2021 Annual Report

As of and for the year ended December 31,

(dollars in thousands, except per share data)

2021

2020

2019

2018

2017

Per Common Share Data (1) Basic Earnings Per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Diluted Earnings Per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted Diluted Earnings Per Share (2) . . . . . . . . . . . . . . . . . . . . . . . . Book Value Per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tangible Book Value Per Share (2) . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.59 $

0.95 $

1.07 $

0.93 $

0.69 0.68 N/A 5.56

1.54 1.55 11.09 10.98

0.93 1.12 9.43 9.31

1.05 N/A 8.45 8.33

0.91 N/A 7.34 7.22

5.40 Basic Weighted Average Shares Outstanding . . . . . . . . . . . . . . . . . . . 28,027,454 28,582,064 29,358,644 29,001,393 24,604,464 Diluted Weighted Average Shares Outstanding . . . . . . . . . . . . . . . . . . 28,968,286 29,170,220 29,996,776 29,436,214 25,017,690 Shares Outstanding at Period End . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,206,566 28,143,493 28,973,572 30,097,274 24,679,861 Selected Performance Ratios Return on Average Assets (ROA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.43 % 1.04 % 1.49 % 1.51 % 1.16 % (6) Pre-Provision Net Revenue Return on Average Assets (PPNR ROA) (3) . 2.10 2.09 2.07 2.20 2.30 Return on Average Shareholders' Equity (ROE). . . . . . . . . . . . . . . . . . 14.45 10.51 13.50 13.87 13.18 (6) Return on Average Tangible Common Equity (2) . . . . . . . . . . . . . . . . . 15.45 10.65 13.72 14.15 13.60 Average Shareholders' Equity to Average Assets . . . . . . . . . . . . . . . . . 10.99 9.88 11.00 10.92 8.83 Yield on Interest Earning Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.16 4.51 5.01 4.88 4.76 Yield on Total Loans, Gross. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.60 4.90 5.31 5.23 5.10 Cost of Interest Bearing Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.93 1.53 2.03 1.65 1.19 Cost of Total Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.51 0.93 1.42 1.12 0.80 Net Interest Margin (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.54 3.46 3.59 3.72 3.92 Core Net Interest Margin (2)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.28 3.25 3.37 3.40 3.56 Efficiency Ratio (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.0 49.0 47.4 46.5 44.4 Adjusted Efficiency Ratio (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.0 40.5 43.3 41.7 41.1 Noninterest Expense to Average Assets. . . . . . . . . . . . . . . . . . . . . . . . 1.51 1.73 1.75 1.78 1.76 Adjusted Noninterest Expense to Average Assets (3) . . . . . . . . . . . . . . . 1.47 1.44 1.59 1.59 1.62 Loan to Deposit Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.7 93.0 104.9 106.7 100.6 Core Deposits to Total Deposits (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . 85.4 78.1 80.7 74.2 76.7 Tangible Common Equity to Tangible Assets (2) . . . . . . . . . . . . . . . . . 8.91 8.96 10.65 11.03 8.26 Selected Asset Quality Data Loans 30-89 Days Past Due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49 $ 13 $ 403 $ 311 $ 664 Loans 30-89 Days Past Due to Total Loans . . . . . . . . . . . . . . . . . . . . . — % — % 0.02 % 0.02 % 0.05 % Nonperforming Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 722 $ 775 $ 461 $ 581 $ 1,139 Nonperforming Loans to Total Loans . . . . . . . . . . . . . . . . . . . . . . . . . 0.03 % 0.03 % 0.02 % 0.03 % 0.08 % Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ — $ — $ 581 Nonaccrual Loans to Total Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.03 % 0.03 % 0.02 % 0.03 % 0.08 %

Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nonperforming Assets (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Nonperforming Assets to Total Assets (5) . . . . . . . . . . . . . . . . . . . . . . . Allowance for Loan Losses to Total Loans . . . . . . . . . . . . . . . . . . . . . Allowance for Loan Losses to Total Loans, Excluding PPP Loans. . . . . Allowance for Loans Losses to Nonaccrual Loans . . . . . . . . . . . . . . . . Net Loan Charge-Offs to Average Loans. . . . . . . . . . . . . . . . . . . . . . . Capital Ratios (Bank Only) Tier 1 Leverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Equity Tier 1 Risk-based Capital Ratio . . . . . . . . . . . . . . . . . Tier 1 Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital Ratios (Consolidated) Tier 1 Leverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Equity Tier 1 Risk-based Capital Ratio . . . . . . . . . . . . . . . . . Tier 1 Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Growth Ratios Percentage Change in Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . Percentage Change in Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . Percentage Change in Total Deposits . . . . . . . . . . . . . . . . . . . . . . . . . Percentage Change in Shareholders' Equity . . . . . . . . . . . . . . . . . . . . . Percentage Change in Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . Percentage Change in Diluted Earnings Per Share . . . . . . . . . . . . . . . . Percentage Change in Tangible Book Value Per Share (2) . . . . . . . . . . .

0.03

0.03

0.02

0.03

0.08 1,720

722 $

775 $

461 $

581 $

0.02 %

0.03 %

0.02 %

0.03 %

0.11 %

1.42 1.43

1.50 1.59

1.18 N/A

1.20 N/A

1.22 N/A

5,542.94 4,495.61 4,886.33 3,447.68

1,448.81

0.00

0.02

0.01

0.00

0.00

11.09 %

10.89 %

11.01 %

10.82 %

9.83 %

11.69 11.69 12.94

12.12 12.12 13.37

11.72 11.72 12.16

11.63 11.63 12.76

11.15 11.15 12.37

10.82 %

9.28 %

10.69 %

11.23 %

8.38 %

9.36 11.43 15.55

10.35 10.35 14.58

11.39 11.39 12.98

12.07 12.07 14.55

9.49 9.49 12.46

18.8 %

29.0 %

15.0 %

22.1 %

28.3 %

21.2 17.8 42.9 68.0 64.8 17.9

21.7 37.2 8.4

14.8 16.8 10.8 16.7 14.5 15.3

23.6 16.5 61.1 59.4 35.5 33.7

34.6 30.9 18.9 27.8 15.6

(13.4) (10.9) 11.8

19.3 (1) Includes shares of common stock and non-voting common stock. On October 25, 2018, the Company exchanged shares of common stock for all of the outstanding shares of non-voting common stock. Following the exchange, no shares of non-voting common stock were outstanding.

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