2021 Annual Report

Subordinated Debentures On July 8, 2021, the Company issued $30.0 million of subordinated debentures at an initial fixed interest rate of 3.25%, which is payable semi-annually. Beginning on July 15, 2026, the interest rate converts to a variable interest rate, reset quarterly, equal to the three-month SOFR plus 2.52%, which is payable quarterly. The subordinated debentures mature on July 15, 2031. The subordinated debentures, net of issuance costs, were $29.4 million at December 31, 2021. On November 5, 2021, the Company completed an exchange of all of the subordinated debentures for substantially identical subordinated debentures registered under the Securities Act of 1933, in satisfaction of the Company’s obligations under a registration rights agreement entered into with the initial purchasers of the subordinated debentures. The subordinated debentures qualify for Tier 2 regulatory capital treatment at the Company level under applicable regulatory guidelines. For additional information, see “Note 11 – Subordinated Debentures” of the Company’s Consolidated Financial Statements included as part of this report. Contractual Obligations The following table presents supplemental information regarding total contractual obligations at December 31, 2021: Total Deposits Without a Stated Maturity. . . . . . . . . . . . . . . $ 2,414,652 $ — $ — $ — $ 2,414,652 Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,585 177,133 178,965 32,902 531,585 FHLB Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 22,500 20,000 — 42,500 Subordinated Debentures . . . . . . . . . . . . . . . . . . . . . . . — — — 93,750 93,750 Commitment to Fund Tax Credit Investments . . . . . . 407 — — — 407 Operating Lease Obligations . . . . . . . . . . . . . . . . . . . . 514 1,011 866 557 2,948 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,558,158 $ 200,644 $ 199,831 $ 127,209 $ 3,085,842 Operating lease obligations are in place for facilities and land on which banking branches are located. See Note 6 of the Company’s Consolidated Financial Statements included as part of this report for additional information. The Company believes that it will be able to meet all contractual obligations as they come due through the maintenance of adequate cash levels. The Company expects to maintain adequate cash levels through earnings, loan and securities repayments and maturity activity and continued deposit gathering activities. As described above, the Company has in place various borrowing mechanisms for both short-term and long-term liquidity needs. Capital On August 17, 2021, the Company announced the closing of its underwritten public offering of 2,400,000 depositary shares, each representing a 1/100 th interest in a share of the Company’s Series A Preferred Stock. On August 20, 2021, the underwriters of the offering exercised in full their option to purchase 360,000 additional depositary shares to cover over-allotments. As a result, the gross proceeds from the offering totaled $69.0 million. On January 27, 2022, the Company’s board of directors declared a quarterly cash dividend of $36.72 per share ($0.3672 per depositary share) on the Series A Preferred Stock, payable on March 1, 2022, to shareholders of record on the Series A Preferred Stock at the close of business on February 15, 2022. Shareholders’ equity at December 31, 2021, was $379.3 million, an increase of $113.9 million, or 42.9%, over shareholders’ equity of $265.4 million at December 31, 2020, primarily due to $44.5 million of net income retained, the net issuance of $66.5 million of preferred stock, and a $2.4 million increase in accumulated other comprehensive income. The increase in accumulated other comprehensive income primarily resulted from interest rate fluctuations between periods that impacted the fair values of the investment securities and derivatives portfolios. Within One to Three to After (dollars in thousands) One Year Three Years Five Years Five Years

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