8-K
PEOPLES FINANCIAL SERVICES CORP. (PFIS)
8-K
2025-08-22
For: 2025-08-22
View Original
Added on
April 06, 2026
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORTPursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: August 22, 2025
(Date of earliest event reported)
PEOPLES FINANCIAL SERVICES CORP.
(Exact name of registrant as specified in its Charter)
| PA | 001-36388 | 23-2391852 |
|---|---|---|
| (State or other jurisdiction | (Commission file number) | (IRS Employer |
| of incorporation) | Identification No.) |
102 E. Drinker Street, Dunmore, PA 18512
(Address of Principal Executive Offices) (Zip Code)
(570) 346-7741
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities<br>Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange<br>Act (17 CFR 240.14a-12) |
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| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under<br>the Exchange Act (17 CFR 240.14d-2(b)) |
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| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under<br>the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $2.00 par value | PFIS | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 7.01 | Regulation FD Disclosure. |
|---|
The management of Peoples Financial Services Corp. (the “Company”) anticipates meetings with investors during 2025. A copy of presentation materials will be made available on the investor relations section of the Company’s website (https://ir.psbt.com/investor-resources/presentations/default.aspx) and is furnished as exhibit 99.1 to this report. All information included in this presentation is presented as of the dates indicated, and the Company does not assume any obligation to correct or update such information in the future. The Company disclaims any inferences regarding the materiality of such information which otherwise may arise as a result of it furnishing such information under Item 7.01 of this Form 8-K.
| Item 9.01 | Financial Statements and Exhibits |
|---|
(d) Exhibits
The following exhibits are filed with this form 8-K:
| Exhibit No. | Description |
|---|---|
| 99.1 | Q2 2025 Investor Presentation |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PEOPLES FINANCIAL SERVICES CORP. | |
|---|---|
| By: | /s/ James M. Bone, Jr., CPA |
| James M. Bone, Jr., CPA | |
| Executive Vice President and Chief Financial Officer | |
| Principal Financial Officer |
Dated: August 22, 2025
Exhibit 99.1
| Peoples Financial Services Corp.<br>Q2 2025 Investor<br>Presentation<br>August 2025 | ||||||
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| This presentation (this “Presentation”) has been prepared solely for general informational purposes by Peoples Financial Services Corp. (the “Company,” the “holding<br>company,” “we” or “our”), a bank holding company registered under the Bank Holding Company Act of 1956, as amended, and 100% owner of Peoples Security Bank and Trust<br>Company (the "Bank"), a Pennsylvania state-chartered bank. No representation or warranty as to the accuracy, completeness, or fairness of such information is being made by<br>the Company or any other person, and neither the Company, any of its affiliates nor any other person shall have any liability for any information contained herein, or for any<br>omissions from this Presentation or any other written or oral information or communications transmitted or made available to the recipient by the Company or its affiliates or any<br>other person in the course of the recipient’s evaluation of the Company. This Presentation may contain statistics and other data that in some cases has been obtained or<br>compiled from information made available by third-party service providers. The Company makes no representation or warranty, express or implied, with respect to the accuracy,<br>reasonableness or completeness of such information. Certain of the information contained herein may be derived from information provided by industry sources. The Company<br>believes that such information is accurate and that the sources from which it has been obtained are reliable. The Company cannot guarantee the accuracy of such information,<br>however, and has not independently verified such information. The Company is not making any implied or express representation or warranty as to the accuracy or<br>completeness of such information or of the information summarized herein. The Company expressly disclaims any and all liability which may be based on such information,<br>errors therein or omissions therefrom. In addition to financial measures presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this Presentation<br>contains certain non-GAAP financial measures, including, without limitation, tangible common equity (“TCE”), tangible assets (“TA”), tangible book value per share (“TBVPS”),<br>and return on average tangible common equity (“ROATCE”). These non-GAAP financial measures are not intended to be considered in isolation and should be considered only<br>as supplemental to, and not as a substitute for or superior to, financial measures prepared in accordance with GAAP.<br>Forward-Looking Statements<br>This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of<br>1934, as amended, which are subject to risks and uncertainties. These statements are based on assumptions and may describe future plans, strategies and expectations of<br>Peoples Financial Services Corp. and its subsidiaries that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which<br>are beyond our control). These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar<br>expressions. All statements in this report, other than statements of historical facts, are forward-looking statements.<br>Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Important factors that could cause our actual results to differ materially from<br>those in the forward-looking statements include, but are not limited to: macroeconomic trends, including interest rates and inflation and their effect on our investment values; the<br>effects of any recession in the United States; the impact on financial markets from geopolitical conflict, including from wars, military conflict or trade policies, including tariffs, or<br>retaliatory tariffs, tariff counter-measures, or the threat of such actions; impairment charges relating to our investment portfolio; credit risks in connection with our lending<br>activities; the economic health of our market area; our exposure to commercial and industrial, construction, commercial real estate, and equipment finance loans; our ability to<br>maintain an adequate allowance for credit losses; access to liquidity; the strength of our customer deposit levels; unrealized losses; reliance on our subsidiaries; accounting<br>procedures, policies and requirements; changes in the value of goodwill; future pension plan costs; our ability to retain key personnel; the strength of our disclosure controls and<br>procedures; environmental liabilities; reliance on third-party vendors and service providers; competition from non-bank entities; the development and us of AI in business<br>processes, services, and products; our ability to prevent, detect and respond to cybersecurity threats and incidents; a failure of information technology, whether due to a breach,<br>cybersecurity incident, or ability to keep pace with growth and developments; our ability to comply with privacy and data protection requirements; changes in U.S. or regional<br>economic conditions; our ability to compete effectively in our industry; the soundness of other financial institutions; adverse changes (or the threat of such changes) in laws and<br>regulations; fiscal and monetary policies of the federal government and its agencies; a failure to meet minimum capital requirements; our ability to realize the anticipated<br>benefits of the FNCB merger; future acquisitions or a change in control. Additional factors that may affect our results are discussed in Part I, Item 1A of our Annual Report on<br>Form 10-K for the year ended December 31, 2024, in Part II, Item 1A of this report, and in reports we file with the Securities and Exchange Commission from time to time.<br>These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Except as required<br>by applicable law or regulation, we do not undertake, and specifically disclaim any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.<br>Disclaimer<br>2 | ||||||
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| Q2 2025 Results<br>Note: Consolidated (GAAP) financial data as June 30, 2025<br>(1) ROATCE, net interest margin (FTE), efficiency ratio, TCE / TA, and TBVPS are non-GAAP financial measures; please see pages 24 and 25 for a reconciliation 3<br>Operating<br>Results<br>• Net income of $17 million, or $1.68 per diluted share for the three months ended June 30, 2025<br>• ROAA of 1.36%, ROATCE (1) of 17.7%, net interest margin (FTE) (1) of 3.69%, and efficiency ratio (1) of 53.9%<br>• The Company completed its merger with FNCB on July 1, 2024, providing increased scale, diversified earnings,<br>and improved liquidity position<br>• Q2 2025 results reflect execution on merger initiatives including realization of cost savings and purchase<br>accounting accretion<br>Deposits<br>• Total deposits of $4.3 billion<br>• Total cost of deposits of 1.91%<br>• Non-maturity deposits of $3.6 billion, or 83.3% of total deposits<br>• Noninterest bearing deposits of $899.6 million, or 20.9% of total deposits<br>Loans<br>• Loans of $4.0 billion<br>• Loans to total assets of 78.3%<br>• Q2 2025 loan yields (FTE) increased 15 bps QoQ to 6.07%<br>• Loan / deposit ratio of 93.2%<br>Asset<br>Quality<br>• Nonperforming assets to total assets of 0.34%<br>• Nonperforming loans to total loans of 0.44%<br>• Net charge-offs of $0.8 million in the first six months; annualized percentage of 0.04%<br>• ACL of $40.9 million, or 1.02% of loans HFI<br>Capital &<br>Liquidity<br>• Tangible common equity to tangible assets increased 11 bps to 7.74% (1)<br>• Tangible book value per share increased $1.40 QoQ to $38.75 (1)<br>• Total available liquidity of $2.3 billion at June 30, 2025, including ample cash and securities position of $669 million<br>• The Company completed a private placement of $85.0 million of subordinated notes to bolster capital ratios<br>• The Company redeemed $33.0 million of subordinated notes due in June 2030 | ||||||
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| Note: Consolidated (GAAP) financial data as June 30, 2025<br>(1) TCE / TA, net interest margin (FTE), efficiency ratio, and tangible book value per share are non-GAAP financial measures; please see pages 24 and 25 for a reconciliation 4<br>Peoples Financial Services Corp. (NASDAQ: PFIS)<br>2014 2014 2017 2021 2024 2025<br>The First National Bank<br>of Hallstead is founded<br>Launches growth strategy expanding into the<br>Greater Lehigh Valley and Philadelphia MSA<br>PFIS begins trading on NASDAQ<br>exchange (uplisted from OTC)<br>PFIS acquires FNCB<br>Bancorp, Inc.<br>$5.0B bank with operations<br>in PA, NY, & NJ<br>PFIS acquires Penseco<br>Financial Services Corp.<br>Regional HQ in Lehigh Valley established<br>(3rd fastest growing MSA in PA)<br>Opened Pittsburgh, PA and<br>Piscataway, NJ branches<br>1905 2013<br>($ in billions, except per share data)<br>BALANCE SHEET 2021 2022 2023 2024 2024 Q2 2025 Q1 2025 Q2<br>Assets $3.37 $3.55 $3.74 $5.09 $3.62 $5.00 $5.11<br>Net Loans $2.30 $2.70 $2.83 $3.95 $2.85 $3.95 $3.96<br>Deposits $2.96 $3.05 $3.28 $4.41 $3.06 $4.32 $4.29<br>NPAs / Assets (%) 0.15 0.10 0.11 0.46 0.23 0.47 0.34<br>ACL / Loans HFI (%) 1.22 1.01 0.77 1.05 0.81 1.03 1.02<br>TCE / TA (%) (1) 8.36 7.22 7.53 7.20 7.81 7.63 7.74<br>Risk-Based Capital Ratio (%) 13.56 12.13 14.16 12.34 14.02 12.74 14.29<br>FINANCIAL PERFORMANCE 2021 2022 2023 2024 2024 Q2 2025 Q1 2025 Q2<br>ROAA (%) 1.41 1.12 0.74 0.19 0.36 1.22 1.36<br>ROAE (%) 13.34 11.87 8.32 2.07 3.86 12.53 13.87<br>Cost of Deposits (%) 0.27 0.42 1.82 2.29 2.32 1.93 1.91<br>Net Interest Margin (FTE) (%) (1) 2.99 3.02 2.54 2.84 2.28 3.47 3.69<br>Efficiency Ratio (%) (1) 54.7 55.9 64.1 63.8 74.5 55.8 53.9<br>Diluted Earnings Per Share $6.02 $5.28 $3.83 $0.99 $0.46 $1.49 $1.68<br>TBV Per Share (1) $38.54 $35.19 $39.35 $35.88 $39.31 $37.35 $38.75 | ||||||
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| 5<br>Branch Footprint and Deposit Market Share<br>Top 10 Pennsylvania Community Banks<br># Company<br>Assets<br>($B)<br>1 S&T Bancorp, Inc. $9.80<br>2 Univest Financial Corporation $7.91<br>3 Mid Penn Bancorp, Inc. $6.34<br>4 CNB Financial Corporation $6.30<br>5 Orrstown Financial Services, Inc. $5.39<br>6 Semperverde Holding Co $5.20<br>7 Peoples Financial Services Corp. $5.10<br>8 Penn Community Mutual Holdings Inc $3.00<br>9 Citizens Financial Services, Inc. $2.96<br>10 NexTier Incorporated $2.82<br>Branch Footprint #2 in Scranton MSA Deposit Market Share and #7<br>Largest Pennsylvania Community Bank(1)<br>ScrantonꟷWilkes-Barre, PA MSADeposit Market Share<br># Company<br>Deposits<br>($B)<br>Market<br>Share (%)<br>1 The PNC Finl Svcs Grp $3.55 22.3<br>2 Peoples Financial Services Corp. $2.57 16.1<br>3 Fidelity D & D Bancorp Inc. $1.64 10.3<br>4 M&T Bank Corp. $1.45 9.1<br>5 Cmnty Finl System Inc $1.31 8.2<br>6 Wells Fargo & Co. $1.14 7.1<br>7 NBT Bancorp Inc. $0.72 4.5<br>8 F.N.B. Corp. $0.68 4.3<br>9 Citizens Financial Group Inc. $0.61 3.8<br>10 Penns Woods Bancorp Inc. $0.54 3.4<br>New Branch Location<br>Note: Bank-level financial data as of June 30, 2025; branch-level deposit data as of June 30, 2024<br>(1) Banks with total assets less than $10.0B, total assets shown at bank-level | ||||||
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| 6<br>• Population of ~572k people; the Scranton—Wilkes-Barre,<br>PA MSA includes 23 PFIS branches<br>• ~16% market share; accounts for ~57% of PFIS’s deposit<br>franchise<br>• Main businesses include manufacturing, distribution, and<br>back-office centers (1)<br>• Ideal location in Boston-Washington metro corridor (1)<br>Principal Markets Overview<br>• Population of ~38k people; Susquehanna County includes<br>4 PFIS branches<br>• ~65% market share; accounts for ~27% of PFIS’s deposit<br>franchise<br>• The largest employers are education, healthcare,<br>government, oil & gas, and recreation(2)<br>• Population of ~879k people; the Allentown-Bethlehem-Easton, PA-NJ MSA includes 3 PFIS branches<br>• ~1.4% market share; accounts for ~6.8% of PFIS’s deposit<br>franchise<br>• Top industries include healthcare, warehousing,<br>manufacturing, and education (2,3)<br>• The Lehigh Valley ranked as one of the U.S. hotspots for<br>business attraction and expansion in 2024, placing third<br>in the country for regions its size (3)<br>Scranton – Wilkes-Barre, PA (MSA) Susquehanna, PA (County)<br>Allentown-Bethlehem-Easton, PA-NJ (MSA) Principal Market Employers<br>Source: S&P Capital IQ Pro unless otherwise indicated; branch-level deposit data as of June 30, 2024<br>(1) ScrantonPlan.com // (2) PA.gov // (3) LehighValley.org | ||||||
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| Experienced Management Team<br>Note: Years at Bank includes time spent at companies acquired by PFIS 7<br>Gerard A. Champi – Chief Executive Officer Years in Banking: 42 | Years at Bank: 34<br>Gerard A. Champi, was appointed Chief Executive Officer the Company and the Bank effective January 1, 2025, age 64. Mr. Champi had been<br>with FNCB Bank since 1991 and served in various leadership roles in the Retail, Commercial Sales, and Executive Divisions.<br>Thomas P. Tulaney – President Years in Banking: 41 | Years at Bank: 14<br>Thomas P. Tulaney was appointed to President of the Company and the Bank effective January 1, 2025, age 65. In December 2018, he<br>assumed oversight of the Bank’s Wealth Management Division. He joined Penn Security Bank and Trust Company in April 2011 as Executive<br>Vice President and Deputy Chief Lending Officer.<br>James M. Bone, Jr., CPA – EVP & Chief Financial Officer Years in Banking: 39 | Years at Bank: 39<br>James M. Bone, Jr., CPA, EVP and CFO, of the Company and the Bank, age 63. Mr. Bone was appointed to his current position as of March<br>31, 2025. Prior to his appointment, Mr. Bone served as EVP and Chief Operations Officer of the Company and the Bank, a position he held<br>since the consummation of the FNCB merger on July 1, 2024. From September 2012 until the merger, he served as EVP and Chief Financial<br>Officer/Treasurer of FNCB Bancorp., Inc. and its banking subsidiary, FNCB Bank.<br>John R. Anderson III – EVP & Chief Operating Officer Years in Banking: 35 | Years at Bank: 35<br>John R. Anderson III, EVP and COO, of the Company and the Bank, age 58. Mr. Anderson was appointed to his current position as of March<br>31, 2025. Prior to his appointment, Mr. Anderson served as EVP and CFO from March 2018, after serving as the SVP and Interim Principal<br>Financial and Accounting Officer since April 2016. Prior to that he was VP/Planning and Statistical Analyst, of Penn Security Bank and Trust<br>Company since May 2011.<br>Timothy H. Kirtley – EVP and Chief Risk Officer Years in Banking: 33 | Years at Bank: 9<br>Timothy H. Kirtley, Executive Vice President, Chief Risk Officer of the Company and the Bank, and Corporate Secretary, age 55. Mr. Kirtley<br>was appointed to his current position in April 2020, and served as Executive Vice President and Chief Credit Officer from July 2016 until April<br>2020. | |
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| Experienced Management Team<br>Note: Years at Bank includes time spent at companies acquired by PFIS 8<br>Jeffrey A. Drobins – EVP & Chief Lending Officer Years in Banking: 18 | Years at Bank: 11<br>Jeffrey A. Drobins, Executive Vice President and Chief Lending Officer of the Company and the Bank, age 40. Mr. Drobins was appointed to<br>his current position in October 2022, after serving as the Senior Vice President and Lehigh Valley Market President since April 2016. Prior to<br>that he was Vice President and Commercial Relationship Manager since September 2014.<br>Susan L. Hubble – EVP and Chief Information Officer Years in Banking: 25 | Years at Bank: 25<br>Susan L. Hubble, Executive Vice President, Chief Information Officer of the Company and the Bank, age 69. Ms. Hubble was appointed to her<br>current position in December 2019. Prior to that, she was Senior Vice President, Senior Information Technology Officer, since April 2019. Prior<br>to that, she was Vice President, Information Technology Officer since July 2014.<br>Mary G. Cummings, Esquire – EVP and General Counsel Years in Banking: 13 | Years at Bank: 13<br>Mary Griffin Cummings, Esquire, was appointed to Executive Vice President and General Counsel of the Company and the Bank effective July<br>1, 2024, age 62. From April 2018 until the FNCB merger, Ms. Cummings served as EVP and General Counsel of FNCB Bancorp, Inc. and<br>FNCB Bank.<br>Neal D. Koplin – Senior EVP and Chief Banking Officer Years in Banking: 43 | Years at Bank: 11<br>Neal D. Koplin, Senior Executive Vice President and Chief Banking Officer of the Company and the Bank, age 64. Mr. Koplin was appointed to<br>his current position in December 2019. Prior to that, he was Executive Vice President and Lehigh Valley Division Head since August 2014.<br>Stephanie A. Westington, CPA – SVP and Chief Accounting Officer Years in Banking: 35 | Years at Bank: 13<br>Stephanie A. Westington, CPA, SVP and Chief Accounting Officer of the Company and the Bank, age 59. Ms. Westington was appointed to her<br>current position in April 2025. Ms. Westington previously served as SVP and Chief Profitability Officer of the Company and the Bank, a position<br>she held since the consummation of the FNCB merger on July 1, 2024. From April 2022 until the merger, she served as SVP and Chief<br>Accounting Officer of FNCB Bancorp, Inc. and its subsidiary, FNCB Bank. Prior to that, she was SVP and Controller since July 2012.<br>Amy E. Vieney – SVP and Chief Human Resource Officer Years in Banking: 3 | Years at Bank: 3<br>Amy E. Vieney, Senior Vice President and Chief Human Resource Officer of the Company and the Bank, age 50. Ms. Vieney joined Peoples in<br>her current position in June 2022. From December 2017 through June 2022, she served as Senior Director, Human Resources at St. Luke’s<br>University Health Network, headquartered in Bethlehem, Pennsylvania. |
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| Strong Balance Sheet Growth<br>Note: Consolidated (GAAP) financial data as of June 30, 2025 9<br>$2,963 $3,047 $3,279<br>$4,408 $4,287<br>–<br> $1,000<br> $2,000<br> $3,000<br> $4,000<br> $5,000<br> $6,000<br>2021 2022 2023 2024 2025Q2<br>$2,301<br>$2,703 $2,828<br>$3,952 $3,957<br>–<br> $1,000<br> $2,000<br> $3,000<br> $4,000<br> $5,000<br> $6,000<br>2021 2022 2023 2024 2025Q2<br>$340 $315 $340<br>$469 $494<br>–<br> $100<br> $200<br> $300<br> $400<br> $500<br> $600<br>2021 2022 2023 2024 2025Q2<br>$3,369 $3,554 $3,742<br>$5,092 $5,108<br>–<br> $1,000<br> $2,000<br> $3,000<br> $4,000<br> $5,000<br> $6,000<br>2021 2022 2023 2024 2025Q2<br>($ in millions) ($ in millions)<br>($ in millions) ($ in millions)<br>Total Assets Total Net Loans<br>Total Deposits Total Equity | ||||||
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| Non Owner<br>Occ. CRE,<br>20.9%<br>1-4 Family,<br>19.1%<br>Commercial<br>& Industrial,<br>17.6%<br>Owner<br>Occ. CRE,<br>14.1%<br>Multifam,<br>10.4%<br>Other (2),<br>10.3%<br>Constr & Land Dev,<br>7.3%<br>Farm, 0.3%<br>Gross Loan<br>Balance<br>% of Consl.<br>TRBC<br>1-4 Family Residential $776,524 140%<br>Non-Owner Occupied CRE 854,028 154%<br>Owner Occupied CRE 584,220 105%<br>Commercial & Industrial 716,480 129%<br>Construction & Land Development 248,270 45%<br>Multifamily 401,565 72%<br>Consumer 117,300 21%<br>Farm Loans 11,144 2%<br>Ag Prod - -<br>Other Loans(2) 288,542 52%<br>Total Gross Loans $3,998,073<br>Total Investment CRE (3) $1,503,863 271%<br>$2,301<br>$2,703<br>$2,828<br>$3,952 $3,957<br>–<br> $1,000<br> $2,000<br> $3,000<br> $4,000<br>2021 2022 2023 2024 2025Q2<br>Loan Portfolio Growth & Diversification<br>Note: Consolidated (GAAP) financial data as of June 30, 2025<br>(1) Bank-level loan financial data as reported in the call report // (2) Other includes leases, state and political loans, consumer loans, and other // (3) Total Investment CRE<br>includes Non-Owner-Occupied CRE, Construction & Land Development, and Multifamily loan balances 10<br>(1)<br>($ in millions)<br>Total Net Loans 6/30/25 Loan Composition(1)<br>6/30/25 Loan Concentration(1)<br>($ in thousands) | ||||||
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| Historical Bank Loan Composition & Yields<br>Note: Bank-level financial data as of June 30, 2025, 2024-year yields use the average of the quarterly average balance for the denominator 11<br>Peoples Security Bank and Trust Company Loan Composition Since 2021<br>2021 2022 2023 2024 2025Q2<br>Gross Loan Composition Balance % of Total Balance % of Total Balance % of Total Balance % of Total Balance % of Total<br>Construction $178,560 7.7% $272,103 10.0% $256,088 9.0% $278,233 7.0% $248,270 6.2%<br>1-4 Family 420,769 18.1% 478,295 17.5% 509,551 17.9% 757,774 19.0% 776,524 19.4%<br>Multifamily 189,403 8.1% 232,477 8.5% 273,076 9.6% 407,917 10.2% 401,565 10.0%<br>Comm RE (Non Farm/Res) 904,175 38.8% 1,079,410 39.5% 1,112,863 39.0% 1,426,105 35.7% 1,438,248 36.0%<br>C&I 353,341 15.2% 354,657 13.0% 373,211 13.1% 698,433 17.5% 716,480 17.9%<br>Farm RE 15,467 0.7% 11,513 0.4% 11,769 0.4% 10,150 0.3% 11,144 0.3%<br>Agricultural 9 0.0% 5 0.0% 1 0.0% 0 0.0% 0 0.0%<br>Consumer 73,353 3.1% 83,090 3.0% 81,854 2.9% 132,105 3.3% 117,300 2.9%<br>Leases 0 0.0% 0 0.0% 0 0.0% 10,711 0.3% 10,312 0.3%<br>Other 194,504 8.3% 218,566 8.0% 231,734 8.1% 272,077 6.8% 278,230 7.0%<br>Total Gross Loans $2,329,581 100.0% $2,730,116 100.0% $2,850,147 100.0% $3,993,505 100.0% $3,998,073 100.0%<br>Yield on 1-4 Family Loans 4.16% 3.03% 3.11% 4.18% 4.04%<br>Yield on All Other RE Loans 3.97% 4.30% 5.28% 5.99% 5.82%<br>Yield on C&I Loans 3.63% 5.02% 6.07% 8.33% 9.06%<br>Yield on Loans and Leases 3.89% 3.99% 4.76% 5.56% 6.22%<br>Yield on Earning Assets 3.26% 3.42% 4.26% 5.99% 5.77% | ||||||
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| Non-Owner Occupied CRE Portfolio Composition at June 30, 2025<br>Note: Bank-level financial data as of June 30, 2025 12<br>($ in thousands) Non-Owner Occupied<br>Loan Category Number<br>of Loans<br>Average<br>Loan Size Loan Balance Wtd Average<br>Interest Rate<br>Multifamily (5+ Units) 315 $ 1,596 $ 502,786 5.15%<br>Office 147 $ 1,369 $ 201,185 4.82%<br>Retail – Unanchored 161 $ 1,188 $ 191,341 5.02%<br>Retail – Anchored 50 $ 2,577 $ 128,829 4.64%<br>Industrial / Warehouse 70 $ 1,379 $ 96,536 4.69%<br>Healthcare 26 $ 2,978 $ 77,431 5.52%<br>Hospitality (Hotel / Motel) 30 $ 1,731 $ 51,920 5.81%<br>Medical Office Building 19 $ 2,622 $ 49,825 4.03%<br>Self-storage / Mini-warehouse 17 $ 1,935 $ 32,894 5.42%<br>Other 62 $ 513 $ 31,814 6.29%<br>Land – Unimproved 112 $ 244 $ 27,374 7.15%<br>Gas Station / Convenience Store 25 $ 903 $ 22,572 5.30%<br>Restaurant / Bar 27 $ 774 $ 20,910 5.89%<br>Land Acquisition & Development - Commercial 43 $ 378 $ 16,274 7.27%<br>Land Acquisition & Development - Residential 65 $ 223 $ 14,481 6.80%<br>School / Campus Real Estate 9 $ 1,161 $ 10,451 5.37%<br>1-4 Family Residential (For Sale Construction) 10 $ 896 $ 8,965 7.33%<br>Mobile Home Park 7 $ 1,120 $ 7,841 6.14%<br>1-4 Family Residential – Rental Property 11 $ 568 $ 6,250 6.83%<br>1-4 Family Residential (Primary / Secondary Residence) 17 $ 321 $ 5,457 5.84%<br>Recreational 6 $ 413 $ 2,477 7.78%<br>Student Housing 6 $ 279 $ 1,673 3.83%<br>Unassigned 11 $ 72 $ 787 7.71%<br>Farmland 1 $ 132 $ 132 6.85%<br>Dealership 1 $ 78 $ 78 8.50%<br>Parking Lot 1 $ 60 $ 60 4.25%<br>Total CRE loans, gross 1,249 $ 1,209 $ 1,510,343 5.17%<br>CRE Portfolio Detailed Breakdown by Asset Type | ||||||
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| Note: Bank-level financial data as of June 30, 2025 13<br>($ in thousands) Owner Occupied<br>Loan Category Number<br>of Loans<br>Average<br>Loan Size Loan Balance Wtd Average<br>Interest Rate<br>Industrial / Warehouse 241 $ 716 $ 172,466 5.45%<br>Office 223 $ 391 $ 87,190 5.83%<br>Other 136 $ 503 $ 68,352 5.50%<br>Recreational 55 $ 1,023 $ 56,265 7.21%<br>Retail – Unanchored 100 $ 446 $ 44,594 5.38%<br>School / Campus Real Estate 21 $ 1,902 $ 39,935 3.85%<br>Gas Station / Convenience Store 40 $ 868 $ 34,730 4.57%<br>Restaurant / Bar 69 $ 305 $ 21,015 6.42%<br>Medical Office Building 24 $ 740 $ 17,757 5.35%<br>Dealership 17 $ 825 $ 14,031 5.48%<br>Healthcare 12 $ 676 $ 8,112 7.25%<br>Retail – Anchored 3 $ 2,085 $ 6,256 4.93%<br>Unassigned 42 $ 89 $ 3,731 5.77%<br>Parking Lot 4 $ 700 $ 2,800 5.97%<br>Land Acquisition & Development - Commercial 2 $ 456 $ 912 6.22%<br>1-4 Family Residential – Rental Property 2 $ 202 $ 404 6.67%<br>1-4 Family Residential (Primary / Secondary Residence) 6 $ 54 $ 325 8.54%<br>Self-storage / Mini-warehouse 1 $ 30 $ 30 5.00%<br>Total CRE loans, gross 998 $ 580 $ 578,906 5.58%<br>CRE Portfolio Detailed Breakdown by Asset Type<br>The Bank primarily underwrites CRE loans with loan-to-value ratios at or below 75% at origination<br>Owner Occupied CRE Portfolio Composition at June 30, 2025 | ||||||
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| Commercial Real Estate Portfolio Details<br>Note: Bank-level financial data as of June 30, 2025 14<br>$124<br>$183<br>$177<br>$196<br>$124<br>5.91%<br>8.74% 8.49%<br>9.39%<br>5.94%<br>0.00%<br>2.00%<br>4.00%<br>6.00%<br>8.00%<br>10.00%<br>12.00%<br> $-<br>$50<br>$100<br>$150<br>$200<br>$250<br>2025 2026 2027 2028 2029<br>Balance % of CRE Loans<br>• CRE loans schedule to mature in 2030 and after are $1.3 billion<br>or 62% of the Total CRE Loans<br>$212<br>$149<br>$223<br>$109<br>$212<br>10.13%<br>7.14%<br>10.66%<br>5.21%<br>10.17%<br>0.00%<br>2.00%<br>4.00%<br>6.00%<br>8.00%<br>10.00%<br>12.00%<br> $-<br> $50<br> $100<br> $150<br> $200<br> $250<br>2025 2026 2027 2028 2029+<br>Balance % of CRE Loans<br>• Fixed Rate CRE loans of $857 million or 41% of the Total CRE<br>Loans<br>• Adjustable Rate CRE loans scheduled to reprice in 2025 are<br>$212 million or 10% of the Total CRE Loans<br>($ in millions) ($ in millions)<br>CRE Maturity Schedule CRE Repricing Schedule | ||||||
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| RMBS,<br>37.6%<br>Treasury<br>Secs, 25.5%<br>State &<br>Political<br>Subdiv<br>Secs,<br>24.7%<br>Other Securities,<br>4.3%<br>CMBS, 4%<br>Structured<br>Financial<br>Products, 2.1% ABS, 1% Govt & Agency<br>Secs, 0.3%<br>Investment Portfolio Composition & Performance<br>Note: Bank-level financial data as of June 30, 2025<br>(1) Each category percentage is the fair value of the securities divided by the fair value of all securities // (2) ~$504.5mm of fair value available-for-sale securities and ~$75.1mm of<br>carrying value held-to-maturity securities 15<br>• As of June 30, 2025, the Bank has ~$579.6 million of debt<br>securities(2)<br>• This represents 11.4% of total assets<br>• The securities portfolio primarily consists of U.S.<br>government agency & sponsored agency securities, and<br>state & political subdivision securities<br>• Other securities portfolio information:<br>• Average Life: 4.76 years<br>• Yield on Debt & Equity Securities: 3.24%<br>• Market Value / Book Value: 91.6%<br>Asset Class Breakdown(1) Commentary | ||||||
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| C&I - Other, 12%<br>C&I - Equipment<br>Financing, 8%<br>CRE (incl.<br>Multifamily),<br>65%<br>1-4 Family<br>Residential,<br>11%<br>Consumer, 4%<br>Asset Quality Summary<br>Note: Consolidated (GAAP) financial data as of June 30, 2025 16<br>• Nonperforming loans to total loans:<br>• 0.44% at June 30, 2025 as compared to 0.58% at March<br>31, 2025<br>• Allowance for credit losses on loans to<br>nonperforming loans:<br>• 235.14% at June 30, 2025 as compared to as of 178.5%<br>at March 31, 2025<br>• Allowance for credit losses on loans:<br>• $40.9 million, or 1.02% of total loans, as of June 30,<br>2025, as compared to $41.1 million, or 1.03% of total<br>loans, at March 31, 2025<br>($ in thousands)<br>Nonaccrual<br>Loans with<br>No Related<br>Allowance<br>Nonaccrual<br>Loans with<br>Related<br>Allowance<br>Total<br>Nonaccrual<br>Loans<br>C&I - Other $1,188 $906 $2,094<br>C&I - Equipment Financing $255 $1,196 $1,451<br>CRE (incl. Multifamily) $11,261 – $11,261<br>1-4 Family Residential $1,885 – $1,885<br>Consumer $699 – $699<br>TOTAL $15,288 $2,102 $17,390<br>($ in thousands)<br>Q2 2025 Q1 2025<br>Total nonperforming loans $17,390 $23,002<br>Nonperforming loans to total loans 0.44% 0.58%<br>Total nonperforming assets $17,462 $23,684<br>Nonperforming assets to total assets 0.34% 0.47%<br>Net charge-offs (net of recoveries) ($75) $922<br>Net charge-offs to avg. loans (annualized) (0.01%) 0.09%<br>YTD net charge-offs (net of recoveries) $847 $922<br>YTD net charge-offs to avg. loans (annualized) 0.04% 0.09%<br>Summary Metrics<br>Nonperforming Loans by Type | ||||||
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| Relationship-based core deposits<br>Note: Consolidated (GAAP) financial data as of June 30, 2025, Fed Funds Target Rate represents the day-weighted upper bound of the Fed Funds target 17<br>0%<br>1%<br>2%<br>3%<br>4%<br>5%<br>6%<br>Latest Interest Rate Cycle<br>44% 49% 54% 51% 44% 49% 49%<br>19%<br>18% 17% 17%<br>13%<br>11% 12%<br>19%<br>20% 20% 22%<br>24% 21% 23%<br>19% 13% 10% 10%<br>19% 18% 17%<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br>60%<br>70%<br>80%<br>90%<br>100%<br>2019 2020 2021 2022 2023 2024 2025Q2<br>Deposit Composition and Total Cost of Deposits<br>Cost of Total Deposits vs. Fed Funds Target Rate | ||||||
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| Regulatory Consolidated Capital Ratios<br>Note: Consolidated (GAAP) financial data as of June 30, 2025 18<br>9.3% 9.2% 9.0%<br>8.5%<br>8.0%<br>8.7%<br>10.2%<br>10.9%<br>12.2% 12.3%<br>11.1%<br>12.1%<br>10.4%<br>11.1%<br>15.1%<br>13.6%<br>12.1%<br>14.2%<br>12.3%<br>14.3%<br>0.0%<br>2.0%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br>18.0%<br>2020 2021 2022 2023 2024 2025Q2<br>Leverage Ratio CET1 Ratio Tier 1 Ratio Total RBC Ratio | ||||||
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| Non-Interest Income & Expense<br>Note: Consolidated (GAAP) financial data as of June 30, 2025; operating revenue defined as net interest income plus noninterest income<br>(1) 2025Q2 YTD for the annualized six months ended June 30, 2025 19<br>(1)<br>$1 Billion<br>in AUM under Trust and Wealth<br>Advisors<br>53.9%<br>Efficiency ratio for Q2 ‘25<br>$109.9M<br>Deposits per branch<br>16.54 15.94<br>13.74<br>12.64<br>13.95 13.46 12.58<br>2019 2020 2021 2022 2023 2024 2025Q2 YTD<br>1.70<br>1.45<br>1.34<br>1.43 1.42<br>1.52<br>1.61<br>2019 2020 2021 2022 2023 2024 2025Q2 YTD<br>(1)<br>(1)<br>New HQ and Lancaster<br>branch opening<br>second half 2025<br>Highlights Non-Interest Income / Operating Revenue (%)<br>Net-Operating Expense / Average Assets (%) | ||||||
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| Net Interest Income & Net Interest Margin<br>Note: Consolidated (GAAP) financial data as of June 30, 2025; Annualized NII as of June 30, 2025; Cost of funds includes non-interest bearing deposits<br>(1) Net interest margin is a non-GAAP financial measure; please see page 25 for a reconciliation // (2) 2025Q2 YTD for the annualized six months ended June 30, 2025 20<br>$84,635 $95,749<br>$86,754<br>$115,989<br>$163,490<br>2.99% 3.02%<br>2.54%<br>2.84%<br>3.60%<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>6.00%<br> $-<br> $30,000<br> $60,000<br> $90,000<br> $120,000<br> $150,000<br> $180,000<br>2021 2022 2023 2024 2025Q2<br>YTD<br>NII NIM (FTE)¹<br>3.94% 4.04%<br>4.81%<br>5.62%<br>5.99%<br>1.94%<br>1.67%<br>1.77%<br>2.43%<br>3.12%<br>0.35%<br>0.51%<br>1.91%<br>2.40% 2.06%<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>6.00%<br>2021 2022 2023 2024 2025Q2 YTD<br>Loan Yield Securities Yield Cost of Funds<br>(2) (2)<br>($ in thousands)<br>Net Interest Income (NII) and Net Interest Margin (NIM) FTE (1) Key Components of NII and NIM | ||||||
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| Strong balance sheet growth paired with efficient earnings and high-quality assets.<br>Financial Highlights<br>Note: Consolidated (GAAP) financial data as of June 30, 2025; operating revenue defined as net interest income plus noninterest income<br>(1) Tangible equity, TCE / TA, net interest margin (FTE), and efficiency ratio are non-GAAP financial measures; please see pages 24 and 25 for a reconciliation // (2) Consolidated<br>average rate paid across total interest-bearing liabilities and noninterest-bearing deposits 21<br>12/31/2021<br>For the Years Ended: For the Quarters Ended: 6/30/2025<br>12/31/2021 12/31/2022 12/31/2023 12/31/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 CAGR<br>Balance Sheet<br>Total Assets ($000) 3,369,483 3,553,515 3,742,289 5,091,657 5,360,138 5,091,657 4,999,358 5,107,879 12.6%<br>Total Securities ($000) 588,535 568,882 483,876 606,234 646,367 606,234 591,505 582,812 (0.3%)<br>Total Net Loans ($000) 2,301,198 2,702,644 2,828,252 3,951,729 4,031,145 3,951,729 3,950,905 3,957,182 16.8%<br>Total Deposits ($000) 2,963,397 3,046,598 3,279,037 4,407,552 4,637,864 4,407,552 4,316,927 4,287,349 11.1%<br>Tangible Equity ($000) (1) 276,288 251,875 277,052 358,767 362,186 358,767 373,380 387,332 10.1%<br>Loans / Deposits (%) 78.6 89.6 86.9 90.6 87.7 90.6 92.5 93.2<br>(Cash + Securities)/ Assets (%) 25.9 17.3 18.1 14.8 17.6 14.8 13.4 12.6<br>TCE / TA (%) (1) 8.4 7.2 7.5 7.2 6.9 7.2 7.6 7.7<br>Total Capital Ratio (%) 13.6 12.1 14.2 12.4 12.0 12.4 12.7 14.3<br>Profitability<br>Net Income ($000) 43,519 38,090 27,380 8,498 (4,337) 6,087 15,009 16,956<br>ROAA (%) 1.41 1.12 0.74 0.19 (0.33) 0.47 1.20 1.36<br>ROAE (%) 13.3 11.9 8.3 2.1 (3.6) 5.1 12.5 13.9<br>Net Interest Margin (FTE) (%) (1) 2.99 3.02 2.54 2.84 3.28 3.27 3.46 3.69<br>Efficiency Ratio (%) (1) 54.9 56.3 64.5 63.2 54.9 61.0 56.2 53.9<br>Noninterest Inc/ Operating Rev (%) 13.7 12.6 13.9 13.5 12.4 12.6 12.2 15.3<br>Noninterest Exp./ AA (%) 1.79 1.84 1.80 1.99 2.01 2.23 2.19 2.22<br>Asset Quality (%)<br>NPLs / Loans (%) 0.19 0.12 0.14 0.56 0.51 0.56 0.58 0.44<br>NPAs / Assets (%) 0.15 0.10 0.11 0.46 0.41 0.46 0.47 0.34<br>ACL / Loans (%) 1.22 1.01 0.77 1.05 0.97 1.05 1.03 1.02<br>NCOs / Avg Loans (%) 0.03 0.02 0.10 0.03 0.01 0.09 0.09 0.00<br>Yields and Costs (%)<br>Yield on Total Loans and Leases (%) 3.94 4.04 4.81 5.62 6.09 5.90 5.92 6.07<br>Yield on Debt and Equity Securities (%) 1.94 1.67 1.77 2.43 3.02 3.10 2.95 3.29<br>Cost of Int-bearing Deposits (%) 0.37 0.57 2.32 2.82 2.91 2.75 2.46 2.41<br>Cost of Funds (%) 0.35 0.51 1.91 2.40 2.46 2.34 2.05 2.07<br>(2) | ||||||
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| Historical Consolidated Balance Sheet<br>Note: Consolidated (GAAP) financial data as of June 30, 2025 22<br>Year-Ended December 31, Quarter-Ended<br>($ in thousands) 2019 2020 2021 2022 2023 2024 At June 30, 2025<br>Assets<br>Cash and Cash Equivalents $31,153 $228,192 $279,933 $37,868 $187,365 $135,851 $175,739<br>Available for Sale Securities 330,478 295,911 517,321 477,703 398,927 526,329 505,181<br>Held to Maturity Securities 7,656 7,225 71,213 91,179 84,851 78,184 75,137<br>Other Securities 10,624 5,535 4,185 9,740 5,278 12,650 2,494<br> Total Cash & Securities 379,911 536,863 872,652 616,490 676,421 753,014 758,551<br>Loans, net 1,915,563 2,150,638 2,300,790 2,702,644 2,828,002 3,951,729 3,956,635<br> Allowance for credit losses 22,677 27,344 28,383 27,472 21,895 41,776 40,890<br>Loans Held for Sale 986 837 408 – 250 – 547<br> Total Net Loans 1,916,549 2,151,475 2,301,198 2,702,644 2,828,252 3,951,729 3,957,182<br>Real Estate Owned and Held for Investment 7,351 7,196 6,509 5,567 5,015 18,651 16,867<br> Goodwill 63,370 63,370 63,370 63,370 63,370 75,986 75,986<br> Intangible Assets 1,565 960 468 105 – 34,197 30,778<br>Total Intangible Assets 64,935 64,330 63,838 63,475 63,370 110,183 106,764<br>Total Servicing Rights 738 838 882 914 870 1,304 1,218<br>Total Other Assets 105,843 123,100 124,404 164,425 168,361 256,776 267,297<br> Total Assets $2,475,327 $2,883,802 $3,369,483 $3,553,515 $3,742,289 $5,091,657 $5,107,879<br>Liabilities<br>Total Deposits $1,971,489 $2,437,113 $2,963,397 $3,046,598 $3,279,037 $4,407,552 $4,287,349<br>Short-Term Borrowings 152,150 50,000 – 114,930 17,590 15,900 76,340<br>Long-Term Borrowings 32,733 14,769 2,711 555 25,000 98,637 103,449<br>Junior Subordinated Debt – – – – – 8,039 8,088<br>Subordinated Debt – 33,000 33,000 33,000 33,000 33,000 83,164<br>Total Other Liabilities 19,945 32,043 30,249 43,082 47,240 59,579 55,393<br> Total Liabilities $2,176,317 $2,566,925 $3,029,357 $3,238,165 $3,401,867 $4,622,707 $4,613,783<br>Equity<br>Common Equity $299,010 $316,877 $340,126 $315,350 $340,422 $468,950 $494,096<br> Total Equity $299,010 $316,877 $340,126 $315,350 $340,422 $468,950 $494,096<br>Tot Acc Other Comprehensive Inc (3,205) 2,149 (5,514) (56,336) (44,351) (40,695) (34,988)<br>Total Liabilities and Equity $2,475,327 $2,883,802 $3,369,483 $3,553,515 $3,742,289 $5,091,657 $5,107,879 | ||||||
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| Historical Consolidated Income Statement<br>Note: Consolidated (GAAP) financial data as of June 30, 2025<br>(1) For the three months ended June 30, 2025 // (2) Includes Realized Gain on Securities and Nonrecurring Revenue 23<br>Year-Ended December 31, Quarter-Ended(1)<br>($ in thousands) 2019 2020 2021 2022 2023 2024 2025Q2<br>Interest Income $93,381 $94,125 $94,057 $111,334 $149,851 $211,460 $65,335<br>Interest Expense 17,868 14,324 9,422 15,585 63,097 95,471 23,138<br> Net Interest Income $75,513 $79,801 $84,635 $95,749 $86,754 $115,989 $42,197<br> Provision for Credit Losses 6,100 7,400 1,750 (449) 196 19,088 (239)<br> Total Noninterest Income (2) 15,120 16,642 25,636 11,845 14,133 18,172 6,247<br> Total Noninterest Expense 55,642 54,868 55,004 62,677 66,374 89,605 28,262<br>Acquisition related expenses – – – – 1,816 17,000 66<br>Net Income before Taxes $28,891 $34,175 $53,517 $45,366 $32,501 $8,468 $20,421<br>Provision for Taxes 3,155 4,821 9,998 7,276 5,121 (30) 3,465<br> Net Income $25,736 $29,354 $43,519 $38,090 $27,380 $8,498 $16,956<br>Memo: Realized Gain on Securities 155 912 2 (2,007) 70 133 (7)<br>Memo: Nonrecurring Revenue – 600 12,153 – – – – | ||||||
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| Non-GAAP Financial Measures<br>Note: Consolidated (GAAP) financial data as of June 30, 2025 24<br>($ in thousands)<br>Reconciliation | TCE / TA, TBVPS, & ROATCE 2021Y 2022Y 2023Y 2024Y 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2<br>Total Equity $340,126 $315,350 $340,422 $468,950 $340,807 $475,051 $468,950 $481,854 $494,096<br>Less: Goodwill 63,370 63,370 63,370 76,325 63,370 76,958 76,325 75,986 75,986<br>Less: Other Intangible Assets, Net of MSRs 469 105 – 34,196 – 35,907 34,196 32,488 30,778<br>Tangible Equity $276,287 $251,875 $277,052 $358,429 $277,437 $362,186 $358,429 $373,380 $387,332<br>Less: Preferred Equity – – – – – – – – –<br>Tangible Common Equity [A] $276,287 $251,875 $277,052 $358,429 $277,437 $362,186 $358,429 $373,380 $387,332<br>Total Assets $3,369,483 $3,553,515 $3,742,289 $5,091,657 $3,616,055 $5,360,138 $5,091,657 $4,999,358 $5,107,879<br>Less: Goodwill 63,370 63,370 63,370 75,986 63,370 76,958 76,325 75,986 75,986<br>Less: Other Intangible Assets, Net of MSRs 469 105 – 34,196 – 35,907 34,196 32,488 30,778<br>Tangible Assets [B] $3,305,644 $3,490,040 $3,678,919 $4,981,475 $3,552,685 $5,247,273 $4,981,136 $4,890,884 $5,001,115<br>TCE / TA [C] = [A] / [B] 8.36% 7.22% 7.53% 7.20% 7.81% 6.90% 7.20% 7.63% 7.74%<br>Common Shares Outstanding (Actual) [D] 7,169,372 7,158,017 7,040,852 9,990,724 7,057,258 9,994,648 9,990,724 9,995,483 9,994,696<br>TBVPS (Actual) [E] = [A] * 1000 / [D] $38.54 $35.19 $39.35 $35.88 $39.31 $36.24 $35.88 $37.35 $38.75<br>Net Income [F] 16,956<br>Days in Quarter [G] 91<br>Days in Year [H] 365<br>Average Tangible Common Equity [I] $383,484<br>ROATCE [J] = ([F] / [G] * [H]) / [I] 17.73% | |||||
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| Non-GAAP Financial Measures<br>Note: Consolidated (GAAP) financial data as of June 30, 2025 25<br>($ in thousands)<br>Reconciliation | NIM & Efficiency Ratio 2021Y 2022Y 2023Y 2024Y 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 2025Q2 YTD<br>Interest income (GAAP) $94,057 $111,334 $149,851 $211,460 $38,376 $68,284 $65,803 $62,426 $65,335 $127,761<br>Plus: Adjustment to FTE 1,512 1,901 1,917 2,367 471 720 700 702 718 1,420<br>Interest income adjusted to FTE (non-GAAP) $95,569 $113,235 $151,768 $213,827 $38,847 $69,004 $66,503 $63,128 $66,053 $129,181<br>Less: Interest expense $9,422 15,585 63,097 95,471 19,460 29,040 27,292 22,878 23,138 46,016<br>Net interest income adjusted to FTE (non-GAAP) $86,147 $97,650 $88,671 $118,356 $19,387 $39,964 $39,211 $40,250 $42,915 $83,165<br>Noninterest expense (GAAP) $55,004 $62,677 $67,820 $106,726 $18,171 $35,502 $34,985 $27,353 $28,262 $55,615<br>Less: Amortization of intangible 491 363 105 3,367 – 1,665 1,702 1,683 1,684 3,367<br>Less: Acquisition related expenses – – 1,816 16,200 1,071 9,653 4,990 154 66 220<br>Noninterest expense (non-GAAP) $54,513 $62,314 $65,899 $87,159 $17,100 $24,184 $28,293 $25,516 $26,512 $52,028<br>Noninterest income (GAAP) $25,636 $11,845 $14,133 $18,336 $3,554 $5,722 $5,658 $6,256 $6,247 $12,503<br>Less: Net gains (losses) on equity securities 2 (31) (11) 132 (12) 175 (23) 71 (7) 64<br>Less: Gains on sale of fixed assets – (1,976) 81 1 13 – (12) 680 – 680<br>Less: Gain on sale of Visa Class B shares 12,153 – – – – – – – – –<br>NII (FTE) plus noninterest income (non-GAAP) $99,628 $111,502 $102,734 $136,559 $22,940 $45,511 $44,904 $45,755 $49,169 $94,924<br>Average earning assets (GAAP) 2,877,110 3,232,891 3,495,974 4,162,208 3,410,818 3,925,169 4,162,208 4,658,837 4,665,649 4,662,260<br>Net interest margin adjusted to FTE (non-GAAP) 2.99% 3.02% 2.54% 2.84% 2.28% 4.08% 3.78% 3.47% 3.69% 3.60%<br>Efficiency ratio (non-GAAP) 54.7% 55.9% 64.1% 63.8% 74.5% 53.1% 63.0% 55.8% 53.9% 54.8% | |||||
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