COVID-19 Response, Potential Impact, & Modifications June 11, 2020
COVID-19 Preparedness and Response Business Continuity Customer Support Employee Safety Rapid and successful Company began preparations to Implemented physical distancing, implementation of the Payroll comply with a “stay at home” order safety and hygiene protocols for Protection Program authorized by in early March and commenced colleagues not working remotely. the CARES act – submitted first “stay at home” operations on application on 4/3/20 and March 13, 2020. PPE for all retail and customer- closed/funded first loan on facing employees. 4/14/20. At present, approximately 75% of non-retails employees are working Enhanced sanitation for all Proactively contacted customers via Virtual Private Network (VPN) locations. to listen to and address their short and Microsoft TEAMS technology. term cash flow requirements. Full-compensation for employees, Swiftly provided modifications to Bank retail locations are open and including Emergency Paid Sick loan terms, waived fees and operating by appointment only or Leave Policy enacted. increased limits where appropriate by utilizing branch drive through. to offer ease in conducting 2 transactions electronically.
Loans Outstanding 3/31/2020 – Segments by Sector Gas Stations Industrial/Manufacturing CRE - Overall Restaurant/Fast Food /Warehouse Balance Self-Storage Facility Sector (in thousands) Percentage Industrial/Manufacturing/Warehouse $64,922 17% Office 47,673 13% Hotel/Motel/Inn Other Commercial RE 46,591 12% Retail 35,039 9% Office Mixed Use 31,813 8% Mobile Home/Park 30,189 8% Residential 1-4 Non-OO Residential 1-4 Non-OO 29,924 8% Hotel/Motel/Inn 28,182 8% Self-Storage Facility 25,646 7% Restaurant/Fast Food 17,372 5% Gas Stations 17,129 5% Mobile Home/Park Other Commercial RE $374,480 * Excludes Multi-family – $41.3 Mixed Use Retail Other C&I - Overall Professional services Balance Broadcasting Sector (in thousands) Percentage Real estate services Professional Services $139,477 28% Restaurant/fast food Non-essential Retail 91,141 18% Industrial/Manufacturing 84,816 17% Utilities 30,284 6% Advertising agencies Amusements & Recreation 13,386 3% Advertising Agencies 26,869 5% Amusements & Rec Restaurant/Fast Food 11,382 2% Real Estate Services 9,190 2% Utilities Broadcasting 9,576 2% Retail (13) Other 90,103 18% $506,224 Industrial/manufacturin 3 g
CRE Sectors – Loan to Value – (LTV) Based on Exposure 100% 4% 8% 90% 17% 25% 38% 80% 42% 27% 13% 70% *Gas stations 25% 60% 12% that have greater than 80% LTV 50% 25% are due to SBA 21% 504 amounts not 40% yet funded 67% 30% 54% 50% 20% 38% 37% 10% 0% GAS STATIONS AMUSEMENTS & REC HOTEL/MOTEL/INN RESTAURANT/FAST NON-ESSENTIAL FOOD RETAIL 0-50 50-70 70-80 80+ 4
C&I – Potential Impact by Sector Highlight of outstanding commercial loans as of Q1 2020 within sectors that may be impacted by COVID- 19 Non-essential Retail Professional Services, 18% Gas Station, 1% Automotive, 2% Beverage, 2% Balance Sector (in thousands) Percentage Commercial Print, 3% Professional Services $16,806 18% Wholesale 16,785 18% Transit Services, 3% Repairs & Maintenance 11,753 13% Wholesale, 18% Insurance 8,597 9% Sporting Goods & Home & Garden 8,497 9% Hobbies, 6% Furniture 6,741 7% Personal Services 6,274 7% Sporting Goods & Hobbies 5,480 6% Transit Services 3,094 3% Beauty / Laundry, 7% Commercial Print 2,938 3% Beverage 1,635 2% Automotive 1,431 2% Gas Stations 1,110 1% Repairs and Maintenance, $91,141 13% Furniture, 7% Average Loan Size $369,000 Home and Garden, 9% Insurance, 9% 5
C&I – Potential Impact by Sector Highlight of outstanding commercial loans as of Q1 2020 within sectors that may be impacted by COVID- 19 Amusements & Recreation Restaurants/Fast Food Golf Courses, 4%, Other (Snacks, Catering, Bars), 1% Other Mobile Food (Amusements, Services, 3% Bowling), 3% Limited-Service Restaurants, 7% Full-Service Restaurants, 89% Fitness Centers, 93% Total C&I – 3% Total C&I – 2% Average Loan Size – $362,000 Average Loan Size – $137,000 6
C&I Warehouse Lending As of 3/31/2020 Fixed Rate Second Non-Qualified Mortgage, 4% Mortgage, 8% Construction to Perm, 5% Warehouse Lending Balance Product (in thousands) Percentage Conventional $58,167 47% Government 45,057 36% Construction to Perm (CTP) 6,737 5% Non-Qualified Mortgage (NQM) 9,294 8% Fixed Rate Second Mortgage 4,489 4% $123,744 Government, 36% Conventional, In late March, non-qualified and construction 47% mortgages were temporarily ceased. As of 6/9/20: CTP: $5.9MM down from $6.8MM on 3/31/20 NQM: $3.0MM down from $9.3MM on 3/31/20 7
COVID Modification Detail ($ in thousands) as of 5/22/2020 100,000 90,000 $ 94,590 80,000 COVID All Other 70,000 Mods, CRE, $137,386 60,000 $278,406 $ 63,606 50,000 COVID 40,000 Mods, $ 42,796 $ 41,827 $105,433 30,000 20,000 10,000 All Other - C&I, CRE C&I $400,791 Payment Deferred Interest Only Overall Modifications Payment Deferred Interest Only $ Outstanding # of Loans % of Modified $ Outstanding # of Loans % of Modified 3/31 Outstanding $ Modified # of Loans % of Total $ CRE $ 94,590 72 30% $ 42,796 43 18% CRE $ 415,792 $ 137,386 115 33% C&I 41,827 70 29% 63,606 54 23% C&I 506,224 105,433 124 21% Total $ 136,417 142 59% $ 106,402 97 41% Total $ 922,016 $ 242,819 239 26% 8
COVID Modification Detail ($in thousands) as of 5/22/2020 200,000 180,000 160,000 3-month, $ 90,810 22% 140,000 120,000 100,000 80,000 60,000 $ 98,372 $ 15,592 40,000 20,000 $ 38,044 - 6-month, 3 MONTH 6 MONTH 78% Payment Deferred Interest Only Payment Deferred Interest Only Total 3-month 6-month 3-month 6-month 3-month 6-month Total $ Total % Total $ Total % Total $ Total % Total $ Total % Total $ Total % Total $ Total % CRE $ 33,978 89% $ 60,611 62% CRE $ 15,556 99% $ 27,240 30% CRE $ 49,534 92% $ 87,851 46% C&I 4,066 11% 37,761 38% C&I 36 1% 63,570 70% C&I 4,102 8% 101,331 54% Total $ 38,044 $ 98,372 Total $ 15,592 $ 90,810 Total $ 53,636 $ 189,182 9
Payroll Protection Program (PPP) as of 5/21/20 Total PPP (as of 5/21/2020) ($ in thousands) SBA Approved, # 257 SBA Approved, $ 74,853 Avg Loan Size, $ 291 Fees, $ 2,705 Fees, % 3.61% 10
Liquidity Monitoring (as of 3/31/20) PPP Funding and modifications will impact liquidity The Bank has adequate sources of liquidity as highlighted below: Additional Borrowing Outstanding Capacity (Dollars in thousands) Federal Home Loan Bank of Boston $ 25,025 $ 172,322 Federal Reserve Bank of Boston 100,000 143,229 Unpledged Securities - 10,674 Lines of Credit - 35,000 Brokered Deposits 104,441 - $ 229,466 $ 361,225 11
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