Capital Bancorp (CBNK) investor relations material

Executive summary

• Net income for Q1 2026 was $12.0 million, down 13.7% year-over-year and 20.1% from 4Q25, primarily due to higher noninterest expenses and increased provision for credit losses, despite strong loan and deposit growth and continued investment in strategic initiatives.

• Annualized loan growth reached 9.2% and deposit growth 26.1%, with customer deposits up 40.7% and brokered deposits down 19.5%.

• Tangible book value per share increased 10.5% year-over-year to $22.62, reflecting continued capital strength.

• Fee revenue rose 29.6% year-over-year, driven by SBA loan sales and increased USDA volume.

• Advanced investments in OpenSky unsecured card, partnerships, technology, data infrastructure, and back-office support.

Financial highlights

• Total assets grew to $3.81 billion, up 13.7% year-over-year and 5.6% from December 2025.

• Portfolio loans reached $3.03 billion, up 13.0% year-over-year and 2.3% from December 2025.

• Deposits totaled $3.29 billion, up 13.9% year-over-year.

• Net interest income was $49.4 million, up 7.3% year-over-year but down 1.8% from 4Q25; NIM was 5.71%, with core NIM at 4.15%.

• Noninterest expense rose 14.8% year-over-year to $43.7 million, mainly from higher personnel, technology, and professional fees.

• Diluted EPS was $0.73, down 11.2% year-over-year and 19.8% sequentially.

• Core efficiency ratio increased to 69.6% from 62.8% a year ago.

Outlook and guidance

• Management expects continued balance sheet growth, supported by strong customer deposit inflows and ongoing investments in technology and product innovation.

• Focus remains on scaling OpenSky and related unsecured card products, with vigilance for credit quality and market disruptions.