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1 Earnings Presentation 3rd Quarter 2026
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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, 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; 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, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and relat ed 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 de terioration 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 accou nting 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 recently completed and pending acquisitions, including our recent merger with Dogwood State Bank and our pending merger with blueharbor bank, to the extent that that process may take longer or be more difficult, time- consuming, or costly to accomplish than expected; our ability to close the transaction with blueharbor bank 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 loss es, and business disruption associated with recently completed or pending acquisitions, including reputational risk and adverse effects on relationships with employees, customers or other business pa rtners, 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 or pending acquisitions that may not be fully realized or realized within the expected time frame; the diversion of management's attention and time from o ngoing 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, wh ether 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; 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, 2025 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal De posit 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 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 (1) Source: FDIC Summary of Deposits for the VA Beach-Norfolk-Newport News, VA MSA, data as of June 30, 2026 (2) © 2025, Forbes Media LLC. Used with permission (3) Benchmark question: On a scale from 0-10, how likely are you to recommend TowneBank to a friend or colleague?; Net Promoter = % Promoters minus % Detractors (83.10% - 7.54% = 75.56%) Note: Financial results for the quarter ending September 30, 2026 TowneBank at a Glance 1.49% Core ROAA 16.63% Core ROTCE 3.92% NIM (FTE) 32% NIB Deposits / Total Deposits $22.2B Total Assets $15.1B Total Loans $18.5B Total Deposits 76% Net Promoter Score3 Consistent Focus on Earnings and Growth 22% Earnings Growth Deposit Market Share in Hampton Roads1 Best Banks List2 8 Years in a Row Ranked on Branch Locations #1 CAGR FY00 – FY25
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4 3rd Quarter 2026 Financial Results
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5 Performance Highlights (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. This revision did not have a material impact on annual earnings 3 3 Q3-FY26 Q2-FY26 Q/Q Change Q3-FY25 Y/Y Change Total Revenue $257.89 million $444.27 million (42%) $222.58 million 16% Provision for Credit Losses -$1.18 million $0.62 million (288%) $15.28 million (108%) Net Income Attributable to TowneBank $81.78 million $193.19 million (58%) $44.30 million 85% Earnings Per Share-Diluted $0.88 $2.09 (58%) $0.58 52% Return on Avg Assets 1.46% 3.45% -199 bps 0.94% +52 bps Return on Avg Tangible Common Equity 1 16.24% 37.76% -2,152 bps 11.45% +479 bps Net Interest Margin (TE)1 3.92% 3.70% +22 bps 3.50% +42 bps Assets $22.18 billion $22.62 billion (2%) $19.67 billion 13% Loans $15.10 billion $15.17 billion (0%) $13.38 billion 13% Deposits $18.46 billion $18.71 billion (1%) $16.53 billion 12% Loans / Deposits 81.81% 81.06% +75 bps 80.93% +88 bps Noninterest Bearing Deposits / Deposits 32.41% 31.22% +119 bps 31.09% +132 bps Nonperforming Assets / Assets 0.21% 0.21% 0 bps 0.05% +16 bps Book Value per Share $32.13 $32.40 (1%) $30.27 6% Tangible Book Value per Share 1 $22.30 $22.60 (1%) $21.49 4% Tangible Common Equity to Tangible Assets 9.69% 9.62% +7 bps 8.93% +76 bps Total Risk Based Capital Ratio 14.81% 14.58% +23 bps 13.98% +83 bps2
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6 Income Statement Summary (1) Non-GAAP financial measure – see non-GAAP reconciliations (2) Prior periods adjusted to reflect adoption of new revenue recognition standard for Towne Vacations property management income 2 2 Dollars in millions, except per share data Q3-FY26 Q2-FY26 Q/Q Change Q3-FY25 Y/Y Change Q3-FY26 Q3-FY25 Y/Y Change Interest Income 269.59$ 260.64$ 3% 218.34$ 23% 780.63$ 615.59$ 27% Interest Expense 73.38 75.53 (3%) 71.39 3% 226.36 210.95 7% Net Interest Income 196.21 185.12 6% 146.95 34% 554.27 404.64 37% Provision for Credit Losses (1.18) 0.62 (288%) 15.28 (108%) (0.21) 24.11 (101%) Net Interest Income after Provision for Credit Losses 197.39 184.49 7% 131.68 50% 554.48 380.54 46% Noninterest Income 61.68 259.15 (76%) 75.63 (18%) 394.34 211.13 87% Noninterest Expense 159.47 189.94 (16%) 153.74 4% 545.30 434.94 25% Minority Interest in Unconsolidated Subs 0.21 0.43 (50%) 0.32 (32%) 0.75 1.04 (28%) Income Before Taxes 99.38 253.27 (61%) 53.25 87% 402.76 155.68 159% Provision for Income Tax Expense 17.61 60.08 (71%) 8.96 97% 86.80 26.79 224% Net Income Attributable to TowneBank 81.78$ 193.19$ (58%) 44.30$ 85% 315.96$ 128.89$ 145% Earnings Per Share-Diluted 0.88$ 2.09$ (58%) 0.58$ 52% 3.44$ 1.70$ 102% Core Net Income1 One-time Adjustments After Taxes 2.07$ (121.17)$ 24.47$ (93.37)$ 47.37$ Core Net Income 83.85 72.01 16.4% 68.77 21.9% 222.59 176.26 26.3% Core Earnings Per Share-Diluted 0.91$ 0.78$ 16.7% 0.90$ 1.1% 2.42$ 2.32$ 4.3% QTD YTD 22
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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 $176.3 $222.6 FY2023 FY2024 FY2025 YTD Q3-FY25 YTD Q3-FY26 $2.15 $2.17 $3.02 $2.32 $2.42 FY2023 FY2024 FY2025 YTD Q3-FY25 YTD Q3-FY26 0.96% 0.96% 1.26% 1.31% 1.34% FY2023 FY2024 FY2025 YTD Q3-FY25 YTD Q3-FY26 11.99% 11.23% 14.82% 15.20% 15.42% FY2023 FY2024 FY2025 YTD Q3-FY25 YTD Q3-FY26
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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] $16,768 $17,730 $19,612 $20,189 $20,012 5.19% 5.19% 5.20% 5.20% 5.37% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 $148.0 $160.1 $174.1 $186.4 $197.5 3.50% 3.58% 3.60% 3.70% 3.92% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 $11,067 $11,753 $13,157 $13,262 $13,006 2.56% 2.42% 2.39% 2.28% 2.24% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 2.55% 2.40% 2.33% 2.24% 2.21% -2.3% -5.9% -2.9% -3.9% -1.3% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 Cost of IB Deposits Quarterly IB Cost - % Change
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9 NIM & Net Interest Income Sensitivity Net Interest Income & NIM (TE)1 (1) Non-GAAP financial measure - see non-GAAP reconciliations (2) The interest sensitivity chart is a one-year result on net interest income of an instantaneous and permanent rate shock. The results include assumptions about deposit rate changes that may or may not occur. Net Interest Income Sensitivity2 Comments • Forecast includes ordinary beta response to September rate hike and does not include additional rate increases • Impacts from changes in accretion income expected to offset further loan repricing and asset sensitivity • Risks associated with falling rates will fluctuate with the level of deposit competition and opportunity to reset loan floors higher -8.36% -6.74% -3.58% 2.55% 4.96% 7.27% -300 bp -200 bp -100 bp Base +100 bp +200 bp +300 bp IRR - Current Qtr IRR - Prior Qtr Dollars in millions Amount NIM (%) Q2-FY26 186.4$ 3.70% Loans HFI 2.5 0.04% Recurring Accretion 4.3 0.09% Loans HFS 0.7 0.00% Investments & Cash 1.6 0.04% Earning Assets Mix 0.01% Deposits 1.2 0.02% Borrowings 0.5 0.00% Sub Debt 0.4 Interest Bearing Funding Mix Other (0.0) 0.02% Q3-FY26 197.5$ 3.92%
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10 Deposits Portfolio HighlightsDeposit Balances and Cost [Dollars in millions] • Nine consecutive quarterly decreases in deposit costs since Q2-24 (cumulative decrease of 111 bps in IB deposit costs) • Lower deposit costs along with reductions in other funding sources resulting in decreased interest-bearing liabilities costs, down 4 bps vs prior quarter and 32 bps vs prior year • NIB deposits in legacy Hampton Roads region equal to 36% of total regional deposits (1) Excludes the impact of Dogwood balances in 2026 (2) Source: S&P Global, data as of 8/17/2026. Peers as disclosed in the most recent TOWN proxy statement 1.61% 2.24% 1.77% 1.51% 31% 29% 31% 32% 69% 71% 69% 68% $13,893 $14,437 $16,509 $18,459 FY2023 FY2024 FY2025 Q3-FY26 Noninterest Bearing Deposits Interest Bearing Deposits Deposits (Avg) Q3-FY26 % Total Cost Q/Q % Y/Y % (Dollars in millions) Interest Bearing Demand 2,265 12% 0.51% -3% 25% Money Market 7,005 38% 2.39% 1% 17% Savings 435 2% 0.55% -2% 31% Time Deposits 2,916 16% 3.34% -5% 11% Interest Bearing Deposits 12,622 68% 2.21% -1% 17% Noninterest Bearing Deposits 5,863 32% na 3% 20% Total Deposits 18,485$ 100% 1.51% 0% 18% 31% 29% 31% 31% 25% 24% 23% 24% FY2023 FY2024 FY2025 Q2-FY26 NIB Deposits % of Total Deposits TowneBank vs Peers 2 TowneBank Proxy Peer Group (Avg)
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11 Loans Portfolio HighlightsLoans Balances & Yield (TE)1 [Dollars in millions] • Variable portfolio of $5.9 billion at the end of Q3-26 with 80% of portfolio tied to prime rate or SOFR • Fixed rate scheduled maturities and amortization of ~$1.6 billion over the next twelve months • Quarterly loan growth of $78 million (8% annualized) in Carolina markets (1) Non-GAAP financial measure – see non-GAAP reconciliations 5.06% 5.42% 5.57% 5.85% $11,329 $11,459 $13,336 $15,100 FY2023 FY2024 FY2025 Q3-FY26 Loans Q3-FY26 % Total Q/Q % Y/Y % (Dollars in millions) Construction and Development 1,424$ 9% 8% 15% Commercial Real Estate 7,613 50% -1% 15% Residential 1-4 Family 2,992 20% -1% 9% Commercial and Industrial 1,705 11% -1% 17% Government 499 3% -5% -1% Indirect 657 4% -5% -6% Consumer & Other 210 3% -6% 109% Total Loans 15,100$ 100% 0% 13% 81.5% 79.4% 80.8% 81.8% 67.3% 66.5% 67.7% 68.1% FY2023 FY2024 FY2025 Q3-FY26 Loans % of Deposits and Assets Loans / Deposits Loans / Assets $7.7 $11.7 $32.8 $32.4 $39.1 0.06% 0.09% 0.21% 0.21% 0.26% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 Nonperforming Loans Nonperforming Loans Nonperforming Loans / Loans
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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 • Portfolio roll-off yield of 2.80% over the next twelve months • Portfolio duration of 3.67 years at the end of Q3-26 • Portfolio: 96%/4% - AFS/HTM and 86%/14% - Fixed/Floating • AOCI losses increased $82.3 million from the prior quarter driven by market rate dynamics. Investment Balances & Yield (TE)1 [Dollars in millions] 3.04% 3.45% 3.60% 3.97% $2,642 $2,590 $2,895 $3,102 FY2023 FY2024 FY2025 Q3-FY26 AFS HTM FHLB & Other AFS and HTM Securities 2 AFS HTM Total (Dollars in millions) US Treasuries 225$ 95$ 320$ US Agencies 425 18 443 Municipals 588 6 593 Trust Preferred & Oth Corp 174 2 176 MBS Issued by GSE/GNMA 1,718 5 1,723 Securities - Amortized Cost 3,129 126 3,255 Valuation Adjustment (187) - (187) Credit Loss Reserve (1) (0) (1) Total 2,941$ 126$ 3,067$ $598 $414 $394 $278 $311 < 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Expected Cashflows from Investments (As of September 30, 2026) $2,592 $2,557 $2,864 $3,065 -6.39% -6.02% -2.57% -5.79% FY2023 FY2024 FY2025 Q3-FY26 Securities FV and Unrealized Gain (Loss) Cost Unrealized Gain Unrealized Loss
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13 20% 38% 19% 23% Banking Insurance Mortgage Resort Property Mgmt YTD Q3-FY25 $209.1M 33% 41% 20% 6% YTD Q3-FY26 $193.0M Noninterest Income (1) Core noninterest income excluding gain (loss) on equity investments and investment securities (2) Source: S&P Global, data as of 8/17/2026. Peers as disclosed in the most recent TOWN proxy statement 1 1 1.36% 1.47% 1.47% 1.08% 0.69% 0.72% 0.73% 0.73% FY2023 FY2024 FY2025 Q2-FY26 Noninterest Income % Avg Assets TowneBank vs Peers 2 TowneBank Proxy Peer Group (Avg) Dollars in millions Q3-FY26 Q2-FY26 Q/Q Change Q3-FY25 Y/Y Change Q3-FY26 Q3-FY25 Y/Y Change Residential Mortgage Banking Income Net 11.19$ 12.54$ (11%) 13.12$ (15%) 35.46$ 37.05$ (4%) Insurance Commissions Income, Net 25.64 25.29 1% 25.79 (1%) 76.97 77.89 (1%) Property Mgmt Income, Net - - - 20.45 (100%) 12.44 49.21 (75%) Service Charges on Deposit Accounts 4.40 4.75 (7%) 4.06 8% 13.79 11.03 25% Credit Card Merchant Fees, Net 2.10 2.15 (2%) 1.91 10% 6.16 5.40 14% Investment Income Net 4.26 3.79 12% 3.70 15% 11.77 9.93 19% Bank-owned Life Insurance 3.12 2.76 13% 2.16 45% 8.90 6.02 48% Government Lending Income, Net 0.62 1.99 (69%) - - 6.81 - - Other Income 7.67 7.33 5% 4.46 72% 20.67 12.61 64% Gain (Loss) on Equity Investment 2.69 198.55 (99%) - - 201.24 2.00 9962% Gain (Loss) on Investment Securities - - - (0.01) (100%) 0.13 (0.01) (1873%) Noninterest Income 61.68$ 259.15$ (76%) 75.63$ (18%) 394.34$ 211.13$ 87% YTDQTD
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14 $29.5 $26.2 31.31% 28.12% YTD Q3-FY25 YTD Q3-FY26 Towne Insurance Highlights Revenues2 [Dollars in millions] Insurance Revenue Composition2 EBITDA & Margin [Dollars in millions] • Largest bank-owned insurance company in the country 1 • CAGR of 10.5% from 2018 to 2025 • 27 Acquisitions since 2001 • Insurance Segment goodwill and intangible assets account for $1.09 of Consolidated book value per share • P&C markets are experiencing a softening as rate increases moderate (1) Q2-26 Bank-owned insurance commissions and fees for commercial and savings banks; Source: S&P Global, data retrieved 10/15/2026 (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) $94.1 $93.2 YTD Q3-FY25 YTD Q3-FY26 $60.9 $74.1 $75.2 $82.3 $91.6 $108.9 $118.0 $122.3 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 75% 16% 9% Property and Casualty Employee Benefits Contingency YTD Q3-FY26 $93.2M $32.0 $35.5 $35.8 29.27% 30.06% 29.21% FY2023 FY2024 FY2025
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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 totaled $11.9 million in Q3 -26, compared to $13.7 million in Q3-25 reflecting lower gain- on-sale margins and less favorable rate lock and hedge performance relative to the prior year. • Gain on sales & fees as a % of loans originated was 2.95% in Q3-26 compared to 3.32% in Q3-25 • Refinance activity increased in Q4-25, remained elevated through Q1-26, and then leveled off in Q2 -26. 92% 82% 78% 92% 91% 8% 18% 22% 8% 9% $636.4 $623.3 $575.4 $734.7 $639.7 Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 Purchase Refinance $13.7 $12.2 $12.5 $13.4 $11.9 Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 3.32% 3.19% 3.09% 2.97% 2.95% 2.15% 2.12% 2.02% 1.85% 1.92% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 Gross Gain Net Gain
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16 Wealth Management Highlights 1 Assets Under Management 2 [Dollars in millions] Investment Income Net 1 [Dollars in millions] (1) Gross production is total revenue before Raymond James revenue share/expenses and advisor payout (2) Does not include $525 million of assets held in 401k and 529 plans • Experienced team of advisors serves a variety of clients providing professional investment consulting and complete financial planning • Investment fee and commission income net of $4.3 million in Q3-26 compared to $3.4 million in Q3-25 • Assets under management at the end of Q2 -26 totaled $7.2 billion • Gross production1 of $10.4 million in Q3-26, up 26% compared to Q3-25 $3.4 $3.5 $3.7 $3.8 $4.3 Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 $4,057 $4,843 $5,639 $6,516 $7,191 FY2022 FY2023 FY2024 FY2025 Q2-26
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17 Noninterest Expense (1) Non-GAAP financial measure – see non-GAAP reconciliations 70.12% 72.52% 65.54% 63.46% FY2023 FY2024 FY2025 YTD Q3-FY26 Core Efficiency Ratio1 $479.63 $502.57 $546.34 $499.21 2.88% 2.95% 2.97% 2.85% FY2023 FY2024 FY2025 YTD Q3-FY26 Core Noninterest Expense1 Core NIE Core NIE / Avg Assets Dollars in millions Dollars in millions Q3-FY26 Q2-FY26 Q/Q Change Q3-FY25 Y/Y Change Q3-FY26 Q3-FY25 Y/Y Change Employee Compensation 90.64$ 88.73$ 2% 78.96$ 15% 272.55$ 232.40$ 17% Occupancy, Furniture and Equipment 17.28 17.14 1% 15.03 15% 52.32 43.55 20% Software and Data Processing 12.15 10.97 11% 12.15 0% 36.45 33.62 8% Advertising and Marketing 3.64 3.21 13% 3.76 (3%) 12.52 11.46 9% Other Expenses 35.76 69.90 (49%) 43.84 (18%) 171.45 113.91 51% Noninterest Expense 159.47$ 189.94$ (16%) 153.74$ 4% 545.30$ 434.94$ 25% Acquisition Related Expenses 3.19 11.21 (72%) 17.81 nm 46.09 36.97 25% Core Noninterest Expense 156.28$ 178.73$ (13%) 135.92$ 15% 499.21$ 397.97$ 25% QTD YTD
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18 Core Efficiency Ratio1 Banking Insurance Mortgage (1) Non-GAAP financial measure – see non-GAAP reconciliations 72.88% 69.53% 68.04% 68.44% 69.31% FY2022 FY2023 FY2024 FY2025 YTD Q3-FY26 103.81% 123.95% 90.24% 91.52% 95.51% FY2022 FY2023 FY2024 FY2025 YTD Q3-FY26 54.78% 63.48% 69.73% 62.14% 60.32% FY2022 FY2023 FY2024 FY2025 YTD Q3-FY26
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19 Balance Sheet Summary $22.2B Total Assets 82% Loans / Deposits 1.32% ACL / Loans 32% Noninterest Bearing Deposits / Total Deposits Dollars in millions Q3-FY26 Q2-FY26 Q/Q Change Q3-FY25 Y/Y Change Cash and Cash Equivalents 1,513$ 1,815$ (17%) 1,250$ 21% Securities 3,102 3,105 (0%) 2,874 8% Loans Held for Sale 185 310 (40%) 213 (13%) Loans 15,100 15,170 (0%) 13,379 13% Allowance for Credit Losses (199) (200) (0%) (149) 34% Net Loans 14,901 14,970 (0%) 13,230 13% Premises and Equipment Net 437 445 (2%) 422 4% Goodwill 818 809 1% 592 38% Intangible Assets 91 97 (6%) 102 (11%) Bank-owned Life Insurance 390 388 1% 335 17% Assets Held For Sale - - - - - Other Assets 746 679 10% 658 13% Assets 22,183 22,617 (2%) 19,674 13% Noninterest Bearing Deposits 5,982 5,843 2% 5,139 16% Interest Bearing Deposits 12,476 12,871 (3%) 11,391 10% Deposits 18,459 18,713 (1%) 16,531 12% Borrowings 359 450 (20%) 362 (1%) Liabilities Held for Sale - - - - - Other Liabilities 387 452 (14%) 384 1% Liabilities 19,205 19,615 (2%) 17,277 11% Shareholders' Equity 2,971 2,994 (1%) 2,389 24% Noncontrolling Interest 7 7 (2%) 8 (8%) Equity 2,978 3,002 (1%) 2,397 24% Liabilities and Equities 22,183$ 22,617$ (2%) 19,674$ 13%
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20 Commercial Real Estate Owner and Non-Owner Occupied CRE / Total Risk Based Capital Office Buildings 20% Hotels 11% Shopping Centers 10% Warehouse Light Industrial 12% Auto Dealer and Repair 3% Self Storage 3% Restaurants 3% Retail Buildings 2% Churches 1% Other Commercial 23% Government Guaranteed 1% Multifamily 11% Q3-FY26 $7.6B Dollars in millions Owner Non-owner Total Office Buildings 544$ 935$ 1,480$ Hotels - 810 810 Shopping Centers - 790 790 Warehouse Light Industrial 413 478 891 Auto Dealer and Repair 214 29 243 Self Storage - 234 234 Restaurants 138 55 193 Retail Buildings 85 81 165 Churches 105 1 106 Government Guaranteed 109 - 109 Other Commercial 895 831 1,726 Total 2,503$ 4,243$ 6,746$ 280% 277% 278% 260% 257% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 Dollars in millions Q3-FY26 % Total Q/Q % Y/Y % CRE-Owner Occupied 2,503$ 33% 0% 31% CRE-Non Owner Occupied 4,243 56% -2% 11% Multifamily 867 11% 0% -6% Commercial Real Estate 7,613$ 100% -1% 15%
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21 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 $10.4 $14.4 $51.1 $48.3 $47.1 0.05% 0.07% 0.23% 0.21% 0.21% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 Nonperforming Assets NPA / Assets $0.3 $1.9 $1.7 $5.8 $2.5 0.01% 0.06% 0.05% 0.15% 0.06% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 Community Bank Indirect Govnt Guaranteed NCOs / Avg Loans $149.2 $147.3 $199.3 $199.9 $199.4 1.11% 1.10% 1.31% 1.32% 1.32% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 ACL ACL / Loans $172.8 $172.1 $231.3 $262.7 $270.7 1.29% 1.29% 1.52% 1.73% 1.79% Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 Community Bank Indirect Govnt Guaranteed Criticized Loans / Loans
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22 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 1.32% 1.32% ACL / Loans (1) On balance sheet amounts $199.92 $199.92 $199.38 $(1.20) $(2.45)$3.11 Allowance 6/30/2026 Initial Allowance Adjustments Provision Exp Q3-FY26 Net Charge-offs Q3-FY26 Allowance 9/30/2026
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23 Liquidity Cash and Securities Liquidity Buffer1 Liquidity Sources [Dollars in millions] Uninsured Deposits [Dollars in millions] (1) Primary liquidity / total assets; primary liquidity is sum of cash & cash equivalents (excl. deferred comp and escrow at other banks) plus unencumbered investment securities 6.1% 7.2% 6.2% 6.3% 15.7% 15.0% 14.7% 14.0% FY2023 FY2024 FY2025 Q3-FY26 Cash / Assets Securities / Assets 16.0% 17.5% 15.8% 15.6% FY2023 FY2024 FY2025 Q3-FY26 Q3-FY26 Available Liquid Funds: Cash and cash equivalents 1,513$ Unencumbered investment securities 2,043 Availability of Borrowings: Amount available from FHLB with loan collateral 1,455 Amount available from unsecured lines of credit with correspondent banks 150 Amount available from Federal Reserve discount window 2,062 Total Liquidity Sources 7,224$ Q3-FY26 TowneBank Estimated Uninsured Deposits 8,798$ Less Collateralized Deposits 744 Adjusted Estimated Uninsured Deposits 8,054 TowneBank Total Deposits 18,459 Adjusted Estimated Uninsured Deposits / Total Deposits 44% Total Liquidity Sources / Adjusted Estimated Uninsured Deposits 90%
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24 Capital Common Equity Tier 11 Tier 1 Risk-Based1 Total Risk-Based1 Tier 1 Leverage1 (1) Q2-26 capital ratios are preliminary (2) FDIC “Well Capitalized” under prompt corrective action rules 12.18% 12.77% 11.34% 12.47% FY2023 FY2024 FY2025 Q3-FY26 Well Capitalized2 12.29% 12.89% 11.39% 12.51% FY2023 FY2024 FY2025 Q3-FY26 Well Capitalized2 15.06% 15.68% 14.14% 14.81% FY2023 FY2024 FY2025 Q3-FY26 Well Capitalized2 10.17% 10.36% 9.36% 10.36% FY2023 FY2024 FY2025 Q3-FY26 Well Capitalized2
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25 $21.93 +$3.45 ($1.53) ($1.16) ($0.68) +$0.29 $22.30 FY2025 Net Income Dividends AOCI Acquisition Related Impact Other Q3-FY26 Shareholder Value Book Value per Share Dividends Tangible Book Value per Share Tangible Book Value Roll Forward (1) Acquisition related impact to balance sheet – share issuance, changes to goodwill, intangibles and paid in capital 1 $0.79 $1.53 Q3-FY25 Q3-FY26 YTD $0.78 $0.89 $0.98 $1.00 $1.06 FY2021 FY2022 FY2023 FY2024 FY2025 $18.06 $21.05 $22.58 $24.31 $26.13 $25.73 $27.14 $28.33 $30.67 $32.13 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Q3-FY 26 $13.13 $14.26 $15.69 $17.46 $19.15 $18.84 $20.18 $21.44 $21.93 $22.30 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Q3-FY26
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26 Outlook Summary Loans and Asset Quality Profitability(1) Strategic • Targeting annualized core loan growth in the low single digits • Anticipating credit quality to remain stable in the near term with potential for incremental reserve build aligned with loan growth rates • Net interest income expected to range between $190-200 million for Q4-26 and $745-760 million for FY2026(1)(2)(3) • Noninterest income of $50-55 million for Q4-26 and $240-250 million for FY2026(1)(4) • Noninterest expense of $155-160 million for Q4-26 and $625-635 million for FY2026(1)(4)(5) • 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 impact of Dogwood State Bank (2) Base forecast includes recent rate increase and assumes consistent rate environment for remainder of FY2026 (3)Tax equivalent (4) Includes the impact from the sale of Resort Property Management Segment (noninterest income excludes one-time gain of $198.6 million resulting from the sale) (5) Excludes one-time M&A expenses and special one-time TowneBank Foundation contribution of $25 million
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27 1 TowneBank partners with blueharbor bank
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28 Enhancing Our North Carolina Franchise blueharbor bank Overview blueharbor bank Financial Highlights Dollars in millions Q1-FY26 Q2-FY26 Total Assets $623 $628 Gross Loans HFI $530 $537 Total Deposits $550 $551 Return on Average Assets 2.21% 2.29% Return on Average Tangible Common Equity 20.3% 20.8% Net Interest Margin 4.37% 4.36% Efficiency Ratio 36.8% 33.8% Established in 2008 and headquartered in Mooresville, North Carolina, with 3 retail branches and 2 loan production offices primarily serving the Charlotte and Mount Airy MSAs Experienced management team with strong local relationships and a proven record of disciplined execution Proven conservative credit performance, with zero nonperforming assets for seven consecutive quarters Record performance, including recognition among the top 30 U.S. banks for total financial performance among institutions with less than $3 billion in assets¹ (1) Financial data as of December 31, 2025; Rankings are based on returns, growth, funding and balance-sheet strength and risk profile Top 5 States Net Domestic Migration1 TOWN (81) BLHK² (5) NC & SC +706,963 1. Florida 879,722 2. Texas 747,730 3. North Carolina 393,010 4. South Carolina 311,953 5. Arizona 258,654 | 3 Branches 2 LPOs
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29 53.2% 45.9% 47.6% 52.2% 38.8% 33.8% FY2021 FY2022 FY2023 FY2024 FY2025 Q2-FY26 3.04% 3.59% 3.93% 3.94% 4.30% 4.36% FY2021 FY2022 FY2023 FY2024 FY2025 Q2-FY26 1.28% 1.62% 1.69% 1.44% 2.03% 2.29% FY2021 FY2022 FY2023 FY2024 FY2025 Q2-FY26 Cost of DepositsNPAs/AssetsEfficiency Ratio NIMROATCEROAA blueharbor bank Financial Highlights 12.8% 17.2% 15.5% 13.0% 18.3% 20.8% FY2021 FY2022 FY2023 FY2024 FY2025 Q2-FY26 0.02% 0.02% 0.01% 0.00% 0.00% 0.00% FY2021 FY2022 FY2023 FY2024 FY2025 Q2-FY26 0.26% 0.18% 1.25% 2.01% 1.83% 1.79% FY2021 FY2022 FY2023 FY2024 FY2025 Q2-FY26 Source: S&P Global Market Intelligence
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30 Non-GAAP Reconciliations
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31 Non-GAAP Reconciliations Core Net Income and Related Metrics (1) Gains related to the sale of Towne Vacations in Q2-26 (closing adjustments in Q3-26), TB Construction LLC in Q3-26, Beneflex in FY2023 & FY2024 and BHHS Towne Realty (79% ownership stake) in FY2023 Amounts in millions except per share data Q3-FY25 Q2-FY26 Q3-FY26 FY2023 FY2024 FY2025 Q3-FY25 Q3-FY26 Net Income Attributable to TowneBank 44.30$ 193.19$ 81.78$ 153.21$ 161.36$ 169.53$ 128.89$ 315.96$ Adjustments Plus: Acquisition Related Expenses 17.81 11.21 3.19 9.59 1.34 55.23 36.97 46.09 Plus: Initial Provision for Credit Losses 12.00 - - 4.01 - 18.23 6.24 - Plus: FDIC Special Assessment - - - 5.17 0.71 - - - Plus: TowneBank Foundation 1x Donation - 25.00 - - - - - 25.00 Less: Gain (Loss) on Equity Investment 1 - 198.55 2.69 7.52 0.15 - - 201.24 Plus: Income Tax & Other Adjustments (5.34) 41.17 1.57 (4.02) (0.02) (11.44) 4.16 36.79 Core Net Income 68.77$ 72.01$ 83.85$ 160.43$ 163.24$ 231.55$ 176.26$ 222.59$ Return on Avg Assets 0.94% 3.45% 1.46% 0.92% 0.95% 0.92% 0.96% 1.90% Core Return on Avg Assets 1.46% 1.28% 1.49% 0.96% 0.96% 1.26% 1.31% 1.34% Earnings Per Share-Diluted 0.58$ 2.09$ 0.88$ 2.05$ 2.15$ 2.21$ 1.70$ 3.44$ Core Earnings Per Share-Diluted 0.90$ 0.78$ 0.91$ 2.15$ 2.17$ 3.02$ 2.32$ 2.42$ Return on Avg Tangible Common Equity 11.45% 37.76% 16.24% 11.49% 11.11% 11.06% 11.31% 21.50% Core Return on Avg Tangible Common Equity 17.31% 14.63% 16.63% 11.99% 11.23% 14.82% 15.20% 15.42% Total Revenue 222.58$ 444.27$ 257.89$ 693.41$ 693.29$ 835.72$ 615.77$ 948.61$ Less: Gain (Loss) on Securities Investments (0.01) - - - 0.07 0.01 (0.01) 0.13 Less: Gain (Loss) on Equity Investments - 198.55 2.69 9.38 0.24 2.13 2.00 201.24 Total Revenue Adjusted 222.59 245.72 255.20 684.04 692.97 833.59 613.78 747.24 Noninterest Expense 153.74$ 189.94$ 159.47$ 489.22$ 503.92$ 601.56$ 434.94$ 545.30$ Less: Acquisition Related Expenses 17.81 11.21 3.19 9.59 1.34 55.23 36.97 46.09 Less: Other One-time Expense Items - 25.00 - - - - - 25.00 Noninterest Expense Adjusted 135.92 153.73 156.28 479.63 502.57 546.34 397.97 474.21 Efficiency Ratio 69.07% 77.30% 62.49% 71.52% 72.72% 72.17% 70.86% 72.98% Core Efficiency Ratio 61.06% 62.56% 61.24% 70.12% 72.52% 65.54% 64.84% 63.46% Noninterest Expense / Avg Assets 3.28% 3.39% 2.84% 2.94% 2.95% 3.27% 3.24% 3.28% Core Noninterest Expense / Avg Assets 2.90% 2.74% 2.78% 2.88% 2.95% 2.97% 2.96% 2.85% QTD Year YTD
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32 Core Efficiency Ratio – Banking Core Efficiency Ratio – Insurance Core Efficiency Ratio – Mortgage Non-GAAP Reconciliations YTD Amounts in millions FY2022 FY2023 FY2024 FY2025 Q3-FY26 Total Revenue 495.49$ 499.53$ 490.95$ 621.09$ 817.02$ Less: Gain (Loss) on Securities Investments - - 0.07 0.01 0.13 Less: Gain (Loss) on Equity Investments - - - 2.00 201.24 Total Revenue Adjusted 495.49 499.53 490.88 619.08 615.66 Noninterest Expense 272.39 326.17 343.17 438.12 442.43 Less: Acquisition Related Expenses 0.96 9.08 0.87 53.45 46.09 Less: Other One-time Expense Items - - - - 25.00 Noninterest Expense Adjusted 271.44 317.09 342.29 384.67 371.34 Efficiency Ratio 54.98% 65.30% 69.91% 70.77% 71.86% Core Efficiency Ratio 54.78% 63.48% 69.73% 62.14% 60.32% Year Core Efficiency Ratio – Mortgage YTD Amounts in millions FY2022 FY2023 FY2024 FY2025 Q3-FY26 Total Revenue 74.34$ 90.92$ 100.42$ 103.23$ 78.58$ Less: Gain (Loss) on Securities Investments - - - - - Less: Gain (Loss) on Equity Investments - 0.54 0.24 0.13 - Total Revenue Adjusted 74.34 90.38 100.18 103.10 78.58 Noninterest Expense 54.24 62.93 68.17 70.56 54.46 Less: Acquisition Related Expenses 0.06 0.09 0.00 - - Less: Other One-time Expense Items - - - - - Noninterest Expense Adjusted 54.18 62.84 68.17 70.56 54.46 Efficiency Ratio 72.96% 69.62% 68.04% 68.44% 69.31% Core Efficiency Ratio 72.88% 69.53% 68.04% 68.44% 69.31% Year YTD Amounts in millions FY2022 FY2023 FY2024 FY2025 Q3-FY26 Total Revenue 74.14$ 56.25$ 53.37$ 55.70$ 42.10$ Less: Gain (Loss) on Securities Investments - - - - - Less: Gain (Loss) on Equity Investments - 8.83 - - - Total Revenue Adjusted 74.14 47.42 53.37 55.70 42.10 Noninterest Expense 76.96 59.06 48.16 52.75 40.21 Less: Acquisition Related Expenses - 0.29 - 1.78 - Less: Other One-time Expense Items - - - - - Noninterest Expense Adjusted 76.96 58.78 48.16 50.97 40.21 Efficiency Ratio 103.81% 124.56% 90.24% 94.71% 95.51% Core Efficiency Ratio 103.81% 123.95% 90.24% 91.52% 95.51% Year
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33 Non-GAAP Reconciliations Tax Equivalent (TE) Adjustments Tangible Book Value per Share Amounts in millions Q3-FY25 Q4-FY25 Q1-FY26 Q2-FY26 Q3-FY26 Loans TE Adjustment 0.75$ 0.73$ 0.71$ 0.73$ 0.74$ Securities TE Adjustment 0.33 0.41 0.46 0.54 0.60 Tax-Equivalent Adjustment 1.08 1.15 1.17 1.27 1.33 Yield & Margin Impacts: Loan Yield 5.63% 5.64% 5.65% 5.67% 5.83% Loan Yield (TE) 5.65% 5.66% 5.67% 5.69% 5.85% Securities Investment Yield 3.54% 3.63% 3.59% 3.66% 3.90% Securities Investment Yield (TE) 3.58% 3.69% 3.65% 3.73% 3.97% Earning Asset Yield 5.17% 5.16% 5.18% 5.18% 5.34% Earning Asset Yield (TE) 5.19% 5.19% 5.20% 5.20% 5.37% Net Interest Margin (GAAP) 3.48% 3.56% 3.58% 3.68% 3.89% Net Interest Margin (TE) 3.50% 3.58% 3.60% 3.70% 3.92% Amounts in millions except per share data FY2022 FY2023 FY2024 FY2025 Q3-FY26 Shareholders' Equity (Common) 1,873.96$ 2,032.67$ 2,131.63$ 2,422.07$ 2,970.98$ Goodwill and Intangible Assets 501.64 520.97 517.79 690.61 909.13 Tangible Common Equity 1,372.32$ 1,511.70$ 1,613.84$ 1,731.46$ 2,061.84$ Common Shares Outstanding 72.84 74.89 75.26 78.96 92.46 Tangible Book Value per Share 18.84$ 20.18$ 21.44$ 21.93$ 22.30$
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34 © 2026 Towne Bank or its affiliates. | CONFIDENTIAL Member FDIC