2020 Annual Report

The Company believes these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that our 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)

2020

2019

2018

2017

2016

Efficiency Ratio Noninterest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,387 $ 36,932 $ 31,562 $ 25,496 $ 20,168 Less: Amortization of Intangible Assets. . . . . . . . . . . . . . . . . . (191) (191) (191) (191) (104) Adjusted Noninterest Expense. . . . . . . . . . . . . . . . . . . . . . . $ 45,196 $ 36,741 $ 31,371 $ 25,305 $ 20,064 Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,964 $ 74,132 $ 64,738 $ 54,173 $ 42,118 Noninterest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,839 3,826 2,543 2,536 2,567 Less: (Gain) Loss on Sales of Securities. . . . . . . . . . . . . . . . . . (1,503) (516) 125 250 (830) Adjusted Operating Revenue . . . . . . . . . . . . . . . . . . . . . . . . $ 92,300 $ 77,442 $ 67,406 $ 56,959 $ 43,855 Efficiency Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.0 % 47.4 % 46.5 % 44.4 % 45.8 % Adjusted Efficiency Ratio Noninterest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,387 $ 36,932 $ 31,562 $ 25,496 $ 20,168 Less: Amortization of Tax Credit Investments. . . . . . . . . . . . . (738) (3,225) (3,293) (1,916) — Less: FHLB Advance Prepayment Fees . . . . . . . . . . . . . . . . . . (7,043) — — — — Less: Amortization of Intangible Assets. . . . . . . . . . . . . . . . . . (191) (191) (191) (191) (104) Adjusted Noninterest Expense. . . . . . . . . . . . . . . . . . . . . . . $ 37,415 $ 33,516 $ 28,078 $ 23,389 $ 20,064 Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,964 $ 74,132 $ 64,738 $ 54,173 $ 42,118 Noninterest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,839 3,826 2,543 2,536 2,567 Less: (Gain) Loss on Sales of Securities. . . . . . . . . . . . . . . . . . (1,503) (516) 125 250 (830) Adjusted Operating Revenue . . . . . . . . . . . . . . . . . . . . . . . . $ 92,300 $ 77,442 $ 67,406 $ 56,959 $ 43,855 Adjusted Efficiency Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.5 % 43.3 % 41.7 % 41.1 % 45.8 %

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