Quarter Ended
% Change(Annualized)
(in millions, except per share data)
1Q26
4Q25
1Q25
1Q26 vs 4Q25
1Q26 vs 1Q25
Balance Sheet Summary
Gross Loans(1)
$
3,026
$
2,959
$
2,678
9.2
%
13.0
%
Total Deposits
3,292
3,093
2,891
26.1
%
13.9
%
Customer Deposits(2)
2,989
2,717
2,584
40.7
%
15.7
%
Tangible Book Value per share(3)
$
22.62
$
22.05
$
19.81
10.5
%
14.2
%
GAAP
Core(3)
Quarter Ended
Change
Quarter Ended
Change
(in millions, except per share data)
1Q26
4Q25
1Q25
1Q26 vs 4Q25
1Q26 vs 1Q25
1Q26
4Q25
1Q25
1Q26 vs 4Q25
1Q26 vs 1Q25
Earnings Summary
Net Income
$
12.0
$
15.0
$
13.9
(20.0
)%
(13.7
)%
$
12.0
$
15.0
$
14.9
(20.0
)%
(19.5
)%
Earnings per share - diluted
$
0.73
$
0.91
$
0.82
(19.8
)%
(11.2
)%
$
0.73
$
0.91
$
0.88
(19.8
)%
(16.9
)%
ROA
1.33
%
1.71
%
1.75
%
(38) bps
(42) bps
1.33
%
1.71
%
1.87
%
(38) bps
(54) bps
ROTCE(3)
13.58
%
17.23
%
17.57
%
(365) bps
(399) bps
13.58
%
17.23
%
18.77
%
(365) bps
(519) bps
Including Card
Excluding Card
NIM
5.71
%
5.94
%
6.05
%
(23) bps
(34) bps
4.15
%
4.19
%
4.36
%
(4) bps
(21) bps
(1) Gross loans represent portfolio loans receivable, net of deferred fees and costs.(2) Customer deposits represents 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 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.
"We are pleased that the sustained organic growth at the Commercial Bank permits us to accommodate an increase in noninterest expenses, while, at the same time, providing our stockholders with reasonable returns and a steadily growing TBV," said Steven J. Schwartz, Chairman of the Company. "We expect these expenditures to enable technology advancements in customer experience and back office efficiency, and to support the introduction by OpenSky™ of new products. We remain alert to the possibility that the markets in which we operate remain vulnerable to disruption from geopolitical and other developments, but have not yet seen any macroeconomic signs of credit deterioration in our markets."
First Quarter 2026 Highlights
Delivered strong balance sheet growth, with gross loans increasing 9.2% (annualized) from 4Q 2025, driven by continued momentum in the Commercial Bank
Generated robust deposit growth, with total deposits increasing 26.1% (annualized) from 4Q 2025. Excluding $107.8 million of deposit growth tied to a single customer relationship, total deposits grew 11.9% annualized while reducing brokered deposits by 19.5%
Achieved strong customer deposit growth, which increased 40.7% (annualized) from 4Q 2025, or 27.0% annualized excluding the relationship noted above
Continued tangible book value compounding, with tangible book value(3) per share increasing 10.5% annualized from 4Q 2025
Expanded fee revenue, which increased 29.6% (annualized), primarily driven by SBA loan sales generated by a new team and increased USDA volume; fee revenue represented 21.3% of total revenue
Advanced strategic investments in unsecured card, card partnerships, data infrastructure, and back-office support to enhance scalability and long-term growth
Returned capital to shareholders, repurchasing $3.5 million of common stock under the Company's share repurchase program
The Company also declared a cash dividend on its common stock of $0.12 per share. The dividend is payable on May 27, 2026 to shareholders of record on May 11, 2026.
"We continue to demonstrate our ability to grow across the Company, highlighted by the increase in customer deposits, which positions us for continued balance sheet growth." said Ed Barry, CEO of the Company. "Our investment program is underway across the Commercial and OpenSky™ division, including technology and data initiatives that will improve our competitive position."
Consolidated financial performance
Net income of $12.0 million decreased $3.0 million compared to 4Q 2025, and earnings per share - diluted of $0.73 decreased $0.18 per share from 4Q 2025. Net income decreased $1.9 million, or 13.7%, from $13.9 million, or $0.82 per diluted share, for 1Q 2025. 1Q 2026 Core net income(1) of $12.0 million, or $0.73 per diluted share, decreased $3.0 million, or 20.1%, from 4Q 2025 Core net income of $15.0 million, or $0.91 per diluted share. 1Q 2026 Core net income decreased $2.9 million, or 19.3%, from 1Q 2025 core net income of $14.9 million, or $0.88 per diluted share.
Quarterly net interest income:
Net interest income of $49.4 million decreased $0.9 million, or 1.8% (not annualized), compared to 4Q 2025, and increased $3.4 million, or 7.3%, year-over-year.
Interest income of $68.0 million decreased $0.7 million, or 1.0% (not annualized), compared to 4Q 2025, and increased $5.2 million, or 8.3%, year-over-year. The decrease from 4Q 2025 was primarily driven by a $1.3 million decrease from OpenSky™ due to changes in the rate environment, partially offset by a $0.7 million increase from the Commercial Bank driven by loan growth. The increase year-over-year was primarily driven by $4.6 million from the Commercial Bank due to strong balance sheet growth, and $0.6 million from OpenSky™ due to the growth from the unsecured loan product.
Interest income included $0.3 million from net purchase accounting accretion ("PAA") in 1Q 2026, compared to $0.1 million in 4Q 2025 and $0.3 million in net PAA in 1Q 2025.
Interest expense of $18.6 million increased $0.2 million, or 1.2% (not annualized), compared to 4Q 2025, and increased $1.9 million, or 11.1%, year-over-year. The increase of $0.2 million compared to 4Q 2025, was primarily driven by a shift in deposit mix. The increase of $1.9 million year-over-year was driven by $0.9 million of lower PAA, $0.7 million from a shift in deposit mix and $0.3 of million higher borrowing costs.
Interest expense included a $0.1 million benefit from net PAA in 1Q 2026, compared to a $0.1 million benefit in 4Q 2025. There was a $1.1 million benefit from net PAA in 1Q 2025.
Quarterly provision:
The 1Q 2026 provision for credit losses was $3.0 million, a decrease of $1.0 million from 4Q 2025. Net charge-offs totaled $3.0 million, or 0.40% of portfolio loans (annualized), up from $2.4 million or 0.32% of portfolio loans (annualized), in 4Q 2025.
Net charge-offs in the quarter include $3.1 million from OpenSky™ loans and a net recovery of $0.1 million from Commercial Bank loans. Net charge-offs for the Commercial Bank decreased $2.0 million from 4Q 2025 primarily driven by $1.9 million of legacy Commercial Bank loans that were charged off during 4Q 2025. OpenSky™ net charge-offs amounted to $0.5 million in 4Q 2025 compared to a net charge-offs of $3.1 million in 1Q 2026. During 4Q 2025, a $2.0 million credit to the allowance for credit losses was made to reflect recoveries resulting from the sale of $69.5 million of charged-off OpenSky™ credit card receivables.
At March 31, 2026, the ACL Coverage Ratio was 1.81%, down 4 bps from December 31, 2025, and flat year-over-year.
Quarterly fee revenue:
Fee Revenue of $13.4 million increased $0.9 million, compared to 4Q 2025 and increased $0.8 million year-over-year. The increase of $0.9 million during 1Q 2026 was primarily from a $0.9 million increase in government lending revenue with other offsetting activity. Year-over-year fee revenue increased $0.8 million primarily due to a $0.8 million increase from government loan servicing and packaging revenue (Windsor™) with other offsetting activity. Fee revenue mix1 was 21.3% of total revenue for 1Q 2026, compared to 19.9% during 4Q 2025, and 21.4% during 1Q 2025.
_____________________1 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.
Quarterly noninterest expense:
Noninterest expense of $43.7 million increased $4.6 million compared to 4Q 2025 and increased $5.6 million compared to 1Q 2025. Core noninterest expense(1) of $43.7 million increased $4.6 million compared to 4Q 2025 and increased $6.9 million compared to 1Q 2025. Core comparisons include:
The increase of $4.6 million quarter-over-quarter was primarily driven by the following:
$2.4 million from personnel expenses, driven by planned investment and expansion in headcount;
$0.9 million from occupancy & equipment, driven by an increase in software contracts, acceleration of depreciation of capitalized assets related to OpenSky™ technology, and an increase in lease expenses;
$0.7 million from professional fees, driven by planned investment in OpenSky™ initiatives and other professional fees;
$0.3 million from data processing driven by OpenSky™ and other core processing costs; and
$0.2 million from loan processing, driven by loan expenses associated with our government guaranteed lending portfolio;
Year-over-year expense growth of $6.9 million was driven by professional fees associated with investments in shared services areas and OpenSky™, personnel expense due to headcount growth, growth in data processing costs from OpenSky™ and core processing for the Commercial Bank, and an increase in loan processing costs and loan expenses associated with our government guaranteed lending portfolio.
Quarterly income taxes:
Income tax expense of $3.9 million, or 24.3% of pre-tax income for 1Q 2026, decreased $0.8 million from $4.6 million, or 23.6% of pre-tax income for 4Q 2025. The effective income tax rate change quarter-over-quarter was primarily due to certain one-time tax benefits recognized during 4Q 2025.
Total assets:
Total assets of $3.8 billion at March 31, 2026 increased $202.3 million, or 22.7% (annualized) from December 31, 2025. Total assets growth year-over-year was $458.7 million, or 13.7%. The growth quarter-over-quarter, and year-over-year, was primarily driven by increases in portfolio loans, and cash balances.
Gross Loans:
Gross Loans of $3.0 billion at March 31, 2026 increased $67.0 million, or 9.2% (annualized), from December 31, 2025 and increased $348.0 million, or 13.0%, year-over-year.
Compared to December 31, 2025, growth was primarily driven by $32.3 million from commercial and industrial ("C&I"), $29.7 million from residential real estate, and $6.1 million from construction real estate. C&I contributed 48.2% of total loan growth in the quarter.
C&l loans, plus owner-occupied CRE loans, totaled 38.3% of total portfolio loans at March 31, 2026, 37.7% for the prior quarter, and 37.9% at March 31, 2025.
_____________________1 Fee revenue mix equals fee revenue divided by the sum of fee revenue and net interest income before provision for credit losses
Consolidated financial performance (Continued)
Deposits:
Total deposits of $3.3 billion at March 31, 2026 increased $198.8 million, or 26.1% (annualized), from December 31, 2025, and increased $400.7 million, or 13.9% from March 31, 2025.
When excluding the decrease in brokered time deposits of $73.6 million, customer deposits increased $272.5 million or 40.7% (annualized), including $170.9 million of growth in customer money market deposits, $84.5 million of growth in interest-bearing demand accounts, $18.9 million of growth in noninterest-bearing deposits, and $9.8 million of growth in savings accounts, offset by a decrease of $11.6 million in customer time deposits.
The growth in the quarter includes $107.8 million of deposits tied to one customer. Excluding this relationship, total deposits increased $91.0 million, or 11.9% (annualized) and customer deposits increased $164.7 million, or 27.0% (annualized).
The increase in total deposits of $400.7 million year-over-year was driven by $363.6 million in growth from customer money market deposits, $59.5 million from noninterest-bearing deposits, $45.3 million from interest-bearing demand accounts, and $8.7 million from savings accounts, offset by a decrease of $71.5 million from customer time deposits, and $4.7 million from brokered time deposits.
Insured and protected1 deposits were approximately $2.3 billion as of March 31, 2026 representing 69.4% of the Company's deposit portfolio.
Low interest2 and noninterest-bearing demand deposit account ("DDA") deposits of $1.2 billion, or 37.5% of deposits, increased $113.2 million, or 40.9% (annualized) from 4Q 2025, and increased $113.4 million, or 10.1% year-over-year.
The growth in the quarter of low interest and noninterest-bearing DDA deposits includes $36.1 million of deposits tied to one customer, the same relationship mentioned above. Excluding this relationship, total low interest and noninterest-bearing DDA deposits increased $77.1 million, or 27.9% from 4Q 2025, and increased $77.3 million, or 27.9% year-over-year.
The average rate on the low interest and noninterest-bearing deposits was 0.16% for 1Q 2026, which increased 2 bps compared to 4Q 2025 and increased 1 bps year-over-year.
The average portfolio loans-to-deposit ratio was 96.1% for 1Q 2026, compared to 97.0% for 4Q 2025, and 95.2% for 1Q 2025.
Investment securities:
The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $230.5 million, or 6.1% of total assets, and an effective duration of 2.3 years, with U.S. Treasury Securities representing 61% of the overall investment portfolio at March 31, 2026. The accumulated other comprehensive income (loss) on the investment securities portfolio declined $0.6 million during the quarter to $(6.4) million after-tax as of March 31, 2026, which represents 1.6% 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 prior quarter. Total available borrowing capacity as of March 31, 2026 was $809.5 million, compared to $816.9 million as of December 31, 2025, consisting of $705.3 million of available collateralized borrowing capacity, $96.0 million of unsecured lines of credit with other banks, and $8.2 million of unpledged investment securities available to collateralize potential additional borrowings.
_____________________1 Protected deposits includes deposits that are indirectly protected under the product terms.2 Low interest deposits include interest-bearing demand and savings accounts
Consolidated financial performance (Continued)
Capital:
As of March 31, 2026, the Company reported a Common Equity Tier-1 capital ratio of 12.92%, compared to 12.98% at December 31, 2025. At March 31, 2026, the Company and the Bank maintained regulatory capital ratios that exceed all capital adequacy requirements.
Shares repurchased and retired during the three months ended March 31, 2026, as part of the Company's stock repurchase program, totaled 122,757 shares at an average price of $28.89, for a total cost of $3.5 million. The share repurchases consisted of $0.9 million under the Company's previous stock repurchase program, which expired on February 28, 2026, and $2.6 million under the new stock repurchase program. As of March 31, 2026, there was $12.4 million remaining to be repurchased under the current $15.0 million authorization repurchase program, which will expire on December 31, 2026.
Financial Metrics
Net Interest Margin:
NIM of 5.71% for 1Q 2026, decreased 23 bps compared to the prior quarter, and decreased 34 bps year-over-year. Core NIM(1) of 4.15% decreased 4 bps (but decreased 7 bps when excluding PAA) compared to the prior quarter, and decreased 21 bps year-over-year. Net PAA for 1Q 2026 was 5 bps for NIM and 5 bps for Core NIM(1).
The average yield on interest earning assets of 7.86% decreased 24 bps compared to the prior quarter and decreased 38 bps year-over-year. The decreases quarter-over-quarter and year-over-year were primarily due to OpenSky™ as a result of changes in the rate environment.
The Core Loan Yield(1) of 6.93% for 1Q 2026 decreased 2 bps compared to 4Q 2025, and decreased 21 bps year-over-year. The decrease year-over-year was primarily a result of changes in the rate environment.
The total cost of deposits of 2.34% for 1Q 2026 decreased 2 bps compared to the prior quarter and decreased 8 bps year-over-year. The decrease year-over-year was primarily a result of a shift in the product mix of the portfolio, and changes in the rate environment.
The total cost of interest-bearing deposits of 3.17% for 1Q 2026 decreased 11 bps quarter-over-quarter, and decreased 20 bps year-over-year. The decreases quarter-over-quarter and year-over-year were due to a shift in product mix as well as changes in the rate environment.
Net PAA of $0.4 million, or 5 bps of NIM and 5 bps of Core NIM(1), during 1Q 2026, increased $0.2 million from 4Q 2025 mainly due to a loan payoff during the quarter. There was $1.4 million from net PAA during 1Q 2025.
Credit Metrics and Asset Quality:
Nonperforming assets were $59.3 million or 1.56% of total assets at March 31, 2026, an increase of $1.0 million but a decrease of 6 bps compared to December 31, 2025. The increase in nonperforming assets from 4Q 2025 was primarily driven by a $0.8 million increase from the legacy CBNK portfolio and a $0.2 million increase from the acquired IFH portfolio. Nonperforming assets increased $16.3 million or 28 bps year-over-year, mainly due to the $15.9 million increase during 3Q 2025 from two loan relationships acquired as part of the IFH transaction. At March 31, 2026, substandard loans totaled $71.8 million, or 2.4% of total portfolio loans, compared to $58.5 million, or 2.0% of total portfolio loans, at December 31, 2025 and $45.7 million, or 1.7% of total portfolio loans, at March 31, 2025. The increase from December 31, 2025 of $13.3 million was primarily driven by one legacy bank loan relationship, with three loans accounting for $9.7 million of the increase quarter-over-quarter. The $26.1 million year-over-year increase in substandard loans was primarily driven by $15.9 million from the two loan relationships acquired as part of the IFH transaction, and the one legacy bank relationship accounting for $9.7 million. At March 31, 2026, special mention loans totaled $60.3 million, or 2.0% of total portfolio loans, compared to $57.9 million, or 2.0% of total portfolio loans, at December 31, 2025, and $63.0 million, or 2.4% of total portfolio loans, at March 31, 2025.
Efficiency Ratio:
The efficiency ratio was 69.6% for 1Q 2026, compared to 62.3% for 4Q 2025 and 64.9% for 1Q 2025. The core efficiency ratio(1) was 69.6% for 1Q 2026, which increased from 62.3% compared to the prior quarter, and increased from 62.8% for 1Q 2025.
_____________________1 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.
Financial Metrics (Continued)
Returns:
ROA was 1.33% for 1Q 2026, compared to 1.71% for 4Q 2025, and 1.75% for 1Q 2025. Core ROA(1) for 1Q 2026 was 1.33%, compared to 1.71% for 4Q 2025, and 1.87% for 1Q 2025.
ROE was 12.03% for 1Q 2026, compared to 15.23% for 4Q 2025, and 15.56% for 1Q 2025. Core ROE(1) was 12.03% for 1Q 2026, compared to 15.23% for 4Q 2025, and 16.64% for 1Q 2025.
ROTCE(1) was 13.58% for 1Q 2026, compared to 17.23% for 4Q 2025, and 17.57% for 1Q 2025. Core ROTCE(1) for 1Q 2026 was 13.58%, compared to 17.23% for 4Q 2025, and 18.77% for 1Q 2025.
Book Value:
Book value per common share of $25.10 at March 31, 2026, increased $0.57 when compared to December 31, 2025, and increased $2.91 when compared to March 31, 2025. Tangible book value per common share(1) increased $0.57, or 2.6% (not annualized), to $22.62 at March 31, 2026 when compared to December 31, 2025, and increased $2.81, or 14.2%, when compared to March 31, 2025.
_____________________1 As used in this press release, Core ROA, Core ROE, ROTCE, Core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude the impact of 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.
Reportable Segments
Commercial Bank
Loan Growth, Portfolio loans(1) increased $73.0 million at March 31, 2026 compared to December 31, 2025, driven by $32.3 million from C&I, $29.7 million from residential real estate, and $6.1 million from construction real estate. Portfolio loans increased $330.6 million at March 31, 2026 compared to March 31, 2025, driven by $136.2 million from C&I, $101.9 million from residential real estate, and $46.1 million from CRE. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.
Net Interest Income, Interest income of $52.7 million increased $0.7 million from the prior quarter, $0.5 million of which was due to growth in the Commercial Bank loan portfolio and $0.2 million of which was from higher loan PAA. Interest expense of $18.5 million increased $0.2 million, primarily due to a mix shift in the deposit portfolio.
Credit Metrics, Nonperforming assets decreased 7 bps to 1.64% of total assets at March 31, 2026 compared to December 31, 2025. Total nonaccrual loans at March 31, 2026 were $55.4 million, an increase of $1.0 million or 1.8% compared to $54.4 million at December 31, 2025.
Classified and Criticized Loans, At March 31, 2026, special mention loans totaled $60.3 million, or 2.0% of total portfolio loans, compared to $57.9 million, or 2.0% of total portfolio loans, at December 31, 2025. At March 31, 2026, substandard loans totaled $71.8 million, or 2.4% of total portfolio loans, compared to $58.5 million, or 2.0% of total portfolio loans, at December 31, 2025.
_____________________(1) Portfolio loans represents portfolio loans receivable excluding deferred origination fees, net.
OpenSky™
Accounts, During 1Q 2026, credit card accounts grew to 588.2 thousand, increasing 2.7 thousand, or 0.5% (not annualized) from December 31, 2025, and increasing 24.5 thousand, or 4.3% year-over-year.
Loan and Deposit Balances, Secured and unsecured loan balances, net of reserves for interest and fees, of $134.8 million at March 31, 2026 decreased by $7.6 million, or 5.3% (not annualized), compared to December 31, 2025 and increased $16.1 million, or 13.5%, year-over-year. Deposit balances of $165.5 million at March 31, 2026 increased $2.3 million compared to December 31, 2025 and decreased $3.3 million, or 1.9% year-over-year. Gross unsecured loan balances of $46.6 million at March 31, 2026 decreased $0.6 million, or 1.2% (not annualized), compared to $47.1 million at December 31, 2025, and increased $19.9 million year-over-year. Gross secured loan balances of $90.0 million at March 31, 2026 decreased $7.3 million, or 7.5% (not annualized), compared to $97.3 million at December 31, 2025, and decreased $3.5 million, or 3.8% (not annualized) year-over-year.
Net Interest Income, Interest income of $15.1 million decreased $1.3 million compared to 4Q 2025. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $133.7 million for 1Q 2026, decreased $0.1 million, or 0.1% (not annualized), compared to 4Q 2025.
Fee Revenue, Total fee revenue of $4.7 million decreased $0.1 million from the prior quarter primarily driven by lower interchange and other credit-card related fees.
Noninterest Expense, Total noninterest expense of $16.2 million increased $1.6 million compared to 4Q 2025, driven by professional fees associated with the legacy and unsecured products, investment in headcount for initiatives, the acceleration of depreciation of capitalized assets related to OpenSky™ technology, and data processing costs.
OpenSky™ Credit, Portfolio credit metrics continued to be consistent with modeled expectations during 1Q 2026. The provision for credit losses of $2.7 million increased $1.4 million when compared to the prior quarter, primarily due to a $2.0 million credit in 4Q 2025 to the allowance for credit losses that was made to reflect the debt sale. Excluding this item in 4Q 2025, the provision for credit losses would have decreased $0.6 million primarily due to lower balances in the loan portfolio. OpenSky's™ unsecured loan product is offered exclusively to current and former secured card customers. 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.
Capital Bank Home Loans
Originations of loans held for sale totaled $72.9 million during 1Q 2026, with $52.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.5 million, representing a 2.85% gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $107.3 million during 4Q 2025, with $83.0 million of mortgage loans sold resulting in a gain on sale of loans of $2.1 million, representing a 2.58% gain on sale as a percentage of total loans sold.
Windsor Advantage™
Gross government loan servicing revenue totaled $5.6 million, including $1.3 million of Capital Bank related servicing fees, during 1Q 2026. Gross government loan servicing revenue totaled $5.0 million, including $1.0 million of Capital Bank related servicing fees, during 4Q 2025. Windsor's™ total servicing portfolio was $3.2 billion at March 31, 2026, and $3.1 billion at December 31, 2025.
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited
Quarter Ended
1Q26 vs 4Q25
1Q26 vs 1Q25
(in thousands, except per share data)
March 31,2026
December 31,2025
March 31,2025
$ Change
% Change
$ Change
% Change
Earnings Summary
Interest income
$
67,970
$
68,634
$
62,760
$
(664
)
(1.0
)%
$
5,210
8.3
%
Interest expense
18,572
18,355
16,713
217
1.2
%
1,859
11.1
%
Net interest income
49,398
50,279
46,047
(881
)
(1.8
)%
3,351
7.3
%
Provision for credit losses
3,014
3,988
2,246
(974
)
(24.4
)%
768
34.2
%
Provision for (release of) credit losses on unfunded commitments
205
(29
)
—
234
(806.9
)%
205
—
%
Noninterest income
13,373
12,464
12,549
909
7.3
%
824
6.6
%
Noninterest expense
43,681
39,103
38,053
4,578
11.7
%
5,628
14.8
%
Income before income taxes
15,871
19,681
18,297
(3,810
)
(19.4
)%
(2,426
)
(13.3
)%
Income tax expense
3,853
4,644
4,365
(791
)
(17.0
)%
(512
)
(11.7
)%
Net income
$
12,018
$
15,037
$
13,932
$
(3,019
)
(20.1
)%
$
(1,914
)
(13.7
)%
Pre-tax pre-provision net revenue ("PPNR")(1)
$
19,090
$
23,640
$
20,543
$
(4,550
)
(19.2
)%
$
(1,453
)
(7.1
)%
Core PPNR(1)
$
19,090
$
23,640
$
21,809
$
(4,550
)
(19.2
)%
$
(2,719
)
(12.5
)%
Common Share Data
Earnings per share - Basic
$
0.74
$
0.91
$
0.84
$
(0.17
)
(18.7
)%
$
(0.10
)
(11.9
)%
Earnings per share - Diluted
$
0.73
$
0.91
$
0.82
$
(0.18
)
(19.8
)%
$
(0.09
)
(11.0
)%
Core earnings per share - Diluted(1)
$
0.73
$
0.91
$
0.88
$
(0.18
)
(19.8
)%
$
(0.15
)
(17.0
)%
Weighted average common shares - Basic
16,345
16,493
16,666
Weighted average common shares - Diluted
16,441
16,493
16,925
Return Ratios
Return on average assets (annualized)
1.33
%
1.71
%
1.75
%
Core return on average assets (annualized)(1)
1.33
%
1.71
%
1.87
%
Return on average equity (annualized)
12.03
%
15.23
%
15.56
%
Core return on average equity (annualized)(1)
12.03
%
15.23
%
16.64
%
Return on average tangible common equity (annualized)(1)
13.58
%
17.23
%
17.57
%
Core return on average tangible common equity (annualized)(1)
13.58
%
17.23
%
18.77
%
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued)
Quarter Ended
Quarter Ended
March 31,
December 31,
September 30,
June 30,
(in thousands, except per share data)
2026
2025
% Change
2025
2025
2025
Balance Sheet Highlights
Assets
$
3,808,467
$
3,349,805
13.7
%
$
3,606,207
$
3,389,442
$
3,388,662
Investment securities available-for-sale
230,525
213,452
8.0
%
230,083
232,640
228,923
Mortgage loans held for sale
13,739
30,005
(54.2
)%
25,828
14,146
15,933
Portfolio loans receivable(2)
3,026,431
2,678,406
13.0
%
2,959,457
2,821,983
2,739,808
Allowance for credit losses
54,680
48,454
12.8
%
54,660
53,045
47,447
Goodwill
25,969
24,085
7.8
%
25,969
25,969
22,478
Intangible assets
14,511
15,556
(6.7
)%
14,771
15,033
15,295
Deposits
3,292,047
2,891,333
13.9
%
3,093,200
2,912,053
2,940,738
FHLB borrowings
50,000
22,000
127.3
%
50,000
22,000
22,000
Other borrowed funds
2,062
12,062
(82.9
)%
2,062
12,062
12,062
Total stockholders' equity
408,859
369,577
10.6
%
401,757
394,770
380,035
Tangible common equity(1)
368,379
329,936
11.7
%
361,017
353,768
342,262
Common shares outstanding
16,286
16,657
(2.2
)%
16,373
16,589
16,582
Book value per share
$
25.10
$
22.19
13.1
%
$
24.54
$
23.80
$
22.92
Tangible book value per share(1)
$
22.62
$
19.81
14.2
%
$
22.05
$
21.33
$
20.64
Dividends per share
$
0.12
$
0.10
20.0
%
$
0.12
$
0.12
$
0.10
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.(2) Loans are reflected net of deferred fees and costs.
Consolidated Statements of Income (Unaudited)
Three Months Ended
(in thousands)
March 31,2026
December 31,2025
September 30,2025
June 30,2025
March 31,2025
Interest income
Loans, including fees
$
64,186
$
64,933
$
60,838
$
60,810
$
58,691
Investment securities available-for-sale
1,459
1,728
1,805
1,582
1,861
Federal funds sold and other
2,325
1,973
2,248
2,194
2,208
Total interest income
67,970
68,634
64,891
64,586
62,760
Interest expense
Deposits
18,070
17,805
12,732
16,722
16,512
Borrowed funds
502
550
139
218
201
Total interest expense
18,572
18,355
12,871
16,940
16,713
Net interest income
49,398
50,279
52,020
47,646
46,047
Provision for credit losses
3,014
3,988
4,650
4,081
2,246
Provision for (release of) credit losses on unfunded commitments
205
(29
)
217
—
—
Net interest income after provision for credit losses
46,179
46,320
47,153
43,565
43,801
Noninterest income
Service charges on deposits
403
371
425
262
258
Credit card fees
4,692
4,837
4,509
4,298
3,722
Mortgage banking revenue
1,556
1,960
1,927
1,754
1,831
Government lending revenue
923
—
14
3,112
1,096
Government loan servicing revenue
4,345
4,036
4,265
3,644
3,568
Loan servicing rights
497
295
368
(590
)
472
Other income (loss)
957
965
(440
)
626
1,602
Total noninterest income
13,373
12,464
11,068
13,106
12,549
Noninterest expenses
Salaries and employee benefits
20,317
17,914
17,728
18,460
18,067
Occupancy and equipment
3,562
2,638
2,849
2,995
2,910
Professional fees
4,965
4,294
2,131
2,422
2,112
Data processing
7,767
7,502
7,654
7,520
7,112
Advertising
1,466
1,398
1,714
1,371
1,779
Loan processing
1,383
1,152
1,114
979
743
Merger-related expenses
—
—
697
1,398
1,266
Operational and other card fraud related losses
690
750
923
933
903
Regulatory assessment expenses
941
858
740
884
889
Other operating
2,590
2,597
2,804
2,610
2,272
Total noninterest expenses
43,681
39,103
38,354
39,572
38,053
Income before income taxes
15,871
19,681
19,867
17,099
18,297
Income tax expense
3,853
4,644
4,802
3,963
4,365
Net income
$
12,018
$
15,037
$
15,065
$
13,136
$
13,932
Consolidated Balance Sheets
(unaudited)
(audited)
(unaudited)
(unaudited)
(unaudited)
(in thousands, except share data)
March 31,2026
December 31,2025
September 30,2025
June 30,2025
March 31,2025
Assets
Cash and due from banks
$
20,182
$
30,894
$
25,724
$
26,843
$
27,836
Interest-bearing deposits at other financial institutions
379,069
224,611
163,078
247,704
266,092
Federal funds sold
60
60
59
59
59
Total cash and cash equivalents
399,311
255,565
188,861
274,606
293,987
Investment securities available-for-sale
230,525
230,083
232,640
228,923
213,452
Restricted investments
8,691
8,397
7,057
7,043
7,031
Loans held for sale
13,739
25,828
14,146
15,933
30,005
Portfolio loans receivable, net of deferred fees and costs
3,026,431
2,959,457
2,821,983
2,739,808
2,678,406
Less allowance for credit losses
(54,680
)
(54,660
)
(53,045
)
(47,447
)
(48,454
)
Total portfolio loans held for investment, net
2,971,751
2,904,797
2,768,938
2,692,361
2,629,952
Premises and equipment, net
17,732
15,072
15,304
14,863
15,085
Accrued interest receivable
16,795
16,695
19,011
15,149
19,458
Goodwill
25,969
25,969
25,969
22,478
24,085
Intangible assets
14,511
14,771
15,033
15,295
15,556
Loan servicing assets
1,957
1,816
2,070
2,221
2,244
Deferred tax asset
15,187
14,992
14,885
15,667
15,902
Bank owned life insurance
45,871
45,488
45,105
44,721
44,335
Other assets
46,428
46,734
40,423
39,402
38,713
Total assets
$
3,808,467
$
3,606,207
$
3,389,442
$
