News Release
pressreleaselogo2.gif
Contact: Tito L. Lima
Treasurer
(814) 765-9621
FOR IMMEDIATE RELEASE

CNB FINANCIAL CORPORATION REPORTS FIRST QUARTER 2022 EARNINGS PER SHARE OF $0.84 COMPARED TO $0.78 FOR FIRST QUARTER 2021

Clearfield, Pennsylvania – April 18, 2022

CNB Financial Corporation (“CNB” or the “Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the quarter ended March 31, 2022.

Joseph B. Bower, Jr., President and CEO, stated, “The robust loan growth across all of our markets, along with diligent investment activities during our first quarter have positioned a portion of our excess liquidity into higher earning assets. Through the hard work of our entire team, this growth early in the year should provide for another strong performance for CNB, following its record net income in 2021 and a positive first quarter of 2022."

Executive Summary

•Net income available to common was $14.2 million, or $0.84 per diluted common share, for the three months March 31, 2022, compared to $13.1 million, or $0.78 per diluted share, for the three months ended March 31, 2021, reflecting increases of $1.1 million, or 8.1%, and $0.06 per diluted share, or 7.7%. Earnings for the three months ended March 31, 2022 benefited from growth in commercial loans, stable credit quality and higher non-interest income.

•At March 31, 2022, excluding the impact of syndicated loans and Paycheck Protection Program ("PPP") loans, net of PPP deferred processing fees (such loans, the "PPP-related loans"), the Corporation's loan portfolio totaled $3.6 billion, representing an increase of $127.0 million, or 3.7% (14.9% annualized), from December 31, 2021. The growth was primarily driven by the Corporation's ongoing expansion in the Cleveland and Southwest Virginia regions, combined with continued strong growth in its Private Banking division, and increased lending opportunities in other regions in which the Corporation operates.

◦As part of the liquidity management strategies first implemented by the Corporation in 2020, the three months ended March 31, 2022 reflected an increase in syndicated lending balances of $21.3 million from December 31, 2021. The syndicated loan portfolio totaled $147.1 million, or 3.9% of total loans, excluding PPP-related loans, at March 31, 2022.

•At March 31, 2022, total deposits were $4.7 billion, reflecting a decrease of $24.8 million, or 0.5% (2.1% annualized), from December 31, 2021. While non-interest bearing deposits increased approximately $25.5 million, or 3.2% (13.1% annualized), total interest bearing deposits of $3.9 billion, at March 31, 2022, decreased approximately $50.3 million, or 1.3% (5.1% annualized), from December 31, 2021. The number of households across all regions increased 0.9% (3.7% annualized) from December 31, 2021.

•Total nonperforming assets decreased to $20.1 million, or 0.38%, of total assets, as of March 31, 2022, compared to $20.3 million, or 0.38% of total assets, as of December 31, 2021, and $33.6 million, or 0.69% of total assets, as of March 31, 2021. In addition, for the three months ended March 31, 2022, net loan charge-offs were $528 thousand, or 0.06% of total average loans, compared to $907 thousand, or 0.11% of total average loans, during the three months ended March 31, 2021.

•Pre-provision net revenue ("PPNR"), a non-GAAP measure, was $20.4 million for the three months ended March 31, 2022, compared to $19.6 million for the three months ended March 31, 2021, reflecting an increase of $823 thousand, or 4.2%.1

1 This release contains references to certain financial measures that are not defined under U.S. Generally Accepted Accounting Principles ("GAAP"). Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. A reconciliation of these non-GAAP financial measures is provided in the "Non-GAAP Reconciliations" section.



Balance Sheet and Liquidity Highlights

•At March 31, 2022, the Corporation’s cash and equivalents position was approximately $405.0 million, including excess liquidity of $352.9 million held at the Federal Reserve, reflecting, in management's view, a strong liquidity level to support both existing operations and future loan and investment portfolio growth.

•During January 2022, investments with an amortized cost of approximately $100.6 million and a fair value of $101.1 million were transferred from available-for-sale to held-to-maturity as a result of the Corporation's asset/liability management strategies. The transfer included $95.7 million of U.S. Government agency mortgage-backed securities and $4.9 million of U.S. Treasury notes. These bonds will still provide liquidity through pledging and can be utilized as collateral against borrowings.

•Book value per common share was $21.83 at March 31, 2022, representing an increase of 2.4% from $21.31 at March 31, 2021. Tangible book value per common share, a non-GAAP measure, was $19.21 as of March 31, 2022, reflecting an increase of 2.8% from a tangible book value per common share of $18.69 as of March 31, 2021.1 The increases in book value per common share and tangible book value per common share for the twelve months ended March 31, 2022 were primarily due to increases in retained earnings of $42.8 million, net of dividends, partially offset by an $33.3 million decrease in accumulated other comprehensive income primarily from unrealized valuation changes in the available-for-sale investment portfolio.

Customer Support Strategies and Loan Portfolio Profile

•As of March 31, 2022, the Corporation had outstanding $19.1 million in PPP loans at a rate of 1.00%, representing 145 PPP loan relationships, and deferred PPP processing fees of approximately $655 thousand. For the three months ended March 31, 2022, the Corporation recognized $1.2 million in deferred PPP processing fees ("PPP-related fees") compared to $2.7 million in PPP-related fees for the three months ended March 31, 2021. The outstanding balance of PPP loans at March 31, 2022 included loans from two different origination years: (i) $154 thousand, or 5 loans from the Corporation's participation in the PPP in 2020, and (ii) $18.9 million, or 140 loans, from the Corporation’s participation in the PPP in 2021.

Performance Ratios

•Annualized return on average equity was 13.99% for the three months ended March 31, 2022, compared to 13.68% for the three months ended March 31, 2021. Annualized return on average tangible common equity, a non-GAAP measure, was 16.91% and 16.70% for the same periods in 2022 and 2021, respectively.1

•Efficiency ratio, a non-GAAP ratio, was 60.53% for the three months ended March 31, 2022, compared to 58.18% for the three months ended March 31, 2021,1 primarily as a result of costs associated with the Corporation’s expansion into the Southwest Virginia region, coupled with its continued investments in customer-related technology.

Revenue

•Total revenue (comprised of net interest income plus non-interest income) was $52.3 million for the three months ended March 31, 2022, an increase of $4.9 million, or 10.4%, from the three months ended March 31, 2021, primarily due to the following:

◦Net interest income of $42.6 million for the three months ended March 31, 2022 increased $3.5 million, or 8.9%, from the three months ended March 31, 2021, primarily as a result of loan growth and various deposit pricing and liquidity strategies. Included in net interest income were PPP-related fees, which totaled approximately $1.2 million for the three months ended March 31, 2022, compared to $2.7 million for the three months ended March 31, 2021.

◦Net interest margin on a fully tax-equivalent basis was 3.48% and 3.56% for the three months ended March 31, 2022 and 2021, respectively.1

▪The yield on earning assets of 3.78% for the three months ended March 31, 2022 decreased 25 basis points from 4.03% for the three months ended March 31, 2021, primarily as a result of the lower interest rate environment and lower PPP-related fees, partially offset by a lower level of excess cash at the Federal Reserve. The cost of interest-bearing liabilities decreased 20 basis points from 0.57% for the three months ended March 31, 2021 to 0.37% for the three months ended March 31, 2022, primarily as a result of the Corporation’s targeted deposit rate reductions.

•Total non-interest income was $9.7 million for the three months ended March 31, 2022, representing an increase of $1.4 million, or 17.2%, from the same period in 2021. Included in non-interest income for the three months ended March 31, 2022 was $651 thousand in net realized gains on available-for-sale securities. Excluding the impact of the realized gains on available for sale securities, a non-GAAP measure, for the three months ended March 31, 2022, total non-interest income for the three months ended March 31, 2022 increased $764 thousand, or 9.3%, from the same period in 2021.1 During the three months ended March 31, 2022, Wealth and Asset Management fees increased $261 thousand, or 17.1%, compared to the three months ended March 31, 2021. Other significant improvements during the three months ended March 31, 2022 included increased income from charges on deposits and pass through income from SBIC partnerships resulting from, partially offset by decreased mortgage banking activity.



Non-Interest Expense

•For the three months ended March 31, 2022, total non-interest expense was $31.9 million, reflecting an increase of $4.1 million, or 14.7%, from the three months ended March 31, 2021. The first quarter of 2022 included the expenses related to hiring additional personnel in the Corporation's growth regions of Cleveland and Southwest Virginia. Also, the first quarter of 2022 included increased investments in technology aimed at enhancing customer experience.

Income Taxes

•Income tax expense was $3.5 million, representing a 18.6% effective tax rate, and $3.3 million, representing a 18.7% effective tax rate, for the three months ended March 31, 2022 and 2021, respectively.

Asset Quality

•Total nonperforming assets were $20.1 million, or 0.38%, of total assets, as of March 31, 2022, compared to $20.3 million, or 0.38% of total assets, as of December 31, 2021, and $33.6 million, or 0.69% of total assets as of March 31, 2021. The reduction in non-performing assets resulted primarily from the resolution of an $8.7 million commercial real estate loan relationship and a $1.4 million non-performing commercial real estate loan relationship with no additional loss to the Corporation in the fourth quarter of 2021.

•The allowance for credit losses measured as a percentage of loans was 1.01% as of March 31, 2022, compared to 1.03% as of December 31, 2021 and 1.05% as of March 31, 2021. The allowance for credit losses measured as a percentage of loans, net of PPP-related loans, a non-GAAP measure, was 1.02% as of March 31, 2022, compared to 1.05% as of December 31, 2021 and 1.11% as of March 31, 2021.1 In addition, the allowance for credit losses as a measured as a percentage of nonaccrual loans was 196.7% as of March 31, 2022, compared to 193.6% at December 31, 2021 and 111.5% as of March 31, 2021.

•Provision for credit losses was $1.6 million for the three months ended March 31, 2022, compared to $2.1 million for March 31, 2021. Included in the provision for credit losses for the three months ended March 31, 2022 was $586 thousand related to the allowance for unfunded commitments compared to zero for the three months ended March 31, 2021.

•For the three months ended March 31, 2022, net loan charge-offs were $528 thousand, or 0.06% (annualized) of total average loans, compared to $907 thousand, or 0.11% (annualized) of total average loans, during the three months ended March 31, 2021.

Capital

•As of March 31, 2022, the Corporation’s total shareholders’ equity was $425.9 million, representing a decrease of $16.9 million, or 3.8%, from December 31, 2021, primarily as a result of growth in organic earnings, offset by a decrease in accumulated other comprehensive income and payment of common and preferred stock dividends to the Corporation's common and preferred shareholders during the three months ended March 31, 2022.

•Regulatory capital ratios for the Corporation exceeded regulatory “well-capitalized” levels at March 31, 2022, and continue to support the Corporation's growth strategy.

•As of March 31, 2022, the Corporation’s ratio of tangible common equity to tangible assets of 6.18%, a non-GAAP measure, reflected the impact of approximately $18.4 million in PPP-related loans as well as the Corporation's significant excess liquidity. Excluding PPP-related loans and excess liquidity of $352.9 million at March 31, 2022, the Corporation’s adjusted ratio of tangible common equity to tangible assets of 6.65% represent a decrease from the December 31, 2021 adjusted ratio of 7.48%, primarily as a result of the decrease in accumulated other comprehensive income, partially offset by increases in retained earnings, net of dividends.1

About CNB Financial Corporation

CNB Financial Corporation is a financial holding company with consolidated assets of approximately $5.3 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, two loan production offices, one drive-up office and 45 full-service offices in Pennsylvania, Ohio, New York and Virginia. CNB Bank’s divisions include ERIEBANK, based in Erie, Pennsylvania, with offices Northwest Pennsylvania and Northeast Ohio; FCBank, based in Worthington, Ohio, with offices in Central Ohio; BankOnBuffalo, based in Buffalo, New York, with offices in Western New York; and Ridge View Bank, with loan production offices in the Southwest Virginia region. CNB Bank is headquartered in Clearfield, Pennsylvania, with offices in Central and North Central Pennsylvania. Additional information about CNB Financial Corporation may be found at www.CNBBank.bank.



Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to CNB’s financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond CNB’s control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” CNB’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Such known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to, (i) the duration, severity and scope of the COVID-19 pandemic and its impact on our customers and demand for financial services; (ii) actions governments, businesses and individuals take in response to the pandemic; (iii) the direct and indirect economic effects of the pandemic and containment measures; (iv) treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, including the Delta and Omicron variants; (v) the pace of recovery when the COVID-19 pandemic subsides; (vi) changes in general business, industry or economic conditions or competition; (vii) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (viii) adverse changes or conditions in capital and financial markets; (ix) changes in interest rates; (x) higher than expected costs or other difficulties related to integration of combined or merged businesses; (xi) the effects of business combinations and other acquisition transactions, including the inability to realize our loan and investment portfolios; (xii) changes in the quality or composition of our loan and investment portfolios; (xiii) adequacy of loan loss reserves; (xiv) increased competition; (xv) loss of certain key officers; (xvi) deposit attrition; (xvii) rapidly changing technology; (xviii) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xix) changes in the cost of funds, demand for loan products or demand for financial services; and (xx) other economic, competitive, governmental or technological factors affecting our operations, markets, products, services and prices. Such developments could have an adverse impact on CNB's financial position and results of operations. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of and the forward-looking statement disclaimers in CNB’s annual and quarterly reports.

The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this press release. CNB undertakes no obligation to publicly update or revise any forward-looking statements included in this press release or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.


Financial Tables

The following tables supplement the financial highlights described previously for CNB. All dollars are stated in thousands, except share and per share data.
(unaudited)
Three Months Ended
March 31,
%
20222021change
Income Statement
Interest and fees on loans$41,150 $38,408 7.1 %
Processing fees on PPP loans1,237 2,731 (54.7)%
Interest and dividends on securities and cash and cash equivalents3,867 3,156 22.5 %
Interest expense3,637 5,174 (29.7)%
Net interest income42,617 39,121 8.9 %
Provision for credit losses1,643 2,122 (22.6)%
Net interest income after provision for credit losses40,974 36,999 10.7 %
Non-interest income
Service charges on deposit accounts1,757 1,348 30.3 %
Other service charges and fees655 490 33.7 %
Wealth and asset management fees1,783 1,522 17.1 %
Net realized gains on available-for-sale securities651 0 NA
Net realized and unrealized gains (losses) on equity securities(394)120 (428.3)%
Mortgage banking475 1,235 (61.5)%
Bank owned life insurance694 940 (26.2)%
Card processing and interchange income1,809 1,834 (1.4)%
Other2,224 750 196.5 %
Total non-interest income9,654 8,239 17.2 %
Non-interest expenses
Salaries and benefits16,988 14,573 16.6 %
Net occupancy expense of premises3,230 3,269 (1.2)%
Technology expense3,372 2,670 26.3 %
State and local taxes1,048 1,017 3.0 %
Legal, professional, and examination fees837 1,153 (27.4)%
FDIC insurance premiums723 616 17.4 %
Core Deposit Intangible amortization25 28 (10.7)%
Card processing and interchange expenses1,029 680 51.3 %
Other4,640 3,798 22.2 %
Total non-interest expenses31,892 27,804 14.7 %
Income before income taxes18,736 17,434 7.5 %
Income tax expense3,491 3,253 7.3 %
Net income15,245 14,181 7.5 %
Preferred stock dividends1,075 1,075 NA
Net income available to common stockholders$14,170 $13,106 8.1 %
Average diluted common shares outstanding16,844,106 16,798,828 
Diluted earnings per common share$0.84 $0.78 7.7 %
Cash dividends per common share$0.175 $0.170 2.9 %
Dividend payout ratio21 %22 %


(unaudited)
Three Months Ended
March 31,
20222021
Average Balances
Loans$3,668,716 $3,386,168 
Investment securities805,118 615,407 
Total earning assets4,982,296 4,509,662 
Total assets5,291,353 4,781,217 
Non interest-bearing deposits804,964 652,080 
Interest-bearing deposits3,873,910 3,579,848 
Shareholders' equity441,810 420,449 
Tangible common shareholders' equity (1)
339,825 318,358 
Average Yields
Loans4.72 %4.95 %
Investment securities1.82 %2.11 %
Total earning assets3.78 %4.03 %
Interest-bearing deposits0.28 %0.48 %
Interest-bearing liabilities0.37 %0.57 %
Performance Ratios (annualized)
Return on average assets1.17 %1.20 %
Return on average equity13.99 %13.68 %
Return on average tangible common equity (1)
16.91 %16.70 %
Net interest margin, fully tax equivalent basis (1)
3.48 %3.56 %
Efficiency Ratio (1)
60.53 %58.18 %
Net Loan Charge-Offs
CNB Bank net loan charge-offs$158 $652 
Holiday Financial net loan charge-offs370 255 
Total net loan charge-offs$528 $907 
Annualized net loan charge-offs / average loans0.06 %0.11 %



(unaudited)(unaudited)% change% change
March 31,December 31,March 31,versusversus
20222021202112/31/2103/31/21
Ending Balance Sheet
PPP, net of deferred processing fees$18,416 $45,203 $195,025 (59.3)%(90.6)%
Syndicated147,085 125,761 21,122 17.0 %596.4 %
All Other3,590,862 3,463,828 3,184,837 3.7 %12.7 %
   Total Loans3,756,363 3,634,792 3,400,984 3.3 %10.4 %
Loans held for sale1,563 849 1,897 84.1 %(17.6)%
Investment securities - available for sale & equity549,654 707,557 620,338 (22.3)%(11.4)%
Investment securities - held to maturity307,597 0 0 NANA
FHLB and other equity interests2,946 2,966 2,554 (0.7)%15.3 %
Other earning assets357,837 689,758 609,725 (48.1)%(41.3)%
   Total earning assets4,975,960 5,035,922 4,635,498 (1.2)%7.3 %
Allowance for credit losses(38,117)(37,588)(35,555)1.4 %7.2 %
Goodwill43,749 43,749 43,749 0.0 %0.0 %
Core deposit intangible435 460 539 (5.4)%(19.3)%
Other assets301,973 286,396 259,379 5.4 %16.4 %
   Total assets$5,284,000 $5,328,939 $4,903,610 (0.8)%7.8 %
Non-interest bearing demand deposits$817,611 $792,086 $699,231 3.2 %16.9 %
Interest bearing demand deposits1,060,951 1,079,336 941,630 (1.7)%12.7 %
Savings2,474,362 2,457,745 2,258,250 0.7 %9.6 %
Certificates of Deposit337,939 386,452 458,989 (12.6)%(26.4)%
   Total deposits4,690,863 4,715,619 4,358,100 (0.5)%7.6 %
Subordinated debentures20,620 20,620 20,620 0.0 %0.0 %
Subordinated notes, net of issuance costs83,736 83,661 50,000 0.1 %67.5 %
Other liabilities62,846 66,192 57,287 (5.1)%9.7 %
Total liabilities4,858,065 4,886,092 4,486,007 (0.6)%8.3 %
Common stock0 0 0 NANA
Preferred stock57,785 57,785 57,785 NANA
Additional paid in capital126,703 127,351 126,572 (0.5)%0.1 %
Retained earnings271,792 260,582 228,973 4.3 %18.7 %
Treasury stock(2,998)(2,477)(1,671)21.0 %79.4 %
Accumulated other comprehensive income (loss)(27,347)(394)5,944 6,840.9 %(560.1)%
   Total shareholders' equity425,935 442,847 417,603 (3.8)%2.0 %
   Total liabilities and shareholders' equity$5,284,000 $5,328,939 $4,903,610 (0.8)%7.8 %
Ending shares outstanding16,860,698 16,855,062 16,884,584 
Book value per common share$21.83 $22.85 $21.31 (4.5)%2.4 %
Tangible book value per common share (1)
$19.21 $20.22 $18.69 (5.0)%2.8 %
Capital Ratios
Tangible common equity / tangible assets (1)
6.18 %6.45 %6.49 %
Tangible common equity / tangible assets, net of PPP-related loans and excess liquidity at the Federal Reserve(1)
6.65 %7.48 %7.77 %
Tier 1 leverage ratio (3)
8.30 %8.22 %8.34 %
Common equity tier 1 ratio (3)
9.37 %9.65 %9.79 %
Tier 1 risk based ratio (3)
11.40 %11.79 %12.18 %
Total risk based ratio (3)
14.44 %14.92 %14.60 %


(unaudited)(unaudited)
March 31,December 31,March 31,
202220212021
Asset Quality
Non accrual loans(2)
$19,378 $19,420 $31,882 
Loans 90+ days past due and accruing52 168 987 
   Total nonperforming loans19,430 19,588 32,869 
Other real estate owned689 707 770 
   Total nonperforming assets$20,119 $20,295 $33,639 
Loans modified in a troubled debt restructuring (TDR):
   Performing TDR loans$10,702 $9,006 $10,400 
   Nonperforming TDR loans (2)
7,379 7,600 6,705 
        Total TDR loans$18,081 $16,606 $17,105 
Nonperforming assets / Loans + OREO0.54 %0.56 %0.99 %
Nonperforming assets / Total assets0.38 %0.38 %0.69 %
Ratio of allowance for credit losses on loans to nonaccrual loans 196.70 %193.55 %111.52 %
Allowance for credit losses / Loans1.01 %1.03 %1.05 %
Allowance for credit losses / Loans, net of PPP-related loans (1)
1.02 %1.05 %1.11 %
(1) Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Corporation’s management believes that investors may use these non-GAAP measures to analyze the Corporation’s financial performance without the impact of unusual items or events that may obscure trends in the Corporation’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
(2) Nonperforming TDR loans are also included in the balance of nonaccrual loans in the previous table.
(3) Capital ratios as of March 31, 2022 are estimated pending final regulatory filings.


Non-GAAP Reconciliations (1):
(unaudited)(unaudited)
March 31,December 31,March 31,
202220212021
Calculation of tangible book value per share and tangible common equity/tangible assets:
Shareholders' equity$425,935 $442,847 $417,603 
Less: preferred equity57,785 57,785 57,785 
Less: goodwill43,749 43,749 43,749 
Less: core deposit intangible435 460 539 
Tangible common equity$323,966 $340,853 $315,530 
Total assets$5,284,000 $5,328,939 $4,903,610 
Less: goodwill43,749 43,749 43,749 
Less: core deposit intangible435 460 539 
Tangible assets$5,239,816 $5,284,730 $4,859,322 
Ending shares outstanding16,860,698 16,855,062 16,884,584 
Tangible book value per common share$19.21 $20.22 $18.69 
Tangible common equity/Tangible assets6.18 %6.45 %6.49 %
Non-GAAP Reconciliations (1):
(unaudited)(unaudited)
March 31,December 31,March 31,
202220212021
Calculation of tangible common equity/tangible assets, net of PPP-related loans and excess liquidity at the Federal Reserve:
Tangible common equity$323,966 $340,853 $315,530 
Tangible assets$5,239,816 $5,284,730 $4,859,322 
Less: PPP-related loans18,416 45,203 195,025 
Less: Excess liquidity at the Federal Reserve352,901 684,306 604,545 
Adjusted tangible assets$4,868,499 $4,555,221 $4,059,752 
Adjusted tangible common equity/tangible assets6.65 %7.48 %7.77 %

Non-GAAP Reconciliations (1):
(unaudited)(unaudited)
March 31,December 31,March 31,
202220212021
Calculation of allowance / loans, net of PPP-related loans:
Total allowance for credit losses$38,117 $37,588 $35,555 
Total loans$3,756,363 $3,634,792 $3,400,984 
Less: PPP-related loans18,416 45,203 195,025 
Adjusted total loans, net of PPP-related loans (non-GAAP)$3,737,947 $3,589,589 $3,205,959 
Adjusted allowance / loans, net of PPP-related loans (non-GAAP)1.02 %1.05 %1.11 %



Non-GAAP Reconciliations (1):
(unaudited)
Three Months Ended
March 31,
20222021
Calculation of net interest margin (fully tax equivalent basis):
Interest income (fully tax equivalent basis) (non-GAAP)$46,535 $44,619 
Interest expense (fully tax equivalent basis) (non-GAAP)3,637 5,174 
Net interest income (fully tax equivalent basis) (non-GAAP)$42,898 $39,445 
Average total earning assets$4,982,296 $4,509,662 
Less: average mark to market adjustment on investments(10,560)17,310 
Adjusted average total earning assets, net of mark to market (non-GAAP)$4,992,856 $4,492,352 
Net interest margin, fully tax equivalent basis (non-GAAP) (annualized)3.48 %3.56 %

Non-GAAP Reconciliations (1):
(unaudited)
Three Months Ended
March 31,
20222021
Calculation of efficiency ratio:
Non-interest expense$31,892 $27,804 
Less: core deposit intangible amortization25 28 
Adjusted non-interest expense (non-GAAP)$31,867 $27,776 
Non-interest income$9,654 $8,239 
Net interest income$42,617 $39,121 
Less: tax exempt investment and loan income, net of TEFRA (non-GAAP)1,327 1,304 
Add: tax exempt investment and loan income (non-GAAP) (tax-equivalent)1,703 1,689 
Adjusted net interest income (non-GAAP)42,993 39,506 
Adjusted net revenue (non-GAAP) (tax-equivalent)$52,647 $47,745 
Efficiency ratio60.53 %58.18 %

Non-GAAP Reconciliations (1):
(unaudited)
Three Months Ended
March 31,
20222021
Calculation of PPNR:
Net interest income$42,617 $39,121 
Add: Non-interest income9,654 8,239 
Less: Non-interest expense31,892 27,804 
PPNR (non-GAAP)$20,379 $19,556 





Non-GAAP Reconciliations (1):
(unaudited)
Three Months Ended
March 31,
20222021
Calculation of return on average tangible common equity:
Net income available to common stockholders$14,170 $13,106 
Average tangible common shareholders' equity339,825 318,358 
Return on average tangible common equity (non-GAAP) (annualized)16.91 %16.70 %

Non-GAAP Reconciliations (1):
(unaudited)
Three Months Ended
March 31,
20222021
Calculation of non-interest income excluding net realized gains on available-for-sale securities:
Non-interest income$9,654 $8,239 
Less: net realized gains on available-for-sale securities651 0 
Adjusted non-interest income$9,003 $8,239