Q4 2020 Investor Presentation

Revenue $ Category Interest Income Interest Expense Net Interest Income Trust Revenue Service Charges Mortgage Revenue Debit and Credit Card fees Gain on Sale of Securities Other income Q4-20 Linked Quarter Change Down $0.6 million Primarily driven by lower loan volume, which was mostly offset by a $900 million increase in the security portfolio. Down $2.0 million Cost of deposits declined by 5 basis points, primarily driven by time deposit repricing. Up $1.4 million Driven by lower cost of deposits. Down $0.2 million Up $0.4 million Increase was primarily due to fourth quarter seasonal increase. Down $11.0 million Mortgage loan volume declined in Q4, which resulted in lower revenue and a decrease in the fair value mandatory delivery adjustment. Down $0.1 million Merchant revenue down slightly from Q320. Down $22.3 million No securities sold in Q420. Up $5.2 million Increase was primarily attributable to year-end adjustments in CRA related SBIC investment funds. Management's Outlook Management anticipates the following for 2021: 1) Organic loan growth in the mid single digits 2) PPP balances to be forgiven or paid-off by year-end 2021 3) Security portfolio balance to be $5 billion by year-end 2021 4) Stable loan rates 5) New security yields at lower rates Cost of deposits decreased 60 basis points from 12/31/19 to 12/31/20. Anticipate slight additional decline in Q121. Expect a slightly improving net interest income and NIM for Q121, as PPP loans are forgiven and the expected increase in the security portfolio. Anticipate flat Trust revenue for the first three quarters, until our new staff is onboard and productive. We expect the stimulus to lead to a reduction in services charges and we are providing relief to some overdraft fees. We would expect mortgage volume to decline throughout 2021. Anticipate modest increase for 2021. Management will continue to look for opportunities to maximize the value of the investment portfolio. Management expects other income to more closely track historical trends in 2021. 22

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