Investor Presentaiton

4 Hotel Franchise Finance Structured for Superior Through-Cycle Performance Financial flexibility is maximized through deep industry expertise, strong operating partners, and conservative underwriting structure Hotels By Product As of 3/31/2020 Avg. # of Hotels Commitment Outstanding Outstanding • Hotel Franchise Finance portfolio, focused on "select-service" hotels, was $1.98Bn (8.5%) of loan portfolio 65% LTC discipline, thoughtful structures, and strong operating partners support maximizes financial flexibility to hotel stabilization Direct dialogue with sophisticated hotel sponsors drives loan modification strategy to fund operations through economic trough to recovery ($ in million) CRE Investor (Term Loan) 163 $1,881 $1,810 $11.1 Proj. Improvements (PIPS) N/A¹ $122 $23 $0.8 Construction 12 $297 $126 $10.7 C&I 0 $25 $19 $19.0 - Total $1,978 $11.3 175 $2,325 Conservative underwriting provides meaningful cash flow cushion; focused on Loan-to-Cost Longer term, solutions-based modification approach combines mutual upfront client P&I contribution with bank deferment Successfully implemented: 12 mo. (42%), 9-6 mo. (22%), and other (5%) modifications with 12% making normal course payments All hotel relationships expected to have positive modification outcomes Geographic Diversification DSCR Debt Yield Weighted Avg.: 1.9x 10.8% LTV 60.9% 22.1% ■>12% ■≥1.60x 51.8% ■10% - 12.0% ■ <65% ■1.30x - 1.59x ■9.25% - 9.99% 72.6% ■1.00x - 1.29x 41.2% ■65% -75% <9.25% MA, 3% AZ, 11% CA, 6% States <3%, 26% NY, 7% GA, 7% ■ <1.0x PA, 4% ■Const. 21.4% ■Const. ■>75% 7.9% N/A LA, 4% FL, 6% ■ N/A 7.1% 20.5% IL,4% TX, 6% 7.9% 26.3% 6.3% NJ, 4% 5.4% 6.3% 1.9% IN, 4% MI, 5% TN, 5% 1.1% WA 1) PIP notes are always part of a larger hotel term loan facility; therefore, 28 hotels with PIPs are included in CRE Investor 52% of commitments in Top 25 MSAs ⚫ 70% in Top 50 MSAs 10

View entire presentation