Triad Business Bank (OTCID – “TBBC”), May 6, 2026, Announces Unaudited First Quarter 2026 Results

Overview

GREENSBORO, N.C.--(BUSINESS WIRE)--In the first quarter of 2026, Triad Business Bank (the “Bank”) reported net income of $404,000 compared to $199,000 for the same period a year ago. Net income totaled $0.05 per share in the first quarter of 2026 compared to $0.02 per share in the first quarter of 2025.

Ramsey Hamadi, Chief Executive Officer, commented, “The Bank’s core earnings improved $437,000 over the prior year period due primarily to an increase in the Bank’s net interest margin. The Bank’s net interest margin increased 36 basis points over the prior year period due primarily to a lower cost of funds. Net interest income increased $540,000 to $3.4 million in the first quarter of 2026 compared to the same period a year ago. Looking forward, the Bank intends to maintain disciplined expense control practices while the Bank’s net interest margin is expected to further improve throughout 2026 and 2027.”

Income Statement Comparison

The Bank’s net income totaled $404,000 for the quarter ended March 31, 2026 compared to $199,000 for the quarter ended March 31, 2025. Core operating results, a non-GAAP measurement which excludes the provision for credit losses and taxes, reflected earnings of $471,000 for the first quarter of 2026 compared to $34,000 for the same quarter in the prior year.

Net interest income increased $540,000 to $3.4 million for the first quarter of 2026 from $2.9 million for the first quarter of 2025. The Bank’s net interest margin for the first quarter increased 36 basis points to 2.63% compared to 2.27% for the prior year quarter.

Interest income decreased $17,000 to $6.7 million in the first quarter of 2026 compared to the same quarter of 2025. The slight decrease in interest income year over year was due primarily to declines in market interest rates and declines in average investment securities. Average loans increased $25.8 million to $403.8 million at March 31, 2026. The weighted average yield on average loans decreased 15 basis points to 5.86% in the first quarter of 2026 compared to 6.01% in the first quarter of 2025. The weighted average rate on interest-bearing liabilities decreased 73 basis points to 3.44% in the first quarter of 2026 compared to 4.17% in the same quarter of 2025. Approximately half the decline in the cost of funds was due to repricing of brokered CDs during the past 12 months.

Noninterest income increased 10% to $267,000 in the first quarter of 2026 compared to $242,000 in the first quarter of 2025. The increase was primarily due to the expanded collection of overdraft/NSF fees beginning in December 2025.

Noninterest expense increased $127,000 in the first quarter of 2026 compared to the prior year quarter. Salaries and benefits expense increased $115,000, or 6%, in the first quarter of 2026 compared to the first quarter of 2025. This increase was primarily due to compensation adjustments effective July 1, 2025 and an increase in performance-related compensation. The Bank had 54 employees at the end of March 2026 compared to 55 employees at the end of March 2025. Premises and equipment expense increased $30,000 in the first quarter of 2026 compared to the prior year period due primarily to increased lease expense. Other noninterest expenses decreased $18,000 for the first quarter of 2026 over the same period in 2025. Increases in legal and other professional expense were offset by decreases in FDIC insurance assessment expense, repossessed property expense, and director compensation expense.

Balance Sheet Comparison

Total assets increased $15.7 million to $536.9 million at March 31, 2026 from $521.2 million at March 31, 2025. Loans increased $33.5 million while cash decreased $4.6 million and securities decreased $15.1 million over the same period. Deposits decreased $16.4 million year over year, net of an increase of $2.3 million in brokered CDs. Other borrowings increased $26.0 million to $45.0 million at March 31, 2026 from $19.0 million at March 31, 2025.

Shareholders’ equity increased $5.5 million year over year to $50.6 million at March 31, 2026. Accumulated other comprehensive income/loss (“AOCI”) improved by $3.7 million year over year to an unrealized loss of $8.5 million from an unrealized loss of $12.2 million at March 31, 2025. The AOCI loss is expected to reverse, assuming no future credit impairments, as the bond portfolio shortens in life and is assumed to mature at par value.

Regulatory Capital

Total risk-based capital consists of tier 1 capital and tier 2 capital. The Bank’s tier 1 capital is largely a measure of shareholders’ equity as calculated under GAAP but excludes the AOCI loss. Tier 2 capital is primarily the allowance for credit losses on funded and unfunded loan commitments. Tier 1 and tier 2 capital ratios are measured against total assets and risk-weighted assets.

The following is a summary presentation of the Bank’s total regulatory capital to risk-weighted assets, tier 1 capital to risk-weighted assets and tier 1 capital to average assets in comparison with the regulatory guidelines at March 31, 2026:

Capital and Capital Ratios

	Quarter Ended
	3/31/2026
	Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)	$	62,984	12.18	%
Tier 1 Capital (to risk-weighted assets)	$	59,165	11.44	%
Tier 1 Capital (to average assets)	$	59,165	10.86	%
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)	$	52,000	10.00	%
Tier 1 Capital (to risk-weighted assets)	$	41,000	8.00	%
Tier 1 Capital (to average assets)	$	27,000	5.00	%

The Bank continues to be “well-capitalized” for regulatory purposes.

Loans

The Bank’s outstanding loans increased $33.5 million, or 9%, to $407.9 million at March 31, 2026 compared to $374.4 million at March 31, 2025. While not included in loans outstanding, the Bank also had unfunded loan commitments of $142.1 million, bringing total loans outstanding and unfunded commitments to $550.0 million at March 31, 2026. For internal monitoring purposes, the Bank considers owner-occupied real estate loans to be part of commercial and industrial (“C&I”) loans. As of March 31, 2026, approximately 50% of the Bank’s outstanding loan portfolio was composed of C&I loans:

Loan Diversification

			Percentage of
Loan Category	3/31/2026		Loan Portfolio
Other Construction & Land Development	$	55,920,741
Nonowner-occupied Commercial Real Estate		145,422,864
Total Commercial Real Estate		201,343,605	49%
Owner-occupied Real Estate		101,382,308
C&I		101,427,041
Total C&I		202,809,349	50%
Other Revolving Loans		3,770,555	1%
Total	$	407,923,509

Credit Risk and Allowance for Credit Losses

During the first quarter of 2026, there was a provision for credit losses of $46,000 compared to a reversal of $165,000 during the quarter ended March 31, 2025. For first quarter 2026, the components of this item were a provision for credit losses on loans of $75,000 and a reversal of provision for credit losses on unfunded loan commitments of $29,000 compared to first quarter 2025 components of a reversal of provision for credit losses on loans of $136,000 and a reversal of provision for credit losses on unfunded loan commitments of $29,000.

The allowance for credit losses on loans was $3.4 million at March 31, 2026 compared to $3.8 million at March 31, 2025, or 0.85% and 1.02% of outstanding loans, respectively. Loan charge-offs were $45,000 in the first quarter of 2026 compared to $114,000 in the first quarter of 2025. The allowance for credit losses on unfunded loan commitments, recorded as a liability on the balance sheet, was $347,000, or 0.24% of unfunded commitments, at March 31, 2026 compared to $429,000, or 0.30%, at March 31, 2025. The decline in the allowance for credit losses on loans and unfunded commitments was driven by adjustments made due to changes in qualitative assessment factors related to changes in the government regulatory environment and the interest rate environment.

The Bank had $6.6 million in nonaccrual loans relating to two credit relationships at March 31, 2026 compared to no nonaccrual loans at March 31 2025. These loans were individually evaluated for credit loss. The loans in one relationship were written down to fair value in the fourth quarter of 2025. The loan in the second relationship is well secured and does not require a specific allowance.

Adjusted Tangible Book Value (Non-GAAP Measures)

The Bank’s GAAP tangible book value per share was $6.29 at March 31, 2026. On a non-GAAP basis, excluding the AOCI loss and the impairment on the Bank’s deferred tax asset (two reductions in capital under GAAP the Bank anticipates it will recover over time), adjusted tangible book value per share was $7.70 at March 31, 2026.

The organization and startup costs incurred during the Bank’s organizational period and net operating losses from the beginning of operations created a deferred tax asset of $2.8 million. This asset is currently fully impaired and will be carried at $0 until sufficient, verifiable evidence exists (generally, sustained profitability) to demonstrate that the deferred tax asset will more likely than not be realized. At that time, the valuation allowance will be reversed.

The change in fair value, excluding any credit impairment, of the Bank’s investment securities that are available for sale is recorded in AOCI as a gain or loss, based on current circumstances, and constitutes an unrealized component of equity. At March 31, 2026, the Bank had an aggregate AOCI loss of $8.5 million. Assuming the underlying investment securities are held to maturity and there are no future credit impairments, the value of the securities will return to their face values at maturity.

Outlook

Although there could be some compression in the net interest margin in the near term if the Federal Reserve makes additional reductions in the federal funds target rate, we expect the Bank’s net interest margin to increase throughout 2026 and 2027 as lower yielding loans and investments mature and are replaced by those with higher yields, coupled with a further modest decline in the cost of funds.

About Triad Business Bank

With three co-equal offices located in Winston-Salem, High Point and Greensboro, Triad Business Bank focuses on meeting the needs of small to midsize businesses and their owners by providing loans, treasury management and private banking, all with a high level of personal attention and best-in-class technology. For more information, visit www.triadbusinessbank.com.

Non-GAAP Financial Measures

This release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). The management of Triad Business Bank uses these non-GAAP financial measures in its analysis of the Bank’s performance. These measures typically adjust GAAP performance measures to exclude the effects of the provision for credit losses, income tax, deferred tax asset, and AOCI. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Bank. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Forward Looking Language

This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Triad Business Bank. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of Triad Business Bank and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like “expect,” “anticipate,” “estimate” and “believe,” variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Triad Business Bank undertakes no obligation to update any forward-looking statements.

Triad Business Bank
Balance Sheet (Unaudited)		March 31, 2026			March 31, 2025			$ Change			% Change
	Assets
	Cash & Due from Banks	$	15,595,674		$	20,220,053		$	(4,624,379	)	-23	%
	Securities		106,424,196			121,514,871			(15,090,675	)	-12	%
	Federal Funds Sold		-			-			-		0	%
	Loans		407,923,509			374,401,277			33,522,232		9	%
	Allowance for Credit Losses ("ACL")		(3,471,571	)		(3,835,717	)		364,146		9	%
	Loans, Net		404,451,938			370,565,560			33,886,378		9	%
	Other Assets		10,418,621			8,904,916			1,513,705		17	%
	Total Assets	$	536,890,429		$	521,205,400		$	15,685,029		3	%
	Liabilities
	Demand Deposits	$	87,056,395		$	96,127,782		$	(9,071,387	)	-9	%
	ICS Reciprocal - Checking		367,180			1,076,893			(709,713	)	-66	%
	Commercial Operating Accounts		87,423,575			97,204,675			(9,781,100	)	-10	%
	Interest-bearing NOW		23,362,189			22,114,026			1,248,163		6	%
	Core MMA & Savings		103,096,005			101,889,815			1,206,190		1	%
	ICS Reciprocal - MMA		40,311,365			38,773,606			1,537,759		4	%
	Total MMA & Savings		143,407,370			140,663,421			2,743,949		2	%
	Core Time Deposits		24,662,571			30,729,573			(6,067,002	)	-20	%
	CDARS - Reciprocal		12,770,838			19,588,579			(6,817,741	)	-35	%
	Brokered CDs		145,644,197			143,361,538			2,282,659		2	%
	Total Time Deposits		183,077,606			193,679,690			(10,602,084	)	-5	%
	Total Deposits		437,270,740			453,661,812			(16,391,072	)	-4	%
	Other Borrowings		45,000,000			19,000,000			26,000,000		137	%
	Federal Funds Purchased		-			-			-		0	%
	ACL on Unfunded Commitments		347,468			429,291			(81,823	)	-19	%
	Other Liabilities		3,624,675			2,952,028			672,647		23	%
	Total Liabilities		486,242,883			476,043,131			10,199,752		2	%
	Shareholders' Equity
	Common Stock		73,443,013			73,260,400			182,613		0	%
	Accumulated Deficit		(14,278,111	)		(15,877,898	)		1,599,787		10	%
	Accumulated Other Comprehensive Loss		(8,517,356	)		(12,220,233	)		3,702,877		30	%
	Total Shareholders' Equity		50,647,546			45,162,269			5,485,277		12	%
	Total Liabilities & Shareholders' Equity	$	536,890,429		$	521,205,400		$	15,685,029		3	%
	Shares Outstanding		8,055,028			7,993,969			61,059		1	%
	Tangible Book Value per Share	$	6.29		$	5.65		$	0.64		11	%

Triad Business Bank
Income Statement (Unaudited)		For Three Months Ended		For Three Months Ended
		March 31, 2026		March 31, 2025			$ Change			% Change
	Interest Income
	Interest & Fees on Loans	$	5,832,096	$	5,603,820		$	228,276		4	%
	Interest & Dividend Income on Securities		747,515		981,564			(234,049	)	-24	%
	Interest Income on Balances Due from Banks		136,572		152,968			(16,396	)	-11	%
	Other Interest Income		30,145		24,920			5,225		21	%
	Total Interest Income		6,746,328		6,763,272			(16,944	)	0	%
	Interest Expense
	Interest on Checking Deposits		172,247		204,844			(32,597	)	-16	%
	Interest on Savings & MMA Deposits		1,081,799		1,178,988			(97,189	)	-8	%
	Interest on Time Deposits		1,827,467		2,256,103			(428,636	)	-19	%
	Interest on Federal Funds Purchased		-		-			-		0	%
	Interest on Borrowings		233,112		232,547			565		0	%
	Other Interest Expense		7,806		6,821			985		14	%
	Total Interest Expense		3,322,431		3,879,303			(556,872	)	-14	%
	Net Interest Income		3,423,897		2,883,969			539,928		19	%
	Provision for (Reversal of) Credit Losses		45,750		(164,869	)		210,619		128	%
	Net Interest Income After Provision for CL		3,378,147		3,048,838			329,309		11	%
	Total Noninterest Income		266,664		241,614			25,050		10	%
	Noninterest Expense
	Salaries & Benefits		2,035,874		1,920,999			114,875		6	%
	Premises & Equipment		166,034		135,548			30,486		22	%
	Total Other Noninterest Expense		1,017,316		1,035,184			(17,868	)	-2	%
	Total Noninterest Expense		3,219,224		3,091,731			127,493		4	%
	Income Before Income Tax		425,587		198,721			226,866		114	%
	Income Tax		21,300		-			21,300		100	%
	Net Income	$	404,287	$	198,721		$	205,566		103	%
	Net Income per Share
	Basic	$	0.05	$	0.02		$	0.03		150	%
	Diluted	$	0.05	$	0.02		$	0.03		150	%
	Weighted Average Shares Outstanding
	Basic		8,055,028		7,993,969			61,059		1	%
	Diluted		8,149,033		8,104,884			44,149		1	%
	Pre-provision, Pre-tax Income	$	471,337	$	33,852		$	437,485		1292	%

Triad Business Bank
Key Ratios & Other Information (Unaudited)
			Quarter Ended						Quarter Ended
			3/31/2026						3/31/2025
			Interest						Interest
			Income/		Yield/				Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Yield on Average Loans	$	403,849,070	$	5,832,096	5.86	%	$	378,077,913	$	5,603,820	6.01	%
Yield on Average Investment Securities	$	108,173,817	$	747,515	2.80	%	$	123,013,996	$	981,564	3.24	%
Yield on Average Interest-earning Assets	$	528,366,791	$	6,746,328	5.18	%	$	516,264,236	$	6,763,272	5.31	%
Cost of Average Interest-bearing Liabilities	$	391,735,452	$	3,322,431	3.44	%	$	377,407,361	$	3,879,303	4.17	%
Net Interest Margin
Interest Income			$	6,746,328					$	6,763,272
Interest Expense				3,322,431						3,879,303
Average Earnings Assets	$	528,366,791					$	516,264,236
Net Interest Income & Net Interest Margin			$	3,423,897	2.63	%			$	2,883,969	2.27	%
Loan to Asset Ratio
Loan Balance	$	407,923,509					$	374,401,277
Total Assets		536,890,429			75.98	%		521,205,400			71.83	%
Leverage Ratio
Tier 1 Capital	$	59,164,902					$	57,382,502
Average Total Assets		544,565,168			10.86	%		537,762,260			10.67	%
Unfunded Commitments to Extend Credit	$	142,084,726					$	142,972,352
Standby Letters of Credit		1,535,517						186,252

Triad Business Bank
Balance Sheet (Unaudited)		March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
	Assets
	Cash & Due from Banks	$	15,595,674		$	17,697,634		$	12,939,248		$	20,518,736		$	20,220,053
	Securities		106,424,196			108,689,819			112,752,361			118,340,187			121,514,871
	Federal Funds Sold		-			-			-			-			-
	Loans		407,923,509			400,530,772			394,605,618			387,929,131			374,401,277
	Allowance for Credit Losses ("ACL")		(3,471,571	)		(3,441,699	)		(3,672,677	)		(3,563,077	)		(3,835,717	)
	Loans, Net		404,451,938			397,089,073			390,932,941			384,366,054			370,565,560
	Other Assets		10,418,621			7,446,792			8,473,437			8,101,708			8,904,916
	Total Assets	$	536,890,429		$	530,923,318		$	525,097,987		$	531,326,685		$	521,205,400
	Liabilities
	Demand Deposits	$	87,056,395		$	99,366,230		$	98,688,414		$	103,045,441		$	96,127,782
	ICS Reciprocal - Checking		367,180			887,684			2,566,965			1,187,591			1,076,893
	Commercial Operating Accounts		87,423,575			100,253,914			101,255,379			104,233,032			97,204,675
	Interest-bearing NOW		23,362,189			25,317,392			24,447,604			27,105,045			22,114,026
	Core MMA & Savings		103,096,005			113,295,751			95,465,194			105,083,693			101,889,815
	ICS Reciprocal - MMA		40,311,365			43,606,487			41,153,986			40,946,981			38,773,606
	Total MMA & Savings		143,407,370			156,902,238			136,619,180			146,030,674			140,663,421
	Core Time Deposits		24,662,571			24,867,472			24,594,478			29,853,816			30,729,573
	CDARS - Reciprocal		12,770,838			14,965,606			20,853,864			22,900,997			19,588,579
	Brokered CDs		145,644,197			145,308,713			145,485,010			142,795,132			143,361,538
	Total Time Deposits		183,077,606			185,141,791			190,933,352			195,549,945			193,679,690
	Total Deposits		437,270,740			467,615,335			453,255,515			472,918,696			453,661,812
	Other Borrowings		45,000,000			9,000,000			19,000,000			9,000,000			19,000,000
	Federal Funds Purchased		-			-			-			-			-
	ACL on Unfunded Commitments		347,468			376,509			363,405			372,645			429,291
	Other Liabilities		3,624,675			3,363,566			3,166,723			2,884,549			2,952,028
	Total Liabilities		486,242,883			480,355,410			475,785,643			485,175,890			476,043,131
	Shareholders' Equity
	Common Stock		73,443,013			73,389,919			73,343,619			73,288,274			73,260,400
	Accumulated Deficit		(14,278,111	)		(14,682,398	)		(15,179,127	)		(15,661,838	)		(15,877,898	)
	Accumulated Other Comprehensive Loss		(8,517,356	)		(8,139,613	)		(8,852,148	)		(11,475,641	)		(12,220,233	)
	Total Shareholders' Equity		50,647,546			50,567,908			49,312,344			46,150,795			45,162,269
	Total Liabilities & Shareholders' Equity	$	536,890,429		$	530,923,318		$	525,097,987		$	531,326,685		$	521,205,400
	Shares Outstanding		8,055,028			8,055,028			8,054,528			8,054,528			7,993,969
	Tangible Book Value per Share	$	6.29		$	6.28		$	6.12		$	5.73		$	5.65

Triad Business Bank
Income Statement (Unaudited)		For Three Months Ended		For Three Months Ended			For Three Months Ended			For Three Months Ended		For Three Months Ended
		March 31, 2026		December 31, 2025			September 30, 2025			June 30, 2025		March 31, 2025
	Interest Income
	Interest & Fees on Loans	$	5,832,096	$	6,030,530		$	6,025,540		$	5,659,178	$	5,603,820
	Interest & Dividend Income on Securities		747,515		785,082			882,108			943,570		981,564
	Interest Income on Balances Due from Banks		136,572		132,833			152,838			166,584		152,968
	Other Interest Income		30,145		24,937			27,802			29,364		24,920
	Total Interest Income		6,746,328		6,973,382			7,088,288			6,798,696		6,763,272
	Interest Expense
	Interest on Checking Deposits		172,247		194,461			222,838			216,596		204,844
	Interest on Savings & MMA Deposits		1,081,799		1,024,058			1,164,179			1,189,823		1,178,988
	Interest on Time Deposits		1,827,467		1,982,218			2,177,333			2,210,085		2,256,103
	Interest on Federal Funds Purchased		-		-			439			-		-
	Interest on Borrowings		233,112		237,895			184,712			182,319		232,547
	Other Interest Expense		7,806		6,263			9,126			6,901		6,821
	Total Interest Expense		3,322,431		3,444,895			3,758,627			3,805,724		3,879,303
	Net Interest Income		3,423,897		3,528,487			3,329,661			2,992,972		2,883,969
	Provision for (Reversal of) Credit Losses		45,750		41,138			(90,500	)		20,714		(164,869	)
	Net Interest Income After Provision for CL		3,378,147		3,487,349			3,420,161			2,972,258		3,048,838
	Total Noninterest Income		266,664		234,576			241,239			198,049		241,614
	Noninterest Expense
	Salaries & Benefits		2,035,874		2,089,058			2,087,708			1,894,375		1,920,999
	Premises & Equipment		166,034		153,918			159,287			142,565		135,548
	Total Other Noninterest Expense		1,017,316		992,221			921,694			917,307		1,035,184
	Total Noninterest Expense		3,219,224		3,235,197			3,168,689			2,954,247		3,091,731
	Income Before Income Tax		425,587		486,728			492,711			216,060		198,721
	Income Tax		21,300		(10,000	)		10,000			-		-
	Net Income	$	404,287	$	496,728		$	482,711		$	216,060	$	198,721
	Net Income per Share
	Basic	$	0.05	$	0.06		$	0.06		$	0.03	$	0.02
	Diluted	$	0.05	$	0.06		$	0.06		$	0.03	$	0.02
	Weighted Average Shares Outstanding
	Basic		8,055,028		8,054,648			8,054,528			8,031,902		7,993,969
	Diluted		8,149,033		8,149,153			8,151,533			8,128,907		8,104,884
	Pre-provision, Pre-tax Income	$	471,337	$	527,866		$	402,211		$	236,774	$	33,852

Triad Business Bank
Capital and Capital Ratios (Unaudited)
	Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
	3/31/2026				12/31/2025				9/30/2025				6/30/2025				3/31/2025
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)	$	62,984	12.18	%	$	62,526	12.30	%	$	62,200	12.24	%	$	61,562	12.15	%	$	61,647	12.34	%
Tier 1 Capital (to risk-weighted assets)	$	59,165	11.44	%	$	58,708	11.55	%	$	58,164	11.44	%	$	57,626	11.37	%	$	57,382	11.49	%
Tier 1 Capital (to average assets)	$	59,165	10.86	%	$	58,708	10.95	%	$	58,164	10.84	%	$	57,626	10.76	%	$	57,382	10.67	%
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)	$	52,000	10.00	%	$	51,000	10.00	%	$	51,000	10.00	%	$	51,000	10.00	%	$	50,000	10.00	%
Tier 1 Capital (to risk-weighted assets)	$	41,000	8.00	%	$	41,000	8.00	%	$	41,000	8.00	%	$	41,000	8.00	%	$	40,000	8.00	%
Tier 1 Capital (to average assets)	$	27,000	5.00	%	$	27,000	5.00	%	$	27,000	5.00	%	$	27,000	5.00	%	$	27,000	5.00	%

Triad Business Bank
Non-GAAP Measures (Unaudited)
Tangible Book Value
	Actual 3/31/2026		Non-GAAP 3/31/2026
Total Shareholders' Equity	$	50,647,546	$	50,647,546
Eliminate Deferred Tax Asset Valuation Allowance		-		2,831,057
Eliminate Accumulated Other Comprehensive Loss		-		8,517,356
Adjusted Shareholders' Equity	$	50,647,546	$	61,995,959
Shares Outstanding		8,055,028		8,055,028
Tangible Book Value per Share	$	6.29	$	7.70
Effect of Non-GAAP Measures on Tangible Book Value			$	1.41
During the start-up phase of the Bank, a valuation allowance was created which fully impairs the deferred tax asset. When sufficient, verifiable evidence exists (generally, sustained profitability) demonstrating that the deferred tax asset will more likely than not be realized, the valuation allowance will be eliminated. This Non-GAAP measure is shown to disclose the effect on tangible book value per share at March 31, 2026 had there been no valuation allowance at that date.
Changes in the market value of available-for-sale securities are reflected in accumulated other comprehensive loss. Since the securities value will return to face value at maturity, assuming the underlying securities are held to maturity and there is no credit loss, accumulated other comprehensive loss has been eliminated in this Non-GAAP measure.
Pre-provision Income
	Qtr Ended 3/31/2026		Qtr Ended 3/31/2025
Income Before Income Tax	$	425,587	$	198,721
Provision for (Reversal of) Credit Losses		45,750		(164,869	)
Pre-provision Income Before Income Tax (Non-GAAP)	$	471,337	$	33,852
The pre-provision income is a measure of operating performance exclusive of potential losses from lending.