2021 Annual Report

(2) Represents a non-GAAP financial measure. See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for further details. (3) Ratio excludes the amortization of tax credit investments, debt prepayment fees and represents a non-GAAP financial measure. See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for further details. (4) Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21% beginning in 2018 and 35% for 2017. (5) Nonperforming assets are defined as nonaccrual loans plus loans 90 days past due plus foreclosed assets. (6) ROA and ROE, excluding a one-time additional expense of $2.0 million related to the revaluation of the deferred tax asset, would have been 1.30% and 14.75%, respectively for the year ended December 31, 2017. (7) Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000. As of and for the year ended December 31, (dollars in thousands) 2021 2020 2019 2018 2017 Selected Balance Sheet Data Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,477,659 $ 2,927,345 $ 2,268,830 $ 1,973,741 $ 1,616,612 Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . 2,819,472 2,326,428 1,912,038 1,664,931 1,347,113 Allowance for Loan Losses . . . . . . . . . . . . . . 40,020 34,841 22,526 20,031 16,502 Securities Available for Sale . . . . . . . . . . . . . 439,362 390,629 289,877 253,378 229,491 Goodwill and Other Intangibles. . . . . . . . . . . 3,105 3,296 3,487 3,678 3,869 Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,946,237 2,501,636 1,823,310 1,560,934 1,339,350 Federal Funds Purchased . . . . . . . . . . . . . . . . — — — 18,000 23,000 FHLB Advances and Notes Payable . . . . . . . 42,500 68,500 149,500 139,000 85,000 24,527 Tangible Common Equity (1) . . . . . . . . . . . . . 309,653 262,109 241,307 217,320 133,293 Total Shareholders' Equity . . . . . . . . . . . . . . . 379,272 265,405 244,794 220,998 137,162 Average Total Assets . . . . . . . . . . . . . . . . . . . 3,189,800 2,617,579 2,114,211 1,777,592 1,451,732 Average Shareholders' Equity . . . . . . . . . . . . 316,237 258,736 232,539 194,083 128,123 (1) Represents a non-GAAP financial measure. See “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” for further details. Selected Income Statement Data Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 128,879 $ 114,826 $ 103,778 $ 85,226 66,346 Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,370 26,862 29,646 20,488 12,173 Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,509 87,964 74,132 64,738 54,173 Provision for Loan Losses . . . . . . . . . . . . . . . . . . . . . . . . . 5,150 12,750 2,700 3,575 4,175 Net Interest Income after Provision for Loan Losses . . 104,359 75,214 71,432 61,163 49,998 Noninterest Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,309 5,839 3,826 2,543 2,536 Noninterest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,095 45,387 36,932 31,562 25,496 Income Before Income Taxes . . . . . . . . . . . . . . . . . . . . . 61,573 35,666 38,326 32,144 27,038 Provision for Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . 15,886 8,472 6,923 5,224 10,149 Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,687 27,194 31,403 26,920 16,889 Preferred Stock Dividends . . . . . . . . . . . . . . . . . . . . . . 1,171 — — — — Net Income Available to Common Shareholders. . . . . . $ 44,516 $ 27,194 $ 31,403 $ 26,920 $ 16,889 Overview The Company is a financial holding company headquartered in St. Louis Park, Minnesota. The principal sources of funds for loans and investments are transaction, savings, time, and other deposits, and short-term and long- term borrowings. The Company’s principal sources of income are interest and fees collected on loans, interest and dividends earned on investment securities and service charges. The Company’s principal expenses are interest paid on deposit accounts and borrowings, employee compensation and other overhead expenses. The Company’s simple, efficient business model of providing responsive support and unconventional experiences to clients continues to be the underlying principle that drives the Company’s profitable growth. Subordinated Debentures, Net of Issuance Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,239 73,739 24,733 24,630 For the year ended December 31, (dollars in thousands) 2021 2020 2019 2018 2017

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