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Business Bank of Skagit County

Burlington, WA · Cert 57978

FDIC · 10 branches

Q2 2025

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets3

Basis

Quarter: Q2 2025, the quarter ended June 30, 2025, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets (n=528 to 576). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

15

Q2 2024Q2 2025peer median (50)

Asset Quality

23

Q2 2024Q2 2025peer median (50)

Profitability

36

Q2 2024Q2 2025peer median (50)

Liquidity

0

Q2 2024Q2 2025peer median

Efficiency

30

Q2 2024Q2 2025peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Business Bank of Skagit County

Burlington, WA · Cert 57978

FDIC · 10 branches

Q2 2025

$639.5MAssets
$527.3MLoans
$518.3MDeposits
$53.7MEquity
Loan mix
72%RE $291.1M17%C&I $68.2M11%Consumer $45.1MQ2 2024Q2 2025
Deposit mix
75%Interest-bearing $389.5M25%Noninterest $128.8MQ2 2024Q2 2025

NIM

4.75%Q2 ’235.26%Q2 ’245.54%Q2 ’25-13%+8%

Non-interest income vs. expense

3.70%Q2 ’233.28%Q2 ’243.48%Q2 ’25-10%-8%

Market Position · Mount Vernon-Anacortes, WA · 2025 SOD (annual) · 9.0% share · #5 of 13 inst. · $0.3B of $3.5B

9.0% Skagit
8.3% Island
1.1% Whatcom
4.9% San Juan

Executive Summary

  • Earnings: ROA of 0.46%, up 20 bps year over year; NIM at 3.44%.
  • Asset quality: problem loans at 0.96% of loans (+72 bps YoY), with net charge-offs at 0.12%.
  • Capital: tier 1 leverage ratio of 8.72%, up 45 bps from a year ago.
  • Funding: loans stand at 101.73% of deposits as of Q2 2025.

Financial Results

Return on Assets (YTD, annualized)

0.46%+20 bps YoY

Net Interest Margin (YTD, annualized)

3.44%+26 bps YoY

Efficiency Ratio (YTD, annualized)

78.17%-888 bps YoY

Tier 1 Leverage Ratio

8.72%+45 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2024Q3 2024Q4 2024Q1 2025Q2 2025YoY ΔTrend
Earnings
Return on Assets0.26%0.36%0.41%0.24%0.46%+20 bps
Return on Equity3.30%4.43%5.16%2.97%5.67%+237 bps
Net Interest Margin3.18%3.17%3.17%3.27%3.44%+26 bps
Efficiency Ratio87.05%84.99%83.60%85.15%78.17%-888 bps
Non-Interest Burden2.71%2.62%2.57%2.71%2.48%-22 bps
Growth
Asset Growth (YoY)7.81%5.50%6.84%10.78%3.15%-467 bps
Loan Growth (YoY)9.51%4.59%5.89%7.16%2.96%-654 bps
Deposit Growth (YoY)4.27%5.50%7.23%4.88%4.10%-17 bps
Asset Quality
Nonperforming Loans / Loans0.24%0.26%0.27%0.27%0.96%+72 bps
Net Charge-Offs / Loans0.08%0.11%0.11%0.09%0.12%+4 bps
Allowance / Loans1.19%1.18%1.19%1.21%1.16%-2 bps
Allowance Coverage of NPLs4.9x4.6x4.5x4.5x1.2x-3.7x
Capital
Tier 1 Leverage Ratio8.27%8.19%8.27%8.34%8.72%+45 bps
Total Risk-Based Capital10.56%10.78%10.86%10.52%11.06%+51 bps
Equity / Assets8.03%8.28%8.17%7.88%8.40%+37 bps
Liquidity & Funding
Loans / Deposits102.85%98.42%97.90%102.09%101.73%-112 bps
Liquid Assets / Assets5.89%6.42%7.38%9.74%7.44%+155 bps
CRE / Total Capitaln/an/an/an/an/an/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Business Bank of Skagit County

Burlington, WA · Cert 57978 · Peer group: banks under $1B in assets (n=528-576)

FDIC · 10 branches

Q2 2025

$639.5MAssets
$527.3MLoans
$518.3MDeposits
$53.7MEquity

Executive Summary

  • Strongest standing: net interest margin outperforms 54% of banks under $1B in assets (rank 266 of 575).
  • Widest gap: tier 1 capital ratio trails 93% of banks under $1B in assets (rank 532 of 575).
  • Overall: at or above the peer median on 1 of 9 directional measures.

Return on Assets

0.47%

Rank 439 of 576

Net Interest Margin

3.44%

Rank 266 of 575

Efficiency Ratio

78.62%

Rank 404 of 575

Equity / Assets

8.40%

Rank 446 of 575

Non-interest income vs. expense

$6.2M$21.7MINCOMEEXPENSE
Unfavorable gap of $15.5M · efficiency ratio beats 30% of banks under $1B in assets
Bank 78.62%Peer median 70.1%Q4 2024Q2 2025Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets0.47%0.51%0.91%1.43%Beats 24%439 / 576
Return on Equity5.56%4.85%8.92%13.13%Beats 29%410 / 575
Net Interest Margin3.44%2.85%3.33%3.90%Beats 54%266 / 575
Efficiency Ratio78.62%58.61%70.08%82.08%Beats 30%404 / 575
Asset Quality
Nonperforming Loans / Loans0.96%0.06%0.34%0.93%Beats 25%398 / 528
Net Charge-Offs / Loans0.08%n/a0.01%0.06%Beats 20%426 / 528
Capital
Tier 1 Capital Ratio9.92%11.22%13.91%18.96%Beats 7%532 / 575
Total Risk-Based Capital Ratio11.06%11.76%14.45%19.92%Beats 17%478 / 575
Equity / Assets8.40%8.53%10.12%12.97%Beats 22%446 / 575
Liquidity & Funding
Loans / Deposits101.73%64.54%78.36%91.99%91st pctl48 / 538
Loans / Assets82.45%55.85%68.40%77.98%88th pctl66 / 528
Brokered Deposits / Depositsn/aNot reported for this institution