Capital Bancorp, Inc.: CBNK Reports 2Q ROA of 1.60% and EPS of $0.78 Growth across Loans, Deposits, and Cards accompanied by Improving Credit Delivers Strong Profitability

Second Quarter 2025 Highlights

• GAAP Net Income of $13.1 million, or $0.78 per share, and return on average assets ("ROA") of 1.60%
  • Core net income⁽¹⁾ of $14.2 million, or $0.85 per share, and core ROA⁽¹⁾ of 1.73%
• Book value per common share of $22.92 at June 30, 2025, increased $0.73 compared to 1Q 2025, and increased $3.66 when compared to 2Q 2024
  • Tangible book value per share⁽¹⁾ of $20.64, increased 4.2% (not annualized), or $0.83 as compared to 1Q 2025, and increased 7.2%, or $1.38 compared to 2Q 2024
• Return on average equity ("ROE") of 14.17%, and return on average tangible common equity ("ROTCE")⁽¹⁾ of 16.10%
  • Core ROE⁽¹⁾ of 15.33%, and core ROTCE⁽¹⁾ of 17.39%
• Gross Loans⁽²⁾ grew $61.4 million, or 9.2% (annualized), during 2Q 2025, and growth of $718.2 million year-over-year including $344.7 million from organic growth and $373.5 million from the IFH acquisition
• Total deposits grew $49.4 million, or 6.9% (annualized), from 1Q 2025. Year-over-year growth of $840.3 million includes $381.3 million from organic growth, and $459.0 million from the acquisition of IFH, or 44.2% from 2Q 2024
  • Customer Deposit³ growth of $87.1 million, or 13.5% (annualized) from 1Q 2025, and $725.3 million year-over-year, or 37.3% from 2Q 2024, including $431.8 million of organic growth, and $293.5 million from the acquisition of IFH
• Net Interest Income increased $1.6 million, or 3.5% (not annualized), from 1Q 2025 due to strong balance sheet growth from the Commercial Bank, and increased $10.6 million, or 28.6%, year-over-year, primarily driven by strong organic growth and the acquisition of IFH
• Net Interest Margin ("NIM") of 6.04% decreased 1 bps compared to 1Q 2025 and decreased 42 bps compared to 2Q 2024 due to the acquisition of commercial loans from IFH, diluting the impact from OpenSky
  • Commercial Bank NIM⁽¹⁾ of 4.36% increased by 4 bps, or 7 bps when excluding purchase accounting accretion ("PAA"), when compared to 1Q 2025, and 46 bps,or 30 bps excluding PAA, compared to 2Q 2024
    • 2Q 2025 net PAA of $1.3 million, or 16 bps of NIM and Commercial Bank NIM⁽¹⁾, decreased $0.2 million, or 3 bps, compared to 1Q 2025
• The allowance for credit losses to total loans ("ACL Coverage Ratio") equaled 1.73% at June 30, 2025 down 8 bps from March 31, 2025 and up 20 bps from June 30, 2024, primarily due to the acquisition of IFH loans. The Commercial Bank ACL Coverage Ratio⁽¹⁾ equaled 1.56% at June 30, 2025, compared to 1.67% at March 31, 2025
• Fee Revenue (noninterest income) totaled $13.1 million, or 21.6% of total revenue for 2Q 2025, an increase of $0.6 million, from 1Q 2025 and an increase of $6.2 million, from 2Q 2024
• Cash Dividend of $0.12 per share declared by the Board of Directors, an increase of 20% from 1Q 2025
• Shares repurchased and retired during the three months ended June 30, 2025, as part of the Company's stock repurchase program, totaled 93,170 shares at an average price of $26.66, for a total cost of $2.5 million including commissions

_{^{____________________________________________
(1)} As used in this press release, core net income, core ROA, core ROE, ROTCE, core ROTCE, Commercial Bank NIM, Commercial Bank ACL Coverage Ratio, and Tangible Book Value are non-U.S. generally accepted accounting principles ("GAAP") financial measures. These non-GAAP financial metrics exclude merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non-GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
⁽²⁾ Gross loans represent portfolio loans receivable, net of deferred fees and costs
⁽³⁾ Customer Deposits represents total deposits excluding brokered deposits}

ROCKVILLE, Md., July 28, 2025 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported net income of $13.1 million, or $0.78 per diluted share, for 2Q 2025, compared to net income of $13.9 million, or $0.82 per diluted share, for 1Q 2025, and $8.2 million, or $0.59 per diluted share, for 2Q 2024. Core net income⁽⁴⁾ for 2Q 2025 of $14.2 million, or $0.85 per diluted share, compared to $14.9 million, or $0.88 per diluted share in 1Q 2025.

The Company also declared a cash dividend on its common stock of $0.12 per share, a 20% increase from the prior quarterly dividend. The dividend is payable on August 27, 2025 to shareholders of record on August 11, 2025.

"We are pleased with the significant progress we are making on our Strategic Plan, demonstrated by our record results for the first half of 2025," said Ed Barry, CEO of the Company and the Bank. "Our teams continue to unlock the value of our acquisition of IFH, grow the franchise, and strengthen our diversified business model."

"Although earnings did not advance quarter over quarter, our continued focus on growing commercial and industrial loans, our success at building core deposits, and our strong net interest margin have the Commercial Bank well-positioned for profitable growth," said Steven J. Schwartz, Chairman of the Company. "As the integration of the IFH transaction progresses, we are pleased that we have been able to maintain our fee revenue above 20% of total revenue. And, in the absence of any unexpected headwinds, which do not appear to be materializing at present, our multiple growth levers provide the means to achieve robust EPS and TBV growth. This marks the 4th consecutive year that we have increased our dividend payout. Our consistent dividend payments and continued stock buybacks evidence our sustained commitment to reward our shareholders."

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

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

	Second Quarter 2025												First Quarter 2025
(in thousands, except per share data)	Income Before Income Taxes			Income Tax Expense			Net Income			Diluted Earnings per Share			Income Before Income Taxes			Income Tax Expense			Net Income			Diluted Earnings per Share
GAAP Net Income	$	17,099		$	3,963		$	13,136		$	0.78		$	18,297		$	4,365		$	13,932		$	0.82
Add: Merger-Related Expenses		1,398			328			1,070						1,266			302			964
Core Net Income(1)	$	18,497		$	4,291		$	14,206		$	0.85		$	19,563		$	4,667		$	14,896		$	0.88

	Six Months Ended June 30, 2025
(in thousands except per share data)	Income Before Income Taxes			Income Tax Expense			Net Income			Diluted Earnings per Share
GAAP Earnings	$	35,396		$	8,328		$	27,068		$	1.60
Add: Merger-Related Expenses		2,664			630			2,034
Core Net Income(1)	$	38,060		$	8,958		$	29,102		$	1.72

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

_{^{____________________________________________
1} As used in this press release, core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of this and other non-GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Second Quarter 2025 Results

Earnings Summary

Net income of $13.1 million, or $0.78 per diluted share, compared to net income of $13.9 million, or $0.82 per diluted share, for 1Q 2025, and $8.2 million or $0.59 per diluted share, for 2Q 2024. 2Q 2025 core net income⁽⁵⁾ of $14.2 million, or $0.85 per diluted share, compared to 1Q 2025 of $14.9 million, or $0.88 per diluted share.

• Net interest income of $47.6 million increased $1.6 million, or 3.5% (not annualized), compared to 1Q 2025, and increased $10.6 million, or 28.6%, year-over-year.
  • Interest income of $64.6 million increased $1.8 million, or 2.9% (not annualized), over 1Q 2025, and increased $14.0 million, or 27.6%, year-over-year. The increase quarter-over-quarter was driven by an increase from Commercial Bank loan interest income due to portfolio growth, while the increase year-over-year was primarily driven by organic growth and the acquisition of IFH.
    • Interest income included $0.4 million from net purchase accounting accretion in 2Q 2025, flat compared to 1Q 2025. There was no impact related to purchase accounting during 2Q 2024.
  • Interest expense of $16.9 million increased $0.2 million, or 1.4% (not annualized) compared to 1Q 2025, and increased $3.4 million, or 24.9%, year-over-year. The increase quarter-over-quarter was mainly due to a lower benefit from net purchase accounting accretion, as higher deposit volumes were offset by lower deposit rates. The increase year-over-year was driven by organic growth and the acquisition of IFH.
    • Interest expense included a $0.9 million benefit from net purchase accounting accretion in 2Q 2025 compared to a $1.1 million benefit in 1Q 2025. There was no impact related to purchase accounting during 2Q 2024.
• The 2Q 2025 provision for credit losses was $4.1 million, an increase of $1.8 million from 1Q 2025. The increase over the prior quarter was primarily driven by $1.1 million from OpenSky due to higher volumes in both the secured and unsecured portfolio, and $0.7 million from the Commercial Bank due to higher charge-offs not previously provided for. Net charge-offs totaled $5.1 million, or 0.75% of portfolio loans (annualized), including $3.0 million from the Commercial Bank and $2.1 million from OpenSky loans. The Commercial Bank charge-offs were driven by $2.1 million from balances charged off from the acquired IFH portfolio, including a loan sale resulting in a charge-off of $1.5 million. Net charge-offs for 1Q 2025 totaled $2.4 million, or 0.38% of portfolio loans (annualized), mainly driven by $2.3 million from OpenSky loans.
  • At June 30, 2025, the ACL Coverage Ratio was 1.73%, down 8 bps from the ratio of 1.81% at March 31, 2025, primarily due to the sale during the quarter of a purchase credit deteriorated ("PCD") loan acquired from IFH.

_{^{____________________________________________
1}As used in this press release, core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of this and other non-GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Earnings Summary (Continued)

• Fee Revenue of $13.1 million increased $0.6 million, compared to 1Q 2025 and increased $6.2 million year-over-year primarily due to the contributions made by the businesses IFH brought to the merged entity. During 2Q 2025, core fee revenue⁽⁶⁾ of $13.1 million increased $0.6 million as a result of $2.0 million higher government lending revenue (net gain on sale), $0.6 million higher credit card fees from OpenSky, and $0.1 million higher government loan servicing revenue (Windsor Advantage), offset by a $1.1 million negative impact from the fair value adjustment related to the loan servicing portfolio, and $1.0 million lower other income. Core fee revenue mix was 21.6% of total revenue for 2Q 2025, compared to 21.4% during 1Q 2025, and 15.7% during 2Q 2024.
• Noninterest expense of $39.6 million increased $1.5 million compared to 1Q 2025 and $10.1 million compared to 2Q 2024. Core noninterest expense⁽¹⁾ of $38.2 million increased $1.4 million compared to 1Q 2025 and $8.8 million compared to 2Q 2024. Core comparisons include:
  • The increase of $1.4 million quarter-over-quarter was driven by an increase from personnel expenses, growth from business related activities including costs associated with servicing the USDA portfolio, and continued investments in technology including the implementation of a new digital banking solution.
  • Year-over-year expense growth of $8.8 million was primarily due to the acquisition of IFH.
• Income tax expense of $4.0 million, or 23.2% of pre-tax income for 2Q 2025, decreased $0.4 million from $4.4 million, or 23.9% of pre-tax income for 1Q 2025. The core effective income tax rate⁽¹⁾ for 2Q 2025 and 1Q 2025 would have been 23.2% and 23.7%, respectively.

_{^{____________________________________________
1}As used in this press release, core fee revenue, core noninterest expense, and core effective income tax rate are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non-GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Balance Sheet

Total assets of $3.4 billion at June 30, 2025 increased $38.9 million, or 4.7% (annualized), from March 31, 2025. Total assets growth year-over-year of $1.0 billion, or 39.0%, included $559.4 million acquired with the IFH acquisition, net of purchase accounting, and $440.6 million of organic growth.

• The $38.9 million growth in total assets quarter-over-quarter is primarily driven by Gross Loan growth of $61.4 million, Investment portfolio growth of $15.5 million, partially offset by decreases in total Cash of $19.4 million and Loans Held for Sale of $13.7 million.
• Gross Loans of $2.74 billion at June 30, 2025 increased $61.4 million, or 9.2% (annualized), from March 31, 2025 and increased $718.2 million year-over-year including $373.5 million from the acquisition of IFH and $344.7 million of organic growth.
  • Compared to March 31, 2025, the growth of $61.4 million was primarily driven by $26.7 million from commercial real estate, $17.1 million from residential real estate, $12.3 million from OpenSky, and $9.3 million from lender finance.
  • Commercial and industrial loans, plus owner-occupied commercial real estate loans totaled 37.6% of total portfolio loans at June 30, 2025, consistent with the prior quarter, and 28.4% at June 30, 2024.
• Total deposits of $2.94 billion at June 30, 2025 increased $49.4 million, or 6.9% (annualized), from March 31, 2025, and increased $840.3 million, or 40.0% (annualized) from June 30, 2024. The increase quarter-over-quarter includes $47.8 million of growth in customer money market deposits, $24.8 million of noninterest-bearing deposits, and $23.0 million from interest-bearing demand accounts, partially offset by a decrease in brokered time deposits of $37.7 million and $8.6 million of customer time deposits. The increase of $840.3 million year-over-year is driven by $459.0 million from the acquisition of IFH and $381.3 million from organic growth.
  • Insured and protected⁷ deposits were approximately $2.1 billion as of June 30, 2025 representing 69.9% of the Company's deposit portfolio.
  • Low-and-no interest-bearing DDA deposits of $1.2 billion, or 39.8% of deposits, increased $47.8 million, or 17.1% (annualized) from 1Q 2025, and increased $214.4 million, or 22.4% year-over-year, including $122.9 million of organic growth, and $91.5 million from the acquisition of IFH.
    • The average rate on the low-and-no interest-bearing deposits was 0.14% for 2Q 2025, a decrease of 1 bps from 1Q 2025 and an increase of 8 bps year-over-year.
• The average portfolio loans-to-deposit ratio was 96.2% for 2Q 2025, compared to 95.2% for 1Q 2025, and 99.1% for 2Q 2024.
• The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $228.9 million, or 6.8% of total assets, an effective duration of 2.7 years, with U.S. Treasury Securities representing 60% of the overall investment portfolio at June 30, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio improved $1.1 million during the quarter to negative $8.1 million after-tax as of June 30, 2025, which represents 2.1% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio.
• Liquidity - The Company maintains stable and reliable sources of available borrowings, generally consistent with prior quarter. Sources of available borrowings at June 30, 2025 totaled $834.8 million, compared to $820.9 from 1Q 2025. During 2Q 2025, available collateralized lines of credit totaled $750.6 million, unsecured lines of credit with other banks totaled $76.0 million and unpledged investment securities available as collateral for potential additional borrowings of $8.2 million.
• Capital Positions - As of June 30, 2025, the Company reported a Common Equity Tier-1 capital ratio of 13.58%, compared to 13.24% at March 31, 2025. At June 30, 2025, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
  • Shares repurchased and retired during the three months ended June 30, 2025, as part of the Company's stock repurchase program, totaled 93,170 shares at an average price of $26.66, for a total cost of $2.5 million including commissions. There is $11.9 million remaining to be repurchased under the authorized and approved stock repurchase plan. The stock repurchase program will expire on February 28, 2026.

_{^{____________________________________________
1}Protected deposits includes deposits that are indirectly protected under the product terms}

Financial Metrics

Net Interest Margin - NIM of 6.04% for 2Q 2025, decreased 1 bps compared to the prior quarter, and decreased 42 bps year-over-year. Commercial Bank NIM⁽¹⁾, of 4.36% increased 4 bps, compared to the prior quarter, and increased 46 bps year-over-year. Net purchase accounting accretion for 2Q 2025 was 16 bps for NIM and Commercial Bank NIM⁽¹⁾.

• The average yield on interest earning assets of 8.19% decreased 5 bps compared to the prior quarter, due to minor changes in portfolio mix, and decreased 63 bps year-over-year primarily due to the acquisition of commercial loans diluting the positive impact from OpenSky. The Commercial Bank Loan Yield⁽¹⁾ of 7.14% for 2Q 2025 was flat compared to 1Q 2025, and increased 10 bps year-over-year.
• The total cost of deposits of 2.36% for 2Q 2025 decreased 6 bps compared to the prior quarter due to lower rates on most products and mix shift and decreased 25 bps year-over-year. The total cost of interest-bearing deposits decreased 8 bps quarter-over-quarter, and 57 bps year-over-year, to 3.29% for 2Q 2025 primarily due to changes in product mix.
• Net purchase accounting accretion of $1.3 million during 2Q 2025, decreased $0.2 million from 1Q 2025. There was no impact from purchase accounting during 2Q 2024.

Fee Revenue Mix - The fee revenue mix was 21.6% of total revenue for 2Q 2025, compared to 21.4% during 1Q 2025, and 15.7% during 2Q 2024. The core fee revenue mix⁽⁸⁾ was consistent with fee revenue mix for these periods.

Credit Metrics and Asset Quality - The ACL Coverage Ratio equaled 1.73% at June 30, 2025, a decrease of 8 bps from March 31, 2025, and an increase of 20 bps year-over-year driven by the acquisition of IFH.

Nonperforming assets decreased 17 bps to 1.11% of total assets at June 30, 2025 compared to March 31, 2025, primarily due to the sale of a PCD loan acquired from IFH during the quarter, and increased 53 bps year-over-year. Total nonaccrual loans at June 30, 2025 decreased $5.4 million to $37.5 million compared to March 31, 2025, and increased $23.5 million year-over-year, mainly due to the acquisition of IFH. At June 30, 2025, special mention loans totaled $54.2 million, or 2.0% of total portfolio loans, compared to $63.0 million, or 2.4% of total portfolio loans, at March 31, 2025, and $23.3 million, or 1.2% of total portfolio loans, at June 30, 2024. At June 30, 2025, substandard loans totaled $44.6 million, or 1.7% of total portfolio loans, compared to $48.4 million, or 1.8% of total portfolio loans, at March 31, 2025 and $22.1 million, or 1.2% of total portfolio loans, at June 30, 2024.

Efficiency Ratios - The efficiency ratio was 65.1% for 2Q 2025, compared to 64.9% for 1Q 2025 and 67.1% for 2Q 2024. The core efficiency ratio⁽¹⁾ was 62.8%, for 2Q 2025, which was flat compared to the prior quarter, and 66.9% for 2Q 2024.

_{^{____________________________________________
1}As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, core fee revenue mix and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non-GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Financial Metrics (Continued)

Performance Ratios - ROA was 1.60% for 2Q 2025, compared to 1.75% for 1Q 2025, and 1.40% for 2Q 2024. As of June 30, 2024, the Company did not have goodwill or other intangible assets. Core ROA⁽⁹⁾ for 2Q 2025 was 1.73%, compared to 1.87% for 1Q 2025, and 1.41% for 2Q 2024.

• ROE was 14.17% for 2Q 2025, compared to 15.56% for 1Q 2025, and 12.53% for 2Q 2024. As of June 30, 2024, the Company did not have goodwill or other intangible assets. Core ROE⁽¹⁾ was 15.33% for 2Q 2025, compared to 16.64% for 1Q 2025, and 12.62% for 2Q 2024.
• ROTCE was 16.10% for 2Q 2025, compared to 17.57% for 1Q 2025, and 12.53% for 2Q 2024. As of June 30, 2024, the Company did not have goodwill or other intangible assets. Core ROTCE⁽¹⁾ for 2Q 2025 was 17.39%, compared to 18.77% for 1Q 2025, and 12.62% for 2Q 2024.

Book Value and Tangible Book Value - Book value per common share of $22.92 at June 30, 2025, increased $0.73 when compared to March 31, 2025, and increased $3.66 when compared to June 30, 2024. Tangible book value per common share⁽¹⁾ increased $0.83, or 4.2%, to $20.64 at June 30, 2025 when compared to March 31, 2025, and increased $1.39, or 7.2%, when compared to June 30, 2024. Tangible book value was impacted by the purchase accounting adjustments required as part of the IFH acquisition. Tangible book value per share⁽¹⁾ was equal to book value per share for periods prior to 4Q 2024.

_{^{____________________________________________
1}As used in this press release, core ROA, core ROE, ROTCE, core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non-GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Commercial Bank

Loan Growth - Portfolio loans⁽¹⁰⁾ increased $52.0 million at June 30, 2025 compared to March 31, 2025, driven by $10.9 million from CRE owner and non-owner occupied, $17.1 million from residential real estate, and $9.3 million from lender finance loans. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

Net Interest Income - Interest income of $49.9 million increased $1.8 million from the prior quarter, primarily driven by loan growth and slightly higher loan yields. Interest expense of $16.9 million increased $0.2 million, primarily due to lower benefit from purchase accounting adjustments in 2Q 2025.

Credit Metrics - Nonperforming assets, comprised solely of nonaccrual loans, decreased 17 bps to 1.11% of total assets at June 30, 2025 compared to March 31, 2025. Total nonaccrual loans at June 30, 2025 decreased to $37.5 million compared to $42.9 million at March 31, 2025.

Classified and Criticized Loans - At June 30, 2025, special mention loans totaled $54.2 million, or 2.0% of total portfolio loans, compared to $63.0 million, or 2.4% of total portfolio loans, at March 31, 2025. At June 30, 2025, substandard loans totaled $44.6 million, or 1.7% of total portfolio loans, compared to $45.7 million, or 1.7% of total portfolio loans, at March 31, 2025.

OpenSky

Accounts - During 2Q 2025, credit card accounts of 585.4 thousand increased by 21.7 thousand, or 3.8% (not annualized) from March 31, 2025, and increased 47.6 thousand, or 8.9% year-over-year.

Loan and Deposit Balances - Secured and unsecured loan balances, net of reserves, of $131.0 million at June 30, 2025 increased by $12.3 million, or 10.4% (not annualized), compared to March 31, 2025. Deposit balances of $168.9 million for 2Q 2025 remained flat compared to 1Q 2025. Gross unsecured loan balances of $46.4 million at June 30, 2025 increased $7.4 million, or 18.9% (not annualized), compared to $39.0 million at March 31, 2025, and increased $12.8 million year-over-year. Gross secured loan balances of $86.4 million at June 30, 2025 increased $5.1 million, or 6.3% (not annualized), compared to $81.3 million at March 31, 2025, and decreased $4.6 million, or 5.0% (not annualized) year-over-year.

Net Interest Income - Interest income of $14.5 million was in-line with the prior quarter. Average OpenSky credit card loan balances, net of reserves and deferred fees of $121.4 million for 2Q 2025, increased $2.7 million, or 2.3% (not annualized), compared to 1Q 2025.

Fee Revenue - Total fee revenue of $4.3 million increased $0.6 million from the prior quarter primarily driven by interchange income due to higher volume and other credit-card related fees.

Noninterest Expense - Total noninterest expense of $13.1 million remained generally consistent with the prior quarter.

OpenSky Credit - Portfolio credit metrics continued to be consistent with modeled expectations during 2Q 2025. The provision for credit losses of $2.9 million increased $1.1 million when compared to the prior quarter mainly due to growth in the secured and unsecured portfolio. OpenSky's unsecured loan product continues to be offered exclusively to current and former secured card customers to retain customers who have successfully improved their credit profiles. Unsecured loans have been offered by OpenSky since the fourth quarter of 2021 and have generally performed in accordance with management expectations over that time period.

_{^{____________________________________________
(1)}Portfolio loans represents portfolio loans receivable excluding deferred origination fees}

Capital Bank Home Loans

Originations of loans held for sale totaled $80.3 million during 2Q 2025, with $59.7 million of mortgage loans sold resulting in a gain on sale of loans of $1.6 million, representing a 2.68% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $65.8 million during 1Q 2025, with $54.1 million of mortgage loans sold resulting in a gain on sale of loans of $1.7 million, representing a 3.07% gain on sale as a percentage of total loans sold.

Windsor Advantage

Gross government loan servicing revenue totaled $4.7 million, including $1.1 million of Capital Bank related servicing fees, during 2Q 2025. Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of Capital Bank related servicing fees, during 1Q 2025. Windsor's total servicing portfolio was $2.9 billion at June 30, 2025, and $2.7 billion at March 31, 2025.

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
	Quarter Ended												2Q25 vs 1Q25								2Q25 vs 2Q24
(in thousands, except per share data)	June 30, 2025				March 31, 2025				June 30, 2024				$ Change				% Change				$ Change				% Change
Earnings Summary
Interest income	$	64,586			$	62,760			$	50,615			$	1,826				2.9	%		$	13,971				27.6	%
Interest expense		16,940				16,713				13,558				227				1.4	%			3,382				24.9	%
Net interest income		47,646				46,047				37,057				1,599				3.5	%			10,589				28.6	%
Provision for credit losses		4,081				2,246				3,417				1,835				81.7	%			664				19.4	%
Provision for credit losses on unfunded commitments		-				-				104				-				-	%			(104	)			(100.0	)%
Noninterest income		13,106				12,549				6,890				557				4.4	%			6,216				90.2	%
Noninterest expense		39,572				38,053				29,493				1,519				4.0	%			10,079				34.2	%
Income before income taxes		17,099				18,297				10,933				(1,198	)			(6.5	)%			6,166				56.4	%
Income tax expense		3,963				4,365				2,728				(402	)			(9.2	)%			1,235				45.3	%
Net income	$	13,136			$	13,932			$	8,205			$	(796	)			(5.7	)%		$	4,931				60.1	%
Pre-tax pre-provision net revenue ("PPNR")(1)	$	21,180			$	20,543			$	14,454			$	637				3.1	%		$	6,726				46.5	%
Core PPNR(1)	$	22,578			$	21,809			$	14,537			$	769				3.5	%		$	8,041				55.3	%
Common Share Data
Earnings per share - Basic	$	0.79			$	0.84			$	0.59			$	(0.05	)			(6.0	)%		$	0.20				33.9	%
Earnings per share - Diluted	$	0.78			$	0.82			$	0.59			$	(0.04	)			(4.9	)%		$	0.19				32.2	%
Core earnings per share - Diluted(1)	$	0.85			$	0.88			$	0.59			$	(0.03	)			(3.4	)%		$	0.26				44.1	%
Weighted average common shares - Basic		16,584				16,666				13,895
Weighted average common shares - Diluted		16,802				16,925				13,895
Return Ratios
Return on average assets (annualized)		1.60	%			1.75	%			1.40	%
Core return on average assets (annualized)(1)		1.73	%			1.87	%			1.41	%
Return on average equity (annualized)		14.17	%			15.56	%			12.53	%
Core return on average equity (annualized)(1)		15.33	%			16.64	%			12.62	%
Return on average tangible common equity (annualized)(1)		16.10	%			17.57	%			12.53	%
Core return on average tangible common equity (annualized)(1)		17.39	%			18.77	%			12.62	%

_{^{____________________________________________
(1)} Refer to Appendix for reconciliation of non-GAAP measures.}

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)
	Six Months Ended
	June 30,
(in thousands, except per share data)		2025				2024			$ Change				% Change
Earnings Summary
Interest income	$	127,346			$	98,984			$	28,362			28.7	%
Interest expense		33,653				26,919				6,734			25.0	%
Net interest income		93,693				72,065				21,628			30.0	%
Provision for credit losses		6,327				6,144				183			3.0	%
Provision for credit losses on unfunded commitments		-				246				(246	)		(100.0	)%
Noninterest income		25,655				12,862				12,793			99.5	%
Noninterest expense		77,625				58,980				18,645			31.6	%
Income before income taxes		35,396				19,557				15,839			81.0	%
Income tax expense		8,328				4,790				3,538			73.9	%
Net income	$	27,068			$	14,767			$	12,301			83.3	%
Pre-tax pre-provision net revenue ("PPNR")(1)	$	41,723			$	25,947			$	15,776			60.8	%
Core PPNR(1)	$	44,387			$	26,742			$	17,645			66.0	%
Common Share Data
Earnings per share - Basic	$	1.63			$	1.06			$	0.57			53.8	%
Earnings per share - Diluted	$	1.60			$	1.06			$	0.54			50.9	%
Core earnings per share - Diluted(1)	$	1.72			$	1.10
Weighted average common shares - Basic		16,624				13,907
Weighted average common shares - Diluted		16,872				13,907
Return Ratios
Return on average assets (annualized)		1.68	%			1.28	%
Core return on average assets (annualized)(1)		1.80	%			1.33	%
Return on average equity (annualized)		14.85	%			11.37	%
Core return on average equity (annualized)(1)		15.97	%			11.83	%
Return on average tangible common equity (annualized)(1)		16.82	%			11.37	%
Core return on average tangible common equity (annualized)(1)		18.07	%			11.83	%

_{^{____________________________________________
(1)} Refer to Appendix for reconciliation of non-GAAP measures.}

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)
	Quarter Ended												Quarter Ended
	June 30,												March 31,				December 31,				September 30,
(in thousands, except per share data)		2025				2024			% Change					2025				2024				2024
Balance Sheet Highlights
Assets	$	3,388,662			$	2,438,583				39.0	%		$	3,349,805			$	3,206,911			$	2,560,788
Investment securities available-for-sale		228,923				207,917				10.1	%			213,452				223,630				208,700
Mortgage loans held for sale		20,925				19,219				8.9	%			34,656				21,270				19,554
Portfolio loans receivable(2)		2,739,808				2,021,588				35.5	%			2,678,406				2,630,163				2,107,522
Allowance for credit losses		47,447				30,832				53.9	%			48,454				48,652				31,925
Deposits		2,940,738				2,100,428				40.0	%			2,891,333				2,761,939				2,186,224
FHLB borrowings		22,000				32,000				(31.3	)%			22,000				22,000				52,000
Other borrowed funds		12,062				12,062				-	%			12,062				12,062				12,062
Total stockholders' equity		380,035				267,854				41.9	%			369,577				355,139				280,111
Tangible common equity(1)		342,262				267,854				27.8	%			329,936				318,196				280,111
Common shares outstanding		16,582				13,910				19.2	%			16,657				16,663				13,918
Book value per share	$	22.92			$	19.26				19.0	%		$	22.19			$	21.31			$	20.13
Tangible book value per share(1)	$	20.64			$	19.26				7.2	%		$	19.81			$	19.10			$	20.13
Dividends per share	$	0.10			$	0.08				25.0	%		$	0.10			$	0.10			$	0.10

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

Consolidated Statements of Income (Unaudited)
	Three Months Ended																				Six Months Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				June 30, 2025				June 30, 2024
Interest income
Loans, including fees	$	60,810			$	58,691			$	58,602			$	50,047			$	48,275			$	119,501			$	94,266
Investment securities available-for-sale		1,582				1,861				1,539				1,343				1,308				3,443				2,559
Federal funds sold and other		2,194				2,208				1,566				1,220				1,032				4,402				2,159
Total interest income		64,586				62,760				61,707				52,610				50,615				127,346				98,984
Interest expense
Deposits		16,722				16,512				16,385				13,902				13,050				33,234				25,883
Borrowed funds		218				201				995				354				508				419				1,036
Total interest expense		16,940				16,713				17,380				14,256				13,558				33,653				26,919
Net interest income		47,646				46,047				44,327				38,354				37,057				93,693				72,065
Provision for credit losses		4,081				2,246				7,828				3,748				3,417				6,327				6,144
Provision for credit losses on unfunded commitments		-				-				122				17				104				-				246
Net interest income after provision for credit losses		43,565				43,801				36,377				34,589				33,536				87,366				65,675
Noninterest income
Service charges on deposits		262				258				241				235				200				520				407
Credit card fees		4,298				3,722				3,733				4,055				4,330				8,020				8,211
Mortgage banking revenue		1,754				1,831				1,821				1,882				1,990				3,585				3,443
Government lending revenue		3,112				1,096				2,301				-				-				4,208				-
Government loan servicing revenue		3,644				3,568				3,993				-				-				7,212				-
Loan servicing rights (government guaranteed)		(590	)			472				1,013				-				-				(118	)			-
Non-recurring equity and debt investment write-down		-				-				(2,620	)			-				-				-				-
Other income		626				1,602				1,431				463				370				2,228				801
Total noninterest income		13,106				12,549				11,913				6,635				6,890				25,655				12,862
Noninterest expenses
Salaries and employee benefits		18,460				18,067				16,513				13,345				13,272				36,527				26,179
Occupancy and equipment		2,995				2,910				2,976				1,791				1,864				5,905				3,477
Professional fees		2,422				2,112				2,150				1,980				1,769				4,534				3,716
Data processing		7,520				7,112				7,210				6,930				6,788				14,632				13,549
Advertising		1,371				1,779				1,032				1,223				2,072				3,150				4,104
Loan processing		979				743				969				615				476				1,722				847
Foreclosed real estate expenses, net		-				1				-				1				-				1				1
Merger-related expenses		1,398				1,266				2,615				520				83				2,664				795
Operational losses		933				903				993				1,008				782				1,836				1,713
Regulatory assessment expenses		884				889				554				483				427				1,773				900
Other operating		2,610				2,271				2,502				1,829				1,960				4,881				3,699
Total noninterest expenses		39,572				38,053				37,514				29,725				29,493				77,625				58,980
Income before income taxes		17,099				18,297				10,776				11,499				10,933				35,396				19,557
Income tax expense		3,963				4,365				3,243				2,827				2,728				8,328				4,790
Net income	$	13,136			$	13,932			$	7,533			$	8,672			$	8,205			$	27,068			$	14,767

Consolidated Balance Sheets
	(unaudited)				(unaudited)				(audited)				(unaudited)				(unaudited)
(in thousands, except share data)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Assets
Cash and due from banks	$	26,843			$	27,836			$	25,433			$	23,462			$	19,294
Interest-bearing deposits at other financial institutions		247,704				266,092				179,841				133,180				117,160
Federal funds sold		59				59				58				58				57
Total cash and cash equivalents		274,606				293,987				205,332				156,700				136,511
Investment securities available-for-sale		228,923				213,452				223,630				208,700				207,917
Restricted investments		7,043				7,031				4,479				5,895				4,930
Loans held for sale		20,925				34,656				21,270				19,554				19,219
Portfolio loans receivable, net of deferred fees and costs		2,739,808				2,678,406				2,630,163				2,107,522				2,021,588
Less allowance for credit losses		(47,447	)			(48,454	)			(48,652	)			(31,925	)			(30,832	)
Total portfolio loans held for investment, net		2,692,361				2,629,952				2,581,511				2,075,597				1,990,756
Premises and equipment, net		14,863				15,085				15,525				5,959				5,551
Accrued interest receivable		15,149				19,458				16,664				12,468				12,162
Goodwill		22,478				24,085				21,126				-				-
Intangible assets		13,668				13,861				14,072				-				-
Core deposit intangibles		1,627				1,695				1,745				-				-
Loan servicing assets		2,221				2,244				5,511				-				-
Deferred tax asset		15,667				15,902				16,670				10,748				12,150
Bank owned life insurance		44,721				44,335				43,956				38,779				38,414
Other assets		34,410				34,062				35,420				26,388				10,973
Total assets	$	3,388,662			$	3,349,805			$	3,206,911			$	2,560,788			$	2,438,583
Liabilities
Deposits
Noninterest-bearing	$	836,979			$	812,224			$	810,928			$	718,120			$	684,574
Interest-bearing		2,103,759				2,079,109				1,951,011				1,468,104				1,415,854
Total deposits		2,940,738				2,891,333				2,761,939				2,186,224				2,100,428
Federal Home Loan Bank advances		22,000				22,000				22,000				52,000				32,000
Other borrowed funds		12,062				12,062				12,062				12,062				12,062
Accrued interest payable		8,158				9,995				9,393				8,503				6,573
Other liabilities		25,669				44,838				46,378				21,888				19,666
Total liabilities		3,008,627				2,980,228				2,851,772				2,280,677				2,170,729
Stockholders' equity
Common stock		166				167				167				139				139
Additional paid-in capital		126,888				128,692				128,598				55,585				55,005
Retained earnings		261,093				249,925				237,843				232,995				225,824
Accumulated other comprehensive loss		(8,112	)			(9,207	)			(11,469	)			(8,608	)			(13,114	)
Total stockholders' equity		380,035				369,577				355,139				280,111				267,854
Total liabilities and stockholders' equity	$	3,388,662			$	3,349,805			$	3,206,911			$	2,560,788			$	2,438,583

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

	Three Months Ended June 30, 2025												Three Months Ended March 31, 2025												Three Months Ended June 30, 2024
	Average Outstanding Balance				Interest Income/ Expense				Average Yield/ Rate(1)				Average Outstanding Balance				Interest Income/ Expense				Average Yield/ Rate(1)				Average Outstanding Balance				Interest Income/ Expense				Average Yield/ Rate(1)
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	182,192			$	2,065				4.55	%		$	203,053			$	2,138				4.27	%		$	77,069			$	937				4.89	%
Federal funds sold		59				-				-				58				1				6.99				56				1				7.18
Investment securities available-for-sale		230,317				1,582				2.76				235,605				1,861				3.20				223,973				1,308				2.35
Restricted investments		7,038				129				7.35				5,761				69				4.86				5,435				94				6.96
Loans held for sale		9,950				163				6.57				9,356				238				10.32				7,907				132				6.71
Portfolio loans receivable(2)(3)		2,733,865				60,647				8.90				2,634,110				58,453				9.00				1,992,630				48,143				9.72
Total interest earning assets		3,163,421				64,586				8.19				3,087,943				62,760				8.24				2,307,070				50,615				8.82
Noninterest earning assets		129,112												134,021												46,798
Total assets	$	3,292,533											$	3,221,964											$	2,353,868
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	281,878				391				0.56			$	242,355				368				0.62			$	216,247				148				0.28
Savings		13,043				16				0.49				13,204				18				0.55				4,409				1				0.09
Money market accounts		924,784				8,022				3.48				869,978				7,399				3.45				671,240				7,032				4.21
Time deposits		816,809				8,293				4.07				859,729				8,727				4.12				465,822				5,869				5.07
Borrowed funds		34,062				218				2.57				34,062				201				2.39				54,863				508				3.72
Total interest-bearing liabilities		2,070,576				16,940				3.28				2,019,328				16,713				3.36				1,412,581				13,558				3.86
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		45,523												56,503												24,844
Noninterest-bearing deposits		804,639												783,018												653,018
Stockholders' equity		371,795												363,115												263,425
Total liabilities and stockholders' equity	$	3,292,533											$	3,221,964											$	2,353,868
Net interest spread										4.91	%											4.88	%											4.96	%
Net interest income					$	47,646											$	46,047											$	37,057
Net interest margin(4)										6.04	%											6.05	%											6.46	%

_{^{____________________________________________
(1)} Annualized.
⁽²⁾ Includes nonaccrual loans.
⁽³⁾ For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, collectively, Commercial Bank Loan Yield was 7.14%, 7.14% and 7.04%, respectively.
⁽⁴⁾ For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, collectively, Commercial Bank Net Interest Margin was 4.36%, 4.32% and 3.90%, respectively.}

	Six Months Ended June 30,
		2025												2024
	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	$	192,565			$	4,203				4.40	%		$	80,800			$	1,986				4.94	%
Federal funds sold		59				1				3.42				56				2				7.18
Investment securities available-for-sale		232,947				3,443				2.98				228,602				2,559				2.25
Restricted investments		6,403				198				6.24				5,018				171				6.85
Loans held for sale		9,654				401				8.38				6,390				215				6.77
Portfolio loans receivable(2)(3)		2,684,263				119,100				8.95				1,960,001				94,051				9.65
Total interest earning assets		3,125,891				127,346				8.22				2,280,867				98,984				8.73
Noninterest earning assets		131,552												45,684
Total assets	$	3,257,443											$	2,326,551
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	262,226			$	759				0.58	%		$	199,732			$	258				0.26	%
Savings		13,123				34				0.52				4,625				2				0.09
Money market accounts		897,532				15,421				3.46				676,827				14,168				4.21
Time deposits		838,151				17,020				4.09				457,892				11,455				5.03
Borrowed funds		34,062				419				2.48				56,913				1,036				3.66
Total interest-bearing liabilities		2,045,094				33,653				3.32				1,395,989				26,919				3.88
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		50,982												24,332
Noninterest-bearing deposits		793,888												645,071
Stockholders' equity		367,479												261,159
Total liabilities and stockholders' equity	$	3,257,443											$	2,326,551
Net interest spread										4.90	%											4.85	%
Net interest income					$	93,693											$	72,065
Net interest margin(4)										6.04	%											6.35	%

_{^{____________________________________________
(1)} Annualized.
⁽²⁾ Includes nonaccrual loans.
⁽³⁾ For the years ended June 30, 2025 and 2024, collectively. Commercial Bank Loan Yield was 7.14% and 7.00%, respectively.
⁽⁴⁾ For the years ended June 30, 2025 and 2024, collectively. Commercial Bank Net Interest Margin was 4.33% and 3.84%, respectively.}

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

Prior to March 31, 2025, the Company disclosed Corporate as a reportable segment. The Company has determined that what was previously deemed the Corporate reportable segment consists of other business activities that are associated with the Commercial Bank and are reflected in the tabular disclosures that follow. It should be noted that such restructuring of the tabular disclosure did not result in any changes to the Company's revenue and expense allocation methodology. The Company restructured prior period tabular disclosures to achieve appropriate comparability.

The following schedules reported internally for performance assessment by the chief operating decision maker presents financial information for each reportable segment for the periods indicated. Total assets are presented as of June 30, 2025, March 31, 2025, and June 30, 2024.

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

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

Segments
For the three months ended March 31, 2025
(in thousands)	Commercial Bank				OpenSky				Windsor Advantage				CBHL				Consolidated
Interest income	$	48,164			$	14,444			$	-			$	152			$	62,760
Interest expense		16,649				-				-				64				16,713
Net interest income		31,515				14,444				-				88				46,047
Provision for credit losses		446				1,800				-				-				2,246
Provision for credit losses on unfunded commitments		-				-				-				-				-
Net interest income after provision		31,069				12,644				-				88				43,801
Noninterest income
Service charges on deposits		258				-				-				-				258
Credit card fees		-				3,722				-				-				3,722
Mortgage banking revenue		263				-				-				1,568				1,831
Government lending revenue		1,096				-				-				-				1,096
Government loan servicing revenue(1)		(1,038	)			-				4,606				-				3,568
Loan servicing rights (government guaranteed)		472				-				-				-				472
Other income		1,423				11				-				168				1,602
Total noninterest income		2,474				3,733				4,606				1,736				12,549
Noninterest expenses
Salaries and employee benefits		10,626				3,345				2,406				1,690				18,067
Occupancy and equipment		1,577				488				711				134				2,910
Professional fees		1,151				591				120				250				2,112
Data processing		440				6,582				53				37				7,112
Advertising		718				874				104				83				1,779
Loan processing		477				19				7				240				743
Foreclosed real estate expenses, net		1				-				-				-				1
Merger-related expenses		1,266				-				-				-				1,266
Operational losses		31				872				-				-				903
Regulatory assessment expenses		865				15				5				4				889
Other operating		1,408				516				254				93				2,271
Total noninterest expenses		18,560				13,302				3,660				2,531				38,053
Net income (loss) before taxes	$	14,983			$	3,075			$	946			$	(707	)		$	18,297
Total assets	$	3,192,327			$	119,636			$	23,750			$	14,092			$	3,349,805

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

Segments
For the three months ended June 30, 2024
(in thousands)	Commercial Bank				OpenSky				Windsor Advantage				CBHL				Consolidated
Interest income	$	34,698			$	15,785			$	-			$	132			$	50,615
Interest expense		13,475				-				-				83				13,558
Net interest income		21,223				15,785				-				49				37,057
Provision for credit losses		1,118				2,299				-				-				3,417
Provision for credit losses on unfunded commitments		104				-				-				-				104
Net interest income after provision		20,001				13,486				-				49				33,536
Noninterest income
Service charges on deposits		200				-				-				-				200
Credit card fees		-				4,330				-				-				4,330
Mortgage banking revenue		334				-				-				1,656				1,990
Other income		143				38				-				189				370
Total noninterest income		677				4,368				-				1,845				6,890
Noninterest expense
Salaries and employee benefits		8,595				3,086				-				1,591				13,272
Occupancy and equipment		1,221				499				-				144				1,864
Professional fees		855				675				-				239				1,769
Data processing		145				6,597				-				46				6,788
Advertising		404				1,576				-				92				2,072
Loan processing		233				16				-				227				476
Foreclosed real estate expenses, net		-				-				-				-				-
Merger-related expenses		83				-				-				-				83
Operational losses		-				782				-				-				782
Regulatory assessment expenses		427				-				-				-				427
Other operating		1,255				544				-				161				1,960
Total noninterest expenses		13,218				13,775				-				2,500				29,493
Net income (loss) before taxes	$	7,460			$	4,079			$	-			$	(606	)		$	10,933
Total assets	$	2,303,368			$	115,593			$	-			$	19,622			$	2,438,583

Segments
For the six months ended June 30, 2025
(in thousands)	Commercial Bank				OpenSky				Windsor Advantage				CBHL				Consolidated
Interest income	$	98,093			$	28,938			$	-			$	315			$	127,346
Interest expense		33,505				-				-				148				33,653
Net interest income		64,588				28,938				-				167				93,693
Provision for credit losses		1,605				4,722				-				-				6,327
Provision for credit losses on unfunded commitments		-				-				-				-				-
Net interest income after provision		62,983				24,216				-				167				87,366
Noninterest income
Service charges on deposits		520				-				-				-				520
Credit card fees		-				8,020				-				-				8,020
Mortgage banking revenue		728				-				-				2,857				3,585
Government lending revenue		4,208				-				-				-				4,208
Government loan servicing revenue(1)		(2,090	)			-				9,302				-				7,212
Loan servicing rights (government guaranteed)		(118	)			-				-				-				(118	)
Other income		1,772				36				-				420				2,228
Total noninterest income		5,020				8,056				9,302				3,277				25,655
Noninterest expenses
Salaries and employee benefits		21,716				6,748				4,915				3,148				36,527
Occupancy and equipment		3,480				1,061				1,079				285				5,905
Professional fees		2,723				1,143				191				477				4,534
Data processing		894				13,479				186				73				14,632
Advertising		1,513				1,344				139				154				3,150
Loan processing		1,127				43				61				491				1,722
Foreclosed real estate expenses, net		1				-				-				-				1
Merger-related expenses		2,664				-				-				-				2,664
Operational losses		131				1,705				-				-				1,836
Regulatory assessment expenses		1,725				30				11				7				1,773
Other operating		3,225				854				608				194				4,881
Total noninterest expenses		39,199				26,407				7,190				4,829				77,625
Net income (loss) before taxes	$	28,804			$	5,865			$	2,112			$	(1,385	)		$	35,396
Total assets	$	3,211,421			$	129,397			$	25,936			$	21,908			$	3,388,662

_{^{____________________________________________
(1)} Gross government loan servicing revenue totaled $9.3 million, including $2.1 million of servicing fees earned from the Commercial Bank by Windsor, for the six months ended June 30, 2025.}

Segments
For the six months ended June 30, 2024
(in thousands)	Commercial Bank				OpenSky				Windsor Advantage				CBHL				Consolidated
Interest income	$	68,063			$	30,706			$	-			$	215			$	98,984
Interest expense		26,795				-				-				124				26,919
Net interest income		41,268				30,706				-				91				72,065
Provision for credit losses		2,286				3,858				-				-				6,144
Provision for credit losses on unfunded commitments		246				-				-				-				246
Net interest income after provision		38,736				26,848				-				91				65,675
Noninterest income
Service charges on deposits		407				-				-				-				407
Credit card fees		-				8,211				-				-				8,211
Mortgage banking revenue		622				-				-				2,821				3,443
Other income		353				72				-				376				801
Total noninterest income		1,382				8,283				-				3,197				12,862
Noninterest expenses
Salaries and employee benefits		17,304				5,898				-				2,977				26,179
Occupancy and equipment		2,265				933				-				279				3,477
Professional fees		1,656				1,616				-				444				3,716
Data processing		461				13,004				-				84				13,549
Advertising		786				3,168				-				150				4,104
Loan processing		392				29				-				426				847
Foreclosed real estate expenses, net		1				-				-				-				1
Merger-related expenses		795				-				-				-				795
Operational losses		5				1,708				-				-				1,713
Regulatory assessment expenses		900				-				-				-				900
Other operating		2,436				1,018				-				245				3,699
Total noninterest expenses		27,001				27,374				-				4,605				58,980
Net income (loss) before taxes	$	13,117			$	7,757			$	-			$	(1,317	)		$	19,557
Total assets	$	2,303,368			$	115,593			$	-			$	19,622			$	2,438,583

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
	Quarter Ended
(in thousands, except per share data)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Earnings:
Net income	$	13,136			$	13,932			$	7,533			$	8,672			$	8,205
Earnings per common share, diluted		0.78				0.82				0.45				0.62				0.59
Net interest margin		6.04	%			6.05	%			5.87	%			6.41	%			6.46	%
Commercial Bank net interest margin(2)		4.36	%			4.32	%			3.99	%			4.01	%			3.90	%
Return on average assets(1)		1.60	%			1.75	%			0.96	%			1.42	%			1.40	%
Return on average equity(1)		14.17	%			15.56	%			8.50	%			12.59	%			12.53	%
Efficiency ratio		65.14	%			64.94	%			66.70	%			66.07	%			67.11	%
Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	2,739,808			$	2,678,406			$	2,630,163			$	2,107,522			$	2,021,588
Total deposits		2,940,738				2,891,333				2,761,939				2,186,224				2,100,428
Total assets		3,388,662				3,349,805				3,206,911				2,560,788				2,438,583
Total stockholders' equity		380,035				369,577				355,139				280,111				267,854
Total average portfolio loans receivable, net deferred fees		2,733,865				2,634,110				2,592,960				2,053,619				1,992,630
Total average deposits		2,841,153				2,768,284				2,611,994				2,091,294				2,010,736
Portfolio loans-to-deposit ratio (period-end balances)		93.17	%			92.64	%			95.23	%			96.40	%			96.25	%
Portfolio loans-to-deposit ratio (average balances)		96.22	%			95.15	%			99.27	%			98.20	%			99.10	%
Asset Quality Ratios:
Nonperforming assets to total assets		1.11	%			1.28	%			0.94	%			0.60	%			0.58	%
Nonperforming loans to total loans		1.37	%			1.60	%			1.15	%			0.73	%			0.70	%
Net charge-offs to average portfolio loans(1)		0.75	%			0.38	%			0.37	%			0.51	%			0.39	%
Allowance for credit losses to total loans		1.73	%			1.81	%			1.85	%			1.51	%			1.53	%
Allowance for credit losses to non-performing loans		126.51	%			119.73	%			160.88	%			206.50	%			219.40	%
Bank Capital Ratios:
Total risk based capital ratio		13.13	%			12.93	%			12.79	%			13.76	%			14.51	%
Tier-1 risk based capital ratio		11.87	%			11.67	%			11.54	%			12.50	%			13.25	%
Leverage ratio		9.39	%			9.27	%			9.17	%			9.84	%			10.36	%
Common Equity Tier-1 capital ratio		11.87	%			11.67	%			11.54	%			12.50	%			13.25	%
Tangible common equity		8.84	%			8.66	%			9.31	%			9.12	%			9.53	%
Holding Company Capital Ratios:
Total risk based capital ratio		15.30	%			14.97	%			15.48	%			16.65	%			16.98	%
Tier-1 risk based capital ratio		13.66	%			13.32	%			13.83	%			14.88	%			15.19	%
Leverage ratio		10.90	%			10.68	%			11.07	%			11.85	%			11.93	%
Common Equity Tier-1 capital ratio		13.58	%			13.24	%			13.74	%			14.78	%			15.08	%
Tangible common equity		10.22	%			9.94	%			11.07	%			10.94	%			10.98	%

_{^{____________________________________________
(1)} Annualized.
⁽²⁾ Refer to Appendix for reconciliation of non-GAAP measures.}

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (Continued)
	Quarter Ended
(in thousands, except per share data)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Composition of Loans:
Commercial real estate, non owner-occupied	$	495,341			$	484,399			$	471,329			$	403,487			$	397,080
Commercial real estate, owner-occupied		436,421				420,643				440,026				351,462				319,370
Residential real estate		710,730				693,597				688,552				623,684				601,312
Construction real estate		343,189				343,280				321,252				301,909				294,489
Commercial and industrial		593,279				594,331				554,550				271,811				255,686
Lender finance		32,494				23,165				28,574				29,546				33,294
Business equity lines of credit		2,853				3,468				3,090				2,663				2,989
Credit card, net of reserve(3)		131,029				118,709				127,766				127,098				122,217
Other consumer loans		2,727				2,200				2,089				2,045				1,930
Portfolio loans receivable	$	2,748,063			$	2,683,792			$	2,637,228			$	2,113,705			$	2,028,367
Deferred origination fees, net		(8,255	)			(5,386	)			(7,065	)			(6,183	)			(6,779	)
Portfolio loans receivable, net	$	2,739,808			$	2,678,406			$	2,630,163			$	2,107,522			$	2,021,588
Composition of Deposits:
Noninterest-bearing	$	836,979			$	812,224			$	810,928			$	718,120			$	684,574
Interest-bearing demand		319,431				296,455				238,881				266,493				266,070
Savings		12,879				12,819				13,488				3,763				4,270
Money markets		960,237				912,418				816,708				686,526				672,455
Customer time deposits		541,079				549,630				548,901				358,300				317,911
Brokered time deposits		270,133				307,787				333,033				153,022				155,148
Total deposits	$	2,940,738			$	2,891,333			$	2,761,939			$	2,186,224			$	2,100,428
Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	80,334			$	65,815			$	89,998			$	74,690			$	82,363
Mortgage loans sold		59,663				54,144				77,399				67,296				66,417
Gain on sale of loans		1,597				1,664				1,897				1,644				1,732
Purchase volume as a % of originations		91.61	%			90.73	%			90.42	%			90.98	%			96.48	%
Gain on sale as a % of loans sold(4)		2.68	%			3.07	%			2.45	%			2.44	%			2.61	%
Mortgage commissions	$	501			$	545			$	620			$	598			$	582
OpenSkyPortfolio Metrics:
Open customer accounts		585,372				563,718				552,566				548,952				537,734
Secured credit card loans, gross	$	86,400			$	81,252			$	87,226			$	89,641			$	90,961
Unsecured credit card loans, gross		46,352				38,987				42,430				39,730				33,560
Noninterest secured credit card deposits		168,936				168,796				166,355				170,750				173,499

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

Appendix

Reconciliation of Non-GAAP Measures

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company's industry. Investors should recognize that the Company's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

Core Earnings Metrics	Quarter Ended
(in thousands, except per share data)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Net Income	$	13,136			$	13,932			$	7,533			$	8,672			$	8,205
Add: Merger-Related Expenses, Net of Tax		1,070				964				2,151				557				62
Add: Non-Recurring Equity and Debt Investment Write-Down		-				-				2,620				-				-
Add: IFH ACL Provision, Net of Tax		-				-				3,169				-				-
Core Net Income	$	14,206			$	14,896			$	15,473			$	9,229			$	8,267
Weighted Average Common Shares - Diluted		16,802				16,925				16,729				13,951				13,895
Earnings per Share - Diluted	$	0.78			$	0.82			$	0.45			$	0.62			$	0.59
Core Earnings per Share - Diluted	$	0.85			$	0.88			$	0.92			$	0.66			$	0.59
Average Assets	$	3,292,533			$	3,221,964			$	3,120,107			$	2,437,870			$	2,353,868
Return on Average Assets(1)		1.60	%			1.75	%			0.96	%			1.42	%			1.40	%
Core Return on Average Assets(1)		1.73	%			1.87	%			1.97	%			1.51	%			1.41	%
Average Equity	$	371,795			$	363,115			$	352,537			$	274,087			$	263,425
Return on Average Equity(1)		14.17	%			15.56	%			8.50	%			12.59	%			12.53	%
Core Return on Average Equity(1)		15.33	%			16.64	%			17.46	%			13.40	%			12.62	%
Net Interest Income (a)	$	47,646			$	46,047			$	44,327			$	38,354			$	37,057
Noninterest Income		13,106				12,549				11,913				6,635				6,890
Total Revenue	$	60,752			$	58,596			$	56,240			$	44,989			$	43,947
Noninterest Expense	$	39,572			$	38,053			$	37,514			$	29,725			$	29,493
Efficiency Ratio(2)		65.1	%			64.9	%			66.7	%			66.1	%			67.1	%
Noninterest Income	$	13,106			$	12,549			$	11,913			$	6,635			$	6,890
Add: Non-Recurring Equity and Debt Investment Write-Down		-				-				2,620				-				-
Core Fee Revenue (b)	$	13,106			$	12,549			$	14,533			$	6,635			$	6,890
Core Revenue (a) + (b)	$	60,752			$	58,596			$	58,860			$	44,989			$	43,947
Noninterest Expense	$	39,572			$	38,053			$	37,514			$	29,725			$	29,493
Less: Merger-Related Expenses		1,398				1,266				2,615				520				83
Core Noninterest Expense	$	38,174			$	36,787			$	34,899			$	29,205			$	29,410
Core Efficiency Ratio(2)		62.8	%			62.8	%			59.3	%			64.9	%			66.9	%

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

Core Earnings Metrics	Six Months Ended
(in thousands, except per share data)	June 30, 2025				June 30, 2024
Net Income	$	27,068			$	14,767
Add: Merger-Related Expenses, Net of Tax		2,034				600
Add: Non-Recurring Equity and Debt Investment Write-Down		-				-
Add: IFH ACL Provision, Net of Tax		-				-
Core Net Income	$	29,102			$	15,367
Weighted Average Common Shares - Diluted		16,872				13,907
Earnings per Share - Diluted	$	1.60			$	1.06
Core Earnings per Share - Diluted	$	1.72			$	1.10
Average Assets	$	3,257,443			$	2,326,551
Return on Average Assets(1)		1.68	%			1.28	%
Core Return on Average Assets		1.80	%			1.33	%
Average Equity	$	367,479			$	261,159
Return on Average Equity(1)		14.85	%			11.37	%
Core Return on Average Equity		15.97	%			11.83	%
Net Interest Income (a)	$	93,693			$	72,065
Noninterest Income		25,655				12,862
Total Revenue	$	119,348			$	84,927
Noninterest Expense	$	77,625			$	58,980
Efficiency Ratio(2)		65.0	%			69.4	%
Noninterest Income	$	25,655			$	12,862
Add: Non-Recurring Equity and Debt Investment Write-Down		-				-
Core Fee Revenue (b)	$	25,655			$	12,862
Core Revenue (a) + (b)	$	119,348			$	84,927
Noninterest Expense	$	77,625			$	58,980
Less: Merger-Related Expenses		2,664				795
Core Noninterest Expense	$	74,961			$	58,185
Core Efficiency Ratio(2)		62.8	%			68.5	%

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

Commercial Bank Net Interest Margin	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Commercial Bank Net Interest Income	$	33,073			$	31,515			$	28,812			$	22,676			$	21,223
Average Interest Earning Assets		3,176,544				3,087,943				3,003,081				2,380,946				2,307,070
Less: Average Non-Commercial Bank Interest Earning Assets		132,196				128,278				133,401				129,906				119,801
Average Commercial Bank Interest Earning Assets	$	3,044,348			$	2,959,665			$	2,869,680			$	2,251,040			$	2,187,269
Commercial Bank Net Interest Margin		4.36	%			4.32	%			3.99	%			4.01	%			3.90	%

Commercial Bank Net Interest Margin	Six Months Ended
(in thousands)	June 30, 2025				June 30, 2024
Commercial Bank Net Interest Income	$	64,588			$	41,268
Average Interest Earning Assets		3,138,661				2,280,867
Less: Average Non-Commercial Bank Interest Earning Assets		130,248				118,000
Average Commercial Bank Interest Earning Assets	$	3,008,413			$	2,162,867
Commercial Bank Net Interest Margin		4.33	%			3.84	%

Commercial Bank Portfolio Loans Receivable Yield	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Portfolio Loans Receivable Interest Income	$	60,647			$	58,453			$	58,409			$	49,886			$	48,143
Less: Credit Card Loan Income		14,116				14,148				15,022				15,137				15,205
Commercial Bank Portfolio Loans Receivable Interest Income	$	46,531			$	44,305			$	43,387			$	34,749			$	32,938
Average Portfolio Loans Receivable		2,733,865				2,634,110				2,592,960				2,053,619				1,992,630
Less: Average Credit Card Loans		121,414				118,723				120,993				119,458				111,288
Total Commercial Bank Average Portfolio Loans Receivable	$	2,612,451			$	2,515,387			$	2,471,967			$	1,934,161			$	1,881,342
Commercial Bank Portfolio Loans Receivable Yield		7.14	%			7.14	%			6.98	%			7.15	%			7.04	%

Commercial Bank Portfolio Loans Receivable Yield	Six Months Ended
(in thousands)	June 30, 2025				June 30, 2024
Portfolio Loans Receivable Interest Income	$	119,100			$	94,051
Less: Credit Card Loan Income		28,264				29,662
Commercial Bank Portfolio Loans Receivable Interest Income	$	90,836			$	64,389
Average Portfolio Loans Receivable		2,684,263				1,960,001
Less: Average Credit Card Loans		120,076				110,885
Total Commercial Bank Average Portfolio Loans Receivable	$	2,564,187			$	1,849,116
Commercial Bank Portfolio Loans Receivable Yield		7.14	%			7.00	%

Pre-tax, Pre-Provision Net Revenue ("PPNR")	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Net Income	$	13,136			$	13,932			$	7,533			$	8,672			$	8,205
Add: Income Tax Expense		3,963				4,365				3,243				2,827				2,728
Add: Provision for Credit Losses		4,081				2,246				7,828				3,748				3,417
Add: Provision for Credit Losses on Unfunded Commitments		-				-				122				17				104
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	21,180			$	20,543			$	18,726			$	15,264			$	14,454

Pre-tax, Pre-Provision Net Revenue ("PPNR")	Six Months Ended
(in thousands)	June 30, 2025				June 30, 2024
Net Income	$	27,068			$	14,767
Add: Income Tax Expense		8,328				4,790
Add: Provision for Credit Losses		6,327				6,144
Add: Provision for Credit Losses on Unfunded Commitments		-				246
Pre-tax, Pre-Provision Net Revenue ("PPNR")	$	41,723			$	25,947

Core PPNR	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Net Income	$	13,136			$	13,932			$	7,533			$	8,672			$	8,205
Add: Income Tax Expense		3,963				4,365				3,243				2,827				2,728
Add: Provision for Credit Losses		4,081				2,246				7,828				3,748				3,417
Add: Provision for Credit Losses on Unfunded Commitments		-				-				122				17				104
Add: Merger-Related Expenses		1,398				1,266				2,615				520				83
Add: Non-Recurring Equity and Debt Investment Write-Down		-				-				2,620				-				-
Core PPNR	$	22,578			$	21,809			$	23,961			$	15,784			$	14,537

Core PPNR	Six Months Ended
(in thousands)	June 30, 2025				June 30, 2024
Net Income	$	27,068			$	14,767
Add: Income Tax Expense		8,328				4,790
Add: Provision for Credit Losses		6,327				6,144
Add: Provision for Credit Losses on Unfunded Commitments		-				246
Add: Merger-Related Expenses		2,664				795
Add: Non-Recurring Equity and Debt Investment Write-Down		-				-
Core PPNR	$	44,387			$	26,742

Allowance for Credit Losses to Total Portfolio Loans	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Allowance for Credit Losses	$	47,447			$	48,454			$	48,652			$	31,925			$	30,832
Total Portfolio Loans		2,739,808				2,678,406				2,630,163				2,107,522				2,021,588
Allowance for Credit Losses to Total Portfolio Loans		1.73	%			1.81	%			1.85	%			1.51	%			1.53	%

Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Allowance for Credit Losses	$	47,447			$	48,454			$	48,652			$	31,925			$	30,832
Less: Credit Card Allowance for Credit Losses		6,762				5,905				6,402				7,339				6,768
Commercial Bank Allowance for Credit Losses		40,685				42,549				42,250				24,586				24,064
Total Portfolio Loans		2,739,808				2,678,406				2,630,163				2,107,522				2,021,588
Less: Gross Credit Card Loans		126,233				115,991				122,928				121,718				116,180
Commercial Bank Portfolio Loans		2,613,575				2,562,415				2,507,235				1,985,804				1,905,408
Commercial Bank Allowance for Credit Losses to Total Portfolio Loans		1.56	%			1.67	%			1.70	%			1.24	%			1.26	%

Nonperforming Assets to Total Assets	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Total Nonperforming Assets	$	37,505			$	42,934			$	30,241			$	15,460			$	14,053
Total Assets		3,388,662				3,349,805				3,206,911				2,560,788				2,438,583
Nonperforming Assets to Total Assets		1.11	%			1.28	%			0.94	%			0.60	%			0.58	%

Nonperforming Loans to Total Portfolio Loans	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Total Nonperforming Loans	$	37,505			$	42,934			$	30,241			$	15,460			$	14,053
Total Portfolio Loans		2,739,808				2,678,406				2,630,163				2,107,522				2,021,588
Nonperforming Loans to Total Portfolio Loans		1.37	%			1.60	%			1.15	%			0.73	%			0.70	%

Net Charge-Offs to Average Portfolio Loans	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Total Net Charge-Offs	$	5,088			$	2,444			$	2,427			$	2,655			$	1,935
Total Average Portfolio Loans		2,733,865				2,634,110				2,592,960				2,053,619				1,992,630
Net Charge-Offs to Average Portfolio Loans, Annualized		0.75	%			0.38	%			0.37	%			0.51	%			0.39	%

Tangible Book Value per Share	Quarter Ended
(in thousands, except share and per share data)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Total Stockholders' Equity	$	380,035			$	369,577			$	355,139			$	280,111			$	267,854
Less: Preferred Equity		-				-				-				-				-
Less: Intangible Assets		37,773				39,641				36,943				-				-
Tangible Common Equity	$	342,262			$	329,936			$	318,196			$	280,111			$	267,854
Period End Shares Outstanding		16,581,990				16,657,168				16,662,626				13,917,891				13,910,467
Tangible Book Value per Share	$	20.64			$	19.81			$	19.10			$	20.13			$	19.26

Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Net Income	$	13,136			$	13,932			$	7,533			$	8,672			$	8,205
Add: Intangible Amortization, Net of Tax		200				199				198				-				-
Net Tangible Income	$	13,336			$	14,131			$	7,731			$	8,672			$	8,205
Average Equity		371,795				363,115				352,537				274,087				263,425
Less: Average Intangible Assets		39,552				36,896				22,890				-				-
Net Average Tangible Common Equity	$	332,243			$	326,219			$	329,647			$	274,087			$	263,425
Return on Average Equity		14.17	%			15.56	%			8.50	%			12.59	%			12.53	%
Return on Average Tangible Common Equity		16.10	%			17.57	%			9.33	%			12.59	%			12.53	%

Return on Average Tangible Common Equity	Six Months Ended
(in thousands)	June 30, 2025				June 30, 2024
Net Income	$	27,068			$	14,767
Add: Intangible Amortization, Net of Tax		399				-
Net Tangible Income	$	27,467			$	14,767
Average Equity		367,479				261,159
Less: Average Intangible Assets		38,232				-
Net Average Tangible Common Equity	$	329,247			$	261,159
Return on Average Equity		14.85	%			11.37	%
Return on Average Tangible Common Equity		16.82	%			11.37	%

Core Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Net Income, as Adjusted	$	14,206			$	14,896			$	15,473			$	9,229			$	8,267
Add: Intangible Amortization, Net of Tax		200				199				198				-				-
Core Net Tangible Income	$	14,406			$	15,095			$	15,671			$	9,229			$	8,267
Core Return on Average Tangible Common Equity		17.39	%			18.77	%			18.91	%			13.40	%			12.62	%

Core Return on Average Tangible Common Equity	Six Months Ended
(in thousands)	June 30, 2025				June 30, 2024
Net Income, as Adjusted	$	29,102			$	15,367
Add: Intangible Amortization, Net of Tax		399				-
Core Net Tangible Income	$	29,501			$	15,367
Core Return on Average Tangible Common Equity		18.07	%			11.83	%

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 $3.4 billion at June 30, 2025 and its common stock is traded in the NASDAQ Global Market under the symbol "CBNK." More information can be found at the Company's website www.CapitalBankMD.com under its investor relations page.

FORWARD-LOOKING STATEMENTS

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

While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: the strength of the United States ("U.S.") economy in general and the strength of the local economies in which we conduct operations; geopolitical concerns, including the ongoing wars in Ukraine and in the Middle East; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors and/or broader economic conditions and financial markets; 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, including the costs of compliance with potential legislation to combat cybersecurity at a state, national, or global level; climate change, and other catastrophic disasters; 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; 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: Dominic C. Canuso [phone] x1403

MEDIA CONTACT: Ed Barry [phone]

WEB SITE: www.CapitalBankMD.com