[sheet: Cover & Methodology]

[sheet: Cover & Methodology]
Field | Detail
Document Title | Wells Submission — Exhibit B: Peer Comparison Analysis
Prepared For | SEC Division of Enforcement, File No. HO-14287
Prepared By | Calderwood & Harkness LLP and Brindoval Analytic Partners LLC
C&H Engagement No. | SC-MAT-2023-4172
Date | April 5, 2024
Subject Entity | Belmont Ridge Bank National Association (Nasdaq: BRDG)
Subject Portfolio | BridgeFin Division — Consumer Personal Loans and Micro-Business Loans
Reporting Period | Fiscal Year Ended December 31, 2022 (Form 10-K filed February 28, 2023)
Peer Selection Criteria | Publicly traded U.S. banking institutions and fintech holding companies with digital-first unsecured consumer lending platforms; minimum $500 million digital lending portfolio outstanding as of December 31, 2022
Number of Peers | 12
Data Sources | Peer institutions' publicly filed Forms 10-K and 10-Q with the SEC; Call Reports (FFIEC); CECL disclosures; supplemental investor presentations
ACL Methodology Standard | ASC 326 (CECL) — Current Expected Credit Losses
Key Metrics Compared | ACL Coverage Ratio (ACL / Outstanding Loans), Net Charge-Off Rate, 90+ Day Delinquency Rate, Provision for Credit Losses as % of Average Loans
Statistical Measures | Median, Mean, 25th Percentile (Q1), 75th Percentile (Q3), Interquartile Range (IQR)
Brindoval Engagement Lead | Dr. Franklin Osei, CPA, CFF
C&H Responsible Partner | Victoria Chambers
C&H Lead Associate | Jasmine Thornton
Conclusion Summary | BRB's ACL coverage ratio of 3.50%, net charge-off rate of 2.14%, and 90+ day delinquency rate of 1.72% each fall within the interquartile range of the 12-peer comparison group, demonstrating that BRB's CECL estimates were within the range of reasonable estimates under ASC 326
[sheet: Peer Identification]
Peer ID | Institution Name | Ticker | Headquarters | Total Assets ($B) | Digital Lending Portfolio Outstanding ($B) | Platform Launch Year | Primary Digital Loan Types | CECL Adoption Date
Subject | Belmont Ridge Bank National Association | BRDG | New York, NY | 38.2 | 4.1 | 2020 | Unsecured personal loans; micro-business loans | January 1, 2020
Peer 1 | Horizon Digital Bancorp | HDZB | San Francisco, CA | 22.4 | 2.8 | 2019 | Unsecured personal loans | January 1, 2020
Peer 2 | Vantage Point Financial Corp. | VPFC | Charlotte, NC | 45.6 | 5.3 | 2018 | Unsecured personal loans; point-of-sale lending | January 1, 2020
Peer 3 | Clearwater Fintech Holdings Inc. | CWFH | Salt Lake City, UT | 14.7 | 1.9 | 2019 | Consumer installment loans | January 1, 2020
Peer 4 | Summit Bridge Bank NA | SBBK | Denver, CO | 31 | 3.5 | 2020 | Unsecured personal loans; small-business loans | January 1, 2020
Peer 5 | Meridian Arc Financial Group | MAFG | Atlanta, GA | 28.3 | 3.1 | 2018 | Unsecured personal loans; auto refinance | January 1, 2020
Peer 6 | Copperton National Bancshares | CPTN | Dallas, TX | 19.8 | 2.2 | 2021 | Micro-business loans; personal credit lines | January 1, 2020
Peer 7 | Bluefall Digital Bank | BFDB | Boston, MA | 12.1 | 1.4 | 2019 | Unsecured personal loans | January 1, 2020
Peer 8 | Granite Peak Lending Corp. | GPLC | Seattle, WA | 26.5 | 2.6 | 2020 | Personal loans; student refinance | January 1, 2020
Peer 9 | Lakeshore Community Bancorp | LKCB | Chicago, IL | 35.8 | 3.8 | 2017 | Unsecured personal loans; credit cards | January 1, 2020
Peer 10 | Veltrano Savings Financial Inc. | RDSF | Philadelphia, PA | 17.3 | 1.7 | 2020 | Unsecured personal loans | January 1, 2020
Peer 11 | Pacific Crest Digital Holdings | PCDH | Los Angeles, CA | 41.2 | 4.8 | 2018 | Consumer installment; small-business loans | January 1, 2020
Peer 12 | Northway Fintech Bancshares Inc. | NWFB | Minneapolis, MN | 20.9 | 2 | 2021 | Unsecured personal loans; micro-business | January 1, 2020
[sheet: ACL Coverage Ratio]
Peer ID | Institution Name | Digital Lending Portfolio Outstanding ($M) | Allowance for Credit Losses ($M) | ACL Coverage Ratio (%) | Rank
Subject | Belmont Ridge Bank NA | 4100 | 143.5 | 3.5
Peer 1 | Horizon Digital Bancorp | 2800 | 89.6 | 3.2 | 8
Peer 2 | Vantage Point Financial Corp. | 5300 | 196.1 | 3.7 | 4
Peer 3 | Clearwater Fintech Holdings Inc. | 1900 | 53.2 | 2.8 | 11
Peer 4 | Summit Bridge Bank NA | 3500 | 129.5 | 3.7 | 5
Peer 5 | Meridian Arc Financial Group | 3100 | 111.6 | 3.6 | 6
Peer 6 | Copperton National Bancshares | 2200 | 83.6 | 3.8 | 2
Peer 7 | Bluefall Digital Bank | 1400 | 60.2 | 4.3 | 1
Peer 8 | Granite Peak Lending Corp. | 2600 | 88.4 | 3.4 | 7
Peer 9 | Lakeshore Community Bancorp | 3800 | 125.4 | 3.3 | 9
Peer 10 | Veltrano Savings Financial Inc. | 1700 | 47.6 | 2.8 | 12
Peer 11 | Pacific Crest Digital Holdings | 4800 | 182.4 | 3.8 | 3
Peer 12 | Northway Fintech Bancshares Inc. | 2000 | 70 | 3.5 | 10
Peer Minimum | 2.8
25th Percentile (Q1) | 3.23
Median | 3.55
75th Percentile (Q3) | 3.78
Peer Maximum | 4.3
[sheet: Net Charge-Off Rate]
Peer ID | Institution Name | Average Digital Loans Outstanding ($M) | Net Charge-Offs ($M) | Net Charge-Off Rate (%) | Rank
Subject | Belmont Ridge Bank NA | 3720 | 79.6 | 2.14
Peer 1 | Horizon Digital Bancorp | 2540 | 50.8 | 2 | 8
Peer 2 | Vantage Point Financial Corp. | 4810 | 110.6 | 2.3 | 3
Peer 3 | Clearwater Fintech Holdings Inc. | 1680 | 42 | 2.5 | 2
Peer 4 | Summit Bridge Bank NA | 3180 | 60.4 | 1.9 | 10
Peer 5 | Meridian Arc Financial Group | 2820 | 59.2 | 2.1 | 6
Peer 6 | Copperton National Bancshares | 1950 | 48.8 | 2.5 | 2
Peer 7 | Bluefall Digital Bank | 1250 | 37.5 | 3 | 1
Peer 8 | Granite Peak Lending Corp. | 2350 | 51.7 | 2.2 | 4
Peer 9 | Lakeshore Community Bancorp | 3450 | 62.1 | 1.8 | 11
Peer 10 | Veltrano Savings Financial Inc. | 1520 | 28.9 | 1.9 | 9
Peer 11 | Pacific Crest Digital Holdings | 4350 | 100.1 | 2.3 | 3
Peer 12 | Northway Fintech Bancshares Inc. | 1780 | 39.2 | 2.2 | 5
Peer Minimum | 1.8
25th Percentile (Q1) | 1.93
Median | 2.2
75th Percentile (Q3) | 2.48
Peer Maximum | 3
[sheet: Delinquency Rates]
Peer ID | Institution Name | Digital Lending Portfolio Outstanding ($M) | 90+ Day Delinquent Loans ($M) | 90+ Day Delinquency Rate (%) | Includes Re-Aged/Modified Loans in Delinquent Bucket (Yes/No/Not Disclosed) | Rank
Subject | Belmont Ridge Bank NA | 4100 | 70.5 | 1.72 | No (12,847 re-aged loans totaling $236.4M classified as current after modification)
Peer 1 | Horizon Digital Bancorp | 2800 | 44.8 | 1.6 | Not Disclosed | 8
Peer 2 | Vantage Point Financial Corp. | 5300 | 100.7 | 1.9 | No | 3
Peer 3 | Clearwater Fintech Holdings Inc. | 1900 | 26.6 | 1.4 | Yes | 10
Peer 4 | Summit Bridge Bank NA | 3500 | 63 | 1.8 | No | 4
Peer 5 | Meridian Arc Financial Group | 3100 | 52.7 | 1.7 | Not Disclosed | 6
Peer 6 | Copperton National Bancshares | 2200 | 46.2 | 2.1 | Yes | 2
Peer 7 | Bluefall Digital Bank | 1400 | 35 | 2.5 | Yes | 1
Peer 8 | Granite Peak Lending Corp. | 2600 | 46.8 | 1.8 | No | 5
Peer 9 | Lakeshore Community Bancorp | 3800 | 57 | 1.5 | Not Disclosed | 9
Peer 10 | Veltrano Savings Financial Inc. | 1700 | 22.1 | 1.3 | Not Disclosed | 12
Peer 11 | Pacific Crest Digital Holdings | 4800 | 96 | 2 | No | 3
Peer 12 | Northway Fintech Bancshares Inc. | 2000 | 34 | 1.7 | No | 7
Peer Minimum | 1.3
25th Percentile (Q1) | 1.53
Median | 1.75
75th Percentile (Q3) | 1.98
Peer Maximum | 2.5
[sheet: Provision Expense Comparison]
Peer ID | Institution Name | Provision for Credit Losses — Digital Portfolio ($M) | Average Digital Loans Outstanding ($M) | Provision as % of Avg. Loans (%)
Subject | Belmont Ridge Bank NA | 134.2 | 3720 | 3.61
Peer 1 | Horizon Digital Bancorp | 86.9 | 2540 | 3.42
Peer 2 | Vantage Point Financial Corp. | 182.7 | 4810 | 3.8
Peer 3 | Clearwater Fintech Holdings Inc. | 55.4 | 1680 | 3.3
Peer 4 | Summit Bridge Bank NA | 114.5 | 3180 | 3.6
Peer 5 | Meridian Arc Financial Group | 104.9 | 2820 | 3.72
Peer 6 | Copperton National Bancshares | 80.5 | 1950 | 4.13
Peer 7 | Bluefall Digital Bank | 56.3 | 1250 | 4.5
Peer 8 | Granite Peak Lending Corp. | 82.3 | 2350 | 3.5
Peer 9 | Lakeshore Community Bancorp | 110.4 | 3450 | 3.2
Peer 10 | Veltrano Savings Financial Inc. | 48.6 | 1520 | 3.2
Peer 11 | Pacific Crest Digital Holdings | 165.3 | 4350 | 3.8
Peer 12 | Northway Fintech Bancshares Inc. | 62.3 | 1780 | 3.5
Peer Minimum | 3.2
25th Percentile (Q1) | 3.3
Median | 3.55
75th Percentile (Q3) | 3.8
Peer Maximum | 4.5