First Priority Bank

Malvern, PA · Cert 58092

FDIC · 8 branches

Q2 2018

$627.4MAssets

$525.4MLoans

$513.6MDeposits

$51.3MEquity

Loan mix

Deposit mix

NIM

Market Position · Philadelphia-Camden-Wilmington, PA-NJ-DE-MD · 2018 SOD (annual) · 0.1% share · #47 of 117 inst. · $0.3B of $486.3B

1.3% Berks

1.4% Chester

0.3% Bucks

0.2% Montgomery

Earnings: ROA of 0.52%, down 1 bps year over year; NIM at 3.17%.
Asset quality: problem loans at 0.06% of loans (-6 bps YoY), with net charge-offs at 0.02%.

Return on Assets (YTD, annualized)

0.52%-1 bps YoY

Net Interest Margin (YTD, annualized)

3.17%-1 bps YoY

Efficiency Ratio (YTD, annualized)

78.80%+440 bps YoY

Tier 1 Leverage Ratio

8.14%+10 bps YoY

Year to date, annualized, through each quarter.

Metric	Q2 2017	Q3 2017	Q4 2017	Q1 2018	Q2 2018	YoY Δ	Trend
Earnings
Return on Assets	0.53%	0.52%	0.44%	0.51%	0.52%	-1 bps
Return on Equity	6.64%	6.44%	5.45%	6.24%	6.37%	-27 bps
Net Interest Margin	3.18%	3.14%	3.11%	3.16%	3.17%	-1 bps
Efficiency Ratio	74.40%	75.46%	75.66%	79.05%	78.80%	+440 bps
Non-Interest Burden	2.34%	2.34%	2.33%	2.46%	2.46%	+13 bps
Growth
Asset Growth (YoY)	19.84%	6.99%	2.05%	2.02%	3.36%	-1,648 bps
Loan Growth (YoY)	18.33%	2.17%	6.28%	6.25%	6.21%	-1,213 bps
Deposit Growth (YoY)	12.74%	13.02%	11.78%	9.46%	10.77%	-197 bps
Asset Quality
Nonperforming Loans / Loans	0.12%	0.16%	0.17%	0.12%	0.06%	-6 bps
Net Charge-Offs / Loans	0.07%	0.05%	0.06%	0.02%	0.02%	-6 bps
Allowance / Loans	0.66%	0.67%	0.66%	0.66%	0.65%	-2 bps
Allowance Coverage of NPLs	5.5x	4.3x	3.8x	5.7x	11.4x	+5.9x
Capital
Tier 1 Leverage Ratio	8.04%	8.10%	8.08%	8.09%	8.14%	+10 bps
Total Risk-Based Capital	12.31%	12.47%	12.15%	12.49%	12.30%	-1 bps
Equity / Assets	8.12%	8.17%	8.22%	8.22%	8.17%	+5 bps
Liquidity & Funding
Loans / Deposits	106.70%	99.41%	99.17%	101.07%	102.31%	-439 bps
Liquid Assets / Assets	7.49%	6.99%	3.50%	7.09%	8.10%	+61 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a