Slide 1: 2022 Fourth Quarter Earnings Presentation
2022 Fourth Quarter Earnings Presentation January 17, 2023
Slide 2: Forward-Looking Statements
Forward–Looking Statements Certain statements contained in this Presentation that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statem
Slide 3: Use of non-GAAP financial measures
Use of non-GAAP financial measures This Presentation contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures may include, without limi
Slide 4: 4Q 2022 and Annual highlights
4Q 2022 and Annual highlights Key highlights Financial results Total deposits grew 33.7% annualized in 4Q 2022 (36.8% annualized 4Q 2022 FY 2022 or $914.9 million excluding mortgage escrow related deposits); FY 2022 growth of $70.9 million (excluding mortgage escrow deposits) Diluted earnings per
Slide 5: Driving shareholder value
Driving shareholder value Adjusted Earnings per Share1 Tangible Book Value per Share1 TBVPS Adj. TBVPS (Ex. AOCI) $3.73 $3.78 $26.53 $24.67 $24.55 $2.91 $22.90 $2.83 $21.73 $21.15 $2.61 $18.55 $18.16 $17.02 $17.16 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Short Term Performance Dashboard Adj
Slide 6: Strong net interest margin
Strong net interest margin Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 6.0% $13,000 5.0% Avg. interest earning $11,000 Yields and Costs (%) assets ($mm) 4.0% 3.0% $9,000 2.0% $7,000 1.0% -- $5,000 4Q21 1Q22 2Q22 3Q22 4Q22 NIM1 3.19% 3.04% 3.52% 3.93
Slide 7: Mortgage performance in 4Q 2022
Mortgage performance in 4Q 2022 Highlights Retail channel interest rate lock commitments ($mm) Mortgage segment pre-tax net loss of $4.2 million in 4Q Purchase Refinance 2022 Interest rate lock commitment volume declined 31% in 4Q $741 $688 resulting in negative fair value change $605 $243 $237
Slide 8: Managing expenses
Managing expenses Highlights Core efficiency ratio (tax-equivalent basis)¹ Banking segment Consolidated 4Q 2022 core efficiency Consolidated 145.4% ratio¹ of 61.0% Mortgage segment 128.9% Banking segment is realizing the benefit 111.8% of an asset sensitive balance sheet; 100.5% 97.8% however, Q
Slide 9: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital position Tangible book value per share3 4Q211 3Q221 4Q221,2 Shareholder’s equity/Assets 11.4% 10.5% 10.3% $24.67 $22.90 $21.73 $18.55 TCE/TA3 9.5% 8.5% 8.5% $17.02 $14.56 $11.56 $11.58 Common equity 12.3% 10.9% 11.0% tier 1/Risk-weighted assets 3Q16
Slide 10: Valuable core deposit base
Valuable core deposit base Total deposits1 ($mm) Cost of deposits Noninterest-bearing (%) Cost of total deposits (%) 35.0% 29.6% 30.0% 27.5% 25.3% 25.4% 24.7% 25.0% $10,837 $10,996 $10,856 20.0% $10,543 1.20% 15.0% $10,006 0.52% 10.0% 0.22% 0.20% 0.25% 5.0% 0.0% 4Q21 1Q22 2Q22 3Q22 4Q22 Deposit comp
Slide 11: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry Other 4% 1-4 family 1 17% C&I 30% 1-4 family HELOC 5% Multifamily 5% C&D 18% 2 CRE 21% CRE2 exposure by type C&D exposure by type Office Other Other 7% Warehouse 2% Healthcare Facility 12% Office Retail 2% 2% 23% 3% Self Storage Multifa
Slide 12: Asset quality remains solid
Asset quality remains solid Nonperforming Assets1 / Assets Nonperforming Loans (HFI) / Loans (HFI) 1 2 0.68% 0.62% 0.07% 0.50% 0.22% 0.20% 0.04% 0.44% 0.46% 0.62% 0.04% 0.01% 0.51% 0.51% 0.47% 0.49% 0.46% 0.45% 0.41% 0.40% 0.40% 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 LLR/loans HFI Net cha
Slide 13: Allowance for credit losses overview
Allowance for credit losses overview Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model with key economic data summarized below: ACL / Loans HFI by Category 4Q21 3Q22 4Q22 3.67% 3.56% 3.35% 2.47% 2.40% 2.15% 2.14% 1.65% 1.64% 1.66% 1.48%1.44% 1.49% 1
Slide 14: Appendix
FB} pee Bank Appendix
Slide 15: Adjusted net income and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 14
Slide 16: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 15
Slide 17: Adjusted earnings and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share 16
Slide 18: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 17
Slide 19: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 18
Slide 20: Segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 19
Slide 21: Adjusted Banking segment pre-tax pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted Banking segment pre-tax pre-provision earnings Adjusted Mortgage segment pre-tax net (loss) contribution 20
Slide 22: Tangible assets and equity, tangible book value per share
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity, tangible book value per common share and tangible common equity to tangible assets 21
Slide 23: Tangible assets and equity, tangible book value per share
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity, tangible book value per common share and tangible common equity to tangible assets 22
Slide 24: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 23
Slide 25: Adjusted return on average assets and common equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity 24
Slide 26: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 25
Slide 27: Adjusted return on average assets and common equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity 26