Slide 1: 2023 Second Quarter Earnings Presentation
2023 Second Quarter Earnings Presentation July 27, 2023
Slide 2: Forward-Looking Statements
Certain matters set forth herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. These forwar
Slide 3: 2Q-2023 Highlights vs 2Q-2022
2Q-2023 Highlights vs 2Q-2022 3 (1) Annualized. (2) Allowance for credit losses (“ACL”) was calculated under the CECL methodology as of June 30, 2023; prior periods were calculated under the incurred loss methodology. (3) Excludes the guaranteed portion of SBA loans that are in liquidation. (4) Incl
Slide 4: Balance Sheet Trend
Balance Sheet Trend 4 Gross Loans ($mm)Total Assets ($mm) Total Equity ($mm) & Book Value Per Share ($)Total Deposits ($mm)
Slide 5: Loan Trend
Loan Trend 5 Loan Originations ($mm)Loan Composition ($mm) Loan Yields (%) Commercial Real Estate Concentration (%)
Slide 6: Loan by Interest Rate Type
Loan by Interest Rate Type 6 Hybrid Loan Repricing Schedule ($mm)Composition by Interest Rate Type (%) Contractual Rates by Interest Rate Type (%) Loan Maturity Schedule ($mm)
Slide 7: Gross Loans Diversification with Growth
Gross Loans Diversification with Growth 7
Slide 8: Commercial Real Estate Portfolio
• Based on Call Report definitions, which includes real estate loans and SBA real estate loans. Commercial Real Estate Portfolio 8 CRE* Portfolio by Property TypeCRE* Portfolio by Collateral Type
Slide 9: Commercial Real Estate Portfolio by LTV and Location
* Based on Call Report definitions, which includes real estate loans and SBA real estate loans. ** Exclude SBA loans and USDA loans. Commercial Real Estate Portfolio 9 CRE Portfolio ** by Loan-to-Value Ratio (LTV)CRE Portfolio * by Location
Slide 10: Home Loan Portfolio
Home Loan Portfolio 10 Home Loan Portfolio by LTVHome Loan Portfolio by Location Home Loan Portfolio by Occupancy Type
Slide 11: SBA Loans
* Include $2 million in USDA loans. SBA Loans 11 SBA Portfolio* by IndustrySBA Portfolio* by Location
Slide 12: SBA Loans by Collateral Type and LTV
** Include USDA loans but excludes $14 million in SBA C&I loans. SBA Loans 12 SBA Portfolio** by Collateral TypeSBA Portfolio** by LTV
Slide 13: Gross Loan Changes by Activity
Gross Loan Changes by Activity 13
Slide 14: Deposit Trend
Deposit Trend 14 Noninterest Bearing Deposits ($mm)Deposit Composition ($mm) Cost of Deposits (%) CD Maturity Schedule ($mm)
Slide 15: Earnings & Profitability: Net Interest Income and Noninterest Income
Earnings & Profitability 15 Noninterest Income ($mm)Net Interest Income ($mm) & Net Interest Margin (%) Interest Income & Interest Expense ($mm) Noninterest Income Components ($mm) * Ratios for interest income & interest expense are percentages of average assets and are annualized.
Slide 16: Earnings & Profitability: Efficiency Ratio and Noninterest Expense
Earnings & Profitability 16 Efficiency Ratio (%)Noninterest Expense ($mm) Noninterest Expense Components ($mm) Efficiency Ratio Components (%) * Ratios for Efficiency Ratio Components are percentages of average assets and are annualized.
Slide 17: Earnings & Profitability: PPNR, Provision, Net Income
Earnings & Profitability 17 Pre-Provision Net Revenue ($mm)Provision for Loan Losses ($mm) Net Income ($mm) & Diluted EPS ($) Return on Assets & Return on Equity (%)
Slide 18: Net Interest Margin Trend
Source: Target Fed Funds Rate per Federal Open Market Committee guidance. Net Interest Margin Trend 18
Slide 19: Credit Quality
Credit Quality 19 Criticized Loans ($mm)Nonperforming Loans ($mm) Net Charge-Offs ($mm)Allowance for Credit Losses** ($mm) * Exclude the guaranteed portion of SBA loans that are in liquidation. ** Allowance fore credit losses as of June 30, 2023 and March 31, 2023 were calculated under the CECL meth
Slide 20: Liquidity & Capital
Liquidity & Capital 20 Total Liquidity ($mm)On Balance Sheet Liquidity ($mm) Tier 1 Leverage ($mm) Total Risk Based Capital ($mm)
Slide 21: Non-GAAP Reconciliation: Pre-Provision Net Revenue
| Aan open bank —” Non-GAAP Reconciliation Pre-Provision Net Revenue Pre-provision net revenue removes provision for loan losses and income tax expense. Management believes that this non-GAAP measure, when taken together with the corresponding GAAP finandal measures (as applicable), provides meaning
Slide 22: Non-GAAP Reconciliation: Adjusted Allowance to Gross Loans Ratio
| Aan open bank —” Non-GAAP Reconciliation Adjusted Allowance to Gross Loans Ratio Adjusted allowance to gross loans ratio removes the impacts of purchased Hana loans, PPP loans and allowance on accrued interest receivable. Management believes that this ratio provides greater consistency and compara