SEC Filing | Capital Bancorp, Inc.

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cbnk-20250428

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 28, 2025

CAPITAL BANCORP, INC.

(Exact name of registrant as specified in its charter)


Maryland	001-38671	52-2083046
(State or other jurisdiction of incorporation or organization)	(Commission file number)	(IRS Employer Identification No.)

2275 Research Boulevard, Suite 600, Rockville, Maryland 20850

(Address of principal executive offices) (Zip Code)

(301) 468-8848

Registrant’s telephone number, including area code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

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

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

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

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

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	CBNK	NASDAQ Stock Market

Item 2.02 Results of Operations and Financial Disclosure

On April 28, 2025, Capital Bancorp, Inc. (the “Company”) issued a press release announcing the Company’s unaudited financial results for the three months ended March 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and hereby incorporated by reference. A presentation regarding the Company's financial results for the three months ended March 31, 2025 is furnished as Exhibit 99.2 and incorporated herein by reference.

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

Item 8.01. Other Events

On April 25, 2025, the Company's Board of Directors declared a $0.10 per share dividend, payable on May 28, 2025 to stockholders of record on May 12, 2025.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits


99.1			Press Release, dated April 28, 2025.

99.2			Investor Presentation March 2025.

104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			CAPITAL BANCORP, INC.


Date: April 28, 2025			By: /s/ Dominic Canuso
			Name: Dominic Canuso
			Title: Chief Financial Officer

Document

https://cdn.kscope.io/1a0079cb41fb69510a961b5cfa2372b4-capitalbancorplogoa21.jpg

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

(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, Maryland, April 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 $13.9 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(1) 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.

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(1) 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(1) 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.

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(1) 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.

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.

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		64		—		—		16,713
Net interest income	31,515		88		14,444		—		46,047
Provision for credit losses	446		—		1,800		—		2,246

Net interest income after provision	31,069		88		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		61		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		61		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	$	83	$	14,921	$	—	$	48,369
Interest expense	13,320		41		—		—		13,361
Net interest income	20,045		42		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		42		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.

Appendix

Reconciliation of Non-GAAP Measures


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).

Appendix

Reconciliation of Non-GAAP Measures


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

Appendix

Reconciliation of Non-GAAP Measures


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%

Appendix

Reconciliation of Non-GAAP Measures


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

investoroverview03312025

1Q 2025 Investor Overview

Forward Looking Statements The statements contained in this presentation that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on Capital Bancorp, Inc. (the “Company” or “Capital”) including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, and shareholder value creation. These statements are often, but not always, made through the use of words or phrases such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” "projects", "can", "ongoing", “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. The inclusion of or reference to forward-looking information in this presentation should not be regarded as a representation by Capital or any other person that the future plans, estimates or expectations contemplated by the Company will be achieved. Any or all of the forward-looking statements in (or conveyed orally regarding) this presentation may turn out to be inaccurate. Accordingly, you are cautioned not to place undue reliance on forward-looking statements and that any such forward- looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the expected results expressed or implied by such forward-looking statements. 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 IFHI 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. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of Capital after the date hereof. Certain of the information contained herein may be derived from information provided by industry sources. The Company believes that such information is accurate and that the sources from which it has been obtained are reliable. Capital cannot guarantee the accuracy of such information, however, and has not independently verified such information. While Capital is not aware of any misstatements regarding the industry data presented in this presentation, Capital's estimates involve risks and uncertainties and are subject to change based on various factors. Similarly, Capital believes that its internal research is reliable, even though such research has not been verified by independent sources. Non-U.S. GAAP Financial Measures This presentation may include certain non–U.S. generally accepted accounting principles ("GAAP") financial measures intended to supplement, not substitute for, comparable GAAP measures. These non-GAAP financial measures should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the Company's non-GAAP financial measures as tools for comparison. If included in this presentation, see the Appendix to this presentation for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures. Core Financial Measures As used in this presentation, core net income, core fee revenue, core ROA, core ROE, ROTCE, core ROTCE, Commercial Bank NIM, Commercial Bank Loan Yield, Commercial Bank ACL Coverage Ratio, and Tangible Book Value are non-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 to this presentation. 2

(in millions except per share data) Balance Sheet 1Q25 4Q24 Annualized 1Q24 YoY Assets $ 3,350 $ 3,207 18.1% $ 2,324 44.1% Portfolio Loans 2,678 2,630 7.4% 1,965 36.3% Deposits 2,891 2,762 19.0% 2,006 44.2% Quarterly Financial Performance(1) 1Q25 4Q24 QoQ 1Q24 YoY Earnings per Share, Diluted $ 0.82 $ 0.45 82.2% $ 0.47 74.5% Core Earnings per Share, Diluted(2) $ 0.88 $ 0.92 (4.3)% $ 0.51 72.5% Book Value per Share $ 22.19 $ 21.31 4.1% $ 18.68 18.8% Tangible Book Value per Share(2) $ 19.81 $ 19.10 3.7% $ 18.68 6.0% Return on Average Assets (“ROA”) 1.75% 0.96% 79 bps 1.15% 60 bps Core ROA(2) 1.87% 1.97% -10 bps 1.24% 63 bps Return on Average Tangible Common Equity (“ROTCE”)(2) 17.57% 9.33% 824 bps 10.19% 738 bps Core ROTCE(2) 18.77% 18.91% -14 bps 11.03% 774 bps Efficiency Ratio 64.9% 66.7% -176 bps 72.0% -701 bps Core Efficiency Ratio(2) 62.8% 59.3% 349 bps 70.2% -744 bps Net Interest Margin 6.05% 5.87% 18 bps 6.24% -19 bps Commercial Bank Net Interest Margin(2) 4.32% 3.99% 33 bps 3.77% 55 bps Capital Bancorp, Inc. (NASDAQ-CBNK) Financial Highlights Corporate Timeline Founded as Harbor Capital National Bank Recapitalized by investor group led by Stephen Ashman Acquired three failed institutions including OpenSky® CEO Ed Barry joined Capital Bank Assets exceed $1 billion Successful IPO and inclusion in R2000 OpenSky® accounts exceed 168,000 1999 2002 2011 2012 2017 2018 Originated $371 million SBA-PPP loans (2020 & 2021) 2020 Assets exceed $2 billion OpenSky® accounts exceed 700,000 Dividend initiated 2021 (1) Performance metrics are annualized throughout this presentation (2) Refer to Appendix for reconciliation of non-GAAP measures Assets exceed $3.2 billion Capital Bank completes acquisition of IFH 2024 3

$2.6Bn Q1 '25 Servicing Portfolio $4.6mm Q1 '25 Revenue3 • Loan service provider that offers community banks and credit unions with a comprehensive outsourced U.S. Small Business Association (“SBA”) 7(a) and U.S. Department of Agriculture (“USDA”) lending platform • Servicing portfolio complements USDA / SBA gain on sale revenue within commercial bank • Poised to benefit from higher industry-wide SBA volumes Q1 2025 5 CBNK Business Model is Uniquely Diversified Source: Company Documents. Note: CBNK financial metrics as of March 31, 2025 unless otherwise stated. 1 Volume in FY 2021 was approximately $1.0 billion and volume in FY 2022 was approximately $300 million. 2 Credit card loans are presented net of reserve for interest and fees. 3 Includes $1.0 million of Capital Bank related servicing fees 4 Excludes $1.8 million loss in Capital Bank Home Loans, $1.4 of net income in Church Street Capital and $0.2mm of other income. 5 Excludes $707k of net loss in Capital Bank Home Loans. Commercial Bank OpenSky Windsor Advantage Commercial Banking Government Guaranty Lending (GGL) • Nationwide GGL business with niche expertise in Solar and Renewable Energy • Strong C&I pipeline with proven ability to originate $150+ million per year of loans $2.6Bn Portfolio Gross Loans, ex. OpenSky $2.4Bn Deposits • Focused on our core markets and filling out our national deposit vertical strategy • High value-added services and targeted vertical expertise generates above-average risk-adjusted loan yields • The Commercial Banking division operates out of six full-service banking locations, four of which are in the DMV Metropolitan Statistical Area (“MSA”), and its locations in Ft. Lauderdale, Florida in the Miami Metro Area MSA, and in Chicago, Illinois in the Chicago MSA $34.0mm Q1 '25 Revenue Fully-Allocated Illustrative Net Income Contribution 4 $66mm Q1 '25 Volume1 $1.8mm Q1 '25 Revenue • Nationwide lender, primarily mortgage banking; Certain retained loans within DMV area • Gain on sale margin returning to normalized levels; Well-positioned for stabilization or decline in rates • Expense management delivering profitability on a marginal basis while maintaining robust origination capabilities • Natural hedge against modest structural asset sensitivity of the balance sheet $169mm Deposits $110mm Loans, net2 • Nationwide, secured credit card to help under-banked customers (re)establish their credit with opportunities for graduation into unsecured credit • Building capabilities to cross-sell products and services as card-holders progress on their customer journeys • Extend unsecured to graduating customers and starting to build capabilities around a straight to unsecured product $18.2mm Q1 '25 Revenue Capital Bank Home Loans OpenSky Windsor Advantage FY 2023 4

Financial Information

Net Interest Income and Net Interest Margin $20,045 $21,223 $22,676 $28,097 $30,016 $14,921 $15,785 $15,625 $15,454 $14,444 $715 $1,499 $35,008 $37,057 $38,354 $44,327 $46,047 6.24% 6.46% 6.41% 5.87% 6.05% 3.77% 3.90% 4.01% 3.99% 4.32% 1Q24 2Q24 3Q24 4Q24 1Q25 Commercial Bank OpenSky Net Purchase Accounting Accretion Net Interest Margin Commercial Bank Net Interest Margin(1) $ in th ou sa nd s 6 (1) Refer to Appendix for reconciliation of non-GAAP measures. (2) Total includes negligible net interest income from CBHL

Fee Revenue $3,915 $4,368 $4,096 $3,743 $3,733 $1,352 $1,845 $1,811 $1,676 $1,736 $705 $677 $728 $2,246 $1,378 $2,301 $1,096 $4,566 $4,606 $(2,619) 14.6% 15.7% 14.7% 24.7% 21.4% 1Q24 2Q24 3Q24 4Q24 1Q25 OpenSky CBHL Commercial Bank GGL Windsor Advantage Other(1) Core Fee Revenue as a % of Total Core Revenue $ in th ou sa nd s 7 (1) Other includes a $2.6mm non-recurring legacy IFH equity and debt investment write-down during 4Q24, excluded in core revenue.

Noninterest Expense $12,907 $13,272 $13,345 $16,513 $18,067 $1,613 $1,864 $1,791 $2,976 $2,910 $1,947 $1,769 $1,980 $2,150 $2,112 $6,761 $6,788 $6,930 $7,210 $7,112 $2,032 $2,072 $1,223 $1,032 $1,779 $3,515 $3,645 $3,936 $5,018 $4,807 $712 $83 $520 $2,615 $1,266 $29,487 $29,493 $29,725 $37,514 $38,053 70.2% 66.9% 64.9% 59.3% 62.8% 1Q24 2Q24 3Q24 4Q24 1Q25 Salaries and employee benefits Occupancy and equipment Professional fees Data processing Advertising Other expense Merger-related expenses Core Efficiency Ratio $ in th ou sa nd s 8 Note: Other expense includes loan processing expense, outside service providers expense, regulatory expense, office expense and other operational losses Refer to Appendix for reconciliation of Core, non-GAAP measures.

1.24% 1.41% 1.51% 1.97% 1.87% 1.15% 1.40% 1.42% 0.96% 1.75% 1Q24 2Q24 3Q24 4Q24 1Q25 ROA ROA Core ROA Profitability(1) 9 11.03% 12.62% 13.40% 17.46% 16.64% 10.19% 12.53% 12.59% 8.50% 15.56% 1Q24 2Q24 3Q24 4Q24 1Q25 Return on Average Equity “ROE” ROE 11.03% 12.62% 13.40% 18.91% 18.77% 10.19% 12.53% 12.59% 9.33% 17.57% 1Q24 2Q24 3Q24 4Q24 4Q24 ROTCE ROTCE $0.51 $0.59 $0.66 $0.92 $0.88 $0.47 $0.59 $0.62 $0.45 $0.82 1Q24 2Q24 3Q24 4Q24 1Q25 Earnings Per Share, Diluted EPS (1) Annualized Note: Refer to Appendix for reconciliation of Core, non-GAAP measures. Core ROE Core EPSCore ROTCE

Balance Sheet Composition Cash & Cash Equivalents 9% Portfolio Loans 80% AFS Securities Portfolio 6% Other Assets 5% Asset Composition Owner Occupied Commercial Real Estate 16% Non Owner- Occupied Commercial Real Estate 18% Residential Real Estate 26% Construction Real Estate 13%Other(1) 1% Credit Card 4% Commercial and Industrial 22% Portfolio Loan Composition 1Q25 Total Loans: $2.68B 1Q25 Total Assets: $3.35B Commentary • Gross loan growth of $48.2 million, or 7.4% (annualized), during 1Q25. • Compared to December 31, 2024, commercial and industrial loans increased $39.8 million and CRE loans increased $22.0 million, offset by a $9.1 million decrease in OpenSky loans and a $6.3 million decrease in CRE loans. • Commercial and industrial loans, and owner-occupied CRE 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. • Average Portfolio Loans increased $41.2 million, or 6.4% (annualized), from the fourth quarter 2024. 10 (1) Other is comprised of lender finance of $23.2 million, business equity lines of credit of $3.5 million, other consumer loans of $2.2 million and deferred origination fees, net of $5.4 million. Note: Portfolio loans are presented net of deferred fees and costs of $5.4 million. Credit Card loans are presented net of reserve for interest and fees. C&I + OO-CRE represents 38% of total Portfolio Loans

Composition of Deposits Noninterest-bearing 28% Money Markets 32% Customer Time Deposits 19% Brokered Time Deposits 11% Interest-bearing Demand 10%Savings <1% 1Q25 Total Deposits: $2.89B Commentary • Deposits growth of $129.4 million, or 19.0% (annualized) for 1Q25. • Average Portfolio loans-to-deposit ratio of 95.2%. • Interest bearing deposit costs decreased 9bps to 3.37% from 3.46% in the prior quarter and total deposit costs decreased 8bps to 2.42% from 2.50% in the prior quarter. • Transaction accounts (noninterest-bearing and interest-bearing demand) represent 38% of overall deposit funding at Mar. 31, 2025. • Insured and protected deposits were approximately $2.0 billion as of March 31, 2025 representing 70.4% of the Company's deposit portfolio. 11 (1) Annualized As of For the Three Months Ended (in thousands) March 31, 2025 March 31, 2025 Deposits: Spot Balance Average Balance Average Rate(1) Noninterest-bearing $ 812,224 $ 783,018 0.00% Interest-bearing demand 296,455 242,355 0.62% Savings 12,819 13,204 0.55% Money markets 912,418 869,978 3.45% Time deposits 857,417 859,729 4.12% Total deposits $ 2,891,333 $2,768,284 2.42%

High Quality, Low Risk Investment Portfolio U.S. Treasuries 56% Municipal 4%Corporate 2% Asset-backed 3% Mortgage-backed 35% 1Q25 Investment Securities: $213MM Investment Securities Portfolio • Classified as available for sale with a fair market value of $213 million, or 6% of total assets, with an effective duration of 3.0 years. • U.S. Treasuries represent 56% of the overall investment portfolio. • The accumulated other comprehensive loss on the investment securities portfolio of $9.2 million represents 2.5% of total stockholders’ equity and $0.55 of TBVPS. • The Company does not have a held to maturity investment securities portfolio. 12

$625 $76 $119 $294 $1,114 March 31, 2025 Cash and Cash Equivalents Unpledged Investment Securities Unsecured LOC with Other Banks Collateralized LOC Liquidity $ in m illi on s 13 Sources of Liquidity at March 31, 2025: • $625 million of collateralized lines of credit include: • $509 million of available borrowing capacity from the FHLB. • $116 million of available borrowing capacity from the Federal Reserve Bank of Richmond’s discount window. • Available lines of credit with other correspondent banks totaled $76 million. • Unpledged investment securities available as collateral for potential additional borrowings totaled $119 million. $820mm

Loan Yield and Deposit Rate Trends (including net purchase accounting adjustments) 9.58% 9.72% 9.66% 8.96% 9.00% 6.96% 7.04% 7.15% 6.98% 7.14% 3.91% 3.87% 3.92% 3.46% 3.37% 2.64% 2.61% 2.64% 2.50% 2.42% 1Q24 2Q24 3Q24 4Q24 1Q25 Loan Yield Commercial Bank Loan Yield(1) Interest Bearing Deposits Rate Total Cost of Deposits 14 (1) Excluding credit card loans

0.41% 0.39% 0.51% 0.37% 0.38% 1Q24 2Q24 3Q24 4Q24 1Q25 Annualized Net Charge-Offs / Average Portfolio Loans(1) 0.73% 0.70% 0.73% 1.15% 1.40% 1Q24 2Q24 3Q24 4Q24 1Q25 Non-performing Loans / Total Portfolio Loans(1) Credit Metrics 0.62% 0.58% 0.60% 0.94% 1.12% 1Q24 2Q24 3Q24 4Q24 1Q25 Non-performing Assets / Total Assets 15 1.49% 1.53% 1.51% 1.85% 1.81% 1.26% 1.26% 1.24% 1.70% 1.67% 1Q24 2Q24 3Q24 4Q24 1Q25 Allowance for Credit Losses / Total Portfolio Loans(1) ACL Coverage Ratio Commercial Bank ACL Coverage Ratio (1) Refer to Appendix for reconciliation of non-GAAP measures.

Robust Capital Ratios 13.10% 13.25% 12.50% 11.54% 11.75% 1Q24 2Q24 3Q24 4Q24 1Q25 Bank Tier-1 Risk Based Tier-1 Risk Based 8.0% Well-Capitalized Threshold 16 11.16% 10.98% 10.94% 11.07% 9.94%9.66% 9.53% 9.12% 9.31% 8.66% 1Q24 2Q24 3Q24 4Q24 1Q25 Tangible Common Equity Holding Company Tangible Common Equity Capital Bank Tangible Common Equity Note: Ratios presented are for Capital Bank unless otherwise noted 14.36% 14.51% 13.76% 12.79% 13.00% 1Q24 2Q24 3Q24 4Q24 1Q25 Bank Total Risk Based Total Risk Based 10.0% Well-Capitalized Threshold 10.29% 10.36% 9.84% 9.17% 9.27% 1Q24 2Q24 3Q24 4Q24 1Q24 Bank Tier-1 Leverage Ratio Tier-1 Leverage Ratio 5.0% Well-Capitalized Threshold

58.48% (60%) (40%) (20%) 0% 20% 40% 60% 80% 100% 120% 140% 160% % Change CBNK 125% KBW NASDAQ Regional Banking Index (6%) Selected Banks2 Median (8%) 0% 20% 40% 60% 80% 100% 120% 140% 160% Share Appreciation Outperforms Industry Source: S&P Global Market Intelligence; FactSet. Note: Market data as of 4/25/2025. 1 CBNK IPO price of $12.50 used as starting price for price change calculation. 2 Select banks with assets between $1.5 billion and $5.0 billion in the Mid-Atlantic (North of Richmond) and New England Region. (ACNB, BCBP, BPRN, BWFG, FRBA, FRST, FVCB, HNVR, JMSB, MNSB, MRBK, MVBF, NBN, PKBK, PVBC, UNTY). 17 Share Price Change Since CBNK IPO on 9/26/20181TBVPS + Dividend Growth Since 2018Q3 70%+ Outperformance vs. both groups 130%+ Outperformance vs. both groups CAGR % Change CBNK 15.7% 158% KBW NASDAQ Regional Banking Index 9.8% 84% Selected Banks2 Median 9.1% 76%

Recently Completed Strategic Acquisition of IFHI

Renewables Business Poised to Grow as Energy Transition Continues to Take Hold OperationsProject AssemblyDevelopmentProject Lifecycle LTC Development Loans Formula based on mid and late-stage development assets Rate: Prime + 1.0% to 3.0% Variable, quarterly adjust Term: 24 months Loan to Cost: Up to 90% Solar Project Assembly Loan Formula based for projects that have reached NTP (“Notice to Proceed”) Rate: 1YR Treasury + 2.75% to 4.0% Variable, quarterly adjust Term: 12 months to 18 months Loan to Cost: Up to 95% USDA Guaranteed Term Loans Structured fully-amortizing USDA term loans. Up to 80% USDA Guarantee Rate: 5/7/10YR Treasury + 2.75% to 4.0% Reset at 5/7/10YR Term: 300 months Loan to Cost: Up to 75% Investors typically offer secondary market premiums for USDA guaranteed solar loans Longer loan terms relative to conventional lending products Minimal financial covenants with a focus on payment defaults Guaranteed lending products offer competitive pricing USDA programs require matching amortization and loan terms Up to 80% loan guarantee (US Government) Full discretion to sell the guaranteed portion of the loan into a liquid and lucrative secondary market at any time Increased loan sizes but only the unguaranteed portion of the loan is considered for legal lending purposes Borrower Lender Key Milestones Mechanical Completion Permission to Operation Commercial Operations Date Placed in Service Substantial Completion Final Completion Notice to Proceed U.S. Electricity Generation from Selected Fuels Billion kilowatt-hours 0 1,000 2,000 3,000 4,000 5,000 6,000 2005 2020 2035 2050 2022 History Projections Solar* Data source: U.S. Energy Information Administration, Annual Energy Outlook 2023 (AEO2023) *Includes utility-scale and end-use photovoltaic generation and excludes off-grid photovoltaics. **Includes petroleum, conventional hydroelectric power, geothermal, wood and other biomass, pumped storage, non-biogenic municipal waste in the electric power sector, refinery gas, still gas, batteries, chemicals, hydrogen, pitch, purchased steam, sulfur, and miscellaneous technologies. Wind Natural Gas Coal Nuclear Other**9% 18% 20% 39% 10% 5% 6% 11% 5% 22% 22% 33% Significant Market Opportunity Given Renewables Growth Benefits of USDA Loans Loan Products are Designed to Provide Efficient and Effective Capital Through Every Phase of the Renewable Energy Project Lifecycle 19

Dominic Canuso Chief Financial Officer (301) 468-8848 x1403 Ed Barry Chief Executive Officer (240) 283-1912 NASDAQ: CBNK

Non-U.S. GAAP Financial Measures

Reconciliation of Non-GAAP Information 22 Tangible Book Value Per Share (in thousands, except per share amount) March 31, 2025 December 31, 2024 March 31, 2024 Total Stockholders' Equity 369,577$ 355,139$ 259,465$ Less: Preferred equity - - - Less: Intangible assets 39,641 36,943 - Tangible Common Equity 329,936$ 318,196$ 259,465$ Period End Shares Outstanding 16,657,168 16,662,626 13,889,563 Tangible Book Value Per Share 19.81$ 19.10$ 18.68$ Commercial Bank Net Interest Margin(1) (in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Commercial Bank Net Interest Income 31,515$ 28,812$ 20,045$ Average Interest Earning Assets 3,087,943 3,003,081 2,254,663 Less: Average Non-Commercial Bank Interest Earning Assets 128,278 133,401 116,197 Average Commercial Bank Interest Earning Assets 2,959,665$ 2,869,680$ 2,138,466$ Commercial Bank Net Interest Margin(1) 4.32% 3.99% 3.77% (1) Annualized Quarters Ended Quarters Ended

Reconciliation of Non-GAAP Information 23

Reconciliation of Non-GAAP Information 24

Reconciliation of Non-GAAP Information 25 Return on Average Tangible Common Equity (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 363,114 352,537 274,087 263,425 258,892 Less: Average Intangible Assets 36,896 22,890 - - - Net Average Tangible Common Equity 326,218$ 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 (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% Quarters Ended Quarters Ended