2020 Annual Report

Contractual Obligations

The following table presents supplemental information regarding total contractual obligations at December 31, 2020:

Within

One to Three to

After

(dollars in thousands)

One Year Three Years

Five Years Five Years

Total

Deposits Without a Stated Maturity. . . . . . . . . . . . . . . $ 1,855,475 $ — $ — $ Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338,261 114,473 193,427

— $ 1,855,475 — 646,161

Note Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000 FHLB Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000

—

—

—

11,000 57,500 75,000

— 38,500 4,000

Subordinated Debentures . . . . . . . . . . . . . . . . . . . . . . . Commitment to Fund Tax Credit Investments . . . . . . Operating Lease Obligations . . . . . . . . . . . . . . . . . . . .

—

— —

— 75,000

1,858

—

—

1,858

502 3,421 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,222,096 $ 115,465 $ 232,942 $ 79,912 $ 2,650,415 992 1,015 912

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.

Shareholders’ Equity

Shareholders’ equity at December 31, 2020 was $265.4 million, an increase of $20.6 million, or 8.4%, over shareholders’ equity of $244.8 million at December 31, 2019, primarily due to $27.2 million of net income retained and a $1.8 million increase in accumulated other comprehensive income, partially offset by $10.3 million of stock repurchases made under the Company’s stock repurchase program. The increase in accumulated other comprehensive income primarily resulted from interest rate fluctuations between periods. Stock Repurchase Program . On January 22, 2019, the Company adopted a stock repurchase program. Under the stock repurchase program, the Company was initially authorized to repurchase up to $15.0 million of its common stock in open market transactions or through privately negotiated transactions at the Company’s discretion. On July 23, 2019 and October 27, 2020, the Company's board of directors approved $10.0 million and $15.0 million increases, respectively, to the program for a total authorization of $40.0 million. Additionally, on October 27, 2020, the program duration was extended to run through October 27, 2022. The Company remains committed to maintaining strong capital levels while enhancing shareholder value as it strategically executes its stock repurchase program in this fluid economic environment. During the year ended December 31, 2020, the Company repurchased 940,781 shares of its common stock, representing approximately 3% of the Company's outstanding shares. Shares were repurchased at a weighted average price of $10.98 for a total of $10.3 million. All shares repurchased under the stock repurchase program were converted to authorized but unissued shares. At December 31, 2020, the remaining amount that could be used to repurchase shares under the stock repurchase program was $14.7 million. Regulatory Capital. The Company and the Bank are subject to various regulatory capital requirements administered by federal banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by federal banking regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s business.

Under applicable regulatory capital rules, the Company and Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory

80