TINTON FALLS, N.J., Oct. 22, 2019 (GLOBE NEWSWIRE) -- Two River Bancorp (Nasdaq: TRCB) (the "Company"), the parent company of Two River Community Bank (the “Bank"), today reported financial results for the third quarter and nine months ended September 30, 2019.

2019 Third Quarter Financial Highlights(comparisons to 2018 third quarter)

-- Announced the signing of a definitive merger agreement with OceanFirst Financial Corp. (NASDAQ:OCFC) (“OceanFirst”), parent company of OceanFirst Bank N.A. (“OceanFirst Bank”). -- Net income was $2.1 million, or $0.24 per diluted share, as the Company incurred $828,000, or $662,000 after-tax, in expenses relating to the Company’s pending merger with OceanFirst and a $411,000, or $288,000 after-tax, write-down on an OREO property. These expenses impacted several metrics within the quarter and year-to-date. -- Excluding the aforementioned expenses, 2019 third quarter net income was $3.1 million, or $0.35 per diluted share. -- Return on average assets was 0.73%, compared to 1.04% -- Return on average equity was 6.84%, compared to 9.98% -- Net interest margin decreased 15 basis points to 3.40% -- Efficiency ratio(1) was 70.22%, compared to 61.78%

(Totals at September 30, 2019; comparisons to December 31, 2018)

-- Total loans were $959.9 million, an increase of $38.6 million, or 5.6% annualized -- Total deposits were $963.3 million, an increase of $45.9 million, or 6.7% annualized -- Total assets were $1.147 billion, compared to $1.096 billion -- Tangible book value per share(2) increased to $12.08, compared to $11.43

(1) Efficiency ratio represents the ratio of non-interest expense to the sum of net interest income and non-interest income.(2) Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release.

Management Commentary William D. Moss, Chairman, President, and CEO, stated, “We were pleased to report solid core profitability and book value growth despite higher expenses related to the Company’s pending merger and write-down on one of our OREO properties. Our loan growth of $6.8 million for the quarter was tempered by larger than expected payoffs, much of which is the result of the completion and ultimate sale of several construction loan projects.”

Dividend InformationOn October 16, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 29, 2019 to shareholders of record as of the close of business on November 6, 2019. This marks the 27th consecutive quarterly cash dividend.

Key Quarterly Performance Metrics 9 Mo. 9 Mo. 3rd Qtr. 2ndQtr. 1st Qtr. 4thQtr. 3rdQtr. Ended Ended 2019 2019 2019 2018 2018 9/30/20199/30/2018 -------- -------- -------- -------- -------- -------- -------- Net Income (in thousands) $2,115 $3,048 $2,783 $3,046 $2,834 $7,946 $8,160 Earnings per Common Share – Diluted $0.24 $0.35 $0.32 $0.35 $0.33 $0.91 $0.94 Return on Average Assets 0.73 % 1.07 % 1.01 % 1.10 % 1.04 % 0.93 % 1.03 % Return on Average Tangible Assets(1) 0.74 % 1.08 % 1.02 % 1.11 % 1.06 % 0.95 % 1.04 % Return on Average Equity 6.84 % 10.18 % 9.59 % 10.52 % 9.98 % 8.84 % 9.91 % Return on Average Tangible Equity(1) 8.03 % 11.98 % 11.33 % 12.49 % 11.90 % 10.41 % 11.86 % Net Interest Margin 3.40 % 3.54 % 3.60 % 3.56 % 3.55 % 3.51 % 3.59 % Efficiency Ratio(2) 70.22 % 59.58 % 59.95 % 60.69 % 61.78 % 63.20 % 61.99 % Non-Performing Assets to Total Assets 0.33 % 0.37 % 0.39 % 0.18 % 0.18 % 0.33 % 0.18 % Allowance as a % of Loans 1.23 % 1.23 % 1.22 % 1.24 % 1.26 % 1.23 % 1.26 % (1) Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release. (2) Efficiency ratio represents the ratio of non-interest expense to the sum of net interest income and non-interest income.

Loan CompositionThe components of the Company’s loan portfolio at September 30, 2019 and December 31, 2018 are as follows:

(in thousands) September 30, December % 2019 31, Change 2018 ------------- --------- ------ Commercial and industrial $ 107,944 $ 109,362 (1.3 )% Real estate – construction 144,577 144,865 (0.2 )% Real estate – commercial 579,214 552,549 4.8 % Real estate – residential 98,047 84,123 16.6 % Consumer 30,791 31,144 (1.1 )% Unearned fees (709 ) (742 ) (4.5 )% ------ 959,864 921,301 4.2 % Allowance for loan losses (11,811 ) (11,398 ) 3.6 % - ----------- - ------- ------ -- Net Loans $ 948,053 $ 909,903 4.2 % - ----------- - ------- ------ --

Deposit CompositionThe components of the Company’s deposits at September 30, 2019 and December 31, 2018 are as follows:

(in thousands) September 30, December % 2019 31, Change 2018 ------------- --------- ------ Non-interest-bearing $ 179,610 $ 176,655 1.7 % NOW accounts 201,924 193,347 4.4 % Savings deposits 251,217 258,666 (2.9 )% Money market deposits 35,775 43,936 (18.6 )% Listed service CD’s 44,016 39,807 10.6 % Time deposits / IRA 177,350 130,863 35.5 % Wholesale deposits 73,405 74,080 (0.9 )% - ----------- - ------- ------ -- Total Deposits $ 963,297 $ 917,354 5.0 % - ----------- - ------- ------ --

2019 Third Quarter Financial Review

Net IncomeNet income for the three months ended September 30, 2019 decreased 25.4% to $2.1 million, or $0.24 per diluted common share, compared to $2.8 million, or $0.33 per diluted common share, for the same period last year. The decrease was largely due to merger related expenses of $828,000 and a $411,000 write-down on an OREO property, which was partially offset by lower FDIC insurance expense.

On a linked quarter basis, third quarter 2019 net income decreased 30.6% compared to the second quarter of 2019.

Net Interest IncomeNet interest income for the quarter ended September 30, 2019 was $9.2 million, an increase of 1.4% compared to $9.1 million in the corresponding prior year period. This was largely due to an increase of $58.9 million, or 5.8%, in average interest-earning assets, primarily attributable to growth in the loan portfolio.

Net Interest MarginThe Company reported a net interest margin of 3.40% for the third quarter of 2019, compared to 3.54% in the second quarter of 2019 and 3.55% reported for the third quarter of 2018. The decline from both prior periods was primarily due to higher cost of funds.

Non-Interest IncomeNon-interest income for the quarter ended September 30, 2019 decreased to $1.1 million, compared to $1.4 million in the corresponding prior year period. This 17.0% decrease was largely the result of lower gains on the sale of SBA loans and lower other loan fees, primarily due to higher loan prepayment fees in the prior year. These decreases were partially offset by both higher mortgage banking revenues and other income.

On a linked quarter basis, non-interest income decreased 8.7%, from the second quarter of 2019, mainly due to lower gains on the sale of SBA loans.

Non-Interest ExpenseNon-interest expense for the quarter ended September 30, 2019 totaled $7.3 million, an increase of $808,000, or 12.5%, from the $6.5 million reported in same period in 2018, primarily due to expenses relating to the Company’s pending merger with OceanFirst, and the aforementioned write-down of an OREO property. During the current quarter, no FDIC insurance expense was recorded, as compared to $128,000 in the same prior year period. The FDIC notified the Bank that it was eligible for small bank assessment credits since the Deposit Insurance Fund reserve ratio of 1.40% at June 30, 2019 exceeded the 1.38% level. As such, the total credit awarded to the Bank was $252,000, which more than covered the September 30, 2019 payment of $117,000. Accordingly, no expense was incurred during the third quarter. The Company’s efficiency ratio was 70.22% for the quarter, compared to 61.78% for the same period in 2018.

On a linked quarter basis, non-interest expense increased $915,000, or 14.4%, mainly due to the same reasons as noted above.

Income Tax ExpenseThe Company’s effective tax rate was 28.5% for the three months ended September 30, 2019, compared to 26.3% for the same period last year mainly due to the non-deductibility of certain merger related expenses. The Company recognized a $29,000 tax benefit related to the accounting treatment of equity-based compensation in the third quarter of 2019, compared to a $35,000 benefit in the same period last year.

At the present time, the Company is anticipating a 2019 effective tax rate of 28%.

Provision for Loan LossesDuring the quarter, a provision for loan losses of $125,000 was expensed, compared to $150,000 in the same prior year period. The majority of the third quarter 2019 provision was to support loan growth. The Company had $2,000 and $39,000 in net loan recoveries during the third quarter of 2019 and 2018, respectively.

2019 Nine Month Financial Review

Net IncomeNet income for the nine months ended September 30, 2019 was $7.9 million, or $0.91 per diluted share, compared to $8.2 million, or $0.94 per diluted share, in the same prior year period. This decrease was due to the same reasons noted earlier in the third quarter review.

Net Interest IncomeFor the first nine months of 2019, net interest income increased 4.2% to $28.0 million from $26.9 million in the prior year period. This was largely due to an increase of $64.2 million, or 6.4%, in average interest-earning assets, primarily attributable to growth in the loan portfolio.

Net Interest MarginThe net interest margin for the first nine months of 2019 was 3.51%, compared to 3.59% in the prior year period, primarily due to higher cost of funds.

Non-Interest IncomeFor the nine months ended September 30, 2019, non-interest income decreased $648,000, or 15.6%, to $3.5 million from the same period in 2018 mainly due to the same reasons noted earlier in the third quarter review.

Non-Interest ExpenseFor the nine months ended September 30, 2019, non-interest expense increased $679,000, or 3.5%, to $19.9 million, compared to $19.2 million the same period last year mainly due to the same reasons noted earlier in the third quarter review. The efficiency ratio for the nine months ended September 30, 2019 was 63.20% compared to 61.99% in the same prior year period.

Income Tax ExpenseFor the nine months ended September 30, 2019, the effective tax rate was 27.4%, compared to 26.0% for the same period last year. The Company recorded a $67,000 tax benefit related to the accounting treatment of equity-based compensation, as compared to $168,000 for the same period last year.

Provision for Loan LossesFor the first nine months of 2019, a provision of $650,000 was expensed, compared to $775,000 for the same prior year period. The Company had $237,000 and $53,000 in net loan charge-offs for the first nine months of 2019 and 2018, respectively.

Financial Condition / Balance Sheet

At September 30, 2019, the Bank maintained capital ratios that were in excess of regulatory standards for well capitalized institutions. The Bank’s Tier 1 capital to average assets ratio was 10.07%, its common equity Tier 1 capital to risk weighted assets ratio was 11.30%, its Tier 1 capital to risk weighted assets ratio was 11.30%, and its total capital to risk weighted assets ratio was 12.47%.

Total assets as of September 30, 2019 were $1.147 billion, compared to $1.096 billion at December 31, 2018 and $1.086 million as of September 30, 2018.

Total loans as of September 30, 2019 were $959.9 million, compared to $921.3 million at December 31, 2018 and $900.9 million as of September 30, 2018.

Total deposits as of September 30, 2019 were $963.3 million, compared to $917.4 million as of December 31, 2018 and $905.7 million as of September 30, 2018. Core checking deposits at September 30, 2019 were $381.5 million, compared to $370.0 million at December 31, 2018 and $369.1 million at September 30, 2018. The Company continues to focus on building core checking account deposit relationships, which can vary from quarter to quarter due to the seasonality in municipal and other relationships.

Allowance for Loan LossesAs of September 30, 2019, the Company's allowance for loan losses was $11.8 million, compared to $11.4 million as of December 31, 2018. The loss allowance as a percentage of total loans was 1.23% at September 30, 2019 compared to 1.24% at December 31, 2018.

Asset QualityThe Company's non-performing assets at September 30, 2019 were $3.8 million, as compared to $4.3 million at June 30, 2019 and $2.0 million at December 31, 2018. Non-performing assets to total assets at September 30, 2019 were 0.33%, compared to 0.37% at June 30, 2019 and 0.18% at December 31, 2018.

Non-accrual loans were $1.3 million at September 30, 2019, compared to $1.4 million at both December 31, 2018 and September 30, 2018. OREO was $2.5 million at September 30, 2019, compared to $585,000 at December 31, 2018 and September 30, 2018. As mentioned earlier, the Company recorded a $411,000 write-down on an OREO property during the quarter.

Troubled debt restructured loan balances amounted to $5.6 million at September 30, 2019, with all but $555,000 performing. This compared to $7.7 million at December 31, 2018 and $6.6 million at September 30, 2018.

About the CompanyTwo River Bancorp is the holding company for Two River Community Bank, which is headquartered in Tinton Falls, New Jersey. Two River Community Bank operates 14 branches along with two loan production offices throughout Monmouth, Union, Essex, and Ocean Counties, New Jersey. More information about Two River Community Bank and Two River Bancorp is available at www.tworiver.bank.

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. These statements may be identified by such forward-looking terminology as "continuing," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy," or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, the ability to obtain regulatory approvals and satisfy other closing conditions to the merger with OceanFirst, including approval by shareholders of Two River; the timing of closing the merger; that the merger may not be timely completed, if at all; that prior to the completion of the merger, the Company’s business may not perform as expected due to transaction-related uncertainty or other factors; reputational risks and the reaction of the Company’s stockholders, customers, employees and other constituents to the merger; litigation related to the merger, diversion of management time as a result of matters related to the merger; unanticipated changes in the financial markets and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; competition levels; loan and investment prepayments differing from our assumptions; insufficient allowance for credit losses; a higher level of loan charge-offs and delinquencies than anticipated; material adverse changes in our operations or earnings; a decline in the economy in our market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume or an inability to close loans currently in the pipeline; changes in laws and regulations; adoption, interpretation and implementation of accounting pronouncements; operational risks, including the risk of fraud by employees, customers or outsiders; unanticipated effects of our new banking platform; and the inability to successfully implement or expand new lines of business or new products and services. For a list of other factors which would affect our results, see the Company's filings with the Securities and Exchange Commission, including those risk factors identified in the "Risk Factor" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2018. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company assumes no obligation for updating any such forward-looking statements at any time, except as required by law.

Investor Contact: Media Contact: Adam Prior, Senior Vice President Adam Cadmus, Marketing Director The Equity Group Inc. Two River Community Bank Phone: (212) 836-9606 Phone: (732) 982-2167 Email: aprior@equityny.com Email: acadmus@tworiverbank.com

TWO RIVER BANCORP CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Three Months and Nine Months Ended September 30, 2019 and 2018 (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------- 2019 2018 2019 2018 -------- -------- -------- -------- INTEREST INCOME: Loans, including fees $ 11,707 $ 10,656 $ 34,750 $ 30,720 Securities: Taxable 293 274 922 861 Tax-exempt 224 280 697 842 Interest-bearing deposits 260 132 663 293 - ------ - ------ - ------ - ------ Total Interest Income 12,484 11,342 37,032 32,716 - ------ - ------ - ------ - ------ INTEREST EXPENSE: Deposits 2,981 1,924 8,170 4,923 Securities sold under agreements to repurchase 10 14 30 43 Federal Home Loan Bank ("FHLB") and other borrowings 99 136 332 382 Subordinated debt 166 165 497 495 Total Interest Expense 3,256 2,239 9,029 5,843 - ------ - ------ - ------ - ------ Net Interest Income 9,228 9,103 28,003 26,873 PROVISION FOR LOAN LOSSES 125 150 650 775 - ------ - ------ - ------ - ------ Net Interest Income after Provision for Loan Losses 9,103 8,953 27,353 26,098 - ------ - ------ - ------ - ------ NON-INTEREST INCOME: Service fees on deposit accounts 197 236 536 713 Mortgage banking 373 239 1,077 986 Other loan fees 155 378 453 626 Earnings from investment in bank owned life insurance 127 133 398 395 Gain on sale of SBA loans 42 203 378 921 Net realized gain on sale of securities - - 1 - Other income 230 166 670 520 Total Non-Interest Income 1,124 1,355 3,513 4,161 - ------ - ------ - ------ - ------ NON-INTEREST EXPENSES: Salaries and employee benefits 3,756 4,024 11,539 11,919 Occupancy and equipment 1,076 966 3,148 3,099 Professional 355 432 1,261 1,260 Insurance 70 59 201 180 FDIC insurance and assessments - 128 238 374 Advertising 90 90 280 280 Data processing 209 184 571 510 Outside services fees 65 89 179 250 OREO expenses, impairment and sales, net 448 7 298 (8 ) Loan workout expenses 8 28 17 124 Merger related expenses 828 - 828 - Other operating 364 454 1,358 1,251 Total Non-Interest Expenses 7,269 6,461 19,918 19,239 - ------ - ------ - ------ - ------ Income before Income Taxes 2,958 3,847 10,948 11,020 Income Tax Expense 843 1,013 3,002 2,860 - ------ - ------ - ------ - ------ Net Income $ 2,115 $ 2,834 $ 7,946 $ 8,160 - ------ - ------ - ------ - ------ Earnings Per Common Share: Basic $ 0.25 $ 0.33 $ 0.92 $ 0.96 Diluted $ 0.24 $ 0.33 $ 0.91 $ 0.94 Weighted average common shares outstanding: Basic 8,619 8.513 8,605 8,489 Diluted 8,720 8,700 8,721 8,695

TWO RIVER BANCORP CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data) September December 30, 31, 2019 2018 ----------- ----------- ASSETS Cash and due from banks $ 28,416 $ 24,067 Interest-bearing deposits in bank 35,004 24,059 - --------- - --------- Cash and cash equivalents 63,420 48,126 Securities available for sale 21,031 24,407 Securities held to maturity 39,935 47,455 Equity securities 2,582 2,451 Restricted investments, at cost 6,772 6,082 Loans held for sale 1,357 1,496 Loans 959,864 921,301 Allowance for loan losses (11,811 ) (11,398 ) - --------- - --------- Net loans 948,053 909,903 OREO 2,501 585 Bank owned life insurance 22,315 22,098 Premises and equipment, net 6,658 5,917 Operating right-of-use asset 4,698 - Accrued interest receivable 2,560 2,583 Goodwill 18,109 18,109 Other assets 7,003 7,207 - --------- - --------- TOTAL ASSETS $ 1,146,994 $ 1,096,419 - --------- - --------- LIABILITIES Deposits: Non-interest-bearing $ 179,610 $ 176,655 Interest-bearing 783,687 740,699 - --------- - --------- Total Deposits 963,297 917,354 Securities sold under agreements to repurchase 15,084 19,402 FHLB and other borrowings 19,700 22,500 Subordinated debt 9,951 9,923 Accrued interest payable 81 119 Lease liability 4,833 - Other liabilities 10,676 10,623 - --------- - --------- Total Liabilities 1,023,622 979,921 - --------- - --------- SHAREHOLDERS' EQUITY Preferred stock, no par value; 6,500,000 shares authorized, no shares issued and - - outstanding Common stock, no par value; 25,000,000 shares authorized; Issued – 9,076,305 and 8,935,437 at September 30, 2019 and December 31, 2018, respectively Outstanding – 8,715,338 and 8,606,992 at September 30, 2019 and December 31, 2018, 81,405 80,481 respectively Retained earnings 45,355 39,109 Treasury stock, at cost; 360,967 and 328,445 shares at September 30, 2019 and (3,135 ) (2,647 ) December 31, 2018 Accumulated other comprehensive loss (253 ) (445 ) - --------- - --------- Total Shareholders' Equity 123,372 116,498 - --------- - --------- TOTAL LIABILITIES and SHAREHOLDERS’ EQUITY $ 1,146,994 $ 1,096,419 - --------- - ---------

TWO RIVER BANCORP Selected Consolidated Financial Data (Unaudited) Selected Consolidated Earnings Data (in thousands, except per share data) Three Months Ended Nine Months Ended ---------------------------- ------------------ Sept. June 30, Sept. Sept. Sept. 30, 30, 30, 30, Selected Consolidated Earnings Data: 2019 2019 2018 2019 2018 -------- -------- -------- -------- -------- Total Interest Income $ 12,484 $ 12,479 $ 11,342 $ 37,032 $ 32,716 Total Interest Expense 3,256 3,047 2,239 9,029 5,843 - ------ - ------ - ------ - ------ - ------ Net Interest Income 9,228 9,432 9,103 28,003 26,873 Provision for Loan Losses 125 100 150 650 775 - ------ - ------ - ------ - ------ - ------ Net Interest Income after Provision for Loan Losses 9,103 9,332 8,953 27,353 26,098 Other Non-Interest Income 1,124 1,232 1,355 3,513 4,161 Other Non-Interest Expenses 7,269 6,354 6,461 19,918 19,239 - ------ - ------ - ------ - ------ - ------ Income before Income Taxes 2,958 4,210 3,847 10,948 11,020 Income Tax Expense 843 1,162 1,013 3,002 2,860 - ------ - ------ - ------ - ------ - ------ Net Income $ 2,115 $ 3,048 $ 2,834 $ 7,946 $ 8,160 - ------ - ------ - ------ - ------ - ------ Per Common Share Data: Basic Earnings $ 0.25 $ 0.35 $ 0.33 $ 0.92 $ 0.96 Diluted Earnings $ 0.24 $ 0.35 $ 0.33 $ 0.91 $ 0.94 Book Value $ 14.16 $ 14.03 $ 13.27 $ 14.16 $ 13.27 Tangible Book Value(1) $ 12.08 $ 11.93 $ 11.16 $ 12.08 $ 11.16 Average Common Shares Outstanding (in thousands): Basic 8,619 8,596 8,513 8,605 8,489 Diluted 8,720 8,709 8,700 8,721 8,695 (1) Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release.

Selected Period End Balances (in thousands) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2019 2019 2019 2018 2018 ----------- ----------- ----------- ----------- ----------- Total Assets $ 1,146,994 $ 1,153,797 $ 1,140,521 $ 1,096,419 $ 1,086,299 Investment Securities and Restricted 70,320 76,373 77,904 80,395 91,296 Stock Total Loans 959,864 953,080 948,493 921,301 900,895 Allowance for Loan Losses (11,811 ) (11,684 ) (11,582 ) (11,398 ) (11,390 ) Goodwill and Other Intangible Assets 18,109 18,109 18,109 18,109 18,109 Total Deposits 963,297 972,592 959,655 917,354 905,745 Repurchase Agreements 15,084 14,162 15,185 19,402 22,153 FHLB and Other Borrowings 19,700 20,700 20,700 22,500 24,500 Subordinated Debt 9,951 9,942 9,932 9,923 9,914 Shareholders' Equity 123,372 121,416 119,156 116,498 113,891

Asset Quality Data (by Quarter) (dollars in thousands) Sept. June March Dec. Sept. 30, 30, 31, 31, 30, 2019 2019 2019 2018 2018 ------- ------- ------- ------- ------- Nonaccrual Loans $ 1,341 $ 1,346 $ 3,908 $ 1,390 $ 1,390 OREO 2,501 2,912 585 585 585 - ----- - ----- - ----- - ----- - ----- Total Non-Performing Assets 3,842 4,258 4,493 1,975 1,975 Troubled Debt Restructured Loans: Performing 5,025 4,969 6,726 6,842 5,678 Non-Performing 555 555 711 877 877 Non-Performing Loans to Total Loans 0.14 % 0.14 % 0.41 % 0.15 % 0.15 % Non-Performing Assets to Total Assets 0.33 % 0.37 % 0.39 % 0.18 % 0.18 % Allowance as a % of Loans 1.23 % 1.23 % 1.22 % 1.24 % 1.26 %

Capital Ratios September 30, 2019 December 31, 2018 ------------------------------------- CET 1 Tier 1 Tier 1 Total CET 1 Tier 1 Tier 1 Total Capital Capital Capital Capital Capital Capital Capital Capital to to Risk to to Risk to Risk to Risk to to Risk Risk Weighted Average Weighted Weighted Weighted Average Weighted Weighted Assets Assets Assets Assets Assets Assets Assets Ratio Ratio Ratio Ratio Ratio Assets Ratio Ratio Ratio -------- ------- -------- -------- -------- ------- -------- ---------- Two River Bancorp 10.41% 9.27% 10.41% 12.56% 10.14% 9.10% 10.14% 12.34% Two River Community Bank 11.30% 10.07% 11.30% 12.47% 11.09% 9.95% 11.09% 12.26% "Well capitalized" institution (under prompt corrective action 6.50% 5.00% 8.00% 10.00% 6.50% 5.00% 8.00% 10.00% regulations.)* *Applies to Bank only. For the Company to be “well capitalized” under the Federal Reserve definitions for bank holding companies, the Company is only required to have a Tier 1 Capital to Risk Weighted Assets ratio of at least 6.00% and a Total Capital to Risk Weighted Assets ratio of at least 10.00%.

Net Loan Charge-offs (dollars in thousands) Three Months Ended Nine Months Ended Sept. June March Dec. Sept. 30, Sept. Sept. 30, 30, 31, 31, 30, 30, 2019 2019 2019 2018 2018 2019 2018 ------ ------ ------- ------ --------- ------- ------- Net loan (charge-offs) recoveries: Charge-offs $ - $ - $ (247 ) $ - $ - $ (247 ) $ (127 ) Recoveries 2 2 6 8 39 10 74 - ---- - ---- - ----- - ---- - ------- - ----- - ----- Net loan (charge-offs) $ 2 $ 2 $ (241 ) $ 8 $ 39 $ (237 ) $ (53 ) recoveries - ---- - ---- - ----- - ---- - ------- - ----- - ----- Net loan (charge-offs) recoveries to average loans 0.00 % 0.00 % (0.10 )% 0.00 % 0.02 % (0.03 )% (0.01 )% (annualized)

Consolidated Average Balance Sheets & Yields With Resultant Interest and Average Rates Three Months Ended Three Months Ended (dollars in thousands) September 30, 2019 September 30, 2018 ----------------------------- ------------------------------ ASSETS Interest Average InAverage Average / Average / Balance Income Yield Balance InYield Interest-Earning Assets: Expense / Ex/ Rate Rate ----------- ------- ------ ----------- -------- Interest-bearing due from banks $ 46,051 $ 260 2.24 % $ 26,337 $ 132 1.99 % Investment securities 74,158 517 2.79 % 93,341 554 2.37 % Loans, net of unearned fees(1) (2) 955,354 11,707 4.86 % 896,999 10,656 4.71 % Total Interest-Earning Assets 1,075,563 12,484 4.60 % 1,016,677 11,342 4.43 % ----------- ------- ----------- -------- Non-Interest-Earning Assets: Allowance for loan losses (11,735 ) (11,341 ) All other assets 92,141 75,038 ----------- ----------- Total Assets $ 1,155,969 $ 1,080,374 - --------- - --------- LIABILITIES & SHAREHOLDERS' EQUITY Interest-Bearing Liabilities: NOW deposits $ 206,541 461 0.89 % $ 201,026 320 0.63 % Savings deposits 248,914 665 1.06 % 267,025 568 0.84 % Money market deposits 36,851 21 0.23 % 48,606 22 0.18 % Time deposits 304,869 1,834 2.39 % 213,872 1,014 1.88 % Securities sold under agreements to repurchase 13,451 10 0.30 % 18,389 14 0.30 % FHLB and other borrowings 19,763 99 1.99 % 27,870 136 1.94 % Subordinated debt 9,948 166 6.67 % 9,911 165 6.66 % ----------- ------- ----------- -------- Total Interest-Bearing Liabilities 840,337 3,256 1.54 % 786,699 2,239 1.13 % Non-Interest-Bearing Liabilities: Demand deposits 176,982 171,729 Other liabilities 16,006 9,314 ----------- ----------- Total Non-Interest-Bearing Liabilities 192,988 181,043 Stockholders’ Equity 122,644 112,632 ----------- ----------- Total Liabilities and Shareholders’ Equity $ 1,155,969 $ 1,080,374 - --------- - --------- NET INTEREST INCOME $ 9,228 $ 9,103 - ----- -- ----- NET INTEREST SPREAD(3) 3.06 % 3.30 % NET INTEREST MARGIN(4) 3.40 % 3.55 % (1) Included in interest income on loans are loan fees. (2) Includes non-performing loans. (3) The interest rate spread is the difference between the weighted average yield on average interest-earning and the weighted average cost of average interest-bearing liabilities. (4) The interest rate margin is calculated by dividing annualized net interest income by average interest earning assets.

Consolidated Average Balance Sheets & Yields With Resultant Interest and Average Rates Nine Months Ended Nine Months Ended (dollars in thousands) September 30, 2019 September 30, 2018 ------------------------------ ------------------------------- ASSETS Interest Average InAverage Average / Average / Balance Income Yield Balance InYield / Interest-Earning Assets: Expense / Ex Rate Rate ----------- -------- ------ ----------- --------- Interest-bearing due from banks $ 37,164 $ 663 2.39 % $ 21,923 $ 293 1.79 % Investment securities 76,925 1,619 2.81 % 95,574 1,703 2.38 % Loans, net of unearned fees(1) (2) 951,073 34,750 4.89 % 883,436 30,720 4.65 % ----------- -------- Total Interest-Earning Assets 1,065,162 37,032 4.65 % 1,000,933 32,716 4.37 % ----------- -------- ----------- --------- Non-Interest-Earning Assets: Allowance for loan losses (11,625 ) (11,097 ) All other assets 87,535 74,168 ----------- ----------- Total Assets $ 1,141,072 $ 1,064,004 - --------- - --------- LIABILITIES & SHAREHOLDERS' EQUITY Interest-Bearing Liabilities: NOW deposits $ 208,155 1,296 0.83 % $ 219,242 937 0.57 % Savings deposits 251,672 1,893 1.01 % 259,365 1,415 0.73 % Money market deposits 39,020 64 0.22 % 53,413 70 0.18 % Time deposits 285,112 4,917 2.31 % 190,520 2,501 1.76 % Securities sold under agreements to repurchase 14,101 30 0.28 % 19,734 43 0.29 % FHLB and other borrowings 22,040 332 2.01 % 26,862 382 1.90 % Subordinated debt 9,939 497 6.67 % 9,902 495 6.67 % ----------- -------- ----------- --------- Total Interest-Bearing Liabilities 830,039 9,029 1.45 % 779,038 5,843 1.00 % ----------- -------- ----------- --------- Non-Interest-Bearing Liabilities: Demand deposits 174,968 165,778 Other liabilities 15,883 9,094 ----------- ----------- Total Non-Interest-Bearing Liabilities 190,851 174,872 Shareholders’ Equity 120,182 110,094 ----------- ----------- Total Liabilities and Shareholders’ Equity $ 1,141,072 $ 1,064,004 - --------- - --------- NET INTEREST INCOME $ 28,003 $ 26,873 - ------ -- ------ NET INTEREST SPREAD(3) 3.20 % 3.37 % NET INTEREST MARGIN(4) 3.51 % 3.59 % (1) Included in interest income on loans are loan fees. (2) Includes non-performing loans. (3) The interest rate spread is the difference between the weighted average yield on average interest-earning and the weighted average cost of average interest-bearing liabilities. (4) The interest rate margin is calculated by dividing annualized net interest income by average interest earning assets.

Reconciliation of Non-GAAP Financial Measures

The press release contains certain financial information determined by methods other than in accordance with generally accepted accounting policies in the United States (GAAP). These non-GAAP financial measures are "book value per common share," "tangible book value per common share," "return on average tangible assets," and "return on average tangible equity." This non-GAAP disclosure has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Our management uses these non-GAAP measures in its analysis of our performance because it believes these measures are material and will be used as a measure of our performance by investors.

(in thousands, except per share data) As of and for the Three Months Ended As of and for the Nine Months Ended --------------------------------------------------------- --------------------- Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2019 2018 --------- --------- --------- --------- --------- --------- --------- Total shareholders' equity $ 123,372 $ 121,416 $ 119,156 $ 116,498 $ 113,891 $ 123,372 $ 113,891 Less: goodwill and other (18,109 ) (18,109 ) (18,109 ) (18,109 ) (18,109 ) (18,109 ) (18,109 ) tangibles - ------- - ------- - ------- - ------- - ------- - ------- - ------- Tangible common $ 105,263 $ 103,307 $ 101,047 $ 98,389 $ 95,782 $ 105,263 $ 95,782 shareholders’ equity Common shares outstanding 8,715 8,657 8,668 8,607 8,584 8,715 8,584 Book value per common $ 14.16 $ 14.03 $ 13.75 $ 13.54 $ 13.27 $ 14.16 $ 13.27 share Book value per common $ 14.16 $ 14.03 $ 13.75 $ 13.54 $ 13.27 $ 14.16 $ 13.27 share Effect of intangible (2.08 ) (2.10 ) (2.09 ) (2.11 ) (2.11 ) (2.08 ) (2.11 ) assets - ------- - ------- - ------- - ------- - ------- - ------- - ------- Tangible book value per $ 12.08 $ 11.93 $ 11.66 $ 11.43 $ 11.16 $ 12.08 $ 11.16 common share Return on average assets 0.73 % 1.07 % 1.01 % 1.10 % 1.04 % 0.93 % 1.03 % Effect of average 0.01 % 0.01 % 0.01 % 0.01 % 0.02 % 0.02 % 0.01 % intangible assets --------- --------- --------- --------- --------- --------- --------- Return on average tangible 0.74 % 1.08 % 1.02 % 1.11 % 1.06 % 0.95 % 1.04 % assets Return on average equity 6.84 % 10.18 % 9.59 % 10.52 % 9.98 % 8.84 % 9.91 % Effect of average 1.19 % 1.80 % 1.74 % 1.97 % 1.92 % 1.57 % 1.95 % intangible assets --------- --------- --------- --------- --------- --------- --------- Return on average tangible 8.03 % 11.98 % 11.33 % 12.49 % 11.90 % 10.41 % 11.86 % equity

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