Bridgewater Bancshares, Inc. Announces Second Quarter 2023 Net Income of $9.8 Million, $0.31 Diluted Earnings Per Common Share

About this update from Bridgewater Bancshares, Inc.

[{"type":"text","content":" \n Second Quarter 2023 Highlights \n\n \n \nAnnualized return on average assets (ROA) of 0.88%, compared to 1.07% for the first quarter of 2023.\n\n \n \nAnnualized return on average shareholders’ equity (ROE) of 9.69%, compared to 11.70% for the first quarter of 2023, and annualized return on average tangible common equity (ROATCE)(1) of 10.48%, compared to 12.90% for the first quarter of 2023.\n\n \n \nGross loans increased $51.9 million , or 5.6% annualized, from the first quarter of 2023.\n\n \n \nDeposits increased by $166.8 million , or 19.6% annualized, from the first quarter of 2023, including an increase of core deposits(2) of $45.3 million , or 7.4% annualized.\n\n \n \nTotal borrowing capacity of $1.5 billion at June 30, 2023 , compared to $783.0 million at December 31, 2022 .\n\n \n \nNet interest margin (on a fully tax-equivalent basis) of 2.40%, compared to 2.72% in the first quarter of 2023.\n\n \n \nEfficiency ratio(1) of 52.7%, compared to 46.2% for the first quarter of 2023.\n\n \n \nNoninterest expense increased slightly by $205,000 , or 1.4%, from the first quarter of 2023, with annualized noninterest expense to average assets of 1.29%, compared to 1.31% for the first quarter of 2023.\n\n \n \nA credit loss provision of $550,000 was recorded to support continued loan growth, with allowance for credit losses to total loans of 1.36% at both June 30, 2023 and March 31, 2023 .\n\n \n \nAnnualized net loan charge-offs (recoveries) as a percentage of average loans of 0.00% for the second quarter of 2023, in-line with the first quarter of 2023.\n\n \n \nNonperforming assets to total assets of 0.02% at June 30, 2023 and March 31, 2023 .\n\n \n \nTangible book value per share(1) of $12.15 at June 30, 2023 , an increase of $0.20 , or 6.7% annualized, compared to $11.95 at March 31, 2023 .\n\n \n \n(1) Represents a non-GAAP financial measure. See \"Non-GAAP Financial Measures\" for further details.\n(2) Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000 .\n\n \n 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 $9.8 million for the second quarter of 2023, compared to $11.6 million for the first quarter of 2023, and $12.9 million for the second quarter of 2022. Earnings per diluted common share for the second quarter of 2023 were $0.31 , compared to $0.37 per diluted common share for the first quarter of 2023, and $0.41 per diluted common share for the same period in 2022.\n\n \n“Bridgewater’s second quarter results were highlighted by several improving financial trends as we continue to manage the business through a challenging banking environment,” said Chairman, Chief Executive Officer, and President, Jerry Baack . “The overall composition of our balance sheet improved with a strong inflow of deposits, including growth in core deposits, and a reduction in overall borrowings. While our net interest margin remained under pressure, we saw the pace of compression slow noticeably on a month-to-month basis during the quarter. In addition, noninterest expense was again well controlled and asset quality remained superb.”\n\n \n“During the quarter, our teams maintained their focus on supporting and growing our client base, both by proactively engaging with our existing clients and cultivating new relationships across the Twin Cities market. In July, we also relocated our downtown Minneapolis branch to an enhanced location with more space to better serve our clients. We believe our proven ability to develop strong client relationships, combined with encouraging financial trends, will continue to drive success moving forward.”\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 \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \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 As of and for the Six 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 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 \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \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 June 30 , \n\n \n\n \n\n \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 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 \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 \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\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 \n0.32\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 \n0.43\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n0.70\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n0.83\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 \n0.31\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 \n0.41\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.69\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 \nBook Value Per Share\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.25\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 \n11.14\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.25\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.14\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 \n12.15\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 \n11.03\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 \n12.15\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.03\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 \n27,886,425\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 \n27,839,260\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,807,100\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,980,749\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 \n28,198,739\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 \n28,803,842\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,350,705\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,991,780\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 \n27,973,995\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 \n27,677,372\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,973,995\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,677,372\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \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\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 \n0.88\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 \n1.38\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 \n0.97\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 \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 \n1.16\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 \n2.19\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.32\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.16\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 \n9.69\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 \n13.55\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10.69\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.27\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 \n10.48\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 \n15.26\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.68\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14.91\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 \n5.06\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 \n4.16\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 \n4.99\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 \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 \n5.19\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 \n4.45\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 \n5.12\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 \n2.66\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 \n0.46\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.34\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.44\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 \n2.91\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 \n0.63\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.66\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.61\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 \n2.40\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 \n3.58\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.55\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.59\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 \n2.31\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 \n3.34\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.47\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 \n52.7\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 \n40.2\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n49.3\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n41.2\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 \n1.29\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 \n1.47\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.30\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.51\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 \n104.4\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 \n100.7\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 \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \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 \n70.3\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 \n82.9\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \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 \n7.39\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 \n7.87\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \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\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 \n10.69\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 \n11.43\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \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 \n11.66\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 \n11.53\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.66\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 \n11.53\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.91\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 \n12.74\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \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\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 \n9.47\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 \n10.33\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \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 \n8.72\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 \n8.50\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10.33\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 \n10.29\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 Risk-based Capital Ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.50\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 \n13.98\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \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 \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 $250,000 .\n\n \n\n \n\n \n \n \n(4)\n\n \n\n \n\n \nPreliminary data. Current period subject to change prior to filings with applicable regulatory agencies.\n\n \n\n \n\n \n \n \n \n Selected Financial Data \n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \n Selected Balance Sheet Data \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal Assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,603,185\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 \nTotal Loans, Gross\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,736,211\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 \nAllowance for Credit Losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n50,701\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 Goodwill and Other Intangibles\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,832\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 \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 \n3,577,932\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 \nTangible Common Equity (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n339,780\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 \nTotal Shareholders' Equity\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n409,126\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 \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 \n4,483,662\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 \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 \n406,347\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(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 \n\n \n\n \n\n \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 For the Six 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 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 \n\n \n\n \n June 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 June 30 , \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\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 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\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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$\n\n \n\n \n\n \n55,001\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\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$\n\n \n\n \n\n \n37,782\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n106,993\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n72,476\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 \n29,129\n\n \n\n \n\n \n \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 \n5,252\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n52,554\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 \n9,766\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 \n25,872\n\n \n\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 \n32,530\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n54,439\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n62,710\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 \n50\n\n \n\n \n\n \n \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 \n3,025\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n675\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,700\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 \n25,822\n\n \n\n \n\n \n \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 \n29,505\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n53,764\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n58,010\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 \n1,415\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,943\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 \n1,650\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 \n3,358\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,207\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 \n14,388\n\n \n\n \n\n \n \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 \n13,752\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,571\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,260\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 \n12,849\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,702\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 \n17,403\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,551\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n33,957\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 \n3,033\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,060\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 \n4,521\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,093\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,813\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 \n9,816\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,642\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 \n12,882\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n21,458\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n25,144\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(1,014\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\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(2,027\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(2,027\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 \n8,802\n\n \n\n \n\n \n \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 \n11,868\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n19,431\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n23,117\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 $25.9 million for the second quarter of 2023, a decrease of $2.7 million , from $28.6 million in the first quarter of 2023, and a decrease of $6.7 million , from $32.5 million in the second quarter of 2022. The linked-quarter decrease in net interest income was primarily due to higher rates paid on deposits in the rising interest rate environment. The 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 $4.40 billion for the second quarter of 2023, an increase of $71.3 million , or 1.7%, from $4.32 billion for the first quarter of 2023, and an increase of $723.3 million , or 19.7%, from $3.67 billion for the second 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.\n\n \nNet interest margin (on a fully tax-equivalent basis) for the second quarter of 2023 was 2.40%, a 32 basis point decrease from 2.72% in the first quarter of 2023, and a 118 basis point decrease from 3.58% in the second 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 second quarter of 2023 was 2.31%, a 31 basis point decrease from 2.62% in the first quarter of 2023, and a 103 basis point decrease from 3.34% in the second quarter of 2022. The linked-quarter decline in the margin was primarily due to higher funding costs, offset partially by higher earning asset yields. The year-over-year decline in the margin 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 $55.0 million for the second quarter of 2023, an increase of $3.0 million , from $52.0 million in the first quarter of 2023, and an increase of $17.2 million , from $37.8 million in the second quarter of 2022. The yield on interest earning assets (on a fully tax-equivalent basis) was 5.06% in the second quarter of 2023, compared to 4.91% in the first quarter of 2023, and 4.16% in the second 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 and loans repricing at yields accretive to the existing portfolio. 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.\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 5.19% in the second quarter of 2023, which was 13 basis points higher than 5.06% in the first quarter of 2023, and 76 basis points higher than 4.43% in the second 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 \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 June 30, 2023 \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 \n \nInterest\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.09\n\n \n\n \n\n \n%\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 \n \n \nFees\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.10\n\n \n\n \n\n \n \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 \n \n \nYield on Loans, Excluding PPP Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.19\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 \n4.86\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 \n \nInterest expense was $29.1 million for the second quarter of 2023, an increase of $5.7 million , from $23.4 million in the first quarter of 2023, and an increase of $23.9 million , from $5.3 million in the second quarter of 2022. The cost of interest bearing liabilities increased 56 basis points on a linked-quarter basis from 3.03% in the first quarter of 2023 to 3.59% in the second quarter of 2023, primarily due to higher rates paid on deposits and increased utilization of FHLB advances in the rising interest rate environment. On a year-over-year basis, the cost of interest bearing liabilities increased 273 basis points from 0.86% in the second quarter of 2022 to 3.59% in the second 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 $23.0 million for the second quarter of 2023, an increase of $6.6 million , from $16.4 million in the first quarter of 2023, and an increase of $19.5 million , from $3.5 million in the second quarter of 2022. The cost of total deposits increased 65 basis points on a linked-quarter basis from 2.01% in the first quarter of 2023, to 2.66% in the second 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 220 basis points from 0.46% in the second quarter of 2022, to 2.66% in the second quarter of 2023, primarily due to 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 June 30, 2023 , March 31, 2023 , and June 30, 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 \n\n \n\n \n\n \n June 30, 2023 \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 June 30, 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 \n59,963\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n587\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.93\n\n \n\n \n\n \n%\n\n \n\n \n\n \n$\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 \n61,046\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n40\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 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 \n568,143\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,000\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.24\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 \n417,142\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,696\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.59\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 \n27,081\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n300\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.44\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 \n74,261\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n795\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.30\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 \n595,224\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,300\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.24\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 \n491,403\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,491\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.85\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 \n913\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 \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 \n8,335\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 \n12.67\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 \n3,715,621\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n48,064\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.19\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 \n3,099,344\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n34,205\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 \nTotal Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,716,534\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n48,066\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.19\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 \n3,107,679\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n34,468\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 \n23,330\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n456\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7.84\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 \n11,620\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n59\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.04\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 \n4,395,051\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55,409\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 \n4,323,706\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 \n3,671,748\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n38,058\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.16\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 \n88,611\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \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 \n71,827\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 \n4,483,662\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,405,234\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,743,575\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \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$\n\n \n\n \n\n \n683,034\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n5,918\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.48\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$\n\n \n\n \n\n \n552,502\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n694\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.50\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 \n861,947\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,048\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.28\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 \n925,354\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,185\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.51\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 \n269,439\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,702\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.53\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 \n280,645\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 \n0.95\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 \n896,989\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,330\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.72\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 \n403,931\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n912\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.91\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 \n2,711,409\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n22,998\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.40\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 \n2,162,432\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,456\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.64\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 \n210,677\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,761\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\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 \n137,379\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n410\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.20\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 \n285\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8.33\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 \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\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 \n242,714\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,092\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.46\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 \n47,511\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n167\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.41\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 \n79,041\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n993\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.04\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 \n92,396\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,219\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5.29\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 \n3,257,591\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29,129\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.59\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 \n2,439,718\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,252\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.86\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 \n755,040\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \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 \n882,477\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 \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 \n64,684\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \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 \n39,932\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 \n819,724\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \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 \n922,409\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 \n406,347\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n403,533\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 \n381,448\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 \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$\n\n \n\n \n\n \n4,483,662\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,405,234\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 \n3,743,575\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\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 \n26,280\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.47\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\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 \n32,806\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.30\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 \n2.40\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\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 \n3.58\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(408\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \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(276\n\n \n\n \n\n \n)\n\n \n\n \n\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 \n25,872\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\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 \n32,530\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\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 \nThe provision for credit losses on loans was $550,000 for the second quarter of 2023, compared to $1.5 million for the first quarter of 2023 and $3.0 million for the second quarter of 2022. The provision recorded in the second quarter of 2023 was primarily attributable to the growth of the loan portfolio. The allowance for credit losses on loans to total loans was 1.36% at June 30, 2023 and March 31, 2023 , compared to 1.39% at June 30, 2022 .\n\n \nThe following table presents the activity in the Company’s allowance for credit losses on loans for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Three Months Ended \n\n \n\n \n\n \n \n\n \n\n \n\n \n Six Months Ended \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \nBalance at Beginning of Period\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \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 \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 \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 \n—\n\n \n\n \n\n \n \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 \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 \nProvision for Credit Losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n550\n\n \n\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 \n3,025\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,050\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,700\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(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(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(14\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(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 \n(29\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 \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\n \n\n \n\n \n \n\n \n\n \n\n \n20\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$\n\n \n\n \n\n \n50,701\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n50,148\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n44,711\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n50,701\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 \n44,711\n\n \n\n \n\n \n \n\n \n\n \n\n \n \nThe provision for credit losses for off-balance sheet credit exposures was a negative provision of $500,000 for the second quarter of 2023, compared to a negative $875,000 for the first quarter of 2023 and zero for the second quarter of 2022. The negative provision during the quarter was due to a reduction in outstanding unfunded commitments primarily attributable to the migration to funded loans.\n\n \nThe following table presents a summary of the activity in the provision for credit losses for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Three Months Ended \n\n \n\n \n\n \n \n\n \n\n \n\n \n Six Months Ended \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \nProvision for Credit Losses on Loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n550\n\n \n\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 \n3,025\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,050\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,700\n\n \n\n \n\n \n \n \n \nProvision for Credit Losses for Off-Balance Sheet Credit Exposures\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(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 \n(875\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(1,375\n\n \n\n \n\n \n)\n\n \n\n \n\n \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$\n\n \n\n \n\n \n50\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\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$\n\n \n\n \n\n \n3,025\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n675\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,700\n\n \n\n \n\n \n \n \n Noninterest Income \n\n \nNoninterest income was $1.4 million for the second quarter of 2023, a decrease of $528,000 from $1.9 million for the first quarter of 2023, and a decrease of $235,000 from $1.7 million for the second quarter of 2022. The linked-quarter decrease was primarily due to a decrease in letter of credit fees and FHLB prepayment income. The year-over-year decrease was primarily due to decreased letter of credit fees and other income, offset partially by an increase in customer service fees and bank-owned life insurance income.\n\n \nThe following table presents the major components of noninterest income for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Three Months Ended \n\n \n\n \n\n \n \n\n \n\n \n\n \n Six Months Ended \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \nNoninterest Income:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \nCustomer Service Fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n368\n\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 \n298\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n717\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n579\n\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 \n50\n\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 \n52\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(6\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n52\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 \n379\n\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 \n564\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,013\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 \n806\n\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 \n155\n\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 \n152\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n293\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n285\n\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\n \n—\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\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 \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 \n238\n\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 \n149\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n472\n\n \n\n \n\n \n \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 \n \nFHLB Prepayment 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 \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 \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 \nOther Income\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 \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 \n435\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n570\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n631\n\n \n\n \n\n \n \n \n \nTotals\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,415\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\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$\n\n \n\n \n\n \n1,650\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,358\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,207\n\n \n\n \n\n \n \n \n Noninterest Expense \n\n \nNoninterest expense was $14.4 million for the second quarter of 2023, an increase of $205,000 from $14.2 million for the first quarter of 2023, and an increase of $636,000 from $13.8 million for the second quarter of 2022. The linked-quarter increase was primarily due to industry-wide increases in the FDIC insurance assessment, offset partially by a decrease in salaries and employee benefits resulting from lower discretionary incentive accruals and a decrease in occupancy and equipment. The year-over-year increase was primarily attributable to increases in the FDIC insurance assessment and derivative collateral fees, offset partially by decreases in salaries and employee benefits and marketing and advertising.\n\n \nThe following table presents the major components of noninterest expense for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Three Months Ended \n\n \n\n \n\n \n \n\n \n\n \n\n \n Six Months Ended \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n 2022 \n\n \n\n \n\n \n \n \nNoninterest Expense:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSalaries and Employee Benefits\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,589\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 \n8,977\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n17,404\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n17,671\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 \n1,075\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 \n1,042\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,284\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,127\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 \n900\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 \n330\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,565\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n690\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 \n401\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 \n356\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n758\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n653\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 \n829\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 \n742\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,584\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,436\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 \n404\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 \n27\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n784\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29\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 \n711\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 \n594\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,394\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,172\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 \n321\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 \n524\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n583\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,150\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 \n34\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 \n47\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n82\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n95\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 \n63\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n228\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n180\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 \n1,010\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 \n1,050\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,905\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,057\n\n \n\n \n\n \n \n \nTotals\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n14,388\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n14,183\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n13,752\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n28,571\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n27,260\n\n \n\n \n\n \n \nThe Company had 253 full-time equivalent employees at June 30, 2023 , compared to 246 employees at March 31, 2023 , and 236 employees at June 30, 2022 . The efficiency ratio, a non-GAAP financial measure, was 52.7% for the second quarter of 2023, compared to 46.2% for the first quarter of 2023, and 40.2% for the second quarter of 2022.\n\n \n Income Taxes \n\n \nThe effective combined federal and state income tax rate for the second quarter of 2023 was 23.6%, a decrease from 25.9% for the first quarter of 2023, and 26.0% for the second quarter of 2022.\n\n \n Balance Sheet \n\n \nTotal assets at June 30, 2023 and March 31, 2023 were $4.60 billion , an 18.5% increase from $3.88 billion at June 30, 2022 . 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 June 30, 2023 were $3.74 billion , an increase of $51.9 million , or 5.6% annualized, over total gross loans of $3.68 billion at March 31, 2023 , and an increase of $510.3 million , or 15.8%, over total gross loans of $3.23 billion at June 30, 2022 . The increase in the loan portfolio during the second quarter of 2023 was primarily due to the funding of existing construction and land development loans and growth in the 1-4 family mortgage segment, offset partially by a decrease in the 1-4 family construction segment.\n\n \nThe following table presents the dollar composition of the Company’s loan portfolio, by category, at the dates indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30, 2022 \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCommercial\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n459,184\n\n \n\n \n\n \n \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 \nPaycheck Protection Program\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n877\n\n \n\n \n\n \n \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 \nConstruction and Land Development \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n351,069\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n312,277\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 \n1 - 4 Family Construction \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n69,648\n\n \n\n \n\n \n \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 \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 \n400,708\n\n \n\n \n\n \n \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 \nMultifamily\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,314,524\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,320,081\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 \nCRE Owner Occupied\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n159,088\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 \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 \nCRE Nonowner Occupied\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n971,532\n\n \n\n \n\n \n \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 \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 \n2,845,852\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,821,612\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 \nConsumer and Other\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9,581\n\n \n\n \n\n \n \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 \nTotal Loans, Gross\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,736,211\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,684,360\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 \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(50,701\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(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 \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(7,718\n\n \n\n \n\n \n)\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 \nTotal Loans, Net\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,677,792\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,625,477\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 \nTotal deposits at June 30, 2023 were $3.58 billion , an increase of $166.8 million , or 19.6% annualized, over total deposits of $3.41 billion at March 31, 2023 , and an increase of $376.0 million , or 11.7%, over total deposits of $3.20 billion at June 30, 2022 . Deposits increased in the second quarter of 2023 primarily due to inflows of core deposits, defined as deposits excluding brokered deposits and time deposits greater than $250,000 , and brokered deposits. Brokered deposits continue to be used as a supplemental funding source, as needed, to support continued loan portfolio growth. Uninsured deposits as of June 30, 2023 were 22% of total deposits, down from 24% as of March 31, 2023 .\n\n \nThe following table presents the dollar composition of the Company’s deposit portfolio, by category, at the dates indicated:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30, 2022 \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNoninterest Bearing Transaction Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n751,217\n\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\n \n884,272\n\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\n \n961,998\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 \n719,488\n\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\n \n451,992\n\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\n \n522,151\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 \n860,613\n\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\n \n1,031,873\n\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\n \n952,138\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 \n271,783\n\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\n \n272,253\n\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\n \n272,424\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 \n974,831\n\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\n \n776,153\n\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\n \n493,242\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$\n\n \n\n \n\n \n3,577,932\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,411,123\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,416,543\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n$\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\n \n3,201,953\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n Capital \n\n \nTotal shareholders’ equity at June 30, 2023 was $409.1 million , an increase of $7.1 million , or 1.8%, compared to total shareholders’ equity of $402.0 million at March 31, 2023 , and an increase of $34.2 million , or 9.1%, over total shareholders’ equity of $374.9 million at June 30, 2022 . The linked-quarter 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 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 the Current Expected Credit Losses (CECL) accounting methodology and preferred stock dividends. The Company did not purchase any shares of its common stock during the second quarter of 2023.\n\n \nTangible book value per share, a non-GAAP financial measure, was $12.15 as of June 30, 2023 , an increase of 1.7% from $11.95 as of March 31, 2023 , and an increase of 10.1% from $11.03 as of June 30, 2022 . The linked-quarter and year-over-year increases occurred despite the market value depreciation of the securities portfolio driven by the rising interest rate environment. Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.39% at June 30, 2023 , compared to 7.23% at March 31, 2023 , and 7.87% at June 30, 2022 .\n\n \nToday, the Company also announced that its Board of Directors has 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 September 1, 2023 to shareholders of record of the Series A Preferred Stock at the close of business on August 15, 2023 .\n\n \n Liquidity \n\n \nTotal on- and off-balance sheet liquidity was $1.96 billion as of June 30, 2023 , compared to $1.92 billion at March 31, 2023 and $1.53 billion at June 30, 2022 . The Company did not utilize the Bank Term Funding Program (BTFP) or Federal Reserve Discount Window during the second quarter of 2023.\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n Primary Liquidity—On-Balance Sheet \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30, 2022 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n (dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nCash and Cash Equivalents\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n138,618\n\n \n\n \n\n \n \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 \nSecurities Available for Sale\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n538,220\n\n \n\n \n\n \n \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 \nLess: Pledged Securities \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(236,206\n\n \n\n \n\n \n)\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 \nTotal Primary Liquidity\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n440,632\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\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$\n\n \n\n \n\n \n525,751\n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nRatio of Primary Liquidity to Total Deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.3\n\n \n\n \n\n \n \n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n14.7\n\n \n\n \n\n \n \n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n17.5\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n17.5\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n16.4\n\n \n\n \n\n \n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n Secondary Liquidity—Off-Balance Sheet \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \n Borrowing Capacity \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n\n \n\n \n\n \n \n \nNet Secured Borrowing Capacity with the FHLB\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n400,792\n\n \n\n \n\n \n \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 \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 \n986,644\n\n \n\n \n\n \n \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 \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 \n108,000\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 \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 ...

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