EX-99

Exhibit 99

ORRSTOWN FINANCIAL SERVICES, INC.

FINANCIAL HIGHLIGHTS (Unaudited)


	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Profitability for the period:
Net interest income	$	25,455		$	20,620		$	72,146		$	64,376
Provision for loan losses		1,500			365			3,575			(10	)
Noninterest income		6,058			7,651			20,726			21,859
Noninterest expenses		36,412			19,035			74,570			53,851

(Loss) income before income tax (benefit) expense		(6,399	)		8,871			14,727			32,394
Income tax (benefit) expense		(1,571	)		1,679			2,316			6,219

Net (loss) income available to common shareholders	$	(4,828	)	$	7,192		$	12,411		$	26,175

Financial ratios:
Return on average assets⁽¹⁾		(0.68	)%		0.98	%		0.59	%		1.21	%
Return on average assets, adjusted^{(1) (2) (3)}		1.12	%		0.98	%		1.19	%		1.21	%
Return on average equity⁽¹⁾		(7.92	)%		10.69	%		6.58	%		13.49	%
Return on average equity, adjusted^{(1) (2) (3)}		13.02	%		10.69	%		13.35	%		13.49	%
Net interest margin⁽¹⁾		3.92	%		3.03	%		3.70	%		3.21	%
Efficiency ratio		115.5	%		67.3	%		80.3	%		62.4	%
Efficiency ratio, adjusted ^{(2) (3)}		64.3	%		67.3	%		62.9	%		62.4	%
(Loss) income per common share:
Basic	$	(0.47	)	$	0.66		$	1.17		$	2.38
Basic, adjusted ^{(2) (3)}	$	0.77		$	0.66		$	2.37		$	2.38
Diluted	$	(0.47	)	$	0.65		$	1.16		$	2.36
Diluted, adjusted ^{(2) (3)}	$	0.75		$	0.65		$	2.34		$	2.36

Average equity to average assets		8.59	%		9.20	%		8.90	%		8.96	%

(1)	Annualized.

(2)	Ratio has been adjusted for the restructuring charge and provision for legal settlement.

(3)	Non-GAAP based financial measure. Please refer to Appendix A—Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.

ORRSTOWN FINANCIAL SERVICES, INC.

FINANCIAL HIGHLIGHTS (Unaudited)

(continued)


	September 30, 2022			December 31, 2021
At period-end:
Total assets	$	2,852,092		$	2,834,565
Total deposits		2,505,853			2,464,929
Loans, net of allowance for loan losses		2,063,218			1,958,806
Loans held-for-sale, at fair value		10,175			8,868
Securities available for sale		503,596			472,438
Borrowings		22,632			25,197
Subordinated notes		32,010			31,963
Shareholders’ equity		217,378			271,656

Credit quality and capital ratios⁽¹⁾:
Allowance for loan losses to total loans		1.18	%		1.07	%
Total nonaccrual loans to total loans		0.25	%		0.33	%
Nonperforming assets to total assets		0.19	%		0.23	%
Allowance for loan losses to nonaccrual loans		466	%		328	%
Total risk-based capital:
Orrstown Financial Services, Inc.		12.7	%		15.0	%
Orrstown Bank		12.9	%		14.0	%
Tier 1 risk-based capital:
Orrstown Financial Services, Inc.		10.2	%		12.2	%
Orrstown Bank		11.8	%		12.9	%
Tier 1 common equity risk-based capital:
Orrstown Financial Services, Inc.		10.2	%		12.2	%
Orrstown Bank		11.8	%		12.9	%
Tier 1 leverage capital:
Orrstown Financial Services, Inc.		8.4	%		8.5	%
Orrstown Bank		9.6	%		8.9	%

Book value per common share	$	20.34		$	24.29

(1)	Capital ratios are estimated, subject to regulatory filings

ORRSTOWN FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)


(Dollars in thousands, except per share amounts)	September 30, 2022			December 31, 2021
Assets
Cash and due from banks	$	34,481		$	21,217
Interest-bearing deposits with banks		32,446			187,493

Cash and cash equivalents		66,927			208,710

Restricted investments in bank stocks		6,469			7,252
Securities available for sale (amortized cost of $558,057 and $466,806 at September 30, 2022 and December 31, 2021, respectively)		503,596			472,438
Loans held for sale, at fair value		10,175			8,868
Loans		2,087,927			1,979,986
Less: Allowance for loan losses		(24,709	)		(21,180	)

Net loans		2,063,218			1,958,806

Premises and equipment, net		31,457			34,045
Cash surrender value of life insurance		71,332			70,217
Goodwill		18,724			18,724
Other intangible assets, net		3,338			4,183
Accrued interest receivable		9,212			8,234
Deferred tax assets, net		26,875			11,648
Other assets		40,769			31,440

Total assets	$	2,852,092		$	2,834,565

Liabilities
Deposits:
Noninterest-bearing	$	562,024		$	553,238
Interest-bearing		1,943,829			1,911,691

Total deposits		2,505,853			2,464,929

Securities sold under agreements to repurchase		21,065			23,301
FHLB advances and other		1,567			1,896
Subordinated notes		32,010			31,963
Accrued interest and other liabilities		74,219			40,820

Total liabilities		2,634,714			2,562,909

Shareholders’ Equity
Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding		—			—
Common stock, no par value—$0.05205 stated value per share 50,000,000 shares authorized; 11,236,558 shares issued and 10,686,064 outstanding at September 30, 2022; 11,258,167 shares issued and 11,183,050 outstanding at December 31, 2021		585			586
Additional paid—in capital		188,730			189,689
Retained earnings		84,867			78,700
Accumulated other comprehensive (loss) income		(43,468	)		4,449
Treasury stock—550,494 and 75,117 shares, at cost at September 30, 2022 and December 31, 2021, respectively		(13,336	)		(1,768	)

Total shareholders’ equity		217,378			271,656

Total liabilities and shareholders’ equity	$	2,852,092		$	2,834,565

ORRSTOWN FINANCIAL SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (Unaudited)


	Three Months Ended					Nine Months Ended
(In thousands)	September 30, 2022			September 30, 2021		September 30, 2022			September 30, 2021
Interest income
Loans	$	23,152		$	19,890	$	66,548		$	62,724
Investment securities—taxable		2,907			1,514		6,462			5,007
Investment securities—tax-exempt		1,160			652		3,013			1,790
Short-term investments		200			135		536			255

Total interest income		27,419			22,191		76,559			69,776

Interest expense
Deposits		1,372			937		2,758			3,410
Securities sold under agreements to repurchase		10			8		24			25
FHLB advances and other		78			123		121			458
Subordinated notes		504			503		1,510			1,507

Total interest expense		1,964			1,571		4,413			5,400

Net interest income		25,455			20,620		72,146			64,376
Provision for loan losses		1,500			365		3,575			(10	)

Net interest income after provision for loan losses		23,955			20,255		68,571			64,386

Noninterest income
Service charges		1,216			993		3,483			2,758
Interchange income		1,014			1,030		3,059			3,049
Swap fee income		197			67		1,935			135
Wealth management income		2,953			2,917		8,716			8,570
Mortgage banking activities		(1,014	)		1,333		205			4,684
Investment securities (losses) gains		(14	)		479		(163	)		635
Other income		1,706			832		3,491			2,028

Total noninterest income		6,058			7,651		20,726			21,859

Noninterest expenses
Salaries and employee benefits		12,705			11,498		35,354			31,907
Occupancy, furniture and equipment		2,380			2,374		7,370			7,292
Data processing		1,192			990		3,410			3,041
Advertising and bank promotions		278			735		1,514			1,434
FDIC insurance		294			218		767			570
Professional services		887			562		2,417			1,862
Taxes other than income		488			16		1,160			929
Intangible asset amortization		272			314		845			972
Provision for legal settlement		13,000			—		13,000			—
Restructuring expenses		3,155			—		3,155			—
Other operating expenses		1,761			2,328		5,578			5,844

Total noninterest expenses		36,412			19,035		74,570			53,851

(Loss) income before income tax (benefit) expense		(6,399	)		8,871		14,727			32,394
Income tax (benefit) expense		(1,571	)		1,679		2,316			6,219

Net (loss) income	$	(4,828	)	$	7,192	$	12,411		$	26,175

Share information:
Basic (loss) earnings per share	$	(0.47	)	$	0.66	$	1.17		$	2.38
Diluted (loss) earnings per share	$	(0.47	)	$	0.65	$	1.16		$	2.36
Weighted average shares—basic		10,369			10,979		10,611			10,976
Weighted average shares—diluted		10,369			11,122		10,758			11,103

ORRSTOWN FINANCIAL SERVICES, INC.

ANALYSIS OF NET INTEREST INCOME

Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)


	Three Months Ended
	9/30/2022								6/30/2022								3/31/2022								12/31/2021								9/30/2021
(Dollars in thousands)	Average Balance		Taxable- Equivalent Interest			Taxable- Equivalent Rate			Average Balance		Taxable- Equivalent Interest			Taxable- Equivalent Rate			Average Balance		Taxable- Equivalent Interest			Taxable- Equivalent Rate			Average Balance		Taxable- Equivalent Interest			Taxable- Equivalent Rate			Average Balance		Taxable- Equivalent Interest			Taxable- Equivalent Rate
Assets
Federal funds sold & interest-bearing bank balances	$	38,068	$	200			2.08	%	$	131,449	$	235			0.72	%	$	199,788	$	101			0.20	%	$	250,336	$	98			0.16	%	$	347,242	$	135			0.15	%
Investment securities ⁽¹⁾		528,988		4,377			3.31			523,940		3,388			2.59			472,195		2,512			2.13			477,217		2,506			2.08			464,417		2,339			2.00
Loans^(1)(2)(3)		2,051,707		23,219			4.49			2,008,283		22,090			4.41			1,974,804		21,429			4.39			1,975,014		21,559			4.33			1,919,926		19,945			4.12

Total interest-earning assets		2,618,763		27,796			4.22			2,663,672		25,713			3.87			2,646,787		24,042			3.67			2,702,567		24,163			3.55			2,731,585		22,419			3.26

Other assets		196,277								192,561								184,300								187,622								195,089

Total	$	2,815,040							$	2,856,233							$	2,831,087							$	2,890,189							$	2,926,674

Liabilities and Shareholders’ Equity
Interest-bearing demand deposits	$	1,379,082		912			0.26		$	1,420,051		301			0.09		$	1,398,182		256			0.07		$	1,430,845		273			0.08		$	1,411,243		286			0.08
Savings deposits		237,462		90			0.15			236,916		63			0.11			227,676		57			0.10			215,957		55			0.10			209,112		53			0.10
Time deposits		265,015		370			0.55			275,408		337			0.49			298,618		372			0.51			313,148		461			0.58			349,215		598			0.68

Total interest-bearing deposits		1,881,559		1,372			0.29			1,932,375		701			0.15			1,924,476		685			0.14			1,959,950		789			0.16			1,969,570		937			0.19

Securities sold under agreements to repurchase		23,480		10			0.18			24,045		7			0.11			23,530		7			0.12			24,069		7			0.12			23,578		8			0.13
FHLB advances and other		10,394		78			3.02			1,741		21			4.74			1,850		22			4.74			1,956		23			4.70			45,071		123			1.09
Subordinated notes		32,000		504			6.29			31,985		503			6.29			31,969		503			6.29			31,954		503			6.29			31,938		503			6.29

Total interest-bearing liabilities		1,947,433		1,964			0.40			1,990,146		1,232			0.25			1,981,825		1,217			0.25			2,017,929		1,322			0.26			2,070,157		1,571			0.30

Noninterest-bearing demand deposits		575,777								572,171								540,139								559,882								548,923
Other		49,964								47,190								40,919								42,380								38,409

Total Liabilities		2,573,174								2,609,507								2,562,883								2,620,191								2,657,489
Shareholders’ Equity		241,866								246,726								268,204								269,998								269,185

Total	$	2,815,040							$	2,856,233							$	2,831,087							$	2,890,189							$	2,926,674

Taxable-equivalent net interest income / net interest spread				25,832			3.82	%				24,481			3.62	%				22,825			3.42	%				22,841			3.29	%				20,848			2.96	%

Taxable-equivalent net interest margin							3.92	%							3.68	%							3.49	%							3.35	%							3.03	%

Taxable-equivalent adjustment				(377	)							(363	)							(252	)							(243	)							(228	)

Net interest income			$	25,455							$	24,118							$	22,573							$	22,598							$	20,620

Ratio of average interest-earning assets to average interest-bearing liabilities							134	%							134	%							134	%							134	%							132	%

NOTES:

⁽¹⁾	Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.

⁽²⁾	Average balances include nonaccrual loans.

⁽³⁾	Interest income on loans includes prepayment and late fees, where applicable

ORRSTOWN FINANCIAL SERVICES, INC.

ANALYSIS OF NET INTEREST INCOME

Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)


	Nine Months Ended
	September 30, 2022								September 30, 2021
(Dollars in thousands)	Average Balance		Taxable- Equivalent Interest			Taxable- Equivalent Rate			Average Balance		Taxable- Equivalent Interest			Taxable- Equivalent Rate
Assets
Federal funds sold & interest-bearing bank balances	$	122,509	$	536			0.59	%	$	261,697	$	255			0.13	%
Investment securities ⁽¹⁾		508,582		10,276			2.70			456,919		7,272			2.13
Loans ^(1)(2)(3)		2,011,881		66,738			4.43			1,988,834		62,895			4.23

Total interest-earning assets		2,642,972		77,550			3.92			2,707,450		70,422			3.48

Other assets		191,090								188,924

Total	$	2,834,062							$	2,896,374

Liabilities and Shareholders’ Equity
Interest-bearing demand deposits	$	1,399,035		1,470			0.14		$	1,380,241		1,014			0.10
Savings deposits		234,054		209			0.12			197,792		149			0.10
Time deposits		279,557		1,079			0.52			376,142		2,247			0.80

Total interest-bearing deposits		1,912,646		2,758			0.19			1,954,175		3,410			0.23

Securities sold under agreements to repurchase		23,685		24			0.14			22,490		25			0.15
FHLB advances and other		4,693		121			3.44			53,608		458			1.14
Subordinated notes		31,985		1,510			6.29			31,924		1,507			6.29

Total interest-bearing liabilities		1,973,009		4,413			0.30			2,062,197		5,400			0.35

Noninterest-bearing demand deposits		562,826								537,247
Other		46,058								37,413

Total Liabilities		2,581,893								2,636,857
Shareholders’ equity		252,169								259,517

Total	$	2,834,062							$	2,896,374

Taxable-equivalent net interest income / net interest spread				73,137			3.62	%				65,022			3.13	%

Taxable-equivalent net interest margin							3.70	%							3.21	%

Taxable-equivalent adjustment				(991	)							(646	)

Net interest income			$	72,146							$	64,376

Ratio of average interest-earning assets to average interest-bearing liabilities							134	%							131	%

NOTES TO ANALYSIS OF NET INTEREST INCOME:

⁽¹⁾	Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.

⁽²⁾	Average balances include nonaccrual loans.

⁽³⁾	Interest income on loans includes prepayment and late fees, where applicable.

ORRSTOWN FINANCIAL SERVICES, INC.

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)


(In thousands)	September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
Profitability for the quarter:
Net interest income	$	25,455		$	24,118		$	22,573		$	22,598		$	20,620
Provision for loan losses		1,500			1,775			300			1,100			365
Noninterest income		6,058			7,194			7,474			7,293			7,651
Noninterest expenses		36,412			18,794			19,364			20,290			19,035

(Loss) income before income taxes		(6,399	)		10,743			10,383			8,501			8,871
Income tax (benefit) expense		(1,571	)		1,872			2,015			1,795			1,679

Net (loss) income	$	(4,828	)	$	8,871		$	8,368		$	6,706		$	7,192

Financial ratios:
Return on average assets⁽¹⁾		(0.68	)%		1.25	%		1.20	%		0.93	%		0.98	%
Return on average equity⁽¹⁾		(7.92	)%		14.42	%		12.65	%		9.93	%		10.69	%
Net interest margin⁽¹⁾		3.92	%		3.68	%		3.49	%		3.35	%		3.03	%
Efficiency ratio		115.5	%		60.0	%		64.4	%		67.9	%		67.3	%

Per share information:
(Loss) income per common share:
Basic	$	(0.47	)	$	0.84		$	0.77		$	0.61		$	0.66
Diluted		(0.47	)		0.83			0.76			0.60			0.65
Book value		20.34			22.25			23.00			24.29			23.97
Tangible book value ⁽²⁾		18.34			20.23			21.03			22.32			21.98
Cash dividends paid		0.19			0.19			0.19			0.19			0.19
Average basic shares		10,369			10,610			10,860			10,939			10,979
Average diluted shares		10,369			10,744			11,007			11,113			11,122

⁽¹⁾	Annualized.

⁽²⁾	Non-GAAP based financial measure. Please refer to Appendix A - Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.

ORRSTOWN FINANCIAL SERVICES, INC.

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)

(continued)


	September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021		September 30, 2021
Noninterest income:
Service charges	$	1,216		$	1,194		$	1,073		$	935	$	993
Interchange income		1,014			1,064			981			1,080		1,030
Swap fee income		197			785			953			158		67
Wealth management income		2,953			2,894			2,869			2,897		2,917
Mortgage banking activities		(1,014	)		498			721			1,225		1,333
Other income		1,706			762			1,023			995		832
Investment securities (losses) gains		(14	)		(3	)		(146	)		3		479

Total noninterest income	$	6,058		$	7,194		$	7,474		$	7,293	$	7,651

Noninterest expenses:
Salaries and employee benefits	$	12,705		$	11,312		$	11,337		$	12,095	$	11,498
Occupancy, furniture and equipment		2,380			2,423			2,567			2,554		2,374
Data processing		1,192			1,165			1,053			1,020		990
Advertising and bank promotions		278			881			355			744		735
FDIC insurance		294			190			283			246		218
Professional services		887			722			808			693		562
Taxes other than income		488			108			564			392		16
Intangible asset amortization		272			281			292			303		314
Provision for legal settlement		13,000			—			—			—		—
Restructuring expenses		3,155			—			—			—		—
Other operating expenses		1,761			1,712			2,105			2,243		2,328

Total noninterest expenses	$	36,412		$	18,794		$	19,364		$	20,290	$	19,035

ORRSTOWN FINANCIAL SERVICES, INC.

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)

(continued)


	September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
Balance Sheet at quarter end:
Cash and cash equivalents	$	66,927		$	111,906		$	214,238		$	208,710		$	311,415
Restricted investments in bank stocks		6,469			6,500			6,791			7,252			7,051
Securities available for sale		503,596			512,698			529,730			472,438			445,018
Loans held for sale, at fair value		10,175			7,824			7,403			8,868			6,412
Loans:
Commercial real estate:
Owner occupied		313,125			287,825			256,526			238,668			196,585
Non-owner occupied		573,605			559,309			558,999			551,783			509,703
Multi-family		114,561			116,110			93,158			93,255			112,002
Non-owner occupied residential		105,267			109,141			102,269			106,112			100,088
Commercial and industrial ⁽¹⁾		378,574			379,729			443,170			485,728			540,205
Acquisition and development:
1-4 family residential construction		20,810			22,650			15,115			12,279			12,246
Commercial and land development		148,512			134,947			105,204			93,925			71,784
Municipal		12,683			12,957			14,626			14,989			13,631

Total commercial loans		1,667,137			1,622,668			1,589,067			1,596,739			1,556,244

Residential mortgage:
First lien		220,970			202,787			203,231			198,831			203,360
Home equity – term		5,869			5,996			5,820			6,081			7,079
Home equity – lines of credit		180,267			171,269			164,818			160,705			154,004
Installment and other loans		13,684			14,909			15,371			17,630			19,077

Total loans		2,087,927			2,017,629			1,978,307			1,979,986			1,939,764
Allowance for loan losses		(24,709	)		(23,279	)		(21,508	)		(21,180	)		(19,965	)

Net loans held-for-investment		2,063,218			1,994,350			1,956,799			1,958,806			1,919,799

Goodwill		18,724			18,724			18,724			18,724			18,724
Other intangible assets, net		3,338			3,610			3,891			4,183			4,486
Total assets		2,852,092			2,824,201			2,900,537			2,834,565			2,870,182
Total deposits		2,505,853			2,478,616			2,545,992			2,464,929			2,502,108
Borrowings		22,632			25,965			26,412			25,197			29,598
Subordinated notes		32,010			31,994			31,978			31,963			31,948
Total shareholders’ equity		217,378			237,527			254,804			271,656			268,569

⁽¹⁾	This balance includes $17.0 million, $30.2 million, $122.5 million, $189.9 million and $259.9 million of SBA PPP loans, net of deferred fees and costs, at September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively.

ORRSTOWN FINANCIAL SERVICES, INC.

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)

(continued)


	September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
Capital and credit quality measures⁽¹⁾:
Total risk-based capital:
Orrstown Financial Services, Inc		12.7	%		13.5	%		14.3	%		15.0	%		15.6	%
Orrstown Bank		12.9	%		13.3	%		13.8	%		14.0	%		14.7	%
Tier 1 risk-based capital:
Orrstown Financial Services, Inc		10.2	%		10.9	%		11.7	%		12.2	%		12.8	%
Orrstown Bank		11.8	%		12.2	%		12.7	%		12.9	%		13.5	%
Tier 1 common equity risk-based capital:
Orrstown Financial Services, Inc		10.2	%		10.9	%		11.7	%		12.2	%		12.8	%
Orrstown Bank		11.8	%		12.2	%		12.7	%		12.9	%		13.5	%
Tier 1 leverage capital:
Orrstown Financial Services, Inc		8.4	%		8.5	%		8.8	%		8.5	%		8.3	%
Orrstown Bank		9.6	%		9.5	%		9.5	%		8.9	%		8.7	%

Average equity to average assets		8.59	%		8.64	%		9.47	%		9.34	%		9.20	%
Allowance for loan losses to total loans		1.18	%		1.15	%		1.09	%		1.07	%		1.03	%
Total nonaccrual loans to total loans		0.25	%		0.27	%		0.28	%		0.33	%		0.47	%
Nonperforming assets to total assets		0.19	%		0.19	%		0.19	%		0.23	%		0.32	%
Allowance for loan losses to nonaccrual loans		466	%		432	%		390	%		328	%		219	%

Other information:
Net charge-offs (recoveries)	$	70		$	4		$	(28	)	$	(115	)	$	(219	)
Classified loans		19,576			19,682			23,421			23,050			26,910
Nonperforming and other risk assets:
Nonaccrual loans		5,303			5,387			5,510			6,449			9,116
Other real estate owned		—			—			—			—			—

Total nonperforming assets		5,303			5,387			5,510			6,449			9,116
Restructured loans still accruing		689			568			575			804			839
Loans past due 90 days or more and still accruing ⁽²⁾		232			322			238			1,201			362

Total nonperforming and other risk assets	$	6,224		$	6,277		$	6,323		$	8,454		$	10,317

(1)	Capital ratios are estimated, subject to regulatory filings.

(2)

Includes $0.2 million, $0.3 million, $0.2 million, $0.3 million and $0.4 million of purchased credit impaired loans at September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively. As of December 31, 2021, there was one loan for $0.9 million, which was in the process of collection and guaranteed by the SBA, and was subsequently collected during the first quarter of 2022.

Appendix A- Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations

As a result of acquisitions, the Company has intangible assets consisting of goodwill and core deposit and other intangible assets, before taxes, which totaled $22.1 million and $22.9 million at September 30, 2022 and December 31, 2021, respectively. Additionally, the Company incurred $3.2 million and $13.0 million in restructuring charges and provision for legal settlement, respectively, during the three and nine months ended September 30, 2022.

Management believes providing certain other “non-GAAP” financial information will assist investors in their understanding of the effect on recent financial results from non-recurring charges.

Tangible book value per common share and adjusted net income and associated ratios from the restructuring charge, as used by the Company in this report, are determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). While we believe this information is a useful supplement to GAAP based measures presented in this report, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to be determined in accordance with GAAP.

The following tables present the computation of each non-GAAP based measure:

(dollars and shares in thousands)


Tangible Book Value per Common Share	September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
Shareholders’ equity	$	217,378		$	237,527		$	254,804		$	271,656		$	268,569
Less: Goodwill		18,724			18,724			18,724			18,724			18,724
Other intangible assets		3,338			3,610			3,891			4,183			4,486
Related tax effect		(701	)		(758	)		(817	)		(878	)		(942	)

Tangible common equity (non-GAAP)	$	196,017		$	215,951		$	233,006		$	249,627		$	246,301


Common shares outstanding		10,686			10,676			11,079			11,183			11,205


Book value per share (most directly comparable GAAP based measure)	$	20.34		$	22.25		$	23.00		$	24.29		$	23.97
Intangible assets per share		2.00			2.02			1.97			1.97			1.99

Tangible book value per share (non-GAAP)	$	18.34		$	20.23		$	21.03		$	22.32		$	21.98


(dollars and shares in thousands)	September 30, 2022
Adjusted Ratios for Restructuring Charges and Provision for Legal Settlement	Three Months Ended			Nine Months Ended
Net (loss) income (A) ⁽²⁾	$	(4,828	)	$	12,411
Plus: Restructuring expenses (B)		3,155			3,155
Plus: Provision for legal settlement (B)		13,000			13,000
Less: Related tax effect (C)		(3,393	)		(3,393	)

Adjusted net income (D=A+B-C) ⁽³⁾	$	7,934		$	25,173


Average assets (E)	$	2,815,040		$	2,834,062
Return on average assets ⁽¹⁾ (= A / E) ⁽²⁾		(0.68	)%		0.59	%
Return on average assets, adjusted ⁽¹⁾ (= D / E) ⁽³⁾		1.12	%		1.19	%

Average equity (F)	$	241,866		$	252,169
Return on average equity ⁽¹⁾ (= A / F) ⁽²⁾		(7.92	)%		6.58	%
Return on average equity, adjusted ⁽¹⁾ (= D / F) ⁽³⁾		13.02	%		13.35	%

Weighted average shares - basic (G)		10,369			10,611
Basic (loss) earnings per share (= A / G) ⁽²⁾	$	(0.47	)	$	1.17
Basic earnings per share, adjusted (= D / G) ⁽³⁾	$	0.77		$	2.37

Weighted average shares - diluted (H)		10,369			10,758
Diluted (loss) earnings per share (= A / H) ⁽²⁾	$	(0.47	)	$	1.16
Diluted earnings per share, adjusted (= D / H) ⁽³⁾	$	0.75		$	2.34

Noninterest expense (I)	$	36,412		$	74,570
Less: Restructuring expenses (B)		(3,155	)		(3,155	)
Less: Provision for legal settlement (B)		(13,000	)		(13,000	)

Adjusted noninterest expense (J = I - B)	$	20,257		$	58,415


Net interest income (K)	$	25,455		$	72,146
Noninterest income (L)		6,058			20,726

Total operating income (M = K + L)	$	31,513		$	92,872

Efficiency ratio (= I / M) ⁽²⁾		115.5	%		80.3	%
Efficiency ratio, adjusted (= J / M) ⁽³⁾		64.3	%		62.9	%

(1)	Annualized

(2)	Most directly comparable GAAP-based measure

(3)	Non-GAAP measure