Corporate Strategy and Financial Performance slide image

Corporate Strategy and Financial Performance

Net Interest Margin Components (1) 4.57% 4.41% 4.5% 3.99% 3.63% 3.66% 3.5% 3.74% 3.68% 3.46% 3.34% 3.28% 2.5% 1.5% 1.18% 0.86% 0.91% 0.51% 0.30% 0.5% 0.70% 0.42% 0.49% 0.24% 0.12% -0.5% 2018 2019 2020 2021 2Q22 11 -Yield on Earning Assets Cost of Interest-bearing Liabilities -Net Interest Margin -Cost of Deposits Disciplined loan and deposit pricing has produced a strong margin that is in line with our peers. Margin expansion in the latter half of 2021 and into first six months of 2022 primarily due to new loan volume and existing loans pricing at higher rates and reduced cost of interest-bearing liabilities ■ Net interest income was aided by increasing loan yields, lower cost of funds on interest-bearing deposits and the reduced interest expense related to the prepayment of FHLB long-term borrowings Our team approach to full client relationships, our focus on community-oriented business owners and our high-tech branch network provide continued access to low-cost deposits, treasury management and commercial loans (1) See Appendix for a reconciliation of these non-GAAP financial measures 18
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