Capital Bancorp, Inc. Announces Strong First Quarter Results and Successful IFH Conversion; Continued Strong Organic Loan and Deposit Growth; NIM and Fee Income Drives Robust Returns

First Quarter 2025 Highlights

Net Income of $13.9 million, or $0.82 per share, and return on average assets (“ROA”) of 1.75%
- Core net income⁽¹⁾ of $14.9 million, or $0.88 per share, and core ROA⁽¹⁾ of 1.87%
Book value per common share of $22.19 at March 31, 2025, increased $0.87 compared to 4Q 2024, and increased $3.51 when compared to 1Q 2024.
- Tangible Book Value Per Share⁽¹⁾ of $19.81, increased 3.7% (not annualized), or $0.71⁽²⁾ as compared to 4Q 2024, and increased 6.0%, or $1.13 compared to 1Q 2024
Return on average equity (“ROE”) of 15.56%, and return on average tangible common equity (“ROTCE”)⁽¹⁾ of 17.57%
- Core ROE⁽¹⁾ of 16.64%, and core ROTCE⁽¹⁾ of 18.77%
Gross Loans grew $48.2 million, or 7.4% (annualized), during 1Q 2025, and growth of $713.9 million year-over-year including $340.4 million from organic growth and $373.5 million from the IFH acquisition
Total Deposits grew $129.4 million, or 19.0% (annualized), from 4Q 2024. Year-over-year growth of $885.6 million includes $426.7 million from organic growth, and $459.0 million from the acquisition of IFH, or 44.2% from 1Q 2024
- Customer Deposit growth of $154.6 million, or 25.8% (annualized) from 4Q 2024, and $738.5 million year-over-year, or 40.0% from 1Q 2024, including $445.0 million of organic growth, and $293.5 million from the acquisition of IFH
Net Interest Income increased $1.7 million, or 3.9% (not annualized), from 4Q 2024 due to balance sheet growth and purchase accounting accretion, and increased $11.0 million, or 31.5%, year-over-year, primarily driven by strong organic growth and the acquisition of IFH.
Net Interest Margin (“NIM”) of 6.05% increased 18 bps compared to 4Q 2024 and decreased 19 bps compared to 1Q 2024 due to the acquisition of commercial loans from IFH, diluting the impact from OpenSky^™
- Commercial Bank NIM⁽¹⁾ of 4.32% increased by 33 bps and 55 bps, compared to 4Q 2024 and 1Q 2024, respectively
- Net purchase accounting accretion of $1.5 million for 1Q 2025, increased $0.8 million compared to 4Q 2024, accounting for 20 bps of both reported NIM and Commercial Bank NIM⁽¹⁾
Fee Revenue (noninterest income) totaled $12.5 million, or 21.4% of total revenue for 1Q 2025, an increase of $0.6 million, from 4Q 2024 and $6.6 million, from 1Q 2024
The allowance for credit losses to total loans (“ACL Coverage Ratio”) equaled 1.81% at March 31, 2025 down 4 bps from 4Q 2024 and up 32 bps from 1Q 2024, primarily due to of the acquisition of IFH loans. The Commercial Bank ACL Coverage Ratio⁽¹⁾ equaled 1.67% at March 31, 2025, compared to 1.70% at December 31, 2024.
Cash Dividend of $0.10 per share declared by the Board of Directors

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_{⁽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 and other certain one-time non-reoccurring 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⁾4Q 2024 Tangible Book Value restated to $19.10 from previously reported amount of $18.77 due to exclusion of Loan Servicing Assets.}

ROCKVILLE, Md., April 28, 2025 (GLOBE NEWSWIRE) — Capital Bancorp, Inc. (the “Company”) CBNK, the holding company for Capital Bank, N.A. (the “Bank”), today reported net income of $13.9 million, or $0.82 per diluted share, for 1Q 2025, compared to net income of $7.5 million, or $0.45 per diluted share, for 4Q 2024, and $6.6 million, or $0.47 per diluted share, for 1Q 2024. Core net income⁽³⁾ for 1Q 2025 of $14.9 million, or $0.88 per diluted share, compared to $15.5 million, or $0.92 per diluted share in 4Q 2024.

The Company also declared a cash dividend on its common stock of $0.10 per share. The dividend is payable on May 28, 2025 to shareholders of record on May 12, 2025.

“The first quarter continues the momentum from 2024 and further demonstrates the value of the larger and more diversified franchise resulting from the acquisition of IFH,” said Ed Barry, CEO of the Company and the Bank. “I would like to thank Management and the teams across the organization for a successful integration of IFH in the first quarter. Our continued focused execution of our initiatives and growth objectives will build on a great start to 2025.”

“Our record GAAP earnings per share for the quarter, increased net interest margin, solid loan and deposit growth, and superior return on tangible equity all confirm that we are on the right course for continued growth. We continue to benefit from our diversified earnings platform, both in terms of overall performance and risk mitigation,” said Steven J. Schwartz, Chairman of the Company. “That said, we intend to continue to monitor closely the possible impact on our businesses from emergent governmental policies, with a view towards insulating ourselves, to the extent we can, from the effects of such policies, including interest rate and price volatility and heightened economic uncertainty.”

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.

	First Quarter 2025								Fourth Quarter 2024
^{(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	$	18,297	$	4,365	$	13,932	$	0.82	$	10,776	$	3,243	$	7,533	$	0.45
Add: Merger-Related Expenses		1,266		302		964				2,615		464		2,151
Add: Non-recurring Equity and Debt Investment Write-Down		—		—		—				2,620		—		2,620
Add: Initial IFH ACL Provision		—		—		—				4,194		1,025		3,169
Core Net Income⁽¹⁾	$	19,563	$	4,667	$	14,896	$	0.88	$	20,205	$	4,732	$	15,473	$	0.92

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

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_{¹ As used in this press release, core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes merger-related 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.}

First Quarter 2025 Results

Earnings Summary
Net income of $13.9 million, or $0.82 per diluted share, compared to net income of $7.5 million, or $0.45 per diluted share, for 4Q 2024, and $6.6 million or $0.47 per diluted share, for 1Q 2024. 1Q 2025 core net income⁽⁴⁾ of $14.9 million, or $0.88 per diluted share, compared to 4Q 2024 of $15.5 million, or $0.92 per diluted share.

Net interest income of $46.0 million increased $1.7 million, or 3.9% (not annualized), compared to 4Q 2024, and increased $11.0 million, or 31.5% year-over-year.
- Interest income of $62.8 million increased $1.1 million, or 1.7% (not annualized), over 4Q 2024, and increased $14.4 million, or 29.8%, year-over-year. The increase quarter-over-quarter was driven by increases of $1.1 million from net purchase accounting accretion, $0.7 million from interest-bearing deposits held at other financial institutions, and $0.3 million from investments held for sale, partially offset by a decrease in loan interest income of $1.1 million due to rate and portfolio mix, 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 1Q 2025 compared to $0.7 million from net purchase accounting amortization in 4Q 2024. There was no related purchase accounting accretion or amortization during 1Q 2024.
- Interest expense of $16.7 million decreased $0.7 million, or 3.8% (not annualized) compared to 4Q 2024, and increased $3.4 million, or 25.1%, year-over-year. The decrease quarter-over-quarter was primarily due to a decrease in borrowed funds partially offset by lower net purchase accounting accretion, and the increase year-over-year was driven by organic growth and the acquisition of IFH.
  - Interest expense included $1.1 million from net purchase accounting accretion in 1Q 2025 compared to $1.4 million from net purchase accounting accretion in 4Q 2024. There was no related purchase accounting accretion or amortization during 1Q 2024.
The provision for credit losses was $2.2 million, a decrease of $5.6 million from 4Q 2024. The decrease over the prior quarter was primarily driven by the recognition of the Initial IFH ACL Provision of $4.2 million in 4Q 2024, and a $2.0 million lower provision from the commercial loan portfolio partially offset by an additional $0.6 million from OpenSky^™provision in the current quarter. Net charge-offs totaled $2.4 million, or 0.38% of portfolio loans (annualized), including $2.3 million from OpenSky^™ loans. By comparison net charge-offs for 4Q 2024 totaled $2.4 million, or 0.37% of portfolio loans (annualized), including $2.1 million from OpenSky^™ loans. At March 31, 2025, the ACL Coverage Ratio was 1.81%, down 4 bps from the ratio of 1.85% at December 31, 2024, due to the payoff of certain purchase credit deteriorated (“PCD”) loans acquired from IFH, during the quarter. The provision for credit losses decreased $0.5 million, year-over-year (1Q 2024) primarily from lower commercial loan portfolio provision of $0.7 million, offset by slightly higher provision for OpenSky^™ of $0.2 million, while the ACL Coverage Ratio increased 32 bps year-over-year driven by the acquisition of IFH.

Earnings Summary (Continued)

Noninterest income of $12.5 million increased $0.6 million compared to 4Q 2024 and increased $6.6 million year-over-year primarily due to the contributions made by the businesses IFH brought to the merged entity. Core fee revenue⁽⁵⁾of $12.5 million decreased $2.0 million, as a result of $1.2 million lower government lending revenue, $0.8 million lower SBIC investment income, $0.5 million lower loan servicing, $0.4 million lower government loan servicing revenue (Windsor), offset by a loan termination fee of $0.7 million during 1Q 2025.
Noninterest expense of $38.1 million increased $0.5 million compared to 4Q 2024 and $8.6 million compared to 1Q 2024. Core noninterest expense⁽¹⁾of $36.8 million increased $1.9 million compared to 4Q 2024 and $8.0 million compared to 1Q 2024. Core comparisons include:
- Salaries and employee benefits expenses increased $1.6 million from 4Q 2024, primarily the result of $0.7 million lower deferred expenses related to loan production, $0.6 million from the seasonality of payroll related taxes, and $0.2 million in employee benefits.
- Marketing expenses increased $0.7 million from 4Q 2024, primarily due to additional OpenSky^™ advertising-related expenses due to seasonality.
- Regulatory assessment expenses increased $0.4 million from 4Q 2024, primarily due to additional assessments from the acquisition of IFH.
- Expense reduction of $0.8 million from 4Q 2024, includes $0.3 million from loan processing, $0.2 million from other operating, and $0.3 million from other areas.
- Year-over-year expense growth of $8.6 million was primarily due to the acquisition of IFH.
- Estimated total cost synergies resulting from the acquisition of IFH totaled $1.75 million in 1Q 2025, achieving the targeted savings earlier than anticipated.
Income tax expense of $4.4 million, or 23.9% of pre-tax income for 1Q 2025, increased $1.1 million from $3.2 million, or 30.1% of pre-tax income for 4Q 2024. The core effective income tax rate⁽¹⁾ for 1Q 2025 and 4Q 2024 would have been 23.7% and 22.6%, respectively.

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_{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 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 $3.3 billion at March 31, 2025 increased $142.9 million, or 18.1% (annualized), from December 31, 2024. Total assets growth year-over-year of $1.0 billion, or 44.1%, included $559.4 million acquired with the IFH acquisition, net of purchase accounting, and $465.6 million of organic growth.

Cash and cash equivalents of $294.0 million at March 31, 2025 increased $88.7 million from December 31, 2024 due to portfolio growth, and increased $208.8 million year-over-year including $130.9 million from organic growth and $77.8 million from the acquisition of IFH.
Total portfolio loans of $2.68 billion at March 31, 2025 increased $48.2 million, or 7.4% (annualized), from December 31, 2024 and increased $713.9 million year-over-year including $373.5 million from the acquisition of IFH and $340.4 million of organic growth.
- Compared to December 31, 2024, commercial and industrial loans increased $39.8 million and construction real estate loans increased $22.0 million, offset by a $9.1 million decrease in OpenSky^™ loans and a $6.3 million decrease in commercial real estate loans.
- Commercial and industrial loans, and owner-occupied commercial real estate loans totaled 37.9% of total portfolio loans at March 31, 2025, compared to 37.8% at December 31, 2024, and 29.6% at March 31, 2024.
Total deposits of $2.89 billion at March 31, 2025 increased $129.4 million, or 19.0% (annualized), from December 31, 2024, and increased $885.6 million, or 44.2% (annualized) from March 31, 2024. The increase quarter-over-quarter includes $95.7 million of growth in customer money market deposits, $57.6 million of growth in interest-bearing demand accounts, $1.3 million of noninterest-bearing deposits, and $0.7 million of customer time deposits, partially offset by a decrease in brokered time deposits of $25.2 million. The increase year-over-year is driven by $459.0 million from the acquisition of IFH and $426.7 million from organic growth.
- Insured and protected deposits were approximately $2.0 billion as of March 31, 2025 representing 70.4% of the Company’s deposit portfolio.
- Low-and-no interest bearing deposits of $1.1 billion, or 38.8% of deposits, increased $58.2 million, or 22.2% (annualized) from December 31, 2024, and increased $257.2 million, or 29.8% year-over-year, including $157.4 million of organic growth, and $91.5 million from the acquisition of IFH.
The average portfolio loans-to-deposit ratio was 95.15% for the three months ended March 31, 2025, compared to 99.27% from 4Q 2024, and 98.46% from 1Q 2024.
The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $213.5 million, or 6.4% of total assets, an effective duration of 3.0 years, with U.S. Treasury Securities representing 56% of the overall investment portfolio at March 31, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio decreased $2.3 million during the quarter to negative $9.2 million after-tax as of March 31, 2025, which represents 2.5% 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 March 31, 2025 totaled $820.9 million, compared to $803.0 from 4Q 2024. During 1Q 2025 available collateralized lines of credit of $625.4 million, unsecured lines of credit with other banks of $76.0 million and unpledged investment securities available as collateral for potential additional borrowings of $119.5 million.
Capital Positions – As of March 31, 2025, the Company reported a Common Equity Tier-1 capital ratio of 13.33%, compared to 13.74% at December 31, 2024. At March 31, 2025, the Company and the Bank maintain regulatory capital ratios that exceed all capital adequacy requirements.

Financial Metrics
Net Interest Margin – Net interest margin of 6.05% for the three months ended March 31, 2025, increased 18 bps compared to the prior quarter, and decreased 19 bps year-over-year. Commercial Bank net interest margin⁽¹⁾, of 4.32% increased 33 bps compared to the prior quarter, and increased 55 bps year-over-year. Net purchase accounting accretion for 1Q 2025 was 20 bps for NIM and Commercial Bank NIM⁽¹⁾.

The average yield on interest earning assets of 8.24% increased 7 bps compared to the prior quarter, due to portfolio mix, and decreased 39 bps year-over-year primarily due to the acquisition of commercial loans diluting the impact from OpenSky^™. The Commercial Bank Loan Yield⁽¹⁾ of 7.14% for 1Q 2025, increased 16 bps 4Q 2024, and increased 18 bps year-over-year.
The total cost of deposits of 2.42% for 1Q 2025 decreased 8 bps compared to the prior quarter due to rate and mix shift and decreased 22 bps year-over-year. The total cost of interest-bearing deposits decreased 9 bps quarter-over-quarter, and 54 bps year-over-year, to 3.37% for 1Q 2025 due to rate environment and product mix.
Net purchase accounting accretion of $1.5 million during 1Q 2025, increased $0.8 million from 4Q 2024. There was no related purchase accounting accretion or amortization during 1Q 2024.

Efficiency Ratios – The efficiency ratio was 64.9% for the three months ended March 31, 2025, compared to 66.7% for the three months ended December 31, 2024 and 72.0% for the three months ended March 31, 2024. The core efficiency ratio⁽⁶⁾ was 62.8%, for the three months ended March 31, 2025. The core efficiency ratio⁽¹⁾ was 59.3% for the three months ended December 31, 2024, and 70.2% for the three months ended March 31, 2024.

Credit Metrics and Asset Quality – The ACL Coverage Ratio equaled 1.81% at March 31, 2025, a decrease of 4 bps from December 31, 2024, and an increase of 32 bps year-over-year driven by the acquisition of IFH.

Nonperforming assets increased 27 bps to 1.21% of total assets at March 31, 2025 compared to December 31, 2024, and increased 59 bps year-over-year. Total nonaccrual loans at March 31, 2025 increased $10.2 million to $40.5 million compared to December 31, 2024, and increased $26.1 million year-over-year, mainly due to the acquisition of IFH. At March 31, 2025, special mention loans totaled $63.0 million, or 2.4% of total portfolio loans, compared to $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024, and $27.5 million, or 1.4% of total portfolio loans, at March 31, 2024. At March 31, 2025, substandard loans totaled $45.7 million, or 1.7% of total portfolio loans, compared to $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024 and $14.1 million, or 0.7% of total portfolio loans, at March 31, 2024.

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_{¹ As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related 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, ROE, ROTCE were 1.75%, 15.56%, and 17.57% respectively, for the three months ended March 31, 2025, compared to 0.96%, 8.50%, and 9.33%⁽¹⁾ respectively, for the three months ended December 31, 2024. For the three months ended March 31, 2024, ROA, ROE, and ROTCE were 1.15%, 10.19%, and 10.19%, respectively. As of March 31, 2024, the Company did not have goodwill or other intangible assets.

Core ROA⁽²⁾, core ROE⁽²⁾, and core ROTCE⁽²⁾ for the three months ended March 31, 2025 were 1.87%, 16.64%, and 18.77% respectively. Core ROA⁽²⁾, core ROE⁽²⁾, and core ROTCE⁽²⁾ for the three months ended December 31, 2024, were 1.97%, 17.46%, and 18.91%⁽¹⁾, respectively. Core ROA⁽²⁾, core ROE⁽²⁾, and core ROTCE⁽²⁾ for the three months ended March 31, 2024 were 1.24%, 11.03%, and 11.03%, respectively.

Book Value and Tangible Book Value – Book value per common share of $22.19 at March 31, 2025, increased $0.87 when compared to December 31, 2024, and increased $3.51 when compared to March 31, 2024. Tangible book value per common share⁽²⁾ increased $0.71⁽³⁾, or 3.7%, to $19.81 at March 31, 2025 when compared to December 31, 2024, and increased $1.13, or 6.0%, when compared to March 31, 2024. Tangible book value was impacted by the purchase accounting adjustments required as part of the IFH acquisition. Therefore, tangible book value per share⁽¹⁾ was equal to book value per share for periods prior to 4Q 2024.

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_{¹ Core ROTCE and core ROTCE for the three months ended December 31, 2024 were restated to 9.33% and 18.91%, respectively, from 9.47% and 19.19%, due to exclusion of Loan Servicing Assets.}
_{² 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 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.}
_{³ 4Q 2024 Tangible Book Value restated to $19.10 from previously reported amount of $18.77 due to exclusion of Loan Servicing Assets.}

Commercial Bank
Continued Portfolio Loan Growth – Gross portfolio loans increased $55.6 million at March 31, 2025 compared to December 31, 2024, including $39.8 million of commercial and industrial loans, and $22.0 million of construction real estate 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 $48.2 million increased $2.1 million from the prior quarter, driven by loan growth and higher loan yields. Interest expense of $16.6 million decreased $0.6 million, resulting from a decrease in the average balance of borrowings in 1Q 2025.

Credit Metrics – Nonperforming assets, comprised solely of nonaccrual loans, increased 27 bps to 1.21% of total assets at March 31, 2025 compared to December 31, 2024. Total nonaccrual loans at March 31, 2025 increased to $40.5 million compared to $30.2 million at December 31, 2024.

Classified and Criticized Loans – At March 31, 2025, special mention loans totaled $63.0 million, or 2.4% of total portfolio loans, compared to $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024. At March 31, 2025, substandard loans totaled $45.7 million, or 1.7% of total portfolio loans, compared to $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024.

OpenSky^™Accounts – During 1Q 2025, the number of credit card accounts of 563.7 thousand increased by 11.2 thousand, or 2.0% (not annualized) from December 31, 2024, and increased 36.8 thousand, or 7.0% year-over-year.

Loan and Deposit Balances – Loan balances, net of reserves, of $118.7 million at March 31, 2025 decreased by $9.1 million, or 28.7% (annualized), compared to December 31, 2024. Corresponding deposit balances of $168.8 million at March 31, 2025 increased $2.4 million, or 6.0% (annualized), compared to December 31, 2024. Gross unsecured loan balances of $39.0 million at March 31, 2025 decreased $3.4 million, or 32.9% (annualized), compared to $42.4 million at December 31, 2024, and increased $10.5 million year-over-year.

Revenues – Total revenue of $18.2 million decreased $1.0 million from the prior quarter. Interest income of $14.4 million decreased $1.0 million from the prior quarter. Average OpenSky^™ credit card loan balances, net of reserves and deferred fees of $118.7 million for 1Q 2025, decreased $2.3 million, or 1.9% (not annualized), compared to the prior quarter. Noninterest income of $3.7 million remained generally consistent compared to the prior quarter.

Noninterest Expense – Total noninterest expense of $13.3 million decreased $0.7 million, primarily related to advertising related expenses due to seasonality.

OpenSky^™Credit – Portfolio credit metrics continue to be generally consistent with modeled expectations during 1Q 2025. The provision for credit losses of $1.8 million increased $0.6 million when compared to the prior quarter. OpenSky’s unsecured loan product continues to be offered exclusively to current and former secured card customers in order to retain customer who have successfully improved their credit profiles. Unsecured loans have been offered by OpenSky since the fourth quarter of 2021 and have performed according to management expectations over that time period.

Capital Bank Home Loans
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% of gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $90.0 million during 4Q 2024, with $77.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.9 million, representing a 2.45% of gain on sale as a percentage of total loans sold.

Windsor Advantage
Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of Capital Bank related servicing fees, during 1Q 2025. Gross government loan servicing revenue totaled $4.6 million, including $0.9 million of Capital Bank related servicing fees, during 4Q 2024. Windsor’s total servicing portfolio was $2.6 billion at March 31, 2025, and $2.5 billion at December 31, 2024.

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited

	Quarter Ended									1Q25 vs 4Q24					1Q25 vs 1Q24
^{(in thousands, except per share data)}	March 31, 2025			December 31, 2024			March 31, 2024			$ Change			% Change		$ Change			% Change
Earnings Summary
Interest income	$	62,760		$	61,707		$	48,369		$	1,053		1.7	%	$	14,391		29.8	%
Interest expense		16,713			17,380			13,361			(667	)	(3.8	)%		3,352		25.1	%
Net interest income		46,047			44,327			35,008			1,720		3.9	%		11,039		31.5	%
Provision for credit losses		2,246			7,828			2,727			(5,582	)	(71.3	)%		(481	)	(17.6	)%
Provision for credit losses on unfunded commitments		—			122			142			(122	)	(100.0	)%		(142	)	(100.0	)%
Noninterest income		12,549			11,913			5,972			636		5.3	%		6,577		110.1	%
Noninterest expense		38,053			37,514			29,487			539		1.4	%		8,566		29.1	%
Income before income taxes		18,297			10,776			8,624			7,521		69.8	%		9,673		112.2	%
Income tax expense		4,365			3,243			2,062			1,122		34.6	%		2,303		111.7	%
Net income	$	13,932		$	7,533		$	6,562		$	6,399		84.9	%	$	7,370		112.3	%

Pre-tax pre-provision net revenue (“PPNR”) ⁽¹⁾	$	20,543		$	18,726		$	11,493		$	1,817		9.7	%	$	9,050		78.7	%
Core PPNR⁽¹⁾	$	21,809		$	23,961		$	12,205		$	(2,152	)	(9.0	)%	$	9,604		78.7	%

Common Share Data
Earnings per share – Basic	$	0.84		$	0.45		$	0.47		$	0.39		86.7	%	$	0.37		78.7	%
Earnings per share – Diluted	$	0.82		$	0.45		$	0.47		$	0.37		82.2	%	$	0.35		74.5	%
Core earnings per share – Diluted⁽¹⁾	$	0.88		$	0.92		$	0.51		$	(0.04	)	(4.3	)%	$	0.37		72.5	%
Weighted average common shares – Basic		16,666			16,595			13,919
Weighted average common shares – Diluted		16,925			16,729			13,919

Return Ratios
Return on average assets (annualized)		1.75	%		0.96	%		1.15	%
Core return on average assets (annualized)⁽¹⁾		1.87	%		1.97	%		1.24	%
Return on average equity (annualized)		15.56	%		8.50	%		10.19	%
Core return on average equity (annualized)⁽¹⁾		16.64	%		17.46	%		11.03	%
Return on average tangible common equity (annualized)⁽¹⁾		17.57	%		9.33	%		10.19	%
Core return on average tangible common equity (annualized)⁽¹⁾		18.77	%		18.91	%		11.03	%

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

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (Continued)

	Quarter Ended						Quarter Ended
	March 31,						December 31,		September 30,		June 30,
^{(in thousands, except per share data)}		2025		2024	% Change			2024		2024		2024
Balance Sheet Highlights
Assets	$	3,349,805	$	2,324,238	44.1	%	$	3,206,911	$	2,560,788	$	2,438,583
Investment securities available-for-sale		213,452		202,254	5.5	%		223,630		208,700		207,917
Mortgage loans held for sale		34,656		10,303	236.4	%		21,270		19,554		19,219
Portfolio loans receivable ⁽²⁾		2,678,406		1,964,525	36.3	%		2,630,163		2,107,522		2,021,588
Allowance for credit losses		48,454		29,350	65.1	%		48,652		31,925		30,832
Deposits		2,891,333		2,005,695	44.2	%		2,761,939		2,186,224		2,100,428
FHLB borrowings		22,000		22,000	—	%		22,000		52,000		32,000
Other borrowed funds		12,062		12,062	—	%		12,062		12,062		12,062
Total stockholders’ equity		369,577		259,465	42.4	%		355,139		280,111		267,854
Tangible common equity ⁽¹⁾		329,936		259,465	27.2	%		318,196		280,111		267,854

Common shares outstanding		16,657		13,890	19.9	%		16,663		13,918		13,910
Book value per share	$	22.19	$	18.68	18.8	%	$	21.31	$	20.13	$	19.26
Tangible book value per share⁽¹⁾	$	19.81	$	18.68	6.0	%	$	19.10	$	20.13	$	19.26
Dividends per share	$	0.10	$	0.08	25.0	%	$	0.10	$	0.10	$	0.08

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

Consolidated Statements of Income (Unaudited)
	Three Months Ended
^{(in thousands)}	March 31, 2025		December 31, 2024			September 30, 2024		June 30, 2024		March 31, 2024
Interest income
Loans, including fees	$	58,691	$	58,602		$	50,047	$	48,275	$	45,991
Investment securities available-for-sale		1,861		1,539			1,343		1,308		1,251
Federal funds sold and other		2,208		1,566			1,220		1,032		1,127
Total interest income		62,760		61,707			52,610		50,615		48,369

Interest expense
Deposits		16,512		16,385			13,902		13,050		12,833
Borrowed funds		201		995			354		508		528
Total interest expense		16,713		17,380			14,256		13,558		13,361

Net interest income		46,047		44,327			38,354		37,057		35,008
Provision for credit losses		2,246		7,828			3,748		3,417		2,727
Provision for credit losses on unfunded commitments		—		122			17		104		142
Net interest income after provision for credit losses		43,801		36,377			34,589		33,536		32,139
Noninterest income
Service charges on deposits		258		241			235		200		207
Credit card fees		3,722		3,733			4,055		4,330		3,881
Mortgage banking revenue		1,831		1,821			1,882		1,990		1,453
Government lending revenue		1,096		2,301			—		—		—
Government loan servicing revenue		3,568		3,993			—		—		—
Loan servicing rights (government guaranteed)		472		1,013			—		—		—
Non-recurring equity and debt investment write-down		—		(2,620	)		—		—		—
Other income		1,602		1,431			463		370		431
Total noninterest income		12,549		11,913			6,635		6,890		5,972
Noninterest expenses
Salaries and employee benefits		18,067		16,513			13,345		13,272		12,907
Occupancy and equipment		2,910		2,976			1,791		1,864		1,613
Professional fees		2,112		2,150			1,980		1,769		1,947
Data processing		7,112		7,210			6,930		6,788		6,761
Advertising		1,779		1,032			1,223		2,072		2,032
Loan processing		743		969			615		476		371
Foreclosed real estate expenses, net		1		—			1		—		1
Merger-related expenses		1,266		2,615			520		83		712
Operational losses		903		993			1,008		782		931
Regulatory assessment expenses		889		484			427		553		473
Other operating		2,271		2,572			1,885		1,834		1,739
Total noninterest expenses		38,053		37,514			29,725		29,493		29,487
Income before income taxes		18,297		10,776			11,499		10,933		8,624
Income tax expense		4,365		3,243			2,827		2,728		2,062
Net income	$	13,932	$	7,533		$	8,672	$	8,205	$	6,562


Consolidated Balance Sheets
	(unaudited)			(audited)			(unaudited)			(unaudited)			(unaudited)
^{(in thousands, except share data)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets
Cash and due from banks	$	27,836		$	25,433		$	23,462		$	19,294		$	12,361
Interest-bearing deposits at other financial institutions		266,092			179,841			133,180			117,160			72,787
Federal funds sold		59			58			58			57			56
Total cash and cash equivalents		293,987			205,332			156,700			136,511			85,204
Investment securities available-for-sale		213,452			223,630			208,700			207,917			202,254
Restricted investments		7,031			4,479			5,895			4,930			4,441
Loans held for sale		34,656			21,270			19,554			19,219			10,303
Portfolio loans receivable, net of deferred fees and costs		2,678,406			2,630,163			2,107,522			2,021,588			1,964,525
Less allowance for credit losses		(48,454	)		(48,652	)		(31,925	)		(30,832	)		(29,350	)
Total portfolio loans held for investment, net		2,629,952			2,581,511			2,075,597			1,990,756			1,935,175
Premises and equipment, net		15,085			15,525			5,959			5,551			4,500
Accrued interest receivable		19,458			16,664			12,468			12,162			12,258
Goodwill		24,085			21,126			—			—			—
Intangible assets		13,861			14,072			—			—			—
Core deposit intangibles		1,695			1,745			—			—			—
Loan servicing assets		2,244			5,511			—			—			—
Deferred tax asset		15,902			16,670			10,748			12,150			12,311
Bank owned life insurance		44,335			43,956			38,779			38,414			38,062
Other assets		34,062			35,420			26,388			10,973			19,730
Total assets	$	3,349,805		$	3,206,911		$	2,560,788		$	2,438,583		$	2,324,238

Liabilities
Deposits
Noninterest-bearing	$	812,224		$	810,928		$	718,120		$	684,574		$	665,812
Interest-bearing		2,079,109			1,951,011			1,468,104			1,415,854			1,339,883
Total deposits		2,891,333			2,761,939			2,186,224			2,100,428			2,005,695
Federal Home Loan Bank advances		22,000			22,000			52,000			32,000			22,000
Other borrowed funds		12,062			12,062			12,062			12,062			12,062
Accrued interest payable		9,995			9,393			8,503			6,573			6,009
Other liabilities		44,838			46,378			21,888			19,666			19,007
Total liabilities		2,980,228			2,851,772			2,280,677			2,170,729			2,064,773

Stockholders’ equity
Common stock		167			167			139			139			139
Additional paid-in capital		128,692			128,598			55,585			55,005			54,229
Retained earnings		249,925			237,843			232,995			225,824			218,731
Accumulated other comprehensive loss		(9,207	)		(11,469	)		(8,608	)		(13,114	)		(13,634	)
Total stockholders’ equity		369,577			355,139			280,111			267,854			259,465
Total liabilities and stockholders’ equity	$	3,349,805		$	3,206,911		$	2,560,788		$	2,438,583		$	2,324,238

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, 2025						Three Months Ended December 31, 2024						Three Months Ended March 31, 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	$	203,053	$	2,138	4.27	%	$	140,206	$	1,446	4.10	%	$	84,531	$	1,049	4.99	%
Federal funds sold		58		1	6.99			58		—	—			56		1	7.18
Investment securities available-for-sale		235,605		1,861	3.20			236,951		1,539	2.58			233,231		1,251	2.16
Restricted investments		5,761		69	4.86			7,292		120	6.55			4,601		77	6.73
Loans held for sale		9,356		238	10.32			25,614		193	3.00			4,872		83	6.85
Portfolio loans receivable⁽²⁾⁽³⁾		2,634,110		58,453	9.00			2,592,960		58,409	8.96			1,927,372		45,908	9.58
Total interest earning assets		3,087,943		62,760	8.24			3,003,081		61,707	8.17			2,254,663		48,369	8.63
Noninterest earning assets		134,021						117,026						44,571
Total assets	$	3,221,964					$	3,120,107					$	2,299,234

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	242,355		368	0.62		$	257,446		424	0.66		$	183,217		110	0.24
Savings		13,204		18	0.55			13,497		20	0.59			4,841		1	0.08
Money market accounts		869,978		7,399	3.45			763,526		7,131	3.72			682,414		7,136	4.21
Time deposits		859,729		8,727	4.12			847,618		8,810	4.13			449,963		5,586	4.99
Borrowed funds		34,062		201	2.39			97,116		995	4.08			58,963		528	3.60
Total interest-bearing liabilities		2,019,328		16,713	3.36			1,979,203		17,380	3.49			1,379,398		13,361	3.90
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		56,503						58,460						23,820
Noninterest-bearing deposits		783,018						729,907						637,124
Stockholders’ equity		363,115						352,537						258,892
Total liabilities and stockholders’ equity	$	3,221,964					$	3,120,107					$	2,299,234

Net interest spread					4.88	%					4.68	%					4.73	%
Net interest income			$	46,047					$	44,327					$	35,008
Net interest margin⁽⁴⁾					6.05	%					5.87	%					6.24	%

_______________
_{⁽¹⁾Annualized.}
_{⁽²⁾Includes nonaccrual loans.}
_{⁽³⁾For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, collectively, Commercial Bank Loan Yield was 7.14%, 6.98% and 6.96%, respectively.}
_{⁽⁴⁾For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, collectively, Commercial Bank Net Interest Margin was 4.32%, 3.99% and 3.77%, 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, Capital Bank Home Loans (the Company’s mortgage loan division), OpenSky^™ (the Company’s credit card division) and Windsor Advantage.

Effective January 1, 2024, the Company allocated certain expenses previously recorded directly to the Commercial Bank segment to the other segments. These expenses are for shared services also consumed by OpenSky^™, CBHL, and Windsor. The Company performs an allocation process based on several metrics the Company believes more accurately ascribe shared service overhead to each segment. The Company believes this reflects the cost of support for each segment that should be considered in assessing segment performance. Historical information has been recast to reflect financial information consistently with the 2024 presentation.

The following schedule presents financial information for the periods indicated. Total assets are presented as of March 31, 2025, December 31, 2024, and March 31, 2024.

Segments

For the three months ended March 31, 2025

^{(in thousands)}

Commercial
Bank

CBHL

OpenSky^™

Windsor
Advantage

Consolidated

Interest income

48,164

152

14,444

—

62,760

Interest expense

16,649

—

16,713

Net interest income

31,515

14,444

—

46,047

Provision for credit losses

446

—

1,800

—

2,246

Net interest income after provision

31,069

12,644

—

43,801

Noninterest income

2,474

1,736

3,733

4,606

12,549

Noninterest expense⁽¹⁾

18,560

2,531

13,302

3,660

38,053

Net income (loss) before taxes

14,983

(707

)

3,075

946

18,297

Total assets

3,192,327

14,092

119,636

23,750

3,349,805

For the three months ended December 31, 2024

^{(in thousands)}

Commercial
Bank

CBHL

OpenSky^™

Windsor
Advantage

Consolidated

Interest income

46,061

192

15,454

—

61,707

Interest expense

17,249

131

—

17,380

Net interest income

28,812

15,454

—

44,327

Provision for credit losses

6,651

—

1,177

—

7,828

Provision for credit losses on unfunded commitments

122

—

122

Net interest income after provision

22,039

14,277

—

36,377

Noninterest income

1,928

1,676

3,743

4,566

11,913

Noninterest expense⁽¹⁾

19,872

2,377

12,595

2,670

37,514

Net income (loss) before taxes

4,095

(640

)

5,425

1,896

10,776

Total assets

3,033,792

21,691

125,913

25,515

3,206,911

For the three months ended March 31, 2024

^{(in thousands)}

Commercial
Bank

CBHL

OpenSky^™

Windsor
Advantage

Consolidated

Interest income

33,365

14,921

—

48,369

Interest expense

13,320

—

13,361

Net interest income

20,045

14,921

—

35,008

Provision for credit losses

1,168

—

1,559

—

2,727

Provision for credit losses on unfunded commitments

142

—

142

Net interest income after provision

18,735

13,362

—

32,139

Noninterest income

705

1,352

3,915

—

5,972

Noninterest expense⁽¹⁾

13,783

2,105

13,599

—

29,487

Net income (loss) before taxes

5,657

(711

)

3,678

—

8,624

Total assets

2,208,135

10,785

105,318

—

2,324,238

________________________
_{⁽¹⁾Noninterest expense includes $6.4 million, $6.3 million, and $6.1 million in data processing expense in OpenSky’s^™ segment for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.}

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited
	Quarter Ended
^{(in thousands, except per share data)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Earnings:
Net income	$	13,932		$	7,533		$	8,672		$	8,205		$	6,562
Earnings per common share, diluted		0.82			0.45			0.62			0.59			0.47
Net interest margin		6.05	%		5.87	%		6.41	%		6.46	%		6.24	%
Commercial Bank net interest margin⁽²⁾		4.32	%		3.99	%		4.01	%		3.90	%		3.77	%
Return on average assets⁽¹⁾		1.75	%		0.96	%		1.42	%		1.40	%		1.15	%
Return on average equity⁽¹⁾		15.56	%		8.50	%		12.59	%		12.53	%		10.19	%
Efficiency ratio		64.94	%		66.70	%		66.07	%		67.11	%		71.95	%

Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	2,678,406		$	2,630,163		$	2,107,522		$	2,021,588		$	1,964,525
Total deposits		2,891,333			2,761,939			2,186,224			2,100,428			2,005,695
Total assets		3,349,805			3,206,911			2,560,788			2,438,583			2,324,238
Total stockholders’ equity		369,577			355,139			280,111			267,854			259,465
Total average portfolio loans receivable, net deferred fees		2,634,110			2,592,960			2,053,619			1,992,630			1,927,372
Total average deposits		2,768,284			2,611,994			2,091,294			2,010,736			1,957,559
Portfolio loans-to-deposit ratio (period-end balances)		92.64	%		95.23	%		96.40	%		96.25	%		97.95	%
Portfolio loans-to-deposit ratio (average balances)		95.15	%		99.27	%		98.20	%		99.10	%		98.46	%

Asset Quality Ratios:
Nonperforming assets to total assets		1.21	%		0.94	%		0.60	%		0.58	%		0.62	%
Nonperforming loans to total loans		1.51	%		1.15	%		0.73	%		0.70	%		0.73	%
Net charge-offs to average portfolio loans ⁽¹⁾		0.38	%		0.37	%		0.51	%		0.39	%		0.41	%
Allowance for credit losses to total loans		1.81	%		1.85	%		1.51	%		1.53	%		1.49	%
Allowance for credit losses to non-performing loans		119.73	%		160.88	%		206.50	%		219.40	%		204.37	%

Bank Capital Ratios:
Total risk based capital ratio		13.00	%		12.79	%		13.76	%		14.51	%		14.36	%
Tier-1 risk based capital ratio		11.75	%		11.54	%		12.50	%		13.25	%		13.10	%
Leverage ratio		9.27	%		9.17	%		9.84	%		10.36	%		10.29	%
Common Equity Tier-1 capital ratio		11.75	%		11.54	%		12.50	%		13.25	%		13.10	%
Tangible common equity		8.66	%		9.31	%		9.12	%		9.53	%		9.66	%
Holding Company Capital Ratios:
Total risk based capital ratio		15.05	%		15.48	%		16.65	%		16.98	%		16.83	%
Tier-1 risk based capital ratio		13.41	%		13.83	%		14.88	%		15.19	%		15.03	%
Leverage ratio		10.68	%		11.07	%		11.85	%		11.93	%		11.87	%
Common Equity Tier-1 capital ratio		13.33	%		13.74	%		14.78	%		15.08	%		14.92	%
Tangible common equity		9.94	%		11.07	%		10.94	%		10.98	%		11.16	%

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

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited (Continued)
	Quarter Ended
^{(in thousands, except per share data)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Composition of Loans:
Commercial real estate, non owner-occupied	$	484,399		$	471,329		$	403,487		$	397,080		$	377,224
Commercial real estate, owner-occupied		420,643			440,026			351,462			319,370			330,840
Residential real estate		693,597			688,552			623,684			601,312			577,112
Construction real estate		343,280			321,252			301,909			294,489			290,016
Commercial and industrial		594,331			554,550			271,811			255,686			254,577
Lender finance		23,165			28,574			29,546			33,294			13,484
Business equity lines of credit		3,468			3,090			2,663			2,989			14,768
Credit card, net of reserve⁽²⁾		118,709			127,766			127,098			122,217			111,898
Other consumer loans		2,200			2,089			2,045			1,930			738
Portfolio loans receivable	$	2,683,792		$	2,637,228		$	2,113,705		$	2,028,367		$	1,970,657
Deferred origination fees, net		(5,386	)		(7,065	)		(6,183	)		(6,779	)		(6,132	)
Portfolio loans receivable, net	$	2,678,406		$	2,630,163		$	2,107,522		$	2,021,588		$	1,964,525

Composition of Deposits:
Noninterest-bearing	$	812,224		$	810,928		$	718,120		$	684,574		$	665,812
Interest-bearing demand		296,455			238,881			266,493			266,070			193,963
Savings		12,819			13,488			3,763			4,270			4,525
Money markets		912,418			816,708			686,526			672,455			678,435
Customer time deposits		549,630			548,901			358,300			317,911			302,319
Brokered time deposits		307,787			333,033			153,022			155,148			160,641
Total deposits	$	2,891,333		$	2,761,939		$	2,186,224		$	2,100,428		$	2,005,695

Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	65,815		$	89,998		$	74,690		$	82,363		$	52,080
Mortgage loans sold		54,144			77,399			67,296			66,417			40,377
Gain on sale of loans		1,664			1,897			1,644			1,732			1,238
Purchase volume as a % of originations		90.73	%		90.42	%		90.98	%		96.48	%		97.83	%
Gain on sale as a % of loans sold⁽³⁾		3.07	%		2.45	%		2.44	%		2.61	%		3.07	%
Mortgage commissions	$	545		$	620		$	598		$	582		$	490

OpenSky^™ Portfolio Metrics:
Open customer accounts		563,718			552,566			548,952			537,734			526,950
Secured credit card loans, gross	$	81,252		$	87,226		$	89,641		$	90,961		$	85,663
Unsecured credit card loans, gross		38,987			42,430			39,730			33,560			28,508
Noninterest secured credit card deposits		168,796			166,355			170,750			173,499			171,771

_______________
_{⁽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)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Net Income	$	13,932		$	7,533		$	8,672		$	8,205		$	6,562
Add: Merger-Related Expenses, net of tax		964			2,151			557			62			538
Add: Non-recurring equity and debt investment write-down		—			2,620			—			—			—
Add: IFH ACL Provision, net of tax		—			3,169			—			—			—
Core Net Income	$	14,896		$	15,473		$	9,229		$	8,267		$	7,100

Weighted Average Common Shares – Diluted		16,925			16,729			13,951			13,895			13,919
Earnings per Share – Diluted	$	0.82		$	0.45		$	0.62		$	0.59		$	0.47
Core Earnings per Share – Diluted	$	0.88		$	0.92		$	0.66		$	0.59		$	0.51

Average Assets	$	3,221,964		$	3,120,107		$	2,437,870		$	2,353,868		$	2,299,234
Return on Average Assets⁽¹⁾		1.75	%		0.96	%		1.42	%		1.40	%		1.15	%
Core Return on Average Assets⁽¹⁾		1.87	%		1.97	%		1.51	%		1.41	%		1.24	%

Average Equity	$	363,115		$	352,537		$	274,087		$	263,425		$	258,892
Return on Average Equity⁽¹⁾		15.56	%		8.50	%		12.59	%		12.53	%		10.19	%
Core Return on Average Equity⁽¹⁾		16.64	%		17.46	%		13.40	%		12.62	%		11.03	%

Net Interest Income (a)	$	46,047		$	44,327		$	38,354		$	37,057		$	35,008
Noninterest Income		12,549			11,913			6,635			6,890			5,972
Total Revenue	$	58,596		$	56,240		$	44,989		$	43,947		$	40,980
Noninterest Expense	$	38,053		$	37,514		$	29,725		$	29,493		$	29,487
Efficiency Ratio⁽²⁾		64.9	%		66.7	%		66.1	%		67.1	%		72.0	%

Noninterest Income	$	12,549		$	11,913		$	6,635		$	6,890		$	5,972
Add: Non-recurring equity and debt investment write-down		—			2,620			—			—			—
Core Fee Revenue (b)	$	12,549		$	14,533		$	6,635		$	6,890		$	5,972
Core Revenue (a) + (b)	$	58,596		$	58,860		$	44,989		$	43,947		$	40,980

Noninterest Expense	$	38,053		$	37,514		$	29,725		$	29,493		$	29,487
Less: Merger-Related Expenses		1,266			2,615			520			83			712
Core Noninterest Expense	$	36,787		$	34,899		$	29,205		$	29,410		$	28,775
Core Efficiency Ratio⁽²⁾		62.8	%		59.3	%		64.9	%		66.9	%		70.2	%

_______________
_{⁽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)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Commercial Bank Net Interest Income	$	31,515		$	28,812		$	22,676		$	21,223		$	20,045
Average Interest Earning Assets		3,087,943			3,003,081			2,380,946			2,307,070			2,254,663
Less: Average Non-Commercial Bank Interest Earning Assets		128,278			133,401			129,906			119,801			116,197
Average Commercial Bank Interest Earning Assets	$	2,959,665		$	2,869,680		$	2,251,040		$	2,187,269		$	2,138,466
Commercial Bank Net Interest Margin		4.32	%		3.99	%		4.01	%		3.90	%		3.77	%

Commercial Bank Portfolio Loans Receivable Yield	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Portfolio Loans Receivable Interest Income	$	58,453		$	58,409		$	49,886		$	48,143		$	45,908
Less: Credit Card Loan Income		14,148			15,022			15,137			15,205			14,457
Commercial Bank Portfolio Loans Receivable Interest Income	$	44,305		$	43,387		$	34,749		$	32,938		$	31,451
Average Portfolio Loans Receivable		2,634,110			2,592,960			2,053,619			1,992,630			1,927,372
Less: Average Credit Card Loans		118,723			120,993			119,458			111,288			110,483
Total Commercial Bank Average Portfolio Loans Receivable	$	2,515,387		$	2,471,967		$	1,934,161		$	1,881,342		$	1,816,889
Commercial Bank Portfolio Loans Receivable Yield		7.14	%		6.98	%		7.15	%		7.04	%		6.96	%

Pre-tax, Pre-Provision Net Revenue (“PPNR”)	Quarter Ended
^{(in thousands)}	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024

Net Income	$	13,932	$	7,533	$	8,672	$	8,205	$	6,562
Add: Income Tax Expense		4,365		3,243		2,827		2,728		2,062
Add: Provision for Credit Losses		2,246		7,828		3,748		3,417		2,727
Add: Provision for Credit Losses on Unfunded Commitments		—		122		17		104		142
Pre-tax, Pre-Provision Net Revenue (“PPNR”)	$	20,543	$	18,726	$	15,264	$	14,454	$	11,493

Core PPNR	Quarter Ended
^{(in thousands)}	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024

Net Income	$	13,932	$	7,533	$	8,672	$	8,205	$	6,562
Add: Income Tax Expense		4,365		3,243		2,827		2,728		2,062
Add: Provision for Credit Losses		2,246		7,828		3,748		3,417		2,727
Add: Provision for Credit Losses on Unfunded Commitments		—		122		17		104		142
Add: Merger-Related Expenses		1,266		2,615		520		83		712
Add: Non-recurring equity and debt investment write-down		—		2,620		—		—		—
Core PPNR	$	21,809	$	23,961	$	15,784	$	14,537	$	12,205

Allowance for Credit Losses to Total Portfolio Loans	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Allowance for Credit Losses	$	48,454		$	48,652		$	31,925		$	30,832		$	29,350
Total Portfolio Loans		2,678,406			2,630,163			2,107,522			2,021,588			1,964,525
Allowance for Credit Losses to Total Portfolio Loans		1.81	%		1.85	%		1.51	%		1.53	%		1.49	%

Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Allowance for Credit Losses	$	48,454		$	48,652		$	31,925		$	30,832		$	29,350
Less: Credit Card Allowance for Credit Losses		5,905			6,402			7,339			6,768			5,991
Commercial Bank Allowance for Credit Losses		42,549			42,250			24,586			24,064			23,359
Total Portfolio Loans		2,678,406			2,630,163			2,107,522			2,021,588			1,964,525
Less: Gross Credit Card Loans		115,991			122,928			121,718			116,180			106,572
Commercial Bank Portfolio Loans		2,562,415			2,507,235			1,985,804			1,905,408			1,857,953
Commercial Bank Allowance for Credit Losses to Total Portfolio Loans		1.67	%		1.70	%		1.24	%		1.26	%		1.26	%

Nonperforming Assets to Total Assets	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Total Nonperforming Assets	$	40,471		$	30,241		$	15,460		$	14,053		$	14,361
Total Assets		3,349,805			3,206,911			2,560,788			2,438,583			2,324,238
Nonperforming Assets to Total Assets		1.21	%		0.94	%		0.60	%		0.58	%		0.62	%

Nonperforming Loans to Total Portfolio Loans	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Total Nonperforming Loans	$	40,471		$	30,241		$	15,460		$	14,053		$	14,361
Total Portfolio Loans		2,678,406			2,630,163			2,107,522			2,021,588			1,964,525
Nonperforming Loans to Total Portfolio Loans		1.51	%		1.15	%		0.73	%		0.70	%		0.73	%

Net Charge-Offs to Average Portfolio Loans	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Total Net Charge-Offs	$	2,444		$	2,427		$	2,655		$	1,935		$	1,987
Total Average Portfolio Loans		2,634,110			2,592,960			2,053,619			1,992,630			1,927,372
Net Charge-Offs to Average Portfolio Loans, Annualized		0.38	%		0.37	%		0.51	%		0.39	%		0.41	%

Tangible Book Value per Share	Quarter Ended
^{(in thousands, except share and per share data)}	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024

Total Stockholders’ Equity	$	369,577	$	355,139	$	280,111	$	267,854	$	259,465
Less: Preferred Equity		—		—		—		—		—
Less: Intangible Assets		39,641		36,943		—		—		—
Tangible Common Equity	$	329,936	$	318,196	$	280,111	$	267,854	$	259,465
Period End Shares Outstanding		16,657,168		16,662,626		13,917,891		13,910,467		13,889,563
Tangible Book Value per Share	$	19.81	$	19.10	$	20.13	$	19.26	$	18.68

Return on Average Tangible Common Equity	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Net Income	$	13,932		$	7,533		$	8,672		$	8,205		$	6,562
Add: Intangible Amortization, Net of Tax		199			198			—			—			—
Net Tangible Income	$	14,131		$	7,731		$	8,672		$	8,205		$	6,562
Average Equity		363,115			352,537			274,087			263,425			258,892
Less: Average Intangible Assets		36,896			22,890			—			—			—
Net Average Tangible Common Equity	$	326,219		$	329,647		$	274,087		$	263,425		$	258,892
Return on Average Equity		15.56	%		8.50	%		12.59	%		12.53	%		10.19	%
Return on Average Tangible Common Equity		17.57	%		9.33	%		12.59	%		12.53	%		10.19	%

Core Return on Average Tangible Common Equity	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Net Income, as Adjusted	$	14,896		$	15,473		$	9,229		$	8,267		$	7,100
Add: Intangible Amortization, Net of Tax		199			198			—			—			—
Core Net Tangible Income	$	15,095		$	15,671		$	9,229		$	8,267		$	7,100
Core Return on Average Tangible Common Equity		18.77	%		18.91	%		13.40	%		12.62	%		11.03	%

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 $3.3 billion at March 31, 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: changes in general economic, political, or industry conditions; 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; 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, including any enhanced regulatory, compliance, credit and reputational risks and costs; the expected cost savings, synergies and other financial benefits from the acquisition of IFH or any other acquisition the Company has made or may make might not be realized within the expected time frames or at all; the effect of 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 Canuso (301) 468-8848 x1403

MEDIA CONTACT: Ed Barry (240) 283-1912

WEB SITE: www.CapitalBankMD.com