.
- Interest expense of $19.2 million increased $0.2 million, or 1.0% (not annualized), compared to 2Q 2026, and increased $6.3 million, or 49.3%, year-over-year. The increase of $0.2 million, compared to 2Q 2026, was primarily driven by growth in money market accounts, offset by a decrease in borrowed funds. The increase of $6.3 million year-over-year was driven by $1.0 million from higher balances and a shift in deposit mix, $5.2 million of decreased benefit from net PAA, and $0.1 million of higher borrowing costs.
  - Interest expense included a $0.1 million benefit from net PAA in both 3Q 2026 and 2Q 2026. There was a $5.3 million benefit from net PAA in 3Q 2025, which included $4.6 million from the call of brokered time deposits acquired from the IFH transaction ("Call of Brokered Time Deposits").

Quarterly provision:

The 3Q 2026 provision for credit losses was $4.9 million, an increase of $1.3 million from 2Q 2026. The increase was primarily driven by $1.3 million of increased provision for the Commercial Bank from 2Q 2026, primarily due to a $1.0 million increased reserve requirement largely attributable to loan growth and $0.3 million decrease in net charge-offs. Net charge-offs totaled $3.8 million, or 0.49% of portfolio loans (annualized), consistent with $3.8 million or 0.50% of portfolio loans (annualized), in 2Q 2026.
- Net charge-offs in the quarter included $3.2 million from OpenSky™ loans and $0.6 million from Commercial Bank loans. Net charge-offs for the Commercial Bank decreased $0.3 million quarter-over-quarter. OpenSky™ net charge-offs increased $0.3 million quarter-over-quarter, driven by the secured product.
- At September 30, 2026, the ACL Coverage Ratio was 1.78%, an increase of 2 bps from June 30, 2026.

Quarterly fee revenue:

Fee Revenue of $15.0 million increased $0.7 million, compared to 2Q 2026 and increased $4.0 million year-over-year. The increase of $0.7 million during 3Q 2026 was primarily driven by a $0.4 million increase in other income from fees associated with USDA transactions that did not close and an increase in small business investment company ("SBIC") income, and a $0.3 million increase in government lending revenue from both USDA and SBA gain on sale. The year-over-year fee revenue increase of $4.0 million was primarily driven by a $1.5 million increase in government lending revenue mostly from USDA gain on sale, $1.2 million from SBIC income, $0.8 million from government loan servicing and packaging revenue (Windsor™) driven by growth in servicing income from organic growth in the servicing portfolio, and $0.3 million from fees earned from USDA deals which were not executed. Fee revenue mix⁽⁶⁾ was 22.1% of total revenue for 3Q 2026, compared to 22.0% during 2Q 2026, and 17.5% during 3Q 2025. Core fee revenue mix was 22.1% for 3Q 2026, compared to 22.0% during 2Q 2026, and 18.9% during 3Q 2025.

Quarterly noninterest expense:

Noninterest expense of $45.7 million increased $2.5 million compared to 2Q 2026 and increased $7.4 million compared to 3Q 2025. Core noninterest expense⁽⁷⁾of $44.1 million increased $1.0 million compared to 2Q 2026 and increased $6.5 million compared to 3Q 2025. Core comparisons include:
- The increase of $1.0 million quarter-over-quarter was primarily driven by $1.0 million higher personnel costs primarily due to planned investment in headcount
- Year-over-year expense growth of $6.5 million was primarily driven by planned expansion and investment in headcount across the organization, and an increase in professional fees associated with investments in shared services areas and OpenSky™.

⁽⁶⁾ Fee revenue mix equals fee revenue divided by the sum of fee revenue and net interest income before provision for credit losses.

⁽⁷⁾As used in this press release, Core noninterest expense, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Quarterly income taxes:

Income tax expense of $4.4 million, or 25.2% of pre-tax income for 3Q 2026, increased $0.2 million from $4.2 million, or 22.8% of pre-tax income for 2Q 2026. The effective income tax rate change quarter-over-quarter primarily reflects $1.6 million of non-deductible merger costs. Our Core effective income tax rate excluding non-deductible merger costs was 23.1% for 3Q 2026.

Total assets:

Total assets of $3.8 billion at September 30, 2026 decreased $87.4 million, or 8.9% (annualized) from June 30, 2026. The $87.4 million decrease was primarily driven by $156.2 million of decreased cash and cash equivalents, offset by total loan growth of $80.2 million (inclusive of portfolio loans receivable and loans held for sale). Total assets growth year-over-year was $413.1 million, or 12.2%. The growth year-over-year was primarily driven by increases in portfolio loans and cash balances.

Gross Loans:

Total loans increased $80.2 million driven by increases in loans held for sale of $51.9 million and loans held for investment of $28.3 million
Loans held for sale increased $51.9 million, primarily driven by a reclassification of $60.2 million of loans from held for investment to held for sale due to the pending Chicago branch sale, subject to mutual agreement with the buyer on the loan population.
Gross Loans held for investment of $3.1 billion at September 30, 2026 increased $28.3 million, or 3.6% (annualized), from June 30, 2026 and increased $292.3 million, or 10.4%, year-over-year.
- Excluding the impact of $60.2 million of loans reclassified to held for sale, gross loans held for investment increased $88.5 million, or 11.4% (annualized) from June 30, 2026.
- Compared to June 30, 2026, growth was primarily driven by $42.7 million from C&I and $10.0 million from construction real estate, slightly offset by a $21.1 million decrease in commercial real estate.
  - The $42.7 million growth from C&I was driven by $20.1 million SBA, $14.7 million legacy, and $7.9 million USDA.
- C&I loans, plus owner-occupied CRE loans, totaled 38.3% of total portfolio loans at September 30, 2026, 37.4% at June 30, 2026, and 37.6% at September 30, 2025.

Deposits:

Total deposits of $3.3 billion at September 30, 2026 decreased $52.0 million, or 6.1% (annualized), from June 30, 2026, and increased $407.1 million, or 14.0% from September 30, 2025.
- Excluding a $99.9 million increase in brokered time deposits, customer deposits decreased $151.8 million or 19.2% (annualized), which was driven by an $89.3 million decrease from DDA products associated with our Title business due to typical seasonality, a $35.6 million increase from organic activity, and a $26.9 million decrease from customer time deposits which were not renewed or extended.
  - The $151.8 million decrease includes $68.4 million from interest-bearing demand accounts, $52.8 million from noninterest-bearing deposits, $11.2 million from customer money market deposits, and $26.9 million from customer time deposits, partially offset by $7.5 million of growth from savings accounts.
- The increase in total deposits of $407.1 million year-over-year was primarily driven by $390.4 million in growth from customer money market deposits and $17.7 million from high yield savings accounts, with offsetting activity across other deposit products.
- Total deposits include $111.1 million of deposits expected to be assumed in connection with the pending Chicago branch sale, subject to finalization of the purchase and assumption agreement.

Insured and protected⁽⁸⁾ deposits were approximately $2.2 billion as of September 30, 2026 representing 66.6% of the Company's deposit portfolio.
Low interest⁽⁹⁾ and noninterest-bearing demand deposit account ("DDA") deposits totaled $1.2 billion, or 36.1% of deposits, a decrease of $113.8 million, or 8.7% from 2Q 2026, and an increase of $52.1 million, or 4.5% year-over-year.
- The average rate on the low interest and noninterest-bearing deposits was 0.30% for 3Q 2026, which increased 1 bps compared to 2Q 2026 and increased 15 bps year-over-year.

The average portfolio loans-to-deposit ratio was 96.0% for 3Q 2026, compared to 94.3% for 2Q 2026, and 95.6% for 3Q 2025.

⁽⁸⁾Protected deposits include deposits that are indirectly protected under the product terms.

⁽⁹⁾ Low interest deposits include interest-bearing demand and savings accounts.

Investment securities:

The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $214.5 million, or 5.6% of total assets, and an effective duration of 2.4 years, with U.S. Treasury Securities representing 61% of the overall investment portfolio at September 30, 2026. The accumulated other comprehensive loss on the investment securities portfolio increased $2.9 million during the quarter to $9.2 million after-tax as of September 30, 2026, which represents 2.1% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio.

Liquidity:

The Company maintains stable and diversified sources of contingent liquidity, generally consistent with the prior quarter. Total available borrowing capacity as of September 30, 2026 was $842.6 million, compared to $801.6 million as of June 30, 2026, consisting of $736.0 million of available collateralized borrowing capacity, $100.5 million of unsecured lines of credit with other banks, and $6.1 million of unpledged investment securities available to collateralize potential additional borrowings. Including cash and cash equivalents of $262.0 million, total liquidity was approximately $1.1 billion.

Capital:

As of September 30, 2026, the Company reported a Common Equity Tier-1 capital ratio of 13.25% and a Tier 1 leverage ratio of 10.84%, compared to 13.16% and 10.51%, respectively, at June 30, 2026. At September 30, 2026, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
There were no shares repurchased and retired during the three months ended September 30, 2026, as part of the Company's stock repurchase program. As of September 30, 2026, there was $12.4 million remaining to be repurchased under the current $15.0 million authorized repurchase program, which will expire on December 31, 2026. In connection with the merger agreement with Peoples, the Company has suspended its stock repurchase program and does not currently expect to repurchase additional shares while the proposed transaction is pending.

Financial Metrics

Net Interest Margin:

NIM of 5.81% for 3Q 2026, increased 17 bps compared to the prior quarter, but decreased 55 bps year-over-year. Core NIM⁽¹⁰⁾ of 4.18% increased 14 bps (but increased 12 bps when excluding PAA) compared to the prior quarter, and decreased 48 bps year-over-year. Net PAA for 3Q 2026 was 4 bps for NIM and 5 bps for Core NIM⁽¹⁰⁾. The increase quarter-over-quarter in Core NIM includes 11 bps from organic growth from Commercial Bank portfolio, 2 bps from one non-performing loan relationship in 2Q 2026, and 1 bp from higher net PAA compared to 2Q 2026. There was $4.6 million of PAA from the Call of Brokered Time Deposits during 3Q 2025, or 56 bps of NIM and 59 of Core NIM. Excluding the impact from the Call of Brokered Time Deposits, NIM increased 1 bp and Core NIM increased 11 bps year-over-year.

The average yield on interest earning assets of 7.91% increased 16 bps compared to the prior quarter and decreased 2 bps year-over-year. The increase quarter-over-quarter was due to growth in both the Commercial Bank and OpenSky™ portfolios. The decrease year-over-year was primarily due to the impact of changes in the rate environment to the Commercial Bank and OpenSky™ portfolios.
- The Core Loan Yield⁽¹⁰⁾ of 6.83% for 3Q 2026 increased 6 bps compared to 2Q 2026, and increased 9 bps year-over-year. The increase quarter-over-quarter includes 3 bps from organic portfolio growth and 3 bps from loan PAA. The increase year-over-year was primarily a result of organic portfolio growth.
The total cost of deposits of 2.30% for 3Q 2026 increased 1 bp compared to 2Q 2026, and increased 57 bps year-over-year. The increase year-over-year was primarily due to 63 bps from the Call of Brokered Time Deposits in 3Q 2025. Excluding the Call of Brokered Time Deposits from 3Q 2025, total cost of deposits would have decreased 6 bps year-over-year, primarily driven by a shift in product mix as well as changes in the rate environment offsetting lower time deposit PAA.
The total cost of interest-bearing deposits of 3.09% for 3Q 2026, remained consistent compared to the prior quarter, and increased 68 bps year-over-year. The increase year-over-year was primarily due to 87 bps from the Call of Brokered Time Deposits in 3Q 2025. Excluding the Call of Brokered Time Deposits from 3Q 2025, total cost of interest-bearing deposits would have decreased 19 bps year-over-year, which was primarily driven by a shift in product mix as well as changes in the rate environment.
Net PAA of $0.4 million, or 4 bps of NIM and 5 bps of Core NIM⁽¹⁰⁾, during 3Q 2026, increased $0.1 million from 2Q 2026 due to $0.2 million from the acceleration of PAA from a loan that paid off during 3Q 2026, partially offset by $0.1 million lower time deposit PAA from the run-off of certain purchase accounting marks associated with acquired IFH deposit portfolio. There was $5.5 million from net PAA during 3Q 2025, which includes $4.6 million, or 59 bps of Core NIM, from the Call of Brokered Time Deposits. Excluding the impact from the Call of Brokered Time Deposits, net PAA decreased $0.5 million mainly driven by lower time deposit PAA.

⁽¹⁰⁾ 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.

Credit Metrics and Asset Quality:

Nonperforming assets were $60.5 million, or 1.59% of total assets, at September 30, 2026, a decrease of $0.3 million but an increase of 3 bps from June 30, 2026. The decrease of $0.3 million was primarily driven by the acquired IFH portfolio. Nonperforming assets increased $8.3 million or 5 bps year-over-year, mainly due to the $9.7 million increase during 2Q 2026 related to the legacy bank loan relationship noted during 2Q 2026. At September 30, 2026, substandard loans totaled $71.4 million, or 2.3% of total portfolio loans, compared to $70.6 million, or 2.3% of total portfolio loans, at June 30, 2026 and $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025. The $14.6 million year-over-year increase in substandard loans was primarily driven by the $9.7 million legacy bank relationship that is referenced above. At September 30, 2026, special mention loans totaled $67.8 million, or 2.2%, of total portfolio loans, compared to $61.5 million, or 2.0% of total portfolio loans, at June 30, 2026, and $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025.

Efficiency Ratio:

The efficiency ratio was 67.1% for 3Q 2026, compared to 66.1% for 2Q 2026 and 60.8% for 3Q 2025. The Core efficiency ratio⁽¹¹⁾ was 64.8% for 3Q 2026, which decreased from 66.1% compared to the prior quarter, and increased from 64.4% for 3Q 2025.

Returns:

ROA was 1.38% for 3Q 2026, compared to 1.52% for 2Q 2026, and 1.77% for 3Q 2025. Core ROA⁽¹¹⁾for 3Q 2026 was 1.55%, compared to 1.52% for 2Q 2026, and 1.43% for 3Q 2025.

ROE was 12.16% for 3Q 2026, compared to 13.80% for 2Q 2026, and 15.57% for 3Q 2025. Core ROE⁽¹¹⁾ was 13.63% for 3Q 2026, compared to 13.80% for 2Q 2026, and 12.56% for 3Q 2025.
ROTCE⁽¹⁾ was 13.62% for 3Q 2026, compared to 15.51% for 2Q 2026, and 17.49% for 3Q 2025. Core ROTCE⁽¹¹⁾ for 3Q 2026 was 15.24%, compared to 15.51% for 2Q 2026, and 14.15% for 3Q 2025.

⁽¹¹⁾ As used in this press release, Core ROA, Core ROE, ROTCE, Core ROTCE, Core Efficiency Ratio 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.

Book Value:

Book value per common share of $26.42 at September 30, 2026, increased $0.50 when compared to June 30, 2026, and increased $2.62 when compared to September 30, 2025. Tangible book value per share⁽¹²⁾ increased $0.53, or 2.3% (not annualized), to $23.98 at September 30, 2026 when compared to June 30, 2026, and increased $2.65, or 12.4%, when compared to September 30, 2025.

Reportable Segments

Commercial Bank

Loan Growth – Portfolio loans⁽¹²⁾ increased $24.8 million at September 30, 2026 compared to June 30, 2026, primarily driven by increases of $42.7 million from C&I, $10.0 million from construction real estate, and $5.6 million from lender finance, offset by decreases of $21.1 million from CRE and $13.5 million from residential real estate. Excluding the impact of $60.2 million of loans reclassified to held for sale, gross loans held for investment increased $88.5 million, or 11.4% (annualized) from June 30, 2026. Portfolio loans increased $276.5 million at September 30, 2026 compared to September 30, 2025, driven by $155.1 million from C&I, $44.2 million from residential real estate, $36.4 million from construction real estate, and $12.1 million from CRE. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

⁽¹²⁾ Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.

Net Interest Income – Interest income of $55.6 million increased $1.9 million from the prior quarter, driven by $2.4 million from loan growth, slightly offset by a $0.5 million decrease from interest bearing cash income. Interest expense of $19.1 million increased $0.2 million, driven by growth and a mix shift in the deposit portfolio.

Credit Metrics – Nonperforming assets increased 3 bps to 1.68% of total assets at September 30, 2026, compared to June 30, 2026. Total nonaccrual loans at September 30, 2026, were $56.7 million, a decrease of $0.3 million or 0.6% compared to $57.0 million at June 30, 2026.

Classified and Criticized Loans – At September 30, 2026, special mention loans totaled $67.8 million, or 2.2% of total portfolio loans, compared to $61.5 million, or 2.0% of total portfolio loans, at June 30, 2026. At September 30, 2026, substandard loans totaled $71.4 million, or 2.3% of total portfolio loans, compared to $70.6 million, or 2.3% of total portfolio loans, at June 30, 2026.

OpenSky™

OpenSky™ results reflected continued loan balance growth, lower operating expenses and credit performance consistent with management expectations.

Accounts – During 3Q 2026, credit card accounts declined to 575.8 thousand, decreasing 12.8 thousand, or 2.2% (not annualized) from June 30, 2026, and decreasing 11.8 thousand, or 2.0% year-over-year.

Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $149.2 million at September 30, 2026 increased by $3.9 million, or 2.7% (not annualized), compared to June 30, 2026, and increased $12.7 million, or 9.3%, year-over-year. Deposit balances of $162.4 million at September 30, 2026, decreased $3.8 million compared to June 30, 2026 and decreased $4.5 million, or 2.7% year-over-year. Gross unsecured loan balances of $57.6 million at September 30, 2026, increased $6.4 million, or 12.4% (not annualized), compared to $51.2 million at June 30, 2026, and increased $18.0 million, or 45.5% (not annualized), year-over-year. Gross secured loan balances of $93.7 million at September 30, 2026, decreased $2.4 million, or 2.5% (not annualized), compared to $96.0 million at June 30, 2026, and decreased $5.1 million, or 5.2% (not annualized) year-over-year.

Net Interest Income – Interest income of $16.5 million increased $0.5 million compared to 2Q 2026, supported by higher average OpenSky™ credit card loan balances. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $143.9 million for 3Q 2026, increased $6.8 million, or 5.0% (not annualized), compared to 2Q 2026.

Fee Revenue – Total fee revenue of $4.6 million increased $0.1 million from the prior quarter primarily driven by continued growth in net interest income as loan balances increased.

Noninterest Expense – Total noninterest expense of $15.7 million increased $0.3 million compared to 2Q 2026, driven by increased spending on professional services.

OpenSky™ Credit – Portfolio credit metrics continued to be generally consistent with modeled expectations during 3Q 2026. The provision for credit losses of $4.1 million increased $0.1 million when compared to the prior quarter. Net charge-offs increased $0.3 million to $3.2 million in 3Q 2026 from $2.9 million in 2Q 2026. The $0.3 million increase in charge-offs was primarily driven by the secured product and is consistent with normal seasonality and expectations for the card business. On a year-over-year basis, net charge-offs for the secured product increased only $0.1 million, while net charge-offs for the unsecured product increased $1.0 million, driven by growth in the unsecured portfolio. The majority of OpenSky's™ unsecured loan product is offered to current and former secured card customers, where the Company has historical customer performance data. Unsecured loans have been offered by OpenSky™ since the fourth quarter of 2021 and have generally performed in alignment with management expectations over that time period. OpenSky™ has begun testing limited offers to new customers; this activity remains insignificant to the overall unsecured loan portfolio and total accounts, and balances are expected to remain de minimis through year-end as management monitors performance.

Capital Bank Home Loans

Originations of loans held for sale totaled $75.3 million during 3Q 2026, with $47.9 million of mortgage loans sold resulting in a gain on sale of loans of $1.4 million, representing a 2.93% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $106.9 million during 2Q 2026, with $87.1 million of mortgage loans sold resulting in a gain on sale of loans of $2.4 million, representing a 2.71% gain on sale as a percentage of total loans sold.

Windsor Advantage™

Gross government loan servicing revenue totaled $6.7 million, including $1.7 million of Capital Bank related servicing fees, during 3Q 2026. Gross government loan servicing revenue totaled $6.6 million, including $1.3 million of Capital Bank related servicing fees, during 2Q 2026. Windsor's™ total servicing portfolio was $3.5 billion at September 30, 2026, and $3.4 billion at June 30, 2026. In 3Q 2026, Windsor processed the closing of $183.9 million of government guaranteed loans, a 17.8% decrease from $223.6 million in 2Q 2026 and a 35.4% increase from $135.8 million in 3Q 2025.

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited

	Quarter Ended									3Q26 vs 2Q26					3Q26 vs 3Q25
(in thousands, except per share data)	September 30, 2026			June 30, 2026			September 30, 2025			$ Change			% Change		$ Change			% Change
Earnings Summary
Interest income	$	72,292		$	69,959		$	64,891		$	2,333		3.3	%	$	7,401		11.4	%
Interest expense		19,214			19,030			12,871			184		1.0	%		6,343		49.3	%
Net interest income		53,078			50,929			52,020			2,149		4.2	%		1,058		2.0	%
Provision for credit losses		4,903			3,585			4,650			1,318		36.8	%		253		5.4	%
Provision for (release of) credit losses on unfunded commitments		(54	)		65			217			(119	)	(183.1	)%		(271	)	(124.9	)%
Noninterest income		15,039			14,361			11,068			678		4.7	%		3,971		35.9	%
Noninterest expense		45,722			43,186			38,354			2,536		5.9	%		7,368		19.2	%
Income before income taxes		17,546			18,454			19,867			(908	)	(4.9	)%		(2,321	)	(11.7	)%
Income tax expense		4,424			4,204			4,802			220		5.2	%		(378	)	(7.9	)%
Net income	$	13,122		$	14,250		$	15,065		$	(1,128	)	(7.9	)%	$	(1,943	)	(12.9	)%
Core net income⁽¹⁾	$	14,699		$	14,250		$	12,151		$	449		3.2	%	$	2,548		21.0	%

Pre-tax pre-provision net revenue ("PPNR")⁽¹⁾	$	22,395		$	22,104		$	24,734		$	291		1.3	%	$	(2,339	)	(9.5	)%
Core PPNR⁽¹⁾	$	23,972		$	22,104		$	20,813		$	1,868		8.5	%	$	3,159		15.2	%

Common Share Data
Earnings per share - Basic	$	0.81		$	0.87		$	0.91		$	(0.06	)	(6.9	)%	$	(0.10	)	(11.0	)%
Earnings per share - Diluted	$	0.80		$	0.87		$	0.89		$	(0.07	)	(8.0	)%	$	(0.09	)	(10.1	)%
Core earnings per share - Diluted⁽¹⁾	$	0.89		$	0.87		$	0.72		$	0.02		2.3	%	$	0.17		23.6	%
Weighted average common shares - Basic		16,294			16,288			16,586
Weighted average common shares - Diluted		16,482			16,373			16,844

Return Ratios
Return on average assets (annualized)		1.38	%		1.52	%		1.77	%
Core return on average assets (annualized)⁽¹⁾		1.55	%		1.52	%		1.43	%
Return on average equity (annualized)		12.16	%		13.80	%		15.57	%
Core return on average equity (annualized)⁽¹⁾		13.63	%		13.80	%		12.56	%
Return on average tangible common equity (annualized)⁽¹⁾		13.62	%		15.51	%		17.49	%
Core return on average tangible common equity (annualized)⁽¹⁾		15.24	%		15.51	%		14.15	%

_______________

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

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (continued)

	Nine Months Ended
	September 30,
(in thousands, except per share data)		2026			2025		$ Change			% Change
Earnings Summary
Interest income	$	210,221		$	192,237		$	17,984		9.4	%
Interest expense		56,816			46,524			10,292		22.1	%
Net interest income		153,405			145,713			7,692		5.3	%
Provision for credit losses		11,502			10,977			525		4.8	%
Provision for credit losses on unfunded commitments		216			217			(1	)	(0.5	)%
Noninterest income		42,773			36,723			6,050		16.5	%
Noninterest expense		132,589			115,979			16,610		14.3	%
Income before income taxes		51,871			55,263			(3,392	)	(6.1	)%
Income tax expense		12,481			13,130			(649	)	(4.9	)%
Net income	$	39,390		$	42,133		$	(2,743	)	(6.5	)%
Core net income⁽¹⁾	$	40,967		$	41,253		$	(286	)	(0.7	)%

Pre-tax pre-provision net revenue ("PPNR")⁽¹⁾	$	63,589		$	66,457		$	(2,868	)	(4.3	)%
Core PPNR⁽¹⁾	$	65,166		$	65,200		$	(34	)	(0.1	)%

Common Share Data
Earnings per share - Basic	$	2.42		$	2.54		$	(0.12	)	(4.7	)%
Earnings per share - Diluted	$	2.40		$	2.50		$	(0.10	)	(4.0	)%
Core earnings per share - Diluted⁽¹⁾	$	2.49		$	2.45		$	0.04		1.6	%
Weighted average common shares - Basic		16,309			16,611
Weighted average common shares - Diluted		16,437			16,850

Return Ratios
Return on average assets (annualized)		1.41	%		1.71	%
Core return on average assets (annualized)⁽¹⁾		1.47	%		1.67	%
Return on average equity (annualized)		12.66	%		15.10	%
Core return on average equity (annualized)⁽¹⁾		13.17	%		14.79	%
Return on average tangible common equity (annualized)⁽¹⁾		14.24	%		17.06	%
Core return on average tangible common equity (annualized)⁽¹⁾		14.80	%		16.70	%

_______________

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

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (continued)

	Quarter Ended						Quarter Ended
	September 30,						June 30,		March 31,		December 31,
(in thousands, except per share data)	2026		2025		% Change		2026		2026		2025
Balance Sheet Highlights
Assets	$	3,802,553	$	3,389,442	12.2	%	$	3,889,938	$	3,808,467	$	3,606,207
Investment securities available-for-sale		214,486		232,640	(7.8	)%		219,947		230,525		230,083
Mortgage loans held for sale		74,251		14,146	424.9	%		22,370		13,739		25,828
Portfolio loans receivable⁽²⁾		3,114,264		2,821,983	10.4	%		3,085,950		3,026,431		2,959,457
Allowance for credit losses		55,493		53,045	4.6	%		54,431		54,680		54,660
Goodwill		25,969		25,969	—	%		25,969		25,969		25,969
Intangible assets		13,989		15,033	(6.9	)%		14,250		14,511		14,771
Deposits		3,319,135		2,912,053	14.0	%		3,371,103		3,292,047		3,093,200
FHLB borrowings		—		22,000	(100.0	)%		50,000		50,000		50,000
Other borrowed funds		2,062		12,062	(82.9	)%		2,062		2,062		2,062
Total stockholders' equity		431,450		394,770	9.3	%		422,205		408,859		401,757
Tangible common equity⁽¹⁾		391,492		353,768	10.7	%		381,986		368,379		361,017

Common shares outstanding		16,329		16,589	(1.6	)%		16,289		16,286		16,373
Book value per share	$	26.42	$	23.80	11.0	%	$	25.92	$	25.10	$	24.54
Tangible book value per share⁽¹⁾	$	23.98	$	21.33	12.4	%	$	23.45	$	22.62	$	22.05
Dividends per share	$	0.14	$	0.12	16.7	%	$	0.12	$	0.12	$	0.12

_______________

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

Consolidated Statements of Income (Unaudited)
	Three Months Ended													Nine Months Ended
(in thousands)	September 30, 2026			June 30, 2026		March 31, 2026		December 31, 2025			September 30, 2025			September 30, 2026		September 30, 2025
Interest income
Loans, including fees	$	68,136		$	65,362	$	64,186	$	64,933		$	60,838		$	197,684	$	180,339
Investment securities available-for-sale		1,826			1,814		1,459		1,728			1,805			5,099		5,248
Federal funds sold and other		2,330			2,783		2,325		1,973			2,248			7,438		6,650
Total interest income		72,292			69,959		67,970		68,634			64,891			210,221		192,237

Interest expense
Deposits		18,959			18,522		18,070		17,805			12,732			55,551		45,966
Borrowed funds		255			508		502		550			139			1,265		558
Total interest expense		19,214			19,030		18,572		18,355			12,871			56,816		46,524

Net interest income		53,078			50,929		49,398		50,279			52,020			153,405		145,713
Provision for credit losses		4,903			3,585		3,014		3,988			4,650			11,502		10,977
Provision for (release of) credit losses on unfunded commitments		(54	)		65		205		(29	)		217			216		217
Net interest income after provision for credit losses		48,229			47,279		46,179		46,320			47,153			141,687		134,519
Noninterest income
Service charges on deposits		418			409		403		371			425			1,230		945
Credit card fees		4,520			4,395		4,692		4,837			4,509			13,607		12,529
Mortgage banking revenue		1,849			1,960		1,556		1,960			1,927			5,365		5,512
Government lending revenue		1,474			1,207		923		—			14			3,604		4,222
Government loan servicing revenue		5,073			5,303		4,345		4,036			4,265			14,721		11,477
Loan servicing rights		523			292		497		295			368			1,312		250
Other income (loss)		1,182			795		957		965			(440	)		2,934		1,788
Total noninterest income		15,039			14,361		13,373		12,464			11,068			42,773		36,723
Noninterest expenses
Salaries and employee benefits		21,116			20,067		20,317		17,914			17,728			61,500		54,255
Occupancy and equipment		4,144			3,942		3,562		2,638			2,849			11,648		8,754
Professional fees		4,919			4,125		4,965		4,294			2,131			14,009		6,665
Data processing		7,708			7,551		7,767		7,502			7,654			23,026		22,286
Advertising		1,566			1,816		1,466		1,398			1,714			4,848		4,864
Loan processing		543			1,475		1,383		1,152			1,114			3,401		2,836
Merger-related expenses		1,577			—		—		—			697			1,577		3,361
Operational and other card fraud related losses		930			690		690		750			923			2,310		2,759
Regulatory assessment expenses		930			925		941		858			740			2,796		2,513
Other operating		2,289			2,595		2,590		2,597			2,804			7,474		7,686
Total noninterest expenses		45,722			43,186		43,681		39,103			38,354			132,589		115,979
Income before income taxes		17,546			18,454		15,871		19,681			19,867			51,871		55,263
Income tax expense		4,424			4,204		3,853		4,644			4,802			12,481		13,130
Net income	$	13,122		$	14,250	$	12,018	$	15,037		$	15,065		$	39,390	$	42,133

Consolidated Balance Sheets
	(unaudited)			(unaudited)			(unaudited)			(audited)			(unaudited)
(in thousands, except share data)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
Assets
Cash and due from banks	$	15,563		$	24,771		$	20,182		$	30,894		$	25,724
Interest-bearing deposits at other financial institutions		246,469			393,428			379,069			224,611			163,078
Federal funds sold		—			60			60			60			59
Total cash and cash equivalents		262,032			418,259			399,311			255,565			188,861
Investment securities available-for-sale		214,486			219,947			230,525			230,083			232,640
Restricted investments		6,360			8,707			8,691			8,397			7,057
Loans held for sale⁽¹⁾		74,251			22,370			13,739			25,828			14,146
Portfolio loans receivable, net of deferred fees and costs		3,114,264			3,085,950			3,026,431			2,959,457			2,821,983
Less allowance for credit losses		(55,493	)		(54,431	)		(54,680	)		(54,660	)		(53,045	)
Total portfolio loans held for investment, net		3,058,771			3,031,519			2,971,751			2,904,797			2,768,938
Premises and equipment, net⁽¹⁾		17,531			17,669			17,732			15,072			15,304
Accrued interest receivable		23,189			19,429			16,795			16,695			19,011
Goodwill		25,969			25,969			25,969			25,969			25,969
Intangible assets		13,989			14,250			14,511			14,771			15,033
Loan servicing assets		1,994			1,847			1,957			1,816			2,070
Deferred tax asset		18,206			16,504			15,187			14,992			14,885
Bank owned life insurance		46,654			46,260			45,871			45,488			45,105
Other assets		39,121			47,208			46,428			46,734			40,423
Total assets	$	3,802,553		$	3,889,938		$	3,808,467		$	3,606,207		$	3,389,442

Liabilities
Deposits
Noninterest-bearing	$	844,536		$	897,363		$	871,677		$	852,741		$	857,543
Interest-bearing		2,474,599			2,473,740			2,420,370			2,240,459			2,054,510
Total deposits⁽¹⁾		3,319,135			3,371,103			3,292,047			3,093,200			2,912,053
Federal Home Loan Bank advances		—			50,000			50,000			50,000			22,000
Other borrowed funds		2,062			2,062			2,062			2,062			12,062
Accrued interest payable		6,843			6,606			8,944			8,745			8,045
Other liabilities		43,063			37,962			46,555			50,443			40,512
Total liabilities		3,371,103			3,467,733			3,399,608			3,204,450			2,994,672

Stockholders' equity
Common stock		163			163			163			164			166
Additional paid-in capital		114,557			113,217			112,268			114,604			121,707
Retained earnings		325,944			315,103			302,808			292,749			279,693
Accumulated other comprehensive loss		(9,214	)		(6,278	)		(6,380	)		(5,760	)		(6,796	)
Total stockholders' equity		431,450			422,205			408,859			401,757			394,770
Total liabilities and stockholders' equity	$	3,802,553		$	3,889,938		$	3,808,467		$	3,606,207		$	3,389,442

_______________

⁽¹⁾Balances include held for sale transactions in connection with sale of Chicago branch.

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

	Three Months Ended September 30, 2026						Three Months Ended June 30, 2026						Three Months Ended September 30, 2025
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	242,761	$	2,218	3.62	%	$	295,167	$	2,646	3.60	%	$	194,858	$	2,139	4.36	%
Federal funds sold		22		—	—			60		—	—			59		1	5.79
Investment securities available-for-sale		227,537		1,826	3.18			240,102		1,814	3.03			241,086		1,805	2.97
Restricted investments		7,441		112	5.97			8,701		137	6.32			7,052		108	6.06
Loans held for sale⁽²⁾⁽³⁾		11,630		194	6.62			17,381		252	5.82			13,783		228	6.57
Portfolio loans receivable⁽³⁾⁽⁴⁾		3,135,648		67,942	8.60			3,058,476		65,110	8.54			2,789,815		60,610	8.62
Total interest earning assets		3,625,039		72,292	7.91			3,619,887		69,959	7.75			3,246,653		64,891	7.93
Noninterest earning assets⁽²⁾		140,002						141,624						131,643
Total assets	$	3,765,041					$	3,761,511					$	3,378,296

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	332,684		768	0.92		$	346,671		816	0.94		$	282,873		388	0.54
Savings		22,479		115	2.03			17,790		70	1.58			12,887		15	0.47
Money market accounts		1,375,162		11,389	3.29			1,315,061		10,797	3.29			985,106		8,650	3.48
Time deposits		703,072		6,687	3.77			722,144		6,839	3.80			815,302		3,679	1.79
Borrowed funds		25,051		255	4.04			52,062		508	3.91			34,062		139	1.62
Total interest-bearing liabilities⁽²⁾		2,458,448		19,214	3.10			2,453,728		19,030	3.11			2,130,230		12,871	2.40
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		46,904						51,427						43,245
Noninterest-bearing deposits⁽²⁾		831,739						842,312						820,899
Stockholders’ equity		427,950						414,044						383,922
Total liabilities and stockholders’ equity	$	3,765,041					$	3,761,511					$	3,378,296

Net interest spread					4.81	%					4.64	%					5.53	%
Net interest income			$	53,078					$	50,929					$	52,020
Net interest margin⁽⁵⁾					5.81	%					5.64	%					6.36	%

_______________

⁽¹⁾Annualized.
⁽²⁾Balances include held for sale transactions in connection with sale of Chicago branch.
⁽³⁾Average balances include nonaccrual loans. As of September 30, 2026, nonaccrual loans of $0.3 million were included in Loans held for sale and $56.4 million in Portfolio loans receivable.
⁽⁴⁾For the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, Core Loan Yield was 6.83%, 6.77% and 6.74%, respectively.
⁽⁵⁾For the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, Core Net Interest Margin was 4.18%, 4.04% and 4.66%, respectively.

	Nine Months Ended September 30,
		2026						2025
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	261,412	$	7,063	3.61	%	$	193,337	$	6,342	4.39	%
Federal funds sold		47		1	2.84			59		2	4.24
Investment securities available-for-sale		233,592		5,099	2.92			235,690		5,248	2.98
Restricted investments		8,191		373	6.09			6,622		306	6.17
Loans held for sale⁽²⁾⁽³⁾		13,971		623	5.96			11,046		629	7.62
Portfolio loans receivable⁽³⁾⁽⁴⁾		3,067,904		197,062	8.59			2,719,834		179,710	8.83
Total interest earning assets		3,585,117		210,221	7.84			3,166,588		192,237	8.12
Noninterest earning assets⁽²⁾		141,434						131,582
Total assets	$	3,726,551					$	3,298,170

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	314,587	$	1,998	0.85	%	$	269,184	$	1,147	0.57	%
Savings		18,022		214	1.59			13,044		49	0.51
Money market accounts		1,293,968		31,666	3.27			927,044		24,071	3.47
Time deposits		755,275		21,673	3.84			830,451		20,699	3.33
Borrowed funds		42,959		1,265	3.94			34,062		558	2.19
Total interest-bearing liabilities⁽²⁾		2,424,811		56,816	3.13			2,073,785		46,524	3.00
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		54,081						48,374
Noninterest-bearing deposits⁽²⁾		831,811						802,991
Stockholders’ equity		415,848						373,020
Total liabilities and stockholders’ equity	$	3,726,551					$	3,298,170

Net interest spread					4.71	%					5.12	%
Net interest income			$	153,405					$	145,713
Net interest margin⁽⁵⁾					5.72	%					6.15	%

_______________

⁽¹⁾Annualized.
⁽²⁾Balances include held for sale transactions in connection with sale of Chicago branch.
⁽³⁾Average balances include nonaccrual loans. As of September 30, 2026, nonaccrual loans of $0.3 million were included in Loans held for sale and $56.4 million in Portfolio loans receivable.
⁽⁴⁾For the nine months ended September 30, 2026 and 2025, collectively. Core Loan Yield was 6.84% and 7.01%, respectively.
⁽⁵⁾For the nine months ended September 30, 2026 and 2025, collectively. Core Net Interest Margin was 4.12% and 4.48%, respectively.

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

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

Segments

For the three months ended September 30, 2026

(in thousands)

Commercial Bank

OpenSky™

Windsor Advantage™

CBHL

Consolidated

Interest income

55,580

16,517

—

195

72,292

Interest expense

19,128

—

19,214

Net interest income

36,452

16,517

—

109

53,078

Provision for credit losses

833

4,070

—

4,903

Release of credit losses on unfunded commitments

(54

)

—

(54

)

Net interest income after provision

35,673

12,447

—

109

48,229

Noninterest income

Service charges on deposits

418

—

418

Credit card fees

—

4,520

—

4,520

Mortgage banking revenue

490

—

1,359

1,849

Government lending revenue

1,474

—

1,474

Government loan servicing revenue⁽¹⁾

(1,665

)

—

6,738

—

5,073

Loan servicing rights

523

—

523

Other income

877

269

1,182

Total noninterest income

2,117

4,551

6,743

1,628

15,039

Noninterest expenses

Salaries and employee benefits

11,879

4,319

3,095

1,823

21,116

Occupancy and equipment

2,441

1,064

436

203

4,144

Professional fees

2,469

1,736

287

427

4,919

Data processing

442

7,152

7,708

Advertising

1,183

143

123

117

1,566

Loan processing

266

271

543

Merger-related expenses

1,577

—

1,577

Operational and other card fraud related losses

812

930

Regulatory assessment expenses

563

232

930

Other operating

1,332

262

563

132

2,289

Total noninterest expenses

22,225

15,725

4,660

3,112

45,722

Net income (loss) before taxes

15,565

1,273

2,083

(1,375

)

17,546

Total assets

3,607,589

144,462

28,508

21,994

3,802,553

_______________

⁽¹⁾Gross government loan servicing revenue totaled $6.7 million, including $1.7 million of servicing fees earned from the Commercial Bank by Windsor™, for the three months ended September 30, 2026.

Segments

For the three months ended June 30, 2026

(in thousands)

Commercial Bank

OpenSky™

Windsor Advantage™

CBHL

Consolidated

Interest income

53,712

15,995

—

252

69,959

Interest expense

18,894

—

136

19,030

Net interest income

34,818

15,995

—

116

50,929

Provision for (release of) credit losses

(432

)

4,017

—

3,585

Provision for credit losses on unfunded commitments

—

Net interest income after provision

35,185

11,978

—

116

47,279

Noninterest income

Service charges on deposits

409

—

409

Credit card fees

—

4,395

—

4,395

Mortgage banking revenue

278

—

1,682

1,960

Government lending revenue

1,207

—

1,207

Government loan servicing revenue⁽¹⁾

(1,256

)

—

6,559

—

5,303

Loan servicing rights

292

—

292

Other income

618

—

147

795

Total noninterest income

1,548

4,425

6,559

1,829

14,361

Noninterest expenses

Salaries and employee benefits

12,048

3,792

2,625

1,602

20,067

Occupancy and equipment

2,315

1,047

391

189

3,942

Professional fees

2,233

1,228

271

393

4,125

Data processing

452

6,983

7,551

Advertising

765

598

297

156

1,816

Loan processing

927

271

268

1,475

Merger-related expenses

—

Operational and other card fraud related losses

618

—

690

Regulatory assessment expenses

583

214

925

Other operating

1,277

639

558

121

2,595

Total noninterest expenses

20,672

15,390

4,282

2,842

43,186

Net income (loss) before taxes

16,061

1,013

2,277

(897

)

18,454

Total assets

3,689,273

143,716

27,818

29,131

3,889,938

_______________

⁽¹⁾ Gross government loan servicing revenue totaled $6.6 million, including $1.3 million of servicing fees earned from the Commercial Bank by Windsor™, for the three months ended June 30, 2026.

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

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

—

Government loan servicing revenue⁽¹⁾

(1,074

)

—

5,339

—

4,265

Loan servicing rights

368

—

368

Other income (loss)

(557

)

(33

)

—

150

(440

)

Total noninterest income

(509

)

4,476

5,339

1,762

11,068

Noninterest expenses

Salaries and employee benefits

10,559

3,271

2,455

1,443

17,728

Occupancy and equipment

1,635

632

416

166

2,849

Professional fees

1,079

571

198

283

2,131

Data processing

350

7,154

7,654

Advertising

694

833

111

1,714

Loan processing

740

292

1,114

Merger-related expenses

697

—

697

Operational and other card fraud related losses

—

923

—

923

Regulatory assessment expenses

788

(30

)

(11

)

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 $49.0 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.

Segments

For the nine months ended September 30, 2026

(in thousands)

Commercial Bank

OpenSky™

Windsor Advantage™

CBHL

Consolidated

Interest income

162,024

47,573

—

624

210,221

Interest expense

56,494

—

322

56,816

Net interest income

105,530

47,573

—

302

153,405

Provision for credit losses

745

10,757

—

11,502

Provision for credit losses on unfunded commitments

216

—

216

Net interest income after provision

104,569

36,816

—

302

141,687

Noninterest income

Service charges on deposits

1,230

—

1,230

Credit card fees

—

13,607

—

13,607

Mortgage banking revenue

1,184

—

4,181

5,365

Government lending revenue

3,604

—

3,604

Government loan servicing revenue⁽¹⁾

(4,183

)

—

18,904

—

14,721

Loan servicing rights

1,312

—

1,312

Other income

2,202

654

2,934

Total noninterest income

5,349

13,680

18,909

4,835

42,773

Noninterest expenses

Salaries and employee benefits

36,017

11,998

8,384

5,101

61,500

Occupancy and equipment

6,626

3,229

1,219

574

11,648

Professional fees

7,170

4,825

836

1,178

14,009

Data processing

1,439

21,242

188

157

23,026

Advertising

2,666

1,333

480

369

4,848

Loan processing

2,269

323

777

3,401

Merger-related expenses

1,577

—

1,577

Operational and other card fraud related losses

210

2,055

2,310

Regulatory assessment expenses

1,744

661

200

191

2,796

Other operating

3,749

1,616

1,726

383

7,474

Total noninterest expenses

63,467

47,282

13,088

8,752

132,589

Net income (loss) before taxes

46,451

3,214

5,821

(3,615

)

51,871

Total assets

3,607,589

144,462

28,508

21,994

3,802,553

_______________
⁽¹⁾ Gross government loan servicing revenue totaled $18.9 million, including $4.2 million of servicing fees earned from the Commercial Bank by Windsor™, for the nine months ended September 30, 2026.

Segments

For the nine months ended September 30, 2025

(in thousands)

Commercial Bank

OpenSky™

Windsor Advantage™

CBHL

Consolidated

Interest income

147,128

44,566

—

543

192,237

Interest expense

46,273

—

251

46,524

Net interest income

100,855

44,566

—

292

145,713

Provision for credit losses

3,457

7,520

—

10,977

Provision for credit losses on unfunded commitments

217

—

217

Net interest income after provision

97,181

37,046

—

292

134,519

Noninterest income

Service charges on deposits

945

—

945

Credit card fees

—

12,529

—

12,529

Mortgage banking revenue

1,043

—

4,469

5,512

Government lending revenue

4,222

—

4,222

Government loan servicing revenue⁽¹⁾

(3,164

)

—

14,641

—

11,477

Loan servicing rights

250

—

250

Other income

1,215

—

570

1,788

Total noninterest income

4,511

12,532

14,641

5,039

36,723

Noninterest expenses

Salaries and employee benefits

32,275

10,019

7,370

4,591

54,255

Occupancy and equipment

5,115

1,693

1,495

451

8,754

Professional fees

3,802

1,714

389

760

6,665

Data processing

1,244

20,633

283

126

22,286

Advertising

2,207

2,177

215

265

4,864

Loan processing

1,867

128

783

2,836

Merger-related expenses

3,361

—

3,361

Operational and other card fraud related losses

131

2,628

—

2,759

Regulatory assessment expenses

2,513

—

2,513

Other operating

4,719

1,441

1,222

304

7,686

Total noninterest expenses

57,234

40,363

11,102

7,280

115,979

Net income (loss) before taxes

44,458

9,215

3,539

(1,949

)

55,263

Total assets

3,213,222

134,422

21,743

20,055

3,389,442

_______________
⁽¹⁾ Gross government loan servicing revenue totaled $14.6 million, including $3.2 million of servicing fees earned from the Commercial Bank by Windsor™, for the nine months ended September 30, 2025.

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
	Quarter Ended
(in thousands, except per share data)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
Earnings:
Net income	$	13,122		$	14,250		$	12,018		$	15,037		$	15,065
Earnings per common share, diluted		0.80			0.87			0.73			0.91			0.89
Net interest margin		5.81	%		5.64	%		5.71	%		5.94	%		6.36	%
Core net interest margin⁽²⁾		4.18	%		4.04	%		4.15	%		4.19	%		4.66	%
Return on average assets⁽¹⁾		1.38	%		1.52	%		1.33	%		1.71	%		1.77	%
Return on average equity⁽¹⁾		12.16	%		13.80	%		12.03	%		15.23	%		15.57	%
Efficiency ratio		67.12	%		66.14	%		69.59	%		62.32	%		60.79	%

Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	3,114,264		$	3,085,950		$	3,026,431		$	2,959,457		$	2,821,983
Total deposits		3,319,135			3,371,103			3,292,047			3,093,200			2,912,053
Total assets		3,802,553			3,889,938			3,808,467			3,606,207			3,389,442
Total stockholders' equity		431,450			422,205			408,859			401,757			394,770
Total average portfolio loans receivable, net deferred fees		3,135,648			3,058,476			3,008,187			2,902,033			2,789,815
Total average deposits		3,265,136			3,243,978			3,130,392			2,992,784			2,917,067
Portfolio loans-to-deposit ratio (period-end balances)		93.83	%		91.54	%		91.93	%		95.68	%		96.91	%
Portfolio loans-to-deposit ratio (average balances)		96.03	%		94.28	%		96.10	%		96.97	%		95.64	%

Asset Quality Ratios:
Nonperforming assets to total assets		1.59	%		1.56	%		1.56	%		1.62	%		1.54	%
Nonperforming loans to total loans		1.82	%		1.85	%		1.83	%		1.84	%		1.85	%
Net charge-offs to average portfolio loans⁽¹⁾		0.49	%		0.50	%		0.40	%		0.32	%		0.35	%
Allowance for credit losses to total loans		1.78	%		1.76	%		1.81	%		1.85	%		1.88	%
Allowance for credit losses to non-performing loans		97.94	%		95.51	%		98.67	%		100.44	%		101.53	%

Bank Capital Ratios:
Total risk based capital ratio⁽³⁾		12.52	%		12.60	%		12.52	%		12.60	%		12.95	%
Tier-1 risk based capital ratio⁽³⁾		11.26	%		11.34	%		11.26	%		11.34	%		11.69	%
Leverage ratio⁽³⁾		9.15	%		8.97	%		9.00	%		9.24	%		9.34	%
Common Equity Tier-1 capital ratio⁽³⁾		11.26	%		11.34	%		11.26	%		11.34	%		11.69	%
Tangible common equity⁽³⁾		9.34	%		9.06	%		8.40	%		8.75	%		9.06	%
Holding Company Capital Ratios:
Total risk based capital ratio⁽³⁾		14.58	%		14.49	%		14.25	%		14.31	%		15.25	%
Tier-1 risk based capital ratio⁽³⁾		13.32	%		13.23	%		12.99	%		13.05	%		13.62	%
Leverage ratio⁽³⁾		10.84	%		10.51	%		10.48	%		10.71	%		10.98	%
Common Equity Tier-1 capital ratio⁽³⁾		13.25	%		13.16	%		12.92	%		12.98	%		13.54	%
Tangible common equity⁽³⁾		11.02	%		10.54	%		9.73	%		10.07	%		10.60	%

_______________
⁽¹⁾Annualized.
⁽²⁾Refer to Appendix for reconciliation of non-GAAP measures.
⁽³⁾Estimated ratio at September 30, 2026.

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (continued)
	Quarter Ended
(in thousands, except per share data)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
Composition of Loans:
Commercial real estate, non owner-occupied	$	545,612		$	561,805		$	522,498		$	533,141		$	509,878
Commercial real estate, owner-occupied		419,186			424,109			428,632			418,701			442,827
Residential real estate		784,220			797,745			795,505			765,808			740,060
Construction real estate		380,688			370,710			365,706			359,566			344,290
Commercial and industrial		774,297			731,575			730,576			698,289			619,148
Lender finance		55,601			50,020			43,775			41,421			31,883
Business equity lines of credit		4,355			4,930			4,170			3,818			2,931
Credit card, net of reserve⁽⁴⁾		149,184			145,266			134,789			142,397			136,483
Other consumer loans		5,539			3,772			4,779			1,930			2,010
Portfolio loans receivable	$	3,118,682		$	3,089,932		$	3,030,430		$	2,965,071		$	2,829,510
Deferred origination fees, net		(4,418	)		(3,982	)		(3,999	)		(5,614	)		(7,527	)
Portfolio loans receivable, net	$	3,114,264		$	3,085,950		$	3,026,431		$	2,959,457		$	2,821,983

Composition of Deposits:
Noninterest-bearing	$	844,536		$	897,363		$	871,677		$	852,741		$	857,543
Interest-bearing demand		323,139			391,544			341,723			257,233			275,767
Savings		30,538			23,077			21,471			11,679			12,835
Money markets		1,379,580			1,390,778			1,276,034			1,105,183			989,159
Customer time deposits		410,479			437,358			478,085			489,687			539,207
Brokered time deposits		330,863			230,983			303,057			376,677			237,542
Total deposits	$	3,319,135		$	3,371,103		$	3,292,047		$	3,093,200		$	2,912,053

Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	75,348		$	106,885		$	72,933		$	107,283		$	80,651
Mortgage loans sold		47,911			87,059			52,423			82,998			66,409
Gain on sale of loans		1,404			2,362			1,496			2,145			1,698
Purchase volume as a % of originations		90.50	%		86.14	%		73.15	%		72.77	%		92.32	%
Gain on sale as a % of loans sold⁽⁵⁾		2.93	%		2.71	%		2.85	%		2.58	%		2.56	%
Mortgage commissions	$	591		$	947		$	594		$	899		$	656

OpenSky™Portfolio Metrics:
Open customer accounts		575,841			588,594			588,190			585,492			587,641
Secured credit card loans, gross	$	93,672		$	96,026		$	90,021		$	97,313		$	98,793
Unsecured credit card loans, gross		57,589			51,234			46,574			47,131			39,576
Noninterest secured credit card deposits		162,354			166,174			165,506			163,184			166,874

_______________

⁽⁴⁾Credit card loans are presented net of reserve for interest and fees.
⁽⁵⁾Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.

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)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Net Income	$	13,122		$	14,250		$	12,018		$	15,037		$	15,065
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax		—			—			—			—			(3,489	)
Add: Merger-Related Expenses, Net of Tax		1,577			—			—			—			575
Core Net Income	$	14,699		$	14,250		$	12,018		$	15,037		$	12,151

Weighted Average Common Shares - Diluted		16,482			16,373			16,441			16,493			16,844
Earnings per Share - Diluted	$	0.80		$	0.87		$	0.73		$	0.91		$	0.89
Core Earnings per Share - Diluted	$	0.89		$	0.87		$	0.73		$	0.91		$	0.72

Average Assets	$	3,765,041		$	3,761,511		$	3,651,812		$	3,498,540		$	3,378,296
Return on Average Assets⁽¹⁾		1.38	%		1.52	%		1.33	%		1.71	%		1.77	%
Core Return on Average Assets⁽¹⁾		1.55	%		1.52	%		1.33	%		1.71	%		1.43	%

Average Equity	$	427,950		$	414,044		$	405,302		$	391,750		$	383,922
Return on Average Equity⁽¹⁾		12.16	%		13.80	%		12.03	%		15.23	%		15.57	%
Core Return on Average Equity⁽¹⁾		13.63	%		13.80	%		12.03	%		15.23	%		12.56	%

Net Interest Income	$	53,078		$	50,929		$	49,398		$	50,279		$	52,020
Noninterest Income		15,039			14,361			13,373			12,464			11,068
Total Revenue	$	68,117		$	65,290		$	62,771		$	62,743		$	63,088
Noninterest Expense		45,722			43,186			43,681			39,103			38,354
Efficiency Ratio⁽²⁾		67.1	%		66.1	%		69.6	%		62.3	%		60.8	%

Net Interest Income	$	53,078		$	50,929		$	49,398		$	50,279		$	52,020
Deduct: Income from the Call of Brokered Time Deposits		—			—			—			—			4,618
Core Net Interest Income (a)	$	53,078		$	50,929		$	49,398		$	50,279		$	47,402
Noninterest Income (b)		15,039			14,361			13,373			12,464			11,068
Core Revenue (a) + (b)	$	68,117		$	65,290		$	62,771		$	62,743		$	58,470

Noninterest Expense	$	45,722		$	43,186		$	43,681		$	39,103		$	38,354
Less: Merger-Related Expenses		1,577			—			—			—			697
Core Noninterest Expense	$	44,145		$	43,186		$	43,681		$	39,103		$	37,657
Core Efficiency Ratio⁽²⁾		64.8	%		66.1	%		69.6	%		62.3	%		64.4	%

_______________

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

Core Earnings Metrics	Nine Months Ended
(in thousands, except per share data)	September 30, 2026			September 30, 2025

Net Income	$	39,390		$	42,133
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax		—			(3,489	)
Add: Merger-Related Expenses, Net of Tax		1,577			2,609
Core Net Income	$	40,967		$	41,253

Weighted Average Common Shares - Diluted		16,437			16,850
Earnings per Share - Diluted	$	2.40		$	2.50
Core Earnings per Share - Diluted	$	2.49		$	2.45

Average Assets	$	3,726,551		$	3,298,170
Return on Average Assets⁽¹⁾		1.41	%		1.71	%
Core Return on Average Assets⁽¹⁾		1.47	%		1.67	%

Average Equity	$	415,848		$	373,020
Return on Average Equity⁽¹⁾		12.66	%		15.10	%
Core Return on Average Equity⁽¹⁾		13.17	%		14.79	%

Net Interest Income	$	153,405		$	145,713
Noninterest Income		42,773			36,723
Total Revenue	$	196,178		$	182,436
Noninterest Expense		132,589			115,979
Efficiency Ratio⁽²⁾		67.6	%		63.6	%

Net Interest Income	$	153,405		$	145,713
Deduct: Income from the Call of Brokered Time Deposits		—			4,618
Core Net Interest Income (a)	$	153,405		$	141,095
Noninterest Income (b)		42,773			36,723
Core Revenue (a) + (b)	$	196,178		$	177,818

Noninterest Expense	$	132,589		$	115,979
Less: Merger-Related Expenses		1,577			3,361
Core Noninterest Expense	$	131,012		$	112,618
Core Efficiency Ratio⁽²⁾		66.8	%		63.3	%

_______________

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

Core Net Interest Margin	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Net Interest Income	$	53,078		$	50,929		$	49,398		$	50,279		$	52,020
Less: Credit Card Loan Income		16,405			15,808			14,882			16,196			15,386
Net Interest Income Excluding Credit Card		36,673			35,121			34,516			34,083			36,634
Average Interest Earning Assets		3,625,039			3,619,887			3,509,115			3,360,576			3,246,653
Less: Average Credit Card Loans		143,858			137,052			133,712			133,858			129,100
Average Core Interest Earning Assets	$	3,481,181		$	3,482,835		$	3,375,403		$	3,226,718		$	3,117,553
Core Net Interest Margin		4.18	%		4.04	%		4.15	%		4.19	%		4.66	%


Core Net Interest Margin	Nine Months Ended
(in thousands)	September 30, 2026			September 30, 2025

Net Interest Income	$	153,405		$	145,713
Less: Credit Card Loan Income		47,095			43,651
Core Net Interest Income		106,310			102,062
Average Interest Earning Assets		3,585,117			3,166,588
Less: Average Credit Card Loans		138,244			123,117
Average Core Interest Earning Assets	$	3,446,873		$	3,043,471
Core Net Interest Margin		4.12	%		4.48	%

Core Loan Yield	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Portfolio Loans Receivable Interest Income	$	67,942		$	65,110		$	64,009		$	64,670		$	60,610
Less: Credit Card Loan Income		16,405			15,808			14,882			16,196			15,386
Core Portfolio Loans Receivable Interest Income	$	51,537		$	49,302		$	49,127		$	48,474		$	45,224
Average Portfolio Loans Receivable		3,135,648			3,058,476			3,008,187			2,902,033			2,789,815
Less: Average Credit Card Loans		143,858			137,052			133,712			133,858			129,100
Total Core Average Portfolio Loans Receivable	$	2,991,790		$	2,921,424		$	2,874,475		$	2,768,175		$	2,660,715
Core Portfolio Loans Receivable Yield		6.83	%		6.77	%		6.93	%		6.95	%		6.74	%


Core Loan Yield	Nine Months Ended
(in thousands)	September 30, 2026			September 30, 2025

Portfolio Loans Receivable Interest Income	$	197,062		$	179,710
Less: Credit Card Loan Income		47,095			43,651
Core Portfolio Loans Receivable Interest Income	$	149,967		$	136,059
Average Portfolio Loans Receivable		3,067,904			2,719,834
Less: Average Credit Card Loans		138,244			123,117
Total Core Average Portfolio Loans Receivable	$	2,929,660		$	2,596,717
Core Portfolio Loans Receivable Yield		6.84	%		7.01	%

Pre-tax, Pre-Provision Net Revenue ("PPNR")	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026		March 31, 2026		December 31, 2025			September 30, 2025

Net Income	$	13,122		$	14,250	$	12,018	$	15,037		$	15,065
Add: Income Tax Expense		4,424			4,204		3,853		4,644			4,802
Add: Provision for Credit Losses		4,903			3,585		3,014		3,988			4,650
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		(54	)		65		205		(29	)		217
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	22,395		$	22,104	$	19,090	$	23,640		$	24,734


Pre-tax, Pre-Provision Net Revenue ("PPNR")	Nine Months Ended
(in thousands)	September 30, 2026		September 30, 2025

Net Income	$	39,390	$	42,133
Add: Income Tax Expense		12,481		13,130
Add: Provision for Credit Losses		11,502		10,977
Add: Provision for Credit Losses on Unfunded Commitments		216		217
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	63,589	$	66,457

Core PPNR	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026		March 31, 2026		December 31, 2025			September 30, 2025

Net Income	$	13,122		$	14,250	$	12,018	$	15,037		$	15,065
Add: Income Tax Expense		4,424			4,204		3,853		4,644			4,802
Add: Provision for Credit Losses		4,903			3,585		3,014		3,988			4,650
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		(54	)		65		205		(29	)		217
Deduct: Income from the Call of Brokered Time Deposits		—			—		—		—			(4,618	)
Add: Merger-Related Expenses		1,577			—		—		—			697
Core PPNR	$	23,972		$	22,104	$	19,090	$	23,640		$	20,813


Core PPNR	Nine Months Ended
(in thousands)	September 30, 2026		September 30, 2025

Net Income	$	39,390	$	42,133
Add: Income Tax Expense		12,481		13,130
Add: Provision for Credit Losses		11,502		10,977
Add: Provision for Credit Losses on Unfunded Commitments		216		217
Deduct: Income from the Call of Brokered Time Deposits		—		(4,618	)
Add: Merger-Related Expenses		1,577		3,361
Core PPNR	$	65,166	$	65,200

Allowance for Credit Losses to Total Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Allowance for Credit Losses	$	55,493		$	54,431		$	54,680		$	54,660		$	53,045
Total Portfolio Loans		3,114,264			3,085,950			3,026,431			2,959,457			2,821,983
Allowance for Credit Losses to Total Portfolio Loans		1.78	%		1.76	%		1.81	%		1.85	%		1.88	%

Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Allowance for Credit Losses	$	55,493		$	54,431		$	54,680		$	54,660		$	53,045
Less: Credit Card Allowance for Credit Losses		9,777			8,904			7,802			8,232			7,413
Commercial Bank Allowance for Credit Losses	$	45,716		$	45,527		$	46,878		$	46,428		$	45,632
Total Portfolio Loans		3,114,264			3,085,950			3,026,431			2,959,457			2,821,983
Less: Gross Credit Card Loans		144,258			141,446			131,887			137,905			130,897
Commercial Bank Portfolio Loans	$	2,970,006		$	2,944,504		$	2,894,544		$	2,821,552		$	2,691,086
Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans		1.54	%		1.55	%		1.62	%		1.65	%		1.70	%

Nonperforming Assets to Total Assets	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Total Nonperforming Assets	$	60,518		$	60,843		$	59,273		$	58,276		$	52,247
Total Assets		3,802,553			3,889,938			3,808,467			3,606,207			3,389,442
Nonperforming Assets to Total Assets		1.59	%		1.56	%		1.56	%		1.62	%		1.54	%

Nonperforming Loans to Total Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Total Nonperforming Loans	$	56,662		$	56,987		$	55,417		$	54,421		$	52,247
Total Portfolio Loans		3,114,264			3,085,950			3,026,431			2,959,457			2,821,983
Nonperforming Loans to Total Portfolio Loans		1.82	%		1.85	%		1.83	%		1.84	%		1.85	%

Net Charge-Offs to Average Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Total Net Charge-Offs	$	3,841		$	3,834		$	2,994		$	2,373		$	2,476
Total Average Portfolio Loans		3,135,648			3,058,476			3,008,187			2,902,033			2,789,815
Net Charge-Offs to Average Portfolio Loans, Annualized		0.49	%		0.50	%		0.40	%		0.32	%		0.35	%


Net Charge-offs to Average Portfolio Loans	Nine Months Ended
(in thousands)	September 30, 2026			September 30, 2025

Total Net Charge-Offs	$	10,669		$	10,008
Total Average Portfolio Loans		3,067,904			2,719,834
Net Charge-Offs to Average Portfolio Loans, Annualized		0.46	%		0.49	%

Tangible Book Value per Share	Quarter Ended
(in thousands, except share and per share data)	September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025

Total Stockholders' Equity	$	431,450	$	422,205	$	408,859	$	401,757	$	394,770
Less: Intangible Assets		39,958		40,219		40,480		40,740		41,002
Tangible Common Equity	$	391,492	$	381,986	$	368,379	$	361,017	$	353,768
Period End Shares Outstanding		16,328,648		16,289,288		16,286,480		16,373,288		16,589,241
Tangible Book Value per Share	$	23.98	$	23.45	$	22.62	$	22.05	$	21.33

Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Net Income	$	13,122		$	14,250		$	12,018		$	15,037		$	15,065
Add: Intangible Amortization, Net of Tax		195			201			197			200			199
Net Tangible Income	$	13,317		$	14,451		$	12,215		$	15,237		$	15,264
Average Equity		427,950			414,044			405,302			391,750			383,922
Less: Average Intangible Assets		40,116			40,377			40,628			40,884			37,706
Net Average Tangible Common Equity	$	387,834		$	373,667		$	364,674		$	350,866		$	346,216
Return on Average Equity		12.16	%		13.80	%		12.03	%		15.23	%		15.57	%
Return on Average Tangible Common Equity		13.62	%		15.51	%		13.58	%		17.23	%		17.49	%


Return on Average Tangible Common Equity	Nine Months Ended
(in thousands)	September 30, 2026			September 30, 2025

Net Income	$	39,390		$	42,133
Add: Intangible Amortization, Net of Tax		594			599
Net Tangible Income	$	39,984		$	42,732
Average Equity		415,848			373,020
Less: Average Intangible Assets		40,372			38,048
Net Average Tangible Common Equity	$	375,476		$	334,972
Return on Average Equity		12.66	%		15.10	%
Return on Average Tangible Common Equity		14.24	%		17.06	%

Core Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025

Core Net Income	$	14,699		$	14,250		$	12,018		$	15,037		$	12,151
Add: Intangible Amortization, Net of Tax		195			201			197			200			199
Core Net Tangible Income	$	14,894		$	14,451		$	12,215		$	15,237		$	12,350
Core Return on Average Tangible Common Equity		15.24	%		15.51	%		13.58	%		17.23	%		14.15	%


Core Return on Average Tangible Common Equity	Nine Months Ended
(in thousands)	September 30, 2026			September 30, 2025

Core Net Income	$	40,967		$	41,253
Add: Intangible Amortization, Net of Tax		594			599
Core Net Tangible Income	$	41,561		$	41,852
Core Return on Average Tangible Common Equity		14.80	%		16.70	%

ABOUT CAPITAL BANCORP, INC.

Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in four locations in the Washington, D.C., and Baltimore, Maryland metropolitan markets, one bank branch in Fort Lauderdale, Florida, one bank branch in Chicago, Illinois and one bank branch in Raleigh, North Carolina. Capital Bancorp had assets of approximately $3.8 billion at September 30, 2026 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company's website www.CapitalBankMD.com under its investor relations page.

FORWARD-LOOKING STATEMENTS

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

While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors that could cause actual results to differ materially from those contained or implied in the forward-looking statements: the strength of the United States (“U.S.”) economy in general and the strength of the local economies in which we conduct operations; geopolitical concerns, including acts or threats of terrorism and the ongoing wars in Iran and Ukraine; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; changes in U.S. trade policies, including the implementation of tariffs and other protectionist trade policies; the effects of federal government shutdowns, debt ceiling standoff, or other fiscal policy uncertainty; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them; climate change, and other catastrophic disasters; the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; the Company’s ability to remediate the material weakness in the Company’s internal control over financial reporting; the effect of the IFH acquisition or any other acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations, including the planned growth of Windsor Advantage™; the possibility that the Company's pending merger with Peoples does not close when expected or at all because required regulatory approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the possibility that the anticipated benefits and cost savings from the merger with Peoples may not be fully realized or may take longer to realize than expected; disruptions to the Company's business as a result of the announcement and pendency of the merger with Peoples; the possibility that the merger with Peoples may be more expensive to complete than anticipated, including as a result of unexpected factors or events; and our ability to manage the risks involved in the foregoing.

These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.

FINANCIAL CONTACT: Jake Dalaya (301) 637-5118

MEDIA CONTACT: Ed Barry (240) 283-1912

WEBSITE: www.CapitalBankMD.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Capital Bancorp's third-quarter 2026 earnings?

Capital Bancorp earned $13.1 million, or $0.80 per diluted share, in the third quarter of 2026. GAAP net income declined 7.9% sequentially and 12.9% year over year. Core net income, a non-GAAP measure, was $14.7 million, or $0.89 per diluted share.

What will Capital Bancorp shareholders receive in the Peoples Bancorp merger?

Capital Bancorp shareholders will receive 1.11 shares of Peoples common stock for each Capital Bancorp common share under the merger agreement. The terms represent an implied value of $43.75 per share and an approximate 22.7% premium over Capital Bancorp's September 29, 2026 closing price. Completion requires regulatory and shareholder approvals.

When will Capital Bancorp pay its declared dividend?

Capital Bancorp will pay its declared $0.14 per common share cash dividend on November 25, 2026, to shareholders of record on November 9, 2026.

Why did Capital Bancorp's deposits decline in the third quarter of 2026?

The sequential deposit decline included $89.3 million from title-business demand deposit accounts and $45.2 million from a single customer relationship. The company described the title-business decline as consistent with regular seasonality. Excluding title-company deposits and that customer relationship, deposits increased $82.5 million, or 11.8% annualized.

CBNK Delivers Strong Revenue Growth and Positive Operating Leverage

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What were Capital Bancorp's third-quarter 2026 earnings?

What will Capital Bancorp shareholders receive in the Peoples Bancorp merger?

When will Capital Bancorp pay its declared dividend?

Why did Capital Bancorp's deposits decline in the third quarter of 2026?

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CBNK Delivers Strong Revenue Growth and Positive Operating Leverage

Rhea-AI Summary

Positive

Negative

News Explained

Key Figures

Historical Context

Key Terms

FAQ

What were Capital Bancorp's third-quarter 2026 earnings?

What will Capital Bancorp shareholders receive in the Peoples Bancorp merger?

When will Capital Bancorp pay its declared dividend?

Why did Capital Bancorp's deposits decline in the third quarter of 2026?

Keep reading

More on CBNK

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