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1 Earnings Presentation 3rd Quarter 2025
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2 Cautionary Statements Forward Looking: This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 199 5. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: "believe," "expect," "anticipate," "intend," "plan,” "estimate," or words of simil ar meaning, or future or conditional terms, such as "will," "would," "should," "could," "may," "likely," "probably," or "possibly." These statements may address issues that involve significant risks, uncertaintie s, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; ch anges in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing inter est rates or other factors; adverse developments in the financial industry generally, such as the 2023 bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulat ory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting i n, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, trade restrictions and tariffs, civil unre st, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, includ ing changes in accounting standards and tax laws, that may adversely affect our business; our ability to successfully integrate the businesses from recently completed and pending acquisitions, i ncluding our recent merger with Old Point Financial Corporation and our pending merger with Dogwood State Bank (“Dogwood”), to the extent that it may take longer or be more difficult, time-consuming, or costly to accomplish than expected; our ability to close the transaction with Dogwood when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; deposit attrition, operating costs, customer losses, and business disruption associated with recently completed or pending acquisitio ns, including reputational risk and adverse effects on relationships with employees, customers or other business partners, that may be greater than expected; costs or difficulties related to the inte gration of the businesses that we have acquired that may be greater than expected; expected growth opportunities or cost savings associated with recently completed or pending acquisitions that may n ot be fully realized or realized within the expected time frame; the diversion of management's attention and time from ongoing business operations and opportunities on merger related matters; cy bersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain r eliable electronic systems; competitors that may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area, including any adverse impact of actual and proposed cuts to federal spending, including defense, security and military spending, on the economy. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward -looking statements included in this report, see the "Risk Factors" in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2024 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation. Non-GAAP Financial Measures: This press release contains certain financial measures determined by methods other than in accordance with accounting princip les generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net i ncome, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management u ses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non -GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non -GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non -GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.
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3 TowneBank at a Glance #1 Deposit Market Share in Hampton Roads1 Best Banks List2 7 Years in a Row Ranked on $19.7B Total Assets $16.5B Total Deposits 3.50% NIM (FTE) 1.35% Core ROAA 15.99% Core ROTCE (1) Source: FDIC Summary of Deposits for the VA Beach-Norfolk-Newport News, VA MSA, data as of June 30, 2025 (2) © 2025, Forbes Media LLC. Used with permission (3) Total Return as of 09/30/2025; Source: S&P Global, data collected 10/10/2025 Note: Financial results for the quarter ending September 30, 2025 $13.4B Total Loans 31% NIB Deposits / Total Deposits Consistent Focus on Earnings and Growth 143% 10 Year Total Shareholder Return3 CAGR FY00 – FY24 22.7% Earnings Growth
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4 3rd Quarter 2025 Financial Results
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5 Performance Highlights (1) Non-GAAP financial measure – see non-GAAP reconciliations (2) Current reporting period regulatory capital ratios are preliminary Q3-FY25 Q2-FY25 Q/Q Change Q3-FY24 Y/Y Change Total Revenue $215.66 million $207.44 million 4.0% $174.52 million 23.6% Provision for Credit Losses $15.28 million $6.41 million 138.3% -$1.10 million 1488.7% Net Income Attributable to TowneBank $38.98 million $38.84 million 0.4% $42.95 million (9.2%) Earnings Per Share-Diluted $0.51 $0.51 - $0.57 (10.5%) Return on Avg Assets 0.83% 0.86% -3 bps 1.00% -17 bps Return on Avg Tangible Common Equity 1 10.15% 10.44% -29 bps 11.54% -139 bps Net Interest Margin (TE)1 3.50% 3.40% +10 bps 2.93% +57 bps Assets $19.68 billion $18.26 billion 7.8% $17.19 billion 14.5% Loans $13.38 billion $12.36 billion 8.2% $11.41 billion 17.2% Deposits $16.53 billion $15.33 billion 7.8% $14.36 billion 15.1% Loans / Deposits 80.93% 80.63% +30 bps 79.46% +147 bps Noninterest Bearing Deposits / Deposits 31.09% 31.02% +7 bps 29.71% +138 bps Nonperforming Assets / Assets 0.05% 0.05% 0 bps 0.04% +1 bps Book Value per Share $30.38 $29.58 2.7% $28.59 6.2% Tangible Book Value per Share 1 $21.59 $21.98 (1.8%) $21.65 (0.3%) Tangible Common Equity to Tangible Assets 8.97% 9.37% -40 bps 9.75% -78 bps Total Risk Based Capital Ratio2 13.99% 14.49% -50 bps 15.54% -155 bps
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6 Income Statement Summary (1) Non-GAAP financial measure – see non-GAAP reconciliations Dollars in millions, except per share data Q3-FY25 Q2-FY25 Q/Q Change Q3-FY24 Y/Y Change Q3-FY25 Q3-FY24 Y/Y Change Interest Income 218.34$ 207.63$ 5.2% 196.62$ 11.0% 615.59$ 578.48$ 6.4% Interest Expense 71.39 70.42 1.4% 84.34 (15.4%) 210.95 253.93 (16.9%) Net Interest Income 146.95 137.21 7.1% 112.28 30.9% 404.64 324.55 24.7% Provision for Credit Losses 15.28 6.41 138.3% (1.10) 1488.7% 24.11 (2.15) 1219.1% Net Interest Income after Provision for Credit Losses 131.68 130.80 0.7% 113.38 16.1% 380.54 326.70 16.5% Noninterest Income 68.71 70.23 (2.2%) 62.24 10.4% 210.51 192.04 9.6% Noninterest Expense 153.74 150.66 2.0% 126.90 21.1% 434.94 376.48 15.5% Minority Interest in Unconsolidated Subs 0.32 0.43 (26.7%) 0.18 79.0% 1.04 0.80 30.5% Income Before Taxes 46.33 49.94 (7.2%) 48.54 (4.5%) 155.06 141.47 9.6% Provision for Income Tax Expense 7.36 11.10 (33.7%) 5.59 31.6% 26.66 20.98 27.1% Net Income Attributable to TowneBank 38.98$ 38.84$ 0.4% 42.95$ (9.2%) 128.41$ 120.49$ 6.6% Earnings Per Share-Diluted 0.51$ 0.51$ - 0.57$ (10.5%) 1.69$ 1.61$ 5.4% Core Net Income1 One-time Adjustments After Taxes 24.47$ 22.50$ 8.8% 0.44$ 5420.6% 47.37$ 1.74$ 2629.7% Core Net Income 63.45 61.34 3.4% 43.39 46.2% 175.77 122.23 43.8% Core Earnings Per Share-Diluted 0.83$ 0.81$ 2.5% 0.58$ 43.1% 2.32$ 1.63$ 42.2% QTD YTD
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7 Financial Performance Trends Core Net Income1 [Dollars in millions] Core EPS1 Core ROAA1 Core ROATCE1 (1) Non-GAAP financial measure – see non-GAAP reconciliations $216.2 $190.0 $160.9 $163.6 $175.8 FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25 $2.98 $2.62 $2.16 $2.18 $2.32 FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25 1.41% 1.17% 0.97% 0.96% 1.31% FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25 16.81% 14.62% 12.01% 11.24% 15.12% FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25
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8 Net Interest Income Avg. Earning Assets & Yield (TE)1 [Dollars in millions] Net Interest Income & NIM (TE)1 [Dollars in millions] Interest Bearing Deposit Costs (1) Non-GAAP financial measures - see non-GAAP reconciliations Avg. Interest Bearing Liabilities & Cost [Dollars in millions] $15,399 $15,713 $15,546 $16,292 $16,768 5.11% 4.99% 4.97% 5.14% 5.19% Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 $113.4 $119.2 $121.5 $138.3 $148.0 2.93% 3.02% 3.17% 3.40% 3.50% Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 $10,247 $10,461 $10,422 $10,796 $11,067 3.27% 2.97% 2.69% 2.62% 2.56% Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 3.28% 2.97% 2.69% 2.61% 2.55% -1.2% -9.4% -9.4% -3.0% -2.3% Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Cost of IB Deposits Quarterly IB Cost - % Change
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9 NIM & Net Interest Income Sensitivity Net Interest Income & NIM (TE)1 (1) Non-GAAP financial measure - see non-GAAP reconciliations (2) The interest sensitivity chart is a one-year result on net interest income of an instantaneous and permanent rate shock. The results include assumptions about deposit rate changes that may or may not occur. Net Interest Income Sensitivity2 Comments • Loan repricing offsetting much of a slow -paced Fed decline (rate forecast models one cut in Q4-FY25) • Deposit costs will have greater benefit from further rate cuts • NII growth from NIM expansion and current year closed acquisitions Dollars in millions Amount NIM (%) Q2-FY25 138.3$ 3.40% Loans HFI 9.3 0.06% Recurring Accretion 0.6 0.01% Loans HFS 0.6 0.00% Investments & Cash 0.3 -0.01% Earning Assets Mix -0.01% Deposits (1.0) 0.04% Borrowings (0.1) -0.01% Sub Debt 0.1 0.00% Interest Bearing Funding Mix 0.01% Other (0.0) 0.01% Q3-FY25 148.0$ 3.50% -2.26% -0.95% 2.75% 5.37% -200 bp -100 bp Base +100 bp +200 bp IRR - Current Qtr IRR - Prior Qtr
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10 Deposits Portfolio HighlightsDeposit Balances and Cost [Dollars in millions] • Five consecutive quarterly decreases in deposit costs since Q2-24 (77bps cumulative decrease in IB deposit costs) • NIB deposits in legacy Hampton Roads region equal to 35% of total regional deposits (2) • Excluding acquired deposits, total deposits increased $374 million, or 3.5% on an annualized basis compared to prior year-end (1) Source: S&P Global, data as of 8/15/2025. Peers as disclosed in the most recent TOWN proxy statement (2) Includes the impact from recently closed Old Point Financial acquisition 41% 40% 32% 30% 31%33% 31% 25% 23% 23% FY2021 FY2022 FY2023 FY2024 Q2-FY25 NIB Deposits % of Total Deposits TowneBank vs Peers 1 TowneBank Proxy Peer Group (Avg) Deposits (Avg) Q3-FY25 % Total Cost Q/Q % Y/Y % (Dollars in millions) Interest Bearing Demand 1,806 12% 0.37% 1.5% 15.8% Money Market 5,986 38% 2.74% 3.0% 11.7% Savings 332 2% 0.82% -1.6% 5.4% Time Deposits 2,626 17% 3.84% 2.6% -3.6% Interest Bearing Deposits 10,751 69% 2.55% 2.5% 8.0% Noninterest Bearing Deposits 4,898 31% na 4.5% 13.8% Total Deposits 15,649$ 100% 1.75% 3.1% 9.7% 41% 40% 31% 29% 31% 59% 60% 69% 71% 69% $13,574 $13,294 $13,893 $14,437 $16,531 FY2021 FY2022 FY2023 FY2024 Q3-FY25 Noninterest Bearing Deposits Interest Bearing Deposits 0.22% 0.30% 1.61% 2.24% 1.75%
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11 Loans Portfolio HighlightsLoans Balances & Yield (TE)1 [Dollars in millions] • Variable portfolio of $4.6 billion at the end of Q3-25 with 36% of portfolio tied to prime rate(2) • Fixed rate scheduled maturities and amortization of ~$1.3 billion over the next twelve months • Excluding acquired loans, total loans increased $396 million, or 4.6% on an annualized basis compared to prior year-end (1) Non-GAAP financial measure – see non-GAAP reconciliations (2) Includes the impact from recently closed Old Point Financial acquisition 4.20% 4.22% 5.06% 5.42% 5.65% $9,506 $10,795 $11,329 $11,459 $13,379 FY2021 FY2022 FY2023 FY2024 Q3-FY25 $5.97 $6.27 $6.84 $7.42 $7.70 0.06% 0.06% 0.06% 0.06% 0.06% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Nonperforming Loans Nonperforming Loans NPLs / Loans Loans Q3-FY25 % Total Q/Q % Y/Y % (Dollars in millions) Construction and Development 1,239$ 9% 15.5% 10.8% Commercial Real Estate 6,639 50% 6.1% 18.9% Residential 1-4 Family 2,746 21% 10.8% 19.4% Commercial and Industrial 1,452 11% 6.0% 15.6% Government 505 4% -1.2% -3.3% Indirect 698 5% 20.5% 27.6% Consumer & Other 101 0% 13.7% 21.0% Total Loans 13,379$ 100% 8.2% 17.2% 70.0% 81.2% 81.5% 79.4% 80.9% 58.1% 68.1% 67.3% 66.4% 68.0% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Loans % of Deposits and Assets Loans / Deposits Loans / Assets
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12 Investments (1) Non-GAAP financial measure – see non-GAAP reconciliations (2) AFS and HTM portfolio, excludes FHLB and other equity securities Portfolio Highlights • $966 million of expected cash flow from securities portfolio in the next two years • Portfolio duration of 3.23 years at the end of Q3-25 • Portfolio: 94%/6% - AFS/HTM and 81%/19% - Fixed/Floating Investment Balances & Yield (TE)1 [Dollars in millions] 2.02% 2.16% 3.04% 3.45% 3.58% $1,980 $2,405 $2,642 $2,590 $2,874 FY2021 FY2022 FY2023 FY2024 Q3-FY25 AFS HTM FHLB & Other AFS and HTM Securities 2 AFS HTM Total (Dollars in millions) US Treasuries 82$ 96$ 178$ US Agencies 388 68 456 Municipals 500 5 505 Trust Preferred & Oth Corp 149 2 151 MBS Issued by GSE/GNMA 1,639 5 1,644 Securities - Amortized Cost 2,758 177 2,935 Valuation Adjustment (88) - (88) Credit Loss Reserve (1) (0) (1) Total 2,669$ 177$ 2,845$ $382 $584 $401 $356 $244 < 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Expected Cashflows from Investments (As of September 30, 2025) Dollars in millions $1,962 $2,360 $2,592 $2,557 $2,842 0.98% -8.54% -6.39% -6.02% -3.12% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Securities FV and Unrealized Gain (Loss) Cost Unrealized Gain Unrealized Loss Dollars in millions
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13 18% 40% 20% 22% Banking Insurance Mortgage Resort Property Mgmt YTD Q3-FY24 $191.9M Noninterest Income (1) Core noninterest income excluding gain (loss) on equity investments and investment securities (2) Source: S&P Global, data as of 8/15/2025. Peers as disclosed in the most recent TOWN proxy statement 1 1 1.80% 1.39% 1.36% 1.47% 1.56% 0.89% 0.70% 0.62% 0.65% 0.65% FY2021 FY2022 FY2023 FY2024 Q2-FY25 Noninterest Income % Avg Assets TowneBank vs Peers 2 TowneBank Proxy Peer Group (Avg) 20% 38% 19% 23% YTD Q3-FY25 $208.51 Dollars in millions Q3-FY25 Q2-FY25 Q/Q Change Q3-FY24 Y/Y Change Q3-FY25 Q3-FY24 Y/Y Change Residential Mortgage Banking Income Net 13.12$ 13.56$ (3.2%) 11.79$ 11.4% 37.05$ 35.68$ 3.8% Insurance Commissions Income, Net 25.79 25.68 0.4% 25.73 0.3% 77.89 75.30 3.4% Property Mgmt Income, Net 13.53 15.56 (13.0%) 11.22 20.6% 48.58 42.31 14.8% Service Charges on Deposit Accounts 4.06 3.64 11.4% 3.12 30.1% 11.03 9.55 15.5% Credit Card Merchant Fees, Net 1.91 1.79 6.4% 1.83 4.3% 5.40 5.04 7.1% Investment Income Net 3.93 3.16 24.6% 2.84 38.7% 10.17 7.76 31.0% Bank-owned Life Insurance 2.16 1.99 8.3% 1.89 14.4% 6.02 6.97 (13.6%) Other Income 4.22 4.85 (13.0%) 3.81 10.6% 12.38 9.35 32.5% Gain (Loss) on Equity Investment - - - 0.02 (100.0%) 2.00 0.02 9707.8% Gain (Loss) on Investment Securities (0.01) (0.00) 7032.4% - - (0.01) 0.07 (109.7%) Noninterest Income 68.71$ 70.23$ (2.2%) 62.24$ 10.4% 210.51$ 192.04$ 9.6% YTDQTD
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14 Towne Insurance Highlights Revenues2 [Dollars in millions] Insurance Revenue Composition Revenue Growth Trend • Largest bank-owned insurance company in the country1 • Insurance revenue of $31.5 million in Q3 -25 compared to $30.4 million in Q3-24 • CAGR of 11.7% from 2018 to 2024 • 27 Acquisitions since 2001 (1) Bank-owned insurance commissions and fees for commercial and savings banks; Source: S&P Global, data retrieved 8/11/2025 (2) Income does not include travel insurance income or gains from the sale of Beneflex (FY2023 & FY2024) $90.0 $94.1 YTD Q3-FY24 YTD Q3-FY25 Growth = 4.6% $60.9 $74.1 $75.2 $82.3 $91.6 $108.9 $118.0 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 5.9% 10.5% 10.0% 8.2%9.3% 11.3% 19.0% 8.3% FY2021 FY2022 FY2023 FY2024 Organic Growth Total Growth 4.6% 4.6% YTD Q3-FY25 75% 15% 10% Property and Casualty Employee Benefits Contingency and Bonus YTD Q3-FY25 $94.1M
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15 TowneBank Mortgage Highlights Gain on Sales & Fees as a % of Loans Originated Mortgage Production [Dollars in millions] Mortgage Banking Income Net [Dollars in millions] • Mortgage banking income of $13.7 million in Q3 -25 compared to $12.2 million in Q3-24 • Gain on sales & fees as a % of loans originated was 3.32% in Q3-25, up 4bps vs Q3-24 • Uncertainty associated with government efficiency initiatives continues to weigh on our Northern Virginia and Maryland markets $12.2 $11.6 $10.6 $14.1 $13.7 Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 3.28% 3.25% 3.18% 3.13% 3.32% 2.11% 2.12% 2.21% 2.07% 2.15% Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Gross Gain Net Gain 91% 89% 90% 92% 92% 9% 11% 10% 8% 8% $598.2 $565.4 $445.2 $671.5 $636.4 Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Purchase Refinance
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16 Towne Vacations Highlights Home Count [Quarterly Average] Property Management Income Net Property Management Income Net [Dollars in millions] • Property management income net of $13.5 million in Q3-25 compared to $11.2 million in Q3 -24 • Property management locations in North Carolina, South Carolina, Maryland, Tennessee and Florida • NW Florida full year-to-date impact in 2025 (acquired March 1, 2024) • Vacation rental industry continues to be impacted by macro economic uncertainties 2,877 2,814 2,767 2,740 2,744 Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 $11.2 $8.2 $19.5 $15.6 $13.5 Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 26% 22% 16% 9% 11% 16% Deep Creek (MD) Hilton Head (SC) Oak Island (NC) Venture Resorts (TN) Wrightsville Beach (NC) NW Florida YTD Q3-FY25 $48.6M
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17 Wealth Management Highlights 1 Assets Under Management 1, 3 [Dollars in millions] Investment Income Net 1 [Dollars in millions] (1) Excludes activity and income from recently acquired Old Point Trust (2) Gross production is total revenue before Raymond James revenue share/expenses and advisor payout (3) Excludes assets held in 401k and 529 plans • Experienced team of advisors serves a variety of clients providing professional investment consulting or complete financial planning • Investment fee and commission income net of $3.4 million in Q3-25 compared to $2.8 million in Q3 -24 • Assets under management at the end of Q3 -25 totaled $6.3 billion • Gross production2 of $8.2 million in Q3-25 $2.8 $3.2 $3.1 $3.2 $3.4 Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 $4,357 $4,057 $4,843 $5,639 $6,337 FY2021 FY2022 FY2023 FY2024 Q3-FY25
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18 Noninterest Expense 59.66% 62.54% 67.98% 70.63% 63.04% FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25 Core Efficiency Ratio1 (1) Non-GAAP financial measure – see non-GAAP reconciliations $416.25 $440.21 $479.63 $502.57 $397.97 2.71% 2.71% 2.88% 2.95% 2.96% FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25 Core Noninterest Expense1 Core NIE Core NIE / Avg Assets Dollars in millions Dollars in millions Q3-FY25 Q2-FY25 Q/Q Change Q3-FY24 Y/Y Change Q3-FY25 Q3-FY24 Y/Y Change Employee Compensation 78.96$ 78.36$ 0.8% 72.12$ 9.5% 232.40$ 214.85$ 8.2% Occupancy, Furniture and Equipment 15.03 14.56 3.2% 14.01 7.3% 43.55 42.26 3.0% Software and Data Processing 12.15 11.34 7.1% 11.49 5.7% 33.62 33.17 1.4% Advertising and Marketing 3.76 3.23 16.4% 4.16 (9.7%) 11.46 12.27 (6.6%) Other Expenses 43.84 43.17 1.5% 25.12 74.5% 113.91 73.93 54.1% Noninterest Expense 153.74$ 150.66$ 2.0% 126.90$ 21.1% 434.94$ 376.48$ 15.5% Acquisition Related Expenses 17.81 18.74 nm 0.46 nm 36.97 1.07 nm Core Noninterest Expense 135.92$ 131.93$ 3.0% 126.44$ 7.5% 397.97$ 375.40$ 6.0% QTD YTD
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19 Core Efficiency Ratio1 Banking Insurance Mortgage Resort Property Management (1) Non-GAAP financial measure – see non-GAAP reconciliations 56.05% 54.18% 62.45% 68.84% 60.90% FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25 71.28% 66.81% 62.78% 62.39% 60.48% FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25 62.88% 103.03% 122.74% 89.70% 90.21% FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25 67.47% 81.70% 81.39% 85.19% 64.10% FY2021 FY2022 FY2023 FY2024 YTD Q3-FY25
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20 Balance Sheet Summary $19.7B Total Assets 81% Loans / Deposits 1.11% ACL / Loans 31% Noninterest Bearing Deposits / Total Deposits 0.05% Nonperforming Assets / Total Assets Dollars in millions Q3-FY25 Q2-FY25 Q/Q Change Q3-FY24 Y/Y Change Cash and Cash Equivalents 1,250$ 1,112$ 12.4% 1,296$ (3.6%) Securities 2,874 2,782 3.3% 2,600 10.5% Loans Held for Sale 213 239 (11.0%) 264 (19.6%) Loans 13,379 12,360 8.2% 11,413 17.2% Allowance for Credit Losses (149) (134) 11.2% (123) 21.1% Net Loans 13,230 12,225 8.2% 11,289 17.2% Premises and Equipment Net 422 392 7.7% 366 15.4% Goodwill 592 500 18.4% 458 29.3% Intangible Assets 102 74 37.3% 63 61.0% Bank-owned Life Insurance 335 295 13.2% 279 19.8% Other Assets 666 646 3.1% 572 16.4% Assets 19,683 18,265 7.8% 17,188 14.5% Noninterest Bearing Deposits 5,139 4,754 8.1% 4,268 20.4% Interest Bearing Deposits 11,391 10,574 7.7% 10,096 12.8% Deposits 16,531 15,329 7.8% 14,363 15.1% Borrowings 362 294 23.2% 291 24.6% Other Liabilities 384 403 (4.6%) 371 3.5% Liabilities 17,277 16,026 7.8% 15,025 15.0% Shareholders' Equity 2,398 2,231 7.4% 2,146 11.7% Noncontrolling Interest 8 8 (1.2%) 16 (54.3%) Equity 2,405 2,239 7.4% 2,163 11.2% Liabilities and Equities 19,683$ 18,265$ 7.8% 17,188$ 14.5%
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21 Commercial Real Estate Owner and Non-Owner Occupied CRE / Total Risk Based Capital Office Buildings 20% Hotels 13% Shopping Centers 12% Warehouse Light Industrial 12% Auto Dealer and Repair 3% Self Storage 4% Restaurants 3% Retail Buildings 2% Churches 1% Other Commercial 16% Multifamily 14% Q3-FY25 $6.6B 251% 248% 249% 268% 284% Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Dollars in millions Owner Non-owner Total Office Buildings 514$ 792$ 1,306$ Hotels - 873 873 Shopping Centers - 786 786 Warehouse Light Industrial 377 432 809 Auto Dealer and Repair 191 28 219 Self Storage - 237 237 Restaurants 117 52 170 Retail Buildings 78 83 161 Churches 94 3 97 Other Commercial 538 523 1,061 Total 1,910$ 3,809$ 5,719$ Dollars in millions Q3-FY25 % Total Q/Q % Y/Y % CRE-Owner Occupied 1,910$ 29% 5.2% 15.4% CRE-Non Owner Occupied 3,809 57% 7.1% 19.8% Multifamily 920 14% 3.7% 22.6% Commercial Real Estate 6,639$ 100% 6.1% 18.9%
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22 Asset Quality Nonperforming Assets1 [Dollars in millions] Net Charge-offs [Dollars in millions] Allowance for Credit Losses [Dollars in millions] Criticized Loans [Dollars in millions] (1) Non-performing assets (Non-accrual loans/leases, repossessed assets, and real estate owned) as a percent of assets $10.6 $6.8 $7.8 $7.9 $10.4 0.06% 0.04% 0.05% 0.05% 0.05% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Nonperforming Assets NPA / Assets $(0.2) $2.8 $2.9 $1.6 $0.3 0.00% 0.03% 0.03% 0.01% 0.01% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Net Charge-offs NCOs / Avg Loans $106.1 $110.8 $126.5 $123.9 $149.2 1.12% 1.03% 1.12% 1.08% 1.11% FY2021 FY2022 FY2023 FY2024 Q3-FY25 ACL ACL / Loans $58.7 $110.0 $142.3 $154.5 $172.8 0.62% 1.02% 1.26% 1.35% 1.29% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Special Mention Classified Loans Criticized Loans / Loans
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23 Current Expected Credit Loss (CECL) Allowance for Credit Losses1 [Dollars in millions] MACROECONOMIC FORECAST Weighted Moody’s economic sectors REASONABLE & SUPPORTABLE FORECAST PERIOD 2 Years REVERSION PERIOD AND APPROACH 4 quarter reversion period with a blended transition approach KEY MACROECONOMIC VARIABLES Price Indices GDP Unemployment Disposable Income 1.09% 1.11% ACL / Loans $134.19 $134.19 $136.24 $149.18 $(0.25) $2.05 $11.45 $1.75 Allowance 6/30/2025 Old Point Day 1 PCD Allowance Old Point Day 2 Non-PCD Provision Towne Provision Net Charge-offs Q3-FY25 Allowance 9/30/2025 (1) On balance sheet amounts
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24 Liquidity Cash and Securities Liquidity Buffer1 Liquidity Sources [Dollars in millions] Uninsured Deposits [Dollars in millions] (1) Primary liquidity / total assets; primary liquidity is sum of cash & cash equivalents (excl. deferred comp and escrow at other banks) plus unencumbered investment securities Q3-FY25 Available Liquid Funds: Cash and cash equivalents 1,146$ Unencumbered investment securities 1,931 Availability of Borrowings: Amount available from FHLB with loan collateral 1,677 Amount available from unsecured lines of credit with correspondent banks 150 Amount available from Federal Reserve discount window 2,090 Total Liquidity Sources 6,994$ Q3-FY25 TowneBank Estimated Uninsured Deposits 7,695$ Less Collateralized Deposits 685 Adjusted Uninsured Deposits 7,010 TowneBank Total Deposits 16,531 Adjusted Uninsured Deposits / Total Deposits 42% Total Liquidity Sources / Adjusted Uninsured Deposits 100% 19.9% 6.7% 6.1% 7.2% 5.7%12.1% 15.2% 15.7% 15.0% 14.6% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Cash / Assets Securities / Assets 28.4% 17.5% 16.0% 17.5% 15.6% FY2021 FY2022 FY2023 FY2024 Q3-FY25
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25 Capital Common Equity Tier 11 Tier 1 Risk-Based1 Total Risk-Based1 Tier 1 Leverage1 (1) Current reporting period regulatory capital ratios are preliminary (2) FDIC “Well Capitalized” under prompt corrective action rules 12.36% 11.92% 12.18% 12.77% 11.18% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Well Capitalized2 12.51% 12.04% 12.29% 12.89% 11.23% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Well Capitalized2 15.56% 14.80% 15.06% 15.68% 13.99% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Well Capitalized2 9.11% 9.87% 10.17% 10.36% 9.84% FY2021 FY2022 FY2023 FY2024 Q3-FY25 Well Capitalized2
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26 Shareholder Value 10Yr Total Shareholder Return - TowneBank vs Peers1 Dividends Book Value and Tangible Book Value per Share Tangible Book Value Roll Forward (1) 10Yr Total Return as of 9/30/2025; Source: S&P Global, data collected 10/10/2025. Peer group median - peers as disclosed in the most recent TOWN proxy statement (2) Acquisition related impact to balance sheet – share issuance, changes to goodwill, intangibles and paid in capital $0.72 $0.78 $0.89 $0.98 $1.00 FY2020 FY2021 FY2022 FY2023 FY2024 $0.75 $0.79 Q3-FY24 Q3-FY25 YTD $21.55 +$1.70 ($0.79) +$0.74 ($1.57) ($0.04) $21.59 Q4-FY24 Net Income Dividends AOCI Acquisition Related Impact Other Q3-FY25 $26.13 $25.73 $27.24 $28.43 $30.38 $19.15 $18.84 $20.28 $21.55 $21.59 FY2021 FY2022 FY2023 FY2024 Q3-FY25 Book Value Tangible Book Value 2 143% 98% Towne Peers
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27 Book Value and Tangible Book Value $26.13 $25.73 $27.24 $28.43 $30.38 $19.15 $18.84 $20.28 $21.55 $21.59 $4.86 $4.84 $4.88 $4.80 $6.87 $1.43 $1.40 $1.53 $1.46 $1.35 $0.30 $0.29 $0.11 $0.11 $0.10 $0.40 $0.36 $0.44 $0.52 $0.47 $0.15 $(1.93) $(1.59) $(1.54) $(0.80) FY2021 FY2022 FY2023 FY2024 Q3-FY25 Book Value Tangible BV Banking-GW/Intang Insurance-GW/Intang Mortgage-GW/Intang Resort PM-GW/Intang AOCI
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28 Outlook Summary Loans and Asset Quality Profitability(1) Strategic • Targeting annualized core loan growth in the mid-single digits • Anticipating credit quality to remain stable in the near term with potential for incremental reserve build due to M&A and loan growth • Net interest income expected to range between $560-570 million for FY2025(1)(2)(3) • Noninterest income of $270-275 million for FY2025(1) • Noninterest expense of $545-555 million for FY2025(1)(4) • Strong capital and liquidity levels to support continued growth • Diversified business model with proven ability to capitalize during disruptive economic environments • Valuable deposit franchise • Opportunistic M&A across all lines of business (1) Includes Village and recently closed Old Point acquisition (2) Assumes one rate cut in Q4-FY25 (3)Tax equivalent (4) Excludes one-time M&A expenses
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29 Non-GAAP Reconciliations
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30 Non-GAAP Reconciliations Core Net Income and Related Metrics (1) Gains related to the sale of Beneflex in FY2023 & FY2024 and BHHS Towne Realty (79% ownership stake) in FY2023 Amounts in millions except per share data Q3-FY25 Q2-FY25 Q3-FY24 FY2024 FY2023 FY2022 FY2021 Net Income Attributable to TowneBank 38.98$ 38.84$ 42.95$ 161.76$ 153.72$ 188.99$ 215.38$ Adjustments Plus: Acquisition Related Expenses 17.81 18.74 0.46 1.34 9.59 1.06 1.02 Plus: Initial Provision for Credit Losses 12.00 6.24 - - 4.01 - - Plus: FDIC Special Assessment - - - 0.71 5.17 - - Less: Gain (Loss) on Equity Investment 1 - - 0.02 0.15 7.52 - - Plus: Income Tax & Other Adjustments (5.34) (2.47) 0.00 (0.02) (4.02) (0.04) (0.20) Core Net Income 63.45$ 61.34$ 43.39$ 163.64$ 160.94$ 190.01$ 216.20$ Return on Avg Assets 0.83% 0.86% 1.00% 0.95% 0.92% 1.16% 1.40% Core Return on Avg Assets 1.35% 1.36% 1.01% 0.96% 0.97% 1.17% 1.41% Earnings Per Share-Diluted 0.51$ 0.51$ 0.57$ 2.15$ 2.06$ 2.60$ 2.97$ Core Earnings Per Share-Diluted 0.83$ 0.81$ 0.58$ 2.18$ 2.16$ 2.62$ 2.98$ Return on Avg Tangible Common Equity 10.15% 10.44% 11.54% 11.11% 11.50% 14.54% 16.75% Core Return on Avg Tangible Common Equity 15.99% 16.03% 11.65% 11.24% 12.01% 14.62% 16.81% Total Revenue 215.66$ 207.44$ 174.52$ 693.75$ 694.12$ 686.93$ 680.33$ Less: Gain (Loss) on Securities Investments (0.01) (0.00) - 0.07 - - 1.25 Less: Gain (Loss) on Equity Investments - - 0.02 0.24 9.38 - (0.03) Total Revenue Adjusted 215.67 207.44 174.50 693.44 684.75 686.93 679.11 Noninterest Expense 153.74$ 150.66$ 126.90$ 503.92$ 489.22$ 441.28$ 417.27$ Less: Intangible Amortization 4.43 3.98 3.13 12.77 14.15 10.62 11.13 Noninterest Expense Adjusted 149.31 146.69 123.77 491.15 475.07 430.66 406.15 Efficiency Ratio 69.23% 70.71% 70.93% 70.83% 69.38% 62.69% 59.81% Less: Acquisition Related Expenses 17.81 18.74 0.46 1.34 9.59 1.06 1.02 Core Efficiency Ratio 60.97% 61.68% 70.67% 70.63% 67.98% 62.54% 59.66% QTD Year
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31 Core Efficiency Ratio – Banking Core Efficiency Ratio – Insurance Core Efficiency Ratio – Resort Property ManagementCore Efficiency Ratio – Mortgage Non-GAAP Reconciliations YTD Amounts in millions Q3-FY25 FY2024 FY2023 FY2022 FY2021 Total Revenue 446.34$ 490.95$ 499.53$ 495.49$ 430.21$ Less: Gain (Loss) on Securities Investments (0.01) 0.07 - - 1.25 Less: Gain (Loss) on Equity Investments 2.00 - - - (0.03) Total Revenue Adjusted 444.34 490.88 499.53 495.49 428.99 Noninterest Expense 311.40$ 343.17$ 326.17$ 272.39$ 244.01$ Less: Intangible Amortization 5.37 4.38 5.15 3.01 3.55 Noninterest Expense Adjusted 306.04 338.79 321.02 269.39 240.46 Efficiency Ratio 68.87% 69.02% 64.26% 54.37% 56.05% Less: Acquisition Related Expenses 35.44 0.87 9.08 0.96 - Core Efficiency Ratio 60.90% 68.84% 62.45% 54.18% 56.05% Year YTD Amounts in millions Q3-FY25 FY2024 FY2023 FY2022 FY2021 Total Revenue 42.24$ 53.37$ 56.25$ 74.14$ 143.63$ Less: Gain (Loss) on Securities Investments - - - - - Less: Gain (Loss) on Equity Investments - - 8.83 - - Total Revenue Adjusted 42.24 53.37 47.42 74.14 143.63 Noninterest Expense 39.64$ 48.16$ 59.06$ 76.96$ 90.89$ Less: Intangible Amortization - 0.29 0.58 0.58 0.58 Noninterest Expense Adjusted 39.64 47.87 58.49 76.39 90.31 Efficiency Ratio 93.84% 89.70% 123.34% 103.03% 62.88% Less: Acquisition Related Expenses 1.53 - 0.29 - - Core Efficiency Ratio 90.21% 89.70% 122.74% 103.03% 62.88% Year YTD Amounts in millions Q3-FY25 FY2024 FY2023 FY2022 FY2021 Total Revenue 79.13$ 100.42$ 90.92$ 74.34$ 65.66$ Less: Gain (Loss) on Securities Investments - - - - - Less: Gain (Loss) on Equity Investments - 0.24 0.54 - - Total Revenue Adjusted 79.13 100.18 90.38 74.34 65.66 Noninterest Expense 52.01$ 68.17$ 62.93$ 54.24$ 51.60$ Less: Intangible Amortization 4.15 5.66 6.10 4.51 4.77 Noninterest Expense Adjusted 47.86 62.51 56.83 49.73 46.83 Efficiency Ratio 60.48% 62.39% 62.88% 66.89% 71.32% Less: Acquisition Related Expenses - 0.00 0.09 0.06 0.03 Core Efficiency Ratio 60.48% 62.39% 62.78% 66.81% 71.28% Year YTD Amounts in millions Q3-FY25 FY2024 FY2023 FY2022 FY2021 Total Revenue 48.67$ 50.60$ 47.42$ 42.97$ 40.82$ Less: Gain (Loss) on Securities Investments - - - - - Less: Gain (Loss) on Equity Investments - - - - - Total Revenue Adjusted 48.67 50.60 47.42 42.97 40.82 Noninterest Expense 33.10$ 46.01$ 41.06$ 37.68$ 30.78$ Less: Intangible Amortization 1.91 2.44 2.33 2.53 2.24 Noninterest Expense Adjusted 31.19 43.57 38.73 35.15 28.54 Efficiency Ratio 64.10% 86.11% 81.68% 81.82% 69.91% Less: Acquisition Related Expenses - 0.47 0.14 0.05 0.99 Core Efficiency Ratio 64.10% 85.19% 81.39% 81.70% 67.47% Year
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32 Non-GAAP Reconciliations Tax Equivalent (TE) Adjustments Tangible Book Value per Share Amounts in millions Q3-FY25 Q2-FY25 Q1-FY25 Q4-FY24 Q3-FY24 Loans TE Adjustment 0.75$ 0.75$ 0.75$ 0.78$ 0.82$ Securities TE Adjustment 0.33 0.31 0.32 0.32 0.29 Tax-Equivalent Adjustment 1.08 1.06 1.07 1.10 1.11 Yield & Margin Impacts: Loan Yield 5.63% 5.53% 5.36% 5.38% 5.43% Loan Yield (TE) 5.65% 5.56% 5.38% 5.41% 5.46% Securities Investment Yield 3.54% 3.59% 3.44% 3.42% 3.51% Securities Investment Yield (TE) 3.58% 3.63% 3.49% 3.47% 3.56% Earning Asset Yield 5.17% 5.11% 4.95% 4.96% 5.08% Earning Asset Yield (TE) 5.19% 5.14% 4.97% 4.99% 5.11% Net Interest Margin (GAAP) 3.48% 3.38% 3.14% 2.99% 2.90% Net Interest Margin (TE) 3.50% 3.40% 3.17% 3.02% 2.93% Amounts in millions except per share data Q3-FY25 Q2-FY25 Q1-FY25 Q4-FY24 Q3-FY24 Shareholders' Equity (Common) 2,397.53$ 2,231.35$ 2,200.66$ 2,139.33$ 2,146.28$ Goodwill and Intangible Assets 693.57 573.89 514.76 517.79 520.88 Tangible Common Equity 1,703.96$ 1,657.45$ 1,685.89$ 1,621.54$ 1,625.40$ Common Shares Outstanding 78.93 75.42 75.39 75.26 75.07 Tangible Book Value per Share 21.59$ 21.98$ 22.36$ 21.55$ 21.65$
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