2021 Annual Report

The Company believes these non-GAAP financial measures provide useful information to management and investors that is supplementary to the financial condition, results of operations and cash flows computed in accordance with GAAP; however, the Company acknowledges that these non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:

As of and for the year ended December 31,

(dollars in thousands)

2021

2020

2019

2018

2017

Pre-Provision Net Revenue Noninterest Income . . . . . . . . . . . . . . . . . . . . . . $ Less: (Gain) Loss on sales of Securities . . . . . . Total Operating Noninterest Income . . . . . . Plus: Net Interest income . . . . . . . . . . . . . . . . 109,509 (750) 4,559

5,309 $

5,839 $

3,826 $

2,543 $

2,536

(1,503) 4,336 87,964

(516)

125

250

3,310 74,132

2,668 64,738

2,786

54,173 Net Operating Revenue . . . . . . . . . . . . . . . . . . $ 114,068 $ 92,300 $ 77,442 $ 67,406 $ 56,959 Noninterest Expense . . . . . . . . . . . . . . . . . . . . . $ 48,095 $ 45,387 $ 36,932 $ 31,562 $ 25,496 Less: Amortization of Tax Credit Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . (562) (738) (3,225) (3,293) (1,916) Less: Debt Prepayment Fees . . . . . . . . . . . . . . . (582) (7,043) — — — Total Operating Noninterest Expense. . . . . . . . $ 46,951 $ 37,606 $ 33,707 $ 28,269 $ 23,580 Pre-Provision Net Revenue . . . . . . . . . . . . . . . $ 67,117 $ 54,694 $ 43,735 $ 39,137 $ 33,379 Plus: Non-Operating Revenue Adjustments . . . . . . . 750 1,503 516 (125) (250) Less: Provision for Loan Losses. . . . . . . . . . . . . . . . . 5,150 12,750 2,700 3,575 4,175 Non-Operating Expense Adjustments. . . . . . . . 1,144 7,781 3,225 3,293 1,916 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 Average Assets . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,189,800 $ 2,617,579 $ 2,114,211 $ 1,777,592 $ 1,451,732 Pre-Provision Net Revenue Return on Average Assets . . . . . . . . . . . . . . . . . . . . . . . . 2.10 % 2.09 % 2.07 % 2.20 % 2.30 %

As of and for the year ended December 31,

(dollars in thousands)

2021

2020

2019

2018

2017

Core Net Interest Margin Net Interest Income (Tax-Equivalent Basis) . Less: Loan Fees . . . . . . . . . . . . . . . . . . . . . . . . Less: PPP Interest and Fees. . . . . . . . . . . . . . .

$ 110,373 $ 88,883 $ 75,040 $ 65,752 $ 56,373

(5,173) (6,441)

(5,283) (4,143)

(4,562)

(5,654)

(5,076)

— — Core Net Interest Income . . . . . . . . . . . . . . $ 98,759 $ 79,457 $ 70,478 $ 60,098 $ 51,297 Average Interest Earning Assets . . . . . . . . . . . 3,115,883 2,565,859 2,091,198 1,766,492 1,439,489 Less: Average PPP Loans . . . . . . . . . . . . . . . . (103,151) (122,240) — — — Core Average Interest Earning Assets . . . . $ 3,012,732 $ 2,443,619 $ 2,091,198 $ 1,766,492 $ 1,439,489 Core Net Interest Margin . . . . . . . . . . . . . . 3.28 % 3.25 % 3.37 % 3.40 % 3.56 % —

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