1Q25 Results Presentation May 1, 2025 Forward-looking statements For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled ''Risk Factors" previously disclosed in our Form 10-Q filed with the SEC on May 14, 2020, as well as other cautionary statements we make in our current and periodic filings with the SEC. Such filings are available publicly on our Investor Relation ...

Financial Data and Key Metrics Changes - The company reported GAAP fully diluted earnings per share of $0.87, which represents a 135% increase compared to the fourth quarter and an 81% increase year-over-year [5] - Pre-provision net revenue for the first quarter was $9,400,000, or $1.22 per share, reflecting an 11% increase from the previous quarter [9] - The net interest margin for the quarter was 281 basis points, a 21 basis point increase from the linked quarter [9] Business Line Data and Key Metrics Changes - SBA originations grew during the first quarter, with gain on sale margins exceeding 10% [6] - Non-interest income increased by 56% compared to the linked quarter, driven largely by $424,000 of SBA gain on sale income [11] - The efficiency ratio for the quarter was 59.9%, an increase over the prior quarter, but expected to improve as net interest margin expands [12] Market Data and Key Metrics Changes - The company experienced elevated payoff activity of $200,000,000, which offset strong origination activity of $130,000,000 funded during the first quarter [6] - Core deposits grew by $43,000,000, including $28,000,000 in non-interest bearing deposits [7] - Brokered deposits declined by $81,000,000 relative to the fourth quarter, with a total reduction of $207,000,000 over the last twelve months [7] Company Strategy and Development Direction - The company is focused on expanding its SBA business and expects continued growth in SBA gain on sale activity throughout 2025 [6][11] - The addition of new deposit teams in the New York Metro Area is aimed at enhancing customer acquisition and deposit growth [14] - The company plans to selectively add professionals to achieve strategic goals, particularly in technology and banking [15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about low single-digit loan growth for the full year despite a slower start [6][22] - The company anticipates continued margin expansion as maturing term deposits reprice to lower current rates [9][10] - Management expressed confidence in the company's ability to navigate changes in the SBA landscape while maintaining growth [37] Other Important Information - The company disposed of two nonperforming credits, which significantly reduced nonperforming assets as a percentage of total assets to 83 basis points [5] - The balance sheet remains well-capitalized and liquid, with total assets of $3,200,000,000 [13] - The company repurchased 29,924 shares at a weighted average price of $30.46 during the quarter [13] Q&A Session Summary Question: Update on new teams and their focus - The new teams are primarily focused on deposits, with both teams having books of business over $100,000,000 [19][20] Question: Loan pipeline and growth outlook - The company still expects low single-digit growth, with a robust pipeline despite some unexpected payoffs in the first quarter [22][23] Question: Core loan yield and margin expectations - The core loan yield for the quarter was approximately $6.40, with expectations for continued margin expansion [27][29] Question: SBA gain on sale and future expectations - Originations were better than expected, with the strongest quarter anticipated in Q4 [35] Question: Professional fees and expense outlook - Some professional fees are one-time investments that may shift into employee expenses, but elevated levels are not expected to continue [41] Question: Updates on remaining nonperforming assets - No material updates on the remaining loans, but management is optimistic about their status [45] Question: Share repurchase strategy - The company aims to balance share repurchases with the need to grow consolidated CET1 capital [52]