On September 29, 2026, Capital Bank, N.A. (the "Bank"), the wholly owned subsidiary of Capital Bancorp, Inc. (the "Company"), entered into a purchase and assumption agreement (the "Agreement") with respect to the Bank's branch office located at North Riverside, Illinois. Pursuant to the Agreement, another financial institution will purchase the branch office as well as certain loans and other assets attributed to the branch office, and will also assume certain deposit and other liabilities attributed to the branch office (the "Transaction"). At June 30, 2026, there were approximately $123.9 million of deposits held at the branch office. Based upon the composition of deposits at June 30, 2026, the Bank would have received a deposit premium of approximately $3.3 million had the Transaction been completed on that date. The Bank will also receive a payment equal to the unpaid principal balance of loans transferred in the transaction. The parties will determine, within 30 days of the date of the Agreement, which loans will be purchased by the other financial institution.

Consummation of the Transaction remains subject to customary closing conditions, including the receipt of all required regulatory approvals. Luse Gorman, PC is serving as legal counsel to the Bank in the transaction.