Corporate Strategy and Financial Performance
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Risk Management, Monitoring & Mitigation 11
QUALITY
CONTROL
Asset Quality
Low net charge-offs
and strong asset
quality as a result
of conservative and
proactive credit
culture
Strong reserves -
- ALL
level of 1.28%; future
provisioning based on
loan growth and asset
quality changes
Diversified
commercial loan
portfolio and
geographic footprint
Disciplined loan
growth strategy,
concentration
management, stress
testing and exception
tracking and
monitoring
Well-defined loan
approval levels
CECL implementation
on target for January
2023
Underlies all Strategic Priorities
Interest Rate
Sensitivity
Maintaining an asset
sensitive balance
sheet, poised to take
advantage of rising
interest rates
Limiting longer-term
investment exposure
and actively managing
loan terms
Capturing core, low-
cost deposits
Monitoring dynamic
and static rate ramp
scenarios
Cyber-Security
Fraud Monitoring
■ Board regularly
briefed on cyber-
security matters
Robust information
security training
programs for
associates and Board
Regular third-party
review and testing of
information security,
compliance processes
and cybersecurity
controls
■ No security breaches
to-date
Adaptive fraud
detection and
management
$
Capital
Strong capital levels
well above regulatory
"well-capitalized"
definition
Conservative dividend
payout policy to
improve TCE
Capital stress tests
indicate Bank is well
positioned to absorb
potential losses
Utilizing HTM portfolio
to reduce impact of
rising rates on TCE
Liquidity
u
Liquidity
Management
Loan to deposit ratio
of 83%
Liquidity contingency
plan in place
Liquidity stress testing
performed quarterly
with strong liquidity
under various
scenarios
Available borrowing
capacity of $457.0
million through
correspondent lines of
credit and FHLB
Strong, stable low-
cost core deposit
franchise of 91% of
average total interest-
earning assetsView entire presentation