CBNK Reports 3Q EPS of $0.89; 3Q ROA of 1.77% and ROE of 15.57%; Continued Strong Growth in Loans and Book Value

Third Quarter 2025 Highlights

GAAP Net Income of $15.1 million, or $0.89 per share, and return on average assets ("ROA") of 1.77%

Core net income(1) of $12.2 million, or $0.72 per share, and Core ROA(1) of 1.43%Book value per common share of $23.80 at September 30, 2025, increased $0.88 compared to 2Q 2025, and increased $3.67 when compared to 3Q 2024

Tangible book value per share(1) of $21.27, increased 3.1% (not annualized), or $0.63 as compared to 2Q 2025, and increased 5.7%, or $1.15 compared to 3Q 2024Return on average equity ("ROE") of 15.57%, and return on average tangible common equity ("ROTCE")(1) of 17.49%

Core ROE(1) of 12.56%, and Core ROTCE(1) of 14.15%Gross Loans(2) grew $82.2 million, or 11.9% (annualized), during 3Q 2025, and growth of $714.5 million year-over-year including $341.0 million from organic growth and $373.5 million from the IFH acquisitionTotal deposits decreased $28.7 million, or (3.9)% (annualized), from 2Q 2025. Year-over-year growth of $725.8 million includes $459.0 million from the acquisition of IFH, and $266.8 million from organic growth, or 33.2% from 3Q 2024

Customer Deposit3 growth of $3.9 million, or 0.6% (annualized) from 2Q 2025, and $641.3 million year-over-year, or 31.5% from 3Q 2024, including $347.8 million of organic growth, and $293.5 million from the acquisition of IFHNet Interest Income increased $4.4 million, or 9.2% (not annualized), from 2Q 2025, mainly due to the $4.6 million acceleration of accretion from refinancing callable brokered time deposits acquired in the IFH transaction, and increased $13.7 million, or 35.6%, year-over-year, primarily driven by strong organic growth and the acquisition of IFHNet Interest Margin ("NIM") of 6.36% increased 32 bps compared to 2Q 2025 and decreased 5 bps compared to 3Q 2024 due to the acquisition of commercial loans from IFH, diluting the impact from OpenSky™

Commercial Bank NIM(1) of 4.64% increased by 28 bps (but decreased 43 bps when excluding purchase accounting accretion ("PAA")), when compared to 2Q 2025, and increased 82 bps (or 12 bps excluding PAA), compared to 3Q 2024

3Q 2025 net PAA of $5.5 million, or 67 bps of NIM and 70 bps of Commercial Bank NIM(1), increased $4.7 million, or 59 bps, compared to 2Q 2025The allowance for credit losses to total loans ("ACL Coverage Ratio") equaled 1.88% at September 30, 2025, and represented a 15 bps increase from June 30, 2025 and a 37 bps increase from September 30, 2024, primarily due to the acquisition of IFH loans. The Commercial Bank ACL Coverage Ratio(1) equaled 1.70% at September 30, 2025, compared to 1.56% at June 30, 2025Fee Revenue (noninterest income) totaled $11.1 million, or 18.9% of total revenue for 3Q 2025, a decrease of $2.0 million, from 2Q 2025 primarily due to decreased government lending revenue (net gain on sale) and an increase of $4.4 million, from 3Q 2024Cash Dividend of $0.12 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 excludes the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
(2) Gross loans represent portfolio loans receivable, net of deferred fees and costs.
(3) Customer Deposits represents total deposits excluding brokered deposits.

ROCKVILLE, Md., Oct. 27, 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 $15.1 million, or $0.89 per diluted share, for 3Q 2025, compared to net income of $13.1 million, or $0.78 per diluted share, for 2Q 2025, and $8.7 million, or $0.62 per diluted share, for 3Q 2024. Core net income(4) for 3Q 2025 of $12.2 million, or $0.72 per diluted share, compared to $14.2 million, or $0.85 per diluted share in 2Q 2025, and $9.2 million, or $0.66 per diluted share, for 3Q 2024.

The Company also declared a cash dividend on its common stock of $0.12 per share. The dividend is payable on November 26, 2025 to shareholders of record on November 10, 2025.

“We continue to execute on our strategic plan and see progress in driving long term growth and profitability,” said Ed Barry, CEO of the Company and the Bank. “The diversity of our business continues to be a strength as outperformance in our government servicing business offset a decline in USDA gain-on-sales revenues."

“With and without the one-time items this quarter, we continue to grow our tangible book value and report solid returns on equity and tangible book value,” said Steven J Schwartz, Chairman of the Company. “We believe our continued investment in technology and infrastructure, while negatively impacting our current core earnings, will help us provide long-term superior returns to our shareholders. I am also pleased that the uptick in our credit metrics is almost entirely due to loans acquired in the IFH transaction, not to loans originated by Capital Bank. That gives me reason for confidence that our credit discipline, combined with our superior net interest margin, continues to constitute a core competency.”

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 brokered time deposit call, merger-related expenses and other one-time non-recurring transactions.

Third Quarter 2025 Second Quarter 2025(in thousands, except per share data)Income Before Income Taxes Income Tax Expense (Benefit) Net Income Diluted Earnings per Share Income Before Income Taxes Income Tax Expense Net Income Diluted Earnings per ShareGAAP Net Income$19,867 $4,802 $15,065 $0.89 $17,099 $3,963 $13,136 $0.78Deduct: Income from the Call of Brokered Time Deposits (4,618) (1,129) (3,489) Add: Merger-Related Expenses 697 122 575 1,398 328 1,070 Core Net Income(1)$15,946 $3,795 $12,151 $0.72 $18,497 $4,291 $14,206 $0.85

Nine Months Ended September 30, 2025(in thousands except per share data)Income Before Income Taxes Income Tax Expense (Benefit) Net Income Diluted Earnings per ShareGAAP Net Income$55,263 $13,130 $42,133 $2.50Deduct: Income from the Call of Brokered Time Deposits (4,618) (1,129) (3,489) Add: Merger-Related Expenses 3,361 752 2,609 Core Net Income(1)$54,006 $12,753 $41,253 $2.45

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 the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Third Quarter 2025 Results

Earnings Summary

Net income of $15.1 million, or $0.89 per diluted share, compared to net income of $13.1 million, or $0.78 per diluted share, for 2Q 2025, and $8.7 million or $0.62 per diluted share, for 3Q 2024. 3Q 2025 core net income(1) of $12.2 million, or $0.72 per diluted share, compared to 2Q 2025 of $14.2 million, or $0.85 per diluted share.

During the quarter there were two non-recurring events that impacted net income:

The Bank identified Fee Revenue that was also previously recognized as Interest Income in the first and second quarter. As a result, the Bank recorded a one-time reversal of $1.3 million of interest income (“Interest Income Adjustment”). There was no corresponding adjustment needed to Fee Revenue as the fee income was correctly recognized during those periods. Also, during the quarter, the Bank issued a call of brokered time deposits acquired from the IFH transaction, resulting in the accelerated accretion of $4.6 million (“Call of Brokered Time Deposits”). Net interest income of $52.0 million increased $4.4 million, or 9.2% (not annualized), compared to 2Q 2025, and increased $13.7 million, or 35.6%, year-over-year.

Interest income of $64.9 million increased $0.3 million, or 0.5% (not annualized), over 2Q 2025, and increased $12.3 million, or 23.3%, year-over-year. When excluding the $1.3 million Interest Income Adjustment, interest income increased $1.6 million from 2Q 2025, primarily driven by $1.3 million of growth from OpenSky™ and $0.3 million from the investment portfolio, while the increase year-over-year was primarily driven by organic growth and the acquisition of IFH.

Interest income included $0.2 million from net purchase accounting accretion in 3Q 2025, compared to $0.4 million in 2Q 2025. There was no impact related to purchase accounting during 3Q 2024.Interest expense of $12.9 million decreased $4.1 million, or 24.0% (not annualized) compared to 2Q 2025, and decreased $1.4 million, or 9.7%, year-over-year. When excluding the $4.6 million one-time impact from the Call of Brokered Time Deposits, interest expense increased $0.5 million, or 3.2%, compared to 2Q 2025, primarily driven by a shift in portfolio mix.

Interest expense included a $5.3 million benefit from net purchase accounting accretion in 3Q 2025, which included $4.6 million from the Call of Brokered Time Deposits, compared to a $0.9 million benefit in 2Q 2025. There was no impact related to purchase accounting during 3Q 2024.The 3Q 2025 provision for credit losses was $4.7 million, an increase of $0.6 million from 2Q 2025. Excluding the impact of a loan sale during 2Q 2025 from the acquired IFH portfolio, the provision decreased $0.9 million quarter over quarter. Net charge-offs totaled $2.5 million, or 0.35% of portfolio loans (annualized), down from $5.1 million or 0.75% of portfolio loans (annualized), in 2Q 2025. Net charge-offs in the quarter include $0.3 million from the Commercial Bank and $2.1 million from OpenSky™ loans.

At September 30, 2025, the ACL Coverage Ratio was 1.88%, up $5.6 million or 15 bps from June 30, 2025. The increase in the ACL Coverage Ratio over prior quarter was primarily driven by a 12 bps impact resulting from the reassignment of an IFH acquired loan from non-purchase credit deteriorated ("non-PCD") loan to a purchase credit deteriorated ("PCD") loan during the quarter as a measurement period adjustment to the Day-1 purchase accounting, increasing the allowance for credit losses ("ACL") by $3.4 million.

_______________
1 As used in this press release, Core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Earnings Summary (Continued)

Fee Revenue of $11.1 million decreased $2.0 million, compared to 2Q 2025 and increased $4.4 million year-over-year primarily due to the contributions made by the businesses IFH brought to the merged entity. During 3Q 2025, core fee revenue(1) of $11.1 million decreased $2.0 million as a result of a $3.1 million decrease in government lending revenue (net gain on sale), $0.8 million lower SBIC investment income, and a $0.1 million decrease in other income, offset by a $1.0 million increase in loan servicing revenue, a $0.6 million increase in government loan servicing revenue (Windsor Advantage™), a $0.2 million increase in credit card fees from OpenSky™, and $0.2 million increase in mortgage banking revenue. Core fee revenue mix was 18.9% of total revenue for 3Q 2025, compared to 21.6% during 2Q 2025, and 14.7% during 3Q 2024.Noninterest expense of $38.4 million decreased $1.2 million compared to 2Q 2025 and increased $8.6 million compared to 3Q 2024. Core noninterest expense(1) of $37.7 million decreased $0.5 million compared to 2Q 2025 and increased $8.5 million compared to 3Q 2024. Core comparisons include:

The decrease of $0.5 million quarter-over-quarter was driven by decreases from personnel expenses and regulatory related expenses, offset by growth in advertising expense mainly from OpenSky™.Year-over-year expense growth of $8.6 million was primarily due to the acquisition of IFH.Income tax expense of $4.8 million, or 24.2% of pre-tax income for 3Q 2025, increased $0.8 million from $4.0 million, or 23.2% of pre-tax income for 2Q 2025. The Core effective income tax rate(1) for 3Q 2025 and 2Q 2025 would have been 23.8% and 23.2%, 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 the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Balance Sheet

Total assets of $3.4 billion at September 30, 2025 increased $0.8 million from June 30, 2025. Total assets growth year-over-year of $828.7 million, or 32.4%, included $559.4 million acquired with the IFH acquisition, net of purchase accounting, and $269.3 million of organic growth.

Gross Loans of $2.82 billion at September 30, 2025 increased $82.2 million, or 11.9% (annualized), from June 30, 2025 and increased $714.5 million year-over-year including $373.5 million from the acquisition of IFH and $341.0 million of organic growth.

Compared to June 30, 2025, growth was primarily driven by $29.3 million from residential real estate, $25.9 million from commercial and industrial ("C&I"), $20.9 million from commercial real estate ("CRE"), and $5.5 million from OpenSky™.C&l loans, plus owner-occupied commercial real estate loans totaled 37.6% of total portfolio loans at September 30, 2025, consistent with the prior quarter, and 29.6% at September 30, 2024.Total deposits of $2.91 billion at September 30, 2025 decreased $28.7 million, or 3.9% (annualized), from June 30, 2025, and increased $725.8 million, or 33.2% (annualized) from September 30, 2024. When excluding a decrease in brokered time deposits of $32.6 million, customer deposits increased $3.9 million or 0.5% (annualized), including $28.9 million of growth in customer money market deposits, $20.6 million growth of noninterest-bearing deposits, offset by $43.7 million decrease from interest-bearing demand accounts and a $1.9 million decrease in customer time deposits. The increase of $725.8 million year-over-year was driven by $459.0 million from the acquisition of IFH, and $266.8 million from organic growth.

Insured and protected1 deposits were approximately $2.0 billion as of September 30, 2025 representing 67.0% of the Company's deposit portfolio.Low-and-no interest-bearing DDA deposits of $1.1 billion, or 39.4% of deposits, increased $23.1 million, or 7.9% (annualized) from 2Q 2025, and increased $157.8 million, or 16.0% year-over-year, including $91.5 million from the acquisition of IFH, and $66.3 million of organic growth.

The average rate on the low-and-no interest-bearing deposits was 0.14% for 3Q 2025, which remained flat compared to 2Q 2025 and year-over-year.The average portfolio loans-to-deposit ratio was 95.6% for 3Q 2025, compared to 96.2% for 2Q 2025, and 98.2% for 3Q 2024.The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $232.6 million, or 6.9% of total assets, an effective duration of 2.6 years, with U.S. Treasury Securities representing 59% of the overall investment portfolio at September 30, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio improved $1.3 million during the quarter to negative $6.8 million after-tax as of September 30, 2025, which represents 1.7% 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 September 30, 2025 totaled $858.4 million, compared to $834.8 from 2Q 2025. During 3Q 2025, available collateralized lines of credit totaled $767.8 million, unsecured lines of credit with other banks totaled $76.0 million and unpledged investment securities available as collateral for potential additional borrowings totaled $14.5 million.Capital Positions – As of September 30, 2025, the Company reported a Common Equity Tier-1 capital ratio of 13.51%, compared to 13.58% at June 30, 2025. At September 30, 2025, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.

There were no shares repurchased and retired during the three months ended September 30, 2025, as part of the Company's stock repurchase program. There is $11.9 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on February 28, 2026.

_______________
1 Protected deposits includes deposits that are indirectly protected under the product terms

Financial Metrics

Net Interest Margin – NIM of 6.36% for 3Q 2025, increased 32 bps compared to the prior quarter, and decreased 5 bps year-over-year. Commercial Bank NIM(1), of 4.64% increased 28 bps compared to the prior quarter, and increased 82 bps year-over-year. Net purchase accounting accretion for 3Q 2025 was 67 bps for NIM and 70 bps for Commercial Bank NIM(1).

3Q 2025 includes the previously mentioned $4.6 million (59 bps) Call of Brokered Time Deposits and $1.3 million (17 bps) Interest Income Adjustment. Excluding these items, 3Q 2025 NIM would have been 5.95% and Commercial Bank NIM would have been 4.21%.The average yield on interest earning assets of 7.93% decreased 26 bps compared to the prior quarter, mainly due to a 16 bps impact from the Interest Income Adjustment. Excluding this item, the average yield in the quarter would have been 7.77% a decrease of 10 bps compared to 2Q 2025 as a result of the overall rate environment. The average yield decreased 86 bps year-over-year primarily due to the acquisition of commercial loans diluting the positive impact from OpenSky™ as well as the Interest Income Adjustment.

The Commercial Bank Loan Yield(1) of 6.74% for 3Q 2025 decreased 40 bps compared to 2Q 2025, and decreased 41 bps year-over-year. Excluding the Interest Income Adjustment, average yield in the quarter would have been 6.94%, a decrease of 21 bps compared to 2Q 2025 and 22 bps year-over-year as a result of rate environment.The total cost of deposits of 1.73% for 3Q 2025 decreased 63 bps compared to the prior quarter and decreased 91 bps year-over-year, both mainly due to the Call of Brokered Time Deposits. Excluding this item, total costs of deposits for the quarter would have been 2.36%, consistent with 2Q 2025, and a decrease of 29 bps year-over-year due to shifts in product mix from the acquisition of IFH.The total cost of interest-bearing deposits decreased 88 bps quarter-over-quarter, due to the Call of Brokered Time Deposits. Total cost of interest-bearing deposits decreased 151 bps year-over-year, to 2.41% for 3Q 2025 primarily due to the Call of Brokered Time Deposits as well as shifts in product mix from the acquisition of IFH.Net purchase accounting accretion of $5.5 million, or 67 bps of NIM and 70 bps of Commercial Bank NIM, during 3Q 2025, which includes $4.6 million, or 59 bps, from the Call of Brokered Time Deposits, increased $4.4 million from 2Q 2025. There was no impact from purchase accounting during 3Q 2024.

Fee Revenue Mix – The fee revenue mix was 18.9% of total revenue for 3Q 2025, compared to 21.6% during 2Q 2025, and 14.7% during 3Q 2024. The core fee revenue mix(1) was consistent with fee revenue mix for these periods.

_______________
1 As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, Core fee revenue mix and Core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Credit Metrics and Asset Quality – The ACL Coverage Ratio equaled 1.88% at September 30, 2025, an increase of 15 bps from June 30, 2025, and an increase of 37 bps year-over-year driven by a 12 bps impact resulting from the inclusion of an IFH acquired loan discussed below.

Credit metrics in the quarter were impacted by two loan relationships, both of which were acquired as part of the IFH transaction:

One relationship across three loans accounted for an $8.8 million increase to nonperforming assets. One loan of $5.0 million was previously identified as a PCD loan, which had a specific ACL reserve of $3.8 million established from Day-1 purchase accounting of the IFH acquisition. The other two are USDA loans with an unguaranteed balance of $3.8 million secured by underlying assets, which have no ACL reserve recorded.The other relationship accounted for a $7.1 million increase to nonperforming assets. As previously mentioned, the loan was reassigned to a PCD loan as a measurement period adjustment to the Day-1 purchase accounting from the IFH acquisition. The measurement period adjustment for this loan resulted in recording a specific ACL reserve of $3.4 million during the quarter, or a 12 bps impact to the ACL Coverage Ratio.

Nonperforming assets were $52.2 million or 1.54% of total assets at September 30, 2025, an increase of $16.1 million or 47 bps compared to June 30, 2025, due to the $15.9 million or 47 bps of loans described above. Nonperforming assets increased $36.8 million or 94 bps year-over-year, mainly due to the acquisition of IFH. At September 30, 2025, substandard loans totaled $56.8 million, or 2.0% of total portfolio loans, compared to $44.6 million, or 1.7% of total portfolio loans, at June 30, 2025 and $23.8 million, or 1.2% of total portfolio loans, at September 30, 2024. The $12.2 million increase in substandard loans during the quarter was primarily driven by the $15.9 million of loans described above. At September 30, 2025, special mention loans totaled $71.5 million, or 2.5% of total portfolio loans, compared to $54.2 million, or 2.0% of total portfolio loans, at June 30, 2025, and $20.3 million, or 1.0% of total portfolio loans, at September 30, 2024.

Efficiency Ratios – The efficiency ratio was 60.8% for 3Q 2025, compared to 65.1% for 2Q 2025 and 66.1% for 3Q 2024. The core efficiency ratio(1) was 64.4%, for 3Q 2025, which increased from 62.8% compared to the prior quarter, and 64.9% for 3Q 2024.

Financial Metrics (Continued)

Performance Ratios – ROA was 1.77% for 3Q 2025, compared to 1.60% for 2Q 2025, and 1.42% for 3Q 2024. Core ROA(1) for 3Q 2025 was 1.43%, compared to 1.73% for 2Q 2025, and 1.51% for 3Q 2024.

ROE was 15.57% for 3Q 2025, compared to 14.17% for 2Q 2025, and 12.59% for 3Q 2024. Core ROE(1) was 12.56% for 3Q 2025, compared to 15.33% for 2Q 2025, and 13.40% for 3Q 2024.ROTCE(1) was 17.49% for 3Q 2025, compared to 16.10% for 2Q 2025, and 12.59% for 3Q 2024. Core ROTCE(1) for 3Q 2025 was 14.15%, compared to 17.39% for 2Q 2025, and 13.40% for 3Q 2024.

Book Value and Tangible Book Value – Book value per common share of $23.80 at September 30, 2025, increased $0.88 when compared to June 30, 2025, and increased $3.67 when compared to September 30, 2024. Tangible book value per common share(1) increased $0.63, or 3.1%, to $21.27 at September 30, 2025 when compared to June 30, 2025, and increased $1.15, or 5.7%, when compared to September 30, 2024. Tangible book value was impacted by the purchase accounting adjustments required as part of the IFH acquisition. Tangible book value per share(1) was equal to book value per share for periods prior to 4Q 2024.

_______________
1 As used in this press release, Core ROA, Core ROE, ROTCE, Core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Commercial Bank

Loan Growth – Portfolio loans(1) increased $76.0 million at September 30, 2025 compared to June 30, 2025, driven by $29.3 million from residential real estate, $25.9 million from C&I, and $20.9 million from CRE owner and non-owner occupied. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

Net Interest Income – Interest income of $49.0 million decreased $0.9 million from the prior quarter, primarily due to the Interest Income Adjustment, offset by growth in the Commercial Bank loan portfolio during the quarter. Interest expense of $12.8 million decreased $4.1 million, primarily due to the Call of Brokered Time Deposits offset by growth from money market deposits in 3Q 2025.

Credit Metrics – Nonperforming assets, comprised solely of nonaccrual loans, increased 50 bps to 1.63% of total assets at September 30, 2025 compared to June 30, 2025. Total nonaccrual loans at September 30, 2025 increased to $52.2 million compared to $36.2 million at June 30, 2025 primarily due to the two loan relationships acquired as part of the IFH transaction discussed previously.

Classified and Criticized Loans– At September 30, 2025, special mention loans totaled $71.5 million, or 2.5% of total portfolio loans, compared to $54.2 million, or 2.0% of total portfolio loans, at June 30, 2025. At September 30, 2025, substandard loans totaled $56.8 million, or 2.0% of total portfolio loans, compared to $44.6 million, or 1.7% of total portfolio loans, at June 30, 2025.

OpenSky™

Accounts – During 3Q 2025, credit card accounts of 587.6 thousand increased by 2.3 thousand, or 0.4% (not annualized) from June 30, 2025, and increased 38.7 thousand, or 7.0% year-over-year.

Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves, of $136.5 million at September 30, 2025 increased by $5.5 million, or 4.2% (not annualized), compared to June 30, 2025 and $9.4 million, or 7.4%, year-over-year. Deposit balances of $166.9 million for 3Q 2025 decreased $2.1 million compared to 2Q 2025 and decreased $3.9 million, or 2.3% year-over-year. Gross unsecured loan balances of $53.6 million at September 30, 2025 increased $7.3 million, or 15.7% (not annualized), compared to $46.4 million at June 30, 2025, and increased $13.9 million year-over-year. Gross secured loan balances of $84.7 million at September 30, 2025 decreased $1.7 million, or 1.9% (not annualized), compared to $86.4 million at June 30, 2025, and decreased $4.9 million, or 5.5% (not annualized) year-over-year.

Net Interest Income– Interest income of $15.6 million increased $1.1 million compared to 2Q 2025. Average OpenSky credit card loan balances, net of reserves and deferred fees of $129.1 million for 3Q 2025, increased $7.7 million, or 6.3% (not annualized), compared to 2Q 2025.

Fee Revenue - Total fee revenue of $4.5 million increased $0.2 million from the prior quarter primarily driven by other credit-card related fees associated with the unsecured product.

Noninterest Expense – Total noninterest expense of $14.0 million increased $0.9 million compared to 2Q 2025, driven by growth from the unsecured product associated with advertising spend, data processing and professional fees.

OpenSky™ Credit – Portfolio credit metrics continued to be consistent with modeled expectations during 3Q 2025. The provision for credit losses of $2.8 million decreased $0.1 million when compared to the prior quarter. OpenSky's unsecured loan product continues to be offered exclusively to current and former secured card customers to retain customers who have successfully improved their credit profiles. Unsecured loans have been offered by OpenSky since the fourth quarter of 2021 and have generally performed in accordance with management expectations over that time period.

_______________
1 Portfolio loans represents portfolio loans receivable excluding deferred origination fee

Capital Bank Home Loans

Originations of loans held for sale totaled $80.7 million during 3Q 2025, with $66.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.7 million, representing a 2.56% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $80.3 million during 2Q 2025, with $59.7 million of mortgage loans sold resulting in a gain on sale of loans of $1.6 million, representing a 2.68% gain on sale as a percentage of total loans sold.

Windsor Advantage™

Gross government loan servicing revenue totaled $5.3 million, including $1.1 million of Capital Bank related servicing fees, during 3Q 2025. Gross government loan servicing revenue totaled $4.7 million, including $1.1 million of Capital Bank related servicing fees, during 2Q 2025. Windsor's™ total servicing portfolio was $3.2 billion at September 30, 2025, and $2.9 billion at June 30, 2025.

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited Quarter Ended 3Q25 vs 2Q25 3Q25 vs 3Q24(in thousands, except per share data)September 30, 2025 June 30, 2025 September 30, 2024 $ Change % Change $ Change % ChangeEarnings Summary Interest income$64,891 $64,586 $52,610 $305 0.5% $12,281 23.3%Interest expense 12,871 16,940 14,256 (4,069) (24.0)% (1,385) (9.7)%Net interest income 52,020 47,646 38,354 4,374 9.2% 13,666 35.6%Provision for credit losses 4,650 4,081 3,748 569 13.9% 902 24.1%Provision for credit losses on unfunded commitments 217 — 17 217 —% 200 1,176.5%Noninterest income 11,068 13,106 6,635 (2,038) (15.6)% 4,433 66.8%Noninterest expense 38,354 39,572 29,725 (1,218) (3.1)% 8,629 29.0%Income before income taxes 19,867 17,099 11,499 2,768 16.2% 8,368 72.8%Income tax expense 4,802 3,963 2,827 839 21.2% 1,975 69.9%Net income$15,065 $13,136 $8,672 $1,929 14.7% $6,393 73.7% Pre-tax pre-provision net revenue ("PPNR")(1)$24,734 $21,180 $15,264 $3,554 16.8% $9,470 62.0%Core PPNR(1)$20,813 $22,578 $15,784 $(1,765) (7.8)% $5,029 31.9% Common Share Data Earnings per share - Basic$0.91 $0.79 $0.62 $0.12 15.2% $0.29 46.8%Earnings per share - Diluted$0.89 $0.78 $0.62 $0.11 14.1% $0.27 43.5%Core earnings per share - Diluted(1)$0.72 $0.85 $0.66 $(0.13) (15.3)% $0.06 9.1%Weighted average common shares - Basic 16,586 16,584 13,914 Weighted average common shares - Diluted 16,844 16,802 13,951 Return Ratios Return on average assets (annualized) 1.77% 1.60% 1.42% Core return on average assets (annualized)(1) 1.43% 1.73% 1.51% Return on average equity (annualized) 15.57% 14.17% 12.59% Core return on average equity (annualized)(1) 12.56% 15.33% 13.40% Return on average tangible common equity (annualized)(1) 17.49% 16.10% 12.59% Core return on average tangible common equity (annualized)(1) 14.15% 17.39% 13.40%

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

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued) Nine Months Ended September 30, (in thousands, except per share data) 2025 2024 $ Change % ChangeEarnings Summary Interest income $192,237 $151,594 $40,643 26.8%Interest expense 46,524 41,175 5,349 13.0%Net interest income 145,713 110,419 35,294 32.0%Provision for credit losses 10,977 9,892 1,085 11.0%Provision for credit losses on unfunded commitments 217 263 (46) (17.5)%Noninterest income 36,723 19,497 17,226 88.4%Noninterest expense 115,979 88,705 27,274 30.7%Income before income taxes 55,263 31,056 24,207 77.9%Income tax expense 13,130 7,617 5,513 72.4%Net income $42,133 $23,439 $18,694 79.8% Pre-tax pre-provision net revenue ("PPNR")(1) $66,457 $41,211 $25,246 61.3%Core PPNR(1) $65,200 $42,526 $22,674 53.3% Common Share Data Earnings per share - Basic $2.54 $1.69 $0.85 50.3%Earnings per share - Diluted $2.50 $1.69 $0.81 47.9%Core earnings per share - Diluted(1) $2.45 $1.77 Weighted average common shares - Basic 16,611 13,909 Weighted average common shares - Diluted 16,850 13,909 Return Ratios Return on average assets (annualized) 1.71% 1.32% Core return on average assets (annualized)(1) 1.67% 1.39% Return on average equity (annualized) 15.10% 11.79% Core return on average equity (annualized)(1) 14.79% 12.37% Return on average tangible common equity (annualized)(1) 17.06% 11.79% Core return on average tangible common equity (annualized)(1) 16.70% 12.37%

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

COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued) Quarter Ended Quarter Ended September 30, June 30, March 31, December 31,(in thousands, except per share data)2025 2024 % Change 2025 2025 2024Balance Sheet Highlights Assets$3,389,442 $2,560,788 32.4% $3,388,662 $3,349,805 $3,206,911Investment securities available-for-sale 232,640 208,700 11.5% 228,923 213,452 223,630Mortgage loans held for sale 19,679 19,554 0.6% 20,925 34,656 21,270Portfolio loans receivable(2) 2,821,983 2,107,522 33.9% 2,739,808 2,678,406 2,630,163Allowance for credit losses 53,045 31,925 66.2% 47,447 48,454 48,652Goodwill 26,806 — 100.0% 22,478 24,085 21,126Intangible assets 13,457 — 100.0% 13,668 13,861 14,072Core deposit intangibles 1,576 — 100.0% 1,627 1,695 1,745Deposits 2,912,053 2,186,224 33.2% 2,940,738 2,891,333 2,761,939FHLB borrowings 22,000 52,000 (57.7)% 22,000 22,000 22,000Other borrowed funds 12,062 12,062 —% 12,062 12,062 12,062Total stockholders' equity 394,770 280,111 40.9% 380,035 369,577 355,139Tangible common equity(1) 352,931 280,111 26.0% 342,262 329,936 318,196 Common shares outstanding 16,589 13,918 19.2% 16,582 16,657 16,663Book value per share$23.80 $20.13 18.2% $22.92 $22.19 $21.31Tangible book value per share(1)$21.27 $20.13 5.7% $20.64 $19.81 $19.10Dividends per share$0.12 $0.10 20.0% $0.10 $0.10 $0.10

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

Consolidated Statements of Income (Unaudited) Three Months EndedNine Months Ended(in thousands)September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 September 30, 2025 September 30, 2024Interest income Loans, including fees$60,838 $60,810 $58,691 $58,602 $50,047 $180,339 $144,313Investment securities available-for-sale 1,805 1,582 1,861 1,539 1,343 5,248 3,902Federal funds sold and other 2,248 2,194 2,208 1,566 1,220 6,650 3,379Total interest income 64,891 64,586 62,760 61,707 52,610 192,237 151,594 Interest expense Deposits 12,732 16,722 16,512 16,385 13,902 45,966 39,785Borrowed funds 139 218 201 995 354 558 1,390Total interest expense 12,871 16,940 16,713 17,380 14,256 46,524 41,175 Net interest income 52,020 47,646 46,047 44,327 38,354 145,713 110,419Provision for credit losses 4,650 4,081 2,246 7,828 3,748 10,977 9,892Provision for credit losses on unfunded commitments 217 — — 122 17 217 263Net interest income after provision for credit losses 47,153 43,565 43,801 36,377 34,589 134,519 100,264Noninterest income Service charges on deposits 425 262 258 241 235 945 642Credit card fees 4,509 4,298 3,722 3,733 4,055 12,529 12,266Mortgage banking revenue 1,927 1,754 1,831 1,821 1,882 5,512 5,325Government lending revenue 14 3,112 1,096 2,301 — 4,222 —Government loan servicing revenue 4,265 3,644 3,568 3,993 — 11,477 —Loan servicing rights (government guaranteed) 368 (590) 472 1,013 — 250 —Non-recurring equity and debt investment write-down — — — (2,620) — — —Other income (440) 626 1,602 1,431 463 1,788 1,264Total noninterest income 11,068 13,106 12,549 11,913 6,635 36,723 19,497Noninterest expenses Salaries and employee benefits 17,728 18,460 18,067 16,513 13,345 54,255 39,524Occupancy and equipment 2,849 2,995 2,910 2,976 1,791 8,754 5,268Professional fees 2,131 2,422 2,112 2,150 1,980 6,665 5,696Data processing 7,654 7,520 7,112 7,210 6,930 22,286 20,479Advertising 1,714 1,371 1,779 1,032 1,223 4,864 5,327Loan processing 1,114 979 743 969 615 2,836 1,462Foreclosed real estate expenses, net — — 1 — 1 1 2Merger-related expenses 697 1,398 1,266 2,615 520 3,361 1,315Operational losses 923 933 903 993 1,008 2,759 2,721Regulatory assessment expenses 740 884 889 554 483 2,513 1,384Other operating 2,804 2,610 2,271 2,502 1,829 7,685 5,527Total noninterest expenses 38,354 39,572 38,053 37,514 29,725 115,979 88,705Income before income taxes 19,867 17,099 18,297 10,776 11,499 55,263 31,056Income tax expense 4,802 3,963 4,365 3,243 2,827 13,130 7,617Net income$15,065 $13,136 $13,932 $7,533 $8,672 $42,133 $23,439

Consolidated Balance Sheets (unaudited) (unaudited) (unaudited) (audited) (unaudited)(in thousands, except share data)September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Assets Cash and due from banks$25,724 $26,843 $27,836 $25,433 $23,462 Interest-bearing deposits at other financial institutions 163,078 247,704 266,092 179,841 133,180 Federal funds sold 59 59 59 58 58 Total cash and cash equivalents 188,861 274,606 293,987 205,332 156,700 Investment securities available-for-sale 232,640 228,923 213,452 223,630 208,700 Restricted investments 7,057 7,043 7,031 4,479 5,895 Loans held for sale 19,679 20,925 34,656 21,270 19,554 Portfolio loans receivable, net of deferred fees and costs 2,821,983 2,739,808 2,678,406 2,630,163 2,107,522 Less allowance for credit losses (53,045) (47,447) (48,454) (48,652) (31,925)Total portfolio loans held for investment, net 2,768,938 2,692,361 2,629,952 2,581,511 2,075,597 Premises and equipment, net 15,304 14,863 15,085 15,525 5,959 Accrued interest receivable 19,011 15,149 19,458 16,664 12,468 Goodwill 26,806 22,478 24,085 21,126 — Intangible assets 13,457 13,668 13,861 14,072 — Core deposit intangibles 1,576 1,627 1,695 1,745 — Loan servicing assets 2,070 2,221 2,244 5,511 — Deferred tax asset 14,048 15,667 15,902 16,670 10,748 Bank owned life insurance 45,105 44,721 44,335 43,956 38,779 Other assets 34,890 34,410 34,062 35,420 26,388 Total assets$3,389,442 $3,388,662 $3,349,805 $3,206,911 $2,560,788 Liabilities Deposits Noninterest-bearing$857,543 $836,979 $812,224 $810,928 $718,120 Interest-bearing 2,054,510 2,103,759 2,079,109 1,951,011 1,468,104 Total deposits 2,912,053 2,940,738 2,891,333 2,761,939 2,186,224 Federal Home Loan Bank advances 22,000 22,000 22,000 22,000 52,000 Other borrowed funds 12,062 12,062 12,062 12,062 12,062 Accrued interest payable 8,045 8,158 9,995 9,393 8,503 Other liabilities 40,512 25,669 44,838 46,378 21,888 Total liabilities 2,994,672 3,008,627 2,980,228 2,851,772 2,280,677 Stockholders' equity Common stock 166 166 167 167 139 Additional paid-in capital 127,359 126,888 128,692 128,598 55,585 Retained earnings 274,041 261,093 249,925 237,843 232,995 Accumulated other comprehensive loss (6,796) (8,112) (9,207) (11,469) (8,608)Total stockholders' equity 394,770 380,035 369,577 355,139 280,111 Total liabilities and stockholders' equity$3,389,442 $3,388,662 $3,349,805 $3,206,911 $2,560,788

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
September 30, 2025 Three Months Ended
June 30, 2025 Three Months Ended
September 30, 2024 Average
Outstanding
Balance Interest Income/
Expense Average
Yield/
Rate(1) Average
Outstanding
Balance Interest Income/
Expense Average
Yield/
Rate(1) Average
Outstanding
Balance Interest Income/
Expense Average
Yield/
Rate(1) (in thousands)Assets Interest earning assets: Interest-bearing deposits$194,858 $2,139 4.36% $182,192 $2,065 4.55% $91,089 $1,137 4.97%Federal funds sold 59 1 5.79 59 — — 57 1 6.98 Investment securities available-for-sale 241,086 1,805 2.97 230,317 1,582 2.76 221,303 1,343 2.41 Restricted investments 7,052 108 6.06 7,038 129 7.35 4,911 82 6.64 Loans held for sale 13,783 228 6.57 9,950 163 6.57 9,967 161 6.43 Portfolio loans receivable(2)(3) 2,789,815 60,610 8.62 2,733,865 60,647 8.90 2,053,619 49,886 9.66 Total interest earning assets 3,246,653 64,891 7.93 3,163,421 64,586 8.19 2,380,946 52,610 8.79 Noninterest earning assets 131,643 129,112 56,924 Total assets$3,378,296 $3,292,533 $2,437,870 Liabilities and Stockholders’ Equity Interest-bearing liabilities: Interest-bearing demand accounts$282,873 388 0.54 $281,878 391 0.56 $228,365 321 0.56 Savings 12,887 15 0.47 13,043 16 0.49 4,135 5 0.48 Money market accounts 985,106 8,650 3.48 924,784 8,022 3.48 698,239 7,442 4.24 Time deposits 815,302 3,679 1.79 816,809 8,293 4.07 479,824 6,134 5.09 Borrowed funds 34,062 139 1.62 34,062 218 2.57 43,655 354 3.23 Total interest-bearing liabilities 2,130,230 12,871 2.40 2,070,576 16,940 3.28 1,454,218 14,256 3.90 Noninterest-bearing liabilities: Noninterest-bearing liabilities 43,245 45,523 28,834 Noninterest-bearing deposits 820,899 804,639 680,731 Stockholders’ equity 383,922 371,795 274,087 Total liabilities and stockholders’ equity$3,378,296 $3,292,533 $2,437,870 Net interest spread 5.53% 4.91% 4.89%Net interest income $52,020 $47,646 $38,354 Net interest margin(4) 6.36% 6.04% 6.41%

_______________
(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, collectively, Commercial Bank Loan Yield was 6.74%, 7.14% and 7.15%, respectively.
(4) For the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, collectively, Commercial Bank Net Interest Margin was 4.64%, 4.38% and 4.01%, respectively.

Nine Months Ended September 30, 2025 2024 Average
Outstanding
Balance Interest Income/
Expense Average
Yield/
Rate(1) Average
Outstanding
Balance Interest Income/
Expense Average
Yield/
Rate(1) (in thousands)Assets Interest earning assets: Interest-bearing deposits$193,337 $6,342 4.39% $84,254 $3,123 4.95%Federal funds sold 59 2 4.24 57 3 7.03 Investment securities available-for-sale 235,690 5,248 2.98 226,151 3,902 2.30 Restricted investments 6,622 306 6.17 4,982 253 6.78 Loans held for sale 11,046 629 7.62 7,591 376 6.62 Portfolio loans receivable(2)(3) 2,719,834 179,710 8.83 1,991,435 143,937 9.65 Total interest earning assets 3,166,588 192,237 8.12 2,314,470 151,594 8.75 Noninterest earning assets 131,582 49,458 Total assets$3,298,170 $2,363,928 Liabilities and Stockholders’ Equity Interest-bearing liabilities: Interest-bearing demand accounts$269,184 $1,147 0.57% $209,346 $579 0.37%Savings 13,044 49 0.51 4,460 7 0.21 Money market accounts 927,044 24,071 3.47 684,017 21,610 4.22 Time deposits 830,451 20,699 3.33 465,256 17,589 5.05 Borrowed funds 34,062 558 2.19 52,461 1,390 3.54 Total interest-bearing liabilities 2,073,785 46,524 3.00 1,415,540 41,175 3.89 Noninterest-bearing liabilities: Noninterest-bearing liabilities 48,374 25,844 Noninterest-bearing deposits 802,991 657,044 Stockholders’ equity 373,020 265,500 Total liabilities and stockholders’ equity$3,298,170 $2,363,928 Net interest spread 5.12% 4.86%Net interest income $145,713 $110,419 Net interest margin(4) 6.15% 6.37%

(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the nine months ended September 30, 2025 and 2024, collectively. Commercial Bank Loan Yield was 7.01% and 7.05%, respectively.
(4) For the nine months ended September 30, 2025 and 2024, collectively. Commercial Bank Net Interest Margin was 4.45% and 4.13%, respectively.

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

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

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

Segments For the three months ended September 30, 2025 (in thousands) Commercial Bank OpenSky™ Windsor Advantage™ CBHL ConsolidatedInterest income(2) $49,035 $15,628 $— $228 $64,891 Interest expense 12,768 — — 103 12,871 Net interest income 36,267 15,628 — 125 52,020 Provision for credit losses 1,852 2,798 — — 4,650 Provision for credit losses on unfunded commitments 217 — — — 217 Net interest income after provision 34,198 12,830 — 125 47,153 Noninterest income Service charges on deposits 425 — — — 425 Credit card fees — 4,509 — — 4,509 Mortgage banking revenue 315 — — 1,612 1,927 Government lending revenue 14 — — — 14 Government loan servicing revenue(1) (1,074) — 5,339 — 4,265 Loan servicing rights (government guaranteed)(2) 368 — — — 368 Other (loss) income (557) (33) — 150 (440)Total noninterest income (509) 4,476 5,339 1,762 11,068 Noninterest expenses Salaries and employee benefits 10,559 3,271 2,455 1,443 17,728 Occupancy and equipment 1,635 632 416 166 2,849 Professional fees 1,079 571 198 283 2,131 Data processing 350 7,154 97 53 7,654 Advertising 694 833 76 111 1,714 Loan processing 740 15 67 292 1,114 Foreclosed real estate expenses, net — — — — — Merger-related expenses 697 — — — 697 Operational losses — 923 — — 923 Regulatory assessment expenses 788 (30) (11) (7) 740 Other operating 1,493 587 614 110 2,804 Total noninterest expenses 18,035 13,956 3,912 2,451 38,354 Net income (loss) before taxes $15,654 $3,350 $1,427 $(564) $19,867 Total assets $3,213,222 $134,422 $21,743 $20,055 $3,389,442

________________________
(1) Gross government loan servicing revenue totaled $5.3 million, including $1.1 million of servicing fees earned from the Commercial Bank by Windsor, for the three months ended September 30, 2025.
(2) Interest income of $49.0 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.

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

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

Segments For the three months ended September 30, 2024 (in thousands) Commercial Bank OpenSky™ Windsor Advantage™ CBHL ConsolidatedInterest income $36,824 $15,625 $— $161 $52,610Interest expense 14,148 — — 108 14,256Net interest income 22,676 15,625 — 53 38,354Provision for credit losses 1,454 2,294 — — 3,748Provision for credit losses on unfunded commitments 17 — — — 17Net interest income after provision 21,205 13,331 — 53 34,589Noninterest income Service charges on deposits 235 — — — 235Credit card fees — 4,055 — — 4,055Mortgage banking revenue 166 — — 1,716 1,882Other income 327 41 — 95 463Total noninterest income 728 4,096 — 1,811 6,635Noninterest expense Salaries and employee benefits 8,542 3,273 — 1,530 13,345Occupancy and equipment 1,165 485 — 141 1,791Professional fees 1,005 722 — 253 1,980Data processing 396 6,492 — 42 6,930Advertising 429 697 — 97 1,223Loan processing 371 16 — 228 615Foreclosed real estate expenses, net 1 — — — 1Merger-related expenses 520 — — — 520Operational losses 8 1,000 — — 1,008Regulatory assessment expenses 483 — — — 483Other operating 1,134 591 — 104 1,829Total noninterest expenses 14,054 13,276 — 2,395 29,725Net income (loss) before taxes $7,879 $4,151 $— $(531) $11,499 Total assets $2,419,370 $121,587 $— $19,831 $2,560,788

Segments For the nine months ended September 30, 2025 (in thousands) Commercial Bank OpenSky™ Windsor Advantage™ CBHL ConsolidatedInterest income(2) $147,128 $44,566 $— $543 $192,237Interest expense 46,273 — — 251 46,524Net interest income 100,855 44,566 — 292 145,713Provision for credit losses 3,457 7,520 — — 10,977Provision for credit losses on unfunded commitments 217 — — — 217Net interest income after provision 97,181 37,046 — 292 134,519Noninterest income Service charges on deposits 945 — — — 945Credit card fees — 12,529 — — 12,529Mortgage banking revenue 1,043 — — 4,469 5,512Government lending revenue 4,222 — — — 4,222Government loan servicing revenue(1) (3,164) — 14,641 — 11,477Loan servicing rights (government guaranteed) 250 — — — 250Other income 1,215 3 — 570 1,788Total noninterest income 4,511 12,532 14,641 5,039 36,723Noninterest expenses Salaries and employee benefits 32,275 10,019 7,370 4,591 54,255Occupancy and equipment 5,115 1,693 1,495 451 8,754Professional fees 3,802 1,714 389 760 6,665Data processing 1,244 20,633 283 126 22,286Advertising 2,207 2,177 215 265 4,864Loan processing 1,867 58 128 783 2,836Foreclosed real estate expenses, net 1 — — — 1Merger-related expenses 3,361 — — — 3,361Operational losses 131 2,628 — — 2,759Regulatory assessment expenses 2,513 — — — 2,513Other operating 4,718 1,441 1,222 304 7,685Total noninterest expenses 57,234 40,363 11,102 7,280 115,979Net income (loss) before taxes $44,458 $9,215 $3,539 $(1,949) $55,263 Total assets $3,213,222 $134,422 $21,743 $20,055 $3,389,442

________________________
(1) Gross government loan servicing revenue totaled $14.6 million, including $3.2 million of servicing fees earned from the Commercial Bank by Windsor, for the nine months ended September 30, 2025.
(2) Interest income of $147.1 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.

Segments For the nine months ended September 30, 2024 (in thousands) Commercial Bank OpenSky™ Windsor Advantage™ CBHL ConsolidatedInterest income $104,887 $46,331 $— $376 $151,594Interest expense 40,943 — — 232 41,175Net interest income 63,944 46,331 — 144 110,419Provision for credit losses 3,740 6,152 — — 9,892Provision for credit losses on unfunded commitments 263 — — — 263Net interest income after provision 59,941 40,179 — 144 100,264Noninterest income Service charges on deposits 642 — — — 642Credit card fees — 12,266 — — 12,266Mortgage banking revenue 788 — — 4,537 5,325Other income 680 113 — 471 1,264Total noninterest income 2,110 12,379 — 5,008 19,497Noninterest expenses Salaries and employee benefits 25,846 9,171 — 4,507 39,524Occupancy and equipment 3,430 1,418 — 420 5,268Professional fees 2,661 2,338 — 697 5,696Data processing 857 19,496 — 126 20,479Advertising 1,215 3,865 — 247 5,327Loan processing 763 45 — 654 1,462Foreclosed real estate expenses, net 2 — — — 2Merger-related expenses 1,315 — — — 1,315Operational losses 13 2,708 — — 2,721Regulatory assessment expenses 1,384 — — — 1,384Other operating 3,569 1,609 — 349 5,527Total noninterest expenses 41,055 40,650 — 7,000 88,705Net income (loss) before taxes $20,996 $11,908 $— $(1,848) $31,056 Total assets $2,419,370 $121,587 $— $19,831 $2,560,788

HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited Quarter Ended(in thousands, except per share data) September 30,
2025 June 30,
2025 March 31,
2025 December 31,
2024 September 30,
2024Earnings: Net income $15,065 $13,136 $13,932 $7,533 $8,672 Earnings per common share, diluted 0.89 0.78 0.82 0.45 0.62 Net interest margin 6.36% 6.04% 6.05% 5.87% 6.41%Commercial Bank net interest margin(2) 4.64% 4.38% 4.32% 3.99% 4.01%Return on average assets(1) 1.77% 1.60% 1.75% 0.96% 1.42%Return on average equity(1) 15.57% 14.17% 15.56% 8.50% 12.59%Efficiency ratio 60.79% 65.14% 64.94% 66.70% 66.07% Balance Sheet: Total portfolio loans receivable, net deferred fees $2,821,983 $2,739,808 $2,678,406 $2,630,163 $2,107,522 Total deposits 2,912,053 2,940,738 2,891,333 2,761,939 2,186,224 Total assets 3,389,442 3,388,662 3,349,805 3,206,911 2,560,788 Total stockholders' equity 394,770 380,035 369,577 355,139 280,111 Total average portfolio loans receivable, net deferred fees 2,789,815 2,733,865 2,634,110 2,592,960 2,053,619 Total average deposits 2,917,067 2,841,153 2,768,284 2,611,994 2,091,294 Portfolio loans-to-deposit ratio (period-end balances) 96.91% 93.17% 92.64% 95.23% 96.40%Portfolio loans-to-deposit ratio (average balances) 95.64% 96.22% 95.15% 99.27% 98.20% Asset Quality Ratios: Nonperforming assets to total assets 1.54% 1.07% 1.28% 0.94% 0.60%Nonperforming loans to total loans 1.85% 1.32% 1.60% 1.15% 0.73%Net charge-offs to average portfolio loans(1) 0.35% 0.75% 0.38% 0.37% 0.51%Allowance for credit losses to total loans 1.88% 1.73% 1.81% 1.85% 1.51%Allowance for credit losses to non-performing loans 101.53% 131.19% 112.86% 160.88% 206.50% Bank Capital Ratios: Total risk based capital ratio 12.92% 13.13% 12.93% 12.79% 13.76%Tier-1 risk based capital ratio 11.66% 11.87% 11.67% 11.54% 12.50%Leverage ratio 9.31% 9.39% 9.27% 9.17% 9.84%Common Equity Tier-1 capital ratio 11.66% 11.87% 11.67% 11.54% 12.50%Tangible common equity 9.04% 8.84% 8.66% 9.31% 9.12%Holding Company Capital Ratios: Total risk based capital ratio 15.22% 15.30% 14.97% 15.48% 16.65%Tier-1 risk based capital ratio 13.59% 13.66% 13.32% 13.83% 14.88%Leverage ratio 10.96% 10.90% 10.68% 11.07% 11.85%Common Equity Tier-1 capital ratio 13.51% 13.58% 13.24% 13.74% 14.78%Tangible common equity 10.57% 10.22% 9.94% 11.07% 10.94%

_______________
(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) September 30,
2025 June 30,
2025 March 31,
2025 December 31,
2024 September 30,
2024Composition of Loans: Commercial real estate, non owner-occupied $509,878 $495,341 $484,399 $471,329 $403,487 Commercial real estate, owner-occupied 442,827 436,421 420,643 440,026 351,462 Residential real estate 740,060 710,730 693,597 688,552 623,684 Construction real estate 344,290 343,189 343,280 321,252 301,909 Commercial and industrial 619,148 593,279 594,331 554,550 271,811 Lender finance 31,883 32,494 23,165 28,574 29,546 Business equity lines of credit 2,931 2,853 3,468 3,090 2,663 Credit card, net of reserve(3) 136,483 131,029 118,709 127,766 127,098 Other consumer loans 2,010 2,727 2,200 2,089 2,045 Portfolio loans receivable $2,829,510 $2,748,063 $2,683,792 $2,637,228 $2,113,705 Deferred origination fees, net (7,527) (8,255) (5,386) (7,065) (6,183)Portfolio loans receivable, net $2,821,983 $2,739,808 $2,678,406 $2,630,163 $2,107,522 Composition of Deposits: Noninterest-bearing $857,542 $836,979 $812,224 $810,928 $718,120 Interest-bearing demand 275,767 319,431 296,455 238,881 266,493 Savings 12,835 12,879 12,819 13,488 3,763 Money markets 989,160 960,237 912,418 816,708 686,526 Customer time deposits 539,207 541,079 549,630 548,901 358,300 Brokered time deposits 237,542 270,133 307,787 333,033 153,022 Total deposits $2,912,053 $2,940,738 $2,891,333 $2,761,939 $2,186,224 Capital Bank Home Loan Metrics: Origination of loans held for sale $80,651 $80,334 $65,815 $89,998 $74,690 Mortgage loans sold 66,409 59,663 54,144 77,399 67,296 Gain on sale of loans 1,698 1,597 1,664 1,897 1,644 Purchase volume as a % of originations 92.32% 91.61% 90.73% 90.42% 90.98%Gain on sale as a % of loans sold(4) 2.56% 2.68% 3.07% 2.45% 2.44%Mortgage commissions $656 $501 $545 $620 $598 OpenSky™Portfolio Metrics: Open customer accounts 587,641 585,372 563,718 552,566 548,952 Secured credit card loans, gross $84,737 $86,400 $81,252 $87,226 $89,641 Unsecured credit card loans, gross 53,633 46,352 38,987 42,430 39,730 Noninterest secured credit card deposits 166,874 168,936 168,796 166,355 170,750

_______________
(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 MetricsQuarter Ended(in thousands, except per share data)September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Net Income$15,065 $13,136 $13,932 $7,533 $8,672 Add: Income from the Call of Brokered Time Deposits, Net of Tax (3,489) — — — — Add: Merger-Related Expenses, Net of Tax 575 1,070 964 2,151 557 Add: Non-Recurring Equity and Debt Investment Write-Down — — — 2,620 — Add: IFH ACL Provision, Net of Tax — — — 3,169 — Core Net Income$12,151 $14,206 $14,896 $15,473 $9,229 Weighted Average Common Shares - Diluted 16,844 16,802 16,925 16,729 13,951 Earnings per Share - Diluted$0.89 $0.78 $0.82 $0.45 $0.62 Core Earnings per Share - Diluted$0.72 $0.85 $0.88 $0.92 $0.66 Average Assets$3,378,296 $3,292,533 $3,221,964 $3,120,107 $2,437,870 Return on Average Assets(1) 1.77% 1.60% 1.75% 0.96% 1.42%Core Return on Average Assets(1) 1.43% 1.73% 1.87% 1.97% 1.51% Average Equity$383,922 $371,795 $363,115 $352,537 $274,087 Return on Average Equity(1) 15.57% 14.17% 15.56% 8.50% 12.59%Core Return on Average Equity(1) 12.56% 15.33% 16.64% 17.46% 13.40% Net Interest Income$52,020 $47,646 $46,047 $44,327 $38,354 Less: Brokered Time Deposit Call 4,618 — — — — Core Net Interest Income (a)$47,402 $47,646 $46,047 $44,327 $38,354 Noninterest Income 11,068 13,106 12,549 11,913 6,635 Total Revenue$58,470 $60,752 $58,596 $56,240 $44,989 Noninterest Expense$38,354 $39,572 $38,053 $37,514 $29,725 Efficiency Ratio(2) 65.6% 65.1% 64.9% 66.7% 66.1% Noninterest Income$11,068 $13,106 $12,549 $11,913 $6,635 Add: Non-Recurring Equity and Debt Investment Write-Down — — — 2,620 — Core Fee Revenue (b)$11,068 $13,106 $12,549 $14,533 $6,635 Core Revenue (a) + (b)$58,470 $60,752 $58,596 $58,860 $44,989 Noninterest Expense$38,354 $39,572 $38,053 $37,514 $29,725 Less: Merger-Related Expenses 697 1,398 1,266 2,615 520 Core Noninterest Expense$37,657 $38,174 $36,787 $34,899 $29,205 Core Efficiency Ratio(2) 64.4% 62.8% 62.8% 59.3% 64.9%

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

Core Earnings MetricsNine Months Ended(in t