Capital Bancorp Inc

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed in the reports we file and submit under the Exchange Act with the SEC, such as this Quarterly Report, is (i) recorded, processed, summarized and reported as and when required and (ii) accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosures. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, a control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

An evaluation of the effectiveness of these disclosure controls and procedures as of September 30, 2026 was carried out under the supervision and with the participation of management, including our Principal Executive Officer and Principal Financial Officer. Based on that evaluation, the Company’s management, including our Principal Executive Officer and Principal Financial Officer, concluded that our disclosure controls and procedures were not effective at the reasonable assurance level at September 30, 2026 due to the material weakness in the Company’s internal control over financial reporting that was previously disclosed in Part II, Item 9A of the Company’s 2025 Form 10-K, described below.

Previously Reported Material Weakness and Remediation Activities

As previously disclosed in Part II, Item 9A of the Company’s 2025 Form 10-K, management identified a material weakness in the Company’s internal control over financial reporting related to controls over two clearing accounts that support transactional activity related to the sale and participation of government-guaranteed loans; the clearing accounts were Loans Work-in-Progress and AutoPay - Participations Sold. The operational processes and systems used to book, sell and participate these loans were inherited from the IFH transaction. The material weakness resulted from the aggregation of control deficiencies with each of the two clearing accounts, Loans Work-in-Progress and AutoPay - Participations Sold.

During 2026, management implemented the remediation plan described in the 2025 Form 10-K. Specifically, management:

•Added loan operations personnel, established dedicated ownership of the reconciliation of loan clearing accounts, and enhanced leadership over the operations function.

•Completed a review of legacy aged items in one of the clearing accounts, Loans Work-in-Progress, and derecognized items that could not be supported. Management also implemented enhanced reconciliation, aging, and escalation procedures across both clearing accounts, including documented explanations for aged items, weekly review by operations leadership, and required approval of exceptions for aged items.

•Continued to complete a monthly reconciliation between the Bank’s core system and the Government Guaranteed Lending loan system, and enhanced the reconciliation to lower the threshold for investigating differences and to monitor the aging of unresolved differences, with investigation and resolution of reconciliation differences.

•Established a sub-working group that meets bi-weekly to review government-guaranteed and participated loan activity and the related clearing account balances, and that reports to Management’s Executive Sarbanes-Oxley Steering Committee.

The controls for Loans Work-in-Progress have been designed and implemented and have operated for a sufficient period of time, and management has concluded, through testing, that these controls are operating effectively.

With respect to the AutoPay - Participations Sold clearing account, management has implemented enhanced controls, including strengthened reconciliation, aging, review and escalation procedures, and has been testing their operating effectiveness. Management continues to implement improvements to these controls and has not yet completed sufficient testing over an adequate period of operation to conclude that the controls are operating effectively for purposes of remediating this component of the material weakness.

Changes in Internal Control over Financial Reporting

Other than the efforts described above, there were no changes in the Company’s internal control over financial reporting during the quarter ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

From time to time, we are a party to various litigation matters incidental to the ordinary conduct of our business. We are not presently a party to any legal proceedings which the Company believes will have a material adverse impact on the results of operations or financial condition of the Company.