Author: Ravi Shankar

GRAND CAYMAN, Cayman Islands, Oct. 26, 2026 (GLOBE NEWSWIRE) — Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (the “Company” or “Greenlight Re”), a multiline property and casualty insurer and reinsurer, today announced that it expects to release financial results for the third quarter and nine months ended September 30, 2026, after the market closes on Monday, November 2, 2026.  A live conference call to discuss the financial results will be held on Tuesday, November 3, 2026, at 9:00 a.m. Eastern Time.

Conference Call Details

To participate in the Greenlight Re Third Quarter 2026 Earnings Call, please dial in to the conference call at:

U.S. toll free 1-877-407-9753 
International 1-201-493-6739

The conference call can also be accessed via webcast at:

https://event.webcasts.com/starthere.jsp?ei=1731027&tp_key=691022d3df

A telephone replay will be available following the call through November 8, 2026.  The replay of the call may be accessed by dialing 1-877-660-6853 (U.S. toll free) or 1-201-612-7415 (international), access code 13755439. An audio file of the call will also be available on the Company’s website, www.greenlightre.com.

About Greenlight Capital Re, Ltd.

Greenlight Re (www.greenlightre.com) provides multiline property and casualty insurance and reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland, and its Lloyd’s platform, Greenlight Innovation Syndicate 3456. The Company complements its underwriting activities with a non-traditional investment approach designed to achieve higher rates of return over the long term than reinsurance companies that exclusively employ more traditional investment strategies. The Company’s innovations unit, Greenlight Re Innovations, supports technology innovators in the (re)insurance space by providing investment capital, risk capacity, and access to a broad insurance network.

Investor Relations Contact
Jeremy Hellman
Vice President, The Equity Group Inc.
(212) 836-9626
IR@greenlightre.ky

• Third quarter 2026 reported diluted EPS of $0.99 and adjusted diluted EPS (non-GAAP)¹ of $1.04, as compared to reported and adjusted diluted EPS in the third quarter of 2025 of $1.27 and $1.27, respectively
• Year-to-date 2026 reported diluted EPS of $2.13 and adjusted diluted EPS (non-GAAP)¹ of $2.30, as compared to reported and adjusted diluted EPS in the same period of 2025 of $2.48 and $2.53, respectively
• 2026 standalone adjusted diluted EPS guidance, which excludes the impacts of the Quadvest and pending Cibolo Valley acquisitions and the financings thereof, narrowed to $3.10-$3.16¹ (midpoint remains $3.13). 2026 adjusted diluted EPS guidance, including the impacts of the acquisitions and the financings thereof, initiated at $2.91-$2.97¹
• No change to our 5-year and long-term diluted EPS growth and financial targets
• $325.1 million² of total company-funded infrastructure investments in 2026 through the third quarter out of a revised full year capital plan of approximately $465 million; no change to our total $2.7 billion² capital plan over the 2026-30 period
• Quadvest acquisition closed on October 1, 2026; active Quadvest connections up 14%, or 7,700, in 2026 while connections under contract and pending development have grown 13%, or 11,300 connections, in 2026
• Declared $0.44 cash dividend per share of common stock

SAN JOSE, Calif., Oct. 26, 2026 (GLOBE NEWSWIRE) — H2O America (NASDAQ: HTO) today reported financial results for the third quarter of 2026.

“Our third quarter results have our company in position to deliver on our full year 2026 guidance and we remain committed to our longer-term financial targets,” said chair and chief executive officer, Andrew F. Walters. “The close of the Quadvest acquisition earlier this month marked a significant milestone in our strategy to build a stronger, more diversified utility portfolio. The addition of Quadvest’s active connections plus the anticipated build out of its development pipeline along with our more than $750 million of capital investments that we have planned through 2030 across the combined Texas Water Company enterprise means that Texas will be an increasingly meaningful driver of H2O America’s long-term ability to provide sustainable value for all of our customers, communities and capital partners. Beyond Texas, I am incredibly proud of the progress that our teams have made with respect to the general rate cases in Connecticut and Maine as we pursue recovery of the more than $180 million of combined investments that are not yet recognized in rates as well as the preparations being made by our California team with respect to the upcoming 2028-30 GRC filing. I am so very grateful to lead a team of such dedicated partners as we work to execute on our operational, regulatory and financial growth goals while providing our customers and the communities that we are honored to serve with the high-quality service they deserve.”

Third Quarter 2026 Operating Results

Net income prepared in accordance with GAAP for the third quarter ended September 30, 2026 was $43.0 million, a 5% decrease compared to $45.1 million in the same quarter last year. GAAP diluted EPS for the quarter of $0.99 decreased versus $1.27 in the prior year quarter.

Adjusting for costs associated with merger, acquisition and integration activities and non-utility real estate transactions, H2O America’s adjusted net income (non-GAAP)¹ in the third quarter of 2026 was $45.2 million, a decrease of 1% compared to $45.5 million in the prior year quarter. Adjusted diluted EPS (non-GAAP) for the quarter of $1.04 decreased versus $1.27 in the prior year quarter.

For both GAAP and adjusted results, while our net income was down modestly during the 2026 period, there was a more profound impact on EPS from the higher share count as a result of leveraging our at-the-market (ATM) program throughout 2025 and our common stock issuance in early March of 2026. A full reconciliation of GAAP net income to adjusted net income for the quarter ended September 30, 2026 is included in the tables at the end of this news release.

Operating revenue for the third quarter was $250.2 million, compared to $240.6 million for the same quarter last year, a 4% increase. The increase was driven primarily by rate increases of $16.2 million, nearly half of which relates to higher pass-through water costs, across all of our states but primarily in California and Connecticut. This was partially offset by lower customer consumption of $4.1 million and a decrease of $2.6 million due to regulatory mechanism adjustments.

Operating expenses for the third quarter were $189.7 million, up 8% compared to $175.9 million for the same quarter last year. This change in operating expenses primarily reflects:

• An increase in water production expenses of $5.0 million compared to the same quarter last year primarily attributable to increases in average per unit costs for purchased water and groundwater extraction, partially offset by lower usage.
• An increase in depreciation and amortization expense of $3.7 million associated with utility plant additions placed in service compared to the same quarter last year.
• An increase in merger and acquisition costs of $3.1 million related to the acquisition and integration of Quadvest.
• An increase in all other operating expenses of $2.0 million compared to the same quarter last year primarily attributable to a net increase in general and administrative expenses driven by higher outsourced services costs.

The effective consolidated income tax rates for the third quarter of each of 2026 and 2025 was 11%.

Year-to-Date Operating Results

Net income prepared in accordance with GAAP for the nine months ended September 30, 2026 was $88.6 million, a 3% increase compared to $86.4 million in the same period of 2025. GAAP diluted EPS for the nine months of $2.13 decreased versus $2.48 in the same period last year.

H2O America’s adjusted net income (non-GAAP) for the nine months ended September 30, 2026 was $95.3 million, an increase of 8% compared to $88.4 million in the same period last year. Adjusted diluted EPS (non-GAAP) for the nine months ended September 30, 2026 of $2.30 decreased versus $2.53 in the same period last year.

For both GAAP and adjusted results, while our net income grew during the 2026 period, our EPS declined as the increase in net income was more than offset by the higher share count as a result of leveraging our ATM program throughout 2025 and our common stock issuance in early March of 2026. A full reconciliation of GAAP net income to adjusted net income for the nine months ended September 30, 2026 is included in the tables at the end of this news release.

Operating revenue for the first nine months of 2026 was $644.0 million compared to $606.4 million for the same period last year, a 6% increase. The increase was driven primarily by rate increases, including pass-through water costs, of $42.7 million across all of our states, and $1.1 million from customer growth. This was partially offset by a decrease of $4.3 million due to regulatory mechanism adjustments and lower customer consumption of $2.0 million.

Operating expenses for the first nine months of 2026 were $503.3 million, up 9% compared to $462.0 million for the same period last year. This change in operating expenses primarily reflects:

• An increase in water production expenses of $17.1 million compared to the same period last year primarily attributable to increases in average per unit costs for purchased water and groundwater extraction, increases in water production balancing and memorandum accounts, primarily relating to the Full Cost Balancing Account (“FCBA”), partially offset by decreases in costs as a result of increased availability of surface water.
• An increase in depreciation and amortization expense of $11.1 million associated with utility plant additions placed in service compared to the same period last year.
• An increase in merger and acquisition costs of $7.1 million related to the acquisition and integration of Quadvest and other acquisition-related activities.
• An increase in all other operating expenses of $6.0 million compared to the same period last year primarily attributable to a net increase in general and administrative expenses driven by higher outsourced services.costs.

The effective consolidated income tax rates for the nine months ended September 30, 2026 and 2025 were 12% and 14%, respectively. The lower effective tax rate for the 2026 period was primarily due to higher flow through tax benefits.

Capital Expenditures

Through September 30, 2026, H2O America has invested $325.1 million² in infrastructure. We are adjusting our full year 2026 company-funded capital investment plan to approximately $465 million from $483 million due primarily to increased levels of developer-funded capital at our Texas subsidiary partially offset by the inclusion of planned Quadvest capex following the October 1 close of the acquisition. We continue to plan to invest a total of $2.7 billion² over the 2026-30 period (including the impacts of Quadvest and Cibolo Valley) to build and maintain our water and wastewater operations, subject to regulatory approvals and availability of funding.

Quadvest Acquisition Update

On October 1, 2026, the Company completed the acquisition of substantially all assets of Quadvest. Total cash consideration transferred upon close was $542.7 million. The acquisition marks an important milestone in the Company’s Texas growth strategy by expanding the Company’s regulated and wholesale water and wastewater operations throughout the greater Houston metropolitan area, which enhances scale, supports sustainable customer growth, improves operational effectiveness, and provides a platform for continued geographic expansion within the state.

Quadvest continues to achieve its anticipated customer growth. Total active connections grew 14%, or 7,700 connections, during the first nine months of 2026 after growing 16%, or 7,400 connections, in 2025. This brings Quadvest’s total active connections to 62,200 as of September 30, 2026. In addition, despite converting 7,700 connections to active during the first nine months of 2026, the number of connections under contract and pending development at September 30, 2026 grew by 11,300, to more than 98,000, since December 31, 2025. As previously communicated, we expect the addition of Quadvest to drive Texas from 8% of our consolidated customer base at year-end 2025 to 26% by 2029.

2026 and Long-Term EPS Guidance

The company is narrowing standalone 2026 adjusted diluted EPS guidance to $3.10-$3.16, preserving the $3.13 midpoint of the original $3.08-$3.18¹ range.

Standalone 2026 adjusted diluted EPS guidance excludes the impacts of the Quadvest and pending Cibolo Valley acquisitions and the financings thereof, which will be initially dilutive to EPS prior to our ability to implement new rates reflecting the ratemaking rate bases of the acquired assets resulting from a consolidated Texas general rate case that we expect to file during the first half of 2027.

With the close of the Quadvest acquisition on October 1, we are providing 2026 adjusted diluted EPS guidance of $2.91-$2.97, which incorporates the anticipated impacts of Quadvest and the pending Cibolo Valley acquisitions, including the financings thereof.

We also affirm our non-linear, long-term adjusted diluted EPS CAGR target of 6-8%, anchored off of 2025’s adjusted diluted EPS of $2.99. The long-term 6-8% CAGR target reflects a long-term, sustainable organic growth rate that is supported by elevated capital investment needs for decades to come and does not factor in any potential M&A opportunities beyond Quadvest and Cibolo Valley.

Further, we continue to expect to deliver a non-linear adjusted diluted EPS CAGR at or above the top end of the 6-8% range over the 2026-30 period.

Our guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the Forward-Looking Statements of this release and the Risk Factors section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission.

Rate Activity and Regulatory Highlights

California

On April 10, 2026, San Jose Water Company (SJWC) filed with the California Public Utilities Commission (CPUC) for cost recovery of its planned PFAS compliance program. Specifically, SJWC seeks authorization to design and construct an ion exchange PFAS remediation system at its Williams Station as well as to track the associated capital and operation and maintenance costs for recovery. SJWC estimates the total capital cost of the project to be approximately $176 million. Based on the ALJ’s schedule in the docket, a proposed decision is expected during the second quarter of 2027. If approved, SJWC would adjust rates via annual rate base filing offsets.

On September 29, 2026, Governor Newsom signed Senate Bill 1153, which strengthens water utilities’ wildfire resilience by requiring, beginning January 1, 2028, all urban retail water suppliers serving 3,300 or more persons and serving a high or very high fire hazard severity zone to include incident-specific response procedures for wildfires as part of their disaster preparedness plans. SB 1153 also clarifies public water systems’ wildfire liability limitations.

Connecticut

On May 11, 2026, Connecticut Water Company (CWC) filed a general rate case application with the Public Utilities Regulatory Authority (PURA) requesting a $28.8 million increase in annual revenues for the recovery of the approximately $145 million of infrastructure investments made between its last rate case and the end of 2026 as that investment is not reflected in current rates. The test year is the 12-month period ending December 31, 2025, for new rates to become effective February 2027. Evidentiary hearings concluded earlier this month and a proposed final decision is expected in mid-December.

Maine

On April 13, 2026, Maine Water Company (MWC) filed its first consolidated general rate case with the Maine Public Utilities Commission (MPUC) requesting a $9.5 million increase in annual revenues for the recovery of an anticipated $36 million of infrastructure investments not reflected in current rates using a test year ending December 31, 2025. New rates are expected to go into effect by the second quarter of 2027.

Texas

On August 17, 2026, the Public Utility Commission of Texas (PUCT) issued an order in Texas Water Company’s (TWC) Sale-Transfer-Merger (STM) application that allows for the acquisition of Quadvest, L.P.’s assets. As discussed earlier, the Company completed the acquisition of substantially all assets of Quadvest on October 1, 2026.

On September 16, 2026, the PUCT issued an order in TWC’s STM application that allows for the acquisition of the Cibolo Valley wastewater treatment plant and associated collection systems, which serve more than 1,500 wastewater connections within TWC’s existing water service area, to close. We expect to close the transaction on November 2, 2026.

On October 1, 2026, the PUCT adopted the administrative law judge (ALJ) proposal for decision in our system improvement charge (SIC) application following the completion of the Staff’s number run. The order, which was effective immediately, results in a $0.2 million decrease in annual revenues as compared to the $5.1 million increase sought for completed water and wastewater projects in TWC’s October 6, 2025 application.

Dividend

On October 23, 2026, the Board of Directors of H2O America declared a quarterly cash dividend on common stock of $0.44 per share, payable on December 1, 2026, to shareholders of record at the close of business on November 9, 2026. The 2026 annualized dividend is expected to be $1.76 per share compared with $1.68 per share in 2025.

Dividends have been paid on H2O America’s and its predecessor’s common stock for more than 80 consecutive years, and the annual dividend amount has increased in each of the past 58 years, placing H2O America in an exclusive group of companies.

Financial Results Call Information

Andrew F. Walters, chair and chief executive officer, Ann P. Kelly, chief financial officer and treasurer, and Bruce A. Hauk, president and chief operating officer, will review results for the third quarter of 2026 along with discussing other recent developments in a live webcast presentation at 7 a.m. Pacific Time, or 10 a.m. Eastern Time, on Tuesday, October 27, 2026.

Interested parties may access the webcast and related presentation materials at the website www.h2o-america.com. An archive of the webcast will be available until January 26, 2027.

Non-GAAP Financial Measures

H2O America’s net income and diluted EPS are prepared in accordance with GAAP and represent the earnings as reported to the Securities and Exchange Commission. Adjusted net income and Adjusted diluted EPS are non-GAAP financial measures representing GAAP earnings adjusted to exclude the effects of non-utility real estate transactions and costs associated with mergers, acquisitions and integration activities, if any. These non-GAAP financial measures are provided as additional information for investors to evaluate the performance of H2O America’s business activities excluding these items. Management also believes these non-GAAP financial measures help investors and analysts better understand our actual results compared to our guidance on a non-GAAP basis. H2O America uses adjusted net income and/or adjusted diluted EPS as the primary performance measurements when communicating with analysts and investors regarding our outlook and results. Adjusted net income and Adjusted diluted EPS are also used internally to measure performance. However, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies, even when the same or similarly titled terms are used to identify such measures, limiting their usefulness for comparative purposes. Further, these non-GAAP financial measures should be considered as a supplement to the financial information prepared on a GAAP basis rather than an alternative to the respective GAAP financial measures.

About H2O America

H2O America is among the largest investor-owned pure-play water and wastewater utilities in the United States, providing life-sustaining and high-quality water service to over 1.7 million people. H2O America’s locally led and operated water utilities – San Jose Water Company in California, The Connecticut Water Company in Connecticut, The Maine Water Company in Maine, and SJWTX, Inc. (dba The Texas Water Company) in Texas, including Quadvest’s operations – possess the financial strength, operational expertise, and technological innovation to safeguard the environment, deliver outstanding service to customers, and provide opportunities to employees. H2O America remains focused on investing in its operations, remaining actively engaged in its local communities, and delivering continued sustainable value to its stockholders. For more information about H2O America, please visit www.h2o-america.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the federal securities laws relating to future events and future results of H2O America and its subsidiaries that are based on current expectations, estimates, forecasts, and projections about H2O America and its subsidiaries and the industries in which H2O America and its subsidiaries operate and the beliefs and assumptions of the management of H2O America. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “estimates,” “anticipates,” “intends,” “seeks,” “plans,” “projects,” “may,” “should,” “will,” “approximately,” “strategy,” or the negative of those words or other comparable terminology. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.

The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the risks associated with the Quadvest and Cibolo Valley transactions, including, the risk of the proposed Cibolo Valley transaction not closing on the anticipated timeline, or at all, and the ability to successfully integrate Quadvest’s and Cibolo Valley’s operations and realize the projected financial and other benefits of the proposed transactions; (2) the effect of water, utility, environmental and other governmental policies and regulations, including regulatory actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures, PFAS and other decisions; (3) changes in demand for water and other services; (4) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (5) the effect of the impact of climate change; (6) unexpected costs, charges or expenses; (7) our ability to successfully evaluate investments in new business and growth initiatives; (8) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (9) the risk of work stoppages, strikes and other labor-related actions; (10) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (11) changes in general economic, political, legislative, business and financial market conditions; (12) the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness and general market and economic conditions; and (13) legislative and general market and economic developments. The risks, uncertainties and other factors may cause the actual results, performance or achievements of H2O America to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Results for a quarter are not indicative of results for a full year due to seasonality and other factors. In addition, actual results, performance or achievements are subject to other risks and uncertainties that relate more broadly to our overall business, including those more fully described in our filings with the SEC, including our most recent reports on Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements are not guarantees of future performance, and speak only as of the date made, and H2O America undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

H2O America Contacts:

Ann P. Kelly
Chief Financial Officer and Treasurer
408.385.4752
Ann.Kelly@H2O-America.com

Jonathan Reeder
Senior Director of Treasury and Investor Relations
475.414.1034
Jonathan.Reeder@H2O-America.com

______________________________
1	Adjusted net income and adjusted diluted EPS are non-GAAP financial measures as defined below. See the tables below for reconciliations to the most comparable GAAP measures. Information reconciling adjusted diluted EPS guidance to the comparable GAAP financial measure is unavailable to the company without unreasonable effort, as discussed below.
2	Includes both utility plant additions and capitalizable costs associated with cloud-computing arrangements.

H2O America Condensed Consolidated Statements of Income (Unaudited) (in thousands, except share and per share data)
		Three months ended September 30,							Nine months ended September 30,
			2026			2025			2026			2025
Operating revenue		$	250,229			240,550			643,996			606,404
Operating expense:
Production expenses:
Purchased water			50,360			38,163			116,953			101,537
Power			4,351			8,175			12,474			15,509
Groundwater extraction charges			36,020			39,608			87,848			84,253
Other production expenses			12,575			12,374			37,936			36,857
Total production expenses			103,306			98,320			255,211			238,156
Administrative and general			35,441			31,306			98,874			87,861
Maintenance			8,347			8,016			24,178			22,985
Property taxes and other non-income taxes			10,168			9,516			28,146			27,217
Depreciation and amortization			32,478			28,765			96,918			85,797
Total operating expense			189,740			175,923			503,327			462,016
Operating income			60,489			64,627			140,669			144,388
Other (expense) income:
Interest on long-term debt and other interest expense			(18,161	)		(17,898	)		(54,951	)		(54,292	)
Pension non-service credit			1,975			1,587			5,906			4,810
Other, net			3,943			2,607			9,595			5,384
Income before income taxes			48,246			50,923			101,219			100,290
Provision for income taxes			5,202			5,791			12,573			13,932
Net income			43,044			45,132			88,646			86,358
Comprehensive income		$	43,044			45,132			88,646			86,358
Earnings per share
—Basic		$	1.03			1.27			2.18			2.49
—Diluted		$	0.99			1.27			2.13			2.48
Dividends per share		$	0.44			0.42			1.32			1.26
Weighted average shares outstanding
—Basic			41,959,732			35,543,224			40,594,395			34,706,183
—Diluted			43,478,365			35,643,826			41,644,367			34,797,374

H2O America Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data)
		September 30, 2026				December 31, 2025
Assets
Utility plant:
Land		$	44,563			44,600
Depreciable plant and equipment			4,963,174			4,688,644
Construction work in progress			347,660			269,272
Intangible assets			51,683			51,683
Total utility plant			5,407,080			5,054,199
Less: accumulated depreciation and amortization			1,190,907			1,120,232
Net utility plant			4,216,173			3,933,967
Nonutility properties			2,239			1,683
Less: accumulated depreciation			106			103
Net nonutility properties			2,133			1,580
Current assets:
Cash and cash equivalents			572,957			20,686
Accounts receivable:
Customers, net of allowances for credit losses of $980 and $722 on September 30, 2026 and December 31, 2025, respectively			87,869			62,471
Income tax			—			2,720
Other			7,741			7,710
Accrued unbilled revenue			71,833			68,971
Prepaid expenses			15,977			11,634
Current portion of regulatory assets			14,621			8,315
Other current assets			7,138			8,086
Total current assets			778,136			190,593
Other assets:
Regulatory assets, less current portion			254,732			246,547
Investments			20,373			19,711
Postretirement benefit plans			84,887			80,967
Goodwill			640,311			640,311
Other			55,379			35,890
Total other assets			1,055,682			1,023,426
Total assets		$	6,052,124			5,149,566

H2O America Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data)
		September 30, 2026				December 31, 2025
Capitalization and liabilities
Capitalization:
Stockholders’ equity:
Common stock, $0.001 par value; authorized 70,000,000 shares; 48,318,991 issued and outstanding shares on September 30, 2026 and 36,118,242 on December 31, 2025		$	48			36
Additional paid-in capital			1,582,745			958,188
Retained earnings			616,956			581,080
Accumulated other comprehensive income			1,467			1,467
Total stockholders’ equity			2,201,216			1,540,771
Long-term debt, less current portion			1,881,391			1,866,819
Total capitalization			4,082,607			3,407,590
Current liabilities:
Lines of credit			200,275			86,834
Current portion of long-term debt			7,882			23,504
Accrued groundwater extraction charges, purchased water and power			44,660			29,321
Accounts payable			87,913			75,427
Accrued interest			23,331			18,241
Accrued payroll			14,632			19,109
Current portion of regulatory liabilities			—			—
Other current liabilities			31,654			20,942
Total current liabilities			410,347			273,378
Deferred income taxes			332,866			307,893
Advances for construction			209,161			201,413
Contributions in aid of construction			354,547			342,697
Postretirement benefit plans			47,391			45,878
Regulatory liabilities, less current portion			583,599			546,797
Other noncurrent liabilities			31,606			23,920
Total capitalization and liabilities		$	6,052,124			5,149,566

H2O America Reconciliation of Non-GAAP Financial Measures (Unaudited) (in thousands, except per share data)
		Three months ended September 30,							Nine months ended September 30,
			2026			2025				2026				2025
Reported GAAP Net Income		$	43,044			45,132				88,646				86,358
Adjustments:
(Gain)/loss on sale of real estate investments1			(1,152	)		(273	)			(1,324	)			(273	)
Expense for merger, acquisition and integration activities1			3,774			700				10,185				3,048
Non-recurring tax adjustment due to merger, acquisition and integration related activities2			264			—				264				—
Tax effect of above adjustments3			(733	)		(109	)			(2,479	)			(766	)
Adjusted Net Income (non-GAAP)		$	45,197			45,450			$	95,292				88,367
Reported GAAP Diluted Earnings Per Share		$	0.99			1.27			$	2.13			$	2.48
Adjustments:
(Gain)/loss on sale of real estate investments, net of tax			(0.02	)		(0.01	)			(0.02	)			(0.01	)
Expense for merger, acquisition and integration activities, net of tax			0.06			0.01				0.18				0.06
Non-recurring tax adjustment due to merger, acquisition and integration related activities			0.01			—				0.01				—
Adjusted Diluted Earnings Per Share (non-GAAP)		$	1.04			1.27				2.30				2.53
1 Included in the “Administrative and general” and “Other, net” lines on the consolidated statements of comprehensive income 2 Included in the “provision for income taxes” line on the condensed consolidated statements of comprehensive income 3 The tax effect on all adjustments is calculated at the applicable statutory rate.

ROCKVILLE, Md., Oct. 26, 2026 (GLOBE NEWSWIRE) — Capital Bancorp, Inc. (the “Company”) (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the “Bank”), today reported:

	Quarter Ended						% Change (Annualized)
(in millions, except per share data)	3Q26		2Q26		3Q25		3Q26 vs 2Q26		3Q26 vs 3Q25
Balance Sheet Summary
Gross Loans(1)	$3,114		$3,086		$2,822		3.6%		10.4%
Total Deposits	3,319		3,371		2,912		(6.1)%		14.0%
Customer Deposits(2)	2,988		3,140		2,675		(19.2)%		11.7%
Tangible Book Value per share(3)	$23.98		$23.45		$21.33		9.0%		12.4%

	GAAP										Core(3)
	Quarter Ended						Change				Quarter Ended						Change
(in millions, except per share data)	3Q26		2Q26		3Q25		3Q26 vs 2Q26		3Q26 vs 3Q25		3Q26		2Q26		3Q25		3Q26 vs 2Q26		3Q26 vs 3Q25
Earnings Summary
Net Income	$13.1		$14.3		$15.1		(7.9)%		(12.9)%		$14.7		$14.3		$12.2		3.2%		21.0%
Earnings per share – diluted	$0.80		$0.87		$0.89		(8.0)%		(10.1)%		$0.89		$0.87		$0.72		2.3%		23.6%
ROA	1.38%		1.52%		1.77%		(14) bps		(39) bps		1.55%		1.52%		1.43%		3 bps		12 bps
ROTCE(3)	13.62%		15.51%		17.49%		(189) bps		(387) bps		15.24%		15.51%		14.15%		(27) bps		109 bps
	Including Card										Excluding Card
NIM	5.81%		5.64%		6.36%		17 bps		(55) bps		4.18%		4.04%		4.66%		14 bps		(48) bps

	GAAP						Core(3)
	Nine Months Ended				Change		Nine Months Ended				Change
(in millions, except per share data)	3Q26		3Q25		3Q26 vs 3Q25		3Q26		3Q25		3Q26 vs 3Q25
Earnings Summary
Net Income	$39.4		$42.1		(6.5)%		$41.0		$41.3		(0.7)%
Earnings per share – diluted	$2.40		$2.50		(4.0)%		$2.49		$2.45		1.6%
ROA	1.41%		1.71%		(30) bps		1.47%		1.67%		(20) bps
ROTCE(3)	14.24%		17.06%		(282) bps		14.80%		16.70%		(190) bps
	Including Card						Excluding Card
NIM	5.72%		6.15%		(43) bps		4.12%		4.48%		(36) bps

“This was indeed a very busy quarter with the announcements of the merger with Peoples Bank and the sale of our Chicago branch,” said Steven J. Schwartz, Chairman of the Company. “However, it is also important to note our continued steady net interest margin and tangible net book value⁽³⁾ growth, along with sustained double-digit loan growth and the quarter-over-quarter increase in core earnings per share. The Board is excited about both the synergistic opportunities the merger provides as well as our independent organic growth and performance prospects.”

⁽¹⁾ Gross loans represent portfolio loans receivable, net of deferred fees and costs.
⁽²⁾ Customer deposits represent total deposits excluding brokered deposits.
⁽³⁾ As used in this press release, Core net income, Core earnings per share – diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial metrics. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of this and other non-GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Third Quarter 2026 Highlights

• On September 29, 2026 the Company announced it has entered into a definitive merger agreement under which Peoples Bancorp, Inc. (“Peoples”) will acquire Capital Bancorp, Inc. in an all-stock transaction. Under the terms of the agreement, shareholders will receive 1.11 shares of Peoples common stock for each share of the Company’s common stock, representing an implied value of $43.75 per share and an approximate 22.7% premium over the Company’s closing stock price on September 29, 2026. The implied value represented a 1.9x tangible book value per share⁽⁴⁾ and 12.9x last-twelve-month earnings per share – diluted for the quarter ended June 30, 2026. The transaction is subject to receipt of required regulatory approvals, shareholder approval, and other customary closing conditions
• On September 29, 2026 the Company announced it has entered into a purchase and assumption agreement with respect to the Bank’s branch office located in North Riverside, Illinois (“Chicago branch”), subject to regulatory approvals and other customary closing conditions. Based on the composition of deposits at September 30, 2026, the Bank would have received a deposit premium of approximately $3.2 million had the transaction closed at that date. The Bank will also receive a payment equal to the unpaid principal balance of loans transferred in the transaction, which could result in an additional gain at the time of closing
• Total deposits decreased $52.0 million or 6.1% (annualized) from 2Q 2026, primarily driven by decreases of $89.3 million from DDA products associated with our Title business, consistent with regular seasonality. The decrease in deposits also included a $45.2 million reduction associated with a single customer relationship that had grown significantly throughout the year and which was noted in the 2Q 2026 earnings release. Excluding deposits from title companies and the single customer relationship, deposits increased $82.5 million or 11.8% (annualized)
• Noninterest expenses increased $2.5 million or 23.3% (annualized) from 2Q 2026 as we continued to execute on strategic growth initiatives and incurred merger-related expenses related to the pending merger with Peoples. Excluding the impact of merger-related expenses, Core noninterest expenses⁽⁴⁾ increased $1.0 million or 8.8% (annualized) from 2Q 2026
• Generated $80.2 million, or 10.2% (annualized) growth in total gross loans from 2Q 2026, largely driven by commercial and industrial (“C&I”), which grew $47.1 million, or 25.6% (annualized), across both held for sale and held for investment portfolios, and residential real estate, which grew $26.1 million, or 13.0% (annualized), across both held for sale and held for investment portfolios
• Continued tangible book value compounding, with tangible book value per share⁽⁴⁾ increasing 9.0% (annualized) from 2Q 2026
• NIM of 5.81% increased 17 bps from 2Q 2026, driven by 14 bps from the Commercial Bank loan portfolio and 4 bps increased contribution from OpenSky™ due to higher balances, partially offset by 1 bp from other Commercial Bank activity. Core NIM of 4.18% increased 14 bps from 2Q 2026, primarily driven by 11 bps from organic growth from Commercial Bank portfolio.
• Diluted earnings per share of $0.80, down 8.0% from 2Q 2026. Core earnings per share⁽⁴⁾ increased $0.02, or 2.3% from 2Q 2026
• Produced 18.7% (annualized) fee income growth, led by government lending revenue, loan servicing rights income, credit card fees and USDA fees. Fee revenue represented 22.1% of total revenue
• The Company also declared a cash dividend on its common stock of $0.14 per share. The dividend is payable on November 25, 2026 to shareholders of record on November 9, 2026.

“We are excited about our combination with Peoples Bank and what it will bring to our franchises,” said Ed Barry, CEO of the Company. “Our current quarter results reflect work on the merger and continued progress on our strategic plan. Prudent and disciplined financial management is demonstrated in our ability to deliver strong profitability in a volatile operating environment.”

⁽⁴⁾ As used in this press release, Core noninterest expense, Core net income, Core earnings per share – diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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.

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

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

	Third Quarter 2026									Second Quarter 2026									Third Quarter 2025
(in thousands)	Income Before Income Taxes			Income Tax Expense (Benefit)			Net Income			Income Before Income Taxes			Income Tax Expense			Net Income			Income Before Income Taxes				Income Tax Expense (Benefit)				Net Income
GAAP Net Income	$	17,546		$	4,424		$	13,122		$	18,454		$	4,204		$	14,250		$	19,867			$	4,802			$	15,065
Deduct: Income from the Call of Brokered Time Deposits		—			—			—			—			—			—			(4,618	)			(1,129	)			(3,489	)
Add: Merger-Related Expenses		1,577			—			1,577			—			—			—			697				122				575
Core Net Income(1)	$	19,123		$	4,424		$	14,699		$	18,454		$	4,204		$	14,250		$	15,946			$	3,795			$	12,151

	Nine Months Ended September 30, 2026									Nine Months Ended September 30, 2025
(in thousands)	Income Before Income Taxes			Income Tax Expense (Benefit)			Net Income			Income Before Income Taxes				Income Tax Expense				Net Income
GAAP Net Income	$	51,871		$	12,481		$	39,390		$	55,263			$	13,130			$	42,133
Deduct: Income from the Call of Brokered Time Deposits		—			—			—			(4,618	)			(1,129	)			(3,489	)
Add: Merger-Related Expenses		1,577			—			1,577			3,361				752				2,609
Core Net Income(5)	$	53,448		$	12,481		$	40,967		$	54,006			$	12,753			$	41,253

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

Net income of $13.1 million decreased $1.1 million compared to 2Q 2026, and earnings per share – diluted of $0.80 decreased $0.07 per share from 2Q 2026. Net income decreased $1.9 million, or 12.9%, compared to $15.1 million, or $0.89 per diluted share, for 3Q 2025. 3Q 2026 Core net income⁽⁵⁾ of $14.7 million, or $0.89 per diluted share, increased $0.4 million, or 3.2%, compared to 2Q 2026 Core net income⁽⁵⁾ of $14.3 million, or $0.87 per diluted share. 3Q 2026 Core net income⁽⁵⁾ increased $2.5 million from 3Q 2025 Core net income⁽⁵⁾ of $12.2 million. 3Q 2026 Core net income⁽⁵⁾ excluding purchase accounting accretion (“PAA”) was $14.4 million, an increase of $2.9 million, or 25.2%, from 3Q 2025 Core net income⁽⁵⁾ of $11.5 million excluding PAA.

⁽⁵⁾ As used in this press release, Core net income and Core noninterest expense are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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.

Consolidated Financial Performance

Quarterly net interest income:

• Net interest income of $53.1 million increased $2.1 million, or 4.2% (not annualized), compared to 2Q 2026, and increased $1.1 million, or 2.0%, year-over-year.
  • Interest income of $72.3 million increased $2.3 million, or 3.3% (not annualized), compared to 2Q 2026, and increased $7.4 million, or 11.4%, year-over-year. The increase from 2Q 2026 was primarily driven by a $2.4 million increase from Commercial Bank loan growth and $0.5 million increase from OpenSky™ due to higher balances and higher yields, slightly offset by a $0.5 million decrease in interest bearing cash income due to lower balances of interest-bearing deposits from other financial institutions. The increase year-over-year was primarily driven by $6.5 million from the Commercial Bank due to strong organic loan growth, and $0.9 million from OpenSky™ due to strong growth from the unsecured loan product.
    • Interest income included $0.3 million from net PAA in 3Q 2026, compared to $0.2 million in 2Q 2026 and $0.2 million in net PAA in 3Q 2025.
  • Interest expense of $19.2 million increased $0.2 million, or 1.0% (not annualized), compared to 2Q 2026, and increased $6.3 million, or 49.3%, year-over-year. The increase of $0.2 million, compared to 2Q 2026, was primarily driven by growth in money market accounts, offset by a decrease in borrowed funds. The increase of $6.3 million year-over-year was driven by $1.0 million from higher balances and a shift in deposit mix, $5.2 million of decreased benefit from net PAA, and $0.1 million of higher borrowing costs.
    • Interest expense included a $0.1 million benefit from net PAA in both 3Q 2026 and 2Q 2026. There was a $5.3 million benefit from net PAA in 3Q 2025, which included $4.6 million from the call of brokered time deposits acquired from the IFH transaction (“Call of Brokered Time Deposits”).

Quarterly provision:

• The 3Q 2026 provision for credit losses was $4.9 million, an increase of $1.3 million from 2Q 2026. The increase was primarily driven by $1.3 million of increased provision for the Commercial Bank from 2Q 2026, primarily due to a $1.0 million increased reserve requirement largely attributable to loan growth and $0.3 million decrease in net charge-offs. Net charge-offs totaled $3.8 million, or 0.49% of portfolio loans (annualized), consistent with $3.8 million or 0.50% of portfolio loans (annualized), in 2Q 2026.
  • Net charge-offs in the quarter included $3.2 million from OpenSky™ loans and $0.6 million from Commercial Bank loans. Net charge-offs for the Commercial Bank decreased $0.3 million quarter-over-quarter. OpenSky™ net charge-offs increased $0.3 million quarter-over-quarter, driven by the secured product.
  • At September 30, 2026, the ACL Coverage Ratio was 1.78%, an increase of 2 bps from June 30, 2026.

Quarterly fee revenue:

• Fee Revenue of $15.0 million increased $0.7 million, compared to 2Q 2026 and increased $4.0 million year-over-year. The increase of $0.7 million during 3Q 2026 was primarily driven by a $0.4 million increase in other income from fees associated with USDA transactions that did not close and an increase in small business investment company (“SBIC”) income, and a $0.3 million increase in government lending revenue from both USDA and SBA gain on sale. The year-over-year fee revenue increase of $4.0 million was primarily driven by a $1.5 million increase in government lending revenue mostly from USDA gain on sale, $1.2 million from SBIC income, $0.8 million from government loan servicing and packaging revenue (Windsor™) driven by growth in servicing income from organic growth in the servicing portfolio, and $0.3 million from fees earned from USDA deals which were not executed. Fee revenue mix⁽⁶⁾ was 22.1% of total revenue for 3Q 2026, compared to 22.0% during 2Q 2026, and 17.5% during 3Q 2025. Core fee revenue mix was 22.1% for 3Q 2026, compared to 22.0% during 2Q 2026, and 18.9% during 3Q 2025.

Quarterly noninterest expense:

• Noninterest expense of $45.7 million increased $2.5 million compared to 2Q 2026 and increased $7.4 million compared to 3Q 2025. Core noninterest expense⁽⁷⁾ of $44.1 million increased $1.0 million compared to 2Q 2026 and increased $6.5 million compared to 3Q 2025. Core comparisons include:
  • The increase of $1.0 million quarter-over-quarter was primarily driven by $1.0 million higher personnel costs primarily due to planned investment in headcount
  • Year-over-year expense growth of $6.5 million was primarily driven by planned expansion and investment in headcount across the organization, and an increase in professional fees associated with investments in shared services areas and OpenSky™.

⁽⁶⁾ Fee revenue mix equals fee revenue divided by the sum of fee revenue and net interest income before provision for credit losses.

⁽⁷⁾ As used in this press release, Core noninterest expense, Core net income, Core earnings per share – diluted, Core ROA, Core ROTCE, Tangible Book Value per share are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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.

Quarterly income taxes:

• Income tax expense of $4.4 million, or 25.2% of pre-tax income for 3Q 2026, increased $0.2 million from $4.2 million, or 22.8% of pre-tax income for 2Q 2026. The effective income tax rate change quarter-over-quarter primarily reflects $1.6 million of non-deductible merger costs. Our Core effective income tax rate excluding non-deductible merger costs was 23.1% for 3Q 2026.

Total assets:

Total assets of $3.8 billion at September 30, 2026 decreased $87.4 million, or 8.9% (annualized) from June 30, 2026. The $87.4 million decrease was primarily driven by $156.2 million of decreased cash and cash equivalents, offset by total loan growth of $80.2 million (inclusive of portfolio loans receivable and loans held for sale). Total assets growth year-over-year was $413.1 million, or 12.2%. The growth year-over-year was primarily driven by increases in portfolio loans and cash balances.

Gross Loans:

• Total loans increased $80.2 million driven by increases in loans held for sale of $51.9 million and loans held for investment of $28.3 million
• Loans held for sale increased $51.9 million, primarily driven by a reclassification of $60.2 million of loans from held for investment to held for sale due to the pending Chicago branch sale, subject to mutual agreement with the buyer on the loan population.
• Gross Loans held for investment of $3.1 billion at September 30, 2026 increased $28.3 million, or 3.6% (annualized), from June 30, 2026 and increased $292.3 million, or 10.4%, year-over-year.
  • Excluding the impact of $60.2 million of loans reclassified to held for sale, gross loans held for investment increased $88.5 million, or 11.4% (annualized) from June 30, 2026.
  • Compared to June 30, 2026, growth was primarily driven by $42.7 million from C&I and $10.0 million from construction real estate, slightly offset by a $21.1 million decrease in commercial real estate.
    • The $42.7 million growth from C&I was driven by $20.1 million SBA, $14.7 million legacy, and $7.9 million USDA.
  • C&I loans, plus owner-occupied CRE loans, totaled 38.3% of total portfolio loans at September 30, 2026, 37.4% at June 30, 2026, and 37.6% at September 30, 2025.

Deposits:

• Total deposits of $3.3 billion at September 30, 2026 decreased $52.0 million, or 6.1% (annualized), from June 30, 2026, and increased $407.1 million, or 14.0% from September 30, 2025.
  • Excluding a $99.9 million increase in brokered time deposits, customer deposits decreased $151.8 million or 19.2% (annualized), which was driven by an $89.3 million decrease from DDA products associated with our Title business due to typical seasonality, a $35.6 million increase from organic activity, and a $26.9 million decrease from customer time deposits which were not renewed or extended.
    • The $151.8 million decrease includes $68.4 million from interest-bearing demand accounts, $52.8 million from noninterest-bearing deposits, $11.2 million from customer money market deposits, and $26.9 million from customer time deposits, partially offset by $7.5 million of growth from savings accounts.
  • The increase in total deposits of $407.1 million year-over-year was primarily driven by $390.4 million in growth from customer money market deposits and $17.7 million from high yield savings accounts, with offsetting activity across other deposit products.
  • Total deposits include $111.1 million of deposits expected to be assumed in connection with the pending Chicago branch sale, subject to finalization of the purchase and assumption agreement.

• Insured and protected⁽⁸⁾ deposits were approximately $2.2 billion as of September 30, 2026 representing 66.6% of the Company’s deposit portfolio.
• Low interest⁽⁹⁾ and noninterest-bearing demand deposit account (“DDA”) deposits totaled $1.2 billion, or 36.1% of deposits, a decrease of $113.8 million, or 8.7% from 2Q 2026, and an increase of $52.1 million, or 4.5% year-over-year.
  • The average rate on the low interest and noninterest-bearing deposits was 0.30% for 3Q 2026, which increased 1 bps compared to 2Q 2026 and increased 15 bps year-over-year.

• The average portfolio loans-to-deposit ratio was 96.0% for 3Q 2026, compared to 94.3% for 2Q 2026, and 95.6% for 3Q 2025.

⁽⁸⁾ Protected deposits include deposits that are indirectly protected under the product terms.

⁽⁹⁾ Low interest deposits include interest-bearing demand and savings accounts.

Investment securities:

• The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $214.5 million, or 5.6% of total assets, and an effective duration of 2.4 years, with U.S. Treasury Securities representing 61% of the overall investment portfolio at September 30, 2026. The accumulated other comprehensive loss on the investment securities portfolio increased $2.9 million during the quarter to $9.2 million after-tax as of September 30, 2026, which represents 2.1% of total stockholders’ equity. The Company does not have a held-to-maturity investment securities portfolio.

Liquidity:

• The Company maintains stable and diversified sources of contingent liquidity, generally consistent with the prior quarter. Total available borrowing capacity as of September 30, 2026 was $842.6 million, compared to $801.6 million as of June 30, 2026, consisting of $736.0 million of available collateralized borrowing capacity, $100.5 million of unsecured lines of credit with other banks, and $6.1 million of unpledged investment securities available to collateralize potential additional borrowings. Including cash and cash equivalents of $262.0 million, total liquidity was approximately $1.1 billion.

Capital:

• As of September 30, 2026, the Company reported a Common Equity Tier-1 capital ratio of 13.25% and a Tier 1 leverage ratio of 10.84%, compared to 13.16% and 10.51%, respectively, at June 30, 2026. At September 30, 2026, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
• There were no shares repurchased and retired during the three months ended September 30, 2026, as part of the Company’s stock repurchase program. As of September 30, 2026, there was $12.4 million remaining to be repurchased under the current $15.0 million authorized repurchase program, which will expire on December 31, 2026. In connection with the merger agreement with Peoples, the Company has suspended its stock repurchase program and does not currently expect to repurchase additional shares while the proposed transaction is pending.

Financial Metrics

Net Interest Margin:

NIM of 5.81% for 3Q 2026, increased 17 bps compared to the prior quarter, but decreased 55 bps year-over-year. Core NIM⁽¹⁰⁾ of 4.18% increased 14 bps (but increased 12 bps when excluding PAA) compared to the prior quarter, and decreased 48 bps year-over-year. Net PAA for 3Q 2026 was 4 bps for NIM and 5 bps for Core NIM⁽¹⁰⁾. The increase quarter-over-quarter in Core NIM includes 11 bps from organic growth from Commercial Bank portfolio, 2 bps from one non-performing loan relationship in 2Q 2026, and 1 bp from higher net PAA compared to 2Q 2026. There was $4.6 million of PAA from the Call of Brokered Time Deposits during 3Q 2025, or 56 bps of NIM and 59 of Core NIM. Excluding the impact from the Call of Brokered Time Deposits, NIM increased 1 bp and Core NIM increased 11 bps year-over-year.

• The average yield on interest earning assets of 7.91% increased 16 bps compared to the prior quarter and decreased 2 bps year-over-year. The increase quarter-over-quarter was due to growth in both the Commercial Bank and OpenSky™ portfolios. The decrease year-over-year was primarily due to the impact of changes in the rate environment to the Commercial Bank and OpenSky™ portfolios.
  • The Core Loan Yield⁽¹⁰⁾ of 6.83% for 3Q 2026 increased 6 bps compared to 2Q 2026, and increased 9 bps year-over-year. The increase quarter-over-quarter includes 3 bps from organic portfolio growth and 3 bps from loan PAA. The increase year-over-year was primarily a result of organic portfolio growth.
• The total cost of deposits of 2.30% for 3Q 2026 increased 1 bp compared to 2Q 2026, and increased 57 bps year-over-year. The increase year-over-year was primarily due to 63 bps from the Call of Brokered Time Deposits in 3Q 2025. Excluding the Call of Brokered Time Deposits from 3Q 2025, total cost of deposits would have decreased 6 bps year-over-year, primarily driven by a shift in product mix as well as changes in the rate environment offsetting lower time deposit PAA.
• The total cost of interest-bearing deposits of 3.09% for 3Q 2026, remained consistent compared to the prior quarter, and increased 68 bps year-over-year. The increase year-over-year was primarily due to 87 bps from the Call of Brokered Time Deposits in 3Q 2025. Excluding the Call of Brokered Time Deposits from 3Q 2025, total cost of interest-bearing deposits would have decreased 19 bps year-over-year, which was primarily driven by a shift in product mix as well as changes in the rate environment.
• Net PAA of $0.4 million, or 4 bps of NIM and 5 bps of Core NIM⁽¹⁰⁾, during 3Q 2026, increased $0.1 million from 2Q 2026 due to $0.2 million from the acceleration of PAA from a loan that paid off during 3Q 2026, partially offset by $0.1 million lower time deposit PAA from the run-off of certain purchase accounting marks associated with acquired IFH deposit portfolio. There was $5.5 million from net PAA during 3Q 2025, which includes $4.6 million, or 59 bps of Core NIM, from the Call of Brokered Time Deposits. Excluding the impact from the Call of Brokered Time Deposits, net PAA decreased $0.5 million mainly driven by lower time deposit PAA.

⁽¹⁰⁾ As used in this press release, Core NIM, Core Loan Yield, and Core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

Credit Metrics and Asset Quality:

Nonperforming assets were $60.5 million, or 1.59% of total assets, at September 30, 2026, a decrease of $0.3 million but an increase of 3 bps from June 30, 2026. The decrease of $0.3 million was primarily driven by the acquired IFH portfolio. Nonperforming assets increased $8.3 million or 5 bps year-over-year, mainly due to the $9.7 million increase during 2Q 2026 related to the legacy bank loan relationship noted during 2Q 2026. At September 30, 2026, substandard loans totaled $71.4 million, or 2.3% of total portfolio loans, compared to $70.6 million, or 2.3% of total portfolio loans, at June 30, 2026 and $56.8 million, or 2.0% of total portfolio loans, at September 30, 2025. The $14.6 million year-over-year increase in substandard loans was primarily driven by the $9.7 million legacy bank relationship that is referenced above. At September 30, 2026, special mention loans totaled $67.8 million, or 2.2%, of total portfolio loans, compared to $61.5 million, or 2.0% of total portfolio loans, at June 30, 2026, and $71.5 million, or 2.5% of total portfolio loans, at September 30, 2025.

Efficiency Ratio:

The efficiency ratio was 67.1% for 3Q 2026, compared to 66.1% for 2Q 2026 and 60.8% for 3Q 2025. The Core efficiency ratio⁽¹¹⁾ was 64.8% for 3Q 2026, which decreased from 66.1% compared to the prior quarter, and increased from 64.4% for 3Q 2025.

Returns:

ROA was 1.38% for 3Q 2026, compared to 1.52% for 2Q 2026, and 1.77% for 3Q 2025. Core ROA⁽¹¹⁾ for 3Q 2026 was 1.55%, compared to 1.52% for 2Q 2026, and 1.43% for 3Q 2025.

• ROE was 12.16% for 3Q 2026, compared to 13.80% for 2Q 2026, and 15.57% for 3Q 2025. Core ROE⁽¹¹⁾ was 13.63% for 3Q 2026, compared to 13.80% for 2Q 2026, and 12.56% for 3Q 2025.
• ROTCE⁽¹⁾ was 13.62% for 3Q 2026, compared to 15.51% for 2Q 2026, and 17.49% for 3Q 2025. Core ROTCE⁽¹¹⁾ for 3Q 2026 was 15.24%, compared to 15.51% for 2Q 2026, and 14.15% for 3Q 2025.

⁽¹¹⁾ As used in this press release, Core ROA, Core ROE, ROTCE, Core ROTCE, Core Efficiency Ratio and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of merger-related expenses and certain other pre-tax adjustments which are not indicative of operating performance and the 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.

Book Value:

Book value per common share of $26.42 at September 30, 2026, increased $0.50 when compared to June 30, 2026, and increased $2.62 when compared to September 30, 2025. Tangible book value per share⁽¹²⁾ increased $0.53, or 2.3% (not annualized), to $23.98 at September 30, 2026 when compared to June 30, 2026, and increased $2.65, or 12.4%, when compared to September 30, 2025.

Reportable Segments

Commercial Bank

Loan Growth – Portfolio loans⁽¹²⁾ increased $24.8 million at September 30, 2026 compared to June 30, 2026, primarily driven by increases of $42.7 million from C&I, $10.0 million from construction real estate, and $5.6 million from lender finance, offset by decreases of $21.1 million from CRE and $13.5 million from residential real estate. Excluding the impact of $60.2 million of loans reclassified to held for sale, gross loans held for investment increased $88.5 million, or 11.4% (annualized) from June 30, 2026. Portfolio loans increased $276.5 million at September 30, 2026 compared to September 30, 2025, driven by $155.1 million from C&I, $44.2 million from residential real estate, $36.4 million from construction real estate, and $12.1 million from CRE. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

⁽¹²⁾ Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.

Net Interest Income – Interest income of $55.6 million increased $1.9 million from the prior quarter, driven by $2.4 million from loan growth, slightly offset by a $0.5 million decrease from interest bearing cash income. Interest expense of $19.1 million increased $0.2 million, driven by growth and a mix shift in the deposit portfolio.

Credit Metrics – Nonperforming assets increased 3 bps to 1.68% of total assets at September 30, 2026, compared to June 30, 2026. Total nonaccrual loans at September 30, 2026, were $56.7 million, a decrease of $0.3 million or 0.6% compared to $57.0 million at June 30, 2026.

Classified and Criticized Loans – At September 30, 2026, special mention loans totaled $67.8 million, or 2.2% of total portfolio loans, compared to $61.5 million, or 2.0% of total portfolio loans, at June 30, 2026. At September 30, 2026, substandard loans totaled $71.4 million, or 2.3% of total portfolio loans, compared to $70.6 million, or 2.3% of total portfolio loans, at June 30, 2026.

OpenSky™

OpenSky™ results reflected continued loan balance growth, lower operating expenses and credit performance consistent with management expectations.

Accounts – During 3Q 2026, credit card accounts declined to 575.8 thousand, decreasing 12.8 thousand, or 2.2% (not annualized) from June 30, 2026, and decreasing 11.8 thousand, or 2.0% year-over-year.

Loan and Deposit Balances – Secured and unsecured loan balances, net of reserves for interest and fees, of $149.2 million at September 30, 2026 increased by $3.9 million, or 2.7% (not annualized), compared to June 30, 2026, and increased $12.7 million, or 9.3%, year-over-year. Deposit balances of $162.4 million at September 30, 2026, decreased $3.8 million compared to June 30, 2026 and decreased $4.5 million, or 2.7% year-over-year. Gross unsecured loan balances of $57.6 million at September 30, 2026, increased $6.4 million, or 12.4% (not annualized), compared to $51.2 million at June 30, 2026, and increased $18.0 million, or 45.5% (not annualized), year-over-year. Gross secured loan balances of $93.7 million at September 30, 2026, decreased $2.4 million, or 2.5% (not annualized), compared to $96.0 million at June 30, 2026, and decreased $5.1 million, or 5.2% (not annualized) year-over-year.

Net Interest Income – Interest income of $16.5 million increased $0.5 million compared to 2Q 2026, supported by higher average OpenSky™ credit card loan balances. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $143.9 million for 3Q 2026, increased $6.8 million, or 5.0% (not annualized), compared to 2Q 2026.

Fee Revenue – Total fee revenue of $4.6 million increased $0.1 million from the prior quarter primarily driven by continued growth in net interest income as loan balances increased.

Noninterest Expense – Total noninterest expense of $15.7 million increased $0.3 million compared to 2Q 2026, driven by increased spending on professional services.

OpenSky™ Credit – Portfolio credit metrics continued to be generally consistent with modeled expectations during 3Q 2026. The provision for credit losses of $4.1 million increased $0.1 million when compared to the prior quarter. Net charge-offs increased $0.3 million to $3.2 million in 3Q 2026 from $2.9 million in 2Q 2026. The $0.3 million increase in charge-offs was primarily driven by the secured product and is consistent with normal seasonality and expectations for the card business. On a year-over-year basis, net charge-offs for the secured product increased only $0.1 million, while net charge-offs for the unsecured product increased $1.0 million, driven by growth in the unsecured portfolio. The majority of OpenSky’s™ unsecured loan product is offered to current and former secured card customers, where the Company has historical customer performance data. Unsecured loans have been offered by OpenSky™ since the fourth quarter of 2021 and have generally performed in alignment with management expectations over that time period. OpenSky™ has begun testing limited offers to new customers; this activity remains insignificant to the overall unsecured loan portfolio and total accounts, and balances are expected to remain de minimis through year-end as management monitors performance.

Capital Bank Home Loans

Originations of loans held for sale totaled $75.3 million during 3Q 2026, with $47.9 million of mortgage loans sold resulting in a gain on sale of loans of $1.4 million, representing a 2.93% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $106.9 million during 2Q 2026, with $87.1 million of mortgage loans sold resulting in a gain on sale of loans of $2.4 million, representing a 2.71% gain on sale as a percentage of total loans sold.

Windsor Advantage™

Gross government loan servicing revenue totaled $6.7 million, including $1.7 million of Capital Bank related servicing fees, during 3Q 2026. Gross government loan servicing revenue totaled $6.6 million, including $1.3 million of Capital Bank related servicing fees, during 2Q 2026. Windsor’s™ total servicing portfolio was $3.5 billion at September 30, 2026, and $3.4 billion at June 30, 2026. In 3Q 2026, Windsor processed the closing of $183.9 million of government guaranteed loans, a 17.8% decrease from $223.6 million in 2Q 2026 and a 35.4% increase from $135.8 million in 3Q 2025.

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited
	Quarter Ended												3Q26 vs 2Q26							3Q26 vs 3Q25
(in thousands, except per share data)	September 30, 2026				June 30, 2026				September 30, 2025				$ Change				% Change			$ Change				% Change
Earnings Summary
Interest income	$	72,292			$	69,959			$	64,891			$	2,333			3.3	%		$	7,401			11.4	%
Interest expense		19,214				19,030				12,871				184			1.0	%			6,343			49.3	%
Net interest income		53,078				50,929				52,020				2,149			4.2	%			1,058			2.0	%
Provision for credit losses		4,903				3,585				4,650				1,318			36.8	%			253			5.4	%
Provision for (release of) credit losses on unfunded commitments		(54	)			65				217				(119	)		(183.1	)%			(271	)		(124.9	)%
Noninterest income		15,039				14,361				11,068				678			4.7	%			3,971			35.9	%
Noninterest expense		45,722				43,186				38,354				2,536			5.9	%			7,368			19.2	%
Income before income taxes		17,546				18,454				19,867				(908	)		(4.9	)%			(2,321	)		(11.7	)%
Income tax expense		4,424				4,204				4,802				220			5.2	%			(378	)		(7.9	)%
Net income	$	13,122			$	14,250			$	15,065			$	(1,128	)		(7.9	)%		$	(1,943	)		(12.9	)%
Core net income(1)	$	14,699			$	14,250			$	12,151			$	449			3.2	%		$	2,548			21.0	%
Pre-tax pre-provision net revenue (“PPNR”)(1)	$	22,395			$	22,104			$	24,734			$	291			1.3	%		$	(2,339	)		(9.5	)%
Core PPNR(1)	$	23,972			$	22,104			$	20,813			$	1,868			8.5	%		$	3,159			15.2	%
Common Share Data
Earnings per share – Basic	$	0.81			$	0.87			$	0.91			$	(0.06	)		(6.9	)%		$	(0.10	)		(11.0	)%
Earnings per share – Diluted	$	0.80			$	0.87			$	0.89			$	(0.07	)		(8.0	)%		$	(0.09	)		(10.1	)%
Core earnings per share – Diluted(1)	$	0.89			$	0.87			$	0.72			$	0.02			2.3	%		$	0.17			23.6	%
Weighted average common shares – Basic		16,294				16,288				16,586
Weighted average common shares – Diluted		16,482				16,373				16,844
Return Ratios
Return on average assets (annualized)		1.38	%			1.52	%			1.77	%
Core return on average assets (annualized)(1)		1.55	%			1.52	%			1.43	%
Return on average equity (annualized)		12.16	%			13.80	%			15.57	%
Core return on average equity (annualized)(1)		13.63	%			13.80	%			12.56	%
Return on average tangible common equity (annualized)(1)		13.62	%			15.51	%			17.49	%
Core return on average tangible common equity (annualized)(1)		15.24	%			15.51	%			14.15	%

_______________

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

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (continued)
		Nine Months Ended
		September 30,
(in thousands, except per share data)			2026				2025			$ Change				% Change
Earnings Summary
Interest income		$	210,221			$	192,237			$	17,984			9.4	%
Interest expense			56,816				46,524				10,292			22.1	%
Net interest income			153,405				145,713				7,692			5.3	%
Provision for credit losses			11,502				10,977				525			4.8	%
Provision for credit losses on unfunded commitments			216				217				(1	)		(0.5	)%
Noninterest income			42,773				36,723				6,050			16.5	%
Noninterest expense			132,589				115,979				16,610			14.3	%
Income before income taxes			51,871				55,263				(3,392	)		(6.1	)%
Income tax expense			12,481				13,130				(649	)		(4.9	)%
Net income		$	39,390			$	42,133			$	(2,743	)		(6.5	)%
Core net income(1)		$	40,967			$	41,253			$	(286	)		(0.7	)%
Pre-tax pre-provision net revenue (“PPNR”)(1)		$	63,589			$	66,457			$	(2,868	)		(4.3	)%
Core PPNR(1)		$	65,166			$	65,200			$	(34	)		(0.1	)%
Common Share Data
Earnings per share – Basic		$	2.42			$	2.54			$	(0.12	)		(4.7	)%
Earnings per share – Diluted		$	2.40			$	2.50			$	(0.10	)		(4.0	)%
Core earnings per share – Diluted(1)		$	2.49			$	2.45			$	0.04			1.6	%
Weighted average common shares – Basic			16,309				16,611
Weighted average common shares – Diluted			16,437				16,850
Return Ratios
Return on average assets (annualized)			1.41	%			1.71	%
Core return on average assets (annualized)(1)			1.47	%			1.67	%
Return on average equity (annualized)			12.66	%			15.10	%
Core return on average equity (annualized)(1)			13.17	%			14.79	%
Return on average tangible common equity (annualized)(1)			14.24	%			17.06	%
Core return on average tangible common equity (annualized)(1)			14.80	%			16.70	%

_______________

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

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (continued)
	Quarter Ended									Quarter Ended
	September 30,									June 30,			March 31,			December 31,
(in thousands, except per share data)	2026			2025			% Change			2026			2026			2025
Balance Sheet Highlights
Assets	$	3,802,553		$	3,389,442		12.2	%		$	3,889,938		$	3,808,467		$	3,606,207
Investment securities available-for-sale		214,486			232,640		(7.8	)%			219,947			230,525			230,083
Mortgage loans held for sale		74,251			14,146		424.9	%			22,370			13,739			25,828
Portfolio loans receivable(2)		3,114,264			2,821,983		10.4	%			3,085,950			3,026,431			2,959,457
Allowance for credit losses		55,493			53,045		4.6	%			54,431			54,680			54,660
Goodwill		25,969			25,969		—	%			25,969			25,969			25,969
Intangible assets		13,989			15,033		(6.9	)%			14,250			14,511			14,771
Deposits		3,319,135			2,912,053		14.0	%			3,371,103			3,292,047			3,093,200
FHLB borrowings		—			22,000		(100.0	)%			50,000			50,000			50,000
Other borrowed funds		2,062			12,062		(82.9	)%			2,062			2,062			2,062
Total stockholders’ equity		431,450			394,770		9.3	%			422,205			408,859			401,757
Tangible common equity(1)		391,492			353,768		10.7	%			381,986			368,379			361,017
Common shares outstanding		16,329			16,589		(1.6	)%			16,289			16,286			16,373
Book value per share	$	26.42		$	23.80		11.0	%		$	25.92		$	25.10		$	24.54
Tangible book value per share(1)	$	23.98		$	21.33		12.4	%		$	23.45		$	22.62		$	22.05
Dividends per share	$	0.14		$	0.12		16.7	%		$	0.12		$	0.12		$	0.12

_______________

⁽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																		Nine Months Ended
(in thousands)	September 30, 2026				June 30, 2026			March 31, 2026			December 31, 2025				September 30, 2025				September 30, 2026			September 30, 2025
Interest income
Loans, including fees	$	68,136			$	65,362		$	64,186		$	64,933			$	60,838			$	197,684		$	180,339
Investment securities available-for-sale		1,826				1,814			1,459			1,728				1,805				5,099			5,248
Federal funds sold and other		2,330				2,783			2,325			1,973				2,248				7,438			6,650
Total interest income		72,292				69,959			67,970			68,634				64,891				210,221			192,237
Interest expense
Deposits		18,959				18,522			18,070			17,805				12,732				55,551			45,966
Borrowed funds		255				508			502			550				139				1,265			558
Total interest expense		19,214				19,030			18,572			18,355				12,871				56,816			46,524
Net interest income		53,078				50,929			49,398			50,279				52,020				153,405			145,713
Provision for credit losses		4,903				3,585			3,014			3,988				4,650				11,502			10,977
Provision for (release of) credit losses on unfunded commitments		(54	)			65			205			(29	)			217				216			217
Net interest income after provision for credit losses		48,229				47,279			46,179			46,320				47,153				141,687			134,519
Noninterest income
Service charges on deposits		418				409			403			371				425				1,230			945
Credit card fees		4,520				4,395			4,692			4,837				4,509				13,607			12,529
Mortgage banking revenue		1,849				1,960			1,556			1,960				1,927				5,365			5,512
Government lending revenue		1,474				1,207			923			—				14				3,604			4,222
Government loan servicing revenue		5,073				5,303			4,345			4,036				4,265				14,721			11,477
Loan servicing rights		523				292			497			295				368				1,312			250
Other income (loss)		1,182				795			957			965				(440	)			2,934			1,788
Total noninterest income		15,039				14,361			13,373			12,464				11,068				42,773			36,723
Noninterest expenses
Salaries and employee benefits		21,116				20,067			20,317			17,914				17,728				61,500			54,255
Occupancy and equipment		4,144				3,942			3,562			2,638				2,849				11,648			8,754
Professional fees		4,919				4,125			4,965			4,294				2,131				14,009			6,665
Data processing		7,708				7,551			7,767			7,502				7,654				23,026			22,286
Advertising		1,566				1,816			1,466			1,398				1,714				4,848			4,864
Loan processing		543				1,475			1,383			1,152				1,114				3,401			2,836
Merger-related expenses		1,577				—			—			—				697				1,577			3,361
Operational and other card fraud related losses		930				690			690			750				923				2,310			2,759
Regulatory assessment expenses		930				925			941			858				740				2,796			2,513
Other operating		2,289				2,595			2,590			2,597				2,804				7,474			7,686
Total noninterest expenses		45,722				43,186			43,681			39,103				38,354				132,589			115,979
Income before income taxes		17,546				18,454			15,871			19,681				19,867				51,871			55,263
Income tax expense		4,424				4,204			3,853			4,644				4,802				12,481			13,130
Net income	$	13,122			$	14,250		$	12,018		$	15,037			$	15,065			$	39,390		$	42,133

Consolidated Balance Sheets
	(unaudited)				(unaudited)				(unaudited)				(audited)				(unaudited)
(in thousands, except share data)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Assets
Cash and due from banks	$	15,563			$	24,771			$	20,182			$	30,894			$	25,724
Interest-bearing deposits at other financial institutions		246,469				393,428				379,069				224,611				163,078
Federal funds sold		—				60				60				60				59
Total cash and cash equivalents		262,032				418,259				399,311				255,565				188,861
Investment securities available-for-sale		214,486				219,947				230,525				230,083				232,640
Restricted investments		6,360				8,707				8,691				8,397				7,057
Loans held for sale(1)		74,251				22,370				13,739				25,828				14,146
Portfolio loans receivable, net of deferred fees and costs		3,114,264				3,085,950				3,026,431				2,959,457				2,821,983
Less allowance for credit losses		(55,493	)			(54,431	)			(54,680	)			(54,660	)			(53,045	)
Total portfolio loans held for investment, net		3,058,771				3,031,519				2,971,751				2,904,797				2,768,938
Premises and equipment, net(1)		17,531				17,669				17,732				15,072				15,304
Accrued interest receivable		23,189				19,429				16,795				16,695				19,011
Goodwill		25,969				25,969				25,969				25,969				25,969
Intangible assets		13,989				14,250				14,511				14,771				15,033
Loan servicing assets		1,994				1,847				1,957				1,816				2,070
Deferred tax asset		18,206				16,504				15,187				14,992				14,885
Bank owned life insurance		46,654				46,260				45,871				45,488				45,105
Other assets		39,121				47,208				46,428				46,734				40,423
Total assets	$	3,802,553			$	3,889,938			$	3,808,467			$	3,606,207			$	3,389,442
Liabilities
Deposits
Noninterest-bearing	$	844,536			$	897,363			$	871,677			$	852,741			$	857,543
Interest-bearing		2,474,599				2,473,740				2,420,370				2,240,459				2,054,510
Total deposits(1)		3,319,135				3,371,103				3,292,047				3,093,200				2,912,053
Federal Home Loan Bank advances		—				50,000				50,000				50,000				22,000
Other borrowed funds		2,062				2,062				2,062				2,062				12,062
Accrued interest payable		6,843				6,606				8,944				8,745				8,045
Other liabilities		43,063				37,962				46,555				50,443				40,512
Total liabilities		3,371,103				3,467,733				3,399,608				3,204,450				2,994,672
Stockholders’ equity
Common stock		163				163				163				164				166
Additional paid-in capital		114,557				113,217				112,268				114,604				121,707
Retained earnings		325,944				315,103				302,808				292,749				279,693
Accumulated other comprehensive loss		(9,214	)			(6,278	)			(6,380	)			(5,760	)			(6,796	)
Total stockholders’ equity		431,450				422,205				408,859				401,757				394,770
Total liabilities and stockholders’ equity	$	3,802,553			$	3,889,938			$	3,808,467			$	3,606,207			$	3,389,442

_______________

⁽¹⁾   Balances include held for sale transactions in connection with sale of Chicago branch.

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

	Three Months Ended September 30, 2026									Three Months Ended June 30, 2026									Three Months Ended September 30, 2025
	Average Outstanding Balance			Interest Income/ Expense			Average Yield/ Rate(1)			Average Outstanding Balance			Interest Income/ Expense			Average Yield/ Rate(1)			Average Outstanding Balance			Interest Income/ Expense			Average Yield/ Rate(1)
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	242,761		$	2,218		3.62	%		$	295,167		$	2,646		3.60	%		$	194,858		$	2,139		4.36	%
Federal funds sold		22			—		—				60			—		—				59			1		5.79
Investment securities available-for-sale		227,537			1,826		3.18				240,102			1,814		3.03				241,086			1,805		2.97
Restricted investments		7,441			112		5.97				8,701			137		6.32				7,052			108		6.06
Loans held for sale(2)(3)		11,630			194		6.62				17,381			252		5.82				13,783			228		6.57
Portfolio loans receivable(3)(4)		3,135,648			67,942		8.60				3,058,476			65,110		8.54				2,789,815			60,610		8.62
Total interest earning assets		3,625,039			72,292		7.91				3,619,887			69,959		7.75				3,246,653			64,891		7.93
Noninterest earning assets(2)		140,002									141,624									131,643
Total assets	$	3,765,041								$	3,761,511								$	3,378,296
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	332,684			768		0.92			$	346,671			816		0.94			$	282,873			388		0.54
Savings		22,479			115		2.03				17,790			70		1.58				12,887			15		0.47
Money market accounts		1,375,162			11,389		3.29				1,315,061			10,797		3.29				985,106			8,650		3.48
Time deposits		703,072			6,687		3.77				722,144			6,839		3.80				815,302			3,679		1.79
Borrowed funds		25,051			255		4.04				52,062			508		3.91				34,062			139		1.62
Total interest-bearing liabilities(2)		2,458,448			19,214		3.10				2,453,728			19,030		3.11				2,130,230			12,871		2.40
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		46,904									51,427									43,245
Noninterest-bearing deposits(2)		831,739									842,312									820,899
Stockholders’ equity		427,950									414,044									383,922
Total liabilities and stockholders’ equity	$	3,765,041								$	3,761,511								$	3,378,296
Net interest spread							4.81	%								4.64	%								5.53	%
Net interest income				$	53,078								$	50,929								$	52,020
Net interest margin(5)							5.81	%								5.64	%								6.36	%

_______________

⁽¹⁾   Annualized.
⁽²⁾   Balances include held for sale transactions in connection with sale of Chicago branch.
⁽³⁾   Average balances include nonaccrual loans. As of September 30, 2026, nonaccrual loans of $0.3 million were included in Loans held for sale and $56.4 million in Portfolio loans receivable.
⁽⁴⁾   For the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, Core Loan Yield was 6.83%, 6.77% and 6.74%, respectively.
⁽⁵⁾   For the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, Core Net Interest Margin was 4.18%, 4.04% and 4.66%, respectively.

	Nine Months Ended September 30,
		2026									2025
	Average Outstanding Balance			Interest Income/ Expense			Average Yield/ Rate(1)			Average Outstanding Balance			Interest Income/ Expense			Average Yield/ Rate(1)
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	261,412		$	7,063		3.61	%		$	193,337		$	6,342		4.39	%
Federal funds sold		47			1		2.84				59			2		4.24
Investment securities available-for-sale		233,592			5,099		2.92				235,690			5,248		2.98
Restricted investments		8,191			373		6.09				6,622			306		6.17
Loans held for sale(2)(3)		13,971			623		5.96				11,046			629		7.62
Portfolio loans receivable(3)(4)		3,067,904			197,062		8.59				2,719,834			179,710		8.83
Total interest earning assets		3,585,117			210,221		7.84				3,166,588			192,237		8.12
Noninterest earning assets(2)		141,434									131,582
Total assets	$	3,726,551								$	3,298,170
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	314,587		$	1,998		0.85	%		$	269,184		$	1,147		0.57	%
Savings		18,022			214		1.59				13,044			49		0.51
Money market accounts		1,293,968			31,666		3.27				927,044			24,071		3.47
Time deposits		755,275			21,673		3.84				830,451			20,699		3.33
Borrowed funds		42,959			1,265		3.94				34,062			558		2.19
Total interest-bearing liabilities(2)		2,424,811			56,816		3.13				2,073,785			46,524		3.00
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		54,081									48,374
Noninterest-bearing deposits(2)		831,811									802,991
Stockholders’ equity		415,848									373,020
Total liabilities and stockholders’ equity	$	3,726,551								$	3,298,170
Net interest spread							4.71	%								5.12	%
Net interest income				$	153,405								$	145,713
Net interest margin(5)							5.72	%								6.15	%

_______________

⁽¹⁾   Annualized.
⁽²⁾   Balances include held for sale transactions in connection with sale of Chicago branch.
⁽³⁾   Average balances include nonaccrual loans. As of September 30, 2026, nonaccrual loans of $0.3 million were included in Loans held for sale and $56.4 million in Portfolio loans receivable.
⁽⁴⁾   For the nine months ended September 30, 2026 and 2025, collectively. Core Loan Yield was 6.84% and 7.01%, respectively.
⁽⁵⁾   For the nine months ended September 30, 2026 and 2025, collectively. Core Net Interest Margin was 4.12% and 4.48%, respectively.

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

The following schedules reported internally for performance assessment by the chief operating decision maker presents financial information for each reportable segment for the periods indicated. Total assets are presented as of September 30, 2026, June 30, 2026, and September 30, 2025.

Segments
For the three months ended September 30, 2026
(in thousands)		Commercial Bank				OpenSky™			Windsor Advantage™			CBHL				Consolidated
Interest income		$	55,580			$	16,517		$	—		$	195			$	72,292
Interest expense			19,128				—			—			86				19,214
Net interest income			36,452				16,517			—			109				53,078
Provision for credit losses			833				4,070			—			—				4,903
Release of credit losses on unfunded commitments			(54	)			—			—			—				(54	)
Net interest income after provision			35,673				12,447			—			109				48,229
Noninterest income
Service charges on deposits			418				—			—			—				418
Credit card fees			—				4,520			—			—				4,520
Mortgage banking revenue			490				—			—			1,359				1,849
Government lending revenue			1,474				—			—			—				1,474
Government loan servicing revenue(1)			(1,665	)			—			6,738			—				5,073
Loan servicing rights			523				—			—			—				523
Other income			877				31			5			269				1,182
Total noninterest income			2,117				4,551			6,743			1,628				15,039
Noninterest expenses
Salaries and employee benefits			11,879				4,319			3,095			1,823				21,116
Occupancy and equipment			2,441				1,064			436			203				4,144
Professional fees			2,469				1,736			287			427				4,919
Data processing			442				7,152			62			52				7,708
Advertising			1,183				143			123			117				1,566
Loan processing			266				5			1			271				543
Merger-related expenses			1,577				—			—			—				1,577
Operational and other card fraud related losses			73				812			23			22				930
Regulatory assessment expenses			563				232			70			65				930
Other operating			1,332				262			563			132				2,289
Total noninterest expenses			22,225				15,725			4,660			3,112				45,722
Net income (loss) before taxes		$	15,565			$	1,273		$	2,083		$	(1,375	)		$	17,546
Total assets		$	3,607,589			$	144,462		$	28,508		$	21,994			$	3,802,553

_______________

⁽¹⁾   Gross government loan servicing revenue totaled $6.7 million, including $1.7 million of servicing fees earned from the Commercial Bank by Windsor™, for the three months ended September 30, 2026.

Segments
For the three months ended June 30, 2026
(in thousands)		Commercial Bank				OpenSky™			Windsor Advantage™			CBHL				Consolidated
Interest income		$	53,712			$	15,995		$	—		$	252			$	69,959
Interest expense			18,894				—			—			136				19,030
Net interest income			34,818				15,995			—			116				50,929
Provision for (release of) credit losses			(432	)			4,017			—			—				3,585
Provision for credit losses on unfunded commitments			65				—			—			—				65
Net interest income after provision			35,185				11,978			—			116				47,279
Noninterest income
Service charges on deposits			409				—			—			—				409
Credit card fees			—				4,395			—			—				4,395
Mortgage banking revenue			278				—			—			1,682				1,960
Government lending revenue			1,207				—			—			—				1,207
Government loan servicing revenue(1)			(1,256	)			—			6,559			—				5,303
Loan servicing rights			292				—			—			—				292
Other income			618				30			—			147				795
Total noninterest income			1,548				4,425			6,559			1,829				14,361
Noninterest expenses
Salaries and employee benefits			12,048				3,792			2,625			1,602				20,067
Occupancy and equipment			2,315				1,047			391			189				3,942
Professional fees			2,233				1,228			271			393				4,125
Data processing			452				6,983			67			49				7,551
Advertising			765				598			297			156				1,816
Loan processing			927				271			9			268				1,475
Merger-related expenses			—				—			—			—				—
Operational and other card fraud related losses			72				618			—			—				690
Regulatory assessment expenses			583				214			64			64				925
Other operating			1,277				639			558			121				2,595
Total noninterest expenses			20,672				15,390			4,282			2,842				43,186
Net income (loss) before taxes		$	16,061			$	1,013		$	2,277		$	(897	)		$	18,454
Total assets		$	3,689,273			$	143,716		$	27,818		$	29,131			$	3,889,938

_______________

⁽¹⁾  Gross government loan servicing revenue totaled $6.6 million, including $1.3 million of servicing fees earned from the Commercial Bank by Windsor™, for the three months ended June 30, 2026.

Segments
For the three months ended September 30, 2025
(in thousands)		Commercial Bank				OpenSky™				Windsor Advantage™				CBHL				Consolidated
Interest income(2)		$	49,035			$	15,628			$	—			$	228			$	64,891
Interest expense			12,768				—				—				103				12,871
Net interest income			36,267				15,628				—				125				52,020
Provision for credit losses			1,852				2,798				—				—				4,650
Provision for credit losses on unfunded commitments			217				—				—				—				217
Net interest income after provision			34,198				12,830				—				125				47,153
Noninterest income
Service charges on deposits			425				—				—				—				425
Credit card fees			—				4,509				—				—				4,509
Mortgage banking revenue			315				—				—				1,612				1,927
Government lending revenue			14				—				—				—				14
Government loan servicing revenue(1)			(1,074	)			—				5,339				—				4,265
Loan servicing rights			368				—				—				—				368
Other income (loss)			(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
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™, for the three months ended September 30, 2025.
⁽²⁾   Interest income of $49.0 million for the Commercial Bank includes the $1.3 million Interest Income Adjustment.

Segments
For the nine months ended September 30, 2026
(in thousands)		Commercial Bank				OpenSky™			Windsor Advantage™			CBHL				Consolidated
Interest income		$	162,024			$	47,573		$	—		$	624			$	210,221
Interest expense			56,494				—			—			322				56,816
Net interest income			105,530				47,573			—			302				153,405
Provision for credit losses			745				10,757			—			—				11,502
Provision for credit losses on unfunded commitments			216				—			—			—				216
Net interest income after provision			104,569				36,816			—			302				141,687
Noninterest income
Service charges on deposits			1,230				—			—			—				1,230
Credit card fees			—				13,607			—			—				13,607
Mortgage banking revenue			1,184				—			—			4,181				5,365
Government lending revenue			3,604				—			—			—				3,604
Government loan servicing revenue(1)			(4,183	)			—			18,904			—				14,721
Loan servicing rights			1,312				—			—			—				1,312
Other income			2,202				73			5			654				2,934
Total noninterest income			5,349				13,680			18,909			4,835				42,773
Noninterest expenses
Salaries and employee benefits			36,017				11,998			8,384			5,101				61,500
Occupancy and equipment			6,626				3,229			1,219			574				11,648
Professional fees			7,170				4,825			836			1,178				14,009
Data processing			1,439				21,242			188			157				23,026
Advertising			2,666				1,333			480			369				4,848
Loan processing			2,269				323			32			777				3,401
Merger-related expenses			1,577				—			—			—				1,577
Operational and other card fraud related losses			210				2,055			23			22				2,310
Regulatory assessment expenses			1,744				661			200			191				2,796
Other operating			3,749				1,616			1,726			383				7,474
Total noninterest expenses			63,467				47,282			13,088			8,752				132,589
Net income (loss) before taxes		$	46,451			$	3,214		$	5,821		$	(3,615	)		$	51,871
Total assets		$	3,607,589			$	144,462		$	28,508		$	21,994			$	3,802,553

_______________
⁽¹⁾  Gross government loan servicing revenue totaled $18.9 million, including $4.2 million of servicing fees earned from the Commercial Bank by Windsor™, for the nine months ended September 30, 2026.

Segments
For the nine months ended September 30, 2025
(in thousands)		Commercial Bank				OpenSky™			Windsor Advantage™			CBHL				Consolidated
Interest income		$	147,128			$	44,566		$	—		$	543			$	192,237
Interest expense			46,273				—			—			251				46,524
Net interest income			100,855				44,566			—			292				145,713
Provision for credit losses			3,457				7,520			—			—				10,977
Provision for credit losses on unfunded commitments			217				—			—			—				217
Net interest income after provision			97,181				37,046			—			292				134,519
Noninterest income
Service charges on deposits			945				—			—			—				945
Credit card fees			—				12,529			—			—				12,529
Mortgage banking revenue			1,043				—			—			4,469				5,512
Government lending revenue			4,222				—			—			—				4,222
Government loan servicing revenue(1)			(3,164	)			—			14,641			—				11,477
Loan servicing rights			250				—			—			—				250
Other income			1,215				3			—			570				1,788
Total noninterest income			4,511				12,532			14,641			5,039				36,723
Noninterest expenses
Salaries and employee benefits			32,275				10,019			7,370			4,591				54,255
Occupancy and equipment			5,115				1,693			1,495			451				8,754
Professional fees			3,802				1,714			389			760				6,665
Data processing			1,244				20,633			283			126				22,286
Advertising			2,207				2,177			215			265				4,864
Loan processing			1,867				58			128			783				2,836
Merger-related expenses			3,361				—			—			—				3,361
Operational and other card fraud related losses			131				2,628			—			—				2,759
Regulatory assessment expenses			2,513				—			—			—				2,513
Other operating			4,719				1,441			1,222			304				7,686
Total noninterest expenses			57,234				40,363			11,102			7,280				115,979
Net income (loss) before taxes		$	44,458			$	9,215		$	3,539		$	(1,949	)		$	55,263
Total assets		$	3,213,222			$	134,422		$	21,743		$	20,055			$	3,389,442

_______________
⁽¹⁾  Gross government loan servicing revenue totaled $14.6 million, including $3.2 million of servicing fees earned from the Commercial Bank by Windsor™, for the nine months ended September 30, 2025.

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited
		Quarter Ended
(in thousands, except per share data)		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Earnings:
Net income		$	13,122			$	14,250			$	12,018			$	15,037			$	15,065
Earnings per common share, diluted			0.80				0.87				0.73				0.91				0.89
Net interest margin			5.81	%			5.64	%			5.71	%			5.94	%			6.36	%
Core net interest margin(2)			4.18	%			4.04	%			4.15	%			4.19	%			4.66	%
Return on average assets(1)			1.38	%			1.52	%			1.33	%			1.71	%			1.77	%
Return on average equity(1)			12.16	%			13.80	%			12.03	%			15.23	%			15.57	%
Efficiency ratio			67.12	%			66.14	%			69.59	%			62.32	%			60.79	%
Balance Sheet:
Total portfolio loans receivable, net deferred fees		$	3,114,264			$	3,085,950			$	3,026,431			$	2,959,457			$	2,821,983
Total deposits			3,319,135				3,371,103				3,292,047				3,093,200				2,912,053
Total assets			3,802,553				3,889,938				3,808,467				3,606,207				3,389,442
Total stockholders’ equity			431,450				422,205				408,859				401,757				394,770
Total average portfolio loans receivable, net deferred fees			3,135,648				3,058,476				3,008,187				2,902,033				2,789,815
Total average deposits			3,265,136				3,243,978				3,130,392				2,992,784				2,917,067
Portfolio loans-to-deposit ratio (period-end balances)			93.83	%			91.54	%			91.93	%			95.68	%			96.91	%
Portfolio loans-to-deposit ratio (average balances)			96.03	%			94.28	%			96.10	%			96.97	%			95.64	%
Asset Quality Ratios:
Nonperforming assets to total assets			1.59	%			1.56	%			1.56	%			1.62	%			1.54	%
Nonperforming loans to total loans			1.82	%			1.85	%			1.83	%			1.84	%			1.85	%
Net charge-offs to average portfolio loans(1)			0.49	%			0.50	%			0.40	%			0.32	%			0.35	%
Allowance for credit losses to total loans			1.78	%			1.76	%			1.81	%			1.85	%			1.88	%
Allowance for credit losses to non-performing loans			97.94	%			95.51	%			98.67	%			100.44	%			101.53	%
Bank Capital Ratios:
Total risk based capital ratio(3)			12.52	%			12.60	%			12.52	%			12.60	%			12.95	%
Tier-1 risk based capital ratio(3)			11.26	%			11.34	%			11.26	%			11.34	%			11.69	%
Leverage ratio(3)			9.15	%			8.97	%			9.00	%			9.24	%			9.34	%
Common Equity Tier-1 capital ratio(3)			11.26	%			11.34	%			11.26	%			11.34	%			11.69	%
Tangible common equity(3)			9.34	%			9.06	%			8.40	%			8.75	%			9.06	%
Holding Company Capital Ratios:
Total risk based capital ratio(3)			14.58	%			14.49	%			14.25	%			14.31	%			15.25	%
Tier-1 risk based capital ratio(3)			13.32	%			13.23	%			12.99	%			13.05	%			13.62	%
Leverage ratio(3)			10.84	%			10.51	%			10.48	%			10.71	%			10.98	%
Common Equity Tier-1 capital ratio(3)			13.25	%			13.16	%			12.92	%			12.98	%			13.54	%
Tangible common equity(3)			11.02	%			10.54	%			9.73	%			10.07	%			10.60	%

_______________
⁽¹⁾   Annualized.
⁽²⁾   Refer to Appendix for reconciliation of non-GAAP measures.
⁽³⁾   Estimated ratio at September 30, 2026.

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited (continued)
		Quarter Ended
(in thousands, except per share data)		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Composition of Loans:
Commercial real estate, non owner-occupied		$	545,612			$	561,805			$	522,498			$	533,141			$	509,878
Commercial real estate, owner-occupied			419,186				424,109				428,632				418,701				442,827
Residential real estate			784,220				797,745				795,505				765,808				740,060
Construction real estate			380,688				370,710				365,706				359,566				344,290
Commercial and industrial			774,297				731,575				730,576				698,289				619,148
Lender finance			55,601				50,020				43,775				41,421				31,883
Business equity lines of credit			4,355				4,930				4,170				3,818				2,931
Credit card, net of reserve(4)			149,184				145,266				134,789				142,397				136,483
Other consumer loans			5,539				3,772				4,779				1,930				2,010
Portfolio loans receivable		$	3,118,682			$	3,089,932			$	3,030,430			$	2,965,071			$	2,829,510
Deferred origination fees, net			(4,418	)			(3,982	)			(3,999	)			(5,614	)			(7,527	)
Portfolio loans receivable, net		$	3,114,264			$	3,085,950			$	3,026,431			$	2,959,457			$	2,821,983
Composition of Deposits:
Noninterest-bearing		$	844,536			$	897,363			$	871,677			$	852,741			$	857,543
Interest-bearing demand			323,139				391,544				341,723				257,233				275,767
Savings			30,538				23,077				21,471				11,679				12,835
Money markets			1,379,580				1,390,778				1,276,034				1,105,183				989,159
Customer time deposits			410,479				437,358				478,085				489,687				539,207
Brokered time deposits			330,863				230,983				303,057				376,677				237,542
Total deposits		$	3,319,135			$	3,371,103			$	3,292,047			$	3,093,200			$	2,912,053
Capital Bank Home Loan Metrics:
Origination of loans held for sale		$	75,348			$	106,885			$	72,933			$	107,283			$	80,651
Mortgage loans sold			47,911				87,059				52,423				82,998				66,409
Gain on sale of loans			1,404				2,362				1,496				2,145				1,698
Purchase volume as a % of originations			90.50	%			86.14	%			73.15	%			72.77	%			92.32	%
Gain on sale as a % of loans sold(5)			2.93	%			2.71	%			2.85	%			2.58	%			2.56	%
Mortgage commissions		$	591			$	947			$	594			$	899			$	656
OpenSky™Portfolio Metrics:
Open customer accounts			575,841				588,594				588,190				585,492				587,641
Secured credit card loans, gross		$	93,672			$	96,026			$	90,021			$	97,313			$	98,793
Unsecured credit card loans, gross			57,589				51,234				46,574				47,131				39,576
Noninterest secured credit card deposits			162,354				166,174				165,506				163,184				166,874

_______________

⁽⁴⁾   Credit card loans are presented net of reserve for interest and fees.
⁽⁵⁾   Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.

Appendix
Reconciliation of Non-GAAP Measures

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

Core Earnings Metrics	Quarter Ended
(in thousands, except per share data)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Net Income	$	13,122			$	14,250			$	12,018			$	15,037			$	15,065
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax		—				—				—				—				(3,489	)
Add: Merger-Related Expenses, Net of Tax		1,577				—				—				—				575
Core Net Income	$	14,699			$	14,250			$	12,018			$	15,037			$	12,151
Weighted Average Common Shares – Diluted		16,482				16,373				16,441				16,493				16,844
Earnings per Share – Diluted	$	0.80			$	0.87			$	0.73			$	0.91			$	0.89
Core Earnings per Share – Diluted	$	0.89			$	0.87			$	0.73			$	0.91			$	0.72
Average Assets	$	3,765,041			$	3,761,511			$	3,651,812			$	3,498,540			$	3,378,296
Return on Average Assets(1)		1.38	%			1.52	%			1.33	%			1.71	%			1.77	%
Core Return on Average Assets(1)		1.55	%			1.52	%			1.33	%			1.71	%			1.43	%
Average Equity	$	427,950			$	414,044			$	405,302			$	391,750			$	383,922
Return on Average Equity(1)		12.16	%			13.80	%			12.03	%			15.23	%			15.57	%
Core Return on Average Equity(1)		13.63	%			13.80	%			12.03	%			15.23	%			12.56	%
Net Interest Income	$	53,078			$	50,929			$	49,398			$	50,279			$	52,020
Noninterest Income		15,039				14,361				13,373				12,464				11,068
Total Revenue	$	68,117			$	65,290			$	62,771			$	62,743			$	63,088
Noninterest Expense		45,722				43,186				43,681				39,103				38,354
Efficiency Ratio(2)		67.1	%			66.1	%			69.6	%			62.3	%			60.8	%
Net Interest Income	$	53,078			$	50,929			$	49,398			$	50,279			$	52,020
Deduct: Income from the Call of Brokered Time Deposits		—				—				—				—				4,618
Core Net Interest Income (a)	$	53,078			$	50,929			$	49,398			$	50,279			$	47,402
Noninterest Income (b)		15,039				14,361				13,373				12,464				11,068
Core Revenue (a) + (b)	$	68,117			$	65,290			$	62,771			$	62,743			$	58,470
Noninterest Expense	$	45,722			$	43,186			$	43,681			$	39,103			$	38,354
Less: Merger-Related Expenses		1,577				—				—				—				697
Core Noninterest Expense	$	44,145			$	43,186			$	43,681			$	39,103			$	37,657
Core Efficiency Ratio(2)		64.8	%			66.1	%			69.6	%			62.3	%			64.4	%

_______________

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

Core Earnings Metrics	Nine Months Ended
(in thousands, except per share data)	September 30, 2026				September 30, 2025
Net Income	$	39,390			$	42,133
Deduct: Income from the Call of Brokered Time Deposits, Net of Tax		—				(3,489	)
Add: Merger-Related Expenses, Net of Tax		1,577				2,609
Core Net Income	$	40,967			$	41,253
Weighted Average Common Shares – Diluted		16,437				16,850
Earnings per Share – Diluted	$	2.40			$	2.50
Core Earnings per Share – Diluted	$	2.49			$	2.45
Average Assets	$	3,726,551			$	3,298,170
Return on Average Assets(1)		1.41	%			1.71	%
Core Return on Average Assets(1)		1.47	%			1.67	%
Average Equity	$	415,848			$	373,020
Return on Average Equity(1)		12.66	%			15.10	%
Core Return on Average Equity(1)		13.17	%			14.79	%
Net Interest Income	$	153,405			$	145,713
Noninterest Income		42,773				36,723
Total Revenue	$	196,178			$	182,436
Noninterest Expense		132,589				115,979
Efficiency Ratio(2)		67.6	%			63.6	%
Net Interest Income	$	153,405			$	145,713
Deduct: Income from the Call of Brokered Time Deposits		—				4,618
Core Net Interest Income (a)	$	153,405			$	141,095
Noninterest Income (b)		42,773				36,723
Core Revenue (a) + (b)	$	196,178			$	177,818
Noninterest Expense	$	132,589			$	115,979
Less: Merger-Related Expenses		1,577				3,361
Core Noninterest Expense	$	131,012			$	112,618
Core Efficiency Ratio(2)		66.8	%			63.3	%

_______________

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

Core Net Interest Margin	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Net Interest Income	$	53,078			$	50,929			$	49,398			$	50,279			$	52,020
Less: Credit Card Loan Income		16,405				15,808				14,882				16,196				15,386
Net Interest Income Excluding Credit Card		36,673				35,121				34,516				34,083				36,634
Average Interest Earning Assets		3,625,039				3,619,887				3,509,115				3,360,576				3,246,653
Less: Average Credit Card Loans		143,858				137,052				133,712				133,858				129,100
Average Core Interest Earning Assets	$	3,481,181			$	3,482,835			$	3,375,403			$	3,226,718			$	3,117,553
Core Net Interest Margin		4.18	%			4.04	%			4.15	%			4.19	%			4.66	%

Core Net Interest Margin	Nine Months Ended
(in thousands)	September 30, 2026				September 30, 2025
Net Interest Income	$	153,405			$	145,713
Less: Credit Card Loan Income		47,095				43,651
Core Net Interest Income		106,310				102,062
Average Interest Earning Assets		3,585,117				3,166,588
Less: Average Credit Card Loans		138,244				123,117
Average Core Interest Earning Assets	$	3,446,873			$	3,043,471
Core Net Interest Margin		4.12	%			4.48	%

Core Loan Yield	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Portfolio Loans Receivable Interest Income	$	67,942			$	65,110			$	64,009			$	64,670			$	60,610
Less: Credit Card Loan Income		16,405				15,808				14,882				16,196				15,386
Core Portfolio Loans Receivable Interest Income	$	51,537			$	49,302			$	49,127			$	48,474			$	45,224
Average Portfolio Loans Receivable		3,135,648				3,058,476				3,008,187				2,902,033				2,789,815
Less: Average Credit Card Loans		143,858				137,052				133,712				133,858				129,100
Total Core Average Portfolio Loans Receivable	$	2,991,790			$	2,921,424			$	2,874,475			$	2,768,175			$	2,660,715
Core Portfolio Loans Receivable Yield		6.83	%			6.77	%			6.93	%			6.95	%			6.74	%

Core Loan Yield	Nine Months Ended
(in thousands)	September 30, 2026				September 30, 2025
Portfolio Loans Receivable Interest Income	$	197,062			$	179,710
Less: Credit Card Loan Income		47,095				43,651
Core Portfolio Loans Receivable Interest Income	$	149,967			$	136,059
Average Portfolio Loans Receivable		3,067,904				2,719,834
Less: Average Credit Card Loans		138,244				123,117
Total Core Average Portfolio Loans Receivable	$	2,929,660			$	2,596,717
Core Portfolio Loans Receivable Yield		6.84	%			7.01	%

Pre-tax, Pre-Provision Net Revenue (“PPNR”)	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026			March 31, 2026			December 31, 2025				September 30, 2025
Net Income	$	13,122			$	14,250		$	12,018		$	15,037			$	15,065
Add: Income Tax Expense		4,424				4,204			3,853			4,644				4,802
Add: Provision for Credit Losses		4,903				3,585			3,014			3,988				4,650
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		(54	)			65			205			(29	)			217
Pre-tax, Pre-Provision Net Revenue (“PPNR”)	$	22,395			$	22,104		$	19,090		$	23,640			$	24,734

Pre-tax, Pre-Provision Net Revenue (“PPNR”)	Nine Months Ended
(in thousands)	September 30, 2026			September 30, 2025
Net Income	$	39,390		$	42,133
Add: Income Tax Expense		12,481			13,130
Add: Provision for Credit Losses		11,502			10,977
Add: Provision for Credit Losses on Unfunded Commitments		216			217
Pre-tax, Pre-Provision Net Revenue (“PPNR”)	$	63,589		$	66,457

Core PPNR	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026			March 31, 2026			December 31, 2025				September 30, 2025
Net Income	$	13,122			$	14,250		$	12,018		$	15,037			$	15,065
Add: Income Tax Expense		4,424				4,204			3,853			4,644				4,802
Add: Provision for Credit Losses		4,903				3,585			3,014			3,988				4,650
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		(54	)			65			205			(29	)			217
Deduct: Income from the Call of Brokered Time Deposits		—				—			—			—				(4,618	)
Add: Merger-Related Expenses		1,577				—			—			—				697
Core PPNR	$	23,972			$	22,104		$	19,090		$	23,640			$	20,813

Core PPNR	Nine Months Ended
(in thousands)	September 30, 2026			September 30, 2025
Net Income	$	39,390		$	42,133
Add: Income Tax Expense		12,481			13,130
Add: Provision for Credit Losses		11,502			10,977
Add: Provision for Credit Losses on Unfunded Commitments		216			217
Deduct: Income from the Call of Brokered Time Deposits		—			(4,618	)
Add: Merger-Related Expenses		1,577			3,361
Core PPNR	$	65,166		$	65,200

Allowance for Credit Losses to Total Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Allowance for Credit Losses	$	55,493			$	54,431			$	54,680			$	54,660			$	53,045
Total Portfolio Loans		3,114,264				3,085,950				3,026,431				2,959,457				2,821,983
Allowance for Credit Losses to Total Portfolio Loans		1.78	%			1.76	%			1.81	%			1.85	%			1.88	%

Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Allowance for Credit Losses	$	55,493			$	54,431			$	54,680			$	54,660			$	53,045
Less: Credit Card Allowance for Credit Losses		9,777				8,904				7,802				8,232				7,413
Commercial Bank Allowance for Credit Losses	$	45,716			$	45,527			$	46,878			$	46,428			$	45,632
Total Portfolio Loans		3,114,264				3,085,950				3,026,431				2,959,457				2,821,983
Less: Gross Credit Card Loans		144,258				141,446				131,887				137,905				130,897
Commercial Bank Portfolio Loans	$	2,970,006			$	2,944,504			$	2,894,544			$	2,821,552			$	2,691,086
Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans		1.54	%			1.55	%			1.62	%			1.65	%			1.70	%

Nonperforming Assets to Total Assets	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Total Nonperforming Assets	$	60,518			$	60,843			$	59,273			$	58,276			$	52,247
Total Assets		3,802,553				3,889,938				3,808,467				3,606,207				3,389,442
Nonperforming Assets to Total Assets		1.59	%			1.56	%			1.56	%			1.62	%			1.54	%

Nonperforming Loans to Total Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Total Nonperforming Loans	$	56,662			$	56,987			$	55,417			$	54,421			$	52,247
Total Portfolio Loans		3,114,264				3,085,950				3,026,431				2,959,457				2,821,983
Nonperforming Loans to Total Portfolio Loans		1.82	%			1.85	%			1.83	%			1.84	%			1.85	%

Net Charge-Offs to Average Portfolio Loans	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Total Net Charge-Offs	$	3,841			$	3,834			$	2,994			$	2,373			$	2,476
Total Average Portfolio Loans		3,135,648				3,058,476				3,008,187				2,902,033				2,789,815
Net Charge-Offs to Average Portfolio Loans, Annualized		0.49	%			0.50	%			0.40	%			0.32	%			0.35	%

Net Charge-offs to Average Portfolio Loans	Nine Months Ended
(in thousands)	September 30, 2026				September 30, 2025
Total Net Charge-Offs	$	10,669			$	10,008
Total Average Portfolio Loans		3,067,904				2,719,834
Net Charge-Offs to Average Portfolio Loans, Annualized		0.46	%			0.49	%

Tangible Book Value per Share	Quarter Ended
(in thousands, except share and per share data)	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
Total Stockholders’ Equity	$	431,450		$	422,205		$	408,859		$	401,757		$	394,770
Less: Intangible Assets		39,958			40,219			40,480			40,740			41,002
Tangible Common Equity	$	391,492		$	381,986		$	368,379		$	361,017		$	353,768
Period End Shares Outstanding		16,328,648			16,289,288			16,286,480			16,373,288			16,589,241
Tangible Book Value per Share	$	23.98		$	23.45		$	22.62		$	22.05		$	21.33

Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Net Income	$	13,122			$	14,250			$	12,018			$	15,037			$	15,065
Add: Intangible Amortization, Net of Tax		195				201				197				200				199
Net Tangible Income	$	13,317			$	14,451			$	12,215			$	15,237			$	15,264
Average Equity		427,950				414,044				405,302				391,750				383,922
Less: Average Intangible Assets		40,116				40,377				40,628				40,884				37,706
Net Average Tangible Common Equity	$	387,834			$	373,667			$	364,674			$	350,866			$	346,216
Return on Average Equity		12.16	%			13.80	%			12.03	%			15.23	%			15.57	%
Return on Average Tangible Common Equity		13.62	%			15.51	%			13.58	%			17.23	%			17.49	%

Return on Average Tangible Common Equity	Nine Months Ended
(in thousands)	September 30, 2026				September 30, 2025
Net Income	$	39,390			$	42,133
Add: Intangible Amortization, Net of Tax		594				599
Net Tangible Income	$	39,984			$	42,732
Average Equity		415,848				373,020
Less: Average Intangible Assets		40,372				38,048
Net Average Tangible Common Equity	$	375,476			$	334,972
Return on Average Equity		12.66	%			15.10	%
Return on Average Tangible Common Equity		14.24	%			17.06	%

Core Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Core Net Income	$	14,699			$	14,250			$	12,018			$	15,037			$	12,151
Add: Intangible Amortization, Net of Tax		195				201				197				200				199
Core Net Tangible Income	$	14,894			$	14,451			$	12,215			$	15,237			$	12,350
Core Return on Average Tangible Common Equity		15.24	%			15.51	%			13.58	%			17.23	%			14.15	%

Core Return on Average Tangible Common Equity	Nine Months Ended
(in thousands)	September 30, 2026				September 30, 2025
Core Net Income	$	40,967			$	41,253
Add: Intangible Amortization, Net of Tax		594				599
Core Net Tangible Income	$	41,561			$	41,852
Core Return on Average Tangible Common Equity		14.80	%			16.70	%

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., and Baltimore, Maryland metropolitan 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 $3.8 billion at September 30, 2026 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 that 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 wars in Iran and 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 Company’s ability to remediate the material weakness in the Company’s internal control over financial reporting; 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™; the possibility that the Company’s pending merger with Peoples does not close when expected or at all because required regulatory approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the possibility that the anticipated benefits and cost savings from the merger with Peoples may not be fully realized or may take longer to realize than expected; disruptions to the Company’s business as a result of the announcement and pendency of the merger with Peoples; the possibility that the merger with Peoples may be more expensive to complete than anticipated, including as a result of unexpected factors or events; and our ability to manage the risks involved in the foregoing.

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

WEBSITE: www.CapitalBankMD.com 

---