Corporate Strategy and Financial Performance slide image

Corporate Strategy and Financial Performance

Non-GAAP Reconciliation 11 This presentation includes certain non-GAAP financial measures, including pre-provision net revenue, net income, earnings per share (basic and diluted), return on average assets, return on average tangible common equity, tangible common equity, tangible assets, the ratio of tangible common equity to tangible assets, tangible book value per share, net interest margin, and efficiency ratio. These non-GAAP financial measures and any other non-GAAP financial measures that are discussed in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the Company's non-GAAP financial measures as tools for comparison. The following is a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures. ($000s, except where otherwise noted) Pre-Provision Net Revenue ("PPNR") Pre-tax income, as reported Add back: Provision expense Add back: FHLB penalty, gross Add back: Contribution Add back: Insurance reimbursement Add back: Settlement expense, gross Pre-Provision Net Revenue, as adjusted Net Income Net income, as reported YTD 2018 2019 2020 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 6/30/2022 13,431 $ 16,465 $ 2,111 1,320 17,788 $ 5,401 26,309 $ (817) 4,529 $ 110 5,939 $ 555 5,800 $ (597) 10,041 $ (885) 7,616 $ (419) 7,136 624 $ 205 14,752 2,368 2,368 1,000 1,000 (1,375) (1,375) $ 3,300 3,300 $ $ 15,542 $ 17,785 $ 23,189 $ 30,785 $ 7,939 $ 6,494 $ 7,571 $ 8,781 $ 7,197 $ 7,760 $ 14,957 $ 10,667 $ 13,129 $ 13,841 $ 19,770 $ 3,430 $ 4,403 $ 4,388 $ 7,549 $ 5,715 $ 5,428 $ 11,143 Less: Preferred stock dividends - Net income, available to common shareholders, as reported (a) $ 10,667 $ 13,129 $ 13,841 $ 19,770 $ 3,430 $ 4,403 $ 4,388 $ 7,549 $ 5,715 $ 5,428 $ 11,143 Add Back: Impact of Tax Reform Act Add back: FHLB penalty, net of tax 1,790 1,790 Add back: Contribution, net of tax Add back: Insurance reimbursement, net of tax 770 770 (1,059) (1,059) Add back: Settlement expense, net of tax 2,565 2,565 Net income, as adjusted (b) $ Weighted Average Common shares - basic (actual) (d) Weighted Average Common shares - diluted (actual) (e) 10,667 $ 13,129 $ 13,841 $ 23,836 7,078,644 7,110,022 7,003,955 6,710,463 7,078,644 7,110,022 7,013,164 6,716,587 $ 5,995 $ 4,403 $ 6,178 $ 7,260 $ 5,715 $ 5,428 11,143 6,995,798 6,609,275 7,000,305 6,615,117 6,616,829 6,619,950 6,623,902 6,627,023 6,627,564 6,636,156 6,650,256 6,638,910 6,661,061 6,648,608 29
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