Fourth Quarter 2025 Highlights
-- GAAP Net Income of $15.0 million was flat compared to 3Q 2025. Earnings
per share of $0.91 increased $0.02 per share, compared to 3Q 2025 and
return on average assets ("ROA") of 1.71% decreased 6 basis points
compared to 3Q 2025
-- Core net income(1) of $15.0 million, or $0.91 per share increased
$0.19 per share compared to 3Q 2025 and Core ROA(1) of 1.71%
increased 28 basis points compared to 3Q 2025
-- Book value per common share of $24.54 at December 31, 2025, increased
$0.74 compared to 3Q 2025, and increased $3.23 when compared to 4Q 2024
-- Tangible book value per share(1) of $22.05, increased 3.4% (not
annualized), or $0.72 as compared to 3Q 2025, and increased 15.5%,
or $2.96 compared to 4Q 2024
-- Return on average equity ("ROE") of 15.23% decreased 34 basis points
compared to 3Q 2025, and return on average tangible common equity
("ROTCE")(1) of 17.23% decreased 26 basis points compared to 3Q 2025
-- Core ROE(1) of 15.23% increased 267 basis points compared to 3Q
2025 and Core ROTCE(1) of 17.23% increased 308 basis points
compared to 3Q 2025
-- Gross Loans(2) grew $137.5 million, or 19.3% (annualized), during 4Q
2025, and grew $329.3 million, or 12.5% from 4Q 2024
-- Total deposits grew $180.9 million, or 24.6% (annualized), from 3Q 2025
and grew $331.0 million, or 12.0% from 4Q 2024
-- Customer Deposit3 growth of $41.8 million, or 6.2% (annualized)
from 3Q 2025, and $287.4 million, or 11.8% from 4Q 2024
-- Net interest income decreased $1.7 million, or 3.3% (not annualized) from
3Q 2025, mainly due to the $4.6 million of accretion during 3Q 2025 from
refinancing callable brokered time deposits acquired in the IFH
transaction, and increased $6.0 million, or 13.4% from 4Q 2024, primarily
driven by growth from the Commercial Bank.
-- Net Interest Margin ("NIM") of 5.94% decreased 42 bps compared to 3Q 2025
and increased 7 bps compared to 4Q 2024
-- Commercial Bank NIM(1) of 4.18% decreased by 46 bps (but increased
21 bps when excluding purchase accounting accretion ("PAA")),
compared to 3Q 2025, and increased 19 bps, compared to 4Q 2024
-- 4Q 2025 net PAA of $0.2 million, or 3 bps of NIM and 3 bps of
Commercial Bank NIM(1), decreased $5.3 million, or 61 bps,
compared to 3Q 2025.
-- The allowance for credit losses to total loans ("ACL Coverage Ratio")
equaled 1.85% at December 31, 2025, which represented a 3 bps decrease
from September 30, 2025, and remained flat year-over-year.
-- The Commercial Bank ACL Coverage Ratio(1) equaled 1.65% at
December 31, 2025, which represented a 5 bps decrease from 1.70%
at both September 30, 2025 and December 31, 2024
-- Fee Revenue (noninterest income) totaled $12.5 million, or 19.9% of total
revenue for 4Q 2025, an increase of $1.4 million from 3Q 2025 primarily
due to SBIC income, and increased $0.6 million from 4Q 2024
-- Cash Dividend of $0.12 per share declared by the Board of Directors
-- Shares repurchased and retired during the three months ended December 31,
2025, as part of the Company's stock repurchase program, totaled 304,288
shares at an average price of $28.12, for a total cost of $8.6 million
(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 pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non--GAAP measures to their comparable GAAP measures are set forth in the Appendix 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., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company") $(CBNK)$, the holding company for Capital Bank, N.A. (the "Bank"), today reported net income of $15.0 million, or $0.91 per diluted share, for 4Q 2025, compared to net income of $15.1 million, or $0.89 per diluted share, for 3Q 2025, and $7.5 million, or $0.45 per diluted share, for 4Q 2024. Core net income(1() for 4Q 2025 of $15.0 million, or $0.91 per diluted share, compared to $12.2 million, or $0.72 per diluted share in 3Q 2025, and $15.5 million, or $0.92 per diluted share, for 4Q 2024.
The Company also declared a cash dividend on its common stock of $0.12 per share. The dividend is payable on February 28, 2026 to shareholders of record on February 9, 2026.
"Our diversified business model continues to be a source of consistency and strength enabling us to perform at a high level in different market conditions," said Ed Barry, CEO of the Company. With the IFH integration behind us, our focus on executing our strategic plan remains our top priority. Our growth levers offer us a wide range of options on which we are capitalizing."
"We continue to demonstrate our ability to deliver meaningful growth in tangible book value per share and loans outstanding, and we are pleased that net interest margin has proven durable," said Steven J Schwartz, Chairman of the Company. "Our ongoing and planned investments in technology and human capital give me confidence that we are well-positioned to carry forward our strategy for profitable organic growth and to capitalize on opportunities that may arise for bolt-on and other acquisitions. Further, I expect our ongoing, opportunistic stock buyback program will, over time, prove to have been a wise use of our capital."
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 income from the call of brokered time deposits, merger-related expenses and other one-time non-recurring transactions.
Fourth Quarter 2025 Third Quarter 2025
Income Diluted Income Diluted
(in thousands, Before Income Earnings Before Income Tax Earnings
except per Income Tax Net per Income Expense Net per
share data) Taxes Expense Income Share Taxes (Benefit) Income Share
------- -------- ------- -------- ------------ ------------ -------- --------
GAAP Net Income $19,681 $ 4,644 $15,037 $ 0.91 $19,867 $ 4,802 $15,065 $ 0.89
Deduct: Income
from the Call
of Brokered
Time Deposits -- -- -- (4,618) (1,129) (3,489)
Add:
Merger-Related
Expenses -- -- -- 697 122 575
------ ------- ------ -------- ------ --- ------ --- ------ --------
Core Net
Income(1) $19,681 $ 4,644 $15,037 $ 0.91 $15,946 $ 3,795 $12,151 $ 0.72
====== ======= ====== ======= ====== === ====== === ====== =======
Year Ended December 31, 2025 Year Ended December 31, 2024
----------------------------------------------- ---------------------------------------
Income Diluted Income Diluted
(in thousands Before Income Tax Earnings Before Income Tax Earnings
except per Income Expense Net per Income Expense Net per
share data) Taxes (Benefit) Income Share Taxes (Benefit) Income Share
------------ ------------ -------- --------- ------- ---------- ------- ---------
GAAP Net Income $74,944 $17,774 $57,170 $ 3.41 $41,832 $ 10,860 $30,972 $ 2.12
Deduct: Income
from the Call
of Brokered
Time Deposits (4,618) (1,129) (3,489) -- -- --
Add:
Merger-Related
Expenses 3,361 752 2,609 3,930 622 3,308
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) $73,687 $17,397 $56,290 $ 3.36 $52,576 $ 12,507 $40,069 $ 2.74
====== === ====== === ====== ======== ====== ========= ====== ========
([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 pre-tax adjustments which are not indicative of operating performance 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.)
(Note: The income tax expense reflects the non-deductibility of certain merger-related expenses.)
Fourth Quarter 2025 Results
Earnings Summary
Net income of $15.0 million was flat compared to 3Q 2025, and earnings per share of $0.91 increased $0.02 per share from 3Q 2025. Net income increased $7.5 million, or 99.6%, from $7.5 million, or $0.45 per diluted share, for 4Q 2024. 4Q 2025 core net income(1() of $15.0 million, or $0.91 per diluted share, increased $2.9 million, or 18.1%, from 3Q 2025 core net income of $12.2 million, or $0.72 per diluted share. 4Q 2025 core net income decreased $0.4 million, or 2.8%, from 4Q 2024 core net income of $15.5 million, or $0.92 per diluted share.
([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 pre-tax adjustments which are not indicative of operating performance 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.)
-- Net interest income of $50.3 million decreased $1.7 million, or 3.3% (not
annualized), compared to 3Q 2025, and increased $6.0 million, or 13.4%,
year-over-year.
-- During 3Q 2025 there were two non-recurring events that impacted
net interest 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
adjustment 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, 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").
-- When excluding the Call of Brokered Time Deposits and
Interest Income Adjustment in 3Q 2025, net interest income
increased $1.6 million, or 3.2%, from 3Q 2025.
-- Interest income of $68.6 million increased $3.7 million, or 5.8%
(not annualized), over 3Q 2025, and increased $6.9 million, or
11.2%, year-over-year. When excluding the Interest Income
Adjustment, interest income increased $2.4 million from 3Q 2025,
driven by $0.8 million of growth from OpenSky$(TM)$ and $1.6 million
from the Commercial Bank, while the increase year-over-year was
primarily driven by strong balance sheet growth and higher net
PAA.
-- Interest income included $0.1 million from net PAA in 4Q
2025, compared to $0.2 million in 3Q 2025 and $0.7 million
in net PAA in 4Q 2024.
-- Interest expense of $18.4 million increased $5.5 million, or 42.6%
(not annualized), compared to 3Q 2025, and increased $1.0 million,
or 5.6%, year-over-year. When excluding the Call of Brokered Time
Deposits, interest expense increased $0.9 million, or 5.1%,
compared to 3Q 2025, primarily driven by $0.5 million lower PAA
and a $0.4 million increase from borrowings costs. The increase of
$1.0 million year-over-year was primarily driven by $1.3 million
of lower PAA offset by a $0.3 million shift in portfolio mix.
-- Interest expense included a $0.2 million benefit from net
PAA in 4Q 2025, compared to a $5.3 million benefit in 3Q
2025, which included $4.6 million from the Call of Brokered
Time Deposits. There was $1.4 million from net PAA in 4Q
2024.
-- The 4Q 2025 provision for credit losses was $4.0 million, a decrease of
$0.7 million from 3Q 2025. During the quarter, a $2.0 million credit to
the allowance for credit losses was made to reflect recoveries resulting
from the sale of $69.5 million charged-off OpenSky(TM) credit card
receivables. Net charge-offs totaled $2.4 million, or 0.32% of portfolio
loans (annualized), down from $2.5 million or 0.35% of portfolio loans
(annualized), in 3Q 2025. Net charge-offs in the quarter include
$1.9 million from the Commercial Bank and $0.5 million from OpenSky(TM)
loans. Net charge-offs for the Commercial Bank increased $1.6 million
from 3Q 2025 primarily driven by legacy Commercial Bank loans not
previously provided for, and OpenSky(TM) net-charge-offs decreased $1.7
million from 3Q 2025 primarily driven by the sale of OpenSky(TM) credit
card debt.
-- At December 31, 2025, the ACL Coverage Ratio was 1.85%, down 3 bps
from September 30, 2025, and flat year-over-year.
-- Fee Revenue of $12.5 million increased $1.4 million, compared to 3Q 2025
and increased $0.6 million year-over-year. During 4Q 2025, Core fee
revenue(1) of $12.5 million increased $1.4 million as a result of a $1.2
million higher SBIC investment income and a $0.3 million increase in
credit card fees from OpenSky(TM), offset by a $0.1 million decrease in
loan servicing rights income. Year-over-year core fee revenue(1)
decreased $2.1 million primarily due to a decrease in government lending
revenue of $2.3 million offset by a $0.1 million increase from mortgage
banking revenue and an increase of $0.1 million from service charges on
deposits. Core fee revenue mix was 19.9% of total revenue for 4Q 2025,
compared to 17.5% during 3Q 2025, and 24.7% during 4Q 2024.
-- Noninterest expense of $39.1 million increased $0.7 million compared to
3Q 2025 and increased $1.6 million compared to 4Q 2024. Core noninterest
expense(1) of $39.1 million increased $1.4 million compared to 3Q 2025
and increased $4.2 million compared to 4Q 2024. Core comparisons include:
-- The increase of $1.4 million quarter-over-quarter was primarily
driven by professional fees including costs for investment in
OpenSky(TM) initiatives and other investments in technology,
offset by decreases from OpenSky(TM) marketing, occupancy &
equipment from leases and software contracts, and data processing
from Windsor(TM) and OpenSky(TM).
-- Year-over-year expense growth of $4.2 million was driven by
professional fees associated with investments in shared services
areas, personnel expense due to headcount growth, marketing
expense from OpenSky(TM), and regulatory fees driven by the
acquisition of IFH.
-- Income tax expense of $4.6 million, or 23.6% of pre-tax income for 4Q
2025, decreased $0.2 million from $4.8 million, or 24.2% of pre-tax
income for 3Q 2025. The effective income tax rate change
quarter-over-quarter was primarily due to the $1.1 million utilization of
a deferred tax asset related to the Call of Brokered Time Deposits during
3Q 2025.
-- The Core effective income tax rate(1) for 4Q 2025 and 3Q 2025
would have been 23.6% and 23.8%, 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 pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non--GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.)
Balance Sheet
Total assets of $3.6 billion at December 31, 2025 increased $216.8 million from September 30, 2025. Total assets growth year-over-year was $399.3 million, or 12.5%.
-- Gross Loans of $2.96 billion at December 31, 2025 increased
$137.5 million, or 19.3% (annualized), from September 30, 2025 and
increased $329.3 million, or 12.5%, year-over-year.
-- Compared to September 30, 2025, growth was primarily driven by
$79.1 million from commercial and industrial ("C&I"),
$25.7 million from residential real estate, $15.3 million from
construction real estate, $9.5 million from lender finance, and
$5.9 million from OpenSky(TM).
-- Compared to December 31, 2024, growth was primarily driven by
$143.7 million from C&I, $77.3 million from residential real
estate, $40.5 million from commercial real estate ("CRE"),
$38.3 million from construction real estate, $14.6 million from
OpenSky(TM), and $12.8 million from lender finance.
-- C&l loans, plus owner-occupied CRE loans totaled 37.7% of total
portfolio loans at December 31, 2025, consistent with the prior
quarter, and 37.8% at December 31, 2024.
-- Total deposits of $3.09 billion at December 31, 2025 increased
$180.9 million, or 24.6% (annualized), from September 30, 2025, and
increased $331.0 million, or 12.0% (annualized) from December 31, 2024.
-- When excluding the increase in brokered time deposits of
$139.1 million, customer deposits increased $41.8 million or 5.7%
(annualized), including $116.0 million of growth in customer money
market deposits, offset by a decrease of $49.5 million in customer
time deposits, an $18.5 million decrease from interest-bearing
demand accounts, a $5.0 million decrease from noninterest-bearing
deposits, and a $1.2 million decrease from savings accounts.
-- The increase in total deposits of $331.0 million year-over-year
was driven by $288.5 million in growth from customer money market
deposits, $43.6 million from brokered time deposits, $41.6 million
from noninterest-bearing deposits, $18.4 million from
interest-bearing demand accounts, offset by a decrease of
$59.2 million from customer time deposits, and $1.8 million from
savings accounts.
-- Insured and protected1 deposits were approximately $2.1 billion as of
December 31, 2025 representing 68.4% of the Company's deposit portfolio.
-- Low interest and noninterest-bearing DDA deposits of $1.1 billion, or
36.3% of deposits, decreased $24.7 million, or 8.6% (annualized) from 3Q
2025, but increased $58.1 million, or 5.5% year-over-year.
-- The average rate on the low interest and noninterest-bearing
deposits was 0.14% for 4Q 2025, which remained flat compared to 3Q
2025 and year-over-year.
-- The average portfolio loans-to-deposit ratio was 97.0% for 4Q 2025,
compared to 95.6% for 3Q 2025, and 99.3% for 4Q 2024.
-- The investment securities portfolio continues to be classified as
available-for-sale and had a fair market value of $230.1 million, or 6.4%
of total assets, an effective duration of 2.5 years, with U.S. Treasury
Securities representing 60% of the overall investment portfolio at
December 31, 2025. The accumulated other comprehensive income (loss) on
the investment securities portfolio improved $1.0 million during the
quarter to negative $5.8 million after-tax as of December 31, 2025, which
represents 1.4% 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 December 31, 2025 totaled $817.9 million,
compared to $858.4 from 3Q 2025. During 4Q 2025, available collateralized
lines of credit totaled $731.6 million, unsecured lines of credit with
other banks totaled $76.0 million and unpledged investment securities
available as collateral for potential additional borrowings totaled $9.3
million.
-- Capital Positions -- As of December 31, 2025, the Company reported a
Common Equity Tier-1 capital ratio of 12.98%, compared to 13.54% at
September 30, 2025. At December 31, 2025, the Company and the Bank
maintained regulatory capital ratios that exceed all capital adequacy
requirements.
-- Shares repurchased and retired during the three months ended
December 31, 2025, as part of the Company's stock repurchase
program, totaled 304,288 shares at an average price of $28.12, for
a total cost of $8.6 million. As of December 31, 2025, there was
$3.3 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 5.94% for 4Q 2025, decreased 42 bps compared to the prior quarter, and increased 7 bps year-over-year. Commercial Bank NIM(1) of 4.18% decreased 46 bps (but increased 21 bps when excluding PAA) compared to the prior quarter, and increased 19 bps year-over-year. Net PAA for 4Q 2025 was 3 bps for NIM and 3 bps for Commercial Bank NIM(1) .
-- 3Q 2025 includes the previously mentioned $4.6 million Call of Brokered
Time Deposits and $1.3 million Interest Income Adjustment. Excluding the
Interest Income Adjustment and Call of Brokered Time Deposits in 3Q 2025,
Commercial Bank NIM(1) declined to 4.18%, or 3 bps, in 4Q 2025.
-- The average yield on interest earning assets of 8.10% increased 17 bps
compared to the prior quarter and decreased 7 bps year-over-year. During
3Q 2025 there was a 16 bps impact from the Interest Income Adjustment.
Excluding this item, the average yield in 3Q 2025 would have been 8.09%,
which results in a increase of 1 bps compared to 3Q 2025. The decrease
quarter-over-quarter was primarily a result of changes in the overall
rate environment. The average yield decreased 7 bps year-over-year
primarily due to changes in the overall rate environment.
-- The Commercial Bank Loan Yield(1) of 6.95% for 4Q 2025 increased
21 bps compared to 3Q 2025, and decreased 3 bps year-over-year.
Excluding the Interest Income Adjustment impact, the average yield
in 3Q 2025 would have been 6.94%, which remained flat compared to
3Q 2025.
-- The total cost of deposits of 2.36% for 4Q 2025 increased 63 bps compared
to the prior quarter and decreased 14 bps year-over-year. During 3Q 2025
there was a 63 bps impact from the Call of Brokered Time Deposits.
Excluding this item, the cost of deposits for the quarter would have been
2.36%, and 4Q 2025 would have been consistent with 3Q 2025.
-- The total cost of interest-bearing deposits increased 87 bps
quarter-over-quarter, and decreased 19 bps year-over-year, to 3.28% for
4Q 2025. Excluding the Call of Brokered Time Deposits, the 3Q 2025 cost
of interest-bearing deposits would have been 3.28%, and 4Q 2025 would
have been consistent with 3Q 2025. The decrease year-over-year was due to
a shift in product mix as well as a change in the rate environment.
-- Net PAA of $0.2 million, or 3 bps of NIM and 3 bps of Commercial Bank
NIM(1), during 4Q 2025, decreased $5.3 million from 3Q 2025 mainly due to
the Call of Brokered Time Deposits. There was $0.7 million from net PAA
during 4Q 2024.
-- NIM for 2025 was 6.10%, a year-over-year decrease of 15 bps from 6.22%
for 2024. The decrease was primarily driven by the acquisition of
commercial loans from IFH, which diluted the impact from OpenSky(TM).
-- Commercial Bank NIM(1) for 2025 was 4.38%, a year-over-year
increase of 45 bps from 3.93% for 2024 that was primarily driven
by the acquisition of commercial loans from IFH and balance sheet
growth from the Commercial Bank during 2025. Excluding the Call of
Brokered Time Deposits and Interest Income Adjustment, Commercial
Bank NIM(1) for 2025 would have been 4.27%, an increase of 34 bps
year-over-year.
Fee Revenue Mix -- The fee revenue mix was 19.9% of total revenue for 4Q 2025, compared to 17.5% during 3Q 2025, and 21.2% during 4Q 2024. The core fee revenue mix(1() was 19.9% for 4Q 2025, compared to 17.5% during 3Q 2025, and 24.7% during 4Q 2024.
Credit Metrics and Asset Quality -- The ACL Coverage Ratio equaled 1.85% at December 31, 2025, a decrease of 3 bps from September 30, 2025, and remained flat year-over-year.
Nonperforming assets were $58.3 million or 1.62% of total assets at December 31, 2025, an increase of $6.0 million or 7 bps compared to September 30, 2025. The increase in nonperforming assets from 3Q 2025 was primarily driven by $3.9 million from OREO, or 5 bps, and $2.2 million from the acquired IFH portfolio, or 2 bps. Nonperforming assets increased $28.0 million or 67 bps year-over-year, mainly due to the $15.9 million increase during 3Q 2025 from two loan relationships acquired as part of the IFH transaction, described last quarter, $4.4 million from other changes in the acquired IFH portfolio, $3.9 million from OREO, and $3.8 million from the legacy Commercial Bank portfolio. At December 31, 2025, substandard loans totaled $58.5 million, or 2.0% of total portfolio loans, compared to $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025 and $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024. The $10.1 million year-over-year increase in substandard loans was primarily driven by the $15.9 million of loans described above. At December 31, 2025, special mention loans totaled $57.9 million, or 2.0% of total portfolio loans, compared to $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025, and $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024.
Efficiency Ratios -- The efficiency ratio was 62.3% for 4Q 2025, compared to 60.8% for 3Q 2025 and 66.7% for 4Q 2024. The core efficiency ratio(1) was 62.3% for 4Q 2025, which decreased from 64.4% compared to the prior quarter, and increased from 59.3% for 4Q 2024.
([1] As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, Core fee revenue mix and Core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of income from the call of brokered time deposits, merger-related expenses and other certain pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non--GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.)
Financial Metrics (Continued)
Performance Ratios -- ROA was 1.71% for 4Q 2025, compared to 1.77% for 3Q 2025, and 0.96% for 4Q 2024. Core ROA((9) () for 4Q 2025 was 1.71%, compared to 1.43% for 3Q 2025, and 1.97% for 4Q 2024.
-- ROE was 15.23% for 4Q 2025, compared to 15.57% for 3Q 2025, and 8.50% for
4Q 2024. Core ROE(1) was 15.23% for 4Q 2025, compared to 12.56% for 3Q
2025, and 17.46% for 4Q 2024.
-- ROTCE(1) was 17.23% for 4Q 2025, compared to 17.49% for 3Q 2025, and
9.33% for 4Q 2024. Core ROTCE(1) for 4Q 2025 was 17.23%, compared to
14.15% for 3Q 2025, and 18.91% for 4Q 2024.
Book Value and Tangible Book Value -- Book value per common share of $24.54 at December 31, 2025, increased $0.74 when compared to September 30, 2025, and increased $3.23 when compared to December 31, 2024. Tangible book value per common share(1) increased $0.72, or 3.4% (not annualized), to $22.05 at December 31, 2025 when compared to September 30, 2025, and increased $2.96, or 15.5%, when compared to December 31, 2024. Tangible book value(1) 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 pre-tax adjustments which are not indicative of operating performance and tax impacts of such adjustments. Reconciliations of these and other non--GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.)
Commercial Bank
Loan Growth -- Portfolio loans((1) () increased $129.6 million at December 31, 2025 compared to September 30, 2025, driven by $79.1 million from C&I, $25.7 million from residential real estate, and $15.3 million from construction real estate. Portfolio loans increased $327.8 million at December 31, 2025 compared to December 31, 2024, driven by $143.7 million from C&I, $77.3 million from residential real estate, and $40.5 million from CRE. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.
Net Interest Income -- Interest income of $52.0 million increased $3.0 million from the prior quarter, primarily due to 3Q 2025, due to growth in the Commercial Bank loan portfolio during the quarter. Excluding the $1.3 million Interest Income Adjustment in 3Q 2025, interest income grew by $1.6 million from 3Q 2025. Interest expense of $18.2 million increased $5.5 million, primarily due to 3Q 2025 including a $4.6 million benefit from the Call of Brokered Time Deposits. The remaining $0.9 million increase was due to $0.5 million from lower PAA and $0.4 million from short term borrowings during 4Q 2025.
Credit Metrics -- Nonperforming assets increased 8 bps to 1.71% of total assets at December 31, 2025 compared to September 30, 2025. Total nonaccrual loans at December 31, 2025 were $54.4 million, an increase of $2.2 million or 4.0% compared to $52.2 million at September 30, 2025.
Classified and Criticized Loans -- At December 31, 2025, special mention loans totaled $57.9 million, or 2.0% of total portfolio loans, compared to $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025. At December 31, 2025, substandard loans totaled $58.5 million, or 2.0% of total portfolio loans, compared to $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025.
(1) (Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.)
OpenSky(TM)
Accounts -- During 4Q 2025, credit card accounts of 585.5 thousand declined by 2.1 thousand, or 0.4% (not annualized) from September 30, 2025, and increased 32.9 thousand, or 6.0% year-over-year.
Loan and Deposit Balances -- Secured and unsecured loan balances, net of reserves for interest and fees, of $142.4 million at December 31, 2025 increased by $5.9 million, or 4.3% (not annualized), compared to September 30, 2025 and $14.6 million, or 11.5%, year-over-year. Deposit balances of $163.2 million for 4Q 2025 decreased $3.7 million compared to 3Q 2025 and decreased $3.2 million, or 1.9% year-over-year. Gross unsecured loan balances of $61.4 million at December 31, 2025 increased $7.7 million, or 14.4% (not annualized), compared to $53.6 million at September 30, 2025, and increased $18.9 million year-over-year. Gross secured loan balances of $83.1 million at December 31, 2025 decreased $1.7 million, or 2.0% (not annualized), compared to $84.7 million at September 30, 2025, and decreased $4.2 million, or 4.8% (not annualized) year-over-year.
Net Interest Income -- Interest income of $16.4 million increased $0.7 million compared to 3Q 2025. Average OpenSky(TM) credit card loan balances, net of reserves and deferred fees of $133.9 million for 4Q 2025, increased $4.8 million, or 3.7% (not annualized), compared to 3Q 2025.
Fee Revenue -- Total fee revenue of $4.8 million increased $0.3 million from the prior quarter primarily driven by other credit-card related fees associated with the legacy product.
Noninterest Expense -- Total noninterest expense of $14.6 million increased $0.6 million compared to 3Q 2025, driven primarily by professional fees associated with the legacy and unsecured products.
OpenSky(TM) Credit -- Portfolio credit metrics continued to be consistent with modeled expectations during 4Q 2025. The provision for credit losses of $1.3 million decreased $1.5 million when compared to the prior quarter, primarily due to a $2.0 million credit to the allowance for credit losses was made to reflect the debt sale. OpenSky's(TM) unsecured loan product is offered exclusively to current and former secured card customers. Unsecured loans have been offered by OpenSky(TM) since the fourth quarter of 2021 and have generally performed in accordance with management expectations over that time period.
Capital Bank Home Loans
Originations of loans held for sale totaled $107.3 million during 4Q 2025, with $83.0 million of mortgage loans sold resulting in a gain on sale of loans of $2.1 million, representing a 2.58% gain on sale as a percentage of total loans sold. 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.
Windsor Advantage(TM)
Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of Capital Bank related servicing fees, during 4Q 2025. Gross government loan servicing revenue totaled $5.3 million, including $1.1 million of Capital Bank related servicing fees, during 3Q 2025. Windsor's(TM) total servicing portfolio was $3.1 billion at December 31, 2025, and $3.2 billion at September 30, 2025.
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
-----------------------------------------------------------------
Quarter Ended 4Q25 vs 3Q25 4Q25 vs 4Q24
-------------------- --------------------
(in thousands,
except per share December September December
data) 31, 2025 30, 2025 31, 2024 $ Change % Change $ Change % Change
----------- ----------- ----------- -------- ---------- -------- ----------
Earnings Summary
Interest income $68,634 $64,891 $61,707 $ 3,743 5.8% $ 6,927 11.2%
Interest expense 18,355 12,871 17,380 5,484 42.6% 975 5.6%
------ ------ ------ ------ ------ ------ ------
Net interest
income 50,279 52,020 44,327 (1,741) (3.3)% 5,952 13.4%
Provision for
credit losses 3,988 4,650 7,828 (662) (14.2)% (3,840) (49.1)%
(Release of)
provision for
credit losses
on unfunded
commitments (29) 217 122 (246) (113.4)% (151) (123.8)%
Noninterest
income 12,464 11,068 11,913 1,396 12.6% 551 4.6%
Noninterest
expense 39,103 38,354 37,514 749 2.0% 1,589 4.2%
------ ------ ------ ------ ------ ------ ------
Income before
income
taxes 19,681 19,867 10,776 (186) (0.9)% 8,905 82.6%
------ ------ ------ ------ ------ ------ ------
Income tax
expense 4,644 4,802 3,243 (158) (3.3)% 1,401 43.2%
------ ------ ------ ------ ------ ------ ------
Net income $15,037 $15,065 $ 7,533 $ (28) (0.2)% $ 7,504 99.6%
------ ------ ------ ------ ------ ------ ------
Pre-tax
pre-provision
net revenue
("PPNR") (1) $23,640 $24,734 $18,726 $(1,094) (4.4)% $ 4,914 26.2%
Core PPNR(1) $23,640 $20,813 $23,961 $ 2,827 13.6% $ (321) (1.3)%
Common Share
Data
Earnings per
share - Basic $ 0.91 $ 0.91 $ 0.45 $ -- --% $ 0.46 102.2%
Earnings per
share -
Diluted $ 0.91 $ 0.89 $ 0.45 $ 0.02 2.2% $ 0.46 102.2%
Core earnings
per share -
Diluted(1) $ 0.91 $ 0.72 $ 0.92 $ 0.19 26.4% $ (0.01) (1.1)%
Weighted average
common shares -
Basic 16,493 16,586 16,595
Weighted average
common shares -
Diluted 16,493 16,844 16,729
Return Ratios Return on average assets (annualized) 1.71% 1.77% 0.96% Core return on average assets (annualized)(1) 1.71% 1.43% 1.97% Return on average equity (annualized) 15.23% 15.57% 8.50% Core return on average equity (annualized)(1) 15.23% 12.56% 17.46% Return on average tangible common equity (annualized)(1) 17.23% 17.49% 9.33% Core return on average tangible common equity (annualized)(1) 17.23% 14.15% 18.91%
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
(Continued)
------------------------------------------------------
Year Ended
December 31,
--------------------------
(in thousands,
except per
share data) 2025 2024 $ Change % Change
------- ------- -------- ----------
Earnings
Summary
Interest income $260,871 $213,301 $47,570 22.3%
Interest expense 64,879 58,555 6,324 10.8%
------- ------- ------ ------
Net interest
income 195,992 154,746 41,246 26.7%
Provision for
credit losses 14,965 17,720 (2,755) (15.5)%
(Release of)
provision for
credit losses
on unfunded
commitments 188 385 (197) (51.2)%
Noninterest
income 49,187 31,410 17,777 56.6%
Noninterest
expense 155,082 126,219 28,863 22.9%
------- ------- ------ ------
Income before
income
taxes 74,944 41,832 33,112 79.2%
------- ------- ------ ------
Income tax
expense 17,774 10,860 6,914 63.7%
------- ------- ------ ------
Net income $ 57,170 $ 30,972 $26,198 84.6%
------- ------- ------ ------
Pre-tax
pre-provision
net revenue
("PPNR") (1) $ 90,097 $ 59,937 $30,160 50.3%
Core PPNR(1) $ 88,840 $ 66,487 $22,353 33.6%
Common Share
Data
Earnings per
share - Basic $ 3.45 $ 2.12 $ 1.33 62.7%
Earnings per
share -
Diluted $ 3.41 $ 2.12 $ 1.29 60.8%
Core earnings
per share -
Diluted(1) $ 3.36 $ 2.74
Weighted average
common shares -
Basic 16,582 14,584
Weighted average
common shares -
Diluted 16,768 14,640
Return Ratios
Return on
average assets 1.71% 1.21%
Core return on
average
assets(1) 1.68% 1.57%
Return on
average equity 15.13% 10.78%
Core return on
average
equity(1) 14.90% 13.94%
Return on
average
tangible common
equity(1) 17.10% 11.07%
Core return on
average
tangible common
equity(1) 16.84% 14.30%
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)
---------------------------------------------------------------------
Quarter Ended Quarter Ended
---------------------- ------ ------------------------------------
September
December 31, 30, June 30, March 31,
---------- ------------ ---------- ----------
(in thousands,
except per share
data) 2025 2024 % Change 2025 2025 2025
--------- --------- ---------- ----------- --------- ---------
Balance Sheet
Highlights
Assets $3,606,207 $3,206,911 12.5% $ 3,389,442 $3,388,662 $3,349,805
Investment
securities
available-for-sale 230,083 223,630 2.9% 232,640 228,923 213,452
Mortgage loans held
for sale 25,828 17,063 51.4% 14,146 15,933 30,005
Portfolio loans
receivable (2) 2,959,457 2,630,163 12.5% 2,821,983 2,739,808 2,678,406
Allowance for
credit losses 54,660 48,652 12.3% 53,045 47,447 48,454
Goodwill 25,969 21,126 22.9% 25,969 22,478 24,085
Intangible assets 13,246 14,072 (5.9)% 13,457 13,668 13,861
Core deposit
intangibles 1,525 1,745 (12.6)% 1,576 1,627 1,695
Deposits 3,092,979 2,761,939 12.0% 2,912,053 2,940,738 2,891,333
FHLB borrowings 50,000 22,000 127.3% 22,000 22,000 22,000
Other borrowed
funds 2,062 12,062 (82.9)% 12,062 12,062 12,062
Total stockholders'
equity 401,978 355,139 13.2% 394,770 380,035 369,577
Tangible common
equity (1) 361,238 318,196 13.5% 353,768 342,262 329,936
Common shares
outstanding 16,381 16,663 (1.7)% 16,589 16,582 16,657
Book value per
share $ 24.54 $ 21.31 15.2% $ 23.80 $ 22.92 $ 22.19
Tangible book value
per share (1) $ 22.05 $ 19.10 15.4% $ 21.33 $ 20.64 $ 19.81
Dividends per share $ 0.12 $ 0.10 20.0% $ 0.12 $ 0.10 $ 0.10
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Loans are reflected net of deferred fees and costs.
Consolidated Statements of Income (Unaudited)
-------------------------------------------------------------------------------------
Three Months Ended Year Ended
---------------------
March December
December September June 30, 31, December 31, December
(in thousands) 31, 2025 30, 2025 2025 2025 31, 2024 2025 31, 2024
----------- ----------- -------- ------- ----------- -------- -----------
Interest income
Loans, including fees $64,933 $60,838 $60,810 $58,691 $58,602 $245,272 $202,915
Investment securities
available-for-sale 1,728 1,805 1,582 1,861 1,539 6,976 5,441
Federal funds sold and
other 1,973 2,248 2,194 2,208 1,566 8,623 4,945
------ ------ ------ ------ ------ ------- -------
Total interest income 68,634 64,891 64,586 62,760 61,707 260,871 213,301
------ ------ ------ ------ ------ ------- -------
Interest expense
Deposits 17,805 12,732 16,722 16,512 16,385 63,771 56,170
Borrowed funds 550 139 218 201 995 1,108 2,385
------ ------ ------ ------ ------ ------- -------
Total interest
expense 18,355 12,871 16,940 16,713 17,380 64,879 58,555
------ ------ ------ ------ ------ ------- -------
Net interest income 50,279 52,020 47,646 46,047 44,327 195,992 154,746
Provision for credit
losses 3,988 4,650 4,081 2,246 7,828 14,965 17,720
(Release of) provision
for credit losses on
unfunded commitments (29) 217 -- -- 122 188 385
------ ------ ------ ------ ------ ------- -------
Net interest income
after provision for
credit losses 46,320 47,153 43,565 43,801 36,377 180,839 136,641
Noninterest income
Service charges on
deposits 371 425 262 258 241 1,316 883
Credit card fees 4,837 4,509 4,298 3,722 3,733 17,366 15,999
Mortgage banking revenue 1,960 1,927 1,754 1,831 1,821 7,472 7,146
Government lending
revenue -- 14 3,112 1,096 2,301 4,222 2,301
Government loan
servicing revenue 4,036 4,265 3,644 3,568 3,993 15,513 3,993
Loan servicing rights
(government
guaranteed) 295 368 (590) 472 1,013 545 1,013
Non-recurring equity and
debt investment
write-down -- -- -- -- (2,620) -- (2,620)
Other income 965 (440) 626 1,602 1,431 2,753 2,695
------ ------ ------ ------ ------ ------- -------
Total noninterest
income 12,464 11,068 13,106 12,549 11,913 49,187 31,410
Noninterest expenses
Salaries and employee
benefits 17,914 17,728 18,460 18,067 16,513 72,169 56,037
Occupancy and equipment 2,638 2,849 2,995 2,910 2,976 11,392 8,244
Professional fees 4,294 2,131 2,422 2,112 2,150 10,959 7,846
Data processing 7,502 7,654 7,520 7,112 7,210 29,788 27,689
Advertising 1,398 1,714 1,371 1,779 1,032 6,262 6,359
Loan processing 1,152 1,114 979 743 969 3,988 2,431
Foreclosed real estate
expenses, net -- -- -- 1 -- 1 2
Merger-related expenses -- 697 1,398 1,266 2,615 3,361 3,930
Operational and other
card fraud related
losses 750 923 933 903 993 3,509 3,714
Regulatory assessment
expenses 858 740 884 889 554 3,371 1,937
Other operating 2,597 2,804 2,610 2,271 2,502 10,282 8,030
------ ------ ------ ------ ------ ------- -------
Total noninterest
expenses 39,103 38,354 39,572 38,053 37,514 155,082 126,219
------ ------ ------ ------ ------ ------- -------
Income before income taxes 19,681 19,867 17,099 18,297 10,776 74,944 41,832
Income tax expense 4,644 4,802 3,963 4,365 3,243 17,774 10,860
------ ------ ------ ------ ------ ------- -------
Net income $15,037 $15,065 $13,136 $13,932 $ 7,533 $ 57,170 $ 30,972
====== ====== ====== ====== ====== ======= =======
Consolidated Balance
Sheets
--------------------------
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
----------- ----------- ----------- ----------- -------------
(in thousands, except December September June 30, March 31, December 31,
share data) 31, 2025 30, 2025 2025 2025 2024
----------- ----------- ----------- ----------- -------------
Assets
Cash and due from banks $ 30,894 $ 25,724 $ 26,843 $ 27,836 $ 25,433
Interest-bearing deposits
at other financial
institutions 224,611 163,078 247,704 266,092 179,841
Federal funds sold 60 59 59 59 58
--------- --------- --------- --------- ---------
Total cash and cash
equivalents 255,565 188,861 274,606 293,987 205,332
Investment securities
available-for-sale 230,083 232,640 228,923 213,452 223,630
Restricted investments 8,397 7,057 7,043 7,031 4,479
Loans held for sale 25,828 14,146 15,933 30,005 17,063
Portfolio loans
receivable, net of
deferred fees and costs 2,959,457 2,821,983 2,739,808 2,678,406 2,630,163
Less allowance for credit
losses (54,660) (53,045) (47,447) (48,454) (48,652)
--------- --------- --------- --------- ---------
Total portfolio
loans held for
investment, net 2,904,797 2,768,938 2,692,361 2,629,952 2,581,511
Premises and equipment,
net 15,072 15,304 14,863 15,085 15,525
Accrued interest
receivable 16,695 19,011 15,149 19,458 16,664
Goodwill 25,969 25,969 22,478 24,085 21,126
Intangible assets 13,246 13,457 13,668 13,861 14,072
Core deposit intangibles 1,525 1,576 1,627 1,695 1,745
Loan servicing assets 1,816 2,070 2,221 2,244 5,511
Deferred tax asset 14,992 14,885 15,667 15,902 16,670
Bank owned life insurance 45,488 45,105 44,721 44,335 43,956
Other assets 46,734 40,423 39,402 38,713 39,627
--------- --------- --------- --------- ---------
Total assets $3,606,207 $3,389,442 $3,388,662 $3,349,805 $3,206,911
========= ========= ========= ========= =========
Liabilities
Deposits
Noninterest-bearing $ 852,520 $ 857,543 $ 836,979 $ 812,224 $ 810,928
Interest-bearing 2,240,459 2,054,510 2,103,759 2,079,109 1,951,011
--------- --------- --------- --------- ---------
Total deposits 3,092,979 2,912,053 2,940,738 2,891,333 2,761,939
Federal Home Loan Bank
advances 50,000 22,000 22,000 22,000 22,000
Other borrowed funds 2,062 12,062 12,062 12,062 12,062
Accrued interest payable 8,745 8,045 8,158 9,995 9,393
Other liabilities 50,443 40,512 25,669 44,838 46,378
--------- --------- --------- --------- ---------
Total liabilities 3,204,229 2,994,672 3,008,627 2,980,228 2,851,772
--------- --------- --------- --------- ---------
Stockholders' equity
Common stock 164 166 166 167 167
Additional paid-in capital 120,913 127,359 126,888 128,692 128,598
Retained earnings 286,661 274,041 261,093 249,925 237,843
Accumulated other
comprehensive loss (5,760) (6,796) (8,112) (9,207) (11,469)
--------- --------- --------- --------- ---------
Total stockholders'
equity 401,978 394,770 380,035 369,577 355,139
--------- --------- --------- --------- ---------
Total liabilities
and stockholders'
equity $3,606,207 $3,389,442 $3,388,662 $3,349,805 $3,206,911
========= ========= ========= ========= =========
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 Three Months Ended Three Months Ended
December 31, 2025 September 30, 2025 December 31, 2024
--------------------------------- --------------------------------- ---------------------------------
Average Interest Average Average Interest Average Average Interest Average
Outstanding Income/ Yield/ Outstanding Income/ Yield/ Outstanding Income/ Yield/
Balance Expense Rate(1) Balance Expense Rate(1) Balance Expense Rate(1)
----------- --------- --------- ----------- --------- --------- ----------- --------- ---------
(in thousands)
Assets
Interest earning assets:
Interest-bearing
deposits $ 196,281 $ 1,868 3.78% $ 194,858 $ 2,139 4.36% $ 140,206 $ 1,446 4.10%
Federal funds sold 60 1 6.61 59 1 5.79 58 -- --
Investment
securities
available-for-sale 238,295 1,728 2.88 241,086 1,805 2.97 236,951 1,539 2.58
Restricted
investments 6,725 104 6.14 7,052 108 6.06 7,292 120 6.55
Loans held for sale 17,118 263 6.10 13,783 228 6.57 25,614 193 3.00
Portfolio loans
receivable(2)(3) 2,902,033 64,670 8.84 2,789,815 60,610 8.62 2,592,960 58,409 8.96
---------- -------- ----- ---------- -------- ----- ---------- -------- -----
Total interest
earning assets 3,360,512 68,634 8.10 3,246,653 64,891 7.93 3,003,081 61,707 8.17
-------- -------- --------
Noninterest earning assets 138,028 131,643 117,026
---------- ---------- ----------
Total assets $ 3,498,540 $ 3,378,296 $ 3,120,107
========== ========== ==========
Liabilities and
Stockholders' Equity
Interest-bearing
liabilities:
Interest-bearing
demand accounts $ 269,342 366 0.54 $ 282,873 388 0.54 $ 257,446 424 0.66
Savings 12,033 11 0.36 12,887 15 0.47 13,497 20 0.59
Money market
accounts 1,061,293 9,124 3.41 985,106 8,650 3.48 763,526 7,131 3.72
Time deposits 812,186 8,304 4.06 815,302 3,679 1.79 847,618 8,810 4.13
Borrowed funds 46,497 550 4.69 34,062 139 1.62 97,116 995 4.08
---------- -------- ----- ---------- -------- ----- ---------- -------- -----
Total
interest-bearing
liabilities 2,201,351 18,355 3.31 2,130,230 12,871 2.40 1,979,203 17,380 3.49
-------- -------- --------
Noninterest-bearing
liabilities:
Noninterest-bearing
liabilities 67,509 43,245 58,460
Noninterest-bearing
deposits 837,930 820,899 729,907
Stockholders' equity 391,750 383,922 352,537
---------- ---------- ----------
Total liabilities
and stockholders'
equity $ 3,498,540 $ 3,378,296 $ 3,120,107
========== ========== ==========
Net interest spread 4.79% 5.53% 4.68%
===== ===== =====
Net interest income $ 50,279 $ 52,020 $ 44,327
======== ======== ========
Net interest margin(4) 5.94% 6.36% 5.87%
===== ===== =====
_______________
(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, collectively, Commercial Bank Loan Yield was 6.95%, 6.74% and 6.98%, respectively.
(4) For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, collectively, Commercial Bank Net Interest Margin was 4.18%, 4.64% and 3.99%, respectively.
Year Ended December 31,
--------------------------------------------------------------------
2025 2024
---------------------------- ----------------------------
Average Interest Average Average Interest Average
Outstanding Income/ Yield/ Outstanding Income/ Yield/
Balance Expense Rate Balance Expense Rate(1)
----------- --------- --------- ----------- --------- ---------
(in thousands)
Assets
Interest earning assets:
Interest-bearing
deposits $ 194,080 $ 8,211 4.23% $ 98,319 $ 4,569 4.65%
Federal funds sold 59 2 3.39 57 3 5.26
Investment
securities
available-for-sale 236,346 6,976 2.95 228,909 5,441 2.38
Restricted
investments 6,648 410 6.17 5,563 373 6.71
Loans held for sale 12,576 892 7.09 12,121 569 4.69
Portfolio loans
receivable(1)(2) 2,765,758 244,380 8.84 2,142,638 202,346 9.44
---------- -------- ----- ---------- -------- -----
Total interest
earning assets 3,215,467 260,871 8.11 2,487,607 213,301 8.57
-------- --------
Noninterest earning assets 133,207 66,442
---------- ----------
Total assets $ 3,348,674 $ 2,554,049
========== ==========
Liabilities and
Stockholders' Equity
Interest-bearing
liabilities:
Interest-bearing
demand accounts $ 269,224 $ 1,513 0.56% $ 221,437 $ 1,003 0.45%
Savings 12,789 60 0.47 6,732 27 0.40
Money market
accounts 960,882 33,195 3.45 704,002 28,741 4.08
Time deposits 825,847 29,003 3.51 561,369 26,399 4.70
Borrowed funds 37,196 1,108 2.98 63,686 2,385 3.74
---------- -------- ----- ---------- -------- -----
Total
interest-bearing
liabilities 2,105,938 64,879 3.08 1,557,226 58,555 3.76
-------- --------
Noninterest-bearing
liabilities:
Noninterest-bearing
liabilities 53,197 34,043
Noninterest-bearing
deposits 811,798 675,360
Stockholders' equity 377,741 287,420
---------- ----------
Total liabilities
and stockholders'
equity $ 3,348,674 $ 2,554,049
========== ==========
Net interest spread 5.03% 4.81%
===== =====
Net interest income $ 195,992 $ 154,746
======== ========
Net interest margin(3) 6.10% 6.22%
===== =====
(1) Includes nonaccrual loans.
(2) For the years ended December 31, 2025 and 2024, collectively. Commercial Bank Loan Yield was 6.99% and 7.03%, respectively.
(3) For the years ended December 31, 2025 and 2024, collectively. Commercial Bank Net Interest Margin was 4.38% and 3.93%, 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(TM) (the Company's credit card division), Windsor Advantage(TM) 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 December 31, 2025, September 30, 2025, and December 31, 2024.
Segments
For the three months ended December 31, 2025
---------------------------------------------------------------------------
Commercial Windsor
(in thousands) Bank OpenSky(TM) Advantage(TM) CBHL Consolidated
----------- ------------- ----------------- -------- --------------
Interest income $ 51,994 $ 16,377 $ -- $ 263 $ 68,634
Interest expense 18,230 -- -- 125 18,355
--------- --------- --- -------- ------ ---------
Net interest income 33,764 16,377 -- 138 50,279
Provision for credit losses 2,715 1,273 -- -- 3,988
Release of credit losses on
unfunded commitments (29) -- -- -- (29)
--------- --------- --- -------- ------ ---------
Net interest income after
provision 31,078 15,104 -- 138 46,320
Noninterest income
Service charges on
deposits 371 -- -- -- 371
Credit card fees -- 4,837 -- -- 4,837
Mortgage banking revenue 433 -- -- 1,527 1,960
Government lending
revenue -- -- -- -- --
Government loan servicing
revenue(1) (952) -- 4,988 -- 4,036
Loan servicing rights
(government guaranteed) 295 -- -- -- 295
Other income 698 10 -- 257 965
--------- --------- --- -------- ------ ---------
Total noninterest income 845 4,847 4,988 1,784 12,464
--------- --------- --- -------- ------ ---------
Noninterest expenses
Salaries and employee
benefits 11,071 3,038 2,425 1,380 17,914
Occupancy and equipment 1,773 688 40 137 2,638
Professional fees 3,047 947 53 247 4,294
Data processing 1,026 6,687 (165) (46) 7,502
Advertising 608 634 (3) 159 1,398
Loan processing 101 475 163 413 1,152
Foreclosed real estate
expenses, net -- -- -- -- --
Merger-related expenses -- -- -- -- --
Operational and other
card fraud related
losses 13 737 -- -- 750
Regulatory assessment
expenses 230 388 143 97 858
Other operating 639 966 763 229 2,597
--------- --------- --- -------- ------ ---------
Total noninterest
expenses 18,508 14,560 3,419 2,616 39,103
--------- --------- --- -------- ------ ---------
Net income (loss) before
taxes $ 13,415 $ 5,391 $ 1,569 $ (694) $ 19,681
========= ========= === ======== ====== =========
Total assets $3,407,326 $ 140,914 $ 25,993 $31,974 $ 3,606,207
========= ========= === ======== ====== =========
________________________
(1) Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended December 31, 2025.
Segments
For the three months ended September 30, 2025
---------------------------------------------------------------------------
Commercial Windsor
(in thousands) Bank OpenSky(TM) Advantage(TM) CBHL Consolidated
----------- ------------- ----------------- -------- --------------
Interest income(2) $ 49,035 $ 15,628 $ -- $ 228 $ 64,891
Interest expense(3) 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) 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 and other
card fraud related
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(TM), for the three months ended September 30, 2025
(2) Interest income of $52.0 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.
(3) Interest expense of $12.8 million for the Commercial Bank includes the $4.6 million Call of Brokered Time Deposits.
Segments
For the three months ended December 31, 2024
------------------------------------------------------------------------
Commercial Windsor
(in thousands) Bank OpenSky(TM) Advantage(TM) CBHL Consolidated
----------- ------------- --------------- -------- --------------
Interest income $ 46,061 $ 15,454 $ -- $ 192 $ 61,707
Interest expense 17,249 -- -- 131 17,380
--------- --------- ---- --------- ------ ---------
Net interest income 28,812 15,454 -- 61 44,327
Provision for credit losses 6,651 1,177 -- -- 7,828
Provision for credit losses
on unfunded commitments 122 -- -- -- 122
--------- --------- ---- --------- ------ ---------
Net interest income
after provision 22,039 14,277 -- 61 36,377
Noninterest income
Service charges on
deposits 241 -- -- -- 241
Credit card fees -- 3,733 -- -- 3,733
Mortgage banking revenue 284 -- -- 1,537 1,821
Government lending
revenue 2,301 -- -- -- 2,301
Government loan
servicing revenue(1) (543) -- 4,536 -- 3,993
Loan servicing rights
(government guaranteed 1,013 -- -- -- 1,013
Non-recurring equity and
debt investment
write-down (2,620) -- -- -- (2,620)
Other income 1,252 10 30 139 1,431
--------- --------- ---- --------- ------ ---------
Total noninterest
income 1,928 3,743 4,566 1,676 11,913
--------- --------- ---- --------- ------ ---------
Noninterest expense
Salaries and employee
benefits 10,383 2,985 1,662 1,483 16,513
Occupancy and equipment 1,655 617 537 167 2,976
Professional fees 914 845 123 268 2,150
Data processing 639 6,495 32 44 7,210
Advertising 767 79 106 80 1,032
Loan processing 754 14 3 198 969
Foreclosed real estate
expenses, net -- -- -- -- --
Merger-related expenses 2,615 -- -- -- 2,615
Operational and other
card fraud related
losses 24 969 -- -- 993
Regulatory assessment
expenses 525 21 1 6 553
Other operating 1,596 570 206 131 2,503
--------- --------- ---- --------- ------ ---------
Total noninterest
expenses 19,872 12,595 2,670 2,377 37,514
--------- --------- ---- --------- ------ ---------
Net income (loss) before
taxes $ 4,095 $ 5,425 $ 1,896 $ (640) $ 10,776
========= ========= ==== ========= ====== =========
Total assets $3,033,792 $ 125,913 $ 25,515 $21,691 $ 3,206,911
========= ========= ==== ========= ====== =========
________________________
(1) Gross government loan servicing revenue totaled $4.5 million, including $0.5 million of servicing fees earned from the Commercial Bank by WindsorTM, for the three months ended December 31, 2024.
Segments
For the year ended December 31, 2025
----------------------------------------------------------------------------
Commercial Windsor
(in thousands) Bank OpenSky(TM) Advantage(TM) CBHL Consolidated
----------- ------------- --------------- -------- --------------
Interest income(3) $ 199,122 $ 60,943 $ -- $ 806 $ 260,871
Interest expense(4) 64,503 -- -- 376 64,879
--------- --------- ---- --------- ------ ----------
Net interest income 134,619 60,943 -- 430 195,992
Provision for credit losses 6,172 8,793 -- -- 14,965
Release of credit losses on
unfunded commitments 188 -- -- -- 188
--------- --------- ---- --------- ------ ----------
Net interest income after
provision 128,259 52,150 -- 430 180,839
Noninterest income
Service charges on deposits 1,316 -- -- -- 1,316
Credit card fees -- 17,366 -- -- 17,366
Mortgage banking revenue 1,476 -- -- 5,996 7,472
Government lending revenue 4,222 -- -- -- 4,222
Government loan servicing
revenue(1) (4,116) -- 19,629 -- 15,513
Loan servicing rights
(government guaranteed)(2) 545 -- -- -- 545
Other income 1,913 13 -- 827 2,753
--------- --------- ---- --------- ------ ----------
Total noninterest income 5,356 17,379 19,629 6,823 49,187
Noninterest expenses
Salaries and employee
benefits 43,346 13,057 9,795 5,971 72,169
Occupancy and equipment 6,888 2,381 1,535 588 11,392
Professional fees 6,849 2,661 442 1,007 10,959
Data processing 2,270 27,320 118 80 29,788
Advertising 2,815 2,811 212 424 6,262
Loan processing 1,968 533 291 1,196 3,988
Foreclosed real estate
expenses, net 1 -- -- -- 1
Merger-related expenses 3,361 -- -- -- 3,361
Operational and other card
fraud related losses 144 3,365 -- -- 3,509
Regulatory assessment
expenses 2,743 388 143 97 3,371
Other operating 5,357 2,407 1,985 533 10,282
--------- --------- ---- --------- ------ ----------
Total noninterest expenses 75,742 54,923 14,521 9,896 155,082
--------- --------- ---- --------- ------ ----------
Net income (loss) before
taxes $ 57,873 $ 14,606 $ 5,108 $(2,643) $ 74,944
========= ========= ==== ========= ====== ==========
Total assets $3,407,326 $ 140,914 $ 25,993 $31,974 $ 3,606,207
========= ========= ==== ========= ====== ==========
________________________
(1) Gross government loan servicing revenue totaled $19.6 million, including $4.1 million of servicing fees earned from the Commercial Bank by WindsorTM, for the year ended December 31, 2025.
(2) Loan servicing rights of $0.5 million for the Commercial Bank includes a $1.7 million fair value adjustment associated with the loan servicing portfolio. (3)Interest income of $199.1 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.
(4) Interest expense of $64.5 million for the Commercial Bank includes the $4.6 million Call of Brokered Time Deposits.
Segments
For the year ended December 31, 2024
-------------------------------------------------------------------------
Commercial Windsor
(in thousands) Bank OpenSky(TM) Advantage(TM) CBHL Consolidated
----------- ------------- --------------- -------- --------------
Interest income $ 150,948 $ 61,785 $ -- $ 568 $ 213,301
Interest expense 58,192 -- -- 363 58,555
--------- --------- ---- --------- ------ ---------
Net interest income 92,756 61,785 -- 205 154,746
Provision for credit losses 10,391 7,329 -- -- 17,720
Provision for credit losses
on unfunded commitments 385 -- -- -- 385
--------- --------- ---- --------- ------ ---------
Net interest income after
provision 81,980 54,456 -- 205 136,641
Noninterest income
Service charges on
deposits 883 -- -- -- 883
Credit card fees -- 15,999 -- -- 15,999
Mortgage banking revenue 1,072 -- -- 6,074 7,146
Government lending
revenue 2,301 -- -- -- 2,301
Government loan servicing
revenue(1) (543) -- 4,536 -- 3,993
Loan servicing rights
(government guaranteed) 1,013 -- -- -- 1,013
Non-recurring equity and
debt investment
write-down (2,620) -- -- -- (2,620)
Other income 1,932 123 30 610 2,695
--------- --------- ---- --------- ------ ---------
Total noninterest income 4,038 16,122 4,566 6,684 31,410
Noninterest expenses
Salaries and employee
benefits 36,229 12,156 1,662 5,990 56,037
Occupancy and equipment 5,085 2,035 537 587 8,244
Professional fees 3,575 3,183 123 965 7,846
Data processing 1,496 25,991 32 170 27,689
Advertising 1,982 3,944 106 327 6,359
Loan processing 1,517 59 3 852 2,431
Foreclosed real estate
expenses, net 2 -- -- -- 2
Merger-related expenses 3,930 -- -- -- 3,930
Operational and other
card fraud related
losses 37 3,677 -- -- 3,714
Regulatory assessment
expenses 1,909 21 1 6 1,937
Other operating 5,165 2,179 206 480 8,030
--------- --------- ---- --------- ------ ---------
Total noninterest
expenses 60,927 53,245 2,670 9,377 126,219
--------- --------- ---- --------- ------ ---------
Net income (loss) before
taxes $ 25,091 $ 17,333 $ 1,896 $(2,488) $ 41,832
========= ========= ==== ========= ====== =========
Total assets $3,033,792 $ 125,913 $ 25,515 $21,691 $ 3,206,911
========= ========= ==== ========= ====== =========
________________________
(1) Gross government loan servicing revenue totaled $4.5 million, including $0.5 million of servicing fees earned from the Commercial Bank by WindsorTM, for the year ended December 31, 2024.
HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited
--------------------------------------------------------------------------------------------------------
Quarter Ended
(in thousands, except December 31, September 30, June 30, March 31, December 31,
per share data) 2025 2025 2025 2025 2024
-------------- --------------- -------------- -------------- --------------
Earnings:
----------------------
Net income $ 15,037 $ 15,065 $ 13,136 $ 13,932 $ 7,533
Earnings per common
share, diluted 0.91 0.89 0.78 0.82 0.45
Net interest margin 5.94% 6.36% 6.04% 6.05% 5.87%
Commercial Bank net
interest margin(2) 4.18% 4.64% 4.38% 4.32% 3.99%
Return on average
assets(1) 1.71% 1.77% 1.60% 1.75% 0.96%
Return on average
equity(1) 15.23% 15.57% 14.17% 15.56% 8.50%
Efficiency ratio 62.32% 60.79% 65.14% 64.94% 66.70%
Balance Sheet:
----------------------
Total portfolio loans
receivable, net
deferred fees $2,959,457 $2,821,983 $2,739,808 $2,678,406 $2,630,163
Total deposits 3,092,979 2,912,053 2,940,738 2,891,333 2,761,939
Total assets 3,606,207 3,389,442 3,388,662 3,349,805 3,206,911
Total stockholders'
equity 401,978 394,770 380,035 369,577 355,139
Total average portfolio
loans receivable, net
deferred fees 2,902,033 2,789,815 2,733,865 2,634,110 2,592,960
Total average deposits 2,992,784 2,917,067 2,841,153 2,768,284 2,611,994
Portfolio
loans-to-deposit ratio
(period-end balances) 95.68% 96.91% 93.17% 92.64% 95.23%
Portfolio
loans-to-deposit ratio
(average balances) 96.97% 95.64% 96.22% 95.15% 99.27%
Asset Quality Ratios:
----------------------
Nonperforming assets to
total assets 1.62% 1.54% 1.07% 1.28% 0.94%
Nonperforming loans to
total loans 1.84% 1.85% 1.32% 1.60% 1.15%
Net charge-offs to
average portfolio
loans (1) 0.32% 0.35% 0.75% 0.38% 0.37%
Allowance for credit
losses to total loans 1.85% 1.88% 1.73% 1.81% 1.85%
Allowance for credit
losses to
non-performing loans 100.44% 101.53% 131.19% 112.86% 160.88%
Bank Capital Ratios:
----------------------
Total risk based
capital ratio 12.60% 12.95% 13.13% 12.93% 12.79%
Tier-1 risk based
capital ratio 11.34% 11.69% 11.87% 11.67% 11.54%
Leverage ratio 9.24% 9.34% 9.39% 9.27% 9.17%
Common Equity Tier-1
capital ratio 11.34% 11.69% 11.87% 11.67% 11.54%
Tangible common equity 8.75% 9.06% 8.84% 8.66% 9.31%
Holding Company
Capital Ratios:
----------------------
Total risk based
capital ratio 14.31% 15.25% 15.30% 14.97% 15.48%
Tier-1 risk based
capital ratio 13.05% 13.62% 13.66% 13.32% 13.83%
Leverage ratio 10.72% 10.98% 10.90% 10.68% 11.07%
Common Equity Tier-1
capital ratio 12.98% 13.54% 13.58% 13.24% 13.74%
Tangible common equity 10.08% 10.60% 10.22% 9.94% 11.07%
_______________
(1) Annualized.
(2) Refer to Appendix for reconciliation of non-GAAP measures.
HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (Continued)
------------------------------------------------------------------------------------------------------
Quarter Ended
(in thousands,
except per share December 31, September 30, June 30, March 31, December 31,
data) 2025 2025 2025 2025 2024
-------------- --------------- -------------- -------------- --------------
Composition of
Loans:
--------------------
Commercial real
estate, non
owner-occupied $ 533,141 $ 509,878 $ 495,341 $ 484,399 $ 471,329
Commercial real
estate,
owner-occupied 418,701 442,827 436,421 420,643 440,026
Residential real
estate 765,808 740,060 710,730 693,597 688,552
Construction real
estate 359,566 344,290 343,189 343,280 321,252
Commercial and
industrial 698,289 619,148 593,279 594,331 554,550
Lender finance 41,421 31,883 32,494 23,165 28,574
Business equity lines
of credit 3,818 2,931 2,853 3,468 3,090
Credit card, net of
reserve(3) 142,397 136,483 131,029 118,709 127,766
Other consumer loans 1,930 2,010 2,727 2,200 2,089
--------- --------- --- --------- --------- ---------
Portfolio loans
receivable $2,965,071 $2,829,510 $2,748,063 $2,683,792 $2,637,228
Deferred origination
fees, net (5,614) (7,527) (8,255) (5,386) (7,065)
--------- --------- --------- --------- ---------
Portfolio loans
receivable, net $2,959,457 $2,821,983 $2,739,808 $2,678,406 $2,630,163
--------- --------- --- --------- --------- ---------
Composition of
Deposits:
--------------------
Noninterest-bearing $ 852,520 $ 857,543 $ 836,979 $ 812,224 $ 810,928
Interest-bearing
demand 257,233 275,767 319,431 296,455 238,881
Savings 11,679 12,835 12,879 12,819 13,488
Money markets 1,105,183 989,159 960,237 912,418 816,708
Customer time
deposits 489,687 539,207 541,079 549,630 548,901
Brokered time
deposits 376,677 237,542 270,133 307,787 333,033
--------- --------- --- --------- --------- ---------
Total deposits $3,092,979 $2,912,053 $2,940,738 $2,891,333 $2,761,939
Capital Bank Home
Loan Metrics:
--------------------
Origination of loans
held for sale $ 107,283 $ 80,651 $ 80,334 $ 65,815 $ 89,998
Mortgage loans sold 82,998 66,409 59,663 54,144 77,399
Gain on sale of loans 2,145 1,698 1,597 1,664 1,897
Purchase volume as a
% of originations 72.77% 92.32% 91.61% 90.73% 90.42%
Gain on sale as a %
of loans sold(4) 2.58% 2.56% 2.68% 3.07% 2.45%
Mortgage commissions $ 899 $ 656 $ 501 $ 545 $ 620
OpenSky(TM)
Portfolio Metrics:
--------------------
Open customer
accounts 585,492 587,641 585,372 563,718 552,566
Secured credit card
loans, gross $ 83,065 $ 84,737 $ 86,400 $ 81,252 $ 87,226
Unsecured credit card
loans, gross 61,378 53,633 46,352 38,987 42,430
Noninterest secured
credit card
deposits 163,184 166,874 168,936 168,796 166,355
_______________
(3) Credit card loans are presented net of reserve for interest and fees.
(4) Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.
Appendix
Reconciliation of Non-GAAP Measures
The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company's industry. Investors should recognize that the Company's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.
Core Earnings
Metrics Quarter Ended
(in thousands,
except per December 31, September 30, December 31,
share data) 2025 2025 June 30, 2025 March 31, 2025 2024
-------------- --------------- -------------- -------------- --------------
Net Income $ 15,037 $ 15,065 $ 13,136 $ 13,932 $ 7,533
Deduct: Income
from the Call
of Brokered
Time Deposits,
Net of Tax -- (3,489) -- -- --
Add:
Merger-Related
Expenses, Net
of Tax -- 575 1,070 964 2,151
Add:
Non-Recurring
Equity and
Debt
Investment
Write-Down -- -- -- -- 2,620
Add: IFH ACL
Provision, Net
of Tax -- -- -- -- 3,169
--------- --------- --- --------- --------- ---------
Core Net Income $ 15,037 $ 12,151 $ 14,206 $ 14,896 $ 15,473
========= ========= === ========= ========= =========
Weighted
Average Common
Shares -
Diluted 16,493 16,844 16,802 16,925 16,729
Earnings per
Share -
Diluted $ 0.91 $ 0.89 $ 0.78 $ 0.82 $ 0.45
Core Earnings
per Share -
Diluted $ 0.91 $ 0.72 $ 0.85 $ 0.88 $ 0.92
Average Assets $3,498,540 $3,378,296 $3,292,533 $3,221,964 $3,120,107
Return on
Average
Assets(1) 1.71% 1.77% 1.60% 1.75% 0.96%
Core Return on
Average
Assets(1) 1.71% 1.43% 1.73% 1.87% 1.97%
Average Equity $ 391,750 $ 383,922 $ 371,795 $ 363,115 $ 352,537
Return on
Average
Equity(1) 15.23% 15.57% 14.17% 15.56% 8.50%
Core Return on
Average
Equity(1) 15.23% 12.56% 15.33% 16.64% 17.46%
Net Interest
Income $ 50,279 $ 52,020 $ 47,646 $ 46,047 $ 44,327
Noninterest
Income 12,464 11,068 13,106 12,549 11,913
--------- --------- --- --------- --------- ---------
Total Revenue $ 62,743 $ 63,088 $ 60,752 $ 58,596 $ 56,240
Noninterest
Expense 39,103 38,354 39,572 38,053 37,514
--------- --------- --- --------- --------- ---------
Efficiency
Ratio(2) 62.3% 60.8% 65.1% 64.9% 66.7%
========= ========= ========= ========= =========
Net Interest
Income $ 50,279 $ 52,020 $ 47,646 $ 46,047 $ 44,327
Less: Brokered
Time Deposit
Call -- 4,618 -- -- --
--------- --------- --- --------- --------- ---------
Core Net
Interest
Income (a) $ 50,279 $ 47,402 $ 47,646 $ 46,047 $ 44,327
Noninterest
Income 12,464 11,068 13,106 12,549 11,913
Add:
Non-Recurring
Equity and
Debt
Investment
Write-Down -- -- -- -- 2,620
--------- --------- --- --------- --------- ---------
Core Fee
Revenue (b) $ 12,464 $ 11,068 $ 13,106 $ 12,549 $ 14,533
--------- --------- --- --------- --------- ---------
Core Revenue
(a) + (b) $ 62,743 $ 58,470 $ 60,752 $ 58,596 $ 58,860
Noninterest
Expense $ 39,103 $ 38,354 $ 39,572 $ 38,053 $ 37,514
Less:
Merger-Related
Expenses -- 697 1,398 1,266 2,615
--------- --------- --- --------- --------- ---------
Core
Noninterest
Expense $ 39,103 $ 37,657 $ 38,174 $ 36,787 $ 34,899
--------- --------- --- --------- --------- ---------
Core Efficiency
Ratio(2) 62.3% 64.4% 62.8% 62.8% 59.3%
========= ========= ========= ========= =========
_______________
(1) Annualized.
(2) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).
Core Earnings Metrics Year Ended
--------------------------------------------
(in thousands, except per
share data) December 31, 2025 December 31, 2024
--------------------- ---------------------
Net Income $ 57,170 $ 30,972
Deduct: Income from the Call
of Brokered Time Deposits,
Net of Tax (3,489) --
Add: Merger-Related Expenses,
Net of Tax 2,609 3,308
Add: Non-Recurring Equity and
Debt Investment Write-Down -- 2,620
Add: IFH ACL Provision, Net of
Tax -- 3,169
------------- -------------
Core Net Income $ 56,290 $ 40,069
============= =============
Weighted Average Common Shares
- Diluted 16,768 14,640
Earnings per Share - Diluted $ 3.41 $ 2.12
Core Earnings per Share -
Diluted $ 3.36 $ 2.74
Average Assets $ 3,348,674 $ 2,554,049
Return on Average Assets 1.71% 1.21%
Core Return on Average Assets 1.68% 1.57%
Average Equity $ 377,741 $ 287,420
Return on Average Equity 15.13% 10.78%
Core Return on Average Equity 14.90% 13.94%
Net Interest Income $ 195,992 $ 154,746
Noninterest Income 49,187 31,410
------------- -------------
Total Revenue $ 245,179 $ 186,156
Noninterest Expense 155,082 126,219
------------- -------------
Efficiency Ratio(1) 63.3% 67.8%
============= =============
Net Interest Income $ 195,992 $ 154,746
Less: Brokered Time Deposit
Call 4,618 --
------------- -------------
Core Net Interest Income (a) $ 191,374 $ 154,746
Noninterest Income 49,187 31,410
Add: Non-Recurring Equity and
Debt Investment Write-Down -- 2,620
------------- -------------
Core Fee Revenue (b) $ 49,187 $ 34,030
------------- -------------
Core Revenue (a) + (b) $ 240,561 $ 188,776
Noninterest Expense $ 155,082 $ 126,219
Less: Merger-Related Expenses 3,361 3,930
------------- -------------
Core Noninterest Expense $ 151,721 $ 122,289
------------- -------------
Core Efficiency Ratio(1) 63.1% 64.8%
============= =============
_______________
(1) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).
Commercial Bank
Net Interest
Margin Quarter Ended
December 31, September 30, December 31,
(in thousands) 2025 2025 June 30, 2025 March 31, 2025 2024
-------------- --------------- -------------- -------------- --------------
Commercial Bank
Net Interest
Income $ 33,764 $ 36,267 $ 33,073 $ 31,515 $ 28,812
Average Interest
Earning Assets 3,360,576 3,246,653 3,163,421 3,087,943 3,003,081
Less: Average
Non-Commercial
Bank Interest
Earning
Assets 152,715 144,558 132,196 128,278 133,401
--------- --------- --- --------- --------- ---------
Average
Commercial Bank
Interest Earning
Assets $3,207,861 $3,102,095 $3,031,225 $2,959,665 $2,869,680
Commercial Bank
Net Interest
Margin 4.18% 4.64% 4.38% 4.32% 3.99%
Commercial Bank Net Interest
Margin Year Ended
--------------------------------------------
(in thousands) December 31, 2025 December 31, 2024
--------------------- ---------------------
Commercial Bank Net Interest
Income $ 134,619 $ 92,756
Average Interest Earning
Assets 3,215,483 2,487,607
Less: Average Non-Commercial
Bank Interest Earning
Assets 139,344 124,863
------------- -------------
Average Commercial Bank
Interest Earning Assets $ 3,076,139 $ 2,362,744
Commercial Bank Net Interest
Margin 4.38% 3.93%
Commercial Bank
Portfolio Loans
Receivable
Yield Quarter Ended
December 31, September 30, December 31,
(in thousands) 2025 2025 June 30, 2025 March 31, 2025 2024
-------------- --------------- -------------- -------------- --------------
Portfolio Loans
Receivable
Interest
Income $ 64,670 $ 60,610 $ 60,647 $ 58,453 $ 58,409
Less: Credit
Card Loan
Income 16,197 15,387 14,116 14,148 15,022
--------- --------- --- --------- --------- ---------
Commercial Bank
Portfolio
Loans
Receivable
Interest
Income $ 48,473 $ 45,223 $ 46,531 $ 44,305 $ 43,387
Average
Portfolio
Loans
Receivable 2,902,033 2,789,815 2,733,865 2,634,110 2,592,960
Less: Average
Credit Card
Loans 133,858 129,100 121,414 118,723 120,993
--------- --------- --- --------- --------- ---------
Total
Commercial
Bank Average
Portfolio
Loans
Receivable $2,768,175 $2,660,715 $2,612,451 $2,515,387 $2,471,967
Commercial Bank
Portfolio
Loans
Receivable
Yield 6.95% 6.74% 7.14% 7.14% 6.98%
Commercial Bank Portfolio
Loans Receivable Yield Year Ended
--------------------------------------------
(in thousands) December 31, 2025 December 31, 2024
--------------------- ---------------------
Portfolio Loans Receivable
Interest Income $ 244,380 $ 202,346
Less: Credit Card Loan
Income 59,848 59,821
------------- -------------
Commercial Bank Portfolio
Loans Receivable Interest
Income $ 184,532 $ 142,525
Average Portfolio Loans
Receivable 2,765,758 2,142,638
Less: Average Credit Card
Loans 125,824 115,581
------------- -------------
Total Commercial Bank Average
Portfolio Loans Receivable $ 2,639,934 $ 2,027,057
Commercial Bank Portfolio
Loans Receivable Yield 6.99% 7.03%
Pre-tax,
Pre-Provision
Net Revenue
("PPNR") Quarter Ended
June March December
December September 30, 31, 31,
(in thousands) 31, 2025 30, 2025 2025 2025 2024
----------- ---------- ------- ------- --------
Net Income $15,037 $ 15,065 $13,136 $13,932 $ 7,533
Add: Income
Tax Expense 4,644 4,802 3,963 4,365 3,243
Add:
Provision
for Credit
Losses 3,988 4,650 4,081 2,246 7,828
Add: (Release
of)
Provision
for Credit
Losses on
Unfunded
Commitments (29) 217 -- -- 122
------ --------- ------ ------ -------
Pre-tax,
Pre-Provision
Net Revenue
("PPNR") $23,640 $ 24,734 $21,180 $20,543 $ 18,726
Pre-tax, Pre-Provision Net Revenue
("PPNR") Year Ended
----------------------------------------
(in thousands) December 31, 2025 December 31, 2024
------------------- -------------------
Net Income $ 57,170 $ 30,972
Add: Income Tax Expense 17,774 10,860
Add: Provision for Credit Losses 14,965 17,720
Add: (Release of) Provision for
Credit Losses on Unfunded
Commitments 188 385
--- -------------- --- --------------
Pre-tax, Pre-Provision Net Revenue
("PPNR") $ 90,097 $ 59,937
Core PPNR Quarter Ended
June March December
December September 30, 31, 31,
(in thousands) 31, 2025 30, 2025 2025 2025 2024
----------- ----------- ------- ------- --------
Net Income $15,037 $15,065 $13,136 $13,932 $ 7,533
Add: Income Tax
Expense 4,644 4,802 3,963 4,365 3,243
Add: Provision
for Credit
Losses 3,988 4,650 4,081 2,246 7,828
Add: (Release
of) Provision
for Credit
Losses on
Unfunded
Commitments (29) 217 -- -- 122
Deduct: Income
from the Call
of Brokered
Time Deposits -- (4,618) -- -- --
Add:
Merger-Related
Expenses -- 697 1,398 1,266 2,615
Add:
Non-Recurring
Equity and
Debt
Investment
Write-Down -- -- -- -- 2,620
------ ------ ------ ------ -------
Core PPNR $23,640 $20,813 $22,578 $21,809 $ 23,961
Core PPNR Year Ended
(in thousands) December 31, 2025 December 31, 2024
--------------------- -------------------
Net Income $ 57,170 $ 30,972
Add: Income Tax Expense 17,774 10,860
Add: Provision for Credit
Losses 14,965 17,720
Add: (Release of) Provision
for Credit Losses on Unfunded
Commitments 188 385
Deduct: Income from the Call
of Brokered Time Deposits (4,618) --
Add: Merger-Related Expenses 3,361 3,930
Add: Non-Recurring Equity and
Debt Investment Write-Down -- 2,620
--- ------------ --- --------------
Core PPNR $ 88,840 $ 66,487
Allowance for
Credit Losses
to Total
Portfolio
Loans Quarter Ended
December 31, September 30, December 31,
(in thousands) 2025 2025 June 30, 2025 March 31, 2025 2024
-------------- --------------- -------------- -------------- --------------
Allowance for
Credit Losses $ 54,660 $ 53,045 $ 47,447 $ 48,454 $ 48,652
Total Portfolio
Loans 2,959,457 2,821,983 2,739,808 2,678,406 2,630,163
Allowance for
Credit Losses
to Total
Portfolio
Loans 1.85% 1.88% 1.73% 1.81% 1.85%
Commercial Bank
Allowance for
Credit Losses
to Commercial
Bank Portfolio
Loans Quarter Ended
-------------------------------------------------------------------------------
December 31, September 30, December 31,
(in thousands) 2025 2025 June 30, 2025 March 31, 2025 2024
-------------- --------------- -------------- -------------- --------------
Allowance for
Credit Losses $ 54,660 $ 53,045 $ 47,447 $ 48,454 $ 48,652
Less: Credit
Card
Allowance
for Credit
Losses 8,232 7,413 6,762 5,905 6,402
Commercial Bank
Allowance for
Credit Losses 46,428 45,632 40,685 42,549 42,250
Total Portfolio
Loans 2,959,457 2,821,983 2,739,808 2,678,406 2,630,163
Less: Gross
Credit Card
Loans 137,905 130,897 126,233 115,991 122,928
Commercial Bank
Portfolio
Loans 2,821,552 2,691,086 2,613,575 2,562,415 2,507,235
Commercial Bank
Allowance for
Credit Losses
to Total
Portfolio
Loans 1.65% 1.70% 1.56% 1.67% 1.70%
Nonperforming
Assets to Total
Assets Quarter Ended
December 31, September 30, December 31,
(in thousands) 2025 2025 June 30, 2025 March 31, 2025 2024
-------------- --------------- -------------- -------------- --------------
Total
Nonperforming
Assets $ 58,276 $ 52,247 $ 36,167 $ 42,934 $ 30,241
Total Assets 3,606,207 3,389,442 3,388,662 3,349,805 3,206,911
Nonperforming
Assets to
Total Assets 1.62% 1.54% 1.07% 1.28% 0.94%
Nonperforming
Loans to Total
Portfolio
Loans Quarter Ended
December 31, September 30, December 31,
(in thousands) 2025 2025 June 30, 2025 March 31, 2025 2024
-------------- --------------- -------------- -------------- --------------
Total
Nonperforming
Loans $ 54,421 $ 52,247 $ 36,167 $ 42,934 $ 30,241
Total Portfolio
Loans 2,959,457 2,821,983 2,739,808 2,678,406 2,630,163
Nonperforming
Loans to Total
Portfolio
Loans 1.84% 1.85% 1.32% 1.60% 1.15%
Net Charge-Offs
to Average
Portfolio
Loans Quarter Ended
December 31, September 30, December 31,
(in thousands) 2025 2025 June 30, 2025 March 31, 2025 2024
-------------- --------------- -------------- -------------- --------------
Total Net
Charge-Offs $ 2,373 $ 2,476 $ 5,088 $ 2,444 $ 2,427
Total Average
Portfolio
Loans 2,902,033 2,789,815 2,733,865 2,634,110 2,592,960
Net Charge-Offs
to Average
Portfolio
Loans,
Annualized 0.32% 0.35% 0.75% 0.38% 0.37%
Tangible Book
Value per
Share Quarter Ended
(in thousands,
except share
and per share December September June 30, March 31, December
data) 31, 2025 30, 2025 2025 2025 31, 2024
----------- ----------- ----------- ----------- -----------
Total
Stockholders'
Equity $ 401,978 $ 394,770 $ 380,035 $ 369,577 $ 355,139
Less:
Preferred
Equity -- -- -- -- --
Less:
Intangible
Assets 40,740 41,002 37,773 39,641 36,943
---------- ---------- ---------- ---------- ----------
Tangible Common
Equity $ 361,238 $ 353,768 $ 342,262 $ 329,936 $ 318,196
Period End
Shares
Outstanding 16,381,088 16,589,241 16,581,990 16,657,168 16,662,626
Tangible Book
Value per
Share $ 22.05 $ 21.33 $ 20.64 $ 19.81 $ 19.10
Return on
Average Tangible
Common Equity Quarter Ended
December 31, September 30, June 30, March 31, December 31,
(in thousands) 2025 2025 2025 2025 2024
------------- ------------- ------------ ------------ -------------
Net Income $ 15,037 $ 15,065 $ 13,136 $ 13,932 $ 7,533
Add:
Intangible
Amortization,
Net of Tax 200 199 200 199 198
------- --- ------- --- ------- ------- ------- ---
Net Tangible
Income $ 15,237 $ 15,264 $ 13,336 $ 14,131 $ 7,731
Average Equity 391,750 383,922 371,795 363,115 352,537
Less: Average
Intangible
Assets 40,884 37,706 39,534 36,896 22,890
------- --- ------- --- ------- ------- ------- ---
Net Average
Tangible Common
Equity $350,866 $346,216 $332,261 $326,219 $329,647
Return on
Average Equity 15.23% 15.57% 14.17% 15.56% 8.50%
Return on
Average
Tangible Common
Equity 17.23% 17.49% 16.10% 17.57% 9.33%
Return on Average Tangible
Common Equity Year Ended
--------------------------------------------
(in thousands) December 31, 2025 December 31, 2024
--------------------- ---------------------
Net Income $ 57,170 $ 30,972
Add: Intangible
Amortization, Net of Tax 798 198
------------ --- ------------ ---
Net Tangible Income $ 57,968 $ 31,170
Average Equity 377,741 287,420
Less: Average Intangible
Assets 38,763 5,754
------------ --- ------------ ---
Net Average Tangible Common
Equity $ 338,978 $ 281,666
Return on Average Equity 15.13% 10.78%
Return on Average Tangible
Common Equity 17.10% 11.07%
Core Return on
Average Tangible
Common Equity Quarter Ended
December 31, September 30, June 30, March 31, December 31,
(in thousands) 2025 2025 2025 2025 2024
------------ ------------- ----------- ------------ ------------
Core Net Income $15,037 $12,151 $14,206 $14,896 $15,473
Add:
Intangible
Amortization,
Net of Tax 200 199 200 199 198
------ --- ------ ---- ------ ------ --- ------ ---
Core Net
Tangible
Income $15,237 $12,350 $14,406 $15,095 $15,671
Core Return on
Average
Tangible Common
Equity 17.23% 14.15% 17.39% 18.77% 18.91%
Core Return on Average
Tangible Common Equity Year Ended
--------------------------------------------
(in thousands) December 31, 2025 December 31, 2024
--------------------- ---------------------
Core Net Income $ 56,290 $ 40,069
Add: Intangible
Amortization, Net of Tax 798 198
------------ --- ------------ ---
Core Net Tangible Income $ 57,088 $ 40,267 Core Return on Average Tangible Common Equity 16.84% 14.30%
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 $3.6 billion at December 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: the strength of the United States ("U.S.") economy in general and the strength of the local economies in which we conduct operations; geopolitical concerns, including acts or threats of terrorism and the ongoing war in Ukraine; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; changes in U.S. trade policies, including the implementation of tariffs and other protectionist trade policies; the effects of federal government shutdowns, debt ceiling standoff, or other fiscal policy uncertainty; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them; climate change, and other catastrophic disasters; the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; the effect of the IFH acquisition or any other acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations, including the planned growth of Windsor Advantage(TM) ; and other factors that may affect our future results.
These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.
FINANCIAL CONTACT: Jake Dalaya (301) 637-5118
MEDIA CONTACT: Ed Barry (240) 283-1912
WEB SITE: www.CapitalBankMD.com
(END) Dow Jones Newswires
January 26, 2026 16:05 ET (21:05 GMT)