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Capital Bancorp (NASDAQ: CBNK) posts Q1 2026 results, boosts TBV and declares dividend

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8-K

Rhea-AI Filing Summary

Capital Bancorp, Inc. reported first-quarter 2026 net income of $12.0 million, down from $15.0 million in the prior quarter, with diluted EPS of $0.73 versus $0.91. Return on assets was 1.33% and return on tangible common equity was 13.58%, reflecting higher noninterest expenses and credit costs.

The balance sheet continued to expand, with gross loans of $3.0 billion, up 9.2% annualized from year-end 2025, and total deposits of $3.3 billion, up 26.1% annualized. Tangible book value per share rose to $22.62, a 14.2% increase from a year earlier, while the net interest margin was 5.71% and core net interest margin was 4.15%.

The board declared a $0.12 per share cash dividend, payable May 27, 2026 to stockholders of record on May 11, 2026. During the quarter the company repurchased $3.5 million of common stock, and capital ratios remained above regulatory requirements, including a holding company Common Equity Tier 1 ratio of 12.92% as of March 31, 2026.

Positive

  • None.

Negative

  • None.

Insights

Solid balance sheet growth offsets softer earnings from rising expenses and credit costs.

Capital Bancorp delivered strong first-quarter 2026 balance sheet expansion, with portfolio loans reaching $3.0 billion and deposits $3.3 billion. Net interest income grew 7.3% year-over-year, and fee revenue rose 6.6%, helped by SBA and government lending activity.

Earnings softened as net income declined to $12.0 million, down 20.1% from 4Q 2025 and 13.7% year-over-year. Drivers included higher provision for credit losses, elevated net charge-offs at OpenSky™, and a $4.6 million jump in noninterest expense tied to planned investments in personnel, technology, and data infrastructure.

Asset quality remained manageable, with nonperforming assets at 1.56% of total assets and an allowance for credit losses at 1.81% of portfolio loans. With tangible book value per share up 14.2% year-over-year and a Common Equity Tier 1 ratio of 12.92% at March 31, 2026, the company maintained capital flexibility while funding growth, share repurchases, and a $0.12 dividend.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income Q1 2026 $12.0M Quarter ended March 31, 2026; down 20.1% vs Q4 2025
Diluted EPS Q1 2026 $0.73 Quarter ended March 31, 2026; vs $0.91 in Q4 2025
Gross loans $3.03B As of March 31, 2026; 13.0% year-over-year growth
Total deposits $3.29B As of March 31, 2026; 13.9% year-over-year growth
Net interest margin 5.71% Q1 2026; down 23 bps vs Q4 2025
Tangible book value per share $22.62 As of March 31, 2026; up 14.2% year-over-year
Cash dividend per share $0.12 Declared for common stock; payable May 27, 2026
Share repurchases $3.5M Common stock repurchased in Q1 2026 at $28.89 average price
Net interest margin financial
"Net interest margin 5.71% for 1Q 2026, decreased 23 bps compared to the prior quarter"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Return on average tangible common equity financial
"Return on average tangible common equity (annualized) 13.58% for 1Q 2026"
A profitability ratio that shows how much profit common shareholders earn from the bank’s tangible equity — the shareholder capital left after removing goodwill, intangible assets and preferred stock — averaged over a period. Investors use it like a yield on the company’s real, hard capital to judge how efficiently management turns those tangible resources into earnings and to compare returns across banks or over time.
Allowance for credit losses financial
"Allowance for credit losses was $54,680 thousand, or 1.81% of total loans"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Nonperforming assets financial
"Nonperforming assets were $59.3 million or 1.56% of total assets at March 31, 2026"
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
Core net income financial
"1Q 2026 Core net income of $12.0 million, or $0.73 per diluted share"
Core net income is the company’s profit after taxes from its ordinary, ongoing business activities, excluding one-time gains, losses or unusual items. Think of it like a household’s regular salary minus one-off windfalls or repairs — it shows the steady earnings the business can be expected to produce. Investors use it to judge the company’s underlying performance and to compare profitability across periods without distortion from rare events.
Tangible book value per share financial
"Tangible book value per share increased to $22.62 at March 31, 2026"
Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.
Net income $12.0M -20.1% vs Q4 2025
Diluted EPS $0.73 -19.8% vs Q4 2025
Net interest income $49.4M -1.8% vs Q4 2025
Loans $3.03B +13.0% YoY
Deposits $3.29B +13.9% YoY
Understanding 8-K Material Events →
April 27, 2026false000141953600014195362026-04-272026-04-27



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 27, 2026

CAPITAL BANCORP, INC.
(Exact name of registrant as specified in its charter)
 
Maryland
001-38671
52-2083046
(State or other jurisdiction of incorporation or organization)
(Commission file number)
(IRS Employer Identification No.)
2275 Research Boulevard, Suite 600, Rockville, Maryland 20850
(Address of principal executive offices) (Zip Code)
(301) 468-8848
Registrant’s telephone number, including area code

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $0.01 per shareCBNKNASDAQ Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Disclosure
On April 27, 2026, Capital Bancorp, Inc. (the “Company”) issued a press release announcing the Company’s unaudited financial results for the three months ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and hereby incorporated by reference. A presentation regarding the Company's financial results for the three months ended March 31, 2026 is furnished as Exhibit 99.2 and incorporated herein by reference.

The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

Item 8.01. Other Events
On April 24, 2026, the Company's Board of Directors declared a $0.12 per share dividend, payable on May 27, 2026 to stockholders of record on May 11, 2026.

Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1
Press Release, dated April 27, 2026.
99.2
Investor Presentation March 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CAPITAL BANCORP, INC.                             
 
 
Date: April 27, 2026
By: /s/ Jacob Dalaya
Name: Jacob Dalaya
Title: Chief Financial Officer





3
capitalbancorplogoa21a.jpg
CBNK Continues Strong Growth With Accelerated Investment Underway
Rockville, Maryland, April 27, 2026 (GLOBE NEWSWIRE) – Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported:
Quarter Ended
% Change (Annualized)
(in millions, except per share data)1Q264Q251Q251Q26 vs 4Q251Q26 vs 1Q25
Balance Sheet Summary
Gross Loans (1)
$3,026$2,959$2,6789.2%13.0%
Total Deposits3,2923,0932,89126.1%13.9%
Customer Deposits(2)
2,9892,7172,58440.7%15.7%
Tangible Book Value per share(3)
$22.62$22.05$19.8110.5%14.2%
GAAP
Core(3)
Quarter EndedChangeQuarter EndedChange
(in millions, except per share data)1Q264Q251Q251Q26 vs 4Q251Q26 vs 1Q251Q264Q251Q251Q26 vs 4Q251Q26 vs 1Q25
Earnings Summary
Net Income$12.0$15.0$13.9(20.0)%(13.7)%$12.0$15.0$14.9(20.0)%(19.5)%
Earnings per share - diluted$0.73$0.91$0.82(19.8)%(11.2)%$0.73$0.91$0.88(19.8)%(16.9)%
ROA1.33%1.71%1.75%(38) bps(42) bps1.33%1.71%1.87%(38) bps(54) bps
ROTCE(3)
13.58%17.23%17.57%(365) bps(399) bps13.58%17.23%18.77%(365) bps(519) bps
Including CardExcluding Card
NIM5.71%5.94%6.05%(23) bps(34) bps4.15%4.19%4.36%(4) bps(21) bps
(1) Gross loans represent portfolio loans receivable, net of deferred fees and costs.
(2) Customer deposits represents total deposits excluding brokered deposits.
(3) As used in this press release, Core net income, Core earnings per share - diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.


“We are pleased that the sustained organic growth at the Commercial Bank permits us to accommodate an increase in noninterest expenses, while, at the same time, providing our stockholders with reasonable returns and a steadily growing TBV,” said Steven J. Schwartz, Chairman of the Company. “We expect these expenditures to enable technology advancements in customer experience and back office efficiency, and to support the introduction by OpenSky™ of new products. We remain alert to the possibility that the markets in which we operate remain vulnerable to disruption from geopolitical and other developments, but have not yet seen any macroeconomic signs of credit deterioration in our markets.”
First Quarter 2026 Highlights
•Delivered strong balance sheet growth, with gross loans increasing 9.2% (annualized) from 4Q 2025, driven by continued momentum in the Commercial Bank
•Generated robust deposit growth, with total deposits increasing 26.1% (annualized) from 4Q 2025. Excluding $107.8 million of deposit growth tied to a single customer relationship, total deposits grew 11.9% annualized while reducing brokered deposits by 19.5%
•Achieved strong customer deposit growth, which increased 40.7% (annualized) from 4Q 2025, or 27.0% annualized excluding the relationship noted above
•Continued tangible book value compounding, with tangible book value(3) per share increasing 10.5% annualized from 4Q 2025
•Expanded fee revenue, which increased 29.6% (annualized), primarily driven by SBA loan sales generated by a new team and increased USDA volume; fee revenue represented 21.3% of total revenue
•Advanced strategic investments in unsecured card, card partnerships, data infrastructure, and back-office support to enhance scalability and long-term growth
•Returned capital to shareholders, repurchasing $3.5 million of common stock under the Company’s share repurchase program
•The Company also declared a cash dividend on its common stock of $0.12 per share. The dividend is payable on May 27, 2026 to shareholders of record on May 11, 2026.

“We continue to demonstrate our ability to grow across the Company, highlighted by the increase in customer deposits, which positions us for continued balance sheet growth." said Ed Barry, CEO of the Company. "Our investment program is underway across the Commercial and OpenSky™ division, including technology and data initiatives that will improve our competitive position."
1
Consolidated financial performance
Net income of $12.0 million decreased $3.0 million compared to 4Q 2025, and earnings per share - diluted of $0.73 decreased $0.18 per share from 4Q 2025. Net income decreased $1.9 million, or 13.7%, from $13.9 million, or $0.82 per diluted share, for 1Q 2025. 1Q 2026 Core net income(1) of $12.0 million, or $0.73 per diluted share, decreased $3.0 million, or 20.1%, from 4Q 2025 Core net income of $15.0 million, or $0.91 per diluted share. 1Q 2026 Core net income decreased $2.9 million, or 19.3%, from 1Q 2025 core net income of $14.9 million, or $0.88 per diluted share.
Quarterly net interest income:
•Net interest income of $49.4 million decreased $0.9 million, or 1.8% (not annualized), compared to 4Q 2025, and increased $3.4 million, or 7.3%, year-over-year.
◦Interest income of $68.0 million decreased $0.7 million, or 1.0% (not annualized), compared to 4Q 2025, and increased $5.2 million, or 8.3%, year-over-year. The decrease from 4Q 2025 was primarily driven by a $1.3 million decrease from OpenSky™ due to changes in the rate environment, partially offset by a $0.7 million increase from the Commercial Bank driven by loan growth. The increase year-over-year was primarily driven by $4.6 million from the Commercial Bank due to strong balance sheet growth, and $0.6 million from OpenSky™ due to the growth from the unsecured loan product.
▪Interest income included $0.3 million from net purchase accounting accretion ("PAA") in 1Q 2026, compared to $0.1 million in 4Q 2025 and $0.3 million in net PAA in 1Q 2025.
◦Interest expense of $18.6 million increased $0.2 million, or 1.2% (not annualized), compared to 4Q 2025, and increased $1.9 million, or 11.1%, year-over-year. The increase of $0.2 million compared to 4Q 2025, was primarily driven by a shift in deposit mix. The increase of $1.9 million year-over-year was driven by $0.9 million of lower PAA, $0.7 million from a shift in deposit mix and $0.3 of million higher borrowing costs.
▪Interest expense included a $0.1 million benefit from net PAA in 1Q 2026, compared to a $0.1 million benefit in 4Q 2025. There was a $1.1 million benefit from net PAA in 1Q 2025.
Quarterly provision:
•The 1Q 2026 provision for credit losses was $3.0 million, a decrease of $1.0 million from 4Q 2025. Net charge-offs totaled $3.0 million, or 0.40% of portfolio loans (annualized), up from $2.4 million or 0.32% of portfolio loans (annualized), in 4Q 2025.
◦Net charge-offs in the quarter include $3.1 million from OpenSky™ loans and a net recovery of $0.1 million from Commercial Bank loans. Net charge-offs for the Commercial Bank decreased $2.0 million from 4Q 2025 primarily driven by $1.9 million of legacy Commercial Bank loans that were charged off during 4Q 2025. OpenSky™ net charge-offs amounted to $0.5 million in 4Q 2025 compared to a net charge-offs of $3.1 million in 1Q 2026. During 4Q 2025, a $2.0 million credit to the allowance for credit losses was made to reflect recoveries resulting from the sale of $69.5 million of charged-off OpenSky™ credit card receivables.
◦At March 31, 2026, the ACL Coverage Ratio was 1.81%, down 4 bps from December 31, 2025, and flat year-over-year.
Quarterly fee revenue:
•Fee Revenue of $13.4 million increased $0.9 million, compared to 4Q 2025 and increased $0.8 million year-over-year. The increase of $0.9 million during 1Q 2026 was primarily from a $0.9 million increase in government lending revenue with other offsetting activity. Year-over-year fee revenue increased $0.8 million primarily due to a $0.8 million increase from government loan servicing and packaging revenue (Windsor™)

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.
2
Consolidated financial performance (Continued)
with other offsetting activity. Fee revenue mix1 was 21.3% of total revenue for 1Q 2026, compared to 19.9% during 4Q 2025, and 21.4% during 1Q 2025.

Quarterly noninterest expense:
•Noninterest expense of $43.7 million increased $4.6 million compared to 4Q 2025 and increased $5.6 million compared to 1Q 2025. Core noninterest expense(1) of $43.7 million increased $4.6 million compared to 4Q 2025 and increased $6.9 million compared to 1Q 2025. Core comparisons include:
◦The increase of $4.6 million quarter-over-quarter was primarily driven by the following:
▪$2.4 million from personnel expenses, driven by planned investment and expansion in headcount;
▪$0.9 million from occupancy & equipment, driven by an increase in software contracts, acceleration of depreciation of capitalized assets related to OpenSky™ technology, and an increase in lease expenses;
▪$0.7 million from professional fees, driven by planned investment in OpenSky™ initiatives and other professional fees;
▪$0.3 million from data processing driven by OpenSky™ and other core processing costs; and
▪$0.2 million from loan processing, driven by loan expenses associated with our government guaranteed lending portfolio;
◦Year-over-year expense growth of $6.9 million was driven by professional fees associated with investments in shared services areas and OpenSky™, personnel expense due to headcount growth, growth in data processing costs from OpenSky™ and core processing for the Commercial Bank, and an increase in loan processing costs and loan expenses associated with our government guaranteed lending portfolio.
Quarterly income taxes:
•Income tax expense of $3.9 million, or 24.3% of pre-tax income for 1Q 2026, decreased $0.8 million from $4.6 million, or 23.6% of pre-tax income for 4Q 2025. The effective income tax rate change quarter-over-quarter was primarily due to certain one-time tax benefits recognized during 4Q 2025.
Total assets:
Total assets of $3.8 billion at March 31, 2026 increased $202.3 million, or 22.7% (annualized) from December 31, 2025. Total assets growth year-over-year was $458.7 million, or 13.7%. The growth quarter-over-quarter, and year-over-year, was primarily driven by increases in portfolio loans, and cash balances.
Gross Loans:
•Gross Loans of $3.0 billion at March 31, 2026 increased $67.0 million, or 9.2% (annualized), from December 31, 2025 and increased $348.0 million, or 13.0%, year-over-year.
◦Compared to December 31, 2025, growth was primarily driven by $32.3 million from commercial and industrial ("C&I"), $29.7 million from residential real estate, and $6.1 million from construction real estate. C&I contributed 48.2% of total loan growth in the quarter.
◦C&l loans, plus owner-occupied CRE loans, totaled 38.3% of total portfolio loans at March 31, 2026, 37.7% for the prior quarter, and 37.9% at March 31, 2025.

1 Fee revenue mix equals fee revenue divided by the sum of fee revenue and net interest income before provision for credit losses
3
Consolidated financial performance (Continued)
Deposits:
•Total deposits of $3.3 billion at March 31, 2026 increased $198.8 million, or 26.1% (annualized), from December 31, 2025, and increased $400.7 million, or 13.9% from March 31, 2025.
◦When excluding the decrease in brokered time deposits of $73.6 million, customer deposits increased $272.5 million or 40.7% (annualized), including $170.9 million of growth in customer money market deposits, $84.5 million of growth in interest-bearing demand accounts, $18.9 million of growth in noninterest-bearing deposits, and $9.8 million of growth in savings accounts, offset by a decrease of $11.6 million in customer time deposits.
▪The growth in the quarter includes $107.8 million of deposits tied to one customer. Excluding this relationship, total deposits increased $91.0 million, or 11.9% (annualized) and customer deposits increased $164.7 million, or 27.0% (annualized).
◦The increase in total deposits of $400.7 million year-over-year was driven by $363.6 million in growth from customer money market deposits, $59.5 million from noninterest-bearing deposits, $45.3 million from interest-bearing demand accounts, and $8.7 million from savings accounts, offset by a decrease of $71.5 million from customer time deposits, and $4.7 million from brokered time deposits.
◦Insured and protected1 deposits were approximately $2.3 billion as of March 31, 2026 representing 69.4% of the Company's deposit portfolio.
◦Low interest2 and noninterest-bearing demand deposit account ("DDA") deposits of $1.2 billion, or 37.5% of deposits, increased $113.2 million, or 40.9% (annualized) from 4Q 2025, and increased $113.4 million, or 10.1% year-over-year.
▪The growth in the quarter of low interest and noninterest-bearing DDA deposits includes $36.1 million of deposits tied to one customer, the same relationship mentioned above. Excluding this relationship, total low interest and noninterest-bearing DDA deposits increased $77.1 million, or 27.9% from 4Q 2025, and increased $77.3 million, or 27.9% year-over-year.
▪The average rate on the low interest and noninterest-bearing deposits was 0.16% for 1Q 2026, which increased 2 bps compared to 4Q 2025 and increased 1 bps year-over-year.
•The average portfolio loans-to-deposit ratio was 96.1% for 1Q 2026, compared to 97.0% for 4Q 2025, and 95.2% for 1Q 2025.
Investment securities:
•The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $230.5 million, or 6.1% of total assets, and an effective duration of 2.3 years, with U.S. Treasury Securities representing 61% of the overall investment portfolio at March 31, 2026. The accumulated other comprehensive income (loss) on the investment securities portfolio declined $0.6 million during the quarter to $(6.4) million after-tax as of March 31, 2026, which represents 1.6% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio.
Liquidity:
The Company maintains stable and diversified sources of contingent liquidity, generally consistent with prior quarter. Total available borrowing capacity as of March 31, 2026 was $809.5 million, compared to $816.9 million as of December 31, 2025, consisting of $705.3 million of available collateralized borrowing capacity, $96.0 million of unsecured lines of credit with other banks, and $8.2 million of unpledged investment securities available to collateralize potential additional borrowings.

1 Protected deposits includes deposits that are indirectly protected under the product terms.
2 Low interest deposits include interest-bearing demand and savings accounts
4
Consolidated financial performance (Continued)
Capital:
As of March 31, 2026, the Company reported a Common Equity Tier-1 capital ratio of 12.92%, compared to 12.98% at December 31, 2025. At March 31, 2026, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
Shares repurchased and retired during the three months ended March 31, 2026, as part of the Company's stock repurchase program, totaled 122,757 shares at an average price of $28.89, for a total cost of $3.5 million. The share repurchases consisted of $0.9 million under the Company's previous stock repurchase program, which expired on February 28, 2026, and $2.6 million under the new stock repurchase program. As of March 31, 2026, there was $12.4 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on December 31, 2026.
5
Financial Metrics
Net Interest Margin:
NIM of 5.71% for 1Q 2026, decreased 23 bps compared to the prior quarter, and decreased 34 bps year-over-year. Core NIM(1) of 4.15% decreased 4 bps (but decreased 7 bps when excluding PAA) compared to the prior quarter, and decreased 21 bps year-over-year. Net PAA for 1Q 2026 was 5 bps for NIM and 5 bps for Core NIM(1).
•The average yield on interest earning assets of 7.86% decreased 24 bps compared to the prior quarter and decreased 38 bps year-over-year. The decreases quarter-over-quarter and year-over-year were primarily due to OpenSky™ as a result of changes in the rate environment.
◦The Core Loan Yield(1) of 6.93% for 1Q 2026 decreased 2 bps compared to 4Q 2025, and decreased 21 bps year-over-year. The decrease year-over-year was primarily a result of changes in the rate environment.
•The total cost of deposits of 2.34% for 1Q 2026 decreased 2 bps compared to the prior quarter and decreased 8 bps year-over-year. The decrease year-over-year was primarily a result of a shift in the product mix of the portfolio, and changes in the rate environment.
•The total cost of interest-bearing deposits of 3.17% for 1Q 2026 decreased 11 bps quarter-over-quarter, and decreased 20 bps year-over-year. The decreases quarter-over-quarter and year-over-year were due to a shift in product mix as well as changes in the rate environment.
•Net PAA of $0.4 million, or 5 bps of NIM and 5 bps of Core NIM(1), during 1Q 2026, increased $0.2 million from 4Q 2025 mainly due to a loan payoff during the quarter. There was $1.4 million from net PAA during 1Q 2025.

Credit Metrics and Asset Quality:
Nonperforming assets were $59.3 million or 1.56% of total assets at March 31, 2026, an increase of $1.0 million but a decrease of 6 bps compared to December 31, 2025. The increase in nonperforming assets from 4Q 2025 was primarily driven by a $0.8 million increase from the legacy CBNK portfolio and a $0.2 million increase from the acquired IFH portfolio. Nonperforming assets increased $16.3 million or 28 bps year-over-year, mainly due to the $15.9 million increase during 3Q 2025 from two loan relationships acquired as part of the IFH transaction. At March 31, 2026, substandard loans totaled $71.8 million, or 2.4% of total portfolio loans, compared to $58.5 million, or 2.0% of total portfolio loans, at December 31, 2025 and $45.7 million, or 1.7% of total portfolio loans, at March 31, 2025. The increase from December 31, 2025 of $13.3 million was primarily driven by one legacy bank loan relationship, with three loans accounting for $9.7 million of the increase quarter-over-quarter. The $26.1 million year-over-year increase in substandard loans was primarily driven by $15.9 million from the two loan relationships acquired as part of the IFH transaction, and the one legacy bank relationship accounting for $9.7 million. At March 31, 2026, special mention loans totaled $60.3 million, or 2.0% of total portfolio loans, compared to $57.9 million, or 2.0% of total portfolio loans, at December 31, 2025, and $63.0 million, or 2.4% of total portfolio loans, at March 31, 2025.
Efficiency Ratio:
The efficiency ratio was 69.6% for 1Q 2026, compared to 62.3% for 4Q 2025 and 64.9% for 1Q 2025. The core efficiency ratio(1) was 69.6% for 1Q 2026, which increased from 62.3% compared to the prior quarter, and increased from 62.8% for 1Q 2025.
1 As used in this press release, Core NIM, Core Loan Yield, and Core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
6
Financial Metrics (Continued)
Returns:
ROA was 1.33% for 1Q 2026, compared to 1.71% for 4Q 2025, and 1.75% for 1Q 2025. Core ROA(1) for 1Q 2026 was 1.33%, compared to 1.71% for 4Q 2025, and 1.87% for 1Q 2025.
•ROE was 12.03% for 1Q 2026, compared to 15.23% for 4Q 2025, and 15.56% for 1Q 2025. Core ROE(1) was 12.03% for 1Q 2026, compared to 15.23% for 4Q 2025, and 16.64% for 1Q 2025.
•ROTCE(1) was 13.58% for 1Q 2026, compared to 17.23% for 4Q 2025, and 17.57% for 1Q 2025. Core ROTCE(1) for 1Q 2026 was 13.58%, compared to 17.23% for 4Q 2025, and 18.77% for 1Q 2025.
Book Value:
Book value per common share of $25.10 at March 31, 2026, increased $0.57 when compared to December 31, 2025, and increased $2.91 when compared to March 31, 2025. Tangible book value per common share(1) increased $0.57, or 2.6% (not annualized), to $22.62 at March 31, 2026 when compared to December 31, 2025, and increased $2.81, or 14.2%, when compared to March 31, 2025.

1 As used in this press release, Core ROA, Core ROE, ROTCE, Core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
7
Reportable Segments
Commercial Bank
Loan Growth – Portfolio loans(1) increased $73.0 million at March 31, 2026 compared to December 31, 2025, driven by $32.3 million from C&I, $29.7 million from residential real estate, and $6.1 million from construction real estate. Portfolio loans increased $330.6 million at March 31, 2026 compared to March 31, 2025, driven by $136.2 million from C&I, $101.9 million from residential real estate, and $46.1 million from CRE. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.
Net Interest Income – Interest income of $52.7 million increased $0.7 million from the prior quarter, $0.5 million of which was due to growth in the Commercial Bank loan portfolio and $0.2 million of which was from higher loan PAA. Interest expense of $18.5 million increased $0.2 million, primarily due to a mix shift in the deposit portfolio.
Credit Metrics – Nonperforming assets decreased 7 bps to 1.64% of total assets at March 31, 2026 compared to December 31, 2025. Total nonaccrual loans at March 31, 2026 were $55.4 million, an increase of $1.0 million or 1.8% compared to $54.4 million at December 31, 2025.
Classified and Criticized Loans – At March 31, 2026, special mention loans totaled $60.3 million, or 2.0% of total portfolio loans, compared to $57.9 million, or 2.0% of total portfolio loans, at December 31, 2025. At March 31, 2026, substandard loans totaled $71.8 million, or 2.4% of total portfolio loans, compared to $58.5 million, or 2.0% of total portfolio loans, at December 31, 2025.

OpenSky™
Accounts – During 1Q 2026, credit card accounts grew to 588.2 thousand, increasing 2.7 thousand, or 0.5% (not annualized) from December 31, 2025, and increasing 24.5 thousand, or 4.3% year-over-year.
Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $134.8 million at March 31, 2026 decreased by $7.6 million, or 5.3% (not annualized), compared to December 31, 2025 and increased $16.1 million, or 13.5%, year-over-year. Deposit balances of $165.5 million at March 31, 2026 increased $2.3 million compared to December 31, 2025 and decreased $3.3 million, or 1.9% year-over-year. Gross unsecured loan balances of $46.6 million at March 31, 2026 decreased $0.6 million, or 1.2% (not annualized), compared to $47.1 million at December 31, 2025, and increased $19.9 million year-over-year. Gross secured loan balances of $90.0 million at March 31, 2026 decreased $7.3 million, or 7.5% (not annualized), compared to $97.3 million at December 31, 2025, and decreased $3.5 million, or 3.8% (not annualized) year-over-year.
Net Interest Income – Interest income of $15.1 million decreased $1.3 million compared to 4Q 2025. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $133.7 million for 1Q 2026, decreased $0.1 million, or 0.1% (not annualized), compared to 4Q 2025.
Fee Revenue – Total fee revenue of $4.7 million decreased $0.1 million from the prior quarter primarily driven by lower interchange and other credit-card related fees.
Noninterest Expense – Total noninterest expense of $16.2 million increased $1.6 million compared to 4Q 2025, driven by professional fees associated with the legacy and unsecured products, investment in headcount for initiatives, the acceleration of depreciation of capitalized assets related to OpenSky™ technology, and data processing costs.
OpenSky™ Credit – Portfolio credit metrics continued to be consistent with modeled expectations during 1Q 2026. The provision for credit losses of $2.7 million increased $1.4 million when compared to the prior quarter, primarily due to a $2.0 million credit in 4Q 2025 to the allowance for credit losses that was made to reflect the debt sale. Excluding this item in 4Q 2025, the provision for credit losses would have decreased $0.6 million primarily due to lower balances in the loan portfolio. OpenSky's™ unsecured loan product is offered exclusively to current and former secured card customers. Unsecured loans have been offered by OpenSky™ since the fourth quarter of 2021 and have generally performed in alignment with management expectations over that time period.
(1) Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.
8

Capital Bank Home Loans
Originations of loans held for sale totaled $72.9 million during 1Q 2026, with $52.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.5 million, representing a 2.85% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $107.3 million during 4Q 2025, with $83.0 million of mortgage loans sold resulting in a gain on sale of loans of $2.1 million, representing a 2.58% gain on sale as a percentage of total loans sold.
Windsor Advantage™
Gross government loan servicing revenue totaled $5.6 million, including $1.3 million of Capital Bank related servicing fees, during 1Q 2026. Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of Capital Bank related servicing fees, during 4Q 2025. Windsor's™ total servicing portfolio was $3.2 billion at March 31, 2026, and $3.1 billion at December 31, 2025.
9
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
Quarter Ended1Q26 vs 4Q251Q26 vs 1Q25
(in thousands, except per share data)March 31, 2026December 31, 2025March 31, 2025$ Change% Change$ Change% Change
Earnings Summary
Interest income$67,970 $68,634 $62,760 $(664)(1.0)%$5,210 8.3 %
Interest expense18,572 18,355 16,713 217 1.2 %1,859 11.1 %
Net interest income49,398 50,279 46,047 (881)(1.8)%3,351 7.3 %
Provision for credit losses3,014 3,988 2,246 (974)(24.4)%768 34.2 %
Provision for (release of) credit losses on unfunded commitments205 (29)— 234 (806.9)%205 — %
Noninterest income13,373 12,464 12,549 909 7.3 %824 6.6 %
Noninterest expense43,681 39,103 38,053 4,578 11.7 %5,628 14.8 %
Income before income taxes15,871 19,681 18,297 (3,810)(19.4)%(2,426)(13.3)%
Income tax expense3,853 4,644 4,365 (791)(17.0)%(512)(11.7)%
Net income$12,018 $15,037 $13,932 $(3,019)(20.1)%$(1,914)(13.7)%
Pre-tax pre-provision net revenue ("PPNR") (1)
$19,090 $23,640 $20,543 $(4,550)(19.2)%$(1,453)(7.1)%
Core PPNR(1)
$19,090 $23,640 $21,809 $(4,550)(19.2)%$(2,719)(12.5)%
Common Share Data
Earnings per share - Basic$0.74 $0.91 $0.84 $(0.17)(18.7)%$(0.10)(11.9)%
Earnings per share - Diluted$0.73 $0.91 $0.82 $(0.18)(19.8)%$(0.09)(11.0)%
Core earnings per share - Diluted(1)
$0.73 $0.91 $0.88 $(0.18)(19.8)%$(0.15)(17.0)%
Weighted average common shares - Basic16,345 16,493 16,666 
Weighted average common shares - Diluted16,441 16,493 16,925 
Return Ratios
Return on average assets (annualized)1.33 %1.71 %1.75 %
Core return on average assets (annualized)(1)
1.33 %1.71 %1.87 %
Return on average equity (annualized)12.03 %15.23 %15.56 %
Core return on average equity (annualized)(1)
12.03 %15.23 %16.64 %
Return on average tangible common equity (annualized)(1)
13.58 %17.23 %17.57 %
Core return on average tangible common equity (annualized)(1)
13.58 %17.23 %18.77 %
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
10
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)
Quarter EndedQuarter Ended
March 31,December 31,September 30,June 30,
(in thousands, except per share data)20262025% Change202520252025
Balance Sheet Highlights
Assets$3,808,467 $3,349,805 13.7 %$3,606,207 $3,389,442 $3,388,662 
Investment securities available-for-sale230,525 213,452 8.0 %230,083 232,640 228,923 
Mortgage loans held for sale13,739 30,005 (54.2)%25,828 14,146 15,933 
Portfolio loans receivable (2)
3,026,431 2,678,406 13.0 %2,959,457 2,821,983 2,739,808 
Allowance for credit losses54,680 48,454 12.8 %54,660 53,045 47,447 
Goodwill25,969 24,085 7.8 %25,969 25,969 22,478 
Intangible assets14,511 15,556 (6.7)%14,771 15,033 15,295 
Deposits3,292,047 2,891,333 13.9 %3,093,200 2,912,053 2,940,738 
FHLB borrowings 50,000 22,000 127.3 %50,000 22,000 22,000 
Other borrowed funds2,062 12,062 (82.9)%2,062 12,062 12,062 
Total stockholders' equity408,859 369,577 10.6 %401,757 394,770 380,035 
Tangible common equity (1)
368,379 329,936 11.7 %361,017 353,768 342,262 
Common shares outstanding16,286 16,657 (2.2)%16,373 16,589 16,582 
Book value per share$25.10 $22.19 13.1 %$24.54 $23.80 $22.92 
Tangible book value per share (1)
$22.62 $19.81 14.2 %$22.05 $21.33 $20.64 
Dividends per share
$0.12 $0.10 20.0 %$0.12 $0.12 $0.10 
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Loans are reflected net of deferred fees and costs.
11
Consolidated Statements of Income (Unaudited)
Three Months Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Interest income
Loans, including fees$64,186 $64,933 $60,838 $60,810 $58,691 
Investment securities available-for-sale1,459 1,728 1,805 1,582 1,861 
Federal funds sold and other2,325 1,973 2,248 2,194 2,208 
Total interest income67,970 68,634 64,891 64,586 62,760 
Interest expense
Deposits18,070 17,805 12,732 16,722 16,512 
Borrowed funds502 550 139 218 201 
Total interest expense18,572 18,355 12,871 16,940 16,713 
Net interest income49,398 50,279 52,020 47,646 46,047 
Provision for credit losses3,014 3,988 4,650 4,081 2,246 
Provision for (release of) credit losses on unfunded commitments205 (29)217 — — 
Net interest income after provision for credit losses46,179 46,320 47,153 43,565 43,801 
Noninterest income
Service charges on deposits403 371 425 262 258 
Credit card fees4,692 4,837 4,509 4,298 3,722 
Mortgage banking revenue1,556 1,960 1,927 1,754 1,831 
Government lending revenue923 — 14 3,112 1,096 
Government loan servicing revenue4,345 4,036 4,265 3,644 3,568 
Loan servicing rights497 295 368 (590)472 
Other income (loss)957 965 (440)626 1,602 
Total noninterest income13,373 12,464 11,068 13,106 12,549 
Noninterest expenses
Salaries and employee benefits20,317 17,914 17,728 18,460 18,067 
Occupancy and equipment3,562 2,638 2,849 2,995 2,910 
Professional fees4,965 4,294 2,131 2,422 2,112 
Data processing7,767 7,502 7,654 7,520 7,112 
Advertising1,466 1,398 1,714 1,371 1,779 
Loan processing1,383 1,152 1,114 979 743 
Merger-related expenses— — 697 1,398 1,266 
Operational and other card fraud related losses690 750 923 933 903 
Regulatory assessment expenses941 858 740 884 889 
Other operating2,590 2,597 2,804 2,610 2,272 
Total noninterest expenses43,681 39,103 38,354 39,572 38,053 
Income before income taxes15,871 19,681 19,867 17,099 18,297 
Income tax expense3,853 4,644 4,802 3,963 4,365 
Net income$12,018 $15,037 $15,065 $13,136 $13,932 
12
Consolidated Balance Sheets
(unaudited)(audited)(unaudited)(unaudited)(unaudited)
(in thousands, except share data)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Assets
Cash and due from banks$20,182 $30,894 $25,724 $26,843 $27,836 
Interest-bearing deposits at other financial institutions379,069 224,611 163,078 247,704 266,092 
Federal funds sold60 60 59 59 59 
Total cash and cash equivalents399,311 255,565 188,861 274,606 293,987 
Investment securities available-for-sale230,525 230,083 232,640 228,923 213,452 
Restricted investments8,691 8,397 7,057 7,043 7,031 
Loans held for sale13,739 25,828 14,146 15,933 30,005 
Portfolio loans receivable, net of deferred fees and costs3,026,431 2,959,457 2,821,983 2,739,808 2,678,406 
   Less allowance for credit losses(54,680)(54,660)(53,045)(47,447)(48,454)
Total portfolio loans held for investment, net2,971,751 2,904,797 2,768,938 2,692,361 2,629,952 
Premises and equipment, net17,732 15,072 15,304 14,863 15,085 
Accrued interest receivable16,795 16,695 19,011 15,149 19,458 
Goodwill25,969 25,969 25,969 22,478 24,085 
Intangible assets14,511 14,771 15,033 15,295 15,556 
Loan servicing assets1,957 1,816 2,070 2,221 2,244 
Deferred tax asset15,187 14,992 14,885 15,667 15,902 
Bank owned life insurance45,871 45,488 45,105 44,721 44,335 
Other assets46,428 46,734 40,423 39,402 38,713 
Total assets$3,808,467 $3,606,207 $3,389,442 $3,388,662 $3,349,805 
Liabilities
Deposits
Noninterest-bearing$871,677 $852,741 $857,543 $836,979 $812,224 
Interest-bearing2,420,370 2,240,459 2,054,510 2,103,759 2,079,109 
Total deposits3,292,047 3,093,200 2,912,053 2,940,738 2,891,333 
Federal Home Loan Bank advances50,000 50,000 22,000 22,000 22,000 
Other borrowed funds2,062 2,062 12,062 12,062 12,062 
Accrued interest payable8,944 8,745 8,045 8,158 9,995 
Other liabilities46,555 50,443 40,512 25,669 44,838 
Total liabilities3,399,608 3,204,450 2,994,672 3,008,627 2,980,228 
Stockholders' equity
Common stock163 164 166 166 167 
Additional paid-in capital112,268 114,604 121,707 121,362 123,476 
Retained earnings302,808 292,749 279,693 266,619 255,141 
Accumulated other comprehensive loss(6,380)(5,760)(6,796)(8,112)(9,207)
Total stockholders' equity408,859 401,757 394,770 380,035 369,577 
Total liabilities and stockholders' equity$3,808,467 $3,606,207 $3,389,442 $3,388,662 $3,349,805 
13
The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.
Three Months Ended
March 31, 2026		Three Months Ended
December 31, 2025		Three Months Ended
March 31, 2025
Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
Average
Outstanding
Balance		Interest Income/
Expense
Average
Yield/
Rate(1)
(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits$246,346 $2,200 3.62 %$196,281 $1,868 3.78 %$203,053 $2,138 4.27 %
Federal funds sold60 1 6.76 60 1 6.61 58 1 6.99 
Investment securities available-for-sale233,165 1,459 2.54 238,295 1,728 2.88 235,605 1,861 3.20 
Restricted investments8,441 124 5.96 6,725 104 6.14 5,761 69 4.86 
Loans held for sale 12,916 177 5.56 17,118 263 6.10 9,356 238 10.32 
Portfolio loans receivable(2)(3)
3,008,187 64,009 8.63 2,902,033 64,670 8.84 2,634,110 58,453 9.00 
Total interest earning assets3,509,115 67,970 7.86 3,360,512 68,634 8.10 3,087,943 62,760 8.24 
Noninterest earning assets142,697 138,028 134,021 
Total assets
$3,651,812 $3,498,540 $3,221,964 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts$263,645 414 0.64 $269,342 366 0.54 $242,355 368 0.62 
Savings13,701 30 0.89 12,033 11 0.36 13,204 18 0.55 
Money market accounts1,189,642 9,479 3.23 1,061,293 9,124 3.41 869,978 7,399 3.45 
Time deposits842,137 8,147 3.92 812,186 8,304 4.06 859,729 8,727 4.12 
Borrowed funds52,062 502 3.91 46,497 550 4.69 34,062 201 2.39 
Total interest-bearing liabilities2,361,187 18,572 3.19 2,201,351 18,355 3.31 2,019,328 16,713 3.36 
Noninterest-bearing liabilities:
Noninterest-bearing liabilities64,056 67,509 56,503 
Noninterest-bearing deposits821,267 837,930 783,018 
Stockholders’ equity
405,302 391,750 363,115 
Total liabilities and stockholders’ equity$3,651,812 $3,498,540 $3,221,964 
Net interest spread4.67 %4.79 %4.88 %
Net interest income$49,398 $50,279 $46,047 
Net interest margin(4)
5.71 %5.94 %6.05 %
_______________
(1)Annualized.
(2)Includes nonaccrual loans.
(3)For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, collectively, Core Loan Yield was 6.93%, 6.95% and 7.14%, respectively.
(4)For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, collectively, Core Net Interest Margin was 4.15%, 4.19% and 4.36%, respectively.

14
The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, OpenSky™ (the Company’s credit card division), Windsor Advantage™ and Capital Bank Home Loans (the Company’s mortgage loan division).

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

Segments
For the three months ended March 31, 2026
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income$52,732 $15,061 $— $177 $67,970 
Interest expense18,472 — — 100 18,572 
Net interest income34,260 15,061 — 77 49,398 
Provision for credit losses344 2,670 — — 3,014 
Provision for credit losses on unfunded commitments205 — — — 205 
Net interest income after provision33,711 12,391 — 77 46,179 
Noninterest income
Service charges on deposits403 — — — 403 
Credit card fees— 4,692 — — 4,692 
Mortgage banking revenue416 — — 1,140 1,556 
Government lending revenue923 — — — 923 
Government loan servicing revenue(1)
(1,262)— 5,607 — 4,345 
Loan servicing rights497 — — — 497 
Other income707 12 — 238 957 
Total noninterest income1,684 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 equipment1,870 1,118 392 182 3,562 
Professional fees2,468 1,861 278 358 4,965 
Data processing545 7,107 59 56 7,767 
Advertising718 592 60 96 1,466 
Loan processing1,076 47 22 238 1,383 
Merger-related expenses— — — — — 
Operational and other card fraud related losses65 625 — — 690 
Regulatory assessment expenses598 215 66 62 941 
Other operating1,140 715 605 130 2,590 
Total noninterest expenses20,570 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.
15
Segments
For the three months ended December 31, 2025
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income(2)
$51,994 $16,377 $— $263 $68,634 
Interest expense(3)
18,230 — — 125 18,355 
Net interest income33,764 16,377 — 138 50,279 
Provision for credit losses2,715 1,273 — — 3,988 
Release of credit losses on unfunded commitments(29)— — — (29)
Net interest income after provision31,078 15,104 — 138 46,320 
Noninterest income
Service charges on deposits371 — — — 371 
Credit card fees— 4,837 — — 4,837 
Mortgage banking revenue433 — — 1,527 1,960 
Government lending revenue— — — — — 
Government loan servicing revenue(1)
(952)— 4,988 — 4,036 
Loan servicing rights295 — — — 295 
Other income698 10 — 257 965 
Total noninterest income845 4,847 4,988 1,784 12,464 
Noninterest expenses
Salaries and employee benefits
11,071 3,038 2,425 1,380 17,914 
Occupancy and equipment1,773 688 40 137 2,638 
Professional fees3,047 947 53 247 4,294 
Data processing1,026 6,687 (165)(46)7,502 
Advertising608 634 (3)159 1,398 
Loan processing101 475 163 413 1,152 
Merger-related expenses— — — — — 
Operational and other card fraud related losses13 737 — — 750 
Regulatory assessment expenses230 388 143 97 858 
Other operating639 966 763 229 2,597 
Total noninterest expenses18,508 14,560 3,419 2,616 39,103 
Net income (loss) before taxes$13,415 $5,391 $1,569 $(694)$19,681 
Total assets$3,407,326 $140,914 $25,993 $31,974 $3,606,207 
________________________
(1)     Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended December 31, 2025.

16
Segments
For the three months ended March 31, 2025
(in thousands)Commercial Bank
OpenSky™
Windsor Advantage™
CBHLConsolidated
Interest income$48,164 $14,444 $— $152 $62,760 
Interest expense16,649 — — 64 16,713 
Net interest income31,515 14,444 — 88 46,047 
Provision for credit losses446 1,800 — — 2,246 
Provision for credit losses on unfunded commitments— — — — — 
Net interest income after provision31,069 12,644 — 88 43,801 
Noninterest income
Service charges on deposits258 — — — 258 
Credit card fees— 3,722 — — 3,722 
Mortgage banking revenue263 — — 1,568 1,831 
Government lending revenue1,096 — — — 1,096 
Government loan servicing revenue(1)
(1,038)— 4,606 — 3,568 
Loan servicing rights472 — — — 472 
Non-recurring equity and debt investment write-down— — — — — 
Other income1,423 11 30 139 1,603 
Total noninterest income2,474 3,733 4,636 1,707 12,550 
Noninterest expenses
Salaries and employee benefits
10,626 3,345 2,406 1,690 18,067 
Occupancy and equipment1,577 488 711 134 2,910 
Professional fees1,151 591 120 250 2,112 
Data processing440 6,582 53 37 7,112 
Advertising718 874 104 83 1,779 
Loan processing477 19 7 240 743 
Merger-related expenses1,266 — — — 1,266 
Operational and other card fraud related losses31 872 — — 903 
Regulatory assessment expenses865 15 5 4 889 
Other operating1,409 516 254 93 2,272 
Total noninterest expenses18,560 13,302 3,660 2,531 38,053 
Net income (loss) before taxes$14,983 $3,075 $976 $(736)$18,298 
Total assets$3,192,327 $119,636 $23,750 $14,092 $3,349,805 
________________________
(1)     Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended March 31, 2025.


17

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
Quarter Ended
(in thousands, except per share data)March 31,
2026		December 31, 2025September 30,
2025		June 30,
2025		March 31,
2025
Earnings:
Net income$12,018 $15,037 $15,065 $13,136 $13,932 
Earnings per common share, diluted0.73 0.91 0.89 0.78 0.82 
Net interest margin5.71 %5.94 %6.36 %6.04 %6.05 %
Core net interest margin(2)
4.15 %4.19 %4.66 %4.42 %4.36 %
Return on average assets(1)
1.33 %1.71 %1.77 %1.60 %1.75 %
Return on average equity(1)
12.03 %15.23 %15.57 %14.17 %15.56 %
Efficiency ratio69.59 %62.32 %60.79 %65.14 %64.94 %
Balance Sheet:
Total portfolio loans receivable, net deferred fees$3,026,431 $2,959,457 $2,821,983 $2,739,808 $2,678,406 
Total deposits3,292,047 3,093,200 2,912,053 2,940,738 2,891,333 
Total assets3,808,467 3,606,207 3,389,442 3,388,662 3,349,805 
Total stockholders' equity408,859 401,757 394,770 380,035 369,577 
Total average portfolio loans receivable, net deferred fees3,008,187 2,902,033 2,789,815 2,733,865 2,634,110 
Total average deposits3,130,392 2,992,784 2,917,067 2,841,153 2,768,284 
Portfolio loans-to-deposit ratio (period-end balances)91.93 %95.68 %96.91 %93.17 %92.64 %
Portfolio loans-to-deposit ratio (average balances)96.10 %96.97 %95.64 %96.22 %95.15 %
Asset Quality Ratios:
Nonperforming assets to total assets1.56 %1.62 %1.54 %1.07 %1.28 %
Nonperforming loans to total loans1.83 %1.84 %1.85 %1.32 %1.60 %
Net charge-offs to average portfolio loans (1)
0.40 %0.32 %0.35 %0.75 %0.38 %
Allowance for credit losses to total loans1.81 %1.85 %1.88 %1.73 %1.81 %
Allowance for credit losses to non-performing loans98.67 %100.44 %101.53 %131.19 %112.86 %
Bank Capital Ratios:
Total risk based capital ratio12.52 %12.60 %12.95 %13.13 %12.93 %
Tier-1 risk based capital ratio11.26 %11.34 %11.69 %11.87 %11.67 %
Leverage ratio9.00 %9.24 %9.34 %9.39 %9.27 %
Common Equity Tier-1 capital ratio11.26 %11.34 %11.69 %11.87 %11.67 %
Tangible common equity8.40 %8.75 %9.06 %8.84 %8.66 %
Holding Company Capital Ratios:
Total risk based capital ratio14.25 %14.31 %15.25 %15.30 %14.97 %
Tier-1 risk based capital ratio12.99 %13.05 %13.62 %13.66 %13.32 %
Leverage ratio10.48 %10.71 %10.98 %10.90 %10.68 %
Common Equity Tier-1 capital ratio12.92 %12.98 %13.54 %13.58 %13.24 %
Tangible common equity9.73 %10.07 %10.60 %10.22 %9.94 %
_______________
(1)Annualized.
(2)Refer to Appendix for reconciliation of non-GAAP measures.

18

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (Continued)
Quarter Ended
(in thousands, except per share data)March 31,
2026		December 31, 2025September 30,
2025		June 30,
2025		March 31,
2025
Composition of Loans:
Commercial real estate, non owner-occupied$522,498 $533,141 $509,878 $495,341 $484,399 
Commercial real estate, owner-occupied428,632 418,701 442,827 436,421 420,643 
Residential real estate795,505 765,808 740,060 710,730 693,597 
Construction real estate365,706 359,566 344,290 343,189 343,280 
Commercial and industrial730,576 698,289 619,148 593,279 594,331 
Lender finance43,775 41,421 31,883 32,494 23,165 
Business equity lines of credit4,170 3,818 2,931 2,853 3,468 
Credit card, net of reserve(3)
134,789 142,397 136,483 131,029 118,709 
Other consumer loans4,779 1,930 2,010 2,727 2,200 
Portfolio loans receivable$3,030,430 $2,965,071 $2,829,510 $2,748,063 $2,683,792 
Deferred origination fees, net(3,999)(5,614)(7,527)(8,255)(5,386)
Portfolio loans receivable, net$3,026,431 $2,959,457 $2,821,983 $2,739,808 $2,678,406 
Composition of Deposits:
Noninterest-bearing$871,677 $852,741 $857,543 $836,979 $812,224 
Interest-bearing demand341,723 257,233 275,767 319,431 296,455 
Savings21,471 11,679 12,835 12,879 12,819 
Money markets1,276,034 1,105,183 989,159 960,237 912,418 
Customer time deposits478,085 489,687 539,207 541,079 549,630 
Brokered time deposits303,057 376,677 237,542 270,133 307,787 
Total deposits$3,292,047 $3,093,200 $2,912,053 $2,940,738 $2,891,333 
Capital Bank Home Loan Metrics:
Origination of loans held for sale$72,933 $107,283 $80,651 $80,334 $65,815 
Mortgage loans sold52,423 82,998 66,409 59,663 54,144 
Gain on sale of loans1,496 2,145 1,698 1,597 1,664 
Purchase volume as a % of originations73.15 %72.77 %92.32 %91.61 %90.73 %
Gain on sale as a % of loans sold(4)
2.85 %2.58 %2.56 %2.68 %3.07 %
Mortgage commissions$594 $899 $656 $501 $545 
OpenSky™ Portfolio Metrics:
Open customer accounts588,190 585,492 587,641 585,372 563,718 
Secured credit card loans, gross$90,021 $97,313 $98,793 $100,037 $93,570 
Unsecured credit card loans, gross46,574 47,131 39,576 32,715 26,670 
Noninterest secured credit card deposits165,506 163,184 166,874 168,936 168,796 
_______________
(3)Credit card loans are presented net of reserve for interest and fees.
(4)Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.
19

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.
20

Appendix

Reconciliation of Non-GAAP Measures




Core Earnings MetricsQuarter Ended
(in thousands, except per share data)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Net Income$12,018 $15,037 $15,065 $13,136 $13,932 
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax— — (3,489)— — 
Add: Merger-Related Expenses, Net of Tax— — 575 1,070 964 
Core Net Income$12,018 $15,037 $12,151 $14,206 $14,896 
Weighted Average Common Shares - Diluted16,441 16,493 16,844 16,802 16,925 
Earnings per Share - Diluted$0.73 $0.91 $0.89 $0.78 $0.82 
Core Earnings per Share - Diluted$0.73 $0.91 $0.72 $0.85 $0.88 
Average Assets$3,651,812 $3,498,540 $3,378,296 $3,292,533 $3,221,964 
Return on Average Assets(1)
1.33 %1.71 %1.77 %1.60 %1.75 %
Core Return on Average Assets(1)
1.33 %1.71 %1.43 %1.73 %1.87 %
Average Equity$405,302 $391,750 $383,922 $371,795 $363,115 
Return on Average Equity(1)
12.03 %15.23 %15.57 %14.17 %15.56 %
Core Return on Average Equity(1)
12.03 %15.23 %12.56 %15.33 %16.64 %
Net Interest Income$49,398 $50,279 $52,020 $47,646 $46,047 
Noninterest Income13,373 12,464 11,068 13,106 12,549 
Total Revenue$62,771 $62,743 $63,088 $60,752 $58,596 
Noninterest Expense43,681 39,103 38,354 39,572 38,053 
Efficiency Ratio(2)
69.6 %62.3 %60.8 %65.1 %64.9 %
Net Interest Income$49,398 $50,279 $52,020 $47,646 $46,047 
Deduct: Income from the Call of Brokered Time Deposits— — 4,618 — — 
Core Net Interest Income (a)$49,398 $50,279 $47,402 $47,646 $46,047 
Noninterest Income13,373 12,464 11,068 13,106 12,549 
Core Fee Revenue (b)$13,373 $12,464 $11,068 $13,106 $12,549 
Core Revenue (a) + (b)$62,771 $62,743 $58,470 $60,752 $58,596 
Noninterest Expense$43,681 $39,103 $38,354 $39,572 $38,053 
Less: Merger-Related Expenses— — 697 1,398 1,266 
Core Noninterest Expense$43,681 $39,103 $37,657 $38,174 $36,787 
Core Efficiency Ratio(2)
69.6 %62.3 %64.4 %62.8 %62.8 %
_______________
(1)Annualized.
(2)The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).

21

Appendix

Reconciliation of Non-GAAP Measures



Core Net Interest MarginQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Net Interest Income$49,398 $50,279 $52,020 $47,646 $46,047 
Less: Credit Card Loan Income14,882 16,196 15,386 14,116 14,147 
Core Net Interest Income34,516 34,083 36,634 33,530 31,900 
Average Interest Earning Assets3,509,115 3,360,576 3,246,653 3,163,421 3,087,943 
Less: Average Credit Card Loans133,712 133,858 129,100 121,414 118,723 
Average Core Interest Earning Assets$3,375,403 $3,226,718 $3,117,553 $3,042,007 $2,969,220 
Core Net Interest Margin4.15%4.19%4.66%4.42%4.36%
Core Loan YieldQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Portfolio Loans Receivable Interest Income$64,009 $64,670 $60,610 $60,647 $58,453 
Less: Credit Card Loan Income14,882 16,197 15,387 14,116 14,148 
Core Portfolio Loans Receivable Interest Income$49,127 $48,473 $45,223 $46,531 $44,305 
Average Portfolio Loans Receivable3,008,187 2,902,033 2,789,815 2,733,865 2,634,110 
Less: Average Credit Card Loans133,712 133,858 129,100 121,414 118,723 
Total Core Average Portfolio Loans Receivable$2,874,475 $2,768,175 $2,660,715 $2,612,451 $2,515,387 
Core Portfolio Loans Receivable Yield6.93%6.95%6.74%7.14%7.14%
Pre-tax, Pre-Provision Net Revenue ("PPNR")Quarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Net Income
$12,018 $15,037 $15,065 $13,136 $13,932 
Add: Income Tax Expense3,853 4,644 4,802 3,963 4,365 
Add: Provision for Credit Losses3,014 3,988 4,650 4,081 2,246 
Add: Provision for (Release of) Credit Losses on Unfunded Commitments205 (29)217 — — 
Pre-tax, Pre-Provision Net Revenue ("PPNR")$19,090 $23,640 $24,734 $21,180 $20,543 
22

Appendix

Reconciliation of Non-GAAP Measures



Core PPNRQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Net Income
$12,018 $15,037 $15,065 $13,136 $13,932 
Add: Income Tax Expense3,853 4,644 4,802 3,963 4,365 
Add: Provision for Credit Losses3,014 3,988 4,650 4,081 2,246 
Add: Provision for (Release of) Credit Losses on Unfunded Commitments205 (29)217 — — 
Deduct: Income from the Call of Brokered Time Deposits— — (4,618)— — 
Add: Merger-Related Expenses— — 697 1,398 1,266 
Add: Non-Recurring Equity and Debt Investment Write-Down— — — — — 
Core PPNR$19,090 $23,640 $20,813 $22,578 $21,809 
Allowance for Credit Losses to Total Portfolio LoansQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Allowance for Credit Losses$54,680 $54,660 $53,045 $47,447 $48,454 
Total Portfolio Loans3,026,431 2,959,457 2,821,983 2,739,808 2,678,406 
Allowance for Credit Losses to Total Portfolio Loans1.81%1.85%1.88%1.73%1.81%

Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio LoansQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Allowance for Credit Losses$54,680 $54,660 $53,045 $47,447 $48,454 
Less: Credit Card Allowance for Credit Losses7,802 8,232 7,413 6,762 5,905 
Commercial Bank Allowance for Credit Losses$46,878 $46,428 $45,632 $40,685 $42,549 
Total Portfolio Loans3,026,431 2,959,457 2,821,983 2,739,808 2,678,406 
Less: Gross Credit Card Loans131,887 137,905 130,897 126,233 115,991 
Commercial Bank Portfolio Loans$2,894,544 $2,821,552 $2,691,086 $2,613,575 $2,562,415 
Commercial Bank Allowance for Credit Losses to Total Portfolio Loans1.62%1.65%1.70%1.56%1.67%

Nonperforming Assets to Total AssetsQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Total Nonperforming Assets$59,273 $58,276 $52,247 $36,167 $42,934 
Total Assets3,808,467 3,606,207 3,389,442 3,388,662 3,349,805 
Nonperforming Assets to Total Assets1.56%1.62%1.54%1.07%1.28%


Nonperforming Loans to Total Portfolio LoansQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Total Nonperforming Loans$55,417 $54,421 $52,247 $36,167 $42,934 
Total Portfolio Loans3,026,431 2,959,457 2,821,983 2,739,808 2,678,406 
Nonperforming Loans to Total Portfolio Loans1.83%1.84%1.85%1.32%1.60%

23

Appendix

Reconciliation of Non-GAAP Measures




Net Charge-Offs to Average Portfolio LoansQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Total Net Charge-Offs$2,994 $2,373 $2,476 $5,088 $2,444 
Total Average Portfolio Loans3,008,187 2,902,033 2,789,815 2,733,865 2,634,110 
Net Charge-Offs to Average Portfolio Loans, Annualized0.40%0.32%0.35%0.75%0.38%

Tangible Book Value per ShareQuarter Ended
(in thousands, except share and per share data)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Total Stockholders' Equity$408,859 $401,757 $394,770 $380,035 $369,577 
Less: Intangible Assets
40,480 40,740 41,002 37,773 39,641 
Tangible Common Equity$368,379 $361,017 $353,768 $342,262 $329,936 
Period End Shares Outstanding16,286,480 16,373,288 16,589,241 16,581,990 16,657,168 
Tangible Book Value per Share$22.62 $22.05 $21.33 $20.64 $19.81 


Return on Average Tangible Common EquityQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Net Income
$12,018 $15,037 $15,065 $13,136 $13,932 
Add: Intangible Amortization, Net of Tax197 200 199 200 199 
Net Tangible Income$12,215 $15,237 $15,264 $13,336 $14,131 
Average Equity405,302 391,750 383,922 371,795 363,115 
Less: Average Intangible Assets40,628 40,884 37,706 39,534 36,896 
Net Average Tangible Common Equity$364,674 $350,866 $346,216 $332,261 $326,219 
Return on Average Equity12.03 %15.23 %15.57 %14.17 %15.56 %
Return on Average Tangible Common Equity13.58 %17.23 %17.49 %16.10 %17.57 %

Core Return on Average Tangible Common EquityQuarter Ended
(in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Core Net Income$12,018 $15,037 $12,151 $14,206 $14,896 
Add: Intangible Amortization, Net of Tax197 200 199 200 199 
Core Net Tangible Income$12,215 $15,237 $12,350 $14,406 $15,095 
Core Return on Average Tangible Common Equity13.58 %17.23 %14.15 %17.39 %18.77 %

24

ABOUT CAPITAL BANCORP, INC.
Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in four locations in the Washington, D.C., Baltimore, other Maryland markets, one bank branch in Fort Lauderdale, Florida, one bank branch in Chicago, Illinois and one bank branch in Raleigh, North Carolina. Capital Bancorp had assets of approximately $3.8 billion at March 31, 2026 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company's website www.CapitalBankMD.com under its investor relations page.
FORWARD-LOOKING STATEMENTS
This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” "optimistic," “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company's Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.

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

25
1Q 2026 Investor Overview

 

Forward Looking Statements This presentation 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 presentation may turn out to be inaccurate. The inclusion of forward-looking information in this presentation should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company's Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: the strength of the United States (“U.S.”) economy in general and the strength of the local economies in which we conduct operations; geopolitical concerns, including acts or threats of terrorism and the ongoing wars in Israel, Iran and Ukraine; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; changes in U.S. trade policies, including the implementation of tariffs and other protectionist trade policies; the effects of federal government shutdowns, debt ceiling standoff, or other fiscal policy uncertainty; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them; climate change, and other catastrophic disasters; the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; the Company’s ability to remediate the material weakness in the Company’s internal control over financial reporting; the effect of the IFH acquisition or any other acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations, including the planned growth of Windsor AdvantageTM; and other factors that may affect our future results. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof. Certain of the information contained herein may be derived from information provided by industry sources. The Company believes that such information is accurate and that the sources from which it has been obtained are reliable. The Company cannot guarantee the accuracy of such information, however, and has not independently verified such information. While the Company is not aware of any misstatements regarding the industry data presented in this presentation, the Company’s estimates involve risks and uncertainties and are subject to change based on various factors. Similarly, the Company believes that its internal research is reliable, even though such research has not been verified by independent sources. Non-U.S. GAAP Financial Measures This presentation may include certain non–U.S. generally accepted accounting principles ("GAAP") financial measures intended to supplement, not substitute for, comparable GAAP measures. These non-GAAP financial measures should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the Company's non-GAAP financial measures as tools for comparison. If included in this presentation, see the Appendix to this presentation for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures. Core Financial Measures As used in this presentation, core net income, core fee revenue, core ROA, core ROE, ROTCE, core ROTCE, Core NIM, Core Loan Yield, Commercial Bank ACL Coverage Ratio, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non-GAAP measures to their comparable GAAP measures are set forth in the Appendix to this presentation. 2

 

CBNK Continued Strong Growth With Accelerated Investment Underway (1) Performance metrics and growth rates are annualized throughout this presentation unless otherwise noted (2) Excluding $107.8 million of deposit growth tied to a single customer relationship, total deposits grew 11.9%. Customer deposits grew 27.0% excluding the growth from this relationship. (3) Refer to Appendix for reconciliation of non-GAAP measures  Loan growth of $67.0mm, 9.2%  Deposit growth of $198.8mm, 26.1%(2)  Customer Deposit growth of 40.7%(2), while reducing brokered deposits by 19.5%  NIM of 5.71%; Core NIM(3) of 4.15%  Fee Revenue growth of $0.9mm, or 29.6%  ROA of 1.33%; ROTCE of 13.37%  Tangible Book Value per share of $22.62, an increase of 10.5%  Repurchased $3.5mm of common shares under the Company’s stock repurchase plan  Advanced strategic investments in OpenSkyTM unsecured card, OpenSkyTM card partnerships, data infrastructure, and back-office support to enhance scalability and long-term growth Q1 2026 Highlights(1) Net Income $12.0mm Loan Growth 9.2% Deposit Growth(2) 26.1% ROA 1.33% ROTCE 13.37% Q1 2026 3

 

Capital Bancorp, Inc. (NASDAQ-CBNK) Financial Highlights Corporate Timeline Founded as Harbor Capital National Bank Recapitalized by investor group led by Stephen Ashman Acquired three failed institutions including OpenSky® CEO Ed Barry joined Capital Bank Assets exceed $1 billion Successful IPO and inclusion in R2000 OpenSky® accounts exceed 168,000 1999 2002 2011 2012 2017 2018 Originated $371 million SBA-PPP loans (2020 & 2021) 2020 Assets exceed $2 billion OpenSky® accounts exceed 700,000 Dividend initiated 2021 (1) Performance metrics are annualized throughout this presentation (2) Refer to Appendix for reconciliation of non-GAAP measures Assets exceed $3.2 billion Capital Bank completes acquisition of IFH 2024 4 (in millions except per share data) Balance Sheet 1Q26 4Q25 Annualized 1Q25 YoY Assets $ 3,808 $ 3,606 22.7% $ 3,350 13.7% Portfolio Loans 3,026 2,959 9.2% 2,678 13.0% Deposits 3,292 3,093 26.1% 2,891 13.9% Quarterly Financial Performance(1) 1Q26 4Q25  QoQ 1Q25  YoY Earnings per Share, Diluted 0.73$ 0.91$ -19.8% 0.82$ -11.2% Core Earnings per Share, Diluted(2) 0.73$ 0.91$ -19.8% 0.88$ -16.9% Book Value per Share 25.10$ 24.54$ 2.3% 22.19$ 13.1% Tangible Book Value per Share(2) 22.62$ 22.05$ 2.6% 19.81$ 14.2% Return on Average Assets (“ROA”) 1.33% 1.71% -38 bps 1.75% -42 bps Core ROA(2) 1.33% 1.71% -38 bps 1.88% -54 bps Return on Average Tangible Common Equity (“ROTCE”)(2) 13.58% 17.23% -365 bps 17.57% -399 bps Core ROTCE(2) 13.58% 17.23% -365 bps 18.77% -519 bps Efficiency Ratio 69.59% 62.32% 727 bps 64.94% 465 bps Core Efficiency Ratio(2) 69.59% 62.32% 727 bps 62.78% 681 bps Net Interest Margin 5.71% 5.94% -23 bps 6.05% -34 bps Core Net Interest Margin(2) 4.15% 4.19% -4 bps 4.36% -21 bps

 

$3.2Bn Q1 ‘26 Servicing Portfolio $5.6mm Q1 ‘26 Revenue3 • Loan service provider that offers community banks and credit unions with a comprehensive outsourced U.S. Small Business Association (“SBA”) 7(a) and U.S. Department of Agriculture (“USDA”) lending platform • Servicing portfolio complements USDA / SBA gain on sale revenue within commercial bank • Poised to benefit from higher industry-wide SBA volumes Q1 2026 5 CBNK Business Model is Uniquely Diversified Source: Company Documents. Note: CBNK financial metrics as of March 31, 2026 unless otherwise stated. 1 Volume in FY 2021 was approximately $1.0 billion and volume in FY 2022 was approximately $300 million. 2 Credit card loans are presented net of reserve for interest and fees. 3 Includes $1.3 million of Capital Bank related servicing fees 4 Excludes $1.8 million loss in Capital Bank Home Loans, $1.4 of net income in Church Street Capital and $0.2mm of other income. 5 Excludes $1.3 million of net loss in Capital Bank Home Loans. Commercial Bank OpenSky Windsor Advantage Commercial Banking Government Guaranty Lending (GGL) • Nationwide GGL business with niche expertise in Solar and Renewable Energy • Strong C&I pipeline with proven ability to originate $150+ million per year of loans $2.9Bn Portfolio Gross Loans, ex. OpenSky $2.8Bn Customer Deposits • Focused on our core markets and filling out our national deposit vertical strategy • High value-added services and targeted vertical expertise generates above-average risk-adjusted loan yields • The Commercial Banking division operates within a corridor extending from Raleigh, North Carolina to Delaware, with six full-service banking locations, four of which are in the DMV Metropolitan Statistical Area (“MSA”), and its locations in Ft. Lauderdale, Florida in the Miami Metro Area MSA, and in Chicago, Illinois in the Chicago MSA $35.9mm Q1‘26 Revenue Fully-Allocated Illustrative Net Income Contribution 5 $72.9mm Q1 ‘26 Volume1 $1.5mm Q1 ‘26 Revenue • Nationwide lender, primarily mortgage banking; Certain retained loans within DMV area • Gain on sale margin returning to normalized levels; Well-positioned for stabilization or decline in rates • Expense management delivering profitability on a marginal basis while maintaining robust origination capabilities • Natural hedge against modest structural asset sensitivity of the balance sheet $166mm Deposits $135mm Loans, net2 • Nationwide, secured credit card to help under-banked customers (re)establish their credit with opportunities for graduation into unsecured credit • Building capabilities to cross-sell products and services as card-holders progress on their customer journeys • Extend unsecured to graduating customers and starting to build capabilities around a straight to unsecured product $19.8mm Q1’26 Revenue Capital Bank Home Loans OpenSky Windsor Advantage FY 2023 4

 

Financial Information

 

Net Interest Income and Margin $ in th ou sa nd s 7 (1) Refer to Appendix for reconciliation of non-GAAP measures. (2) Total net interest income includes negligible net interest income from CBHL Loan Yield and Deposit Rate Trends Cumulative Downcycle Betas (3) Deposit betas are cumulative for the current cycle easing rate cycle (since August 2024); Interest-bearing Deposit Betas include Brokered CD’s (4) Loan yields and deposit rate trends include net purchase accounting adjustments Note: 3Q 2025 includes the $4.6 million (56 bps of NIM or 59 bps of Core NIM) Call of Brokered Time Deposits and $1.3 million (16 bps of NIM or 17 bps of Core NIM) Interest Income Adjustment. Excluding these items, 3Q 2025 NIM would have been 5.96% and Core NIM would have been 4.24%. Net PAA Contribution to Core NIM $1.4mm or 19bps $1.3mm or 16bps $0.9mm or 11bps $0.2mm or 2bps $0.4mm or 5bps

 

Core Fee Revenue $ in th ou sa nd s 8 (1) Other includes a $2.6mm non-recurring legacy IFH equity and debt investment write-down during 4Q24, excluded in core revenue. $3,733 $4,323 $4,476 $4,847 $4,704 $1,736 $1,541 $1,762 $1,784 $1,378 $1,378 $(566) $(509) $845 $761 $1,096 $3,112 $923 $4,606 $4,696 $5,339 $4,988 $5,607 21.4% 21.6% 18.9% 19.9% 21.3% 1Q25 2Q25 3Q25 4Q25 1Q26 OpenSky CBHL Commercial Bank GGL Windsor Advantage Other(1) Core Fee Revenue as a % of Total Core Revenue

 

Noninterest Expense $ in th ou sa nd s 9 Note: Other expense includes loan processing expense, outside service providers expense, regulatory expense, office expense and other operational losses Refer to Appendix for reconciliation of Core, non-GAAP measures.  Advanced strategic investments in OpenSkyTM unsecured card, OpenSkyTM card partnerships, data infrastructure, and back-office support to enhance scalability and long-term growth  Continued investment in planned headcount growth across the Company

 

Profitability(1) 10 (1) Annualized Note: Refer to Appendix for reconciliation of Core, non-GAAP measures.

 

Balance Sheet Composition Commentary • Gross loan growth of $67.0 million, or 9.2% (annualized), during 1Q26. • Compared to December 31, 2025, growth was primarily driven by $32.3 million from commercial and industrial ("C&I"), $29.7 million from residential real estate, and $6.1 million from construction real estate. • C&I contributed 48.2% of total loan growth in the quarter. • C&l loans, plus owner-occupied CRE loans, totaled 38.3% of total portfolio loans at March 31, 2026, 37.7% for the prior quarter, and 37.9% at March 31, 2025. 11 (1) Other is comprised of lender finance of $43.8 million, business equity lines of credit of $4.2 million, other consumer loans of $4.8 million and deferred origination fees, net of $4.0 million. Note: Portfolio loans are presented net of deferred fees and costs of $4.0 million. Credit Card loans are presented net of reserve for interest and fees. C&I + OO-CRE represents 38% of total Portfolio Loans Cash & Cash Equivalents 11% Portfolio Loans 79% AFS Securities Portfolio 6% Other Assets 4% Asset Composition 1Q26 Total Assets: $3.8B

 

Composition of Deposits Commentary • Total deposits increased $198.8 million, or 26.1% (annualized) from 4Q25; Excluding $107.8 million of deposit growth tied to a single customer relationship, total deposits increased $91.0 million or 11.9% annualized • Reduced brokered deposits by 19.5% • Average portfolio loans-to-deposit ratio of 92.0%. • The total cost of deposits of 2.34% for 1Q 2026 increased 2 bps compared to the prior quarter and decreased 8 bps year-over-year. • The total cost of interest-bearing deposits decreased 10 bps quarter-over-quarter, and decreased 20 bps year-over-year, to 3.17% for 1Q 2026. • Insured and protected deposits were approximately $2.3 billion as of March 31, 2026 representing 69.4% of the Company's deposit portfolio. 12 (1) Annualized (in thousands) Deposits: Balance % of Total Deposits Average Rate(1) Noninterest-bearing 871,677$ 26.5% 0.00% Interest-bearing demand 341,723 10.4% 0.64% Savings 21,471 0.7% 0.89% Money markets 1,276,034 38.8% 3.23% Time deposits 781,142 23.7% 3.92% Total deposits 3,292,048$ 100.0% 2.34% As of or For the Three Months Ended March 31, 2026

 

Investment Portfolio and Liquidity Investment Securities Portfolio • Classified as available for sale with a fair market value of $230.5 million, or 6.1% of total assets, with an effective duration of 2.3 years. • U.S. Treasuries represent 61% of the overall investment portfolio. • The accumulated other comprehensive loss on the investment securities portfolio of $6.4 million represents 1.6% of total stockholders’ equity and $0.39 of TBVPS. • The Company does not have a held to maturity investment securities portfolio. 13 High Quality, Low Risk Investment Portfolio Sources of Liquidity at March 31, 2026: • $705 million of collateralized lines of credit include: • $580 million of available borrowing capacity from the FHLB. • $125 million of available borrowing capacity from the Federal Reserve Bank of Richmond’s discount window. • Available lines of credit with other correspondent banks totaled $96 million. • Unpledged investment securities available as collateral for potential additional borrowings totaled $8.2 million. $ in m illi on s Significant Liquidity Capacity

 

Credit Metrics 14 (1) Refer to Appendix for reconciliation of non-GAAP measures.

 

Robust Capital Ratios 15 Note: Ratios presented are for Capital Bank unless otherwise noted

 

Share Appreciation Outperforms Industry 16 Share Price Change Since CBNK IPO on 9/26/20181TBVPS + Dividend Growth Since 2018Q3 58.48% (60%) (40%) (20%) 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% 90%+ Outperformance vs. both groups 125%+ Outperformance vs. both groups Source: S&P Global Market Intelligence; FactSet. Note: Market data as of 4/22/2026. 1 CBNK IPO price of $12.50 used as starting price for price change calculation. 2 Select banks with assets between $1.5 billion and $5.0 billion in the Mid-Atlantic (North of Richmond) and New England Region. (ACNB, BCBP, BPRN, BWFG, FRBA, FRST, FVCB, HNVR, JMSB, MNSB, MRBK, MVBF, NBN, PKBK, UNTY). % Change CBNK 152% KBW NASDAQ Regional Banking Index 18% Selected Banks2 Median 25% CAGR % Change CBNK 15.7% 199% KBW NASDAQ Regional Banking Index 10.1% 106% Selected Banks2 Median 8.9% 89%

 

Jake Dalaya Chief Financial Officer (301)-637-5118 NASDAQ: CBNK

 

Non-U.S. GAAP Financial Measures

 

Reconciliation of Non-GAAP Information 19 Core Earnings Metrics (in thousands, except per share data) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Net Income 12,018$ 15,037$ 15,065$ 13,136$ 13,932$ Deduct: Income from the Call of Brokered Time Deposits, Net of Tax - - (3,489) - - Add: Merger-Related Expenses, Net of Tax - - 575 1,070 964 Core Net Income 12,018$ 15,037$ 15,640$ 14,206$ 14,896$ Weighted average common shares - Diluted 16,441 16,493 16,844 16,802 16,925 Earnings per share - Diluted 0.73$ 0.91$ 0.89$ 0.78$ 0.82$ Core Earnings per share - Diluted 0.73$ 0.91$ 0.72$ 0.85$ 0.88$ Average Assets 3,651,812$ 3,498,540$ 3,378,296$ 3,292,533$ 3,221,964$ Return on Average Assets(1) 1.33% 1.71% 1.77% 1.60% 1.75% Core Return on Average Assets(1) 1.33% 1.71% 1.43% 1.73% 1.87% Average Equity 405,302$ 391,750$ 383,922$ 371,795$ 363,115$ Return on Average Equity(1) 12.03% 15.23% 15.57% 14.17% 15.56% Core Return on Average Equity(1) 12.03% 15.23% 12.56% 15.33% 16.64% Net Interest Income 49,398$ 50,279$ 52,020$ 47,646$ 46,047$ Noninterest Income 13,373 12,464 11,068 13,106 12,549 Total Revenue 62,771$ 62,743$ 63,088$ 60,752$ 58,596$ Noninterest Expense 43,681 39,103 38,354 39,572 38,053 Efficiency Ratio(2) 69.6% 62.3% 60.8% 65.1% 64.9% Net Interest Income 49,398$ 50,279$ 52,020$ 47,646$ 46,047$ Deduct: Income from the Call of Brokered Time Deposits - - 4,618 - - Core Net Interest Income (a) 49,398$ 50,279$ 47,402$ 47,646$ 46,047$ Noninterest Income (b) 13,373 12,464 11,068 13,106 12,549 Core Fee Revenue (b) 13,373$ 12,464$ 11,068$ 13,106$ 12,549$ Core Revenue (a) + (b) 62,771$ 62,743$ 58,470$ 60,752$ 58,596$ Noninterest Expense 43,681 39,103 38,354 39,572 38,053 Less: Merger-Related Expenses -$ -$ 697$ 1,398$ 1,266$ Core Noninterest Expense 43,681$ 39,103$ 37,657$ 38,174$ 36,787$ Core Efficiency Ratio(2) 69.6% 62.3% 64.4% 62.8% 62.8% (1) Annualized (2) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income). Quarters Ended

 

Reconciliation of Non-GAAP Information 20 Tangible Book Value Per Share (in thousands, except per share amount) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Total Stockholders' Equity 408,859$ 401,757$ 394,770$ 380,035$ 369,577$ Less: Intangible assets 40,480 40,740 41,002 37,773 39,641 Tangible Common Equity 368,379$ 361,017$ 353,768$ 342,262$ 329,936$ Period End Shares Outstanding 16,286,480 16,373,288 16,589,241 16,581,990 16,657,168 Tangible Book Value Per Share 22.62$ 22.05$ 21.33$ 20.64$ 19.81$ Core Net Interest Margin(1) (in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Net Interest Income 49,398$ 50,279$ 52,020$ 47,646$ 46,047$ Less: Credit Card Loan Income 14,882$ 16,196$ 15,386$ 14,116$ 14,147$ Core Net Interest Income 34,516$ 34,083$ 36,634$ 33,530$ 31,900$ Average Interest Earning Assets 3,509,115 3,360,576 3,246,653 3,163,421 3,087,943 Less: Average Credit Card Loans 133,712 133,858 129,100 121,414 118,723 Average Core Interest Earning Assets 3,375,403$ 3,226,718$ 3,117,553$ 3,042,007$ 2,969,220$ Core Net Interest Margin 4.15% 4.19% 4.66% 4.42% 4.36% (1) Annualized Core Loan Yield(1) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Portfolio Loans Receivable Interest Income 64,009$ 64,670$ 60,610$ 60,647$ 58,453$ Less: Credit Card Loan Income 14,882$ 16,197$ 15,387$ 14,116$ 14,148$ Core Portfolio Loans Receivable Interest Income 49,127$ 48,473$ 45,223$ 46,531$ 44,305$ Average Portfolio Loans Receivable 3,008,187 2,902,033 2,789,815 2,733,865 2,634,110 Less: Average Credit Card Loans 133,712 133,858 129,100 121,414 118,723 Total Core Average Portfolio Loans Receivable 2,874,475$ 2,768,175$ 2,660,715$ 2,612,451$ 2,515,387$ Core Portfolio Loans Receivable Yield 6.93% 6.95% 6.74% 7.14% 7.14% (1) Annualized Quarters Ended Quarters Ended Quarters Ended

 

Reconciliation of Non-GAAP Information 21 Return on Average Tangible Common Equity (in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Net Income 12,018$ 15,037$ 15,065$ 13,136$ 13,932$ Add: Intangible Amortization, net of tax 197 200 199 200 199 Net Tangible Income 12,215$ 15,237$ 15,264$ 13,336$ 14,131$ Average Equity 405,302 391,750 383,922 371,795 363,115 Less: Average Intangible Assets 40,628 40,884 37,706 39,534 36,896 Net Average Tangible Common Equity 364,674$ 350,866$ 346,216$ 332,261$ 326,219$ Return on Average Equity 12.03% 15.23% 15.57% 14.17% 15.56% Return on Average Tangible Common Equity 13.58% 17.23% 17.49% 16.10% 17.57% Core Return on Average Tangible Common Equity (in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Net Income, as Adjusted 12,018$ 15,037$ 12,151$ 14,206$ 14,896$ Add: Intangible Amortization, net of tax 197 200 199 200 199 Core Net Tangible Income 12,215$ 15,237$ 12,350$ 14,406$ 15,095$ Core Return on Average Tangible Common Equity 13.58% 17.23% 14.15% 17.39% 18.77% Quarters Ended Quarters Ended

 

Reconciliation of Non-GAAP Information 22 Net Charge-offs to Average Portfolio Loans(1) (in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Total Net Charge-offs 2,993$ 2,373$ 2,476$ 5,088$ 2,444$ Total Average Portfolio Loans 3,008,187 2,902,033 2,789,815 2,733,865 2,634,110 Net Charge-offs to Average Portfolio Loans(1) 0.40% 0.32% 0.35% 0.75% 0.38% Nonperforming Loans to Total Portfolio Loans (in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Total Nonperforming Loans 55,417$ 54,421$ 52,247$ 36,167$ 42,934$ Total Portfolio Loans 3,026,431 2,959,457 2,821,983 2,739,808 2,678,406 Nonperforming Loans to Total Portfolio Loans 1.83% 1.84% 1.85% 1.32% 1.60% Allowance for Credit Losses to Total Portfolio Loans (in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Allowance for Credit Losses 54,680$ 54,660$ 53,045$ 47,447$ 48,454$ Total Portfolio Loans 3,026,431 2,959,457 2,821,983 2,739,808 2,678,406 Nonperforming Loans to Total Portfolio Loans 1.81% 1.85% 1.88% 1.73% 1.81% Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans (in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Allowance for Credit Losses 54,680$ 54,660$ 53,045$ 47,447$ 48,454$ Less: Credit Card Allowance for Credit Losses 7,802 8,232 7,413 6,762 5,905 Commercial Bank Allowance for Credit Losses 46,878$ 46,428$ 45,632$ 40,685$ 42,549$ Total Portfolio Loans 3,026,431 2,959,457 2,821,983 2,739,808 2,678,406 Less: Gross Credit Card Loans 131,887 137,905 130,897 126,233 115,991 Commercial Bank Portfolio Loans 2,894,544$ 2,821,552$ 2,691,086$ 2,613,575$ 2,562,415$ Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans 1.62% 1.65% 1.71% 1.70% 1.24% (1) Annualized Quarters Ended Quarters Ended Quarters Ended Quarters Ended

 

Source: View Original Filing on SEC EDGAR

FAQ

How did Capital Bancorp (CBNK) perform in Q1 2026?

Capital Bancorp reported Q1 2026 net income of $12.0 million and diluted EPS of $0.73. Net interest income rose 7.3% year-over-year, while ROA was 1.33% and ROTCE 13.58%, reflecting growth alongside higher expenses and credit costs.

What were Capital Bancorp’s loans and deposits at March 31, 2026?

At March 31, 2026, Capital Bancorp had gross loans of $3.0 billion and total deposits of $3.3 billion. Loans grew 13.0% year-over-year, while deposits increased 13.9%, supported by strong customer deposit inflows and reduced reliance on brokered deposits.

What dividend did Capital Bancorp (CBNK) declare for Q1 2026?

The board declared a cash dividend of $0.12 per share on Capital Bancorp’s common stock. The dividend is payable on May 27, 2026, to stockholders of record on May 11, 2026, continuing the company’s practice of returning capital to shareholders.

How did Capital Bancorp’s asset quality look in Q1 2026?

Capital Bancorp reported nonperforming assets of $59.3 million, or 1.56% of total assets, at March 31, 2026. The allowance for credit losses was $54.7 million, equal to 1.81% of portfolio loans, providing a buffer against potential credit losses.

What happened to Capital Bancorp’s net interest margin in Q1 2026?

Net interest margin was 5.71% in Q1 2026, down 23 basis points from Q4 2025. Core net interest margin was 4.15%, declining 4 basis points, as changes in the rate environment and funding mix offset benefits from loan growth and purchase accounting accretion.

How did Capital Bancorp’s tangible book value per share change?

Tangible book value per share rose to $22.62 at March 31, 2026, up from $22.05 at December 31, 2025 and $19.81 a year earlier. This 14.2% year-over-year increase reflects retained earnings growth and disciplined capital management, including measured share repurchases.

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