Document

St. Louis, Mo. July 25, 2022 – Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), said today upon the release of EFSC’s second quarter earnings, “Our execution propelled double-digit loan growth on an annualized basis, building on the strong foundation that was established in the first quarter. Loan growth was diversified across our business lines and reflects the strength of the targeted investments we have made. Our organic growth, coupled with our well-positioned balance sheet, accelerated operating revenue which resulted in a nearly 18% return on average tangible common equity3 for the quarter. I am proud of what we have accomplished so far this year, as it demonstrates the power of the franchise we have built and expanded upon in recent years.”

•Pre-provision net revenue1 (“PPNR”) - PPNR of $58.4 million in the second quarter 2022 increased $1.4 million and $10.9 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to an increase in net interest income, partially offset by a decline in noninterest income and an increase in noninterest expense, as further discussed in the following sections. The increase from the prior year quarter was primarily due to the positive contribution from the First Choice acquisition and expansion in net interest income from organic loan and deposit growth.

•Net interest income and net interest margin (“NIM”) - Net interest income of $109.6 million for the second quarter 2022 increased $8.4 million and $27.9 million from the linked and prior year quarters, respectively. NIM was 3.55% for the second quarter 2022, compared to 3.28% and 3.46% for the linked quarter and prior year quarter, respectively. Net interest income and NIM benefited from organic loan growth, a reallocation of excess liquidity into the investment portfolio and an increase in market interest rates.

•Noninterest income - Noninterest income of $14.2 million for the second quarter 2022 decreased $4.4 million and $2.0 million from the linked and prior year quarters, respectively. A decline in tax credit income from a seasonally strong first quarter and a decline in other income were the primary drivers of the linked quarter decrease. The decrease from the prior year quarter was primarily due to lower transactional income from private equity investments, a decrease in mortgage banking income and a decrease in gains on the sale of other real estate owned. These decreases were partially offset by deposit service charge income from the First Choice acquisition.

•Loans - Total loans increased $213.1 million from the linked quarter to $9.3 billion as of June 30, 2022. PPP loans declined $84.9 million to $49.2 million. Excluding PPP loans, loans grew $298.0 million, or 13%, on an annualized basis from the linked quarter. Loan growth in the quarter was well distributed across geographic markets and the specialty lending niches. Average loans totaled $9.1 billion for the quarter ended June 30, 2022, compared to $9.0 billion and $7.3 billion for the linked and prior year quarters, respectively.

•Asset quality - The allowance for credit losses to total loans was 1.52% at June 30, 2022, compared to 1.54% at March 31, 2022 and 1.77% at June 30, 2021. Nonperforming assets to total assets was 0.16% at June 30, 2022, compared to 0.17% and 0.44% at March 31, 2022 and June 30, 2021, respectively. A provision for credit losses of $0.7 million was recorded in the second quarter 2022 due to loan growth and changes in the macroeconomic forecasts, partially offset by an improvement in credit quality. Provision benefits of $4.1 million and $2.7 million were recorded in the linked and prior year quarters, respectively, primarily due to improvements in the macroeconomic forecasts.

•Deposits - Total deposits decreased $611.5 million from the linked quarter to $11.1 billion as of June 30, 2022. The decline in deposits was concentrated in interest-bearing demand and money market accounts that were not relationship-based and reflects a shift in our deposit mix aligned with our disciplined focus on relationship-based, lower-cost deposits. Average deposits totaled $11.5 billion for both quarters ended June 30, 2022 and March 31, 2022, compared to $8.6 billion for the prior year quarter. Noninterest-bearing deposit accounts represented 42.8% of total deposits, and the loan to deposit ratio was 83.6% at June 30, 2022.

•Capital - Total shareholders’ equity was $1.4 billion and the tangible common equity to tangible assets ratio4 was 7.8% at June 30, 2022, compared to 7.6% at March 31, 2022. Tangible common equity declined $24.4 million in the second quarter 2022, primarily due to a $49.2 million decrease in accumulated other comprehensive income driven mainly from a decrease in the fair value of the available-for-sale investment portfolio. The decrease in accumulated other comprehensive income was partially offset by the undistributed earnings in the second quarter 2022. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.0% and a total risk-based capital ratio of 13.1% as of June 30, 2022. The Company’s common equity tier 1 ratio and total risk-based capital ratio was 10.9% and 14.2%, respectively, at June 30, 2022.

The Company repurchased 349,383 shares totaling $15.9 million in the second quarter 2022 for an average price of $45.65 per share. The shares acquired in the second quarter 2022 complete the share repurchase plan authorized by the Board of Directors on April 29, 2021. On May 4, 2022, the Board of Directors approved a new plan that authorized the repurchase of up to 2,000,000 shares of common stock. No shares have been repurchased under the recently-approved plan. In June 2022, the Company retired 1,980,093 shares of treasury stock and returned them to authorized and unissued shares.

The Company’s Board of Directors approved a quarterly dividend of $0.23 per common share, payable on September 30, 2022 to shareholders of record as of September 15, 2022, an increase of $0.01, or 5%, compared to the second quarter 2022. The Board of Directors also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) June 15, 2022 to (but excluding) September 15, 2022. The dividend will be payable on September 15, 2022 to shareholders of record on August 31, 2022.


	Quarter ended
	June 30, 2022						March 31, 2022						June 30, 2021
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:



Loans*	$	9,109,131	$	102,328	4.51	%	$	9,005,875	$	96,301	4.34	%	$	7,306,471	$	79,162	4.35	%


Securities*	2,068,119		12,944		2.51		1,923,969		10,969		2.31		1,502,582		9,226		2.46
Interest-earning deposits	1,401,961		2,496		0.71		1,781,272		817		0.19		806,928		237		0.12
Total interest-earning assets	12,579,211		117,768		3.76		12,711,116		108,087		3.45		9,615,981		88,625		3.70




Noninterest-earning assets	949,263						902,887						665,363

Total assets	$	13,528,474					$	13,614,003					$	10,281,344

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	2,329,431	$	659	0.11	%	$	2,505,319	$	536	0.09	%	$	1,985,811	$	336	0.07	%
Money market accounts	2,767,595		2,270		0.33		2,872,302		1,460		0.21		2,344,871		988		0.17
Savings	854,860		70		0.03		817,431		66		0.03		718,193		52		0.03
Certificates of deposit	591,091		851		0.58		607,133		797		0.53		522,633		1,091		0.84
Total interest-bearing deposits	6,542,977		3,850		0.24		6,802,185		2,859		0.17		5,571,508		2,467		0.18
Subordinated debentures	155,092		2,257		5.84		154,959		2,220		5.81		203,849		2,847		5.60
FHLB advances	50,000		197		1.58		50,000		195		1.58		50,000		197		1.58
Securities sold under agreements to repurchase	202,536		41		0.08		262,252		60		0.09		209,062		58		0.11
Other borrowings	21,414		111		2.08		22,841		82		1.46		27,147		94		1.39
Total interest-bearing liabilities	6,972,019		6,456		0.37		7,292,237		5,416		0.30		6,061,566		5,663		0.37

Noninterest-bearing liabilities:
Demand deposits	4,987,455						4,692,027						3,008,703
Other liabilities	94,733						93,518						94,106
Total liabilities	12,054,207						12,077,782						9,164,375
Shareholders' equity	1,474,267						1,536,221						1,116,969
Total liabilities and shareholders' equity	$	13,528,474					$	13,614,003					$	10,281,344






Total net interest income			$	111,312					$	102,671					$	82,962
Net interest margin					3.55	%					3.28	%					3.46	%
* Non-taxable income is presented on a fully tax-equivalent basis using a 25.2% tax rate. The tax-equivalent adjustments were $1.7 million, $1.5 million, and $1.2 million for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively.

NIM, on a tax equivalent basis, was 3.55% in the second quarter 2022, an increase of 27 basis points from the linked quarter and an increase of nine basis points from the prior year quarter. The increase in NIM from the linked quarter was primarily due to higher yields on loans, investments and interest-earning deposits due to an increase in market interest rates, including a 125 basis point increase in the federal funds rate. The average loan yield was 4.51% in the second quarter 2022, an increase of 17 basis points from the linked quarter. The average loan yield increased due to the repricing of variable-rate loans and the origination of new loans at an average rate of 4.71% (as of June 30, 2022). Approximately 20% of the variable-rate loan portfolio reprices on the first day of each quarter and did not increase with the current quarter’s rate movement, but these loan rates will reset early in the third quarter. The average investment yield was 2.51%, an increase of 20 basis points from the linked quarter. The investment yield increased due to the purchase of new investments at higher yields due to the expansion of the investment portfolio and the reinvestment of cash flows. Investments purchased in the second quarter 2022 had a tax equivalent average yield of 2.99%.

The effective federal funds rate for the second quarter 2022 was 76 basis points, an increase of 64 basis points, compared to the linked quarter and a 69 basis point increase over the prior year quarter. Concurrently, the Company’s earning asset yield increased 31 basis points, while the interest-bearing liability yield increased seven basis points, compared to the linked quarter. The total cost of deposits, including noninterest-bearing demand accounts, increased three basis points during the second quarter 2022.

Net interest income for the second quarter was $109.6 million, an increase of $8.4 million from the linked quarter, and an increase of $27.9 million from the prior year period. The increase in net interest income from the linked quarter was primarily due to an increase in the earning asset yield due to an increase in interest rates that was further enhanced by a stronger earning asset mix. The Company continued to redeploy part of its excess liquidity into the investment portfolio during the second quarter, increasing investments $244.2 million, when excluding mark-to-market fluctuations. Net interest income was also impacted by a decline in PPP income, a decline in interest-earning deposit accounts and the related interest income, and an increase in interest expense.


	Quarter ended
										September 30, 2021
($ in thousands)	June 30, 2022			March 31, 2022			December 31, 2021			FCBPa		Legacy EFSCa		Consolidated			June 30, 2021
C&I	$	1,702,081		$	1,498,151		$	1,538,155		$	242,740	$	1,215,338	$	1,458,078		$	1,116,229
CRE investor owned	1,977,806			1,982,645			1,955,087			553,490		1,381,794		1,935,284			1,467,243
CRE owner occupied	1,118,895			1,138,106			1,112,463			301,929		861,307		1,163,236			789,220
SBA loans*	1,284,279			1,249,929			1,241,449			160,833		1,038,925		1,199,758			1,010,727
Sponsor finance*	647,180			641,476			508,469			—		454,431		454,431			463,744
Life insurance premium financing*	688,035			636,096			593,562			—		572,492		572,492			564,366
Tax credits*	550,662			518,020			486,881			—		462,168		462,168			423,258
SBA PPP loans	49,175			134,084			271,958			206,284		232,675		438,959			396,660
Residential real estate	391,867			410,173			430,985			226,321		293,538		519,859			302,007
Construction and land development	626,577			610,830			625,526			219,600		432,627		652,227			467,586
Other	232,619			236,563			253,107			32,547		227,544		260,091			225,227
Total loans	$	9,269,176		$	9,056,073		$	9,017,642		$	1,943,744	$	7,172,839	$	9,116,583		$	7,226,267

Total loan yield	4.51		%	4.34		%	4.32		%					4.32		%	4.35		%

Variable interest rate loans to total loans	64		%	63		%	63		%					63		%	60		%


*Specialty loan category
a Amounts reported are as of September 30, 2021 and are separately shown attributable to the FCBP loan portfolio acquired on July 21, 2021, and the Company’s pre-FCBP acquisition loan portfolio.

Loans totaled $9.3 billion at June 30, 2022, increasing $213.1 million, compared to the linked quarter. PPP loans declined $84.9 million in the second quarter 2022 to $49.2 million from continued loan forgiveness by the Small Business Administration (“SBA”). Excluding PPP loans, loans grew $298.0 million, or 13% on an annualized basis, from the linked quarter. The increase was driven by the specialty lending categories noted in the table above, increasing $124.6 million, as well as growth in nearly all geographic markets in the second quarter 2022. Average line utilization was approximately 44% for the quarter ended June 30, 2022, compared to 40% and 39% for the linked and prior year quarters, respectively. This trend added approximately $152 million to loans outstanding during the current quarter.


	Quarter ended
($ in thousands)	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
Nonperforming loans*	$	19,560		$	21,160		$	28,024		$	41,554		$	42,252
Other real estate	955			1,459			3,493			3,493			3,612
Nonperforming assets*	$	20,515		$	22,619		$	31,517		$	45,047		$	45,864

Nonperforming loans to total loans	0.21		%	0.23		%	0.31		%	0.46		%	0.58		%
Nonperforming assets to total assets	0.16		%	0.17		%	0.23		%	0.35		%	0.44		%
Allowance for credit losses to total loans	1.52		%	1.54		%	1.61		%	1.67		%	1.77		%
Net charge-offs (recoveries)	$	(175)		$	1,521		$	3,263		$	1,850		$	869

*Guaranteed balances excluded	$	6,063		$	3,954		$	6,481		$	5,109		$	3,930

Nonperforming assets declined $2.1 million during the second quarter 2022 and $25.3 million from the prior year quarter. During the second quarter the Company experienced one basis point of net recoveries relative to average loans, compared to seven basis points of net charge-offs in the linked quarter and five basis points of net charge-offs in the prior year quarter. The Company recorded a provision for credit losses of $0.7 million for the second quarter 2022, compared to a benefit of $4.1 million for the linked quarter and a benefit of $2.7 million for the prior year quarter. Allowance for credit losses to total loans was 1.52% at June 30, 2022, a decrease of two basis points from the linked quarter. This trend was due to continued improvement in asset quality and net recovery activity, while loan growth and a decline in forecasted macroeconomic factors warranted additions to the allowance for credit losses.


	Quarter ended
										September 30, 2021
($ in thousands)	June 30, 2022			March 31, 2022			December 31, 2021			FCBPa			Legacy EFSCa			Consolidated			June 30, 2021
Noninterest-bearing demand accounts	$	4,746,478		$	4,881,043		$	4,578,436		$	1,041,622		$	3,334,091		$	4,375,713		$	3,111,581
Interest-bearing demand accounts	2,197,957			2,547,482			2,465,884			317,301			1,936,338			2,253,639			2,013,129
Money market and savings accounts	3,562,982			3,678,135			3,691,186			370,179			3,201,073			3,571,252			3,000,460
Brokered certificates of deposit	129,064			129,017			128,970			78,714			50,209			128,923			50,209
Other certificates of deposit	456,137			468,458			479,323			51,832			446,416			498,248			464,125
Total deposit portfolio	$	11,092,618		$	11,704,135		$	11,343,799		$	1,859,648		$	8,968,127		$	10,827,775		$	8,639,504

Noninterest-bearing deposits to total deposits	42.8		%	41.7		%	40.4		%	56.0		%	37.2		%	40.4		%	36.0		%
aAmounts reported are as of September 30, 2021 and are shown separately attributable to the FCBP deposit portfolio acquired on July 21, 2021, and the Company’s pre-FCBP acquisition deposit portfolio.

Total deposits at June 30, 2022 were $11.1 billion, a decrease of $611.5 million from March 31, 2022, and an increase of $2.5 billion from June 30, 2021. Noninterest-bearing deposits declined $134.6 million from the linked quarter due primarily to managing out one large client in the deposit specialty portfolio that was partially mitigated by growth from other client activity. The $464.7 million decrease in interest-bearing demand and money market accounts from the linked quarter was primarily due to the managed run-off of certain interest-rate sensitive, large balance accounts and reflects a shift in our deposit mix aligned with our disciplined focus on relationship-based, lower-cost deposits. These customers were single service customers and were not part of broader banking relationships. The increase compared to the prior year is due to the First Choice acquisition coupled with organic growth.


	Linked quarter comparison								Prior year comparison
	Quarter ended								Quarter ended
($ in thousands)	June 30, 2022		March 31, 2022		Increase (decrease)				June 30, 2021		Increase (decrease)
Deposit service charges	$	4,749	$	4,163	$	586	14	%	$	3,862	$	887	23	%
Wealth management revenue	2,533		2,622		(89)		(3)	%	2,516		17		1	%
Card services revenue	3,514		3,040		474		16	%	2,975		539		18	%
Tax credit income	1,186		2,608		(1,422)		(55)	%	1,370		(184)		(13)	%

Other income	2,212		6,208		(3,996)		(64)	%	5,481		(3,269)		(60)	%

Total noninterest income	$	14,194	$	18,641	$	(4,447)	(24)	%	$	16,204	$	(2,010)	(12)	%


	Linked quarter comparison								Prior year comparison
	Quarter ended								Quarter ended
($ in thousands)	June 30, 2022		March 31, 2022		Increase (decrease)				June 30, 2021		Increase (decrease)
BOLI	$	748	$	1,034	$	(286)	(28)	%	$	728	$	20	3	%
Community development investments	193		2,166		(1,973)		(91)	%	147		46		31	%
Mortgage banking	43		294		(251)		(85)	%	773		(730)		(94)	%
Private equity fund distribution	240		188		52		28	%	2,015		(1,775)		(88)	%
Servicing fees	165		658		(493)		(75)	%	476		(311)		(65)	%
Swap fees	102		1,156		(1,054)		(91)	%	21		81		386	%
Miscellaneous income	721		712		9		1	%	1,321		(600)		(45)	%

Total other income	$	2,212	$	6,208	$	(3,996)	(64)	%	$	5,481	$	(3,269)	(60)	%

Other income in the linked quarter included $2.2 million of fees from community development investments and $1.2 million of swap income, compared to $0.3 million in the second quarter 2022 in these categories. The decrease from the prior year quarter was primarily due to a decline in transactional private equity distributions and a decline in mortgage banking revenue. These decreases were partially offset by First Choice noninterest income that contributed to the increase in deposit service charges on a year-over-year basis.


	Linked quarter comparison								Prior year comparison
	Quarter ended								Quarter ended
($ in thousands)	June 30, 2022		March 31, 2022		Increase (decrease)				June 30, 2021		Increase (decrease)
Employee compensation and benefits	$	36,028	$	35,827	$	201	1	%	$	28,132	$	7,896	28	%
Occupancy	4,309		4,586		(277)		(6)	%	3,529		780		22	%

Merger-related expenses	—		—		—		—	%	1,949		(1,949)		(100)	%

Other expense	25,087		22,387		2,700		12	%	18,846		6,241		33	%

Total noninterest expense	$	65,424	$	62,800	$	2,624	4	%	$	52,456	$	12,968	25	%

Noninterest expense was $65.4 million for the second quarter 2022, compared to $62.8 million for the linked quarter, and $52.5 million for the prior year quarter. Employee compensation and benefits increased $0.2 million from the linked quarter, which included a $1.2 million increase in ongoing compensation expense that was offset by a $1.2 million decline in payroll taxes. The compensation trend in the linked quarter was primarily driven by performance-based incentive accruals. Other expense increased $2.7 million from the linked quarter primarily due to a $1.6 million increase in deposit costs and a $0.8 million increase in loan and legal expenses due to growth in the loan portfolio. The increase from the prior year quarter was primarily due to the First Choice acquisition, merit increases provided to employees throughout 2021 and 2022 and an increase in deposit costs due to higher average balances and interest-rate trends.

Total equity was $1.4 billion at June 30, 2022, a decrease of $25.8 million from the linked quarter. The decrease from the linked quarter was primarily due to a $49.2 million decline in accumulated other comprehensive income, $15.9 million in share repurchases, and $9.1 million in common and preferred dividends. These decreases were partially offset by current period net income of $45.1 million. The decline in accumulated other comprehensive income was due to a net fair value decline in the Company’s fixed-rate, available-for-sale investment portfolio from an increase in interest rates during the period. The Company’s tangible common book value per share was $26.63 at June 30, 2022, compared to $27.06 and $26.85 in the linked and prior year quarters, respectively.

The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, PPNR, PPNR return on average assets (“PPNR ROAA”), financial metrics adjusted for PPP impact, core efficiency ratio, and the tangible common equity ratio, in this release that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

The Company considers its tangible common equity, PPNR, PPNR ROAA, financial metrics adjusted for PPP impact, core efficiency ratio, and the tangible common equity ratio, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as merger-related expenses, facilities charges, and the gain or loss on sale of investment securities, the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a

The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.

The Company will host a conference call and webcast at 10:00 a.m. Central Time on Tuesday, July 26, 2022. During the call, management will review the second quarter 2022 results and related matters. This press release as well as a related slide presentation will be accessible on the Company’s website at www.enterprisebank.com under “Investor Relations” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-888-550-5279 (Conference ID #7004515). A recorded replay of the conference call will be available on the website approximately two hours after the call’s completion. Visit https://bit.ly/EFSC2Q2022 and register to receive a dial in number, passcode, and pin number. The replay will be available for approximately two weeks following the conference call.

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $13.1 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona, California, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.

Readers should note that, in addition to the historical information contained herein, this press release contains “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, shareholder value creation and the impact of the First Choice acquisition and other acquisitions.

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that

any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions, including the First Choice acquisition, into its operations, retain the customers of these businesses and grow the acquired operations, as well as credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts, U.S. fiscal debt, budget and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase out of LIBOR, natural disasters, terrorist activities, war and geopolitical matters (including the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, including the COVID-19 pandemic, and their effects on economic and business environments in which we operate, including the ongoing disruption to the financial market and other economic activity caused by the continuing COVID-19 pandemic, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.


	Quarter ended															Six months ended
(in thousands, except per share data)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
EARNINGS SUMMARY
Net interest income	$	109,613		$	101,165		$	102,060		$	97,273		$	81,738		$	210,778		$	160,861
Provision (benefit) for credit losses	658			(4,068)			(3,660)			19,668			(2,669)			(3,410)			(2,623)
Noninterest income	14,194			18,641			22,630			17,619			16,204			32,835			27,494
Noninterest expense	65,424			62,800			63,694			76,885			52,456			128,224			105,340
Income before income tax expense	57,725			61,074			64,656			18,339			48,155			118,799			85,638
Income tax expense	12,576			13,381			13,845			4,426			9,750			25,957			17,307
Net income	45,149			47,693			50,811			13,913			38,405			92,842			68,331
Preferred stock dividends	938			1,229			—			—			—			2,167			—
Net income available to common shareholders	$	44,211		$	46,464		$	50,811		$	13,913		$	38,405		$	90,675		$	68,331

Diluted earnings per common share	$	1.19		$	1.23		$	1.33		$	0.38		$	1.23		$	2.41		$	2.18
Return on average assets	1.34		%	1.42		%	1.52		%	0.45		%	1.50		%	1.38		%	1.36		%
Return on average common equity	12.65		%	12.87		%	13.81		%	3.96		%	13.79		%	12.76		%	12.45		%
Return on average tangible common equity1	17.44		%	17.49		%	18.81		%	5.37		%	18.44		%	17.46		%	16.71		%
Net interest margin (tax equivalent)	3.55		%	3.28		%	3.32		%	3.40		%	3.46		%	3.41		%	3.48		%

Efficiency ratio	52.84		%	52.42		%	51.08		%	66.92		%	53.56		%	52.63		%	55.93		%
Core efficiency ratio1	52.81		%	52.43		%	49.22		%	51.30		%	51.86		%	52.62		%	53.38		%

Loans	$	9,269,176		$	9,056,073		$	9,017,642		$	9,116,583		$	7,226,267
Average loans	$	9,109,131		$	9,005,875		$	9,030,982		$	8,666,353		$	7,306,471		$	9,057,788		$	7,249,938
Assets	$	13,084,506		$	13,706,769		$	13,537,358		$	12,888,016		$	10,346,993
Average assets	$	13,528,474		$	13,614,003		$	13,267,193		$	12,334,558		$	10,281,344		$	13,571,002		$	10,111,641
Deposits	$	11,092,618		$	11,704,135		$	11,343,799		$	10,827,775		$	8,639,504
Average deposits	$	11,530,432		$	11,494,212		$	11,167,003		$	10,297,153		$	8,580,211		$	11,512,422		$	8,394,825
Period end common shares outstanding	37,206			37,516			37,820			38,372			31,185
Dividends per common share	$	0.22		$	0.21		$	0.20		$	0.19		$	0.18		$	0.43		$	0.36
Tangible book value per common share	$	26.63		$	27.06		$	28.28		$	27.38		$	26.85
Tangible common equity to tangible assets1	7.80		%	7.62		%	8.13		%	8.40		%	8.32		%
Total risk-based capital to risk-weighted assets	14.2		%	14.4		%	14.7		%	14.5		%	14.9		%

1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.


	Quarter ended										Six months ended
($ in thousands, except per share data)	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
INCOME STATEMENTS
NET INTEREST INCOME
Interest income	$	116,069	$	106,581	$	107,641	$	103,228	$	87,401	$	222,650	$	172,361
Interest expense	6,456		5,416		5,581		5,955		5,663		11,872		11,500
Net interest income	109,613		101,165		102,060		97,273		81,738		210,778		160,861
Provision (benefit) for credit losses	658		(4,068)		(3,660)		19,668		(2,669)		(3,410)		(2,623)
Net interest income after provision for credit losses	108,955		105,233		105,720		77,605		84,407		214,188		163,484

NONINTEREST INCOME
Deposit service charges	4,749		4,163		3,962		4,520		3,862		8,912		6,946
Wealth management revenue	2,533		2,622		2,687		2,573		2,516		5,155		4,999
Card services revenue	3,514		3,040		3,223		3,186		2,975		6,554		5,471
Tax credit income	1,186		2,608		4,374		3,325		1,370		3,794		329




Other income	2,212		6,208		8,384		4,015		5,481		8,420		9,749
Total noninterest income	14,194		18,641		22,630		17,619		16,204		32,835		27,494

NONINTEREST EXPENSE
Employee compensation and benefits	36,028		35,827		33,488		33,722		28,132		71,855		57,694
Occupancy	4,309		4,586		4,510		4,496		3,529		8,895		7,280
Branch closure expenses	—		—		—		3,441		—		—		—
Merger-related expenses	—		—		2,320		14,671		1,949		—		5,091



Other expense	25,087		22,387		23,376		20,555		18,846		47,474		35,275
Total noninterest expense	65,424		62,800		63,694		76,885		52,456		128,224		105,340

Income before income tax expense	57,725		61,074		64,656		18,339		48,155		118,799		85,638
Income tax expense	12,576		13,381		13,845		4,426		9,750		25,957		17,307
Net income	$	45,149	$	47,693	$	50,811	$	13,913	$	38,405	$	92,842	$	68,331
Preferred stock dividends	938		1,229		—		—		—		2,167		—
Net income available to common shareholders	$	44,211	$	46,464	$	50,811	$	13,913	$	38,405	$	90,675	$	68,331

Basic earnings per common share	$	1.19	$	1.23	$	1.33	$	0.38	$	1.23	$	2.42	$	2.19
Diluted earnings per common share	$	1.19	$	1.23	$	1.33	$	0.38	$	1.23	$	2.41	$	2.18


	Quarter ended
($ in thousands)	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021
BALANCE SHEETS

ASSETS
Cash and due from banks	$	271,763	$	252,706	$	209,177	$	179,826	$	126,789
Interest-earning deposits	680,343		1,735,708		1,819,508		1,216,470		889,960
Debt and equity investments	2,172,318		1,993,927		1,855,583		1,717,442		1,585,847
Loans held for sale	4,615		4,270		6,389		5,068		5,763

Loans	9,269,176		9,056,073		9,017,642		9,116,583		7,226,267
Allowance for credit losses	(140,546)		(139,212)		(145,041)		(152,096)		(128,185)
Total loans, net	9,128,630		8,916,861		8,872,601		8,964,487		7,098,082


Fixed assets, net	46,028		46,900		47,915		48,697		50,972


Goodwill	365,164		365,164		365,164		365,415		260,567
Intangible assets, net	19,528		20,855		22,286		23,777		20,358
Other assets	396,117		370,378		338,735		366,834		308,655
Total assets	$	13,084,506	$	13,706,769	$	13,537,358	$	12,888,016	$	10,346,993

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	4,746,478	$	4,881,043	$	4,578,436	$	4,375,713	$	3,111,581
Interest-bearing deposits	6,346,140		6,823,092		6,765,363		6,452,062		5,527,923
Total deposits	11,092,618		11,704,135		11,343,799		10,827,775		8,639,504
Subordinated debentures	155,164		155,031		154,899		204,103		203,940
FHLB advances	50,000		50,000		50,000		50,000		50,000

Other borrowings	226,695		228,846		353,863		243,770		234,509
Other liabilities	112,617		95,580		105,681		122,733		100,739
Total liabilities	11,637,094		12,233,592		12,008,242		11,448,381		9,228,692
Shareholders’ equity:
Preferred stock	71,988		71,988		71,988		—		—
Common stock	372		395		398		404		330
Treasury stock	—		(73,528)		(73,528)		(73,528)		(73,528)
Additional paid-in capital	976,684		1,010,446		1,018,799		1,031,146		688,945
Retained earnings	506,849		523,136		492,682		461,711		474,282
Accumulated other comprehensive income (loss)	(108,481)		(59,260)		18,777		19,902		28,272
Total shareholders’ equity	1,447,412		1,473,177		1,529,116		1,439,635		1,118,301
Total liabilities and shareholders’ equity	$	13,084,506	$	13,706,769	$	13,537,358	$	12,888,016	$	10,346,993



	Six months ended
	June 30, 2022						June 30, 2021
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:



Loans*	$	9,057,788	$	198,629	4.42	%	$	7,249,938	$	156,234	4.35	%


Securities*	1,996,442		23,913		2.42		1,460,179		18,044		2.49
Interest-earning deposits	1,590,569		3,313		0.42		743,645		426		0.12
Total interest-earning assets	12,644,799		225,855		3.60		9,453,762		174,704		3.73




Noninterest-earning assets	926,203						657,879

Total assets	$	13,571,002					$	10,111,641

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	2,416,889	$	1,194	0.10	%	$	1,936,707	$	664	0.07	%
Money market accounts	2,819,659		3,730		0.27		2,347,716		1,963		0.17
Savings	836,249		137		0.03		686,603		100		0.03
Certificates of deposit	599,067		1,648		0.55		529,860		2,403		0.91
Total interest-bearing deposits	6,671,864		6,709		0.20		5,500,886		5,130		0.19
Subordinated debentures	155,026		4,477		5.82		203,772		5,666		5.61
FHLB advances	50,000		392		1.58		50,000		392		1.58
Securities sold under agreements to repurchase	232,229		101		0.09		220,233		118		0.11
Other borrowings	22,123		193		1.76		27,894		194		1.40
Total interest-bearing liabilities	7,131,242		11,872		0.34		6,002,785		11,500		0.39

Noninterest-bearing liabilities:
Demand deposits	4,840,558						2,893,939
Other liabilities	94,129						108,135
Total liabilities	12,065,929						9,004,859
Shareholders' equity	1,505,073						1,106,782
Total liabilities and shareholders' equity	$	13,571,002					$	10,111,641






Total net interest income			$	213,983					$	163,204
Net interest margin					3.41	%					3.48	%
* Non-taxable income is presented on a fully tax-equivalent basis using a 25.2% tax rate. The tax-equivalent adjustments were $3.2 million and $2.3 million for the six months ended June 30, 2022 and 2021, respectively.


	Quarter ended
($ in thousands)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
LOAN PORTFOLIO
Commercial and industrial	$	3,596,701		$	3,398,723		$	3,392,375		$	3,379,171		$	2,930,805
Commercial real estate	4,294,375			4,278,138			4,176,928			4,179,712			3,200,748
Construction real estate	724,163			702,630			734,073			747,758			556,776
Residential real estate	413,727			432,639			454,052			542,690			305,497
Other	240,210			243,943			260,214			267,252			232,441
Total loans	$	9,269,176		$	9,056,073		$	9,017,642		$	9,116,583		$	7,226,267

DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts	$	4,746,478		$	4,881,043		$	4,578,436		$	4,375,713		$	3,111,581
Interest-bearing demand accounts	2,197,957			2,547,482			2,465,884			2,253,639			2,013,129
Money market and savings accounts	3,562,982			3,678,135			3,691,186			3,571,252			3,000,460
Brokered certificates of deposit	129,064			129,017			128,970			128,923			50,209
Other certificates of deposit	456,137			468,458			479,323			498,248			464,125
Total deposits	$	11,092,618		$	11,704,135		$	11,343,799		$	10,827,775		$	8,639,504

AVERAGE BALANCES


Loans	$	9,109,131		$	9,005,875		$	9,030,982		$	8,666,353		$	7,306,471

Debt and equity investments	2,068,119			1,923,969			1,753,159			1,594,938			1,502,582
Interest-earning assets	12,579,211			12,711,116			12,373,149			11,513,279			9,615,981
Assets	13,528,474			13,614,003			13,267,193			12,334,558			10,281,344
Deposits	11,530,432			11,494,212			11,167,003			10,297,153			8,580,211
Shareholders’ equity	1,474,267			1,536,221			1,495,396			1,394,096			1,116,969
Tangible common equity1	1,016,940			1,077,529			1,071,902			1,028,001			835,405

YIELDS (tax equivalent)


Loans	4.51		%	4.34		%	4.32		%	4.32		%	4.35		%
Debt and equity investments	2.51			2.31			2.30			2.38			2.46
Interest-earning assets	3.76			3.45			3.50			3.60			3.70
Interest-bearing deposits	0.24			0.17			0.17			0.17			0.18
Deposits	0.13			0.10			0.10			0.11			0.12
Subordinated debentures	5.84			5.81			5.64			5.55			5.60
FHLB advances and other borrowed funds	0.51			0.41			0.43			0.43			0.49
Interest-bearing liabilities	0.37			0.30			0.31			0.35			0.37
Net interest margin	3.55			3.28			3.32			3.40			3.46


	Quarter ended
	Jun 30, 2022						Mar 31, 2022						Dec 31, 2021						Sep 30, 2021						Jun 30, 2021
Financial Metrics:	As Reported			Excluding PPP*			As Reported			Excluding PPP*			As Reported			Excluding PPP*			As Reported			Excluding PPP*			As Reported			Excluding PPP*
EPS	$	1.19		$	1.15		$	1.23		$	1.17		$	1.33		$	1.23		$	0.38		$	0.25		$	1.23		$	1.04
ROAA	1.34		%	1.31		%	1.42		%	1.38		%	1.52		%	1.45		%	0.45		%	0.31		%	1.50		%	1.35		%
PPNR ROAA*	1.73		%	1.70		%	1.70		%	1.64		%	1.89		%	1.80		%	1.81		%	1.68		%	1.85		%	1.65		%
Tangible common equity/tangible assets*	7.80		%	7.83		%	7.62		%	7.70		%	8.13		%	8.31		%	8.40		%	8.71		%	8.32		%	8.66		%
Leverage ratio	9.8		%	9.8		%	9.6		%	9.7		%	9.7		%	10.0		%	9.7		%	10.2		%	9.4		%	10.0		%
NIM	3.55		%	3.52		%	3.28		%	3.23		%	3.32		%	3.26		%	3.40		%	3.33		%	3.46		%	3.36		%
Allowance for credit losses/loans	1.52		%	1.69		%	1.54		%	1.73		%	1.61		%	1.84		%	1.67		%	1.94		%	1.77		%	2.09		%

* Non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables. Calculations not adjusted for increase in average deposits or increase in deposit expense, as applicable. The ratio of allowance for credit losses to loans excludes all guaranteed loans, including PPP loans.


	Quarter ended
(in thousands, except per share data)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
ASSET QUALITY
Net charge-offs (recoveries)	$	(175)		$	1,521		$	3,263		$	1,850		$	869
Nonperforming loans	19,560			21,160			28,024			41,554			42,252
Classified assets	96,801			93,199			100,797			104,220			100,063
Nonperforming loans to total loans	0.21		%	0.23		%	0.31		%	0.46		%	0.58		%
Nonperforming assets to total assets	0.16		%	0.17		%	0.23		%	0.35		%	0.44		%
Allowance for credit losses to total loans	1.52		%	1.54		%	1.61		%	1.67		%	1.77		%
Allowance for credit losses to nonperforming loans	718.5		%	657.9		%	517.6		%	366.0		%	303.4		%
Net charge-offs (recoveries) to average loans -annualized	(0.01)		%	0.07		%	0.14		%	0.08		%	0.05		%

WEALTH MANAGEMENT
Trust assets under management	$	1,757,228		$	1,943,428		$	2,083,543		$	2,017,178		$	1,945,293
Trust assets under administration	2,184,019			2,400,679			2,556,266			2,486,152			2,487,545

MARKET DATA
Book value per common share	$	36.97		$	37.35		$	38.53		$	37.52		$	35.86
Tangible book value per common share1	$	26.63		$	27.06		$	28.28		$	27.38		$	26.85
Market value per share	$	41.50		$	47.31		$	47.09		$	45.28		$	46.39
Period end common shares outstanding	37,206			37,516			37,820			38,372			31,185
Average basic common shares	37,243			37,788			38,228			36,878			31,265
Average diluted common shares	37,282			37,858			38,311			36,946			31,312

CAPITAL
Total risk-based capital to risk-weighted assets	14.2		%	14.4		%	14.7		%	14.5		%	14.9		%
Tier 1 capital to risk-weighted assets	12.5		%	12.7		%	13.0		%	12.2		%	12.3		%
Common equity tier 1 capital to risk-weighted assets	10.9		%	11.0		%	11.3		%	11.2		%	11.1		%
Tangible common equity to tangible assets1	7.8		%	7.6		%	8.1		%	8.4		%	8.3		%

1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.


	Quarter ended															Six months ended
($ in thousands)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
CORE PERFORMANCE MEASURES


Net interest income	$	109,613		$	101,165		$	102,060		$	97,273		$	81,738		$	210,778		$	160,861

Noninterest income	14,194			18,641			22,630			17,619			16,204			32,835			27,494




Less gain (loss) on sale of other real estate owned	(90)			19			—			335			549			(71)			549

Core noninterest income	14,284			18,622			22,630			17,284			15,655			32,906			26,945

Total core revenue	123,897			119,787			124,690			114,557			97,393			243,684			187,806

Noninterest expense	65,424			62,800			63,694			76,885			52,456			128,224			105,340





Less branch closure expenses	—			—			—			3,441			—			—			—
Less merger-related expenses	—			—			2,320			14,671			1,949			—			5,091

Core noninterest expense	65,424			62,800			61,374			58,773			50,507			128,224			100,249

Core efficiency ratio	52.81		%	52.43		%	49.22		%	51.30		%	51.86		%	52.62		%	53.38		%


	Quarter ended
($ in thousands)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021




















SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS
Shareholders’ equity	$	1,447,412		$	1,473,177		$	1,529,116		$	1,439,635		$	1,118,301
Less preferred stock	71,988			71,988			71,988			—			—
Less goodwill	365,164			365,164			365,164			365,415			260,567
Less intangible assets	19,528			20,855			22,286			23,777			20,358
Tangible common equity	$	990,732		$	1,015,170		$	1,069,678		$	1,050,443		$	837,376

Total assets	$	13,084,506		$	13,706,769		$	13,537,358		$	12,888,016		$	10,346,993
Less goodwill	365,164			365,164			365,164			365,415			260,567
Less intangible assets	19,528			20,855			22,286			23,777			20,358
Tangible assets	$	12,699,814		$	13,320,750		$	13,149,908		$	12,498,824		$	10,066,068

Tangible common equity to tangible assets	7.80		%	7.62		%	8.13		%	8.40		%	8.32		%


	Quarter Ended
($ in thousands)	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021
AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY
Average shareholder’s equity	$	1,474,267		$	1,536,221		$	1,116,969
Less average preferred stock	71,988			71,988			—
Less average goodwill	365,164			365,164			260,567
Less average intangible assets	20,175			21,540			20,997
Average tangible common equity	$	1,016,940		$	1,077,529		$	835,405

Net income available to common shareholders	$	44,211		$	46,464		$	38,405
Return on average tangible common equity	17.44		%	17.49		%	18.44		%


	Quarter ended															Six months ended
($ in thousands)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
CALCULATION OF PRE-PROVISION NET REVENUE
Net interest income	$	109,613		$	101,165		$	102,060		$	97,273		$	81,738		$	210,778		$	160,861
Noninterest income	14,194			18,641			22,630			17,619			16,204			32,835			27,494
Less noninterest expense	65,424			62,800			63,694			76,885			52,456			128,224			105,340
Branch closure expenses	—			—			—			3,441			—			—			—
Merger-related expenses	—			—			2,320			14,671			1,949			—			5,091
PPNR	$	58,383		$	57,006		$	63,316		$	56,119		$	47,435		$	115,389		$	88,106

Average assets	$	13,528,474		$	13,614,003		$	13,267,193		$	12,334,558		$	10,281,344		$	13,571,002		$	10,111,641
ROAA - GAAP net income	1.34		%	1.42		%	1.52		%	0.45		%	1.50		%	1.38		%	1.36		%
PPNR ROAA - PPNR	1.73		%	1.70		%	1.89		%	1.81		%	1.85		%	1.71		%	1.76		%


	Quarter Ended
($ in thousands, except per share data)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
IMPACT OF PAYCHECK PROTECTION PROGRAM
Net income - GAAP	$	45,149		$	47,693		$	50,811		$	13,913		$	38,405
PPP interest and fee income	(1,557)			(2,858)			(4,864)			(6,048)			(7,940)
Related tax effect	392			720			1,226			1,506			1,977
Adjusted net income - Non-GAAP	$	43,984		$	45,555		$	47,173		$	9,371		$	32,442
Preferred stock dividends	938			1,229			—			—			—
Adjusted net income available to common shareholders- Non-GAAP	$	43,046		$	44,326		$	47,173		$	9,371		$	32,442

Average diluted common shares	37,282			37,858			38,311			36,946			31,312
EPS - GAAP net income available to common shareholders	$	1.19		$	1.23		$	1.33		$	0.38		$	1.23
EPS - Adjusted net income available to common shareholders	$	1.15		$	1.17		$	1.23		$	0.25		$	1.04

Average Assets - GAAP	$	13,528,474		$	13,614,003		$	13,267,193		$	12,334,558		$	10,281,344
Average PPP loans, net	(89,152)			(194,382)			(365,295)			(489,104)			(664,375)
Adjusted average assets - Non-GAAP	$	13,439,322		$	13,419,621		$	12,901,898		$	11,845,454		$	9,616,969

ROAA - GAAP net income	1.34		%	1.42		%	1.52		%	0.45		%	1.50		%
ROAA - Adjusted net income, adjusted average assets	1.31		%	1.38		%	1.45		%	0.31		%	1.35		%

PPNR - Non-GAAP (see reconciliation above)	$	58,383		$	57,006		$	63,316		$	56,119		$	47,435
PPP interest and fee income	(1,557)			(2,858)			(4,864)			(6,048)			(7,940)
Adjusted PPNR - Non-GAAP	$	56,826		$	54,148		$	58,452		$	50,071		$	39,495

PPNR ROAA - PPNR	1.73		%	1.70		%	1.89		%	1.81		%	1.85		%
PPNR ROAA - adjusted PPNR, adjusted average assets	1.70		%	1.64		%	1.80		%	1.68		%	1.65		%

Tangible assets - Non-GAAP (see reconciliation above)	$	12,699,814		$	13,320,750		$	13,149,908		$	12,498,824		$	10,066,068
PPP loans outstanding, net	(49,175)			(134,084)			(271,958)			(438,959)			(396,660)
Adjusted tangible assets - Non-GAAP	$	12,650,639		$	13,186,666		$	12,877,950		$	12,059,865		$	9,669,408

Tangible common equity Non-GAAP (see reconciliation above)	$	990,732		$	1,015,170		$	1,069,678		$	1,050,443		$	837,376
Tangible common equity to tangible assets	7.80		%	7.62		%	8.13		%	8.40		%	8.32		%
Tangible common equity to tangible assets - adjusted tangible assets	7.83		%	7.70		%	8.31		%	8.71		%	8.66		%

Average assets for leverage ratio	$	13,265,790		$	13,273,520		$	12,915,944		$	11,972,171		$	10,021,240
Average PPP loans, net	(89,152)			(194,382)			(365,295)			(489,104)			(664,375)
Adjusted average assets for leverage ratio - Non-GAAP	$	13,176,638		$	13,079,138		$	12,550,649		$	11,483,067		$	9,356,865


Tier 1 capital	$	1,295,791		$	1,271,342		$	1,257,462		$	1,166,529		$	937,840
Leverage ratio	9.8		%	9.6		%	9.7		%	9.7		%	9.4		%
Leverage ratio - adjusted average assets for leverage ratio	9.8		%	9.7		%	10.0		%	10.2		%	10.0		%

Net interest income - tax equivalent	$	111,312		$	102,671		$	103,567		$	98,573		$	82,962
PPP interest and fee income	(1,557)			(2,858)			(4,864)			(6,048)			(7,940)
Adjusted net interest income - tax equivalent	$	109,755		$	99,813		$	98,703		$	92,525		$	75,022

Average earning assets - GAAP	$	12,579,211		$	12,711,116		$	12,373,149		$	11,513,279		$	9,615,981
Average PPP loans, net	(89,152)			(194,382)			(365,295)			(489,104)			(664,375)
Adjusted average earning assets - Non-GAAP	$	12,490,059		$	12,516,734		$	12,007,854		$	11,024,175		$	8,951,606

Net interest margin - tax equivalent	3.55		%	3.28		%	3.32		%	3.40		%	3.46		%
Net interest margin - tax equivalent - adjusted net interest income, adjusted average earning assets	3.52		%	3.23		%	3.26		%	3.33		%	3.36		%

Loans - GAAP	$	9,269,176		$	9,056,073		$	9,017,642		$	9,116,583		$	7,226,267
PPP and other guaranteed loans, net	(967,396)			(1,023,509)			(1,151,895)			(1,277,452)			(1,106,414)
Adjusted loans - Non-GAAP	$	8,301,780		$	8,032,564		$	7,865,747		$	7,839,131		$	6,119,853

Allowance for credit losses	$	140,546		$	139,212		$	145,041		$	152,096		$	128,185
Allowance for credit losses/loans - GAAP	1.52		%	1.54		%	1.61		%	1.67		%	1.77		%
Allowance for credit losses/loans - adjusted loans	1.69		%	1.73		%	1.84		%	1.94		%	2.09		%


	Quarter ended
Percent	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021
Total risk-based capital to risk-weighted assets	14.2	%	14.4	%	14.7	%	14.5	%	14.9	%
Tier 1 capital to risk weighted assets	12.5	%	12.7	%	13.0	%	12.2	%	12.3	%
Common equity tier 1 capital to risk-weighted assets	10.9	%	11.0	%	11.3	%	11.2	%	11.1	%
Tangible common equity to tangible assets	7.8	%	7.6	%	8.1	%	8.4	%	8.3	%
Leverage ratio	9.8	%	9.6	%	9.7	%	9.7	%	9.4	%