ALL CAP EQUITY MARKET COMMENTARY PORTFOLIO M ANAGER : MARK W YNEGAR SECOND Q UARTER 2021

Quarter Year To Date 1 Year 3 Years 5 Years Tributary Capital Management (Gross of Fees) 5.9% 14.1% 43.0% 15.3% 15.8% Tributary Capital Management (Net of Fees) 5.7% 13.8% 42.2% 14.7% 15.3% S&P 500 Index 8.6% 15.3% 40.8% 18.7% 17.7% Russell 3000 Index 8.2% 15.1% 44.2% 18.7% 17.9% Russell 3000 Value Index 5.2% 17.7% 45.4% 12.2% 12.0%

PORTFOLIO R EVIEW estimates for companies across the market capitalization spectrum. The economy has been buttressed by various The Russell 3000 benchmark rose +8.2% in the second stimulus packages worth nearly $6 trillion, historically quarter, slightly behind the S&P 500’s total return of low borrowing costs and high household savings rates. +8.6%. Small-cap companies, as measured by the Russell Additionally, effective vaccines have driven down the 2000 Index, rose +4.3% in the second quarter and the number and severity of COVID-19 cases, unleashing Russell Midcap Index gained +7.5%. The value side of consumers’ pent-up demand as they seek a return to the market underperformed growth this quarter, with the normalcy. Together these factors have helped small- and Russell 3000 Value rising +5.2%, while the Russell 3000 large-cap companies consistently exceed analysts’ earnings Growth rose +11.4%. The equal-weight S&P 500 rose expectations during the last several quarters; however, +6.9% in the quarter, indicating the average stock in the there may be more variability going forward. index rose less than the heavily weighted top holdings of the index.! The phaseout of some stimulus programs will impact revenues for many companies, making it more difficult The strongest performing sectors in the Russell 3000 Index to beat expectations. The third round of direct stimulus this quarter included energy (+13%), real estate (+12%), payments are coming to an end, and in an effort to information technology (+11%) and communication address the current labor shortage, twenty-two states have services (+11%). The weakest Russell 3000 sectors were withdrawn from the federal aid program that boosted utilities (0%), consumer staples (+4%), industrials (+4%) and extended unemployment payments. These reductions and materials (+5%).! in stimulus are likely to weigh on consumer demand. The Tributary All Cap Strategy’s total return of +5.9% However, the first child tax credit payments begin going fell short of both the Russell 3000 and S&P 500 in the out in mid-July, providing a partial offset. These changes second quarter. Relative returns were influenced by the combined with the shift in consumer demand from goods market’s skew toward growth in the quarter, as well as the to services may make it difficult for analysts and CEOs to underperformance of small and mid-cap stocks compared accurately assess demand over the coming months. to large cap companies. On an absolute basis, the Rising costs further muddy the water. During the second portfolio’s strongest returns this quarter were generated quarter, conference calls and forward guidance statements in the consumer discretionary (+12%), information increasingly cautioned that companies were facing higher technology (+8%) and healthcare (+7%) sectors. Consumer costs. Raw material prices have been pressing higher on discretionary outperformed the +7% return from the the back of resurgent demand following a year when comparative Russell 3000 sector, while technology and inventories, production volumes and staff were reduced healthcare underperformed their respective index sectors, due to the pandemic. Exacerbating the issue, supply which rose +11% and +8%. Industrials were a relative chain bottlenecks are leading to increased lead times and outperformer as well, rising +5%, compared to a +4% shortages of key components, causing some companies gain in the Russell 3000 industrials sector. The portfolio’s to switch over production lines more frequently, further weakest performing sectors were utilities (-2%), real increasing costs and lowering productivity. Snarled supply estate (+3%) and consumer staples (+3%). Utilities and chains and increased demand are also driving up freight consumer staples only modestly underperformed their costs. comparative sectors (Russell 3000 utilities were flat, consumer staples were up +4%), while real estate more Additionally, a shortage of labor is an issue affecting both significantly underperformed the benchmark sector’s +12% goods and services companies and is limiting businesses’ return. On a relative basis, the portfolio’s communication ability to meet surging customer demand. Manufacturers services sector (+5%) also underperformed its Russell 3000 are now competing with service industries for low-skilled counterpart (+11%).! workers in order to keep production lines running, putting upward pressure on wages and benefits. The fierce Over the last several quarters, projections for U.S. GDP battle for workers is increasing employee turnover across growth have steadily increased as have earnings growth

Tributary Capital Management, LLC Omaha, Nebraska | 877.458.0021 | www.tributarycapital.com ALL CAP EQUITY MARKET COMMENTARY PORTFOLIO M ANAGER : MARK W YNEGAR SECOND Q UARTER 2021 industries, a hidden employment cost. This complex set TOP D ETRACTORS of moving parts may make it more difficult for analysts to accurately assess near-term profitability for public Walt Disney Company declined due to recent subscriber companies, potentially increasing the number of companies additions for Disney+ coming in below consensus. Legacy missing analyst estimates and pressuring stock prices. Disney businesses continue to recover, but investor focus has been skewed towards the company’s streaming The specter of higher taxes continues to loom on the services as of late. horizon as well. If a higher corporate income tax rate is passed, it likely won’t be as high as the president’s Abbott Laboratories , a medical devices and diagnostics proposed 28% but higher than the current 21% rate, and company, reported results that fell short of expectations. it would pressure future earnings growth. Additionally, the COVID-19 testing has been an upside driver over the last president has proposed doubling the capital gains tax on few quarters and is beginning to show signs of slowing. those earning over $1 million a year. This could push high Littelfuse , a designer and manufacturer of circuit earners, who own a sizable swath of the market, to sell protection, power control and sensing products, reported shares prior to a change in taxation, potentially pressuring a strong quarter. Automotive and electronics segments share prices. experienced very strong year-over-year growth and margin We’re also tracking the spread of the highly transmissible improvement. Second quarter revenue and EPS were COVID-19 Delta variant, which is now the dominant strain ahead of consensus estimates. However, management in the U.S. Preliminary studies suggest that the vaccines discussed supply chain challenges and input cost approved for emergency use in the U.S. are effective in headwinds, which could impact profitability. Additionally, preventing severe illness and hospitalization against this it is likely that Littelfuse cannot sustain current growth variant. However, the risk remains that a variant emerges rates. with the ability to evade the immune response after IDACORP , an electric utility primarily serving Idaho, vaccination or that is more virulent, raising the rate of experienced a small decline in the quarter related to severe reactions and hospitalizations. generally weak performance from the Russell 3000 PORTFOLIO C HANGES utilities sector. Travelers , a commercial and personal lines property There were no changes made to the All Cap portfolio and casualty insurer, was essentially flat in the second during the second quarter. quarter, despite reporting better-than-expected earnings, TOP C ONTRIBUTORS a dividend increase, and an additional stock repurchase reported revenue and EPS above consensus program. expectations. All three business segments outperformed with cloud-computing revenue growth coming in at +50%. Guidance for revenue next quarter was also above consensus. Target generated extremely strong growth in same-store sales, with the company beating on revenue and EPS, and management indicated that it expects operating margins this year to be well ahead of consensus and higher than pre-pandemic levels. AMN Healthcare , a temporary hospital staffing services provider (nurses, doctors), had a strong quarter, helped by increased nursing demand, due to labor shortages and higher COVID-19 hospitalizations. Apple reported a blowout quarter relative to revenue and EPS consensus expectations. All product categories grew strong double-digits year-over-year, with iPhone sales the biggest source of upside. Alphabet , Google’s parent company, reported broad based upside in its results during the quarter, with nearly all segments coming in better than expected on the top- line.

Tributary Capital Management, LLC Omaha, Nebraska | 877.458.0021 | www.tributarycapital.com ALL CAP EQUITY MARKET COMMENTARY PORTFOLIO M ANAGER : MARK W YNEGAR SECOND Q UARTER 2021

1 Factset Research Systems  e performance numbers shown above are for the Tributary All Cap Equity Composite and are expressed in U.S. dollars.  e composite includes all discretionary accounts with an initial market value of $500,000 that are generally invested in the All Cap Equity Strategy.  e inception date of the All Cap Equity Composite is December 31, 2014.  e portfolio returns for periods other than those starting and ending with calendar month ends are generated using FactSet attribution software to approximate portfolio performance.  ey are not o cial composite returns.  ey are provided for illustrative purposes only and are presented gross of fees meaning they do not re‚ ect the impact of advisory fees which reduces performance returns. S&P 500 is a basket of 500 stocks that is weighted by market value, and its performance is thought to be representative of the stock market as a whole.  e Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.  e Russell 3000 Value Index measures the performance of the broad market value segment of the U.S. equity market.  e Russell 3000 Growth Index includes companies that display signs of above average growth.  e measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.  e S&P 500® Equal Weight Index (EWI) is the equal-weight version of the widely-used S&P 500.  e index includes the same constituents as the capitalization weighted S&P 500, but each company in the S&P 500 EWI is allocated a „ xed weight - or 0.2% of the index total at each quarterly rebalance.  e Russell Midcap Index measures performance of the 800 smallest companies in the . It is not possible to invest directly in the S&P 500, Russell 3000 Index, the Russell 2000 Index, the Russell 3000 Value Index, the Russell 3000 Growth Index, the S&P 500 Equal Weight Index or the Russell Midcap Index. Net-of-fees composite returns were calculated using the actual aggregate investment advisory fees applicable to portfolios within the composite. Net performance is reported net of investment advisory fees and transaction costs. Capital gains and dividends are reinvested for performance calculations. It should not be assumed that an investment in securities identi„ ed was or will be pro„ table or that the investment decisions we make in the future will be pro„ table or will equal the performance of the securities discussed herein. Holdings are subject to change.  e holdings identi„ ed do not represent all of the securities purchased, sold or recommended for the portfolio.  e holdings listed should not be considered recommendations to purchase or sell a particular security.  e “Top Contributors” and “Top Detractors” represented are based on contribution to portfolio return. To obtain the contribution calculation methodology and a complete list of every holding’s contribution to the overall portfolio’s performance during the quarter, please contact clientservices@ tributarycapital.com. Sector performance in commentary is stated gross of fees. Tributary, an SEC Registered Investment Adviser, is the combined entity of the prior Tributary (formed Jan. 1, 2005) and First Investment Group (formerly a department of First National Bank of Omaha) which merged in May 2010.Tributary is a wholly owned subsidiary of First National Bank, a wholly owned subsidiary of First National of Nebraska, Inc. and manages mutual funds and equity and balanced portfolios. Tributary Capital Management, LLC (“Tributary”) claims compliance with the Global Investment Performance Standards (GIPS®). A fully compliant presentation can be requested by emailing [email protected]. Comments are provided as general market commentary and should not be considered investment advice or predictive of any future market performance. Past performance does not guarantee future results. Investments: Are Not FDIC Insured • May Go Down in Value • Are Not a Deposit

Tributary Capital Management, LLC Omaha, Nebraska | 877.458.0021 | www.tributarycapital.com