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Denver, Colorado – January 26, 2023 – FirstSun Capital Bancorp (“FirstSun”) (OTCQX: FSUN) reported net income of $24.6 million for the fourth quarter of 2022 compared to net income of $8.8 million for the fourth quarter of 2021. Earnings per diluted share was $0.96 for the fourth quarter of 2022 compared to $0.47 for the fourth quarter of 2021. Earnings for the fourth quarter of 2021 were impacted by $0.9 million of merger costs, net of tax, or $0.05 per diluted share.

Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are very pleased with our strong results this quarter. Our net interest margin expanded again this quarter, loan growth was strong and overall credit quality remains stable. Our strong returns this quarter highlight our favorable balance sheet positioning and overall asset sensitivity. While this macro rate environment will most likely subside in the near future amidst changing economic conditions, we believe the strength of the Southwest and Mountain West markets that we operate in and our diversified business model will position us well for success in the future. In 2022, we delivered record earnings, we expanded our Texas presence with the acquisition of the Pioneer Bancshares business and we continued to grow our customer relationships. We are very grateful to our teams for all their hard work and commitment to our customers and the business this year.”

Average loans increased by $0.3 billion in the fourth quarter of 2022, compared to the prior quarter. Loan yield increased by 51 basis points to 5.46% in the fourth quarter of 2022, compared to the prior quarter, primarily due to the rising interest rate environment and its impact on variable rate loans in the loan portfolio and higher yields on new originations. Average deposits decreased $0.2 billion in the fourth quarter of 2022, compared to the prior quarter. Total cost of deposits increased by 32 basis points to 0.65% in the fourth quarter of 2022, compared to the prior quarter, primarily due to increased pricing on our deposit products as a result of the rising interest rate environment. Average FHLB borrowings increased $0.3 billion in the fourth quarter of 2022, compared to the prior quarter. The cost of FHLB borrowings increased by 190 basis points to 3.80% in the fourth quarter of 2022, compared to the prior quarter, primarily due to the rising interest rate environment.

Noninterest income totaled $18.6 million during the fourth quarter of 2022, a decrease of $6.3 million from the prior quarter. Mortgage banking income decreased $7.5 million during the fourth quarter of 2022, primarily due to an increase in the fair value of the mortgage servicing rights portfolio in the prior quarter as prepayments were forecasted to slow due to the rising interest rate environment, in addition to a decrease in net sale gains and fees from mortgage loan originations as the volume of mortgage loan sales decreased from the prior quarter. Total originations of mortgage loans held-for-sale decreased by $83.7 million, or 30.8%, in the fourth quarter of 2022 from the prior quarter. Other noninterest income increased $1.1 million during the fourth quarter of 2022, primarily due to an increase in loan syndication fees. Noninterest income as a percentage of total revenue totaled 20.3% in the fourth quarter of 2022, compared to 26.7% in the prior quarter.

Noninterest expense totaled $55.4 million during the fourth quarter of 2022, a decrease of $0.1 million from the prior quarter, primarily due to decreases of $0.5 million in occupancy and equipment, as a result of our adoption of ASU 2016-02, Leases, and $0.6 million in other noninterest expenses, partially offset by an increase of $1.1 million in intangible asset amortization. The efficiency ratio for the fourth quarter was 60.33% compared to 59.45% in the prior quarter.

Average deposits were $5.7 billion for the fourth quarter of 2022, compared to $5.8 billion for the prior quarter, a decrease of $154.0 million in the fourth quarter of 2022, or 10.5% on an annualized basis. Deposit trends reflect a decrease in customer average balances as consumer and business liquidity overall has declined slightly. Noninterest-bearing deposit accounts represented 31.6% of total deposits at December 31, 2022 and the loan-to-deposit ratio was 102.5% at December 31, 2022.

Capital ratios remain strong and above “well-capitalized” thresholds. As of December 31, 2022, our common equity tier 1 risk-based capital ratio was 9.94%, total risk-based capital ratio was 11.99% and tier 1 leverage ratio was 9.71%. Book value per common share was $31.08 at December 31, 2022, an increase of $0.94 from September 30, 2022. Tangible book value per common share, a non-GAAP financial measure, was $26.69 at December 31, 2022, an increase of $1.02 from September 30, 2022.

Net income totaled $59.2 million, or $2.48 per diluted share, in 2022, compared to $43.2 million, or $2.30 per diluted share, in 2021. Net income included merger costs, net of tax, of $17.0 million in 2022 and $2.6 million in 2021. The return on average assets was 0.88% in 2022, compared to 0.79% in 2021, and the return on average equity was 8.55% in 2022, compared to 8.37% in 2021. The negative impact in 2022 of merger costs, net of tax, to return on average assets was 0.25% and to return on average equity was 2.46%. The negative impact in 2021 of merger costs, net of tax, to return on average assets was 0.05% and to return on average equity was 0.50%.

Average loans increased by $1.4 billion in 2022, compared to 2021. Loan yield increased by 64 basis points to 4.75% in 2022, compared to 2021, primarily due to the rising interest rate environment and its impact on variable rate loans in the loan portfolio and higher yields on new originations. Average deposits increased $0.5 billion in 2022, compared to 2021. Total cost of deposits increased by 9 basis points to 0.35% in 2022, compared to 2021, primarily due to increased pricing on our deposit products as a result of the rising interest rate environment. Average FHLB borrowings increased $0.2 billion in 2022, compared to 2021. The cost of FHLB borrowings increased by 75 basis points to 2.89% in 2022, compared to 2021, primarily due to the rising interest rate environment.

The provision for loan losses totaled $18.1 million in 2022, an increase of $15.1 million compared to the prior year, primarily due to loan growth and macroeconomic factors. During the second quarter of 2022, $2.9 million of the provision for loan losses was related to certain non-impaired acquired loans marked at a premium valuation upon the closing of the Pioneer merger. The premium valuation on certain of the acquired loans was due to higher contractual interest rates compared to market interest rates upon the closing of the Pioneer merger. In total, we realized a net discount valuation on the entire acquired portfolio. Due to the premium on certain of the loans, a provision for loan losses was required; however, it was not due to credit deterioration since closing of the Pioneer merger.

Net charge-offs (recoveries) in 2022 were $(0.3) million, or a ratio of net charge-offs (recoveries) to average loans of (0.01)%, compared to net charge-offs of $3.2 million, or a ratio of net charge-offs (recoveries) to average loans of 0.09%, in 2021. The allowance for loan losses as a percentage of total loans was 1.12% at December 31, 2022, compared to 1.18% at December 31, 2021. The ratio of nonperforming assets to total assets was 0.64% at December 31, 2022, compared to 0.71% at December 31, 2021.

Noninterest income totaled $89.6 million during 2022, a decrease of $34.7 million from 2021. Mortgage banking income decreased $40.1 million in 2022, primarily due to a decrease in net sale gains and fees from mortgage loan originations as the volume of mortgage loan sales decreased from the prior year. Total originations of mortgage loans held-for-sale decreased by $0.7 billion, or 38.0%, in 2022 from the prior year. Service charges on deposits increased $5.7 million in 2022, due to an increase in average deposits in 2022, as compared to 2021. Noninterest income as a percentage of total revenue totaled 27.0% in 2022, compared to 44.5% in 2021.

Noninterest expense totaled $239.1 million in 2022, an increase of $14.5 million from 2021. Merger costs increased $15.7 million in 2022, as compared to 2021, due to the completion of the Pioneer merger in the second quarter of 2022. The decrease in salaries and benefits of $17.6 million in 2022, as compared to 2021, was partially offset by increases of $3.9 million in occupancy and equipment, $2.8 million in amortization of intangible assets, and $9.6 million in other noninterest expenses. The efficiency ratio for 2022 was 72.20% compared to 80.38% in 2021. The negative impact of merger expenses to the efficiency ratio was 5.66% in 2022 and 1.11% in 2021.

Average deposits were $5.6 billion for the year ending December 31, 2022, compared to $4.6 billion for the prior year. Average deposits, excluding $1.2 billion in acquired Pioneer deposits as of April 1, 2022, decreased $0.2 billion in 2022, or 4.8% compared to 2021. See the “Non-GAAP Financial Measures and Reconciliations” below. Average deposits, excluding impact from acquired Pioneer deposits, reflect a decrease in customer average balances as consumer and business liquidity overall has declined slightly. Noninterest-bearing deposit accounts represented 31.6% of total deposits at December 31, 2022 and the loan-to-deposit ratio was 102.5% at December 31, 2022.

This press release contains financial information and performance measures determined by methods other than in accordance with principles generally accepted in the United States (“GAAP”). FirstSun management uses these non-GAAP financial measures in their analysis of FirstSun’s performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. FirstSun believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. FirstSun management believes investors may find these non-GAAP financial measures useful. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this press release:

FirstSun Capital Bancorp, headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank, First National 1870 and Guardian Mortgage. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with a branch network in five states and mortgage capabilities in 43 states. FirstSun had total consolidated assets of $7.4 billion as of December 31, 2022.

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of FirstSun. Words such as “anticipates,” “believes,” “estimates,” “expects,” “focused,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should,” “would,” “could,” “look forward” and other similar expressions are intended to identify these forward-looking statements. Forward-looking statements are not based on historical facts but instead represent management’s current expectations and assumptions regarding FirstSun’s business, the economy and other future conditions. Such statements involve inherent uncertainties, risks and changes in circumstances that are difficult to predict. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates, and projections will be achieved. As such, FirstSun’s actual results may differ materially from those contemplated by forward-looking statements. While there can be 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 contemplated by forward-looking statements include, without limitation, the following:

•the possibility that the anticipated benefits of the merger with Pioneer, which closed on April 1, 2022, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy, competitive factors in the areas where FirstSun does business or as a result of other unexpected factors or events;

Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in FirstSun’s Annual Report on Form 10-K for the year ended December 31, 2021, and other documents subsequently filed by FirstSun with the United States Securities and Exchange Commission (“SEC”). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by applicable law or regulation, FirstSun undertakes no obligation to revise or update any forward-looking statements.

Summary Data:


	As of and for the quarter ended									As of and for the year ended
($ in thousands, except per share amounts)	December 31, 2022			September 30, 2022			December 31, 2021			December 31, 2022			December 31, 2021

Net interest income	$	73,276		$	68,486		$	40,451		$	241,632		$	155,233
Provision for loan losses	5,600			3,750			1,250			18,050			3,000
Noninterest income	18,618			24,953			29,396			89,566			124,244
Noninterest expense	55,443			55,548			58,261			239,126			224,635
Income before income taxes	30,851			34,141			10,336			74,022			51,842
Provision for income taxes	6,281			7,628			1,519			14,840			8,678
Net income	24,570			26,513			8,817			59,182			43,164
Net income, excluding merger costs (1)	24,570			26,513			9,736			76,213			45,740

Diluted earnings per share	$	0.96		$	1.04		$	0.47		$	2.48		$	2.30
Diluted earnings per share, excluding merger costs (1)	$	0.96		$	1.04		$	0.52		$	3.20		$	2.44
Return on average assets	1.38		%	1.52		%	0.62		%	0.88		%	0.79		%
Return on average assets, excluding merger costs (1)	1.38		%	1.52		%	0.68		%	1.13		%	0.84		%
Return on average stockholders' equity	12.89		%	14.50		%	6.69		%	8.55		%	8.37		%
Return on average stockholders’ equity, excluding merger costs (1)	12.89		%	14.50		%	7.38		%	11.01		%	8.87		%
Net interest margin	4.45		%	4.26		%	2.99		%	3.87		%	3.00		%
Net interest margin (FTE basis) (1)	4.52		%	4.31		%	3.09		%	3.95		%	3.11		%
Efficiency ratio	60.33		%	59.45		%	83.41		%	72.20		%	80.38		%
Efficiency ratio, excluding merger related expenses (1)	60.33		%	59.45		%	81.84		%	66.54		%	79.27		%
Fee revenue to total revenue	20.26		%	26.71		%	42.09		%	27.04		%	44.46		%

Total assets	$	7,430,322		$	7,052,917		$	5,666,814		$	7,430,322		$	5,666,814
Total loans held-for-sale	57,323			67,535			103,939			57,323			103,939
Total loans held-for-investment	5,911,832			5,556,686			4,037,123			5,911,832			4,037,123
Total deposits	5,765,062			5,760,418			4,854,948			5,765,062			4,854,948
Total stockholders' equity	774,536			750,653			524,038			774,536			524,038
Period end loan-to-deposit ratio	102.55		%	96.46		%	83.15		%	102.55		%	83.15		%
Book value per common share	$	31.08		$	30.14		$	28.56		$	31.08		$	28.56
Tangible book value per common share (1)	$	26.69		$	25.67		$	26.31		$	26.69		$	26.31
(1) Represents a non-GAAP financial measure. See the tables beginning on page 14 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.


	As of and for the quarter ended						As of and for the year ended
($ in thousands, except per share amounts)	December 31, 2022		September 30, 2022		December 31, 2021		December 31, 2022		December 31, 2021

Total interest income	$	85,165	$	73,763	$	43,578	$	266,817	$	169,354
Total interest expense	11,889		5,277		3,127		25,185		14,121
Net interest income	73,276		68,486		40,451		241,632		155,233
Provision for loan losses	5,600		3,750		1,250		18,050		3,000
Net interest income after provision for loan losses	67,676		64,736		39,201		223,582		152,233
Noninterest income:
Service charges on deposits	5,100		4,807		3,845		18,211		12,504
Credit and debit card fees	3,003		3,103		2,456		11,511		9,596
Trust and investment advisory fees	1,398		1,552		1,924		6,806		7,795
Mortgage banking income, net	6,268		13,785		18,266		46,285		86,410
Other noninterest income	2,849		1,706		2,905		6,753		7,939
Total noninterest income	18,618		24,953		29,396		89,566		124,244
Noninterest expense:
Salaries and benefits	32,378		32,508		38,797		134,359		151,926
Occupancy and equipment	7,707		8,216		6,698		30,509		26,565
Amortization of intangible assets	2,019		935		355		4,216		1,417
Merger related expenses	—		—		1,101		18,751		3,085
Other noninterest expenses	13,339		13,889		11,310		51,291		41,642
Total noninterest expense	55,443		55,548		58,261		239,126		224,635
Income before income taxes	30,851		34,141		10,336		74,022		51,842
Provision for income taxes	6,281		7,628		1,519		14,840		8,678
Net income	$	24,570	$	26,513	$	8,817	$	59,182	$	43,164

Earnings per share - basic	$	0.99	$	1.07	$	0.48	$	2.55	$	2.36
Earnings per share - diluted	$	0.96	$	1.04	$	0.47	$	2.48	$	2.30


($ in thousands)	December 31, 2022		September 30, 2022		December 31, 2021
Assets
Cash and cash equivalents	$	343,526	$	325,039	$	668,462
Securities available-for-sale, at fair value	536,973		551,165		572,501
Securities held-to-maturity	38,901		39,148		18,007
Loans held-for-sale, at fair value	57,323		67,535		103,939
Loans	5,911,832		5,556,686		4,037,123
Allowance for loan losses	(65,917)		(59,678)		(47,547)
Loans, net	5,845,915		5,497,008		3,989,576

Mortgage servicing rights, at fair value	74,097		73,850		47,392
Premises and equipment, net	87,079		88,490		53,147
Other real estate owned and foreclosed assets, net	6,358		5,391		5,487
Goodwill	93,483		93,483		33,050
Intangible assets, net	15,806		17,825		8,250
All other assets	330,861		293,983		167,003
Total assets	$	7,430,322	$	7,052,917	$	5,666,814

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand deposit accounts	$	1,820,490	$	1,946,215	$	1,566,113
Interest-bearing deposit accounts:
Interest-bearing demand accounts	212,357		160,082		187,712
Savings accounts and money market accounts	2,759,969		3,008,433		2,757,882
NOW accounts	50,224		46,128		19,496
Certificate of deposit accounts	922,022		599,560		323,745
Total deposits	5,765,062		5,760,418		4,854,948

Securities sold under agreements to repurchase	36,721		51,256		92,093
Federal Home Loan Bank advances	643,885		310,872		40,000
Other borrowings	80,235		80,097		69,458
Other liabilities	129,883		99,621		86,277
Total liabilities	6,655,786		6,302,264		5,142,776

Stockholders' equity:
Preferred stock	—		—		—
Common stock	2		2		2
Additional paid-in capital	460,720		460,530		261,905
Treasury stock	—		—		(38,148)
Retained earnings	357,797		333,227		298,615
Accumulated other comprehensive (loss) income, net	(43,983)		(43,106)		1,664
Total stockholders' equity	774,536		750,653		524,038
Total liabilities and stockholders' equity	$	7,430,322	$	7,052,917	$	5,666,814


	December 31, 2022		September 30, 2022		December 31, 2021

Stockholders' equity to total assets	10.42	%	10.64	%	9.25	%
Tangible equity to tangible assets (1)	9.09	%	9.21	%	8.58	%
Tier 1 leverage ratio	9.71	%	9.55	%	8.24	%
Common equity tier 1 risk-based capital ratio	9.94	%	9.99	%	9.70	%
Tier 1 risk-based capital ratio	9.94	%	9.99	%	9.70	%
Total risk-based capital ratio	11.99	%	12.06	%	11.76	%
(1) Represents a non-GAAP financial measure. See the tables beginning on page 14 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.


	For the quarter ended December 31, 2022							For the quarter ended September 30, 2022							For the quarter ended December 31, 2021
(In thousands)	Average Balance		Interest			Average Yield/Rate		Average Balance		Interest			Average Yield/Rate		Average Balance		Interest			Average Yield/Rate
Interest Earning Assets
Loans held-for-sale	$	51,835	$	606		4.68	%	$	56,636	$	743		5.25	%	$	97,934	$	793		3.24	%
Loans held-for-investment (1)	5,759,436		78,669			5.46	%	5,456,210		67,527			4.95	%	3,838,871		39,830			4.15	%
Investment securities	573,592		3,933			2.74	%	613,325		3,644			2.38	%	591,289		2,333			1.58	%
Interest-bearing cash and other assets	204,964		1,957			3.82	%	308,482		1,849			2.40	%	886,472		622			0.28	%
Total earning assets	6,589,827		85,165			5.17	%	6,434,653		73,763			4.59	%	5,414,566		43,578			3.22	%
Other assets	553,870							519,663							291,934
Total assets	$	7,143,697						$	6,954,316						$	5,706,500

Interest-bearing liabilities
Demand and NOW deposits	$	213,491	$	927		1.74	%	$	202,290	$	495		0.98	%	$	203,416	$	120		0.24	%
Savings deposits	492,837		348			0.28	%	506,548		227			0.18	%	458,657		97			0.08	%
Money market deposits	2,412,289		3,126			0.52	%	2,617,452		1,632			0.25	%	2,282,755		987			0.17	%
Certificates of deposits	647,819		1,733			1.07	%	593,479		920			0.62	%	326,440		609			0.75	%
Total deposits	3,766,436		6,134			0.65	%	3,919,769		3,274			0.33	%	3,271,268		1,813			0.22	%
Repurchase agreements	38,795		45			0.46	%	51,264		51			0.40	%	109,319		10			0.04	%
Total deposits and repurchase agreements	3,805,231		6,179			0.65	%	3,971,033		3,325			0.33	%	3,380,587		1,823			0.22	%
FHLB borrowings	471,880		4,477			3.80	%	160,310		761			1.90	%	40,000		151			1.51	%
Other long-term borrowings	80,162		1,233			6.15	%	80,031		1,191			5.95	%	69,306		1,153			6.65	%
Total interest-bearing liabilities	4,357,273		11,889			1.09	%	4,211,374		5,277			0.50	%	3,489,893		3,127			0.36	%
Noninterest-bearing deposits	1,923,401							1,924,055							1,617,278
Other liabilities	100,671							87,338							71,862
Stockholders' equity	762,352							731,549							527,467
Total liabilities and stockholders' equity	$	7,143,697						$	6,954,316						$	5,706,500

Net interest income			$	73,276						$	68,486						$	40,451
Net interest spread			4.08		%					4.09		%					2.86		%
Net interest margin			4.45		%					4.26		%					2.99		%
Net interest margin (on a FTE basis) (2)			4.52		%					4.31		%					3.09		%
(1) Includes nonaccrual loans.
(2) Represents a non-GAAP financial measure. See the tables beginning on page 14 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.


	For the year ended
	December 31, 2022							December 31, 2021
(In thousands)	Average Balance		Interest			Average Yield/Rate		Average Balance		Interest			Average Yield/Rate
Interest Earning Assets
Loans held-for-sale	$	59,915	$	3,313		5.53	%	$	125,808	$	4,051		3.22	%
Loans held-for-investment (1)	5,156,297		244,675			4.75	%	3,780,650		155,252			4.11	%
Investment securities	605,119		13,185			2.18	%	531,803		7,979			1.50	%
Interest-bearing cash and other assets	422,890		5,644			1.33	%	742,389		2,072			0.28	%
Total earning assets	6,244,221		266,817			4.27	%	5,180,650		169,354			3.27	%
Other assets	494,065							288,617
Total assets	$	6,738,286						$	5,469,267

Interest-bearing liabilities
Demand and NOW deposits	$	214,516	$	1,775		0.83	%	$	254,679	$	756		0.30	%
Savings deposits	496,131		799			0.16	%	455,451		460			0.10	%
Money market deposits	2,528,308		6,770			0.27	%	2,208,498		4,292			0.19	%
Certificates of deposits	536,325		3,810			0.71	%	344,224		3,036			0.88	%
Total deposits	3,775,280		13,154			0.35	%	3,262,852		8,544			0.26	%
Repurchase agreements	54,335		119			0.22	%	125,867		59			0.05	%
Total deposits and repurchase agreements	3,829,615		13,273			0.35	%	3,388,719		8,603			0.25	%
FHLB borrowings	215,166		6,221			2.89	%	42,527		909			2.14	%
Other long-term borrowings	82,111		5,691			6.93	%	68,918		4,609			6.69	%
Total interest-bearing liabilities	4,126,892		25,185			0.61	%	3,500,164		14,121			0.40	%
Noninterest-bearing deposits	1,835,578							1,376,968
Other liabilities	83,292							76,362
Stockholders' equity	692,524							515,773
Total liabilities and stockholders' equity	$	6,738,286						$	5,469,267

Net interest income			$	241,632						$	155,233
Net interest spread			3.66		%					2.87		%
Net interest margin			3.87		%					3.00		%
Net interest margin (on a FTE basis) (2)			3.95		%					3.11		%
(1) Includes nonaccrual loans.
(2) Represents a non-GAAP financial measure. See the tables beginning on page 14 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.


($ in thousands)	December 31, 2022		September 30, 2022		December 31, 2022 vs September 30, 2022 % change		December 31, 2021		December 31, 2022 vs December 31, 2021 % change

Commercial	$	3,019,610	$	2,738,068	10.3	%	$	2,407,888	25.4	%
Commercial real estate	1,743,635		1,772,315		(1.6)	%	1,174,242		48.5	%
Residential real estate	1,105,999		1,003,157		10.3	%	437,017		153.1	%
Consumer	42,588		43,146		(1.3)	%	17,976		136.9	%
Total loans held-for-investment	$	5,911,832	$	5,556,686	6.4	%	$	4,037,123	46.4	%


	As of and for the quarter ended									As of and for the year ended
($ in thousands)	December 31, 2022			September 30, 2022			December 31, 2021			December 31, 2022			December 31, 2021

Net charge-offs (recoveries)	$	(639)		$	149		$	1,571		$	(320)		$	3,219
Allowance for loan losses	$	65,917		$	59,678		$	47,547		$	65,917		$	47,547
Nonperforming loans, including nonaccrual loans, accrual TDR’s, and accrual loans greater than 90 days past due	$	40,910		$	42,460		$	34,838		$	40,910		$	34,838
Nonperforming assets	$	47,268		$	47,851		$	40,325		$	47,268		$	40,325
Ratio of net charge-offs (recoveries) to average loans outstanding	(0.04)		%	0.01		%	0.16		%	(0.01)		%	0.09		%
Allowance for loan losses to total loans outstanding	1.12		%	1.07		%	1.18		%	1.12		%	1.18		%

Allowance for loan losses to total nonperforming loans	161.13		%	140.55		%	136.48		%	161.13		%	136.48		%
Nonperforming loans to total loans	0.69		%	0.76		%	0.86		%	0.69		%	0.86		%
Nonperforming assets to total assets	0.64		%	0.68		%	0.71		%	0.64		%	0.71		%


	As of and for the quarter ended									As of and for the year ended
($ in thousands, except share and per share amounts)	December 31, 2022			September 30, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Tangible stockholders’ equity:
Total stockholders' equity (GAAP)	$	774,536		$	750,653		$	524,038		$	774,536		$	524,038
Less: Goodwill and other intangible assets
Goodwill	(93,483)			(93,483)			(33,050)			(93,483)			(33,050)
Other intangible assets	(15,806)			(17,825)			(8,250)			(15,806)			(8,250)
Total tangible stockholders' equity (non-GAAP)	$	665,247		$	639,345		$	482,738		$	665,247		$	482,738
Tangible assets:
Total assets (GAAP)	$	7,430,322		$	7,052,917		$	5,666,814		$	7,430,322		$	5,666,814
Less: Goodwill and other intangible assets
Goodwill	(93,483)			(93,483)			(33,050)			(93,483)			(33,050)
Other intangible assets	(15,806)			(17,825)			(8,250)			(15,806)			(8,250)
Total tangible assets (non-GAAP)	$	7,321,033		$	6,941,609		$	5,625,514		$	7,321,033		$	5,625,514
Tangible stockholders’ equity to tangible assets:
Common equity to total assets (GAAP)	10.42		%	10.64		%	9.25		%	10.42		%	9.25		%
Less: Impact of goodwill and other intangible assets	(1.33)		%	(1.43)		%	(0.67)		%	(1.33)		%	(0.67)		%
Tangible common equity to tangible assets (non-GAAP)	9.09		%	9.21		%	8.58		%	9.09		%	8.58		%
Tangible book value per common share:
Stockholders' equity (GAAP)	$	774,536		$	750,653		$	524,038		$	774,536		$	524,038
Tangible stockholders' equity (non-GAAP)	$	665,247		$	639,345		$	482,738		$	665,247		$	482,738
Total common shares outstanding	24,920,984			24,906,032			18,346,288			24,920,984			18,346,288
Book value per common share (GAAP)	$	31.08		$	30.14		$	28.56		$	31.08		$	28.56
Tangible book value per common share (non-GAAP)	$	26.69		$	25.67		$	26.31		$	26.69		$	26.31
Net income excluding merger costs:
Net income (GAAP)	$	24,570		$	26,513		$	8,817		$	59,182		$	43,164
Add: Merger costs
Merger related expenses	—			—			1,101			18,751			3,085
Income tax effect on merger related expenses	—			—			(182)			(4,083)			(509)
Provision for loan loss on Pioneer loans marked at a premium	—			—			—			2,884			—
Income tax effect on provision for loan loss on Pioneer loans marked at a premium	—			—			—			(521)			—
Total merger costs	—			—			919			17,031			2,576
Net income excluding merger costs (non-GAAP)	$	24,570		$	26,513		$	9,736		$	76,213		$	45,740


	As of and for the quarter ended									As of and for the year ended
($ in thousands, except share and per share amounts)	December 31, 2022			September 30, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Return on average total assets excluding merger costs:
Return on average total assets (ROAA) (GAAP)	1.38		%	1.52		%	0.62		%	0.88		%	0.79		%
Add: Impact of merger costs, net of tax	—		%	—		%	0.06		%	0.25		%	0.05		%
ROAA excluding merger costs (non-GAAP)	1.38		%	1.52		%	0.68		%	1.13		%	0.84		%
Return on average stockholders’ equity excluding merger costs:
Return on average stockholders' equity (ROAE) (GAAP)	12.89		%	14.50		%	6.69		%	8.55		%	8.37		%
Add: Impact of merger costs, net of tax	—		%	—		%	0.69		%	2.46		%	0.50		%
ROAE excluding merger costs (non-GAAP)	12.89		%	14.50		%	7.38		%	11.01		%	8.87		%
Efficiency ratio excluding merger related expenses:
Efficiency ratio (GAAP)	60.33		%	59.45		%	83.41		%	72.20		%	80.38		%
Less: Impact of merger related expenses	—		%	—		%	1.57		%	5.66		%	1.11		%
Efficiency ratio excluding merger related expenses (non-GAAP)	60.33		%	59.45		%	81.84		%	66.54		%	79.27		%
Diluted earnings per share excluding merger costs:
Diluted earnings per share (GAAP)	$	0.96		$	1.04		$	0.47		$	2.48		$	2.30
Add: Impact of merger costs, net of tax	—			—			0.05			0.72			0.14
Diluted earnings per share excluding merger costs (non-GAAP)	$	0.96		$	1.04		$	0.52		$	3.20		$	2.44








Fully tax equivalent (FTE) net interest income and net interest margin on FTE basis:
Net interest income (GAAP)	$	73,276		$	68,486		$	40,451		$	241,632		$	155,233
Gross income effect of tax exempt income	1,218			1,236			1,336			5,059			5,755
FTE net interest income (non-GAAP)	$	74,494		$	69,722		$	41,787		$	246,691		$	160,988
Average earning assets	$	6,589,827		$	6,434,653		$	5,414,566		$	6,244,221		$	5,180,650
Net interest margin	4.45		%	4.26		%	2.99		%	3.87		%	3.00		%
Net interest margin on FTE basis (non-GAAP)	4.52		%	4.31		%	3.09		%	3.95		%	3.11		%


	As of
($ in thousands)	December 31, 2022

Total loan growth, excluding acquired Pioneer loans as of April 1, 2022, and PPP loans:
Total loans for the year ended:
December 31, 2022	$	5,911,832
Less: Acquired loans at date of merger, net of purchase accounting adjustments	(811,300)
Less: PPP loans	(4,352)
Total loans, excluding acquired Pioneer loans and PPP loans	$	5,096,180
December 31, 2021	$	4,037,123

Less: PPP loans	(66,749)
Total loans, excluding PPP loans	$	3,970,374
Total loan growth (GAAP)	$	1,874,709
Total loan growth, excluding acquired Pioneer loans and PPP loans (non-GAAP)	$	1,125,806
Total loan growth (GAAP)	46.4		%
Total loan growth, excluding acquired Pioneer loans and PPP loans (non-GAAP)	28.4		%


	As of and for the year ended
($ in thousands)	December 31, 2022

Total average deposit growth, excluding acquired Pioneer deposits as of April 1, 2022:
Total average deposits for the periods ended:
December 31, 2022	$	5,610,858
Less: Acquired deposits at date of merger, net of purchase accounting adjustments	(1,192,081)
Total average deposits, excluding acquired Pioneer deposits	$	4,418,777
December 31, 2021	$	4,639,820
Total average deposit growth (GAAP)	$	971,038
Total average deposit growth, excluding acquired Pioneer deposits (non-GAAP)	$	(221,043)
Total average deposit growth (GAAP)	20.9		%
Total average deposit growth, excluding acquired Pioneer deposits (non-GAAP)	(4.8)		%