Business Wire | Oct 29, 2021 09:00AM EDT

CBB Bancorp, Inc. Reports Third Quarter 2021 Financial Results

Oct. 29, 2021

LOS ANGELES--(BUSINESS WIRE)--Oct. 29, 2021--October 28, 2021 - CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank (the "Bank"), announced today net income for third quarter 2021 of $7.9 million, or $0.75 per diluted share, an increase of 25.0%, compared to $6.3 million, or $0.61 per diluted share, in the prior quarter and 171.5% compared to $2.9 million, or $0.28 per diluted share, in the same period last year.

Overall Results

The acquisition of Ohana Pacific Bank was completed as of July 1, 2021, contributing to the Company's growth in total assets to $1.9 billion, a $296.2 million or 18.4% increase from the June 30, 2021 level.

Net income for third quarter 2021 was positively affected by continuing strong performance in SBA loan originations and sales, as well as declining costs of deposits. The Company's return on average assets for third quarter 2021 was 1.73% compared to 1.70% for second quarter 2021 and 0.85% for third quarter 2020. The Company's return on average equity for third quarter 2021 was 17.87%, compared to 14.91% for second quarter 2021 and 7.43% for third quarter 2020. The Company's net interest margin for third quarter 2021 was 3.62%, compared to 3.75% for second quarter 2021 and 3.20% for third quarter 2020. The efficiency ratio for third quarter 2021 was 49.0%, compared to 52.2% for second quarter 2021 and 58.8% for third quarter 2020.

Joanne Kim, President and CEO, commented, "We are pleased to announce record quarterly earnings for the third consecutive quarter. With the successful completion of the merger with Ohana Pacific Bank, we look forward to further growth in the remainder of the year in all of our markets, including our operations in Hawaii."

Net Interest Income and Margin

Net Interest Income

Net interest income for third quarter 2021 was $16.1 million, an increase of $2.5 million, or 18.7%, from second quarter 2021, and an increase of $5.4 million, or 51.1%, from third quarter 2020. The increase in net interest income was due to the acquisition of Ohana Pacific Bank, in addition to the benefit of the decline in cost of funds as the Bank continues to aggressively reprice certificates of deposit as they mature.

Net Interest Margin

Our net interest margin for third quarter 2021 was 3.62% compared to 3.75% for second quarter 2021 and 3.20% for third quarter 2020. Our cost of funds for third quarter 2021 decreased to 0.33% from 0.42% for second quarter 2021 and 0.85% for third quarter 2020.

Provision for Loan Losses:

The Company made no provision for loan losses for third quarter 2021 or the second quarter of 2021, compared to $1.6 million for third quarter 2020. No provision was required during the current quarter due to the absence of charge-offs, and continuing signs of an improving economy. See Table 10 for additional information and trends.

Noninterest Income:

Noninterest income for third quarter 2021 was $5.5 million, compared to $5.0 million for second quarter 2021 and $3.0 million for third quarter 2020. The largest contributor to noninterest income continues to be gains on sales of loans. Sales of SBA loans were $42.0 million with an average premium percentage received of 11.5% during the third quarter of 2021, compared with SBA loan sales of $42.2 million with an average premium percentage received of 11.9% during the second quarter of 2021 and SBA loan sales of $24.9 million with an average premium percentage received of 9.8% during the third quarter of 2020.

Noninterest Expense:

Noninterest expense for third quarter 2021 was $10.6 million, compared to $9.7 million for second quarter 2021 and $8.0 million for third quarter 2020. Included in the third quarter 2021 noninterest expense is approximately $913 thousand in general and administrative expense directly related to the operation of the newly acquired Ohana Pacific Division in Hawaii.

Income Taxes:

The Company' s effective tax rate for third quarter 2021 was 28.6% compared to 28.9% for second quarter 2021 and 27.9% for third quarter 2020.

Balance Sheet:

Investment Securities:

Investment securities were $86.4 million at September 30, 2021, an increase of $4.1 million from June 30, 2021 and a decrease of $2.3 million from September 30, 2020. The increase in the third quarter of 2021 is due to $5.7 million of securities acquired in the Ohana Pacific Bank merger. The remaining changes were due to principal paydowns. There were no portfolio purchases in third quarter 2021, or in second quarter 2021 or third quarter 2020.

Loans Receivable:

Loans receivable (including loans held for sale) at September 30, 2021 was $1.4 billion, an increase of $162.3 million, or 13.2%, from loans receivable at June 30, 2021, and an increase of $326.6 million, or 30.6%, from loans receivable at September 30, 2020. Included in the total loans at September 30, 2021 are $149.2 million in loans that were acquired from Ohana Pacific Bank at July 1, 2021.

Loan payment deferments to our commercial borrowers under the CARES Act have declined since the first round of deferments that began during the second quarter of 2020. As of September 30, 2021, 5 loans totaling $29.7 million remain on modified payment terms, unchanged from the level of such loans at June 30, 2021 and down from $298.7 million of such loans at their peak at June 30, 2020.

Our weighted average loan-to-value ratio of commercial real estate loans was 72.6% at September 30, 2021. Excluding SBA loans, our weighted average loan-to-value ratio of CRE loans was 55.6%. For additional information, please go to www.cbb-bank.com under tab "About Us" and select "Investors Relations" to see 3Q 2021 Overview and COVID-19 update presentation.

Paycheck Protection Program (PPP):

PPP loans totaled $63.0 million at September 30, 2021. Net unearned fees on PPP loans as of September 30, 2021 was $2.1 million, which fees are being accreted to income based on a two-year contractual maturity. The SBA approved $31.5 million in PPP loan forgiveness applications processed for our PPP loans in third quarter 2021.

Allowance for Loan Losses and Asset Quality:

Our allowance for loan losses at September 30, 2021 was $15.0 million, or 1.19% of portfolio loans, compared to $14.9 million, or 1.32% of portfolio loans, at June 30 2021 and compared to $13.6 million, or 1.35% of portfolio loans, at September 30, 2020. Excluding PPP loans of $63.0 million, which are government guaranteed, the allowance for loan losses at September 30, 2021 was 1.26% of total loans, compared to 1.42% and 1.48%, respectively, at June 30 2021 and September 30, 2020. The allowance for loan losses as a percentage of total loans declined during the third quarter of 2021 because the loans which were acquired from Ohana Pacific Bank have been recorded at market value and have no allowance associated with them. Non-performing loans declined to $768 thousand at September 30, 2021, down from $1.3 million at June 30, 2021 and $4.1 million at September 30 2020. Loans with payment deferments are considered to be performing loans in accordance with regulatory guidance. Our coverage ratio of allowance for loan losses to nonperforming assets exceeded 1900%. For additional information, please go to www.cbb-bank.com under tab "About Us" and select "Investors Relations" to see 3Q 2021 Overview and COVID-19 update presentation.

SBA Loans Held for Sale:

SBA loans held for sale at September 30, 2021 were $136.4 million, compared to $96.6 million at June 30 2021 and $53.8 million at September 30, 2020. We continue to assess SBA loan sale premiums and plan to sell loans when we believe it is advantageous to do so. See comments under "Noninterest Income", and Table 7 for additional SBA loan origination and sale data.

Deposits:

Deposits were $1.7 billion at September 30, 2021, up $287.4 million, or 20.8%, from June 30 2021 and up $564.7 million, or 51.3%, from September 30, 2020. Noninterest-bearing demand deposits ("DDAs") increased $98.2 million, or 17.2%, to $670.5 million at September 30, 2021 from June 30 2021 and increased $307.1 million, or 84.5%, from September 30, 2020. Total DDAs including interest-bearing demand deposits were 40.9% of total deposits at September 30, 2021, compared to 41.5% at June 30 2021 and 33.0% at September 30, 2020. NOW and MMDA accounts increased $85.1 million, or 29.2%, to $376.5 million at September 30, 2021 from June 30 2021 and increased $146.8 million, or 63.9%, from September 30, 2020. Time deposits increased $58.9 million, or 12.4%, at September 30, 2021 from June 30 2021 and increased $85.9 million, or 19.2%, from September 30, 2020. Time deposits at September 30, 2021 were $532.6 million, or 32.0% of total deposits, compared to $473.7 million, or 34.4% of total deposits, at June 30, 2021, and $446.7 million, or 40.6% of total deposits, at September 30, 2020. The primary cause of the increase in deposit balances during the third quarter of 2021 was the completion of the merger with Ohana Pacific Bank during the quarter. Included in the total deposits at September 30, 2021 are $202.2 million in deposits that were acquired from Ohana Pacific Bank at July 1, 2021.

Borrowings:

Borrowings at September 30, 2021 consisted of $50.0 million of Federal Home Loan Bank of San Francisco ("FHLB-SF") advances, unchanged from the balance at June 30, 2021. Borrowings at September 30, 2020 were $128.7 million and consisted of $70.0 million of FHLB-SF advances and $58.7 million of FRB PPP Liquidity Facility.

Capital:

Stockholders' equity was $178.3 million at September 30, 2021, representing an increase of $7.1 million, or 4.1%, over stockholders' equity of $171.2 million at June 30, 2021. Tangible book value per share at September 30, 2021 was $17.08, compared with $16.66 at June 30, 2021, an increase of $0.42 per share or 2.5%.

All of our regulatory capital ratios continue to exceed the minimum levels required to be considered "Well Capitalized" as defined for bank regulatory purposes and in compliance with the fully phased-in Basel III requirements, as shown on Table 11 in this press release. Our Common Equity Tier 1 risked-based capital at September 30, 2021 was 13.61% at the Company level and 13.59% at the Bank level.

About CBB Bancorp, Inc.:

CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small-to medium-sized businesses and does business as "CBB Bank." As of September 30, 2021, the Bank has ten full-service branches in Los Angeles and Orange Counties in California, and Dallas County in Texas and Honolulu, Hawaii; two SBA regional offices in Los Angeles and Dallas Counties; and five loan production offices in Texas, Georgia, Colorado and Washington.

For additional information, please go to www.cbb-bank.com under tab "About Us" and select "Investors Relations" to see 3Q 2021 Overview.

FORWARD-LOOKING STATEMENTS:

This news release contains forward-looking statements. These statements typically include words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. You should not place undue reliance on such statements. Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control; increases in competitive pressure among financial institutions or from non-financial institutions may occur; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and the Bank; significant increases in loan losses may occur; the possibility that changes in accounting principles, policies or guidelines may cause the Company's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, the effects of the COVID-19 pandemic, and of other widespread outbreaks of disease or pandemics, together with related impacts on general economic conditions, including adverse impacts on our customers' ability to make timely payments on their loans from us, reduced fee income due to reduced loan origination activity, reductions in or absence of gains on loan sales due to uncertainty in the loan sale market, and increased operating expense due to required changes in how we conduct our business may adversely affect us; conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company's business; technological changes may be more difficult or expensive to implement or accommodate than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates; we may encounter greater difficulty, delay and expense than we anticipate in integrating the personnel and operations of Ohana Pacific Bank or any other companies we acquire. The Company undertakes no obligation to revise any forward-looking statement contained herein to reflect any future events or circumstances, except to the extent required by law.

Schedules and Financial Data: All tables and data to follow

STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) - Table 1 (Dollars in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, June 30, $ % September 30, $ % September 30, September 30, $ % 2021 2021 Change Change 2020 Change Change 2021 2020 Change Change

Interest income $ 17,437 $ 14,923 $ 2,514 16.8 % $ 13,212 $ 4,225 32.0 % $ 46,732 $ 40,891 $ 5,841 14.3 %

Interest expense 1,337 1,358 (21 ) (1.5 %) 2,558 (1,221 ) (47.7 %) 4,228 9,881 (5,653 ) (57.2 %)

Net interest income 16,100 13,565 2,535 18.7 % 10,654 5,446 51.1 % 42,504 31,010 11,494 37.1 %

Provision for loan - - - - 1,600 (1,600 ) (100.0 %) 500 3,900 (3,400 ) (87.2 %)lossesNet interest income 16,100 13,565 2,535 18.7 % 9,054 7,046 77.8 % 42,004 27,110 14,894 54.9 %after provision forloan losses Gain on sale of loans 4,305 3,988 317 7.9 % 1,662 2,643 159.0 % 10,749 3,110 7,639 245.6 %

Gain (loss) on sale of - - - - - - - - 3 (3 ) (100.0 %)OREOSBA servicing fee 698 622 76 12.2 % 948 (250 ) (26.4 %) 2,167 2,058 109 5.3 %income, netReversal of valuation - - - - - - - - - - - allowance on servicingassetsService charges and 540 395 145 36.7 % 385 155 40.3 % 1,314 1,032 282 27.3 %other incomeNoninterest income 5,543 5,005 538 10.7 % 2,995 2,548 85.1 % 14,230 6,203 8,027 129.4 %

Salaries and employee 6,500 6,000 500 8.3 % 4,948 1,552 31.4 % 17,353 15,267 2,086 13.7 %benefitsOccupancy and 1,067 945 122 12.9 % 938 129 13.8 % 2,991 2,827 164 5.8 %equipmentMarketing expense 287 309 (22 ) (7.1 %) 265 22 8.3 % 883 1,002 (119 ) (11.9 %)

Professional expense 495 491 4 0.8 % 503 (8 ) (1.6 %) 1,441 1,438 3 0.2 %

Merger related expense 450 600 (150 ) (25.0 %) - 450 100.0 % 1,731 - 1,731 100.0 %

Other expenses 1,807 1,356 451 33.3 % 1,367 440 32.2 % 4,463 3,929 534 13.6 %

Noninterest expense 10,606 9,701 905 9.3 % 8,021 2,585 32.2 % 28,862 24,463 4,399 18.0 %

Income before income 11,037 8,869 2,168 24.4 % 4,028 7,009 174.0 % 27,372 8,850 18,522 209.3 %tax expense Income tax expense 3,156 2,566 590 23.0 % 1,125 2,031 180.5 % 7,854 2,683 5,171 192.7 %

Net income $ 7,881 $ 6,303 $ 1,578 25.0 % $ 2,903 $ 4,978 171.5 % $ 19,518 $ 6,167 $ 13,351 216.5 %

Effective tax rate 28.6 % 28.9 % (0.3 %) (1.2 %) 27.9 % 0.7 % 2.4 % 28.7 % 30.3 % (1.6 %) (5.4 %)

Outstanding number of 10,284,962 10,279,962 5,000 0.0 % 10,247,292 37,670 0.4 % 10,284,962 10,247,292 37,670 0.4 %shares Weighted average 10,279,962 10,262,956 17,006 0.2 % 10,244,037 35,925 0.4 % 10,263,523 10,235,197 28,326 0.3 %shares for basic EPSWeighted average 10,427,632 10,392,427 35,205 0.3 % 10,273,148 154,484 1.5 % 10,373,645 10,287,659 85,986 0.8 %shares for diluted EPS Basic EPS $ 0.77 $ 0.61 $ 0.16 26.2 % $ 0.28 $ 0.49 175.0 % $ 1.90 $ 0.60 $ 1.30 216.7 %

Diluted EPS $ 0.75 $ 0.61 $ 0.14 23.0 % $ 0.28 $ 0.47 167.9 % $ 1.88 $ 0.60 $ 1.28 213.3 %

Return on average 1.73 % 1.70 % 0.03 % 1.8 % 0.85 % 0.88 % 103.5 % 1.68 % 0.65 % 1.03 % 158.5 %assetsReturn on average 17.87 % 14.91 % 2.96 % 19.9 % 7.43 % 10.44 % 140.5 % 15.42 % 5.39 % 10.03 % 186.1 %equity Efficiency ratio^1 49.00 % 52.24 % (3.24 %) (6.2 %) 58.77 % (9.8 %) (16.6 %) 50.87 % 65.74 % (14.87 %) (22.6 %)

Yield on 3.92 % 4.12 % (0.20 %) (4.9 %) 3.96 % (0.04 %) (1.0 %) 4.11 % 4.46 % (0.35 %) (7.8 %)interest-earningassets?Cost of funds 0.33 % 0.42 % (0.09 %) (21.4 %) 0.85 % (0.52 %) (61.2 %) 0.41 % 1.21 % (0.80 %) (66.1 %)

Net interest margin? 3.62 % 3.75 % (0.13 %) (3.5 %) 3.20 % 0.42 % 13.1 % 3.74 % 3.38 % 0.36 % 10.7 %

^1 Represents the ratio of noninterest expense less other real estate ownedoperations to the sum of net interest income before provision for credit lossesand total noninterest income, less gains/(loss) on sale of securities,other-than-temporary impairment recovery/(loss) on investment securities andgain/(loss) from other real estate owned.? Amounts calculated on a fully taxable equivalent basis using the currentstatutory federal tax rateBALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2(Dollars in thousands)September 30,June 30,$%September 30,$%2021

2021

Change

Change

2020

Change

Change

ASSETSCash and due from banks$

11,621

$

10,509

$

1,112

10.6

%

$

8,030

$

3,591

44.7

%

Interest-earning deposits at the FRB and other banks386,087

240,932

145,155

60.2

%

212,279

173,808

81.9

%

Investment securities^186,440

82,354

4,086

5.0

%

88,784

(2,344

)

(2.6

%)

Loans held-for-sale, at the lower of cost or fair value136,394

96,554

39,840

41.3

%

53,755

82,639

153.7

%

Loans receivable1,255,814

1,133,371

122,443

10.8

%

1,011,867

243,947

24.1

%

Allowance for loan losses(15,000

)

(14,908

)

(92

)

(0.6

%)

(13,614

)

(1,386

)

(10.2

%)

Loans receivable, net1,240,814

1,118,463

122,351

10.9

%

998,253

242,561

24.3

%

OREO-

-

-

-

-

-

-

Restricted stock investments8,850

8,850

-

-

8,196

654

8.0

%

Servicing assets10,392

10,189

203

2.0

%

9,043

1,349

14.9

%

Goodwill2,269

-

2,269

100.0

%

-

2,269

100.0

%

Intangible assets375

-

375

100.0

%

-

375

100.0

%

Other assets25,859

45,071

(19,212

)

(42.6

%)

21,064

4,795

22.8

%

Total assets$

1,909,101

$

1,612,922

$

296,179

18.4

%

$

1,399,404

$

509,697

36.4

%

LIABILITIES AND STOCKHOLDERS' EQUITYNoninterest-bearing$

670,489

$

572,284

$

98,205

17.2

%

$

363,350

$

307,139

84.5

%

Interest-bearing995,574

806,397

189,177

23.5

%

738,040

257,534

34.9

%

Total deposits1,666,063

1,378,681

287,382

20.8

%

1,101,390

564,673

51.3

%

FHLB advances and other borrowing50,000

50,000

-

-

128,671

(78,671

)

(61.1

%)

Other liabilities14,719

13,026

1,693

13.0

%

13,295

1,424

10.7

%

Total liabilities1,730,782

1,441,707

289,075

20.1

%

1,243,356

487,426

39.2

%

Stockholders' Equity178,319

171,215

7,104

4.1

%

156,048

22,271

14.3

%

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY$

1,909,101

$

1,612,922

$

296,179

18.4

%

$

1,399,404

$

509,697

36.4

%

CAPITAL RATIOSLeverage ratioCompany9.61

%

11.35

%

(1.74

%)

(15.3

%)

11.76

%

(2.15

%)

(18.3

%)

Bank9.60

%

11.33

%

(1.73

%)

(15.3

%)

11.72

%

(2.12

%)

(18.1

%)

Common equity tier 1 risk-based capital ratioCompany13.61

%

14.39

%

(0.78

%)

(5.4

%)

15.24

%

(1.63

%)

(10.7

%)

Bank13.59

%

14.37

%

(0.78

%)

(5.4

%)

15.20

%

(1.61

%)

(10.6

%)

Tier 1 risk-based capital ratioCompany13.61

%

14.39

%

(0.78

%)

(5.4

%)

15.24

%

(1.63

%)

(10.7

%)

Bank13.59

%

14.37

%

(0.78

%)

(5.4

%)

15.20

%

(1.61

%)

(10.6

%)

Total risk-based capital ratioCompany14.86

%

15.64

%

(0.78

%)

(5.0

%)

16.50

%

(1.64

%)

(10.0

%)

Bank14.84

%

15.62

%

(0.78

%)

(5.0

%)

16.45

%

(1.61

%)

(9.8

%)

Tangibel common equity per share$

17.30

$

16.66

$

0.64

3.8

%

$

15.23

$

2.07

13.6

%

Loan-to-Deposit (LTD) ratio75.38

%

82.21

%

(6.83

%)

(8.3

%)

91.87

%

(16.49

%)

(17.9

%)

Nonperforming assets$

768

$

1,339

$

(571

)

(42.6

%)

$

4,111

$

(3,343

)

(81.3

%)

Nonperforming assets as a % of loans receivable0.06

%

0.12

%

(0.06

%)

-50.0

%

0.41

%

(0.35

%)

(85.4

%)

ALLL as a % of loans receivable1.19

%

1.32

%

(0.13

%)

(9.8

%)

1.35

%

(0.16

%)

(11.9

%)

ALLL as a % of loans receivable exc. SBA PPP loans1.26

%

1.42

%

(0.16

%)

(11.3

%)

1.48

%

(0.22

%)

(14.9

%)

^1 Includes AFS and HTMBALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2(Dollars in thousands) September 30, June 30, $ % September 30, $ % 2021 2021 Change Change 2020 Change Change

ASSETS Cash and due from $ 11,621 $ 10,509 $ 1,112 10.6 % $ 8,030 $ 3,591 44.7 % banks Interest-earning 386,087 240,932 145,155 60.2 % 212,279 173,808 81.9 % deposits at the FRB and other banks Investment 86,440 82,354 4,086 5.0 % 88,784 (2,344 ) (2.6 %) securities^1 Loans held-for-sale, at 136,394 96,554 39,840 41.3 % 53,755 82,639 153.7 % the lower of cost or fair value Loans receivable 1,255,814 1,133,371 122,443 10.8 % 1,011,867 243,947 24.1 %

Allowance for loan (15,000 ) (14,908 ) (92 ) (0.6 %) (13,614 ) (1,386 ) (10.2 %) losses Loans receivable, 1,240,814 1,118,463 122,351 10.9 % 998,253 242,561 24.3 % net OREO - - - - - - -

Restricted stock 8,850 8,850 - - 8,196 654 8.0 % investments Servicing assets 10,392 10,189 203 2.0 % 9,043 1,349 14.9 %

Goodwill 2,269 - 2,269 100.0 % - 2,269 100.0 %

Intangible assets 375 - 375 100.0 % - 375 100.0 %

Other assets 25,859 45,071 (19,212 ) (42.6 %) 21,064 4,795 22.8 %

Total assets $ 1,909,101 $ 1,612,922 $ 296,179 18.4 % $ 1,399,404 $ 509,697 36.4 %

LIABILITIES ANDSTOCKHOLDERS' EQUITY Noninterest-bearing $ 670,489 $ 572,284 $ 98,205 17.2 % $ 363,350 $ 307,139 84.5 %

Interest-bearing 995,574 806,397 189,177 23.5 % 738,040 257,534 34.9 %

Total deposits 1,666,063 1,378,681 287,382 20.8 % 1,101,390 564,673 51.3 %

FHLB advances and 50,000 50,000 - - 128,671 (78,671 ) (61.1 %) other borrowing Other liabilities 14,719 13,026 1,693 13.0 % 13,295 1,424 10.7 %

Total liabilities 1,730,782 1,441,707 289,075 20.1 % 1,243,356 487,426 39.2 %

Stockholders' 178,319 171,215 7,104 4.1 % 156,048 22,271 14.3 % EquityTOTAL LIABILITIES & $ 1,909,101 $ 1,612,922 $ 296,179 18.4 % $ 1,399,404 $ 509,697 36.4 %STOCKHOLDERS' EQUITY CAPITAL RATIOS Leverage ratio Company 9.61 % 11.35 % (1.74 %) (15.3 %) 11.76 % (2.15 %) (18.3 %)

Bank 9.60 % 11.33 % (1.73 %) (15.3 %) 11.72 % (2.12 %) (18.1 %)

Common equity tier 1 risk-based capital ratio Company 13.61 % 14.39 % (0.78 %) (5.4 %) 15.24 % (1.63 %) (10.7 %)

Bank 13.59 % 14.37 % (0.78 %) (5.4 %) 15.20 % (1.61 %) (10.6 %)

Tier 1 risk-based capital ratio Company 13.61 % 14.39 % (0.78 %) (5.4 %) 15.24 % (1.63 %) (10.7 %)

Bank 13.59 % 14.37 % (0.78 %) (5.4 %) 15.20 % (1.61 %) (10.6 %)

Total risk-based capital ratio Company 14.86 % 15.64 % (0.78 %) (5.0 %) 16.50 % (1.64 %) (10.0 %)

Bank 14.84 % 15.62 % (0.78 %) (5.0 %) 16.45 % (1.61 %) (9.8 %)

Tangibel common $ 17.30 $ 16.66 $ 0.64 3.8 % $ 15.23 $ 2.07 13.6 % equity per share Loan-to-Deposit 75.38 % 82.21 % (6.83 %) (8.3 %) 91.87 % (16.49 %) (17.9 %) (LTD) ratio Nonperforming $ 768 $ 1,339 $ (571 ) (42.6 %) $ 4,111 $ (3,343 ) (81.3 %) assets Nonperforming 0.06 % 0.12 % (0.06 %) -50.0 % 0.41 % (0.35 %) (85.4 %) assets as a % of loans receivable ALLL as a % of 1.19 % 1.32 % (0.13 %) (9.8 %) 1.35 % (0.16 %) (11.9 %) loans receivable ALLL as a % of 1.26 % 1.42 % (0.16 %) (11.3 %) 1.48 % (0.22 %) (14.9 %) loans receivable exc. SBA PPP loans ^1 Includes AFS andHTMFIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3(Dollars in thousands, except per share amounts)Three Months EndedSeptember 30,June 30,March, 31December, 31September 30,2021

2021

2021

2020

2020

Interest income$

17,437

$

14,923

$

14,372

$

13,613

$

13,212

Interest expense1,337

1,358

1,533

1,830

2,558

Net interest income16,100

13,565

12,839

11,783

10,654

Provision for loan losses-

-

500

1,600

1,600

Net interest income after provision for loan losses16,100

13,565

12,339

10,183

9,054

Gain on sale of loans4,305

3,988

2,456

1,484

1,662

Gain (loss) on sale of OREO-

-

-

-

-

SBA servicing fee income, net698

622

847

701

948

Reversal of valuation allowance on servicing assets-

-

-

894

-

Service charges and other income540

395

379

364

385

Noninterest income5,543

5,005

3,682

3,443

2,995

Salaries and employee benefits6,500

6,000

4,853

5,477

4,948

Occupancy and equipment1,067

945

979

936

938

Marketing expense287

309

287

133

265

Professional expense495

491

455

478

503

Merger related expense450

600

681

40

58

Other expenses1,807

1,356

1,300

1,329

1,309

Noninterest expense10,606

9,701

8,555

8,393

8,021

Income before income tax expense11,037

8,869

7,466

5,233

4,028

Income tax expense3,156

2,566

2,132

1,519

1,125

Net income$

7,881

$

6,303

$

5,334

$

3,714

$

2,903

Effective tax rate28.6

%

28.9

%

28.6

%

29.0

%

27.9

%

Outstanding number of shares10,284,962

10,279,962

10,247,292

10,247,292

10,247,292

Weighted average shares for basic EPS10,279,962

10,262,956

10,247,292

10,247,292

10,244,037

Weighted average shares for diluted EPS10,427,632

10,392,427

10,300,518

10,285,410

10,273,148

Basic EPS$

0.77

$

0.61

$

0.52

$

0.36

$

0.28

Diluted EPS$

0.75

$

0.61

$

0.52

$

0.36

$

0.28

FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3(Dollars in thousands, except per share amounts) Three Months Ended September 30, June 30, March, 31 December, 31 September 30, 2021 2021 2021 2020 2020

Interest $ 17,437 $ 14,923 $ 14,372 $ 13,613 $ 13,212 incomeInterest 1,337 1,358 1,533 1,830 2,558 expenseNet interest 16,100 13,565 12,839 11,783 10,654 income Provision for - - 500 1,600 1,600 loan lossesNet interestincome after 16,100 13,565 12,339 10,183 9,054 provision forloan losses Gain on sale 4,305 3,988 2,456 1,484 1,662 of loansGain (loss) - - - - - on sale ofOREOSBA servicing 698 622 847 701 948 fee income,netReversal ofvaluation - - - 894 - allowance onservicingassetsService 540 395 379 364 385 charges andother incomeNoninterest 5,543 5,005 3,682 3,443 2,995 income Salaries and 6,500 6,000 4,853 5,477 4,948 employeebenefitsOccupancy and 1,067 945 979 936 938 equipmentMarketing 287 309 287 133 265 expenseProfessional 495 491 455 478 503 expenseMerger 450 600 681 40 58 relatedexpenseOther 1,807 1,356 1,300 1,329 1,309 expensesNoninterest 10,606 9,701 8,555 8,393 8,021 expense Income before 11,037 8,869 7,466 5,233 4,028 income taxexpense Income tax 3,156 2,566 2,132 1,519 1,125 expense Net income $ 7,881 $ 6,303 $ 5,334 $ 3,714 $ 2,903

Effective tax 28.6 % 28.9 % 28.6 % 29.0 % 27.9 %rate Outstanding 10,284,962 10,279,962 10,247,292 10,247,292 10,247,292 number ofshares Weightedaverage 10,279,962 10,262,956 10,247,292 10,247,292 10,244,037 shares forbasic EPSWeightedaverage 10,427,632 10,392,427 10,300,518 10,285,410 10,273,148 shares fordiluted EPS Basic EPS $ 0.77 $ 0.61 $ 0.52 $ 0.36 $ 0.28

Diluted EPS $ 0.75 $ 0.61 $ 0.52 $ 0.36 $ 0.28

FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4(Dollars in thousands)At or for the Three Months EndedSeptember 30,June 30,March, 31December, 31September 30,2021

2021

2021

2020

2020

Salaries and benefits$

6,500

$

6,000

$

4,853

$

5,477

$

4,948

FTE at the end of period200

183

186

183

179

Average FTE during the period202

182

187

184

181

Salaries and benefits/average FTE^1$

127

$

132

$

105

$

118

$

109

Salaries and benefits/average assets^11.43

%

1.62

%

1.44

%

1.58

%

1.45

%

Noninterest expense/average assets^12.33

%

2.62

%

2.34

%

2.42

%

2.34

%

1 Annualized FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4(Dollars in thousands) At or for the Three Months Ended September June 30, March, 31 December, September 30, 31 30, 2021 2021 2021 2020 2020

Salaries and $ 6,500 $ 6,000 $ 4,853 $ 5,477 $ 4,948 benefitsFTE at the end of 200 183 186 183 179 periodAverage FTE during 202 182 187 184 181 the periodSalaries and $ 127 $ 132 $ 105 $ 118 $ 109 benefits/averageFTE^1Salaries and 1.43 % 1.62 % 1.44 % 1.58 % 1.45 %benefits/averageassets^1Noninterest 2.33 % 2.62 % 2.34 % 2.42 % 2.34 %expense/averageassets^1 ^1 AnnualizedFIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5(Dollars in thousands)September 30,June 30,March, 31December, 31September 30,2021

2021

2021

2020

2020

ASSETSCash and due from banks$

11,621

$

10,509

$

9,215

$

8,750

$

8,030

Interest-earning deposits at the FRB and other banks386,087

240,932

129,713

153,908

212,279

Investment securities^186,440

82,354

83,409

85,914

88,784

Loans held-for-sale, at the lower of cost or fair value136,394

96,554

76,066

59,077

53,755

Loans receivable1,255,814

1,133,371

1,113,629

1,043,662

1,011,867

Allowance for loan losses(15,000

)

(14,908

)

(14,888

)

(14,366

)

(13,614

)

Loans receivable, net1,240,814

1,118,463

1,098,741

1,029,296

998,253

OREO-

-

-

-

-

Restricted stock investments8,850

8,850

8,196

8,196

8,196

Servicing assets10,392

10,189

10,000

9,873

9,043

Goodwill2,269

-

-

-

-

Intangible assets375

-

-

-

-

Other assets25,859

45,071

21,431

20,233

21,064

Total assets$

1,909,101

$

1,612,922

$

1,436,771

$

1,375,247

$

1,399,404

LIABILITIES AND STOCKHOLDERS' EQUITYNoninterest-bearing$

670,489

$

572,284

$

408,738

$

335,219

$

363,350

Interest-bearing995,574

806,397

782,778

763,906

738,040

Total deposits1,666,063

1,378,681

1,099,125

1,101,390

FHLB advances50,000

50,000

65,000

105,000

128,671

Other liabilities14,719

13,026

15,170

11,145

13,295

Total liabilities1,730,782

1,441,707

1,271,686

1,215,270

1,243,356

Stockholders' Equity178,319

171,215

165,085

159,977

156,048

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY$

1,909,101

$

1,612,922

$

1,436,771

$

1,375,247

$

1,399,404

^1 Includes AFS and HTMFIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5(Dollars in thousands) September 30, June 30, March, 31 December, 31 September 30, 2021 2021 2021 2020 2020

ASSETS Cash and due from $ 11,621 $ 10,509 $ 9,215 $ 8,750 $ 8,030 banks Interest-earning 386,087 240,932 129,713 153,908 212,279 deposits at the FRB and other banks Investment 86,440 82,354 83,409 85,914 88,784 securities^1 Loans held-for-sale, at 136,394 96,554 76,066 59,077 53,755 the lower of cost or fair value Loans receivable 1,255,814 1,133,371 1,113,629 1,043,662 1,011,867

Allowance for loan (15,000 ) (14,908 ) (14,888 ) (14,366 ) (13,614 ) losses Loans receivable, 1,240,814 1,118,463 1,098,741 1,029,296 998,253 net OREO - - - - -

Restricted stock 8,850 8,850 8,196 8,196 8,196 investments Servicing assets 10,392 10,189 10,000 9,873 9,043

Goodwill 2,269 - - - -

Intangible assets 375 - - - -

Other assets 25,859 45,071 21,431 20,233 21,064

Total assets $ 1,909,101 $ 1,612,922 $ 1,436,771 $ 1,375,247 $ 1,399,404

LIABILITIES ANDSTOCKHOLDERS' EQUITY Noninterest-bearing $ 670,489 $ 572,284 $ 408,738 $ 335,219 $ 363,350

Interest-bearing 995,574 806,397 782,778 763,906 738,040

Total deposits 1,666,063 1,378,681 1,099,125 1,101,390

FHLB advances 50,000 50,000 65,000 105,000 128,671

Other liabilities 14,719 13,026 15,170 11,145 13,295

Total liabilities 1,730,782 1,441,707 1,271,686 1,215,270 1,243,356

Stockholders' 178,319 171,215 165,085 159,977 156,048 EquityTOTAL LIABILITIES & $ 1,909,101 $ 1,612,922 $ 1,436,771 $ 1,375,247 $ 1,399,404 STOCKHOLDERS' EQUITY ^1 Includes AFS andHTMFIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6(Dollars in thousands)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020Balance%Balance%Balance%Balance%Balance%Construction$

21,725

1.7

%

$

18,753

1.7

%

$

15,858

1.4

%

$

13,685

1.3

%

$

18,236

1.8

%

Commercial real estate971,387

77.4

%

893,700

78.9

%

855,861

76.9

%

820,355

78.6

%

779,062

77.0

%

Commercial and industrial198,217

15.8

%

217,350

19.2

%

237,865

21.4

%

205,883

19.7

%

211,298

20.9

%

Home mortgage60,075

4.8

%

-

-

-

-

-

-

-

-

Consumer2,185

0.2

%

2,236

0.2

%

3,504

0.3

%

2,439

0.2

%

2,751

0.3

%

Gross loans1,253,589

99.8

%

1,132,039

99.9

%

1,113,088

100.0

%

1,042,362

99.9

%

1,011,347

99.9

%

Net deferred loan fees/costs2,225

0.2

%

1,332

0.1

%

541

0.0

%

1,300

0.1

%

520

0.1

%

Loans receivable$

1,255,814

100.0

%

$

1,133,371

100.0

%

$

1,113,629

100.0

%

$

1,043,662

100.0

%

$

1,011,867

100.0

%

Loans held-for-sale$

136,394

$

96,554

$

76,066

$

59,077

$

53,755

Loans receivable, including loans held-for-sale$

1,392,208

$

1,229,925

$

1,189,695

$

1,102,739

$

1,065,622

FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6(Dollars in thousands) September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 Balance % Balance % Balance % Balance % Balance % Construction $ 21,725 1.7 % $ 18,753 1.7 % $ 15,858 1.4 % $ 13,685 1.3 % $ 18,236 1.8 %

Commercial 971,387 77.4 % 893,700 78.9 % 855,861 76.9 % 820,355 78.6 % 779,062 77.0 %real estateCommercial 198,217 15.8 % 217,350 19.2 % 237,865 21.4 % 205,883 19.7 % 211,298 20.9 %andindustrialHome mortgage 60,075 4.8 % - - - - - - - -

Consumer 2,185 0.2 % 2,236 0.2 % 3,504 0.3 % 2,439 0.2 % 2,751 0.3 %

Gross loans 1,253,589 99.8 % 1,132,039 99.9 % 1,113,088 100.0 % 1,042,362 99.9 % 1,011,347 99.9 %

Net deferred 2,225 0.2 % 1,332 0.1 % 541 0.0 % 1,300 0.1 % 520 0.1 %loan fees/costsLoans $ 1,255,814 100.0 % $ 1,133,371 100.0 % $ 1,113,629 100.0 % $ 1,043,662 100.0 % $ 1,011,867 100.0 %receivable Loans $ 136,394 $ 96,554 $ 76,066 $ 59,077 $ 53,755held-for-saleLoansreceivable, $ 1,392,208 $ 1,229,925 $ 1,189,695 $ 1,102,739 $ 1,065,622includingloansheld-for-saleFIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7(Dollars in thousands)Three Months EndedSeptember 30,June 30,March 31,December 31,September 30,2021

2021

2021

2020

2020

SBA loans held-for-sale at beginning of the quarter/year$

96,554

$

76,066

$

59,077

$

53,755

$

32,264

SBA loans originated/transferred from/to held-for-investment during the quarter/year82,303

62,864

48,152

26,837

46,731

SBA loans sold during the quarter/year(42,019

)

(42,163

)

(30,238

)

(20,382

)

(24,866

)

SBA loans principal payment, net of advance(444

)

(213

)

(925

)

(1,133

)

(374

)

SBA loans held-for-sale at end of the quarter/year$

136,394

$

96,554

$

76,066

$

59,077

$

53,755

Gain on sale of SBA loans$

4,305

$

3,988

$

2,456

$

1,484

$

1,662

Premium on sale (weighted average)11.5

%

11.9

%

10.9

%

10.7

%

9.8

%

SBA loan production$

93,986

$

78,058

$

123,762

$

37,116

$

59,957

Non-PPP loans93,986

75,065

71,204

37,116

59,009

PPP loans-

2,994

52,558

-

948

FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7(Dollars in thousands) Three Months Ended September June 30, March 31, December September 30, 31, 30, 2021 2021 2021 2020 2020

SBA loansheld-for-sale $ 96,554 $ 76,066 $ 59,077 $ 53,755 $ 32,264 at beginningof thequarter/yearSBA loansoriginated/transferredfrom/toheld-for-investment 82,303 62,864 48,152 26,837 46,731 during thequarter/yearSBA loanssold during (42,019 ) (42,163 ) (30,238 ) (20,382 ) (24,866 )the quarter/yearSBA loansprincipal (444 ) (213 ) (925 ) (1,133 ) (374 )payment, netof advanceSBA loansheld-for-sale $ 136,394 $ 96,554 $ 76,066 $ 59,077 $ 53,755 at end of thequarter/year Gain on sale $ 4,305 $ 3,988 $ 2,456 $ 1,484 $ 1,662 of SBA loansPremium onsale 11.5 % 11.9 % 10.9 % 10.7 % 9.8 %(weightedaverage) SBA loan $ 93,986 $ 78,058 $ 123,762 $ 37,116 $ 59,957 productionNon-PPP loans 93,986 75,065 71,204 37,116 59,009

PPP loans - 2,994 52,558 - 948

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8(Dollars in thousands)Three Months EndedSeptember 30,June 30,March 31,December 31,September 30,2021

2021

2020

2020

2020

SBA servicing assets @ beginning of the quarter/year$

10,189

$

10,000

$

9,873

$

9,043

$

8,944

Newly added SBA servicing assets from SBA loans sold920

897

635

441

523

Regular quarterly/annual servicing assets amortization(421

)

(422

)

(358

)

(392

)

(384

)

SBA servicing assets amortized from SBA loans paid off/charged off(296

)

(286

)

(150

)

(113

)

(40

)

Subtotal before impairment10,392

10,189

10,000

8,979

9,043

Reversal of valuation allowance on servicing assets-

-

894

-

SBA servicing assets @ the end of the quarter/year$

10,392

$

10,189

$

10,000

$

9,873

$

9,043

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8(Dollars in thousands) Three Months Ended September June 30, March 31, December September 30, 31, 30, 2021 2021 2020 2020 2020

SBA servicingassets @ $ 10,189 $ 10,000 $ 9,873 $ 9,043 $ 8,944 beginning ofthe quarter/year Newly added SBAservicing 920 897 635 441 523 assets from SBAloans soldRegularquarterly/annual (421 ) (422 ) (358 ) (392 ) (384 )servicingassetsamortizationSBA servicingassets (296 ) (286 ) (150 ) (113 ) (40 )amortized fromSBA loans paidoff/charged off Subtotal before 10,392 10,189 10,000 8,979 9,043 impairment Reversal ofvaluation - - 894 - allowance onservicingassets SBA servicingassets @ the $ 10,392 $ 10,189 $ 10,000 $ 9,873 $ 9,043 end of thequarter/yearFIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9(Dollars in thousands)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020Balance%Balance%Balance%Balance%Balance%Noninterest-bearing demand$

670,489

40.2

%

$

572,284

41.5

%

$

408,738

34.3

%

$

335,219

30.5

%

$

363,350

33.0

%

Interest-bearing demand10,904

0.7

%

-

-

-

-

-

-

-

-

NOW & MMDA376,549

22.6

%

291,437

21.1

%

270,531

22.7

%

260,374

23.7

%

229,730

20.9

%

Savings75,497

4.5

%

41,284

3.0

%

46,280

3.9

%

51,659

4.7

%

61,631

5.6

%

TCDs of $250K and under264,130

15.9

%

219,174

15.9

%

226,611

19.0

%

232,192

21.1

%

230,230

20.9

%

TCDs of $250K over177,477

10.7

%

158,485

11.5

%

151,094

12.7

%

150,143

13.7

%

146,911

13.3

%

Wholesale TCDs91,017

5.5

%

96,017

7.0

%

88,262

7.4

%

69,538

6.3

%

69,538

6.3

%

Total Deposits$

1,666,063

100.0

%

$

1,378,681

100.0

%

$

1,191,516

100.0

%

$

1,099,125

100.0

%

$

1,101,390

100.0

%

Recap:Noninterest-bearing demand$

670,489

40.2

%

$

572,284

41.5

%

$

408,738

34.3

%

$

335,219

30.5

%

$

363,350

33.0

%

Interest-bearing demand10,904

0.7

%

-

-

-

-

-

-

-

-

NOW & MMDA376,549

22.6

%

291,437

21.1

%

270,531

22.7

%

260,374

23.7

%

229,730

20.9

%

Savings75,497

4.5

%

41,284

3.0

%

46,280

3.9

%

51,659

4.7

%

61,631

5.6

%

TCDs of $250K and under264,130

15.9

%

219,174

15.9

%

226,611

19.0

%

232,192

21.1

%

230,230

20.9

%

Core Deposits1,397,569

83.9

%

1,124,179

81.5

%

952,160

79.9

%

879,444

80.0

%

884,941

80.3

%

TCDs of $250K over177,477

10.7

%

158,485

11.5

%

151,094

12.7

%

150,143

13.7

%

146,911

13.3

%

Wholesale TCDs91,017

5.5

%

96,017

7.0

%

88,262

7.4

%

69,538

6.3

%

69,538

6.3

%

Noncore Deposits268,494

16.1

%

254,502

18.5

%

239,356

20.1

%

219,681

20.0

%

216,449

19.7

%

Total Deposits$

1,666,063

100.0

%

$

1,378,681

100.0

%

$

1,191,516

100.0

%

$

1,099,125

100.0

%

$

1,101,390

100.0

%

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9(Dollars in thousands) September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 Balance % Balance % Balance % Balance % Balance % Noninterest-bearing $ 670,489 40.2 % $ 572,284 41.5 % $ 408,738 34.3 % $ 335,219 30.5 % $ 363,350 33.0 %demandInterest-bearing demand 10,904 0.7 % - - - - - - - -

NOW & MMDA 376,549 22.6 % 291,437 21.1 % 270,531 22.7 % 260,374 23.7 % 229,730 20.9 %

Savings 75,497 4.5 % 41,284 3.0 % 46,280 3.9 % 51,659 4.7 % 61,631 5.6 %

TCDs of $250K and under 264,130 15.9 % 219,174 15.9 % 226,611 19.0 % 232,192 21.1 % 230,230 20.9 %

TCDs of $250K over 177,477 10.7 % 158,485 11.5 % 151,094 12.7 % 150,143 13.7 % 146,911 13.3 %

Wholesale TCDs 91,017 5.5 % 96,017 7.0 % 88,262 7.4 % 69,538 6.3 % 69,538 6.3 %

Total Deposits $ 1,666,063 100.0 % $ 1,378,681 100.0 % $ 1,191,516 100.0 % $ 1,099,125 100.0 % $ 1,101,390 100.0 %

Recap:Noninterest-bearing $ 670,489 40.2 % $ 572,284 41.5 % $ 408,738 34.3 % $ 335,219 30.5 % $ 363,350 33.0 %demandInterest-bearing demand 10,904 0.7 % - - - - - - - -

NOW & MMDA 376,549 22.6 % 291,437 21.1 % 270,531 22.7 % 260,374 23.7 % 229,730 20.9 %

Savings 75,497 4.5 % 41,284 3.0 % 46,280 3.9 % 51,659 4.7 % 61,631 5.6 %

TCDs of $250K and under 264,130 15.9 % 219,174 15.9 % 226,611 19.0 % 232,192 21.1 % 230,230 20.9 %

Core Deposits 1,397,569 83.9 % 1,124,179 81.5 % 952,160 79.9 % 879,444 80.0 % 884,941 80.3 %

TCDs of $250K over 177,477 10.7 % 158,485 11.5 % 151,094 12.7 % 150,143 13.7 % 146,911 13.3 %

Wholesale TCDs 91,017 5.5 % 96,017 7.0 % 88,262 7.4 % 69,538 6.3 % 69,538 6.3 %

Noncore Deposits 268,494 16.1 % 254,502 18.5 % 239,356 20.1 % 219,681 20.0 % 216,449 19.7 %

Total Deposits $ 1,666,063 100.0 % $ 1,378,681 100.0 % $ 1,191,516 100.0 % $ 1,099,125 100.0 % $ 1,101,390 100.0 %

FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10(Dollars in thousands)3rd Qtr.2nd Qtr.1st Qtr.4th Qtr.3rd Qtr.2021

2021

2021

2020

2020

Allowance for Loan LossesBalance at beginning of period$

14,908

$

14,888

$

14,366

$

13,614

$

12,283

Provision for loan losses-

-

500

1,600

1,600

Charge-offs-

-

(2

)

(907

)

(292

)

Recoveries92

20

24

59

23

Balance at the end of period$

15,000

$

14,908

$

14,888

$

14,366

$

13,614

Nonperforming Assets:^1Over 90 days still accruing$

-

$

-

$

-

$

2

$

200

Nonaccrual loans768

1,339

1,347

2,359

3,911

Total nonperforming loans768

1,339

1,347

2,361

4,111

Other real estate owned-

-

-

-

-

Total nonperforming assets$

768

$

1,339

$

1,347

$

2,361

$

4,111

Classified Assets:^1Substandard$

10,672

$

10,052

$

9,843

$

18,920

$

20,579

Doubtful-

-

-

68

-

Loss-

-

-

-

-

Total classified loans$

10,672

$

10,052

$

9,843

$

18,988

$

20,579

Other real estate owned-

-

-

-

-

Total classified assets$

10,672

$

10,052

$

9,843

$

18,988

$

20,579

Performing TDR loans:$

3,658

$

3,776

$

2,516

$

2,847

$

1,072

Delinquent Loans:^1Loans 30-89 days past due$

1,688

$

2,524

$

1,681

$

3,095

$

714

90 days or more past due and still accruing-

-

-

2

200

Nonaccrual768

1,339

1,347

2,359

3,911

Total delinquent loans$

2,456

$

3,863

$

3,028

$

5,456

$

4,825

Asset Quality Ratios:Net (recoveries) charge-offs to average loans?(0.03

%)

(0.01

%)

(0.01

%)

0.32

%

0.10

%

Nonaccrual loans to loans receivable0.06

%

0.12

%

0.12

%

0.23

%

0.39

%

Nonperforming loans to loans receivable0.06

%

0.12

%

0.12

%

0.23

%

0.41

%

Nonperforming assets to total assets0.04

%

0.08

%

0.09

%

0.17

%

0.29

%

Classified loans to loans receivable0.85

%

0.89

%

0.88

%

1.82

%

2.03

%

Classified loans to Tier 1 and ALLL5.53

%

5.40

%

5.47

%

10.89

%

12.13

%

Classified assets to total assets0.56

%

0.62

%

0.69

%

1.38

%

1.47

%

Classified assets to Tier 1 and ALLL5.53

%

5.40

%

5.47

%

10.89

%

12.13

%

ALLL to loans receivable1.19

%

1.32

%

1.34

%

1.38

%

1.35

%

ALLL to loans receivable exc. SBA PPP loans1.26

%

1.42

%

1.48

%

1.51

%

1.48

%

ALLL to nonaccrual loans1953.13

%

1113.37

%

1105.27

%

608.99

%

348.10

%

ALLL to nonperforming loans1953.13

%

1113.37

%

1105.27

%

608.47

%

331.16

%

ALLL to nonperforming assets1953.13

%

1113.37

%

1105.27

%

608.47

%

331.16

%

Texas ratio ?0.40

%

0.72

%

0.75

%

1.35

%

2.42

%

1 Net of SBA guaranteed balance2 Includes loans held-for-sale3 Nonperforming assets divided by tangible common equity and ALLLFIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10(Dollars in thousands) 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2021 2021 2021 2020 2020

Allowance forLoan LossesBalance at $ 14,908 $ 14,888 $ 14,366 $ 13,614 $ 12,283 beginning ofperiodProvision for - - 500 1,600 1,600 loan lossesCharge-offs - - (2 ) (907 ) (292 )

Recoveries 92 20 24 59 23

Balance at $ 15,000 $ 14,908 $ 14,888 $ 14,366 $ 13,614 the end ofperiod NonperformingAssets:^1Over 90 days $ - $ - $ - $ 2 $ 200 stillaccruingNonaccrual 768 1,339 1,347 2,359 3,911 loansTotal 768 1,339 1,347 2,361 4,111 nonperformingloans Other real - - - - - estate ownedTotal $ 768 $ 1,339 $ 1,347 $ 2,361 $ 4,111 nonperformingassets ClassifiedAssets:^1Substandard $ 10,672 $ 10,052 $ 9,843 $ 18,920 $ 20,579

Doubtful - - - 68 -

Loss - - - - -

Total $ 10,672 $ 10,052 $ 9,843 $ 18,988 $ 20,579 classifiedloans Other real - - - - - estate ownedTotal $ 10,672 $ 10,052 $ 9,843 $ 18,988 $ 20,579 classifiedassets Performing $ 3,658 $ 3,776 $ 2,516 $ 2,847 $ 1,072 TDR loans: DelinquentLoans:^1Loans 30-89 $ 1,688 $ 2,524 $ 1,681 $ 3,095 $ 714 days past due90 days ormore past due - - - 2 200 and stillaccruingNonaccrual 768 1,339 1,347 2,359 3,911

Total $ 2,456 $ 3,863 $ 3,028 $ 5,456 $ 4,825 delinquentloans Asset QualityRatios:Net(recoveries) (0.03 %) (0.01 %) (0.01 %) 0.32 % 0.10 %charge-offsto averageloans?Nonaccrualloans to 0.06 % 0.12 % 0.12 % 0.23 % 0.39 %loansreceivableNonperformingloans to 0.06 % 0.12 % 0.12 % 0.23 % 0.41 %loansreceivableNonperforming 0.04 % 0.08 % 0.09 % 0.17 % 0.29 %assets tototal assetsClassifiedloans to 0.85 % 0.89 % 0.88 % 1.82 % 2.03 %loansreceivableClassified 5.53 % 5.40 % 5.47 % 10.89 % 12.13 %loans to Tier1 and ALLLClassified 0.56 % 0.62 % 0.69 % 1.38 % 1.47 %assets tototal assetsClassifiedassets to 5.53 % 5.40 % 5.47 % 10.89 % 12.13 %Tier 1 andALLLALLL to loans 1.19 % 1.32 % 1.34 % 1.38 % 1.35 %receivableALLL to loansreceivable 1.26 % 1.42 % 1.48 % 1.51 % 1.48 %exc. SBA PPPloansALLL to 1953.13 % 1113.37 % 1105.27 % 608.99 % 348.10 %nonaccrualloansALLL to 1953.13 % 1113.37 % 1105.27 % 608.47 % 331.16 %nonperformingloansALLL to 1953.13 % 1113.37 % 1105.27 % 608.47 % 331.16 %nonperformingassetsTexas ratio ? 0.40 % 0.72 % 0.75 % 1.35 % 2.42 %

^1 Net of SBAguaranteedbalance^2 Includesloansheld-for-sale^3 Nonperforming assetsdivided by tangible commonequity and ALLLFIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11WellCapitalizedAdequatelyCapitalizedSeptember 30,June 30,March 31,December 31,September 30,RegulatoryBASEL IIIRequirementFully Phased In2021

2021

2021

2020

2020

Leverage ratioCompanyN/A

N/A

9.61

%

11.35

%

11.89

%

11.56

%

11.76

%

Bank5.00

%

4.00

%

9.60

%

11.33

%

11.87

%

11.54

%

11.72

%

Common equity tier 1 risk-based capital ratioCompanyN/A

N/A

13.61

%

14.39

%

15.00

%

15.01

%

15.24

%

Bank6.50

%

7.00

%

13.59

%

14.37

%

14.98

%

14.97

%

15.20

%

Tier 1 risk-based capital ratioCompanyN/A

N/A

13.61

%

14.39

%

15.00

%

15.01

%

15.24

%

Bank8.00

%

8.50

%

13.59

%

14.37

%

14.98

%

14.97

%

15.20

%

Total risk-based capital ratioCompanyN/A

N/A

14.86

%

15.64

%

16.25

%

16.26

%

16.50

%

Bank10.00

%

10.50

%

14.84

%

15.62

%

16.23

%

16.22

%

16.45

%

Tangible common equity/total assets9.32

%

10.62

%

11.49

%

11.63

%

11.15

%

Tangibel common equity per share$

17.30

$

16.66

$

16.11

$

15.61

$

15.23

FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11 Well Adequately September June 30, March 31, December September Capitalized Capitalized 30, 31, 30, Regulatory BASEL III Requirement Fully 2021 2021 2021 2020 2020 Phased In LeverageratioCompany N/A N/A 9.61 % 11.35 % 11.89 % 11.56 % 11.76 %

Bank 5.00 % 4.00 % 9.60 % 11.33 % 11.87 % 11.54 % 11.72 %

Commonequity tier1risk-basedcapitalratioCompany N/A N/A 13.61 % 14.39 % 15.00 % 15.01 % 15.24 %

Bank 6.50 % 7.00 % 13.59 % 14.37 % 14.98 % 14.97 % 15.20 %

Tier 1risk-basedcapitalratioCompany N/A N/A 13.61 % 14.39 % 15.00 % 15.01 % 15.24 %

Bank 8.00 % 8.50 % 13.59 % 14.37 % 14.98 % 14.97 % 15.20 %

Totalrisk-basedcapitalratioCompany N/A N/A 14.86 % 15.64 % 16.25 % 16.26 % 16.50 %

Bank 10.00 % 10.50 % 14.84 % 15.62 % 16.23 % 16.22 % 16.45 %

Tangiblecommon 9.32 % 10.62 % 11.49 % 11.63 % 11.15 %equity/totalassetsTangibelcommon $ 17.30 $ 16.66 $ 16.11 $ 15.61 $ 15.23 equity pershareFIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12(Dollars in thousands)Three Months EndedSeptember 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020Avg BalanceInterestYieldAvg BalanceInterestYieldAvg BalanceInterestYieldAvg BalanceInterestYieldAvg BalanceInterestYieldNumber of Days in the PeriodINTEREST-EARNING ASSETSLoans ^1$

1,390,851

$

16,800

4.79

%

$

1,195,908

$

14,338

4.81

%

$

1,138,134

$

13,837

4.93

%

$

1,066,368

$

13,045

4.87

%

$

1,046,678

$

12,650

4.81

%

Investment securities?87,585

460

2.08

%

83,152

442

2.13

%

84,679

448

2.15

%

87,818

474

2.15

%

90,450

471

2.07

%

Interest-earning deposits at the FRB and other banks282,512

112

0.16

%

168,677

54

0.13

%

108,127

36

0.14

%

191,703

59

0.12

%

186,678

58

0.12

%

Other earning assets8,925

116

5.16

%

8,737

135

6.20

%

8,196

97

4.80

%

8,196

81

3.93

%

8,196

80

3.88

%

Total interest-earning assets ?1,769,873

17,488

3.92

%

1,456,474

14,969

4.12

%

1,339,136

14,418

4.37

%

1,354,085

13,659

4.01

%

1,332,002

13,259

3.96

%

NONINTEREST-EARNING ASSETSCash and due from banks13,079

10,752

10,025

10,234

10,685

Other noninterest-earning assets36,548

32,002

31,156

28,903

31,216

Total noninterest-earning assets49,627

42,754

41,181

39,137

41,901

Less: Allowance for loan losses(14,958

)

(14,899

)

(14,381

)

(13,505

)

(12,293

)

TOTAL ASSETS$

1,804,542

$

1,484,329

$

1,365,936

$

1,379,717

$

1,361,610

INTEREST-BEARING DEPOSITSInterest-bearing demand$

36,670

$

4

0.04

%

$

13,373

$

2

0.06

%

$

15,813

$

2

0.05

%

$

11,444

$

4

0.14

%

$

11,248

$

4

0.14

%

Money market312,606

388

0.49

%

263,845

352

0.54

%

265,856

366

0.56

%

240,913

360

0.59

%

200,878

404

0.80

%

Savings74,266

71

0.38

%

43,433

55

0.51

%

48,284

60

0.50

%

55,756

77

0.55

%

67,880

154

0.90

%

Time deposits542,901

756

0.55

%

469,000

831

0.71

%

451,347

975

0.88

%

447,839

1,236

1.10

%

452,950

1,790

1.57

%

Total interest-bearing deposits966,443

1,219

0.50

%

789,651

1,240

0.63

%

781,300

1,403

0.73

%

755,952

1,677

0.88

%

732,956

2,352

1.28

%

Borrowings50,000

118

0.94

%

51,539

118

0.92

%

65,667

130

0.80

%

88,645

153

0.69

%

147,149

206

0.56

%

Total interest-bearing liabilities1,016,443

1,337

0.52

%

841,190

1,358

0.65

%

846,967

1,533

0.73

%

844,597

1,830

0.86

%

880,105

2,558

1.16

%

Noninterest-bearing deposits597,056

459,695

343,904

363,937

313,370

Other liabilities16,046

13,906

11,942

12,623

12,750

Stockholders' equity174,997

169,538

163,123

158,560

155,385

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY$

1,804,542

$

1,484,329

$

1,365,936

$

1,379,717

$

1,361,610

Net interest income?$

16,151

$

13,611

$

12,885

$

11,829

$

10,701

Net interest spread3.40

%

3.47

%

3.64

%

3.15

%

2.80

%

Effect of noninterest-bearing sources0.22

%

0.28

%

0.26

%

0.33

%

0.40

%

Net interest margin?3.62

%

3.75

%

3.90

%

3.48

%

3.20

%

Cost of deposits$

1,563,499

$

1,219

0.31

%

$

1,249,346

$

1,240

0.40

%

$

1,125,204

$

1,403

0.51

%

$

1,119,889

$

1,677

0.60

%

$

1,046,326

$

2,352

0.89

%

Cost of funds$

1,613,499

$

1,337

0.33

%

$

1,300,885

$

1,358

0.42

%

$

1,190,871

$

1,533

0.52

%

$

1,208,534

$

1,830

0.60

%

$

1,193,475

$

2,558

0.85

%

1 Includes loans held-for-sale? Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rateFIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12(Dollars in thousands) Three Months Ended September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 Avg Balance Interest Yield Avg Balance Interest Yield Avg Balance Interest Yield Avg Balance Interest Yield Avg Balance InterestYieldNumber of Days in thePeriodINTEREST-EARNING ASSETS $

12,650Loans ^1 $ 1,390,851 $ 16,800 4.79 % $ 1,195,908 $ 14,338 4.81 % $ 1,138,134 $ 13,837 4.93 % $ 1,066,368 $ 13,045 4.87 % $ 1,046,678 4.81

%



471Investment securities? 87,585 460 2.08 % 83,152 442 2.13 % 84,679 448 2.15 % 87,818 474 2.15 % 90,450 2.07

%



58Interest-earning deposits 282,512 112 0.16 % 168,677 54 0.13 % 108,127 36 0.14 % 191,703 59 0.12 % 186,678 at the FRB and other banks 0.12

%



80Other earning assets 8,925 116 5.16 % 8,737 135 6.20 % 8,196 97 4.80 % 8,196 81 3.93 % 8,196 3.88

%



13,259Total interest-earning 1,769,873 17,488 3.92 % 1,456,474 14,969 4.12 % 1,339,136 14,418 4.37 % 1,354,085 13,659 4.01 % 1,332,002 assets ? 3.96

%

NONINTEREST-EARNING ASSETSCash and due from banks 13,079 10,752 10,025 10,234 10,685

Other noninterest-earning 36,548 32,002 31,156 28,903 31,216 assetsTotal noninterest-earning 49,627 42,754 41,181 39,137 41,901 assets Less: Allowance for loan (14,958 ) (14,899 ) (14,381 ) (13,505 ) (12,293 )lossesTOTAL ASSETS $ 1,804,542 $ 1,484,329 $ 1,365,936 $ 1,379,717 $ 1,361,610

INTEREST-BEARING DEPOSITS $

4Interest-bearing demand $ 36,670 $ 4 0.04 % $ 13,373 $ 2 0.06 % $ 15,813 $ 2 0.05 % $ 11,444 $ 4 0.14 % $ 11,248 0.14

%



404Money market 312,606 388 0.49 % 263,845 352 0.54 % 265,856 366 0.56 % 240,913 360 0.59 % 200,878 0.80

%



154Savings 74,266 71 0.38 % 43,433 55 0.51 % 48,284 60 0.50 % 55,756 77 0.55 % 67,880 0.90

%



1,790Time deposits 542,901 756 0.55 % 469,000 831 0.71 % 451,347 975 0.88 % 447,839 1,236 1.10 % 452,950 1.57

%



2,352Total interest-bearing 966,443 1,219 0.50 % 789,651 1,240 0.63 % 781,300 1,403 0.73 % 755,952 1,677 0.88 % 732,956 deposits 1.28

%



206Borrowings 50,000 118 0.94 % 51,539 118 0.92 % 65,667 130 0.80 % 88,645 153 0.69 % 147,149 0.56

%



2,558Total interest-bearing 1,016,443 1,337 0.52 % 841,190 1,358 0.65 % 846,967 1,533 0.73 % 844,597 1,830 0.86 % 880,105 liabilities 1.16

%

Noninterest-bearing 597,056 459,695 343,904 363,937 313,370 depositsOther liabilities 16,046 13,906 11,942 12,623 12,750

Stockholders' equity 174,997 169,538 163,123 158,560 155,385

TOTAL LIABILITIES & $ 1,804,542 $ 1,484,329 $ 1,365,936 $ 1,379,717 $ 1,361,610 STOCKHOLDERS' EQUITY $Net interest income? $ 16,151 $ 13,611 $ 12,885 $ 11,829 10,701

2.80Net interest spread 3.40 % 3.47 % 3.64 % 3.15 % %

Effect of 0.40noninterest-bearing 0.22 % 0.28 % 0.26 % 0.33 %sources %

3.20Net interest margin? 3.62 % 3.75 % 3.90 % 3.48 % %

$

2,352Cost of deposits $ 1,563,499 $ 1,219 0.31 % $ 1,249,346 $ 1,240 0.40 % $ 1,125,204 $ 1,403 0.51 % $ 1,119,889 $ 1,677 0.60 % $ 1,046,326 0.89

%

$

2,558Cost of funds $ 1,613,499 $ 1,337 0.33 % $ 1,300,885 $ 1,358 0.42 % $ 1,190,871 $ 1,533 0.52 % $ 1,208,534 $ 1,830 0.60 % $ 1,193,475 0.85

%

^1 Includes loans held-for-sale? Amounts calculated on a fully taxable equivalent basis using the currentstatutory federal tax rateFIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13(Dollars in thousands)Three Months EndedSeptember 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020AmountYieldAmountYieldAmountYieldAmountYieldAmountYieldContractual yield$

15,032

4.29

%

$

12,670

4.25

%

$

12,148

4.33

%

$

11,727

4.38

%

$

11,522

4.38

%

SBA discount accretion1,038

0.29

%

1,027

0.34

%

738

0.26

%

730

0.27

%

615

0.23

%

Prepayment penalties & late fees41

0.01

%

89

0.03

%

121

0.04

%

177

0.07

%

221

0.09

%

Amortization of net deferred costs689

0.20

%

552

0.19

%

830

0.30

%

411

0.15

%

292

0.11

%

As reported yield on loans$

16,800

4.79

%

$

14,338

4.81

%

$

13,837

4.93

%

$

13,045

4.87

%

$

12,650

4.81

%

FIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13(Dollars in thousands) Three Months Ended September 30, June 30, 2021 March 31, 2021 December 31, September 30, 2021 2020 2020 Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Contractual yield $ 15,032 4.29 % $ 12,670 4.25 % $ 12,148 4.33 % $ 11,727 4.38 % $ 11,522 4.38 %

SBA discount 1,038 0.29 % 1,027 0.34 % 738 0.26 % 730 0.27 % 615 0.23 %accretionPrepayment 41 0.01 % 89 0.03 % 121 0.04 % 177 0.07 % 221 0.09 %penalties & latefeesAmortization of 689 0.20 % 552 0.19 % 830 0.30 % 411 0.15 % 292 0.11 %net deferredcostsAs reported yield $ 16,800 4.79 % $ 14,338 4.81 % $ 13,837 4.93 % $ 13,045 4.87 % $ 12,650 4.81 %on loansMARGIN ANALYSIS (Unaudited) - Table 14(Dollars in thousands)Nine Months EndedSeptember 30,2021September 30, 2020Avg BalanceInterestYieldAvg BalanceInterestYieldNumber of Days in the PeriodINTEREST-EARNING ASSETSLoans ^1$

1,242,557

$

44,975

4.84

%

$

1,002,303

$

38,847

5.18

%

Investment securities?85,149

1,350

2.12

%

92,070

1,598

2.32

%

Interest-earning deposits at the FRB and other banks187,078

202

0.14

%

126,835

291

0.31

%

Other earning assets8,622

348

5.40

%

8,195

295

4.81

%

Total interest-earning assets ?1,523,406

46,875

4.11

%

1,229,403

41,031

4.46

%

NONINTEREST-EARNING ASSETSCash and due from banks11,296

9,327

Other noninterest-earning assets33,218

31,124

Total noninterest-earning assets44,514

40,451

Less: Allowance for loan losses(14,748

)

(11,277

)

TOTAL ASSETS$

1,553,172

$

1,258,577

INTEREST-BEARING DEPOSITSInterest-bearing demand$

22,028

$

8

0.05

%

$

12,303

$

14

0.15

%

Money market280,940

1,106

0.53

%

160,402

1,179

0.98

%

Savings55,423

186

0.45

%

67,078

581

1.16

%

Time deposits488,085

2,562

0.70

%

505,867

7,700

2.03

%

Total interest-bearing deposits846,476

3,862

0.61

%

745,650

9,474

1.70

%

Borrowings55,678

366

0.88

%

91,084

407

0.60

%

Total interest-bearing liabilities902,154

4,228

0.63

%

836,734

9,881

1.58

%

Noninterest-bearing deposits467,812

254,549

Other Liabilities13,943

14,571

Stockholders' equity169,263

152,723

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY$

1,553,172

$

1,258,577

Net interest income?$

42,647

$

31,150

Net interest spread3.48

%

2.88

%

Effect of noninterest-bearing sources0.26

%

0.50

%

Net interest margin?3.74

%

3.38

%

Cost of deposits$

1,314,288

$

3,862

0.39

%

$

1,000,199

$

9,474

1.27

%

Cost of funds$

1,369,966

$

4,228

0.41

%

$

1,091,283

$

9,881

1.21

%

1 Includes loans held-for-sale? Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rateMARGIN ANALYSIS (Unaudited) - Table 14(Dollars in thousands) Nine Months Ended September 30,2021 September 30, 2020 Avg Balance Interest Yield Avg Balance Interest YieldNumber of Days inthe PeriodINTEREST-EARNINGASSETSLoans ^1 $ 1,242,557 $ 44,975 4.84 % $ 1,002,303 $ 38,847 5.18 %

Investment 85,149 1,350 2.12 % 92,070 1,598 2.32 %securities?Interest-earning 187,078 202 0.14 % 126,835 291 0.31 %deposits at the FRBand other banksOther earning 8,622 348 5.40 % 8,195 295 4.81 %assetsTotal 1,523,406 46,875 4.11 % 1,229,403 41,031 4.46 %interest-earningassets ? NONINTEREST-EARNINGASSETSCash and due from 11,296 9,327 banksOther 33,218 31,124 noninterest-earningassetsTotal 44,514 40,451 noninterest-earningassets Less: Allowance for (14,748 ) (11,277 )loan losses TOTAL ASSETS $ 1,553,172 $ 1,258,577

INTEREST-BEARINGDEPOSITSInterest-bearing $ 22,028 $ 8 0.05 % $ 12,303 $ 14 0.15 %demandMoney market 280,940 1,106 0.53 % 160,402 1,179 0.98 %

Savings 55,423 186 0.45 % 67,078 581 1.16 %

Time deposits 488,085 2,562 0.70 % 505,867 7,700 2.03 %

Total 846,476 3,862 0.61 % 745,650 9,474 1.70 %interest-bearingdeposits Borrowings 55,678 366 0.88 % 91,084 407 0.60 %

Total 902,154 4,228 0.63 % 836,734 9,881 1.58 %interest-bearingliabilities Noninterest-bearing 467,812 254,549 depositsOther Liabilities 13,943 14,571

Stockholders' 169,263 152,723 equity TOTAL LIABILITIES & $ 1,553,172 $ 1,258,577 STOCKHOLDERS'EQUITY Net interest $ 42,647 $ 31,150income? Net interest spread 3.48 % 2.88 %

Effect of 0.26 % 0.50 %noninterest-bearingsources Net interest 3.74 % 3.38 %margin? Cost of deposits $ 1,314,288 $ 3,862 0.39 % $ 1,000,199 $ 9,474 1.27 %

Cost of funds $ 1,369,966 $ 4,228 0.41 % $ 1,091,283 $ 9,881 1.21 %

^1 Includes loans held-for-sale? Amounts calculated on a fully taxable equivalent basis using the currentstatutory federal tax rateCOMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15(Dollars in thousands)Nine Months EndedSeptember 30, 2021September 30, 2020AmountYieldAmountYieldContractual yield$

39,850

4.29

%

$

35,545

4.74

%

SBA discount accretion2,803

0.30

%

2,467

0.33

%

Prepayment penalties & late fees251

0.03

%

351

0.05

%

Amortization of net deferred costs2,071

0.22

%

484

0.06

%

As reported yield on loans$

44,975

4.84

%

$

38,847

5.18

View source version on businesswire.com: https://www.businesswire.com/news/home/20211029005088/en/

CONTACT: Douglas J Goddard, EVP & CFO (323) 988-3010 DouglasG@cbb-bank.com