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CBNK Reports 2Q ROA of 1.52% and EPS of $0.87

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Rhea-AI Summary

Capital Bancorp (NASDAQ: CBNK) reported 2Q 2026 net income of $14.3 million and diluted EPS of $0.87, up 18.6% and 19.2% from 1Q 2026, and 8.5% and 11.5% year-over-year. Return on assets was 1.52%, while return on tangible common equity reached 15.51%.

Net interest income rose to $50.9 million, with net interest margin of 5.64% including card operations. Gross loans grew to $3.1 billion, up 7.9% annualized quarter-over-quarter and 12.6% year-over-year. Total deposits increased to $3.4 billion, up 9.6% annualized from 1Q 2026 and 14.6% year-over-year, driven by strong customer deposit growth and reduced brokered balances.

Fee revenue climbed to $14.4 million, representing 22.0% of total revenue. Tangible book value per share increased to $23.45. The company declared a quarterly cash dividend of $0.14 per share, 16.7% higher than the prior payout.

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Positive

  • EPS $0.87, up 19.2% QoQ and 11.5% YoY
  • Net income $14.3m, +18.6% QoQ and +8.5% YoY
  • Gross loans $3.1b, +7.9% QoQ annualized, +12.6% YoY
  • Total deposits $3.4b, +9.6% QoQ annualized, +14.6% YoY
  • Fee revenue $14.4m, +$1.0m QoQ, +$1.3m YoY; 22.0% of revenue
  • Tangible book value/share $23.45, +14.7% QoQ annualized, +13.6% YoY
  • Noninterest expense $43.2m, down $0.5m QoQ despite growth investments
  • Dividend raised to $0.14 per share, a 16.7% increase

Negative

  • Net interest margin 5.64%, down 7 bps QoQ and 40 bps YoY
  • Six-month ROA 1.43%, down 25 bps year-over-year
  • Six-month ROTCE 14.57%, down 225 bps year-over-year
  • Six-month GAAP net income $26.3m, down 3.0% YoY
  • Provision for credit losses $3.6m, up $0.6m QoQ
  • Net charge-offs $3.8m (0.50% annualized), up from $3.0m (0.40%) in 1Q 2026
  • ACL coverage 1.76%, decreased 5 bps from March 31, 2026
  • Interest expense $19.0m, up 12.3% year-over-year

News Explained

As of June 30, the company reported roughly 1.2 billion dollars of liquidity alongside 3.8 million dollars of second-quarter net charge-offs.

The company reports its quarter ended June 30, 2026; the new balance-sheet information includes approximately $1.2 billion of total liquidity and $3.8 million of second-quarter net charge-offs, including $2.9 million from OpenSky loans.

The reported liquidity consisted of $801.6 million of available borrowing capacity and $418.3 million of cash and cash equivalents. Insured and protected deposits were approximately $2.2 billion, or 66.6% of the deposit portfolio, at quarter-end.

The allowance-for-credit-loss coverage ratio was 1.76% at June 30, down 5 basis points from March 31.

News Market Reaction – CBNK

+4.05%
13 alerts
+4.05% Session close to close
+2.8% Peak in 2 hr 6 min
$629.57M Market Cap
0.7x Rel. Volume

In the Jul 28 session, CBNK gained 4.05%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.8% during that session. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

Historical earnings event 1003569 provides an apples-to-apples comparison for this report, while the...
Analysis

Historical earnings event 1003569 provides an apples-to-apples comparison for this report, while the current release combines deposit and loan growth with higher charge-offs. Watch credit costs and year-over-year profitability.

Key Figures

ROA: 1.52% Diluted EPS: $0.87 Net income: $14.3 million +5 more
8 metrics
ROA 1.52% 2Q26; up 19 bps from 1Q26 and down 8 bps from 2Q25
Diluted EPS $0.87 2Q26; up 19.2% from 1Q26 and 11.5% from 2Q25
Net income $14.3 million 2Q26; up 18.6% from 1Q26 and 8.5% from 2Q25
Gross loan growth 7.9% annualized 2Q26 versus 1Q26
Customer deposit growth 20.3% annualized 2Q26 versus 1Q26
Fee revenue growth 29.6% annualized 2Q26
Cash dividend $0.14 per share Declared for payment August 26, 2026
Net charge-offs $3.8 million 2Q26; 0.50% of portfolio loans annualized

Previous Earnings Reports

2 past events · Latest: Jan 26 (Positive)
Same Type Pattern 2 events
Date Event Sentiment 24h Move Catalyst
Jan 26 4Q earnings report Positive +2.0% Reported record quarterly earnings, 1.71% ROA, balance-sheet growth, and a $0.12 dividend.
Apr 28 1Q earnings report Positive +7.0% Reported strong Q1 results, loan and deposit growth, higher NIM, and a $0.10 dividend.

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

Pattern Detected

Tag-specific earnings events produced positive 24-hour reactions of 2.04% and 7.04%, aligning with the positive operating results reported here.

Key Terms

roa, rotce, nim, purchase accounting accretion, +2 more
6 terms
roa financial
"ROA | 1.52% | 1.33% | 1.60%"
Return on assets (ROA) measures how efficiently a company turns what it owns—like factories, equipment, and cash—into profit, expressed as a percentage of its total assets. Investors use ROA to compare how well different companies squeeze earnings from their resources; higher ROA is like a car that gets more miles from a gallon of gas, signaling better efficiency and potentially stronger returns on investment.
View in glossary
rotce financial
"ROTCE(3) | 15.51% | 13.58% | 16.10%"
Return on Tangible Common Equity (ROTCE) measures how much profit a company generates for common shareholders using the company’s tangible equity — the book value of shareholders’ equity after subtracting intangible assets (like goodwill) and preferred stock. For investors it shows the efficiency of a company’s core, visible capital in producing earnings; like comparing how much profit a shop makes relative to the actual cash-and-inventory value a small owner has invested, it helps assess true underlying profitability and capital returns.
nim financial
"NIM | 5.64% | 5.71% | 6.04%"
NIM (net interest margin) measures the gap between the interest a bank earns on loans and other interest‑producing assets and the interest it pays to depositors and creditors, shown as a percentage of the bank’s earning assets. Think of it like a store’s markup: a wider NIM means the bank keeps more money from its core lending activity, boosting profit potential. Investors watch NIM because shifts reveal how profitable a bank’s lending is, and how sensitive that profit is to interest‑rate changes and shifts in the mix of loans versus other assets.
purchase accounting accretion financial
"Core net income excluding purchase accounting accretion ("PAA")"
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.
acl coverage ratio financial
"the ACL Coverage Ratio was 1.76%, down 5 bps"
The ACL coverage ratio compares a bank’s reserve for expected loan losses (allowance for credit losses) to the amount of loans that are past due or likely to default. It tells investors how large the lender’s “rainy-day fund” is relative to troubled loans, so a higher ratio means a bigger cushion against future write-offs and generally lower immediate risk to the bank’s capital and earnings.
common equity tier-1 capital ratio regulatory
"the Company reported a Common Equity Tier-1 capital ratio of 13.14%"
Common equity tier-1 (CET1) capital ratio measures a bank’s core capital — mainly common shares and profits the bank has kept — divided by its risk-weighted assets, which are loans and investments adjusted for how risky they are. It matters to investors because it shows how much of a cushion the bank has to absorb losses without needing outside help; think of it as how much emergency savings a household has relative to its risky monthly bills, affecting safety, dividend capacity and growth potential.

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

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Delivers Strong Balance Sheet and Revenue Growth, Positive Operating Leverage

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

  Quarter Ended % Change (Annualized) 
 (in millions, except per share data)2Q26 1Q26 2Q25 2Q26 vs 1Q26 2Q26 vs 2Q25 
 Balance Sheet Summary          
 Gross Loans (1)$3,086 $3,026 $2,740 7.9% 12.6% 
 Total Deposits3,371 3,292 2,941 9.6% 14.6% 
 Customer Deposits(2)3,140 2,989 2,671 20.3% 17.6% 
 Tangible Book Value per share(3)$23.45 $22.62 $20.64 14.7% 13.6% 


 GAAP Core(3)
 Quarter Ended Change Quarter Ended Change
(in millions, except per share data)2Q26 1Q26 2Q25 2Q26 vs 1Q26 2Q26 vs 2Q25 2Q26 1Q26 2Q25 2Q26 vs 1Q26 2Q26 vs 2Q25
Earnings Summary                   
Net Income$14.3 $12.0 $13.1 18.6% 8.5% $14.3 $12.0 $14.2 18.6% 0.3%
Earnings per share - diluted$0.87 $0.73 $0.78 19.2% 11.5% $0.87 $0.73 $0.85 19.2% 2.4%
ROA1.52% 1.33% 1.60% 19 bps (8) bps 1.52% 1.33% 1.73% 19 bps (21) bps
ROTCE(3)15.51% 13.58% 16.10% 193 bps (59) bps 15.51% 13.58% 17.39% 193 bps (188) bps
 Including Card     Excluding Card    
NIM5.64% 5.71% 6.04% (7) bps (40) bps 4.04% 4.15% 4.42% (11) bps (38) bps


  GAAP Core(3) 
  Six Months Ended Change Six Months Ended Change 
 (in millions, except per share data)2Q26 2Q25 2Q26 vs 2Q25 2Q26 2Q25 2Q26 vs 2Q25 
 Earnings Summary            
 Net Income$26.3 $27.1 (3.0)% $26.3 $29.1 (9.7)% 
 Earnings per share - diluted$1.60 $1.60 —% $1.60 $1.72 (7.0)% 
 ROA1.43% 1.68% (25) bps 1.43% 1.80% (37) bps 
 ROTCE(3)14.57% 16.82% (225) bps 14.57% 18.07% (350) bps 
  Including Card   Excluding Card   
 NIM5.68% 6.04% (36) bps 4.09% 4.39% (30) bps 

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

“The Board is very pleased that we were able to deliver another quarter of strong operating performance, highlighted by solid loan and deposit growth, diversified fee income generation, and continued growth in tangible book value per share,” said Steven J. Schwartz, Chairman of the Company. “The increase in non-interest expenses year-over-year reflects our continued investment in strategic initiatives, including our unsecured card platform, the expansion of our targeted C&I verticals, and our customer-facing and back-office technology infrastructure. We believe these investments strengthen our franchise and will continue to reduce our exposure to cyber risks, credit losses at OpenSky™, enhance our customers' experience, and, ultimately, improve our operating efficiency, all while supporting our robust, organic, long-term growth goals.”

Second Quarter 2026 Highlights

  • Continued to strengthen the funding base, with total deposits, including brokered deposits, increasing 9.6% (annualized) from 1Q 2026; Excluding a $15.0 million reduction associated with the same single customer relationship noted in 1Q 2026, total deposits grew 11.5% (annualized) while reducing brokered deposits by 23.8%
  • Sustained strong customer deposit momentum, with customer deposits increasing 20.3% (annualized) from 1Q 2026, or 27.0% (annualized) excluding the relationship referenced above
  • Generated 7.9% (annualized) growth in gross loans from 1Q 2026, driven by broad-based production across the portfolio; Through July 15th(1), loan growth totaled $159.2 million, representing an implied annualized growth rate of 10.0%
  • Continued tangible book value compounding, with tangible book value(2) per share increasing 14.7% (annualized) from 1Q 2026
  • Delivered diluted earnings per share of $0.87, up 19.2% from 1Q 2026, supported by an 18.6% increase in net income
  • Produced 29.6% (annualized) fee income growth, with contributions from nearly every major fee category, led by higher USDA volume, continued production from the new SBA team, significant growth in Windsor revenue and increased mortgage production. Fee revenue represented 22.0% of total revenue
  • Continued to execute on strategic growth initiatives while maintaining strong expense discipline, with noninterest expense remaining flat despite ongoing investments in unsecured card, card partnerships, data infrastructure and personnel
  • The Company also declared a cash dividend on its common stock of $0.14 per share, a 16.7% increase from the prior quarterly dividend. The dividend is payable on August 26, 2026 to shareholders of record on August 10, 2026.

(1) Balances through July 15th are preliminary and unaudited. They have not been subject to customary reconciliations or closing procedures and may not be indicative of final balances at quarter end.
(2) As used in this press release, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

“We continue to execute on our growth strategy across the franchise, delivering strong customer deposit growth, solid loan production and broad-based fee income expansion" said Ed Barry, CEO of the Company. "The breadth of our performance reflects the strength of our diversified business model and positions us well to continue expanding customer relationships, growing the balance sheet and delivering sustainable long-term growth."

Consolidated financial performance

Net income of $14.3 million increased $2.2 million compared to 1Q 2026, and earnings per share - diluted of $0.87 increased $0.14 per share from 1Q 2026. Net income increased $1.1 million, or 8.5%, compared to $13.1 million, or $0.78 per diluted share, for 2Q 2025. 2Q 2026 Core net income(1) of $14.3 million, or $0.87 per diluted share, increased $2.2 million, or 18.6%, from 1Q 2026 Core net income of $12.0 million, or $0.73 per diluted share. 2Q 2026 Core net income increased $0.1 million from 2Q 2025 Core net income of $14.2 million. 2Q 2026 Core net income excluding purchase accounting accretion ("PAA") was $14.0 million, an increase of $0.8 million from 2Q 2025 Core net income excluding PAA of $13.2 million.

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

Quarterly net interest income:

  • Net interest income of $50.9 million increased $1.5 million, or 3.1% (not annualized), compared to 1Q 2026, and increased $3.3 million, or 6.9%, year-over-year.
    • Interest income of $70.0 million increased $2.0 million, or 2.9% (not annualized), compared to 1Q 2026, and increased $5.4 million, or 8.3%, year-over-year. The increase from 1Q 2026 was primarily driven by a $0.9 million increase from OpenSky™ due to higher balances and higher yields, $1.0 million from the Commercial Bank driven by $0.5 million from interest bearing cash income, $0.4 million from investment securities, and $0.2 million from loan growth. The increase year-over-year was primarily driven by $3.8 million from the Commercial Bank due to strong organic loan growth, and $1.5 million from OpenSky™ due to strong growth from the unsecured loan product.
      • Interest income included $0.2 million from net PAA in 2Q 2026, compared to $0.3 million in 1Q 2026 and $0.4 million in net PAA in 2Q 2025.
    • Interest expense of $19.0 million increased $0.5 million, or 2.5% (not annualized), compared to 1Q 2026, and increased $2.1 million, or 12.3%, year-over-year. The increase of $0.5 million compared to 1Q 2026, was primarily driven by growth in the deposit portfolio, and a shift in deposit mix to money markets accounts. The increase of $2.1 million year-over-year was driven by $1.0 million from higher balances and a shift in deposit mix, $0.8 million of lower PAA, and $0.3 million of higher borrowing costs.
      • Interest expense included a $0.1 million benefit from net PAA in 2Q 2026, compared to a $0.1 million benefit in 1Q 2026. There was a $0.9 million benefit from net PAA in 2Q 2025.

Quarterly provision:

  • The 2Q 2026 provision for credit losses was $3.6 million, an increase of $0.6 million from 1Q 2026. Net charge-offs totaled $3.8 million, or 0.50% of portfolio loans (annualized), up from $3.0 million or 0.40% of portfolio loans (annualized), in 1Q 2026.
    • Net charge-offs in the quarter include $2.9 million from OpenSky™ loans and $0.9 million from Commercial Bank loans. Net charge-offs for the Commercial Bank increased $1.0 million quarter-over-quarter primarily due to a $0.7 million recovery in 1Q 2026. OpenSky™ net charge-offs amounted to $2.9 million in 2Q 2026 compared to $3.1 million in 1Q 2026.
    • At June 30, 2026, the ACL Coverage Ratio was 1.76%, down 5 bps from March 31, 2026.

Quarterly fee revenue:

  • Fee Revenue of $14.4 million increased $1.0 million, compared to 1Q 2026 and increased $1.3 million year-over-year. The increase of $1.0 million during 2Q 2026 was the result primarily of a $1.0 million increase in government loan servicing and packaging revenue (Windsor™), a $0.4 million increase in mortgage banking revenue, and a $0.3 million increase in government lending revenue, offset by a $0.3 million decrease in credit card fees and a $0.2 million decrease in loan servicing rights. The year-over-year fee revenue increase of $1.3 million was primarily due to an increase in government loan servicing and packaging revenue (Windsor™). Fee revenue mix(1) was 22.0% of total revenue for 2Q 2026, compared to 21.3% during 1Q 2026, and 21.6% during 2Q 2025.

Quarterly noninterest expense:

  • Noninterest expense of $43.2 million decreased $0.5 million compared to 1Q 2026 and increased $3.6 million compared to 2Q 2025. Core noninterest expense(2) of $43.2 million decreased $0.5 million compared to 1Q 2026 and increased $5.0 million compared to 2Q 2025. Core comparisons include:
    • The decrease of $0.5 million quarter-over-quarter was primarily driven by the following:
      • $0.8 million lower professional fees, attributable to a decrease in consulting expenses and lower audit and accounting related fees; partially offset by a $0.4 million increase in occupancy and costs associated with software upgrades.
    • Year-over-year expense growth of $5.0 million was driven by increases in professional fees associated with investments in shared services areas and OpenSky™, expense associated with headcount growth, increased occupancy and equipment costs and an increase in loan processing costs.

Quarterly income taxes:

  • Income tax expense of $4.2 million, or 22.8% of pre-tax income for 2Q 2026, increased $0.4 million from $3.9 million, or 24.3% of pre-tax income for 1Q 2026. The effective income tax rate change quarter-over-quarter primarily reflects refinement of the quarterly tax provision following an updated estimate related to the deferred tax liability associated with fixed assets acquired in the IFH acquisition.

Total assets:

Total assets of $3.9 billion at June 30, 2026 increased $81.5 million, or 8.6% (annualized) from March 31, 2026. Total assets growth year-over-year was $501.3 million, or 14.8%. The growth quarter-over-quarter, and year-over-year, was primarily driven by increases in portfolio loans, and cash balances.

Gross Loans:

  • Gross Loans of $3.1 billion at June 30, 2026 increased $59.5 million, or 7.9% (annualized), from March 31, 2026 and increased $346.1 million, or 12.6%, year-over-year.
    • Compared to March 31, 2026, growth was primarily driven by $34.8 million from commercial real estate, $10.5 million from credit cards, and $5.0 million from construction real estate.
    • Gross loan growth through July 15th(1) of $159.2 million brings year-to-date loan growth to 10.0% (annualized).
    • C&l loans, plus owner-occupied CRE loans, totaled 37.4% of total portfolio loans at June 30, 2026, 38.3% at March 31, 2026, and 37.6% at June 30, 2025.

(1) Fee revenue mix equals fee revenue divided by the sum of fee revenue and net interest income before provision for credit losses.
(2) As used in this press release, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
(3) Balances through July 15th are preliminary and unaudited. They have not been subject to customary reconciliations or closing procedures and may not be indicative of final balances at quarter end.

Deposits:

  • Total deposits of $3.4 billion at June 30, 2026 increased $79.1 million, or 9.6% (annualized), from March 31, 2026, and increased $430.4 million, or 14.6% from June 30, 2025.
      • Excluding a $72.1 million decrease in brokered time deposits, customer deposits increased $151.1 million or 20.3% (annualized), including $114.7 million of growth in customer money market deposits, $49.8 million of growth in interest-bearing demand accounts, $25.7 million of growth in noninterest-bearing deposits, and $1.6 million of growth in savings accounts, partially offset by a decrease of $40.7 million in customer time deposits.
      • The increase in total deposits of $430.4 million year-over-year was driven by $430.5 million in growth from customer money market deposits with offsetting activity across other deposit products.
      • Total deposit growth through July 15th(1) of $165.3 million brings year-to-date deposit growth to 10.0% (annualized).
    • Insured and protected(2) deposits were approximately $2.2 billion as of June 30, 2026 representing 66.6% of the Company's deposit portfolio.
    • Low interest(3) and noninterest-bearing demand deposit account ("DDA") deposits totaled $1.3 billion, or 38.9% of deposits, an increase of $77.1 million, or 25.0% (annualized) from 1Q 2026, and an increase of $142.7 million, or 12.2% year-over-year.
      • The average rate on the low interest and noninterest-bearing deposits was 0.29% for 2Q 2026, which increased 13 bps compared to 1Q 2026 and increased 15 bps year-over-year.
  • The average portfolio loans-to-deposit ratio was 94.3% for 2Q 2026, compared to 96.1% for 1Q 2026, and 96.2% for 2Q 2025.

(1) Balances through July 15th are preliminary and unaudited. They have not been subject to customary reconciliations or closing procedures and may not be indicative of final balances at quarter end.
(2) Protected deposits include deposits that are indirectly protected under the product terms.
(3) 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 $219.9 million, or 5.7% of total assets, and an effective duration of 2.5 years, with U.S. Treasury Securities representing 60% of the overall investment portfolio at June 30, 2026. The accumulated other comprehensive income (loss) on the investment securities portfolio declined $0.1 million during the quarter to $6.3 million after-tax as of June 30, 2026, which represents 1.5% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio.

Liquidity:

  • The Company maintains stable and diversified sources of contingent liquidity, generally consistent with prior quarter. Total available borrowing capacity as of June 30, 2026 was $801.6 million, compared to $809.5 million as of March 31, 2026, consisting of $699.4 million of available collateralized borrowing capacity, $96.0 million of unsecured lines of credit with other banks, and $6.2 million of unpledged investment securities available to collateralize potential additional borrowings. Including cash and cash equivalents of $418.3 million, total liquidity was approximately $1.2 billion.

Capital:

  • As of June 30, 2026, the Company reported a Common Equity Tier-1 capital ratio of 13.14% and a Tier 1 leverage ratio of 10.59%, compared to 12.92% and 10.48%, respectively, at March 31, 2026. At June 30, 2026, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
  • Shares repurchased and retired during the three months ended June 30, 2026, as part of the Company's stock repurchase program, totaled 1,213 shares at an average price of $30.03, for a total cost of $36 thousand. As of June 30, 2026, there was $12.4 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on December 31, 2026.

Financial Metrics

Net Interest Margin:

NIM of 5.64% for 2Q 2026, decreased 7 bps compared to the prior quarter, and decreased 40 bps year-over-year. Core NIM(1) of 4.04% decreased 11 bps (but decreased 9 bps when excluding PAA) compared to the prior quarter, and decreased 38 bps year-over-year. Net PAA for 2Q 2026 was 3 bps for NIM and 4 bps for Core NIM(1). The decrease quarter-over-quarter in Core NIM includes 3 bps from lower deferred origination fees and net PAA and 3 bps from one non-performing loan relationship.

  • The average yield on interest earning assets of 7.75% decreased 11 bps compared to the prior quarter and decreased 44 bps year-over-year. The decrease quarter-over-quarter was primarily due to the Commercial Bank loan portfolio. The decrease year-over-year was primarily due to the impact of changes in the rate environment to the Commercial Bank and OpenSky™ portfolios, as well as lower loan PAA for the Commercial Bank.
    • The Core Loan Yield(1) of 6.77% for 2Q 2026 decreased 16 bps compared to 1Q 2026, and decreased 37 bps year-over-year. The decrease quarter-over-quarter includes 5 bps from lower deferred origination fees and loan PAA, and 4 bps from one non-performing loan relationship. The decrease year-over-year was primarily a result of changes in the rate environment offsetting organic portfolio growth.
  • The total cost of deposits of 2.29% for 2Q 2026 decreased 5 bps compared to the prior quarter and decreased 7 bps year-over-year. The decrease quarter-over-quarter was primarily due to a shift in product mix, and the decrease year-over-year was primarily due to a shift in product mix as well as changes in the rate environment.
  • The total cost of interest-bearing deposits of 3.09% for 2Q 2026 decreased 8 bps quarter-over-quarter, and decreased 20 bps year-over-year. The decrease quarter-over-quarter was primarily due to a shift in product mix, and the decrease year-over-year was primarily due to a shift in product mix as well as changes in the rate environment.
  • Net PAA of $0.3 million, or 3 bps of NIM and 4 bps of Core NIM(1), during 2Q 2026, decreased $0.1 million from 1Q 2026 due to a loan that paid off during 1Q 2026. There was $1.3 million from net PAA during 2Q 2025.

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

Credit Metrics and Asset Quality:

Nonperforming assets were $60.8 million, or 1.56% of total assets, at June 30, 2026, an increase of $1.6 million from March 31, 2026, while remaining unchanged as a percentage of total assets. The increase in nonperforming assets from 1Q 2026 was primarily driven by a $5.3 million net increase in nonaccrual loans from the legacy CBNK portfolio, slightly offset by a $3.7 million net decrease from the acquired IFH portfolio. The legacy CBNK increase reflected $10.6 million of new nonaccruals, primarily attributable to one $9.7 million legacy bank loan relationship, partially offset by $5.3 million of nonaccrual resolutions. The acquired IFH portfolio decrease reflected $4.7 million of nonaccrual loan resolutions, partially offset by $1.0 million of new nonaccruals. Nonperforming assets increased $24.7 million or 49 bps year-over-year, mainly due to the $15.9 million increase during 3Q 2025 from two loan relationships acquired as part of the IFH transaction and the $9.7 million increase during 2Q 2026 related to the legacy bank loan relationship referenced above. At June 30, 2026, substandard loans totaled $70.6 million, or 2.3% of total portfolio loans, compared to $71.8 million, or 2.4% of total portfolio loans, at March 31, 2026 and $44.6 million, or 1.7% of total portfolio loans, at June 30, 2025. The $26.1 million year-over-year increase in substandard loans was primarily driven by $15.9 million from two loan relationships acquired as part of the IFH transaction, and $9.7 million from the legacy bank relationship that is referenced above. At June 30, 2026, special mention loans totaled $61.5 million, or 2.0% of total portfolio loans, compared to $60.3 million, or 2.0% of total portfolio loans, at March 31, 2026, and $54.2 million, or 2.0% of total portfolio loans, at June 30, 2025.

Through July 15, 2026, management did not identify any significant changes in nonperforming assets, special mention loans, or substandard loans from June 30, 2026.

Efficiency Ratio:

The efficiency ratio was 66.1% for 2Q 2026, compared to 69.6% for 1Q 2026 and 65.1% for 2Q 2025. The core efficiency ratio(1) was 66.1% for 2Q 2026, which decreased from 69.6% compared to the prior quarter, and increased from 62.8% for 2Q 2025.

Returns:

ROA was 1.52% for 2Q 2026, compared to 1.33% for 1Q 2026, and 1.60% for 2Q 2025. Core ROA(1) for 2Q 2026 was 1.52%, compared to 1.33% for 1Q 2026, and 1.73% for 2Q 2025.

  • ROE was 13.80% for 2Q 2026, compared to 12.03% for 1Q 2026, and 14.17% for 2Q 2025. Core ROE(1) was 13.80% for 2Q 2026, compared to 12.03% for 1Q 2026, and 15.33% for 2Q 2025.
  • ROTCE(1) was 15.51% for 2Q 2026, compared to 13.58% for 1Q 2026, and 16.10% for 2Q 2025. Core ROTCE(1) for 2Q 2026 was 15.51%, compared to 13.58% for 1Q 2026, and 17.39% for 2Q 2025.

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

Book Value:

Book value per common share of $25.92 at June 30, 2026, increased $0.82 when compared to March 31, 2026, and increased $3.00 when compared to June 30, 2025. Tangible book value per common share(1) increased $0.83, or 3.7% (not annualized), to $23.45 at June 30, 2026 when compared to March 31, 2026, and increased $2.81, or 13.6%, when compared to June 30, 2025.

Reportable Segments

Commercial Bank

Loan Growth – Portfolio loans(1) increased $49.0 million at June 30, 2026 compared to March 31, 2026, driven by $34.8 million from CRE, $5.0 million from construction real estate, $2.2 million from residential real estate, and $1.0 million from C&I. Portfolio loans increased $327.6 million at June 30, 2026 compared to June 30, 2025, driven by $138.3 million from C&I, $87.0 million from residential real estate, and $54.2 million from CRE. [C&I loans grew an additional 2.5% through July 15, 2026(2).] Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

(1) Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.
(2) Balances through July 15th are preliminary and unaudited. They have not been subject to customary reconciliations or closing procedures and may not be indicative of final balances at quarter end.

Net Interest Income – Interest income of $53.7 million increased $1.0 million from the prior quarter, $0.5 million from interest bearing cash income, $0.4 million from investment securities, and $0.2 million from loan growth. Interest expense of $18.9 million increased $0.4 million, driven by growth and a mix shift in the deposit portfolio.

Credit Metrics – Nonperforming assets increased 1 bp to 1.65% of total assets at June 30, 2026 compared to March 31, 2026. Total nonaccrual loans at June 30, 2026 were $57.0 million, an increase of $1.6 million or 2.8% compared to $55.4 million at March 31, 2026.

Classified and Criticized Loans – At June 30, 2026, special mention loans totaled $61.5 million, or 2.0% of total portfolio loans, compared to $60.3 million, or 2.0% of total portfolio loans, at March 31, 2026. At June 30, 2026, substandard loans totaled $70.6 million, or 2.3% of total portfolio loans, compared to $71.8 million, or 2.4% of total portfolio loans, at March 31, 2026.

OpenSky™

OpenSky™ results reflected continued loan balance growth, stable account levels, lower operating expenses and credit performance consistent with management expectations. Higher net interest income from loan growth was partially offset by lower fee revenue and a higher provision for credit losses primarily related to portfolio growth.

Accounts – During 2Q 2026, credit card accounts grew to 588.6 thousand, increasing 0.4 thousand, or 0.1% (not annualized) from March 31, 2026, and increasing 3.2 thousand, or 0.6% year-over-year.

Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $145.3 million at June 30, 2026 increased by $10.5 million, or 7.8% (not annualized), compared to March 31, 2026 and increased $14.2 million, or 10.9%, year-over-year. Deposit balances of $166.2 million at June 30, 2026 increased $0.7 million compared to March 31, 2026 and decreased $2.8 million, or 1.6% year-over-year. Gross unsecured loan balances of $51.2 million at June 30, 2026 increased $4.7 million, or 10.0% (not annualized), compared to $46.6 million at March 31, 2026, and increased $18.5 million, or 56.6% (not annualized), year-over-year. Gross secured loan balances of $96.0 million at June 30, 2026 increased $6.0 million, or 6.7% (not annualized), compared to $90.0 million at March 31, 2026, and decreased $4.0 million, or 4.0% (not annualized) year-over-year.

Net Interest Income – Interest income of $16.0 million increased $0.9 million compared to 1Q 2026, supported by higher average OpenSky™ credit card loan balances. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $137.1 million for 2Q 2026, increased $3.3 million, or 2.5% (not annualized), compared to 1Q 2026.

Fee Revenue – Total fee revenue of $4.4 million decreased $0.3 million from the prior quarter primarily driven by lower credit-card fees from the unsecured product. The decline was partially offset by continued growth in net interest income as loan balances increased.

Noninterest Expense – Total noninterest expense of $15.4 million decreased $0.8 million compared to 1Q 2026, driven by savings from professional fees, lower depreciation of capitalized assets related to OpenSky™ technology, lower data processing costs, and lower marketing spend.

OpenSky™ Credit – Portfolio credit metrics continued to be generally consistent with modeled expectations during 2Q 2026. The provision for credit losses of $4.0 million increased $1.3 million when compared to the prior quarter, primarily due to the growth of $10.5 million in the loan portfolio. Net charge-offs remained generally stable, decreasing $0.2 million to $2.9 million in 2Q 2026 from $3.1 million in 1Q 2026. 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; however, 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 $106.9 million during 2Q 2026 (46.6% growth in volume compared to 1Q 2026 on an unannualized basis), 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. Originations of loans held for sale totaled $72.9 million during 1Q 2026, with $52.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.5 million, representing a 2.85% gain on sale as a percentage of total loans sold.

Windsor Advantage™

Gross government loan servicing revenue totaled $6.6 million, including $1.3 million of Capital Bank related servicing fees, during 2Q 2026. Gross government loan servicing revenue totaled $5.6 million, including $1.3 million of Capital Bank related servicing fees, during 1Q 2026. Windsor's™ total servicing portfolio was $3.4 billion at June 30, 2026, and $3.2 billion at March 31, 2026. In 2Q 2026, Windsor processed the closing of $223.6 million of government guaranteed loans, an 84.3% increase from $121.4 million in 1Q 2026 and a 142.7% increase from $92.1 million in 2Q 2025.

 
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
              
 Quarter Ended 2Q26 vs 1Q26 2Q26 vs 2Q25
(in thousands, except per share data)June 30, 2026 March 31, 2026 June 30, 2025 $ Change % Change $ Change % Change
Earnings Summary             
Interest income$69,959  $67,970  $64,586  $1,989  2.9% $5,373  8.3%
Interest expense 19,030   18,572   16,940   458  2.5%  2,090  12.3%
Net interest income 50,929   49,398   47,646   1,531  3.1%  3,283  6.9%
Provision for credit losses 3,585   3,014   4,081   571  18.9%  (496) (12.2)%
Provision for credit losses on unfunded commitments 65   205   —   (140) (68.3)%  65  —%
Noninterest income 14,361   13,373   13,106   988  7.4%  1,255  9.6%
Noninterest expense 43,186   43,681   39,572   (495) (1.1)%  3,614  9.1%
Income before income taxes 18,454   15,871   17,099   2,583  16.3%  1,355  7.9%
Income tax expense 4,204   3,853   3,963   351  9.1%  241  6.1%
Net income$14,250  $12,018  $13,136  $2,232  18.6% $1,114  8.5%
              
Pre-tax pre-provision net revenue ("PPNR")(1)$22,104  $19,090  $21,180  $3,014  15.8% $924  4.4%
Core PPNR(1)$22,104  $19,090  $22,578  $3,014  15.8% $(474) (2.1)%
              
Common Share Data             
Earnings per share - Basic$0.87  $0.74  $0.79  $0.13  17.6% $0.08  10.1%
Earnings per share - Diluted$0.87  $0.73  $0.78  $0.14  19.2% $0.09  11.5%
Core earnings per share - Diluted(1)$0.87  $0.73  $0.85  $0.14  19.2% $0.02  2.4%
Weighted average common shares - Basic 16,288   16,345   16,584         
Weighted average common shares - Diluted 16,373   16,441   16,802         
              
Return Ratios             
Return on average assets (annualized) 1.52%  1.33%  1.60%        
Core return on average assets (annualized)(1) 1.52%  1.33%  1.73%        
Return on average equity (annualized) 13.80%  12.03%  14.17%        
Core return on average equity (annualized)(1) 13.80%  12.03%  15.33%        
Return on average tangible common equity (annualized)(1) 15.51%  13.58%  16.10%        
Core return on average tangible common equity (annualized)(1) 15.51%  13.58%  17.39%        

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

 
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)
         
  Six Months Ended    
  June 30,    
(in thousands, except per share data) 2026
 2025
 $ Change % Change
Earnings Summary        
Interest income $137,929  $127,346  $10,583  8.3%
Interest expense  37,602   33,653   3,949  11.7%
Net interest income  100,327   93,693   6,634  7.1%
Provision for credit losses  6,599   6,327   272  4.3%
Provision for credit losses on unfunded commitments  270   —   270  —%
Noninterest income  27,734   25,655   2,079  8.1%
Noninterest expense  86,867   77,625   9,242  11.9%
Income before income taxes  34,325   35,396   (1,071) (3.0)%
Income tax expense  8,057   8,328   (271) (3.3)%
Net income $26,268  $27,068  $(800) (3.0)%
         
Pre-tax pre-provision net revenue ("PPNR")(1) $41,194  $41,723  $(529) (1.3)%
Core PPNR(1) $41,194  $44,387  $(3,193) (7.2)%
         
Common Share Data        
Earnings per share - Basic $1.61  $1.63  $(0.02) (1.2)%
Earnings per share - Diluted $1.60  $1.60  $—  —%
Core earnings per share - Diluted(1) $1.60  $1.72  $(0.12) (7.0)%
Weighted average common shares - Basic  16,316   16,624     
Weighted average common shares - Diluted  16,404   16,872     
         
Return Ratios        
Return on average assets (annualized)  1.43%  1.68%    
Core return on average assets (annualized)(1)  1.43%  1.80%    
Return on average equity (annualized)  12.93%  14.85%    
Core return on average equity (annualized)(1)  12.93%  15.97%    
Return on average tangible common equity (annualized)(1)  14.57%  16.82%    
Core return on average tangible common equity (annualized)(1)  14.57%  18.07%    

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

 
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)
            
 Quarter Ended   Quarter Ended
 June 30,  March 31, December 31, September 30,
(in thousands, except per share data)2026
 2025
 % Change 2026
 2025
 2025
Balance Sheet Highlights           
Assets$3,889,938 $3,388,662 14.8% $3,808,467 $3,606,207 $3,389,442
Investment securities available-for-sale 219,947  228,923 (3.9)%  230,525  230,083  232,640
Mortgage loans held for sale 22,370  15,933 40.4%  13,739  25,828  14,146
Portfolio loans receivable(2) 3,085,950  2,739,808 12.6%  3,026,431  2,959,457  2,821,983
Allowance for credit losses 54,431  47,447 14.7%  54,680  54,660  53,045
Goodwill 25,969  22,478 15.5%  25,969  25,969  25,969
Intangible assets 14,250  15,295 (6.8)%  14,511  14,771  15,033
Deposits 3,371,103  2,940,738 14.6%  3,292,047  3,093,200  2,912,053
FHLB borrowings 50,000  22,000 127.3%  50,000  50,000  22,000
Other borrowed funds 2,062  12,062 (82.9)%  2,062  2,062  12,062
Total stockholders' equity 422,205  380,035 11.1%  408,859  401,757  394,770
Tangible common equity(1) 381,986  342,262 11.6%  368,379  361,017  353,768
            
Common shares outstanding 16,289  16,582 (1.8)%  16,286  16,373  16,589
Book value per share$25.92 $22.92 13.1% $25.10 $24.54 $23.80
Tangible book value per share(1)$23.45 $20.64 13.6% $22.62 $22.05 $21.33
Dividends per share$0.12 $0.10 20.0% $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
 Six Months Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 June 30, 2026 June 30, 2025
Interest income             
Loans, including fees$65,362 $64,186 $64,933  $60,838  $60,810  $129,548 $119,501 
Investment securities available-for-sale 1,814  1,459  1,728   1,805   1,582   3,273  3,443 
Federal funds sold and other 2,783  2,325  1,973   2,248   2,194   5,108  4,402 
Total interest income 69,959  67,970  68,634   64,891   64,586   137,929  127,346 
              
Interest expense             
Deposits 18,522  18,070  17,805   12,732   16,722   36,592  33,234 
Borrowed funds 508  502  550   139   218   1,010  419 
Total interest expense 19,030  18,572  18,355   12,871   16,940   37,602  33,653 
              
Net interest income 50,929  49,398  50,279   52,020   47,646   100,327  93,693 
Provision for credit losses 3,585  3,014  3,988   4,650   4,081   6,599  6,327 
Provision for (release of) credit losses on unfunded commitments 65  205  (29)  217   —   270  — 
Net interest income after provision for credit losses 47,279  46,179  46,320   47,153   43,565   93,458  87,366 
Noninterest income             
Service charges on deposits 409  403  371   425   262   812  520 
Credit card fees 4,395  4,692  4,837   4,509   4,298   9,087  8,020 
Mortgage banking revenue 1,960  1,556  1,960   1,927   1,754   3,516  3,585 
Government lending revenue 1,207  923  —   14   3,112   2,130  4,208 
Government loan servicing revenue 5,303  4,345  4,036   4,265   3,644   9,648  7,212 
Loan servicing rights 292  497  295   368   (590)  789  (118)
Other income (loss) 795  957  965   (440)  626   1,752  2,228 
Total noninterest income 14,361  13,373  12,464   11,068   13,106   27,734  25,655 
Noninterest expenses             
Salaries and employee benefits 20,067  20,317  17,914   17,728   18,460   40,384  36,527 
Occupancy and equipment 3,942  3,562  2,638   2,849   2,995   7,504  5,905 
Professional fees 4,125  4,965  4,294   2,131   2,422   9,090  4,534 
Data processing 7,551  7,767  7,502   7,654   7,520   15,318  14,632 
Advertising 1,816  1,466  1,398   1,714   1,371   3,282  3,150 
Loan processing 1,475  1,383  1,152   1,114   979   2,858  1,722 
Merger-related expenses —  —  —   697   1,398   —  2,664 
Operational and other card fraud related losses 690  690  750   923   933   1,380  1,836 
Regulatory assessment expenses 925  941  858   740   884   1,866  1,773 
Other operating 2,595  2,590  2,597   2,804   2,610   5,185  4,882 
Total noninterest expenses 43,186  43,681  39,103   38,354   39,572   86,867  77,625 
Income before income taxes 18,454  15,871  19,681   19,867   17,099   34,325  35,396 
Income tax expense 4,204  3,853  4,644   4,802   3,963   8,057  8,328 
Net income$14,250 $12,018 $15,037  $15,065  $13,136  $26,268 $27,068 
                         


 
Consolidated Balance Sheets
 (unaudited) (unaudited) (audited) (unaudited) (unaudited)
(in thousands, except share data)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
Assets         
Cash and due from banks$24,771  $20,182  $30,894  $25,724  $26,843 
Interest-bearing deposits at other financial institutions 393,428   379,069   224,611   163,078   247,704 
Federal funds sold 60   60   60   59   59 
Total cash and cash equivalents 418,259   399,311   255,565   188,861   274,606 
Investment securities available-for-sale 219,947   230,525   230,083   232,640   228,923 
Restricted investments 8,707   8,691   8,397   7,057   7,043 
Loans held for sale 22,370   13,739   25,828   14,146   15,933 
Portfolio loans receivable, net of deferred fees and costs 3,085,950   3,026,431   2,959,457   2,821,983   2,739,808 
Less allowance for credit losses (54,431)  (54,680)  (54,660)  (53,045)  (47,447)
Total portfolio loans held for investment, net 3,031,519   2,971,751   2,904,797   2,768,938   2,692,361 
Premises and equipment, net 17,669   17,732   15,072   15,304   14,863 
Accrued interest receivable 19,429   16,795   16,695   19,011   15,149 
Goodwill 25,969   25,969   25,969   25,969   22,478 
Intangible assets 14,250   14,511   14,771   15,033   15,295 
Loan servicing assets 1,847   1,957   1,816   2,070   2,221 
Deferred tax asset 16,504   15,187   14,992   14,885   15,667 
Bank owned life insurance 46,260   45,871   45,488   45,105   44,721 
Other assets 47,208   46,428   46,734   40,423   39,402 
Total assets$3,889,938  $3,808,467  $3,606,207  $3,389,442  $3,388,662 
          
Liabilities         
Deposits         
Noninterest-bearing$897,363  $871,677  $852,741  $857,543  $836,979 
Interest-bearing 2,473,740   2,420,370   2,240,459   2,054,510   2,103,759 
Total deposits 3,371,103   3,292,047   3,093,200   2,912,053   2,940,738 
Federal Home Loan Bank advances 50,000   50,000   50,000   22,000   22,000 
Other borrowed funds 2,062   2,062   2,062   12,062   12,062 
Accrued interest payable 6,606   8,944   8,745   8,045   8,158 
Other liabilities 37,962   46,555   50,443   40,512   25,669 
Total liabilities 3,467,733   3,399,608   3,204,450   2,994,672   3,008,627 
          
Stockholders' equity         
Common stock 163   163   164   166   166 
Additional paid-in capital 113,217   112,268   114,604   121,707   121,362 
Retained earnings 315,103   302,808   292,749   279,693   266,619 
Accumulated other comprehensive loss (6,278)  (6,380)  (5,760)  (6,796)  (8,112)
Total stockholders' equity 422,205   408,859   401,757   394,770   380,035 
Total liabilities and stockholders' equity$3,889,938  $3,808,467  $3,606,207  $3,389,442  $3,388,662 
                    

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
June 30, 2026		 Three Months Ended
March 31, 2026		 Three Months Ended
June 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$295,167 $2,646 3.60% $246,346 $2,200 3.62% $182,192 $2,065 4.55%
Federal funds sold 60  — —   60  1 6.76   59  — — 
Investment securities available-for-sale 240,102  1,814 3.03   233,165  1,459 2.54   230,317  1,582 2.76 
Restricted investments 8,701  137 6.32   8,441  124 5.96   7,038  129 7.35 
Loans held for sale 17,381  252 5.82   12,916  177 5.56   9,950  163 6.57 
Portfolio loans receivable(2)(3) 3,058,476  65,110 8.54   3,008,187  64,009 8.63   2,733,865  60,647 8.90 
Total interest earning assets 3,619,887  69,959 7.75   3,509,115  67,970 7.86   3,163,421  64,586 8.19 
Noninterest earning assets 141,624      142,697      129,112    
Total assets$3,761,511     $3,651,812     $3,292,533    
                  
Liabilities and Stockholders’ Equity                 
Interest-bearing liabilities:                 
Interest-bearing demand accounts$346,671  816 0.94  $263,645  414 0.64  $281,878  391 0.56 
Savings 17,790  70 1.58   13,701  30 0.89   13,043  16 0.49 
Money market accounts 1,315,061  10,797 3.29   1,189,642  9,479 3.23   924,784  8,022 3.48 
Time deposits 722,144  6,839 3.80   842,137  8,147 3.92   816,809  8,293 4.07 
Borrowed funds 52,062  508 3.91   52,062  502 3.91   34,062  218 2.57 
Total interest-bearing liabilities 2,453,728  19,030 3.11   2,361,187  18,572 3.19   2,070,576  16,940 3.28 
Noninterest-bearing liabilities:                 
Noninterest-bearing liabilities 51,427      64,056      45,523    
Noninterest-bearing deposits 842,312      821,267      804,639    
Stockholders’ equity 414,044      405,302      371,795    
Total liabilities and stockholders’ equity$3,761,511     $3,651,812     $3,292,533    
                  
Net interest spread    4.64%     4.67%     4.91%
Net interest income  $50,929     $49,398     $47,646  
Net interest margin(4)    5.64%     5.71%     6.04%

_______________
(1)   Annualized.
(2)   Includes nonaccrual loans.
(3)   For the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, Core Loan Yield was 6.77%, 6.93% and 7.14%, respectively.
(4)   For the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, Core Net Interest Margin was 4.04%, 4.15% and 4.42%, respectively.

  
 Six Months Ended June 30,
 2026
 2025
 Average
Outstanding
Balance		 Interest Income/
Expense		 Average
Yield/
Rate		 Average
Outstanding
Balance		 Interest Income/
Expense		 Average
Yield/
Rate(1)
 (in thousands)
Assets           
Interest earning assets:           
Interest-bearing deposits$270,892 $4,846 3.61% $192,565 $4,203 4.40%
Federal funds sold 60  1 3.36   59  1 3.42 
Investment securities available-for-sale 236,653  3,273 2.79   232,947  3,443 2.98 
Restricted investments 8,572  261 6.14   6,403  198 6.24 
Loans held for sale 15,161  429 5.71   9,654  401 8.38 
Portfolio loans receivable(1)(2) 3,033,470  129,119 8.58   2,684,263  119,100 8.95 
Total interest earning assets 3,564,808  137,929 7.80   3,125,891  127,346 8.22 
Noninterest earning assets 142,157      131,552    
Total assets$3,706,965     $3,257,443    
            
Liabilities and Stockholders’ Equity           
Interest-bearing liabilities:           
Interest-bearing demand accounts$305,388 $1,230 0.81% $262,226 $759 0.58%
Savings 15,757  100 1.28   13,123  34 0.52 
Money market accounts 1,252,698  20,276 3.26   897,532  15,421 3.46 
Time deposits 781,809  14,986 3.87   838,151  17,020 4.09 
Borrowed funds 52,062  1,010 3.91   34,062  419 2.48 
Total interest-bearing liabilities 2,407,714  37,602 3.15   2,045,094  33,653 3.32 
Noninterest-bearing liabilities:           
Noninterest-bearing liabilities 57,707      50,982    
Noninterest-bearing deposits 831,847      793,888    
Stockholders’ equity 409,697      367,479    
Total liabilities and stockholders’ equity$3,706,965     $3,257,443    
            
Net interest spread    4.65%     4.90%
Net interest income  $100,327     $93,693  
Net interest margin(3)    5.68%     6.04%

_______________
(1)   Includes nonaccrual loans.
(2)   For the six months ended June 30, 2026 and 2025, collectively. Core Loan Yield was 6.85% and 7.14%, respectively.
(3)   For the six months ended June 30, 2026 and 2025, collectively. Core Net Interest Margin was 4.09% and 4.39%, 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 June 30, 2026, March 31, 2026, and June 30, 2025.

 
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  65   —  —  —   65
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   30  —  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  67  49   7,551
Advertising  765   598  297  156   1,816
Loan processing  927   271  9  268   1,475
Merger-related expenses  —   —  —  —   —
Operational and other card fraud related losses  72   618  —  —   690
Regulatory assessment expenses  583   214  64  64   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 WindsorTM, for the three months ended June 30, 2026.

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

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

 
Segments
For the three months ended June 30, 2025
(in thousands) Commercial Bank OpenSky™ Windsor Advantage™ CBHL Consolidated
Interest income $49,929  $14,494 $— $163  $64,586 
Interest expense  16,856   —  —  84   16,940 
Net interest income  33,073   14,494  —  79   47,646 
Provision for credit losses  1,159   2,922  —  —   4,081 
Provision for credit losses on unfunded commitments  —   —  —  —   — 
Net interest income after provision  31,914   11,572  —  79   43,565 
Noninterest income          
Service charges on deposits  262   —  —  —   262 
Credit card fees  —   4,298  —  —   4,298 
Mortgage banking revenue  465   —  —  1,289   1,754 
Government lending revenue  3,112   —  —  —   3,112 
Government loan servicing revenue(1)  (1,052)  —  4,696  —   3,644 
Loan servicing rights(2)  (590)  —  —  —   (590)
Other income  349   25  —  252   626 
Total noninterest income  2,546   4,323  4,696  1,541   13,106 
Noninterest expenses          
Salaries and employee benefits  11,090   3,403  2,509  1,458   18,460 
Occupancy and equipment  1,903   573  368  151   2,995 
Professional fees  1,572   552  71  227   2,422 
Data processing  454   6,897  133  36   7,520 
Advertising  795   470  35  71   1,371 
Loan processing  650   24  54  251   979 
Merger-related expenses  1,398   —  —  —   1,398 
Operational and other card fraud related losses  100   833  —  —   933 
Regulatory assessment expenses  860   15  6  3   884 
Other operating  1,817   338  354  101   2,610 
Total noninterest expenses  20,639   13,105  3,530  2,298   39,572 
Net income (loss) before taxes $13,821  $2,790 $1,166 $(678) $17,099 
           
Total assets $3,211,421  $129,397 $25,936 $21,908  $3,388,662 

_______________
(1)  Gross government loan servicing revenue totaled $4.7 million, including $1.1 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended June 30, 2025.
(2)  Loan servicing rights of negative $0.6 million for the Commercial Bank includes a $1.1 million negative fair value adjustment associated with loan servicing portfolio.

 
Segments
For the six months ended June 30, 2026
(in thousands) Commercial Bank OpenSky™ Windsor Advantage™ CBHL Consolidated
Interest income $106,444  $31,056 $— $429  $137,929
Interest expense  37,366   —  —  236   37,602
Net interest income  69,078   31,056  —  193   100,327
Provision for (release of) credit losses  (88)  6,687  —  —   6,599
Provision for credit losses on unfunded commitments  270   —  —  —   270
Net interest income after provision  68,896   24,369  —  193   93,458
Noninterest income          
Service charges on deposits  812   —  —  —   812
Credit card fees  —   9,087  —  —   9,087
Mortgage banking revenue  694   —  —  2,822   3,516
Government lending revenue  2,130   —  —  —   2,130
Government loan servicing revenue(1)  (2,518)  —  12,166  —   9,648
Loan servicing rights (government guaranteed)  789   —  —  —   789
Other income  1,325   42  —  385   1,752
Total noninterest income  3,232   9,129  12,166  3,207   27,734
Noninterest expenses          
Salaries and employee benefits  24,138   7,679  5,289  3,278   40,384
Occupancy and equipment  4,185   2,165  783  371   7,504
Professional fees  4,701   3,089  549  751   9,090
Data processing  997   14,090  126  105   15,318
Advertising  1,483   1,190  357  252   3,282
Loan processing  2,003   318  31  506   2,858
Merger-related expenses  —   —  —  —   —
Operational and other card fraud related losses  137   1,243  —  —   1,380
Regulatory assessment expenses  1,181   429  130  126   1,866
Other operating  2,417   1,354  1,163  251   5,185
Total noninterest expenses  41,242   31,557  8,428  5,640   86,867
Net income (loss) before taxes $30,886  $1,941 $3,738 $(2,240) $34,325
           
Total assets $3,689,273  $143,716 $27,818 $29,131  $3,889,938

_______________
(1)  Gross government loan servicing revenue totaled $12.2 million, including $2.5 million of servicing fees earned from the Commercial Bank by WindsorTM, for the six months ended June 30, 2026.

 
Segments
For the six months ended June 30, 2025
(in thousands) Commercial Bank OpenSky™ Windsor Advantage™ CBHL Consolidated
Interest income $98,093  $28,938 $— $315  $127,346 
Interest expense  33,505   —  —  148   33,653 
Net interest income  64,588   28,938  —  167   93,693 
Provision for credit losses  1,605   4,722  —  —   6,327 
Provision for credit losses on unfunded commitments  —   —  —  —   — 
Net interest income after provision  62,983   24,216  —  167   87,366 
Noninterest income          
Service charges on deposits  520   —  —  —   520 
Credit card fees  —   8,020  —  —   8,020 
Mortgage banking revenue  728   —  —  2,857   3,585 
Government lending revenue  4,208   —  —  —   4,208 
Government loan servicing revenue(1)  (2,090)  —  9,302  —   7,212 
Loan servicing rights (government guaranteed)  (118)  —  —  —   (118)
Other income  1,772   36  —  420   2,228 
Total noninterest income  5,020   8,056  9,302  3,277   25,655 
Noninterest expenses          
Salaries and employee benefits  21,716   6,748  4,915  3,148   36,527 
Occupancy and equipment  3,480   1,061  1,079  285   5,905 
Professional fees  2,723   1,143  191  477   4,534 
Data processing  894   13,479  186  73   14,632 
Advertising  1,513   1,344  139  154   3,150 
Loan processing  1,127   43  61  491   1,722 
Merger-related expenses  2,664   —  —  —   2,664 
Operational and other card fraud related losses  131   1,705  —  —   1,836 
Regulatory assessment expenses  1,725   30  11  7   1,773 
Other operating  3,226   854  608  194   4,882 
Total noninterest expenses  39,199   26,407  7,190  4,829   77,625 
Net income (loss) before taxes $28,804  $5,865 $2,112 $(1,385) $35,396 
           
Total assets $3,211,421  $129,397 $25,936 $21,908  $3,388,662 

_______________
(1)  Gross government loan servicing revenue totaled $9.3 million, including $2.1 million of servicing fees earned from the Commercial Bank by WindsorTM, for the six months ended June 30, 2025.

 
HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
  Quarter Ended
(in thousands, except per share data) June 30,
2026		 March 31, 2026 December 31,
2025		 September 30,
2025		 June 30,
2025
Earnings:          
Net income $14,250  $12,018  $15,037  $15,065  $13,136 
Earnings per common share, diluted  0.87   0.73   0.91   0.89   0.78 
Net interest margin  5.64%  5.71%  5.94%  6.36%  6.04%
Core net interest margin(2)  4.04%  4.15%  4.19%  4.66%  4.42%
Return on average assets(1)  1.52%  1.33%  1.71%  1.77%  1.60%
Return on average equity(1)  13.80%  12.03%  15.23%  15.57%  14.17%
Efficiency ratio  66.14%  69.59%  62.32%  60.79%  65.14%
           
Balance Sheet:          
Total portfolio loans receivable, net deferred fees $3,085,950  $3,026,431  $2,959,457  $2,821,983  $2,739,808 
Total deposits  3,371,103   3,292,047   3,093,200   2,912,053   2,940,738 
Total assets  3,889,938   3,808,467   3,606,207   3,389,442   3,388,662 
Total stockholders' equity  422,205   408,859   401,757   394,770   380,035 
Total average portfolio loans receivable, net deferred fees  3,058,476   3,008,187   2,902,033   2,789,815   2,733,865 
Total average deposits  3,243,978   3,130,392   2,992,784   2,917,067   2,841,153 
Portfolio loans-to-deposit ratio (period-end balances)  91.54%  91.93%  95.68%  96.91%  93.17%
Portfolio loans-to-deposit ratio (average balances)  94.28%  96.10%  96.97%  95.64%  96.22%
           
Asset Quality Ratios:          
Nonperforming assets to total assets  1.56%  1.56%  1.62%  1.54%  1.07%
Nonperforming loans to total loans  1.85%  1.83%  1.84%  1.85%  1.32%
Net charge-offs to average portfolio loans(1)  0.50%  0.40%  0.32%  0.35%  0.75%
Allowance for credit losses to total loans  1.76%  1.81%  1.85%  1.88%  1.73%
Allowance for credit losses to non-performing loans  95.51%  98.67%  100.44%  101.53%  131.19%
           
Bank Capital Ratios:          
Total risk based capital ratio(3)  12.60%  12.52%  12.60%  12.95%  13.13%
Tier-1 risk based capital ratio(3)  11.34%  11.26%  11.34%  11.69%  11.87%
Leverage ratio(3)  8.97%  9.00%  9.24%  9.34%  9.39%
Common Equity Tier-1 capital ratio(3)  11.34%  11.26%  11.34%  11.69%  11.87%
Tangible common equity(3)  8.47%  8.40%  8.75%  9.06%  8.84%
Holding Company Capital Ratios:          
Total risk based capital ratio(3)  14.47%  14.25%  14.31%  15.25%  15.30%
Tier-1 risk based capital ratio(3)  13.21%  12.99%  13.05%  13.62%  13.66%
Leverage ratio(3)  10.59%  10.48%  10.71%  10.98%  10.90%
Common Equity Tier-1 capital ratio(3)  13.14%  12.92%  12.98%  13.54%  13.58%
Tangible common equity(3)  9.86%  9.73%  10.07%  10.60%  10.22%

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

 
HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (Continued)
  Quarter Ended
(in thousands, except per share data) June 30,
2026		 March 31, 2026 December 31,
2025		 September 30,
2025		 June 30,
2025
Composition of Loans:          
Commercial real estate, non owner-occupied $561,805  $522,498  $533,141  $509,878  $495,341 
Commercial real estate, owner-occupied  424,109   428,632   418,701   442,827   436,421 
Residential real estate  797,745   795,505   765,808   740,060   710,730 
Construction real estate  370,710   365,706   359,566   344,290   343,189 
Commercial and industrial  731,575   730,576   698,289   619,148   593,279 
Lender finance  50,020   43,775   41,421   31,883   32,494 
Business equity lines of credit  4,930   4,170   3,818   2,931   2,853 
Credit card, net of reserve(4)  145,266   134,789   142,397   136,483   131,029 
Other consumer loans  3,772   4,779   1,930   2,010   2,727 
Portfolio loans receivable $3,089,932  $3,030,430  $2,965,071  $2,829,510  $2,748,063 
Deferred origination fees, net  (3,982)  (3,999)  (5,614)  (7,527)  (8,255)
Portfolio loans receivable, net $3,085,950  $3,026,431  $2,959,457  $2,821,983  $2,739,808 
           
Composition of Deposits:          
Noninterest-bearing $897,363  $871,677  $852,741  $857,543  $836,979 
Interest-bearing demand  391,544   341,723   257,233   275,767   319,431 
Savings  23,077   21,471   11,679   12,835   12,879 
Money markets  1,390,778   1,276,034   1,105,183   989,159   960,237 
Customer time deposits  437,358   478,085   489,687   539,207   541,079 
Brokered time deposits  230,983   303,057   376,677   237,542   270,133 
Total deposits $3,371,103  $3,292,047  $3,093,200  $2,912,053  $2,940,738 
           
Capital Bank Home Loan Metrics:          
Origination of loans held for sale $106,885  $72,933  $107,283  $80,651  $80,334 
Mortgage loans sold  87,059   52,423   82,998   66,409   59,663 
Gain on sale of loans  2,362   1,496   2,145   1,698   1,597 
Purchase volume as a % of originations  86.14%  73.15%  72.77%  92.32%  91.61%
Gain on sale as a % of loans sold(5)  2.71%  2.85%  2.58%  2.56%  2.68%
Mortgage commissions $947  $594  $899  $656  $501 
           
OpenSky™Portfolio Metrics:          
Open customer accounts  588,594   588,190   585,492   587,641   585,372 
Secured credit card loans, gross $96,026  $90,021  $97,313  $98,793  $100,037 
Unsecured credit card loans, gross  51,234   46,574   47,131   39,576   32,715 
Noninterest secured credit card deposits  166,174   165,506   163,184   166,874   168,936 

_______________
(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 MetricsQuarter Ended
(in thousands, except per share data)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Net Income$14,250  $12,018  $15,037  $15,065  $13,136 
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax —   —   —   (3,489)  — 
Add: Merger-Related Expenses, Net of Tax —   —   —   575   1,070 
Core Net Income$14,250  $12,018  $15,037  $12,151  $14,206 
          
Weighted Average Common Shares - Diluted 16,373   16,441   16,493   16,844   16,802 
Earnings per Share - Diluted$0.87  $0.73  $0.91  $0.89  $0.78 
Core Earnings per Share - Diluted$0.87  $0.73  $0.91  $0.72  $0.85 
          
Average Assets$3,761,511  $3,651,812  $3,498,540  $3,378,296  $3,292,533 
Return on Average Assets(1) 1.52%  1.33%  1.71%  1.77%  1.60%
Core Return on Average Assets(1) 1.52%  1.33%  1.71%  1.43%  1.73%
          
Average Equity$414,044  $405,302  $391,750  $383,922  $371,795 
Return on Average Equity(1) 13.80%  12.03%  15.23%  15.57%  14.17%
Core Return on Average Equity(1) 13.80%  12.03%  15.23%  12.56%  15.33%
          
Net Interest Income$50,929  $49,398  $50,279  $52,020  $47,646 
Noninterest Income 14,361   13,373   12,464   11,068   13,106 
Total Revenue$65,290  $62,771  $62,743  $63,088  $60,752 
Noninterest Expense 43,186   43,681   39,103   38,354   39,572 
Efficiency Ratio(2) 66.1%  69.6%  62.3%  60.8%  65.1%
          
Net Interest Income$50,929  $49,398  $50,279  $52,020  $47,646 
Deduct: Income from the Call of Brokered Time Deposits —   —   —   4,618   — 
Core Net Interest Income (a)$50,929  $49,398  $50,279  $47,402  $47,646 
Noninterest Income (b) 14,361   13,373   12,464   11,068   13,106 
Core Revenue (a) + (b)$65,290  $62,771  $62,743  $58,470  $60,752 
          
Noninterest Expense$43,186  $43,681  $39,103  $38,354  $39,572 
Less: Merger-Related Expenses —   —   —   697   1,398 
Core Noninterest Expense$43,186  $43,681  $39,103  $37,657  $38,174 
Core Efficiency Ratio(2) 66.1%  69.6%  62.3%  64.4%  62.8%

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

  
Core Earnings MetricsSix Months Ended
(in thousands, except per share data)June 30, 2026 June 30, 2025
    
Net Income$26,268  $27,068 
Add: Merger-Related Expenses, Net of Tax —   2,034 
Core Net Income$26,268  $29,102 
    
Weighted Average Common Shares - Diluted 16,404   16,872 
Earnings per Share - Diluted$1.60  $1.60 
Core Earnings per Share - Diluted$1.60  $1.72 
    
Average Assets$3,706,965  $3,257,443 
Return on Average Assets(1) 1.43%  1.68%
Core Return on Average Assets(1) 1.43%  1.80%
    
Average Equity$409,697  $367,479 
Return on Average Equity(1) 12.93%  14.85%
Core Return on Average Equity(1) 12.93%  15.97%
    
Net Interest Income$100,327  $93,693 
Noninterest Income 27,734   25,655 
Total Revenue$128,061  $119,348 
Noninterest Expense 86,867   77,625 
Efficiency Ratio(2) 67.8%  65.0%
    
Net Interest Income (a)$100,327  $93,693 
Noninterest Income (b) 27,734   25,655 
Core Revenue (a) + (b)$128,061  $119,348 
    
Noninterest Expense$86,867  $77,625 
Less: Merger-Related Expenses —   2,664 
Core Noninterest Expense$86,867  $74,961 
Core Efficiency Ratio(2) 67.8%  62.8%

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

  
Core Net Interest MarginQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Net Interest Income$50,929  $49,398  $50,279  $52,020  $47,646 
Less: Credit Card Loan Income 15,808   14,882   16,196   15,386   14,116 
Net Interest Income Excluding Credit Card 35,121   34,516   34,083   36,634   33,530 
Average Interest Earning Assets 3,619,887   3,509,115   3,360,576   3,246,653   3,163,421 
Less: Average Credit Card Loans 137,052   133,712   133,858   129,100   121,414 
Average Core Interest Earning Assets$3,482,835  $3,375,403  $3,226,718  $3,117,553  $3,042,007 
Core Net Interest Margin 4.04%  4.15%  4.19%  4.66%  4.42%


Core Net Interest MarginSix Months Ended
(in thousands)June 30, 2026 June 30, 2025
    
Net Interest Income$100,327  $93,693 
Less: Credit Card Loan Income 30,690   28,264 
Core Net Interest Income 69,637   65,429 
Average Interest Earning Assets 3,564,808   3,125,891 
Less: Average Credit Card Loans 135,391   120,076 
Average Core Interest Earning Assets$3,429,417  $3,005,815 
Core Net Interest Margin 4.09%  4.39%


Core Loan YieldQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Portfolio Loans Receivable Interest Income$65,110  $64,009  $64,670  $60,610  $60,647 
Less: Credit Card Loan Income 15,808   14,882   16,196   15,386   14,116 
Core Portfolio Loans Receivable Interest Income$49,302  $49,127  $48,474  $45,224  $46,531 
Average Portfolio Loans Receivable 3,058,476   3,008,187   2,902,033   2,789,815   2,733,865 
Less: Average Credit Card Loans 137,052   133,712   133,858   129,100   121,414 
Total Core Average Portfolio Loans Receivable$2,921,424  $2,874,475  $2,768,175  $2,660,715  $2,612,451 
Core Portfolio Loans Receivable Yield 6.77%  6.93%  6.95%  6.74%  7.14%


Core Loan YieldSix Months Ended
(in thousands)June 30, 2026 June 30, 2025
    
Portfolio Loans Receivable Interest Income$129,119  $119,100 
Less: Credit Card Loan Income 30,690   28,264 
Core Portfolio Loans Receivable Interest Income$98,429  $90,836 
Average Portfolio Loans Receivable 3,033,470   2,684,263 
Less: Average Credit Card Loans 135,391   120,076 
Total Core Average Portfolio Loans Receivable$2,898,079  $2,564,187 
Core Portfolio Loans Receivable Yield 6.85%  7.14%


Pre-tax, Pre-Provision Net Revenue ("PPNR")Quarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Net Income$14,250 $12,018 $15,037  $15,065 $13,136
Add: Income Tax Expense 4,204  3,853  4,644   4,802  3,963
Add: Provision for Credit Losses 3,585  3,014  3,988   4,650  4,081
Add: Provision for (Release of) Credit Losses on Unfunded Commitments 65  205  (29)  217  —
Pre-tax, Pre-Provision Net Revenue ("PPNR")$22,104 $19,090 $23,640  $24,734 $21,180


Pre-tax, Pre-Provision Net Revenue ("PPNR")Six Months Ended
(in thousands)June 30, 2026 June 30, 2025
    
Net Income$26,268 $27,068
Add: Income Tax Expense 8,057  8,328
Add: Provision for Credit Losses 6,599  6,327
Add: Provision for Credit Losses on Unfunded Commitments 270  —
Pre-tax, Pre-Provision Net Revenue ("PPNR")$41,194 $41,723


Core PPNRQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Net Income$14,250 $12,018 $15,037  $15,065  $13,136
Add: Income Tax Expense 4,204  3,853  4,644   4,802   3,963
Add: Provision for Credit Losses 3,585  3,014  3,988   4,650   4,081
Add: Provision for (Release of) Credit Losses on Unfunded Commitments 65  205  (29)  217   —
Deduct: Income from the Call of Brokered Time Deposits —  —  —   (4,618)  —
Add: Merger-Related Expenses —  —  —   697   1,398
Core PPNR$22,104 $19,090 $23,640  $20,813  $22,578


Core PPNRSix Months Ended
(in thousands)June 30, 2026 June 30, 2025
    
Net Income$26,268 $27,068
Add: Income Tax Expense 8,057  8,328
Add: Provision for Credit Losses 6,599  6,327
Add: Provision for Credit Losses on Unfunded Commitments 270  —
Add: Merger-Related Expenses —  2,664
Core PPNR$41,194 $44,387


Allowance for Credit Losses to Total Portfolio LoansQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Allowance for Credit Losses$54,431  $54,680  $54,660  $53,045  $47,447 
Total Portfolio Loans 3,085,950   3,026,431   2,959,457   2,821,983   2,739,808 
Allowance for Credit Losses to Total Portfolio Loans 1.76%  1.81%  1.85%  1.88%  1.73%


Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio LoansQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Allowance for Credit Losses$54,431  $54,680  $54,660  $53,045  $47,447 
Less: Credit Card Allowance for Credit Losses 8,904   7,802   8,232   7,413   6,762 
Commercial Bank Allowance for Credit Losses$45,527  $46,878  $46,428  $45,632  $40,685 
Total Portfolio Loans 3,085,950   3,026,431   2,959,457   2,821,983   2,739,808 
Less: Gross Credit Card Loans 141,446   131,887   137,905   130,897   126,233 
Commercial Bank Portfolio Loans$2,944,504  $2,894,544  $2,821,552  $2,691,086  $2,613,575 
Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans 1.55%  1.62%  1.65%  1.70%  1.56%


Nonperforming Assets to Total AssetsQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Total Nonperforming Assets$60,843  $59,273  $58,276  $52,247  $36,167 
Total Assets 3,889,938   3,808,467   3,606,207   3,389,442   3,388,662 
Nonperforming Assets to Total Assets 1.56%  1.56%  1.62%  1.54%  1.07%


Nonperforming Loans to Total Portfolio LoansQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Total Nonperforming Loans$56,987  $55,417  $54,421  $52,247  $36,167 
Total Portfolio Loans 3,085,950   3,026,431   2,959,457   2,821,983   2,739,808 
Nonperforming Loans to Total Portfolio Loans 1.85%  1.83%  1.84%  1.85%  1.32%


Net Charge-Offs to Average Portfolio LoansQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Total Net Charge-Offs$3,834  $2,994  $2,373  $2,476  $5,088 
Total Average Portfolio Loans 3,058,476   3,008,187   2,902,033   2,789,815   2,733,865 
Net Charge-Offs to Average Portfolio Loans, Annualized 0.50%  0.40%  0.32%  0.35%  0.75%


    
Net Charge-offs to Average Portfolio LoansSix Months Ended
(in thousands)June 30, 2026 June 30, 2025
    
Total Net Charge-Offs$6,828  $7,532 
Total Average Portfolio Loans 3,033,470   2,684,263 
Net Charge-Offs to Average Portfolio Loans, Annualized 0.45%  0.57%


Tangible Book Value per ShareQuarter Ended
(in thousands, except share and per share data)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Total Stockholders' Equity$422,205 $408,859 $401,757 $394,770 $380,035
Less: Intangible Assets 40,219  40,480  40,740  41,002  37,773
Tangible Common Equity$381,986 $368,379 $361,017 $353,768 $342,262
Period End Shares Outstanding 16,289,288  16,286,480  16,373,288  16,589,241  16,581,990
Tangible Book Value per Share$23.45 $22.62 $22.05 $21.33 $20.64


Return on Average Tangible Common EquityQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Net Income$14,250  $12,018  $15,037  $15,065  $13,136 
Add: Intangible Amortization, Net of Tax 201   197   200   199   200 
Net Tangible Income$14,451  $12,215  $15,237  $15,264  $13,336 
Average Equity 414,044   405,302   391,750   383,922   371,795 
Less: Average Intangible Assets 40,377   40,628   40,884   37,706   39,534 
Net Average Tangible Common Equity$373,667  $364,674  $350,866  $346,216  $332,261 
Return on Average Equity 13.80%  12.03%  15.23%  15.57%  14.17%
Return on Average Tangible Common Equity 15.51%  13.58%  17.23%  17.49%  16.10%


Return on Average Tangible Common EquitySix Months Ended
(in thousands)June 30, 2026 June 30, 2025
    
Net Income$26,268  $27,068 
Add: Intangible Amortization, Net of Tax 399   399 
Net Tangible Income$26,667  $27,467 
Average Equity 409,697   367,479 
Less: Average Intangible Assets 40,502   38,232 
Net Average Tangible Common Equity$369,195  $329,247 
Return on Average Equity 12.93%  14.85%
Return on Average Tangible Common Equity 14.57%  16.82%


Core Return on Average Tangible Common EquityQuarter Ended
(in thousands)June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
          
Core Net Income$14,250  $12,018  $15,037  $12,151  $14,206 
Add: Intangible Amortization, Net of Tax 201   197   200   199   200 
Core Net Tangible Income$14,451  $12,215  $15,237  $12,350  $14,406 
Core Return on Average Tangible Common Equity 15.51%  13.58%  17.23%  14.15%  17.39%


Core Return on Average Tangible Common EquitySix Months Ended
(in thousands)June 30, 2026 June 30, 2025
    
Core Net Income$26,268  $29,102 
Add: Intangible Amortization, Net of Tax 399   399 
Core Net Tangible Income$26,667  $29,501 
Core Return on Average Tangible Common Equity 14.57%  18.07%
        

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 $3.9 billion at June 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 AdvantageTM; and other factors that may affect our future results.

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

FINANCIAL CONTACT: Jake Dalaya (301) 637-5118

MEDIA CONTACT: Ed Barry (240) 283-1912

WEB SITE: www.CapitalBankMD.com


FAQ

What were Capital Bancorp (CBNK) earnings for Q2 2026?

Capital Bancorp reported Q2 2026 net income of $14.3 million and diluted EPS of $0.87. According to the company, this represented 18.6% quarter-over-quarter net income growth and 19.2% EPS growth, with return on assets of 1.52% and return on tangible common equity of 15.51%.

How did CBNK Q2 2026 results compare to Q1 2026 and Q2 2025?

Q2 2026 diluted EPS of $0.87 increased from $0.73 in Q1 2026 and $0.78 in Q2 2025. According to Capital Bancorp, net income rose to $14.3 million from $12.0 million sequentially and $13.1 million year-over-year, while ROA was 1.52% versus 1.33% and 1.60%.

What loan and deposit growth did Capital Bancorp (CBNK) report for Q2 2026?

Capital Bancorp reported gross loans of $3.1 billion, up 7.9% annualized from Q1 2026 and 12.6% year-over-year. According to the company, total deposits reached $3.4 billion, growing 9.6% annualized quarter-over-quarter and 14.6% year-over-year, with strong customer money market and demand deposit inflows.

How did net interest margin and fee income trend for CBNK in Q2 2026?

Net interest margin was 5.64% in Q2 2026, down 7 basis points from Q1 2026 and 40 basis points year-over-year. According to Capital Bancorp, fee revenue increased to $14.4 million, up $1.0 million sequentially and $1.3 million year-over-year, representing 22.0% of total revenue.

What asset quality metrics did Capital Bancorp (CBNK) report for Q2 2026?

Capital Bancorp reported a Q2 2026 provision for credit losses of $3.6 million and net charge-offs of $3.8 million, or 0.50% of portfolio loans annualized. According to the company, the allowance for credit losses coverage ratio was 1.76%, 5 basis points lower than March 31, 2026.

Did Capital Bancorp (CBNK) increase its dividend following Q2 2026 results?

Yes. Capital Bancorp declared a quarterly cash dividend of $0.14 per share, a 16.7% increase from the prior quarterly dividend. According to the company, the dividend is payable on August 26, 2026, to shareholders of record as of August 10, 2026.

How did noninterest expense and efficiency evolve for CBNK in Q2 2026?

Noninterest expense was $43.2 million in Q2 2026, decreasing $0.5 million from Q1 2026 but rising $3.6 million year-over-year. According to Capital Bancorp, quarter-over-quarter savings were mainly from lower professional fees, partially offset by higher occupancy and software-related costs.

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