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1 Earnings Presentation 4th 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 1995. 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 similar 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, uncertainties, 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; changes 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 interest 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 regulatory 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 in, 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 unrest, 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, including changes in accounting standards and tax laws and changes impacting the rulemaking, supervision, examination and enforcement priorities of the federal banking agencies, that may adversely affect our business; our ability to successfully integrate the businesses from past and future acquisitions, including our recent mergers with Old Point Financial Corporation and Dogwood State Bank, to the extent that that process may take longer or be more difficult, time- consuming, or costly to accomplish than expected; deposit attrition, operating costs, customer losses, and business disruption associated with recently completed acquisitions, 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 integration of the businesses that we have acquired that may be greater than expected; expected growth opportunities or cost savings associated with recently completed acquisitions that may not 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 and integration related matters; the introduction of new lines of business or new products and services; cybersecurity 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 reliable electronic systems; competitors that may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; and 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 principles 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 income, 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 uses 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 3.58% NIM (FTE) 1.11% Core ROAA 13.74% 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 12/31/2025; Source: S&P Global, data collected 01/19/2026 Note: Financial results for the quarter ending December 31, 2025 $13.3B Total Loans 31% NIB Deposits / Total Deposits Consistent Focus on Earnings and Growth 112% 10 Year Total Shareholder Return3 CAGR FY00 – FY25 21.9% Earnings Growth
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4 4th 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 (3) Prior periods adjusted to reflect adoption of new revenue recognition standard for Towne Vacations property management income. This revision did not have a material impact on annual earnings Q4-FY25 Q3-FY25 Q/Q Change Q4-FY24 Y/Y Change Total Revenue $219.94 million $222.58 million (1.2%) $175.55 million 25.3% Provision for Credit Losses -$0.17 million $15.28 million (101.1%) $1.61 million (110.5%) Net Income Attributable to TowneBank $40.63 million $44.30 million (8.3%) $39.97 million 1.7% Earnings Per Share-Diluted $0.51 $0.58 (12.1%) $0.53 (3.8%) Return on Avg Assets 0.82% 0.94% -12 bps 0.92% -10 bps Return on Avg Tangible Common Equity 1 10.36% 11.45% -109 bps 10.46% -10 bps Net Interest Margin (TE)1 3.58% 3.50% +8 bps 3.02% +56 bps Assets $19.69 billion $19.67 billion 0.1% $17.24 billion 14.2% Loans $13.34 billion $13.38 billion (0.3%) $11.46 billion 16.4% Deposits $16.51 billion $16.53 billion (0.1%) $14.44 billion 14.4% Loans / Deposits 80.78% 80.93% -15 bps 79.37% +141 bps Noninterest Bearing Deposits / Deposits 30.73% 31.09% -36 bps 29.46% +127 bps Nonperforming Assets / Assets 0.07% 0.05% +2 bps 0.05% +2 bps Book Value per Share $30.67 $30.27 1.3% $28.33 8.3% Tangible Book Value per Share 1 $21.93 $21.49 2.1% $21.44 2.2% Tangible Common Equity to Tangible Assets 9.11% 8.93% +18 bps 9.65% -54 bps Total Risk Based Capital Ratio2 14.14% 13.98% +16 bps 15.68% -154 bps 3 3
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6 Income Statement Summary (1) Non-GAAP financial measure – see non-GAAP reconciliations (2) Prior periods adjusted to reflect adoption of new revenue recognition standard for Towne Vacations property management income Dollars in millions, except per share data Q4-FY25 Q3-FY25 Q/Q Change Q4-FY24 Y/Y Change Q4-FY25 Q4-FY24 Y/Y Change Interest Income 230.67$ 218.34$ 5.6% 196.05$ 17.7% 846.26$ 774.53$ 9.3% Interest Expense 71.71 71.39 0.4% 77.99 (8.1%) 282.65 331.92 (14.8%) Net Interest Income 158.96 146.95 8.2% 118.06 34.6% 563.61 442.61 27.3% Provision for Credit Losses (0.17) 15.28 (101.1%) 1.61 (110.5%) 23.94 (0.55) nm Net Interest Income after Provision for Credit Losses 159.13 131.68 20.9% 116.45 36.7% 539.67 443.15 21.8% Noninterest Income 60.98 75.63 (19.4%) 57.49 6.1% 272.11 250.68 8.5% Noninterest Expense 166.62 153.74 8.4% 127.44 30.7% 601.56 503.92 19.4% Minority Interest in Unconsolidated Subs 0.22 0.32 (30.5%) 0.10 120.4% 1.26 1.02 24.4% Income Before Taxes 53.27 53.25 0.0% 46.40 14.8% 208.95 188.90 10.6% Provision for Income Tax Expense 12.64 8.96 41.0% 6.43 96.5% 39.43 27.55 43.1% Net Income Attributable to TowneBank 40.63$ 44.30$ (8.3%) 39.97$ 1.7% 169.53$ 161.36$ 5.1% Earnings Per Share-Diluted 0.51$ 0.58$ (12.1%) 0.53$ (3.8%) 2.21$ 2.15$ 3.0% Core Net Income1 One-time Adjustments After Taxes 14.66$ 24.47$ (40.1%) 0.15$ 9602.5% 62.03$ 1.89$ 3188.1% Core Net Income 55.29 68.77 (19.6%) 40.12 37.8% 231.55 163.24 41.8% Core Earnings Per Share-Diluted 0.70$ 0.90$ (22.2%) 0.53$ 32.1% 3.02$ 2.17$ 39.0% QTD YTD 2 2 2
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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 $160.4 $163.2 $231.6 FY2023 FY2024 FY2025 $2.15 $2.17 $3.02 FY2023 FY2024 FY2025 0.96% 0.96% 1.26% FY2023 FY2024 FY2025 11.99% 11.23% 14.82% FY2023 FY2024 FY2025
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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] $15,713 $15,546 $16,292 $16,768 $17,730 4.99% 4.97% 5.14% 5.19% 5.19% Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 $119.2 $121.5 $138.3 $148.0 $160.1 3.02% 3.17% 3.40% 3.50% 3.58% Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 $10,461 $10,422 $10,796 $11,067 $11,753 2.97% 2.69% 2.62% 2.56% 2.42% Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 2.97% 2.69% 2.61% 2.55% 2.40% -9.4% -9.4% -3.0% -2.3% -5.9% Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 Cost of IB Deposits Quarterly IB Cost - % Change
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9 NIM & Net Interest Income Sensitivity Net Interest Income & NIM (TE)1 (1) Non-GAAP financial measure - see non-GAAP reconciliations (2) The interest sensitivity chart is a one-year result on net interest income of an instantaneous and permanent rate shock. The results include assumptions about deposit rate changes that may or may not occur. Net Interest Income Sensitivity2 Comments • Sensitivity changes reflect mid-rate cycle beta modifications and recent deposit rate cuts • Incremental rate cuts spread over time have been manageable • NII growth from NIM expansion, repricing fixed rate maturities and closed acquisitions Dollars in millions Amount NIM (%) Q3-FY25 148.0$ 3.50% Loans HFI 7.7 -0.05% Recurring Accretion 2.5 0.05% Loans HFS (0.6) -0.01% Investments & Cash 2.8 0.00% Earning Assets Mix 0.00% Deposits 0.1 0.10% Borrowings (0.2) -0.01% Sub Debt (0.3) 0.00% Interest Bearing Funding Mix 0.01% Other (0.0) -0.01% Q4-FY25 160.1$ 3.58% -3.70% -2.25% 1.34% 2.53% -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] • Six consecutive quarterly decreases in deposit costs since Q2-24 (92bps cumulative decrease in IB deposit costs) • NIB deposits in legacy Hampton Roads region equal to 33% of total regional deposits (2) • Excluding acquired deposits, total deposits increased $414 million, or 2.9% on an annualized basis compared to prior year-end (1) Source: S&P Global, data as of 11/17/2025. Peers as disclosed in the most recent TOWN proxy statement (2) Includes the impact from recent Old Point Financial acquisition 32% 30% 31% 25% 23% 23% FY2023 FY2024 Q3-FY25 NIB Deposits % of Total Deposits TowneBank vs Peers 1 TowneBank Proxy Peer Group (Avg) Deposits (Avg) Q4-FY25 % Total Cost Q/Q % Y/Y % (Dollars in millions) Interest Bearing Demand 2,053 12% 0.38% 13.6% 27.3% Money Market 6,214 37% 2.57% 3.8% 12.1% Savings 332 2% 0.75% -0.1% 5.2% Time Deposits 2,790 17% 3.72% 6.2% 3.5% Interest Bearing Deposits 11,388 69% 2.40% 5.9% 12.0% Noninterest Bearing Deposits 5,184 31% na 5.8% 18.2% Total Deposits 16,572$ 100% 1.65% 5.9% 13.9% 31% 29% 31% 69% 71% 69% $13,893 $14,437 $16,509 FY2023 FY2024 FY2025 Noninterest Bearing Deposits Interest Bearing Deposits 1.61% 2.24% 1.77%
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11 Loans Portfolio Highlights2Loans Balances & Yield (TE)1 [Dollars in millions] • Variable portfolio of $4.8 billion at the end of Q4-25 with 75% of portfolio tied to prime rate or SOFR • Fixed rate scheduled maturities and amortization of ~$1.3 billion over the next twelve months • Excluding acquired loans, total loans increased $402 million, or 3.5% on an annualized basis compared to prior year-end (1) Non-GAAP financial measure – see non-GAAP reconciliations (2) Information as of 12/31/25 excludes impacts of 2026 acquisitions 5.06% 5.42% 5.57% $11,329 $11,459 $13,336 FY2023 FY2024 FY2025 $6.84 $7.42 $11.73 0.06% 0.06% 0.09% FY2023 FY2024 FY2025 Nonperforming Loans Nonperforming Loans NPLs / Loans Loans Q4-FY25 % Total Q/Q % Y/Y % (Dollars in millions) Construction and Development 1,266$ 9% 2.2% 17.0% Commercial Real Estate 6,568 49% -1.1% 16.7% Residential 1-4 Family 2,766 21% 0.7% 20.1% Commercial and Industrial 1,455 11% 0.2% 13.7% Government 508 4% 0.6% -1.1% Indirect 672 5% -3.6% 18.5% Consumer & Other 101 1% 0.4% 15.0% Total Loans 13,336$ 100% -0.3% 16.4% 81.5% 79.4% 80.8% 67.3% 66.5% 67.7% FY2023 FY2024 FY2025 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 (3) Information as of 12/31/25 excludes impacts of 2026 acquisitions Portfolio Highlights3 • Portfolio roll-off yield of 3.24% over the next twelve months • Portfolio duration of 3.22 years at the end of Q4-25 • Portfolio: 95%/5% - AFS/HTM and 82%/18% - Fixed/Floating Investment Balances & Yield (TE)1 [Dollars in millions] 3.04% 3.45% 3.60% $2,642 $2,590 $2,895 FY2023 FY2024 FY2025 AFS HTM FHLB & Other AFS and HTM Securities 2 AFS HTM Total (Dollars in millions) US Treasuries 82$ 96$ 178$ US Agencies 387 48 435 Municipals 510 5 516 Trust Preferred & Oth Corp 148 2 150 MBS Issued by GSE/GNMA 1,657 5 1,662 Securities - Amortized Cost 2,784 157 2,941 Valuation Adjustment (73) - (73) Credit Loss Reserve (1) (0) (1) Total 2,710$ 157$ 2,867$ $450 $551 $413 $355 $265 < 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Expected Cashflows from Investments (As of December 31, 2025) Dollars in millions $2,592 $2,557 $2,864 -6.39% -6.02% -2.57% FY2023 FY2024 FY2025 Securities FV and Unrealized Gain (Loss) Cost Unrealized Gain Unrealized Loss Dollars in millions
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13 20% 40% 20% 20% Banking Insurance Mortgage Resort Property Mgmt FY2024 $250.4M Noninterest Income (1) Core noninterest income excluding gain (loss) on equity investments and investment securities (2) Source: S&P Global, data as of 11/17/2025. Peers as disclosed in the most recent TOWN proxy statement 1 1 1.36% 1.47% 1.48% 0.62% 0.65% 0.65% FY2023 FY2024 Q3-FY25 Noninterest Income % Avg Assets TowneBank vs Peers 2 TowneBank Proxy Peer Group (Avg) 21% 38% 19% 22% FY2025 $270.01 Dollars in millions Q4-FY25 Q3-FY25 Q/Q Change Q4-FY24 Y/Y Change Q4-FY25 Q4-FY24 Y/Y Change Residential Mortgage Banking Income Net 11.54$ 13.12$ (12.1%) 11.27$ 2.4% 48.58$ 46.96$ 3.5% Insurance Commissions Income, Net 23.12 25.79 (10.4%) 23.27 (0.6%) 101.01 98.56 2.5% Property Mgmt Income, Net 8.41 20.45 (58.9%) 6.57 28.0% 57.62 50.03 15.2% Service Charges on Deposit Accounts 4.64 4.06 14.3% 3.29 40.9% 15.66 12.84 22.0% Credit Card Merchant Fees, Net 1.81 1.91 (5.3%) 1.49 21.6% 7.21 6.53 10.4% Investment Income Net 3.39 3.70 (8.4%) 3.19 6.0% 13.32 10.95 21.6% Bank-owned Life Insurance 2.90 2.16 34.4% 4.48 (35.3%) 8.92 11.44 (22.1%) Other Income 5.04 4.46 13.2% 3.71 35.8% 17.65 13.06 35.2% Gain (Loss) on Equity Investment 0.13 - - 0.22 (42.3%) 2.13 0.24 793.3% Gain (Loss) on Investment Securities 0.01 (0.01) (280.3%) - - 0.01 0.07 (92.5%) Noninterest Income 60.98$ 75.63$ (19.4%) 57.49$ 6.1% 272.11$ 250.68$ 8.5% YTDQTD
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14 Towne Insurance Highlights Revenues2 [Dollars in millions] Insurance Revenue Composition2 Revenue Growth Trend • Largest bank-owned insurance company in the country1 • Insurance revenue of $28.3 million in Q4-25 compared to $28.1 million in Q4-24 • CAGR of 10.5% from 2018 to 2025 • 27 Acquisitions since 2001 • P&C markets are experiencing a gradual softening as rate increases moderate (1) Q3-25 Bank-owned insurance commissions and fees for commercial and savings banks; Source: S&P Global, data retrieved 1/19/2026 (2) Normalized revenue does not include travel insurance income, gains from the sale of Red Sky Travel Insurance (FY2020) or gains from the sale Beneflex (FY2023 , FY2024 & FY2025) 75% 16% 9% Property and Casualty Employee Benefits Contingency FY2025 $122.3M $60.9 $74.1 $75.2 $82.3 $91.6 $108.9 $118.0 $122.3 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 5.9% 10.5% 10.0% 8.2% 3.7% 9.3% 11.3% 19.0% 8.3% 3.7% FY2021 FY2022 FY2023 FY2024 FY2025 Organic Growth Total Growth
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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 $12.2 million in Q4 -25 compared to $11.6 million in Q4-24 • Gain on sales & fees as a % of loans originated was 3.19% in Q4-25 compared to 3.25% in Q4-24 • Experienced an uptick in refinance transactions in Q4 -25 and expect higher refinancing levels going into 2026 $11.6 $10.6 $14.1 $13.7 $12.2 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 3.25% 3.18% 3.13% 3.32% 3.19% 2.12% 2.21% 2.07% 2.15% 2.12% Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 Gross Gain Net Gain 89% 90% 92% 92% 82% 11% 10% 8% 8% 18% $565.4 $445.2 $671.5 $636.4 $623.3 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 Purchase Refinance
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16 Towne Vacations Highlights Home Count [Quarterly Average] Property Management Income Net Property Management Income Net1 [Dollars in millions] • Property management income net of $8.4 million in Q4-25 compared to $6.6 million in Q4 -24 • Property management locations in North Carolina, South Carolina, Maryland, Tennessee and Florida • Revised timing of revenue recognition to more closely align revenue with guest stays • Vacation rental industry continues to be impacted by macro economic uncertainties 2,814 2,767 2,740 2,744 2,662 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 $6.6 $10.6 $18.2 $20.4 $8.4 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 29% 22%15% 9% 11% 14% Deep Creek (MD) Hilton Head (SC) Oak Island (NC) Venture Resorts (TN) Wrightsville Beach (NC) NW Florida FY2025 $57.6M (1) Property management income has been revised in all prior periods to reflect a change in the timing of revenue recognition. This revision did not have a material impact on annual earnings
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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) Includes 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 $3.5 million in Q4-25 compared to $3.2 million in Q4-24 • Assets under management at the end of Q4 -25 totaled $6.5 billion • Gross production2 of $8.8 million in Q4-25 $3.2 $3.1 $3.2 $3.4 $3.5 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 $4,357 $4,057 $4,843 $5,639 $6,516 FY2021 FY2022 FY2023 FY2024 FY2025
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18 Noninterest Expense 68.05% 70.68% 63.53% FY2023 FY2024 FY2025 Core Efficiency Ratio1 (1) Non-GAAP financial measure – see non-GAAP reconciliations $479.63 $502.57 $546.34 2.88% 2.95% 2.97% FY2023 FY2024 FY2025 Core Noninterest Expense1 Core NIE Core NIE / Avg Assets Dollars in millions Dollars in millions Q4-FY25 Q3-FY25 Q/Q Change Q4-FY24 Y/Y Change Q4-FY25 Q4-FY24 Y/Y Change Employee Compensation 85.09$ 78.96$ 7.8% 74.40$ 14.4% 317.49$ 289.25$ 9.8% Occupancy, Furniture and Equipment 16.68 15.03 11.0% 14.67 13.7% 60.23 56.93 5.8% Software and Data Processing 11.22 12.15 (7.6%) 10.66 5.3% 44.84 43.83 2.3% Advertising and Marketing 3.67 3.76 (2.4%) 3.36 9.2% 15.13 15.63 (3.2%) Other Expenses 49.97 43.84 14.0% 24.36 105.1% 163.87 98.29 66.7% Noninterest Expense 166.62$ 153.74$ 8.4% 127.44$ 30.7% 601.56$ 503.92$ 19.4% Acquisition Related Expenses 18.26 17.81 nm 0.27 nm 55.23 1.34 nm Core Noninterest Expense 148.37$ 135.92$ 9.2% 127.17$ 16.7% 546.34$ 502.57$ 8.7% 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 62.45% 68.84% 60.73% FY2023 FY2024 FY2025 62.78% 62.39% 63.10% FY2023 FY2024 FY2025 122.74% 89.70% 91.52% FY2023 FY2024 FY2025 82.62% 85.98% 68.63% FY2023 FY2024 FY2025
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20 Balance Sheet Summary $19.7B Total Assets 81% Loans / Deposits 1.10% ACL / Loans 31% Noninterest Bearing Deposits / Total Deposits 0.07% Nonperforming Assets / Total Assets Dollars in millions Q4-FY25 Q3-FY25 Q/Q Change Q4-FY24 Y/Y Change Cash and Cash Equivalents 1,351$ 1,250$ 8.1% 1,339$ 0.8% Securities 2,895 2,874 0.7% 2,590 11.8% Loans Held for Sale 154 213 (27.3%) 200 (23.0%) Loans 13,336 13,379 (0.3%) 11,459 16.4% Allowance for Credit Losses (147) (149) (1.2%) (124) 18.9% Net Loans 13,188 13,230 (0.3%) 11,335 16.4% Premises and Equipment Net 431 422 2.1% 369 16.8% Goodwill 594 592 0.4% 458 29.8% Intangible Assets 97 102 (5.2%) 60 60.4% Bank-owned Life Insurance 337 335 0.9% 280 20.6% Other Assets 639 658 (2.8%) 607 5.4% Assets 19,687 19,674 0.1% 17,238 14.2% Noninterest Bearing Deposits 5,073 5,139 (1.3%) 4,253 19.3% Interest Bearing Deposits 11,436 11,391 0.4% 10,184 12.3% Deposits 16,509 16,531 (0.1%) 14,437 14.4% Borrowings 371 362 2.5% 297 25.0% Other Liabilities 378 384 (1.6%) 357 5.9% Liabilities 17,258 17,277 (0.1%) 15,091 14.4% Shareholders' Equity 2,422 2,389 1.4% 2,132 13.6% Noncontrolling Interest 7 8 (7.5%) 15 (55.0%) Equity 2,429 2,397 1.3% 2,147 13.1% Liabilities and Equities 19,687$ 19,674$ 0.1% 17,238$ 14.2%
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21 Commercial Real Estate Owner and Non-Owner Occupied CRE / Total Risk Based Capital Office Buildings 20% Hotels 14% Shopping Centers 11% Warehouse Light Industrial 12% Auto Dealer and Repair 4% Self Storage 4% Restaurants 3% Retail Buildings 2% Churches 1% Other Commercial 16% Multifamily 13% Q4-FY25 $6.6B 248% 249% 268% 280% 277% Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 Dollars in millions Owner Non-owner Total Office Buildings 523$ 800$ 1,323$ Hotels - 883 883 Shopping Centers - 730 730 Warehouse Light Industrial 368 442 810 Auto Dealer and Repair 209 27 236 Self Storage - 247 247 Restaurants 122 50 172 Retail Buildings 76 81 157 Churches 90 3 93 Other Commercial 544 514 1,058 Total 1,932$ 3,777$ 5,709$ Dollars in millions Q4-FY25 % Total Q/Q % Y/Y % CRE-Owner Occupied 1,932$ 29% 1.1% 18.6% CRE-Non Owner Occupied 3,777 58% -0.8% 18.2% Multifamily 858 13% -6.7% 7.1% Commercial Real Estate 6,568$ 100% -1.1% 16.7%
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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 $7.8 $7.9 $14.4 0.05% 0.05% 0.07% FY2023 FY2024 FY2025 Nonperforming Assets NPA / Assets $2.9 $1.6 $2.8 0.03% 0.01% 0.02% FY2023 FY2024 FY2025 Net Charge-offs NCOs / Avg Loans $126.5 $123.9 $147.3 1.12% 1.08% 1.10% FY2023 FY2024 FY2025 ACL ACL / Loans $142.3 $154.5 $172.1 1.26% 1.35% 1.29% FY2023 FY2024 FY2025 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 1.11% 1.10% ACL / Loans $149.18 $147.34 $(1.95)$0.12 Allowance 9/30/2025 Provision Exp Q4-FY25 Net Charge-offs Q4-FY25 Allowance 12/31/2025 (1) On balance sheet amounts
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24 Liquidity Cash and Securities Liquidity Buffer1 Liquidity Sources [Dollars in millions] Uninsured Deposits [Dollars in millions] (1) Primary liquidity / total assets; primary liquidity is sum of cash & cash equivalents (excl. deferred comp and escrow at other banks) plus unencumbered investment securities Q4-FY25 Available Liquid Funds: Cash and cash equivalents 1,351$ Unencumbered investment securities 1,861 Availability of Borrowings: Amount available from FHLB with loan collateral 1,625 Amount available from unsecured lines of credit with correspondent banks 150 Amount available from Federal Reserve discount window 2,033 Total Liquidity Sources 7,020$ Q4-FY25 TowneBank Estimated Uninsured Deposits 7,880$ Less Collateralized Deposits 827 Adjusted Uninsured Deposits 7,053 TowneBank Total Deposits 16,509 Adjusted Uninsured Deposits / Total Deposits 43% Total Liquidity Sources / Adjusted Uninsured Deposits 100% 6.1% 7.2% 6.2% 15.7% 15.0% 14.7% FY2023 FY2024 FY2025 Cash / Assets Securities / Assets 16.0% 17.5% 15.8% FY2023 FY2024 FY2025
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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 12.18% 12.77% 11.34% FY2023 FY2024 FY2025 Well Capitalized2 12.29% 12.89% 11.39% FY2023 FY2024 FY2025 Well Capitalized2 15.06% 15.68% 14.14% FY2023 FY2024 FY2025 Well Capitalized2 10.17% 10.36% 9.36% FY2023 FY2024 FY2025 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 12/31/2025; Source: S&P Global, data collected 1/19/2026. 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 $21.44 +$2.22 ($1.06) +$0.89 ($1.52) ($0.04) $21.93 FY2024 Net Income Dividends AOCI Acquisition Related Impact Other FY2025 $27.14 $28.33 $30.67 $20.18 $21.44 $21.93 FY2023 FY2024 FY2025 Book Value Tangible Book Value 2 112% 102% Towne Peers $0.98 $1.00 $1.06 FY2023 FY2024 FY2025
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27 Book Value and Tangible Book Value $27.14 $28.33 $30.67 $20.18 $21.44 $21.93 $4.88 $4.80 $6.85 $1.53 $1.46 $1.33 $0.11 $0.11 $0.10 $0.44 $0.52 $0.46 $(1.59) $(1.54) $(0.65) FY2023 FY2024 FY2025 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 $765-775 million for FY2026(1)(2)(3) • Noninterest income of $300-310 million for FY2026(1) • Noninterest expense of $645-655 million for FY2026(1)(4) • Strong capital and liquidity levels to support continued growth • Diversified business model with proven ability to capitalize during disruptive economic environments • Valuable deposit franchise • Opportunistic M&A across all lines of business (1) Includes the expected impact of recently closed acquisition of Dogwood State Bank (2) Base forecast assumes consistent rate environment in FY2026 (3)Tax equivalent (4) Excludes one-time M&A expenses
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29 Non-GAAP Reconciliations
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30 Non-GAAP Reconciliations Core Net Income and Related Metrics (1) Gains related to the sale of Beneflex in FY2023 & FY2024 and BHHS Towne Realty (79% ownership stake) in FY2023 Amounts in millions except per share data Q4-FY25 Q3-FY25 Q4-FY24 FY2025 FY2024 FY2023 Net Income Attributable to TowneBank 40.63$ 44.30$ 39.97$ 169.53$ 161.36$ 153.21$ Adjustments Plus: Acquisition Related Expenses 18.26 17.81 0.27 55.23 1.34 9.59 Plus: Initial Provision for Credit Losses - 12.00 - 18.23 - 4.01 Plus: FDIC Special Assessment - - - - 0.71 5.17 Less: Gain (Loss) on Equity Investment 1 - - 0.22 - 0.15 7.52 Plus: Income Tax & Other Adjustments (3.60) (5.34) 0.10 (11.44) (0.02) (4.02) Core Net Income 55.29$ 68.77$ 40.12$ 231.55$ 163.24$ 160.43$ Return on Avg Assets 0.82% 0.94% 0.92% 0.92% 0.95% 0.92% Core Return on Avg Assets 1.11% 1.46% 0.92% 1.26% 0.96% 0.96% Earnings Per Share-Diluted 0.51$ 0.58$ 0.53$ 2.21$ 2.15$ 2.05$ Core Earnings Per Share-Diluted 0.70$ 0.90$ 0.53$ 3.02$ 2.17$ 2.15$ Return on Avg Tangible Common Equity 10.36% 11.45% 10.46% 11.06% 11.11% 11.49% Core Return on Avg Tangible Common Equity 13.74% 17.31% 10.50% 14.82% 11.23% 11.99% Total Revenue 219.94$ 222.58$ 175.55$ 835.72$ 693.29$ 693.41$ Less: Gain (Loss) on Securities Investments 0.01 (0.01) - 0.01 0.07 - Less: Gain (Loss) on Equity Investments 0.13 - 0.22 2.13 0.24 9.38 Total Revenue Adjusted 219.80 222.59 175.33 833.59 692.97 684.04 Noninterest Expense 166.62$ 153.74$ 127.44$ 601.56$ 503.92$ 489.22$ Less: Intangible Amortization 5.35 4.43 3.09 16.78 12.77 14.15 Noninterest Expense Adjusted 161.28 149.31 124.35 584.79 491.15 475.07 Efficiency Ratio 73.37% 67.08% 70.92% 70.15% 70.88% 69.45% Less: Acquisition Related Expenses 18.26 17.81 0.27 55.23 1.34 9.59 Core Efficiency Ratio 65.07% 59.08% 70.77% 63.53% 70.68% 68.05% 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 Amounts in millions FY2025 FY2024 FY2023 Total Revenue 621.09$ 490.95$ 499.53$ Less: Gain (Loss) on Securities Investments 0.01 0.07 - Less: Gain (Loss) on Equity Investments 2.00 - - Total Revenue Adjusted 619.08 490.88 499.53 Noninterest Expense 438.12$ 343.17$ 326.17$ Less: Intangible Amortization 8.72 4.38 5.15 Noninterest Expense Adjusted 429.39 338.79 321.02 Efficiency Ratio 69.36% 69.02% 64.26% Less: Acquisition Related Expenses 53.45 0.87 9.08 Core Efficiency Ratio 60.73% 68.84% 62.45% Year Amounts in millions FY2025 FY2024 FY2023 Total Revenue 55.70$ 53.37$ 56.25$ Less: Gain (Loss) on Securities Investments - - - Less: Gain (Loss) on Equity Investments - - 8.83 Total Revenue Adjusted 55.70 53.37 47.42 Noninterest Expense 52.75$ 48.16$ 59.06$ Less: Intangible Amortization - 0.29 0.58 Noninterest Expense Adjusted 52.75 47.87 58.49 Efficiency Ratio 94.71% 89.70% 123.34% Less: Acquisition Related Expenses 1.78 - 0.29 Core Efficiency Ratio 91.52% 89.70% 122.74% Year Amounts in millions FY2025 FY2024 FY2023 Total Revenue 103.23$ 100.42$ 90.92$ Less: Gain (Loss) on Securities Investments - - - Less: Gain (Loss) on Equity Investments 0.13 0.24 0.54 Total Revenue Adjusted 103.10 100.18 90.38 Noninterest Expense 70.56$ 68.17$ 62.93$ Less: Intangible Amortization 5.51 5.66 6.10 Noninterest Expense Adjusted 65.06 62.51 56.83 Efficiency Ratio 63.10% 62.39% 62.88% Less: Acquisition Related Expenses - 0.00 0.09 Core Efficiency Ratio 63.10% 62.39% 62.78% Year Amounts in millions FY2025 FY2024 FY2023 Total Revenue 57.77$ 50.13$ 46.71$ Less: Gain (Loss) on Securities Investments - - - Less: Gain (Loss) on Equity Investments - - - Total Revenue Adjusted 57.77 50.13 46.71 Noninterest Expense 42.20$ 46.01$ 41.06$ Less: Intangible Amortization 2.55 2.44 2.33 Noninterest Expense Adjusted 39.65 43.57 38.73 Efficiency Ratio 68.63% 86.90% 82.92% Less: Acquisition Related Expenses - 0.47 0.14 Core Efficiency Ratio 68.63% 85.98% 82.62% Year
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32 Non-GAAP Reconciliations Tax Equivalent (TE) Adjustments Tangible Book Value per Share Amounts in millions Q4-FY25 Q3-FY25 Q2-FY25 Q1-FY25 Q4-FY24 Loans TE Adjustment 0.73$ 0.75$ 0.75$ 0.75$ 0.78$ Securities TE Adjustment 0.41 0.33 0.31 0.32 0.32 Tax-Equivalent Adjustment 1.15 1.08 1.06 1.07 1.10 Yield & Margin Impacts: Loan Yield 5.64% 5.63% 5.53% 5.36% 5.38% Loan Yield (TE) 5.66% 5.65% 5.56% 5.38% 5.41% Securities Investment Yield 3.63% 3.54% 3.59% 3.44% 3.42% Securities Investment Yield (TE) 3.69% 3.58% 3.63% 3.49% 3.47% Earning Asset Yield 5.16% 5.17% 5.11% 4.95% 4.96% Earning Asset Yield (TE) 5.19% 5.19% 5.14% 4.97% 4.99% Net Interest Margin (GAAP) 3.56% 3.48% 3.38% 3.14% 2.99% Net Interest Margin (TE) 3.58% 3.50% 3.40% 3.17% 3.02% Amounts in millions except per share data Q4-FY25 Q3-FY25 Q2-FY25 Q1-FY25 Q4-FY24 Shareholders' Equity (Common) 2,422.07$ 2,389.45$ 2,217.95$ 2,186.08$ 2,131.63$ Goodwill and Intangible Assets 690.61 693.57 573.89 514.76 517.79 Tangible Common Equity 1,731.46$ 1,695.88$ 1,644.05$ 1,671.31$ 1,613.84$ Common Shares Outstanding 78.96 78.93 75.42 75.39 75.26 Tangible Book Value per Share 21.93$ 21.49$ 21.80$ 22.17$ 21.44$
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