Slide 1: 2024 Fourth Quarter Earnings Presentation
2024 Fourth Quarter Earnings Presentation January 23, 2024
Slide 2: Forward-Looking Statements
Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including forward- looking statements relating to the Company’s current business plans and expectations regarding future operating results. T
Slide 3: 4Q-2024 Highlights vs 3Q-2024
4Q-2024 Highlights vs 3Q-2024 3 (1) Annualized. (2) Excludes the guaranteed portion of SBA loans that are in liquidation. (3) Includes special mention, substandard, doubtful, and loss categories. Net Income $5.0M Earnings & Profitability Balance Sheet Growth Credit Quality Capital Adequacy • Net inc
Slide 4: Balance Sheet Trend
Balance Sheet Trend 4 Gross Loans ($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. ** Excludes SBA loans and USDA loans. Commercial Real Estate Portfolio 9 CRE Portfolio ** by Loan-to-Value Ratio (LTV)CRE Portfolio * by Location * CRE Weighted Average LTV: 48.8%
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
* Includes $1.8 million in USDA loans. SBA Loans 11 SBA Portfolio* by IndustrySBA Portfolio* by Location
Slide 12: SBA Loans by Collateral Type and LTV
* Includes $1.8 million in USDA loans. ** Includes $1.8 million in USDA loans but excludes $18.6 million in SBA C&I loans. SBA Loans 12 SBA Portfolio* by Collateral TypeSBA Portfolio** by LTV
Slide 13: Deposit Trend
Deposit Trend 13 Noninterest Bearing Deposits ($mm)Deposit Composition ($mm) Cost of Deposits (%) CD Maturity Schedule ($mm)
Slide 14: Earnings & Profitability: Net Interest Income and Noninterest Income
Earnings & Profitability 14 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 15: Earnings & Profitability: Efficiency Ratio and Noninterest Expense
Earnings & Profitability 15 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 16: Earnings & Profitability: PPNR, Provision, Net Income
Earnings & Profitability 16 Pre-Provision Net Revenue ($mm)Provision for Loan Losses ($mm) Net Income ($mm) & Diluted EPS ($) Return on Assets & Return on Equity (%)
Slide 17: Net Interest Margin Trend
Source: Target Fed Funds Rate per Federal Open Market Committee guidance. Net Interest Margin Trend 17
Slide 18: Credit Quality
Credit Quality 18 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. ** ACL was calculated under the CECL methodology in 2023; prior periods were calculated under the incurred
Slide 19: Liquidity & Capital
Liquidity & Capital 19 Total Liquidity ($mm)On Balance Sheet Liquidity ($mm) Tier 1 Leverage ($mm) Total Risk Based Capital ($mm)
Slide 20: Non-GAAP Reconciliation: Pre-Provision Net Revenue
Non-GAAP Reconciliation 20 Pre-Provision Net Revenue ($ in thousands) 4Q-24 3Q-24 2Q-24 1Q-24 4Q-23 Interest income 35,051$ 35,299$ 34,357$ 32,913$ 31,783$ Interest expense 18,122 18,794 18,162 16,934 15,553 Net interest income 16,929 16,506 16,195 15,979 16,230 Noninterest income 4,417 4,241 4,183