Bridgewater Bancshares, Inc. Announces First Quarter 2023 Net Income of $11.6 Million, $0.37 Diluted Earnings Per Common Share

About this update from Bridgewater Bancshares, Inc.

[{"type":"text","content":" ST. LOUIS PARK, Minn. --(BUSINESS WIRE)--\n Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $11.6 million for the first quarter of 2023, compared to $13.7 million for the fourth quarter of 2022, and $12.3 million for the first quarter of 2022. Earnings per diluted common share for the first quarter of 2023 were $0.37 , compared to $0.45 per diluted common share for the fourth quarter of 2022, and $0.39 per diluted common share for the same period in 2022.\n\n \n“While first quarter results included well-controlled expenses, superb asset quality, moderated loan growth, and expected net interest margin pressure, our focus was on supporting our clients and demonstrating the resiliency of our balance sheet and business model,” said Chairman, Chief Executive Officer, and President, Jerry Baack . “Bridgewater is a relationship-focused bank supporting a local real estate and small business client base. With a strong balance sheet, including a diversified loan portfolio, high level of insured deposits, and ample liquidity and borrowing capacity, we feel well-positioned to continue executing on our proven and successful business model.”\n\n \n \n \n First Quarter 2023 Financial Results \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Diluted \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Nonperforming \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n ROA \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n PPNR ROA (1) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n ROE \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n earnings per share \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Efficiency ratio (1) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n assets to total assets \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n 1.07 \n\n \n\n \n\n \n % \n\n \n\n \n\n \n \n\n \n\n \n\n \n 1.49 \n\n \n\n \n\n \n % \n\n \n\n \n\n \n \n\n \n\n \n\n \n 11.70 \n\n \n\n \n\n \n % \n\n \n\n \n\n \n \n\n \n\n \n\n \n $ \n\n \n\n \n\n \n 0.37 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n 46.2 \n\n \n\n \n\n \n % \n\n \n\n \n\n \n \n\n \n\n \n\n \n 0.02 \n\n \n\n \n\n \n % \n\n \n\n \n\n \n \n_____________________________________\n\n \n \n \n(1) Represents a non-GAAP financial measure. See \"Non-GAAP Financial Measures\" for further details.\n\n \n\n \n\n \n \n First Quarter 2023 Highlights \n\n \n \nAnnualized return on average assets (ROA) and annualized return on average shareholders’ equity (ROE) for the first quarter of 2023 were 1.07% and 11.70%, compared to ROA and ROE of 1.28% and 14.06%, respectively, for the fourth quarter of 2022. Annualized return on average tangible common equity, a non-GAAP financial measure, was 12.90% for the first quarter of 2023, compared to 15.86% for the fourth quarter of 2022.\n\n \n \nGross loans increased $114.9 million , or 13.1% annualized, from the fourth quarter of 2022.\n\n \n \nDeposits decreased slightly by $5.4 million , or 0.6% annualized, from the fourth quarter of 2022.\n\n \n \nNet interest margin (on a fully tax-equivalent basis) was 2.72%, compared to 3.16% in the fourth quarter of 2022.\n\n \n \nEfficiency ratio, a non-GAAP financial measure, was 46.2%, compared to 43.8% for the fourth quarter of 2022.\n\n \n \nNoninterest expense declined $1.0 million , or 6.7%, from the fourth quarter of 2022. Annualized noninterest expense to average assets was 1.31%, compared to 1.42% for the fourth quarter of 2022.\n\n \n \nA credit loss provision of $1.5 million was recorded to support continued loan growth in the first quarter of 2023. The allowance for credit losses to total loans was 1.36% at March 31, 2023 , compared to 1.34% at December 31, 2022 .\n\n \n \nAnnualized net loan charge-offs (recoveries) as a percentage of average loans were 0.00% for the first quarter of 2023 and for the fourth quarter of 2022.\n\n \n \nTangible book value per share, a non-GAAP financial measure, increased $0.26 , or 8.9% annualized, to $11.95 at March 31, 2023 compared to $11.69 at December 31, 2022 .\n\n \n \n \n \n Key Financial Measures \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n As of and for the Three Months Ended \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Per Common Share Data \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBasic Earnings Per Share\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n0.38\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n0.46\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n0.40\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nDiluted Earnings Per Share\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.37\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.45\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.39\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBook Value Per Share\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.05\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.80\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.12\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTangible Book Value Per Share (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.95\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.69\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.01\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBasic Weighted Average Shares Outstanding\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,726,894\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,558,983\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,123,809\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nDiluted Weighted Average Shares Outstanding\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,490,046\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,527,306\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29,156,085\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nShares Outstanding at Period End\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,845,244\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,751,950\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,150,389\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Selected Performance Ratios \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nReturn on Average Assets (Annualized)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.07\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.28\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.42\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nPre-Provision Net Revenue Return on Average Assets (Annualized) (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.49\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.82\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.12\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nReturn on Average Shareholders' Equity (Annualized)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.70\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14.06\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.98\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nReturn on Average Tangible Common Equity (Annualized) (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.90\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15.86\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14.56\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nYield on Interest Earning Assets (2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.91\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.67\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.13\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nYield on Total Loans, Gross (2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.06\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.87\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.45\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCost of Total Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.01\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.31\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.43\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCost of Funds\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.41\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.67\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.59\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet Interest Margin (2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.72\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.16\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.60\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCore Net Interest Margin (1)(2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.62\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.05\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.34\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nEfficiency Ratio (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n46.2\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n43.8\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n42.4\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNoninterest Expense to Average Assets (Annualized)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.31\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.42\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.56\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nLoan to Deposit Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n108.0\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n104.5\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n98.4\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCore Deposits to Total Deposits (3)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n72.4\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n74.6\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n84.3\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTangible Common Equity to Tangible Assets (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7.23\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7.48\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8.60\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Capital Ratios (Bank Only) (4) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTier 1 Leverage Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10.61\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n10.76\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n11.13\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nCommon Equity Tier 1 Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.37\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.29\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.42\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTier 1 Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.37\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.29\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.42\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.62\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.47\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.65\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Capital Ratios (Consolidated) (4) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTier 1 Leverage Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9.41\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n9.55\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n10.78\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nCommon Equity Tier 1 Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8.48\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8.40\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9.13\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTier 1 Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10.08\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10.03\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.08\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.25\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.15\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15.02\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n_____________________________________\n\n \n \n \n(1)\n\n \n\n \n\n \nRepresents a non-GAAP financial measure. See \"Non-GAAP Financial Measures\" for further details.\n\n \n\n \n\n \n \n \n(2)\n\n \n\n \n\n \nAmounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.\n\n \n\n \n\n \n \n \n(3)\n\n \n\n \n\n \nCore deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000 .\n\n \n\n \n\n \n \n \n(4)\n\n \n\n \n\n \nPreliminary data. Current period subject to change prior to filings with applicable regulatory agencies.\n\n \n\n \n\n \n \n \n \n Selected Financial Data \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n December31, \n\n \n\n \n\n \n \n September 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \n Selected Balance Sheet Data \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,602,899\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,345,662\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,128,987\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,883,264\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,607,920\n\n \n\n \n\n \n \n \nTotal Loans, Gross\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,684,360\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,569,446\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,380,082\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,225,885\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,987,967\n\n \n\n \n\n \n \n \nAllowance for Credit Losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n50,148\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n47,996\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n46,491\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n44,711\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n41,692\n\n \n\n \n\n \n \n \n Goodwill and Other Intangibles\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,866\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,914\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,962\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,009\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,057\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nDeposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,411,123\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,416,543\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,305,074\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,201,953\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,035,611\n\n \n\n \n\n \n \n \nTangible Common Equity (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n332,626\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n324,636\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n312,531\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n305,360\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n309,870\n\n \n\n \n\n \n \n \nTotal Shareholders' Equity\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n402,006\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n394,064\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n382,007\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n374,883\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n379,441\n\n \n\n \n\n \n \n \nAverage Total Assets - Quarter-to-Date\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,405,234\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,251,345\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,948,201\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,743,575\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,513,798\n\n \n\n \n\n \n \n \nAverage Shareholders' Equity - Quarter-to-Date\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n403,533\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n387,589\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n384,020\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n381,448\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n383,024\n\n \n\n \n\n \n \n_____________________________________\n\n \n \n \n(1)\n\n \n\n \n\n \nRepresents a non-GAAP financial measure. See \"Non-GAAP Financial Measures\" for further details.\n\n \n\n \n\n \n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n For the Three Months Ended \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \n Selected Income Statement Data \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest Income\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n51,992\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n48,860\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n34,694\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest Expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23,425\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,967\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,514\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet Interest Income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,567\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n32,893\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n30,180\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nProvision for Credit Losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n625\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,500\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,675\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet Interest Income after Provision for Credit Losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,942\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n31,393\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,505\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNoninterest Income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,943\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,738\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,557\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNoninterest Expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14,183\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,203\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13,508\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nIncome Before Income Taxes\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,702\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n17,928\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n16,554\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nProvision for Income Taxes\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,060\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,193\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,292\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet Income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,642\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13,735\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,262\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nPreferred Stock Dividends\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(1,013\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(1,014\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(1,013\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nNet Income Available to Common Shareholders\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n10,629\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n12,721\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n11,249\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n Income Statement \n\n \n Net Interest Income \n\n \nNet interest income was $28.6 million for the first quarter of 2023, a decrease of $4.3 million , or 13.2%, from $32.9 million in the fourth quarter of 2022, and a decrease of $1.6 million , or 5.3%, from $30.2 million in the first quarter of 2022. The linked-quarter and year-over-year decrease in net interest income was primarily due to higher rates paid on deposits and increased borrowings in the rising interest rate environment. Average interest earning assets were $4.32 billion for the first quarter of 2023, an increase of $146.1 million , or 3.5%, from $4.18 billion for the fourth quarter of 2022, and an increase of $892.9 million , or 26.0%, from $3.43 billion for the first quarter of 2022. The linked-quarter increase in average interest earning assets was primarily due to continued growth in the loan portfolio. The year-over-year increase in average interest earning assets was primarily due to strong growth in the loan portfolio and purchases of investment securities, offset partially by the forgiveness of PPP loans and the reduction of cash balances.\n\n \nNet interest margin (on a fully tax-equivalent basis) for the first quarter of 2023 was 2.72%, a 44 basis point decrease from 3.16% in the fourth quarter of 2022, and an 88 basis point decrease from 3.60% in the first quarter of 2022. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees and PPP balances, interest, and fees, for the first quarter of 2023 was 2.62%, a 43 basis point decrease from 3.05% in the fourth quarter of 2022, and a 72 basis point decrease from 3.34% in the first quarter of 2022. The decline in the margin when compared to both prior periods was primarily due to higher funding costs and increased borrowings in the rising interest rate environment, offset partially by higher earning asset yields.\n\n \nInterest income was $52.0 million for the first quarter of 2023, an increase of $3.1 million , or 6.4%, from $48.9 million in the fourth quarter of 2022, and an increase of $17.3 million , or 49.9%, from $34.7 million in the first quarter of 2022. The yield on interest earning assets (on a fully tax-equivalent basis) was 4.91% in the first quarter of 2023, compared to 4.67% in the fourth quarter of 2022, and 4.13% in the first quarter of 2022. The linked-quarter increase in the yield on interest earning assets was primarily due to the increase in market interest rates resulting in new loan originations, loans repricing, and investment purchases to be at yields accretive to the existing portfolios. The year-over-year increase in the yield on interest earning assets was primarily due to growth and repricing of the loan and securities portfolios in the rising interest rate environment, offset partially by the lower recognition of PPP origination fees.\n\n \nLoan interest income and loan fees remain the primary contributing factors to the changes in the yield on interest earning assets. The aggregate loan yield, excluding PPP loans, increased to 5.06% in the first quarter of 2023, which was 20 basis points higher than 4.86% in the fourth quarter of 2022, and 66 basis points higher than 4.40% in the first quarter of 2022. While loan fees have historically maintained a relatively stable contribution to the aggregate loan yield, the recent periods saw fewer loan prepayments, which historically has accelerated the recognition of loan fees. Despite the decrease in fee recognition, the Company is encouraged that the core loan yield continues to rise as new loan originations and the existing portfolio reprice in the higher rate environment.\n\n \nA summary of interest and fees recognized on loans, excluding PPP loans, for the periods indicated is as follows:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Three Months Ended \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.95\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.74\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.42\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.17\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.15\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nFees\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.11\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.12\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.17\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.26\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.25\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nYield on Loans, Excluding PPP Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.06\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.86\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.59\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.43\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.40\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \nInterest expense was $23.4 million for the first quarter of 2023, an increase of $7.5 million , or 46.7%, from $16.0 million in the fourth quarter of 2022, and an increase of $18.9 million , or 418.9%, from $4.5 million in the first quarter of 2022. The cost of interest bearing liabilities increased 81 basis points on a linked-quarter basis from 2.22% in the fourth quarter of 2022 to 3.03% in the first quarter of 2023, primarily due to higher rates paid on deposits and the increased utilization of federal funds purchased and FHLB advances in the rising interest rate environment. On a year-over-year basis, the cost of interest bearing liabilities increased 223 basis points from 0.80% in the first quarter of 2022 to 3.03% in the first quarter of 2023, primarily due to the rapid increase in market interest rates that occurred between the periods, which impacted all funding sources.\n\n \nInterest expense on deposits was $16.4 million for the first quarter of 2023, an increase of $5.6 million , or 51.9%, from $10.8 million in the fourth quarter of 2022, and an increase of $13.2 million , or 418.4%, from $3.2 million in the first quarter of 2022. The cost of total deposits increased 70 basis points on a linked-quarter basis from 1.31% in the fourth quarter of 2022, to 2.01% in the first quarter of 2023, primarily due to the rising interest rate environment and increased competition from other market alternatives. On a year-over-year basis, the cost of total deposits increased 158 basis points from 0.43% in the first quarter of 2022, to 2.01% in the first quarter of 2023, primarily due to the upward repricing of the deposit portfolio in the higher interest rate environment.\n\n \nA summary of the Company’s average balances, interest yields and rates, and net interest margin for the three months ended March 31, 2023 , December 31, 2022 , and March 31, 2022 is as follows:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n For the Three Months Ended \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n\n \n \n\n \n\n \n\n \n Interest \n\n \n\n \n\n \n \n\n \n\n \n\n \n Yield/ \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n\n \n \n\n \n\n \n\n \n Interest \n\n \n\n \n\n \n \n\n \n\n \n\n \n Yield/ \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n\n \n \n\n \n\n \n\n \n Interest \n\n \n\n \n\n \n \n\n \n\n \n\n \n Yield/ \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Balance \n\n \n\n \n\n \n \n\n \n\n \n\n \n & Fees \n\n \n\n \n\n \n \n\n \n\n \n\n \n Rate \n\n \n\n \n\n \n \n\n \n\n \n\n \n Balance \n\n \n\n \n\n \n \n\n \n\n \n\n \n & Fees \n\n \n\n \n\n \n \n\n \n\n \n\n \n Rate \n\n \n\n \n\n \n \n\n \n\n \n\n \n Balance \n\n \n\n \n\n \n \n\n \n\n \n\n \n & Fees \n\n \n\n \n\n \n \n\n \n\n \n\n \n Rate \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Interest Earning Assets: \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCash Investments\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n63,253\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n447\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.86\n\n \n\n \n\n \n%\n\n \n\n \n\n \n$\n\n \n\n \n\n \n65,393\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n366\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.22\n\n \n\n \n\n \n%\n\n \n\n \n\n \n$\n\n \n\n \n\n \n80,497\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n26\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.13\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n Investment Securities :\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Taxable Investment Securities \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n574,242\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,958\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.21\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n540,601\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,268\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.87\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n373,021\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,255\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.45\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Tax-Exempt Investment Securities (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29,803\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n330\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.49\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n67,867\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n728\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.26\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n71,591\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n779\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.41\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Total Investment Securities \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n604,045\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,288\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.22\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n608,468\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,996\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.91\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n444,612\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,034\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.77\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nPaycheck Protection Program Loans (2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n999\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.00\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,109\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n48\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n17.06\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n18,140\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n563\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.58\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nLoans (1)(2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,629,447\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n45,263\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.06\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,481,041\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n42,654\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.86\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,881,845\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n31,275\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.40\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,630,446\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n45,265\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.06\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,482,150\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n42,702\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.87\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,899,985\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n31,838\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.45\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nFederal Home Loan Bank Stock \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n25,962\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n372\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.81\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n21,633\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n163\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.99\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,680\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n54\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.84\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Interest Earning Assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,323,706\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n52,372\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.91\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4,177,644\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n49,227\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.67\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3,430,774\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n34,952\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.13\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNoninterest Earning Assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n81,528\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n73,701\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n83,024\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,405,234\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,251,345\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,513,798\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Interest Bearing Liabilities: \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nDeposits:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest Bearing Transaction Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n461,372\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,780\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.44\n\n \n\n \n\n \n%\n\n \n\n \n\n \n$\n\n \n\n \n\n \n464,631\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,013\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.72\n\n \n\n \n\n \n%\n\n \n\n \n\n \n$\n\n \n\n \n\n \n566,279\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n597\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.43\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nSavings and Money Market Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,044,794\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,499\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.52\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,048,227\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,533\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.72\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n876,580\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n918\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.42\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTime Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n248,174\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,069\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.75\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n281,334\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,007\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.42\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n288,914\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n745\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.05\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBrokered Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n743,465\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,026\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.29\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n537,351\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,228\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.38\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n406,648\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n898\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.90\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Interest Bearing Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,497,805\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n16,374\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.66\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,331,543\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10,781\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.83\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,138,421\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,158\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.60\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nFederal Funds Purchased\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n415,111\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,944\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.83\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n340,471\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,379\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.94\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10,600\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.35\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNotes Payable\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13,750\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n263\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7.77\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,359\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n202\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7.04\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nFHLB Advances\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n128,222\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n861\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.72\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n94,103\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n575\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.42\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n42,500\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n150\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.43\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSubordinated Debentures\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n78,945\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n983\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.05\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n81,242\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,030\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.03\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n92,286\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,197\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.26\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Interest Bearing Liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,133,833\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23,425\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.03\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n2,858,718\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,967\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.22\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n2,283,807\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,514\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.80\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n Noninterest Bearing Liabilities: \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNoninterest Bearing Transaction Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n813,598\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n943,232\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n822,488\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nOther Noninterest Bearing Liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n54,270\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n61,806\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n24,479\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Noninterest Bearing Liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n867,868\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,005,038\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n846,967\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nShareholders' Equity\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n403,533\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n387,589\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n383,024\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Liabilities and Shareholders' Equity\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,405,234\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,251,345\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,513,798\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet Interest Income / Interest Rate Spread\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,947\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.88\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n33,260\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.45\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n30,438\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.33\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNet Interest Margin (3)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.72\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.16\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.60\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTaxable Equivalent Adjustment:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Tax-Exempt Investment Securities and Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(380\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(367\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(258\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet Interest Income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n28,567\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n32,893\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n30,180\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n_____________________________________\n\n \n \n \n(1)\n\n \n\n \n\n \nInterest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21%.\n\n \n\n \n\n \n \n \n(2)\n\n \n\n \n\n \nAverage loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.\n\n \n\n \n\n \n \n \n(3)\n\n \n\n \n\n \nNet interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.\n\n \n\n \n\n \n \n Provision for Credit Losses \n\n \nOn January 1, 2023 , the Company adopted Accounting Standards Update No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments,” more commonly referred to as “CECL.” Upon adoption of CECL, the Company’s allowance for credit losses on loans increased $650,000 and the allowance on unfunded commitments increased $4.9 million . The tax-effected impact of these two items totaled $3.9 million and was recorded as an adjustment to retained earnings as of January 1, 2023 .\n\n \nThe provision for credit losses was $1.5 million for both the first quarter of 2023 and the fourth quarter of 2022, compared to $1.7 million in the first quarter of 2022. The provision recorded in the first quarter of 2023 was primarily attributable to the more moderated growth of the loan portfolio. The allowance for credit losses to total loans was 1.36% at March 31, 2023 , compared to 1.34% at December 31, 2022 , and 1.40% at March 31, 2022 .\n\n \nThe following table presents the activity in the Company’s allowance for credit losses for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Three Months Ended \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \nBalance at Beginning of Period\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n47,996\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n46,491\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n40,020\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nImpact of Adopting CECL\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n650\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nProvision for Credit Losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,500\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,500\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,675\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCharge-offs\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(4\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(3\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(15\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nRecoveries\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBalance at End of Period\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n50,148\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n47,996\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n41,692\n\n \n\n \n\n \n \n\n \n\n \n\n \n \nThe provision for unfunded commitments was a negative provision of ( $875,000 ) for the first quarter of 2023 and zero for both the fourth quarter of 2022 and first quarter of 2022. The negative provision during the quarter was due to a reduction in outstanding unfunded commitments primarily attributable to the migration to funded loans.\n\n \n Noninterest Income \n\n \nNoninterest income was $1.9 million for the first quarter of 2023, an increase of $205,000 from $1.74 million for the fourth quarter of 2022, and an increase of $386,000 from $1.6 million for the first quarter of 2022. The linked-quarter increase was primarily due to an increase in letter of credit fees and FHLB prepayment income, offset partially by a decrease in other income. The year-over-year increase was primarily due to increased letter of credit fees and FHLB prepayment income, offset partially by no recorded swap fees.\n\n \nThe following table presents the major components of noninterest income for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Three Months Ended \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \nNoninterest Income:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCustomer Service Fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n349\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n344\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n281\n\n \n\n \n\n \n \n \n Net Gain (Loss) on Sales of Securities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(56\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n30\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \nLetter of Credit Fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n634\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n358\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n242\n\n \n\n \n\n \n \n \nDebit Card Interchange Fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n138\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n148\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n133\n\n \n\n \n\n \n \n \nSwap Fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n557\n\n \n\n \n\n \n \n \nBank-Owned Life Insurance\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n234\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n238\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n148\n\n \n\n \n\n \n \n \nFHLB Prepayment Income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n299\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \nOther Income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n345\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n620\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n196\n\n \n\n \n\n \n \n \nTotals\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,943\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,738\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,557\n\n \n\n \n\n \n \n Noninterest Expense \n\n \nNoninterest expense was $14.2 million for the first quarter of 2023, a decrease of $1.0 million from $15.2 million for the fourth quarter of 2022, and an increase of $675,000 from $13.5 million for the first quarter of 2022. The linked-quarter decrease was primarily due to decreases in salaries and employee benefits resulting from lower discretionary incentive accruals. The year-over-year increase was primarily attributable to increases in the FDIC insurance assessment and derivative collateral fees, offset partially by declines in marketing and advertising and other expense.\n\n \nThe following table presents the major components of noninterest expense for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Three Months Ended \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \nNoninterest Expense:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSalaries and Employee Benefits\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,815\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n9,821\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,694\n\n \n\n \n\n \n \n \nOccupancy and Equipment\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,209\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,177\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,085\n\n \n\n \n\n \n \n \nFDIC Insurance Assessment\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n665\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n360\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n360\n\n \n\n \n\n \n \n \nData Processing\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n357\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n371\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n297\n\n \n\n \n\n \n \n \nProfessional and Consulting Fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n755\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n635\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n696\n\n \n\n \n\n \n \n \nDerivative Collateral Fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n380\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n535\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2\n\n \n\n \n\n \n \n \nInformation Technology and Telecommunications\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n683\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n673\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n578\n\n \n\n \n\n \n \n \nMarketing and Advertising\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n262\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n403\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n626\n\n \n\n \n\n \n \n \nIntangible Asset Amortization\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n48\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n48\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n48\n\n \n\n \n\n \n \n \nAmortization of Tax Credit Investments\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n114\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n114\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n117\n\n \n\n \n\n \n \n \nOther Expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n895\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,066\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,005\n\n \n\n \n\n \n \n \nTotals\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n14,183\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n15,203\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n13,508\n\n \n\n \n\n \n \nThe Company had 246 full-time equivalent employees at both March 31, 2023 and December 31, 2022 , and 229 employees at March 31, 2022 . The efficiency ratio, a non-GAAP financial measure, was 46.2% for the first quarter of 2023, compared to 43.8% for the fourth quarter of 2022, and 42.4% for the first quarter of 2022.\n\n \n Income Taxes \n\n \nThe effective combined federal and state income tax rate for the first quarter of 2023 was 25.9%, an increase from 23.4% for the fourth quarter of 2022 and consistent with 25.9% for the first quarter of 2022.\n\n \n Balance Sheet \n\n \nTotal assets at March 31, 2023 were $4.60 billion , a 5.9% increase from $4.35 billion at December 31, 2022 , and a 27.6% increase from $3.61 billion at March 31, 2022 . The linked-quarter increase in total assets was primarily due to continued loan growth and an increase in cash and cash equivalent balances. The year-over-year increase in total assets was primarily due to strong loan growth, purchases of investment securities and an increase in cash and cash equivalent balances.\n\n \nTotal gross loans at March 31, 2023 were $3.68 billion , an increase of $114.9 million , or 3.2%, over total gross loans of $3.57 billion at December 31, 2022 , and an increase of $696.4 million , or 23.3%, over total gross loans of $2.99 billion at March 31, 2022 . The increase in the loan portfolio during the first quarter of 2023 was primarily due to growth across all segments.\n\n \nThe following table presents the dollar composition of the Company’s loan portfolio, by category, at the dates indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2022 \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCommercial\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n454,193\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n435,344\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n412,448\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n403,569\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n363,290\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nPaycheck Protection Program\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n963\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,049\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,192\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,860\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,309\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nConstruction and Land Development \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n312,277\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n295,554\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n280,380\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n305,552\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n272,333\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n1-4 Family Construction \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n85,797\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n70,242\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55,177\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n53,639\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n48,798\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nReal Estate Mortgage:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n1 - 4 Family Mortgage\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n380,210\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n355,474\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n341,102\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n334,815\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n312,201\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nMultifamily\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,320,081\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,306,738\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,230,509\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,087,865\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,012,623\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCRE Owner Occupied\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n158,650\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n149,905\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n151,088\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n142,214\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n117,969\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCRE Nonowner Occupied\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n962,671\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n947,008\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n900,691\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n886,432\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n840,463\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Real Estate Mortgage Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,821,612\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,759,125\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,623,390\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,451,326\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,283,256\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nConsumer and Other\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9,518\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,132\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,495\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,939\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,981\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Loans, Gross\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,684,360\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,569,446\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,380,082\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,225,885\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,987,967\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAllowance for Loan Losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(50,148\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(47,996\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(46,491\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(44,711\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(41,692\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nNet Deferred Loan Fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(8,735\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(9,293\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(9,088\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(9,536\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(9,065\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nTotal Loans, Net\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,625,477\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,512,157\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,324,503\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,171,638\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,937,210\n\n \n\n \n\n \n \n\n \n\n \n\n \n \nTotal deposits at March 31, 2023 were $3.41 billion , a decrease of $5.4 million , or 0.2%, over total deposits of $3.42 billion at December 31, 2022 , and an increase of $375.5 million , or 12.4%, over total deposits of $3.04 billion at March 31, 2022 . Deposits decreased slightly in the first quarter of 2023 primarily due to a decrease in noninterest bearing deposits and savings and money market deposits, offset by an increase in interest bearing deposits and brokered deposits. Brokered deposits were being used as a supplemental funding source, as needed, to support the loan portfolio growth. Uninsured deposits as of March 31, 2023 were 24% of total deposits, down from 38% as of December 31, 2022 .\n\n \nThe following table presents the dollar composition of the Company’s deposit portfolio, by category, at the dates indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2022 \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNoninterest Bearing Transaction Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n742,198\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n884,272\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n961,084\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n961,998\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n835,482\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest Bearing Transaction Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n630,037\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n451,992\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n510,396\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n522,151\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n598,402\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSavings and Money Market Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n913,013\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,031,873\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,077,333\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n952,138\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n890,926\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTime Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n266,213\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n272,253\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n293,052\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n272,424\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n286,674\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBrokered Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n859,662\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n776,153\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n463,209\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n493,242\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n424,127\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,411,123\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,416,543\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,305,074\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,201,953\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,035,611\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n Capital \n\n \nTotal shareholders’ equity at March 31, 2023 was $402.0 million , an increase of $7.9 million , or 2.0%, compared to total shareholders’ equity of $394.1 million at December 31, 2022 , and an increase of $22.6 million , or 5.9%, over total shareholders’ equity of $379.4 million at March 31, 2022 . The linked-quarter increase was due to net income retained, offset partially by the adoption of CECL and preferred stock dividends. The year-over-year increase was due to net income retained and unrealized gains in the derivatives portfolio, offset partially by an increase in unrealized losses in the securities portfolio, stock repurchases, the adoption of CECL and preferred stock dividends. The Company did not purchase any shares of its common stock during the first quarter of 2023.\n\n \nTangible book value per share, a non-GAAP financial measure, was $11.95 as of March 31, 2023 , an increase of 2.2% from $11.69 as of December 31, 2022 , and an increase of 8.5% from $11.01 as of March 31, 2022 . The linked-quarter and year-over-year increases occurred despite the market value depreciation of the securities portfolio driven by the rapidly rising interest rate environment. Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.23% at March 31, 2023 , compared to 7.48% at December 31, 2022 , and 8.60% at March 31, 2022 .\n\n \nToday, the Company also announced that its Board of Directors declared a quarterly cash dividend on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A (Series A Preferred Stock). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depositary share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on June 1, 2023 to shareholders of record of the Series A Preferred Stock at the close of business on May 15, 2023 .\n\n \n Liquidity \n\n \nTotal on- and off-balance sheet liquidity was $1.92 billion as of March 31, 2023 , compared to $1.38 billion at December 31, 2022 and $1.44 billion at March 31, 2022 . During the first quarter of 2023, the Company took a number of actions to increase its total liquidity by more than $500 million , including pledging loans and securities to create additional borrowing capacity at the Federal Reserve Bank and increasing its cash on the balance sheet. The Company did not utilize the Bank Term Funding Program (BTFP) or Federal Reserve Discount Window during the first quarter of 2023.\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n Primary Liquidity—On-Balance Sheet \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2022 \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n September 30, 2022 \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n June 30, 2022 \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n March 31, 2022 \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nCash and Cash Equivalents\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n177,116\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n48,090\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n36,332\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n43,168\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n50,312\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nSecurities Available for Sale\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n559,430\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n548,613\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n542,007\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n482,583\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n459,090\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nLess: Pledged Securities \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(234,452\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nTotal Primary Liquidity\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n502,094\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n596,703\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n578,339\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n525,751\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n509,402\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nRatio of Primary Liquidity to Total Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14.7\n\n \n\n \n\n \n \n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n17.5\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n17.5\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n16.4\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n16.8\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n Secondary Liquidity—Off-Balance Sheet \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n Borrowing Capacity \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nNet Secured Borrowing Capacity with the FHLB\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n246,795\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n390,898\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n426,604\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n569,076\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n542,489\n\n \n\n \n\n \n \n \n \n \nNet Secured Borrowing Capacity with the Federal Reserve Bank \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n990,685\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n157,827\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n156,534\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n169,766\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n159,328\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nUnsecured Borrowing Capacity with Correspondent Lenders\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n158,000\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n208,000\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n208,000\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n208,000\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n208,000\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nSecured Borrowing Capacity with Correspondent Lender\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n26,250\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n26,250\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n40,000\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n25,000\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n25,000\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nTotal Secondary Liquidity\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,421,730\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n782,975\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n831,138\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n971,842\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n934,817\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nTotal Primary and Secondary Liquidity\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,923,824\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,379,678\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,409,477\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,497,593\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,444,219\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nRatio of Primary and Secondary Liquidity to Total Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n56.4\n\n \n\n \n\n \n \n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n40.4\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n42.6\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n46.8\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n47.6\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n Asset Quality \n\n \nAnnualized net charge-offs (recoveries) as a percentage of average loans were 0.00% for the first quarter of 2023, fourth quarter of 2022 and first quarter of 2022. At March 31, 2023 , the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $809,000 , or 0.02% of total assets, as compared to $639,000 , or 0.01% of total assets at December 31, 2022 , and $706,000 , or 0.02% of total assets at March 31, 2022 .\n\n \nLoans that have potential weaknesses that warrant a watchlist risk rating at March 31, 2023 totaled $27.6 million , compared to $32.3 million at December 31, 2022 , and $46.8 million at March 31, 2022 . The increased uncertainty in the economic environment may result in future watchlist or adverse classifications in the loan portfolio. Loans that warranted a substandard risk rating at March 31, 2023 totaled $36.3 million , compared to $28.0 million at December 31, 2022 , and $18.6 million at March 31, 2022 . The linked-quarter increase was primarily due to the downgrade of one loan relationship.\n\n \nThe following table presents a summary of asset quality measurements at the dates indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n As of and for the Three Months Ended \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n September 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n Selected Asset Quality Data \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nLoans 30-89 Days Past Due\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n21\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n186\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n38\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n225\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n13\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nLoans 30-89 Days Past Due to Total Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.00\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.01\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.00\n\n \n\n \n\n \n \n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.01\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.00\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n \nNonperforming Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n693\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n639\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n663\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n688\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n706\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nNonperforming Loans to Total Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n \nForeclosed Assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n116\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nNonaccrual Loans to Total Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n \nNonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nNonperforming Assets (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n809\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n639\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n663\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n688\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n706\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nNonperforming Assets to Total Assets (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.01\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.02\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n \nAllowance for Credit Losses to Total Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.36\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.34\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.38\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.39\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.40\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nAllowance for Credit Losses to Nonaccrual Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,236.36\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,511.11\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,012.22\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,498.69\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,905.38\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nNet Loan Charge-Offs (Recoveries) (Annualized) to Average Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.00\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.00\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(0.03\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.00\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.00\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n_____________________________________\n\n \n \n \n(1)\n\n \n\n \n\n \nNonperforming assets are defined as nonaccrual loans plus loans 90 days past due and still accruing plus foreclosed assets.\n\n \n\n \n\n \n \nThe Company will host a conference call to discuss its first quarter 2023 financial results on Thursday, April 27, 2023 at 8:00 a.m. Central Time . The conference call can be accessed by dialing 877-270-2148 and requesting to join the Bridgewater Bancshares earnings call. To listen to a replay of the conference call via phone, please dial 877-344-7529 and enter access code 7417750. The replay will be available through May 4, 2023 . The conference call will also be available via a live webcast on the Investor Relations section of the Company’s website, investors.bridgewaterbankmn.com , and archived for replay.\n\n \n About the Company \n\n \n Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a St. Louis Park, Minnesota -based financial holding company. Bridgewater's banking subsidiary, Bridgewater Bank , is a premier, full-service Twin Cities bank dedicated to serving the diverse needs of commercial real estate investors, entrepreneurs, business clients and successful individuals. By pairing a range of deposit, lending, and business services solutions with a responsive service model, Bridgewater has seen continuous growth and profitability. With total assets of $4.6 billion and seven branches as of March 31, 2023 , Bridgewater is considered one of the largest locally led banks in the State of Minnesota , and has received numerous awards for its growth, banking services, and esteemed corporate culture.\n\n \n Use of Non-GAAP financial measures \n\n \nIn addition to the results presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company’s operating performance and trends, and to facilitate comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables.\n\n \n Forward-Looking Statements \n\n \nThis earnings release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of those words or other comparable words of a future or forward-looking nature.\n\n \nForward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: interest rate risk, including the effects of recent and anticipated rate increases by the Federal Reserve ; fluctuations in the values of the securities held in our securities portfolio, including as the result of rising interest rates, which has resulted in unr...

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