Slide 1: 2024 Fourth Quarter Earnings Presentation
2024 Fourth Quarter Earnings Presentation January 21, 2025
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 2024 and Annual Highlights
4Q 2024 and Annual Highlights Key highlights Financial results 4Q 2024 FY 2024 Loans HFI grew by 5.22% annualized compared to 3Q 2024, while total deposit balances grew by 8.49% annualized Diluted earnings per common share $0.81 $2.48 4Q 2024 net income of $37.9 million and $39.8 million on an a
Slide 5: Driving shareholder value
Driving shareholder value Earnings per Share Book Value per Share Earnings per Share Adjusted Earnings per Share1 BVPS TBVPS 1 $3.97 $3.70 $3.76 $3.40 $33.59 $30.13 $31.05 $2.92 $3.01 $28.36 $28.27 $27.35 $25.69 $2.64 $2.57 $24.67 $2.48 $22.90 $21.73 $1.67 2020 2021 2022 2023 2024 2020 2021 2022 202
Slide 6: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital Position Tangible Book Value per Share1 4Q23 3Q24 4Q24 Shareholder’s Equity/Assets 11.5% 12.1% 11.9% $28.27 $24.67 $25.69 $22.90 TCE/TA1 9.7% 10.4% 10.2% $21.73 $18.55 $17.02 Common Equity 12.2% 12.7% 12.8% $14.56 Tier 12 $11.56 $11.58 Tier 1 Risk-Ba
Slide 7: Building operating leverage
Building operating leverage Highlights Core efficiency ratio (tax-equivalent basis)¹ Banking segment Mortgage segment Consolidated Consolidated 4Q 2024 efficiency ratio of 56.1% 120.3% and core efficiency ratio¹ of 54.6% compared to 98.3% 85.1% and 58.4% in 3Q 2024, respectively and 88.0% 95.0% 95
Slide 8: Stable net interest margin
Stable net interest margin Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 7.0% $13,000 6.0% Avg. interest earning $11,000 Yields and Costs (%) 5.0% assets ($mm) 4.0% $9,000 3.0% 2.0% $7,000 1.0% -- $5,000 4Q23 1Q24 2Q24 3Q24 4Q24 NIM1 3.46% 3.42% 3.57%
Slide 9: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry ($ millions) Other Industry C&I CRE-OO Total % of 5% Total 1-4 family Real estate rental and leasing $ 283 $ 226 $ 509 17% 17% Manufacturing 172 118 290 9% 1 C&I Finance and insurance 272 16 288 9% 32% Other services (except public admi
Slide 10: Office exposure (non-owner occupied CRE & C&D)
Office exposure (non-owner occupied CRE & C&D) Office loans represent only 3.8% of our total HFI loan portfolio as of the Credit detail by class end of 4Q24 Average Wtd. Avg. Wtd. Avg. Projects generally characterized by 25-30% cash equity requirement, loan Outstanding Balance Class ($mm) to val
Slide 11: Asset quality remains solid
Asset quality remains solid Nonperforming assets / assets Nonperforming loans HFI / loans HFI Optional GNMA repurchase Other NPAs1 0.99% 0.93% 0.96% 0.81% 0.23% 0.75% 0.87% 0.69% 0.24% 0.79% 0.18% 0.73% 0.17% 0.65% 0.17% 0.76% 0.69% 0.58% 0.63% 0.52% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24
Slide 12: Allowance for credit losses overview
Allowance for credit losses overview Allowance for Credit Losses (ACL) model utilizes Moody’s model1 with key economic data summarized below: For the quarter ended For the year ended December 31, 1Q25 2Q25 2025 2026 2027 2028 GDP(bcw$) $23,664.6 $23,771.7 $23,820.7 $24,201.0 $24,634.2 $25,150.1 An
Slide 13: Valuable deposit base
Valuable deposit base Deposits by customer segment ($mm) Cost of deposits Consumer Commercial Public Noninterest-bearing as % of total deposits Cost of total deposits (%) $10,976 $11,210 35.0% 2.76% 2.77% 2.83% 3.00% $10,548 $10,505 $10,468 2.65% 2.70% $1,413 $1,555 30.0% $1,597 $1,554 $1,522 2.50%
Slide 14: Strong liquidity position
Strong liquidity position Balance sheet structure provides multiple options to increase returns including core funded loan growth and/or On-balance sheet liquidity ($mm) continued deposit cost mitigation On-balance sheet liquidity On-balance sheet liquidity / tangible assets Securities portfolio
Slide 15: Mortgage performance in 4Q 2024
Mortgage performance in 4Q 2024 Highlights Interest rate lock commitment volume ($mm) Mortgage segment pre-tax net contribution of Purchase Refinance $0.3 million in 4Q 2024 $377 $385 $381 $57 $49 $67 $316 Mortgage segment profitability has stabilized $246 $58 delivering positive pre-tax net con
Slide 16: Appendix
FB) pe Bank Appendix
Slide 17: Adjusted net income and diluted earnings per share
GAAP reconciliations and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 16
Slide 18: Adjusted pre-tax pre-provision net revenue
GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax pre-provision net revenue 17
Slide 19: Adjusted tangible net income
GAAP reconciliations and use of non-GAAP financial measures Adjusted tangible net income 18
Slide 20: Adjusted net income and diluted earnings per share
GAAP reconciliations and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 19
Slide 21: Adjusted pre-tax pre-provision net revenue
GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax pre-provision net revenue 20
Slide 22: Adjusted tangible net income
GAAP Reconciliations and use of non-GAAP Financial Measures Adjusted tangible net income 21
Slide 23: Adjusted Common Equity Tier and Total Risk-Based capital ratios
GAAP reconciliations and use of non-GAAP financial measures Adjusted Common Equity Tier 1 and Total Risk-Based capital ratios 22
Slide 24: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliations and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 23
Slide 25: Banking segment core efficiency ratios and core revenue ratios
GAAP reconciliations and use of non-GAAP financial measures Banking segment core efficiency ratios (tax-equivalent basis) and core revenue ratios 24
Slide 26: Mortgage segment core efficiency ratios and core revenue ratios
GAAP reconciliations and use of non-GAAP financial measures Mortgage segment core efficiency ratios (tax-equivalent basis) and core revenue ratios 25
Slide 27: Tangible assets, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures 26
Slide 28: Tangible assets, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures 27
Slide 29: Adjusted return on average tangible common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average tangible common equity and related measures 28
Slide 30: Adjusted return on average assets, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average assets, common equity and related measures 29
Slide 31: Adjusted return on average tangible common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average tangible common equity and related measures 30
Slide 32: Adjusted return on average assets, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average assets, common equity and related measures 31