Document

This Supplemental Financial Information contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures may include, without limitation, adjusted net income, adjusted diluted earnings per common share, adjusted and unadjusted pre-tax pre-provision earnings, core revenue, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), adjusted Banking segment pre-tax, pre-provision earnings, Banking segment core noninterest income, Mortgage segment core noninterest income, Mortgage segment core noninterest expense, Banking segment core revenue, Mortgage segment core revenue, Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), adjusted return on average assets and equity, and adjusted pre-tax pre-provision return on average assets. Each of these non-GAAP metrics excludes certain income and expense items that the Company’s management considers to be non-core/adjusted in nature. The Company refers to these non-GAAP measures as adjusted (or core) measures. Also, the Company presents tangible assets, tangible common equity, adjusted tangible common equity, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, on-balance sheet liquidity to tangible assets, return on average tangible common equity, and adjusted return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles. Adjusted tangible common equity and adjusted tangible book value also exclude the impact of net accumulated other comprehensive (loss) income.

The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrate the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends. In addition, because intangible assets such as goodwill and the other items excluded vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. Investors should understand how such other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. See the corresponding non-GAAP reconciliation tables in this Supplemental Financial Information dated April 17, 2023, for additional discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.


Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
	2023			2022
	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Selected Statement of Income Data
Total interest income	$	159,480		$	147,598		$	128,483		$	110,214		$	95,127
Total interest expense	55,820			37,100			17,099			8,043			6,945
Net interest income	103,660			110,498			111,384			102,171			88,182
Total noninterest income	23,545			17,469			22,592			33,214			41,392
Total noninterest expense	80,636			80,230			81,847			96,997			89,272
Earnings before income taxes and provisions for credit losses	$	46,569		$	47,737		$	52,129		$	38,388		$	40,302
Provisions for credit losses	$	491		$	(456)		$	11,367		$	12,318		$	(4,247)
Income tax expense	9,697			10,042			8,931			6,717			9,313

Net income applicable to FB Financial Corporation	36,381			38,143			31,831			19,345			35,236
Net interest income (tax-equivalent basis)	104,493			111,279			112,145			102,926			88,932
Adjusted net income*	35,708			40,045			32,117			30,051			35,365
Adjusted pre-tax, pre-provision earnings*	45,659			50,299			52,516			52,856			40,476
Per Common Share
Diluted net income	$	0.78		$	0.81		$	0.68		$	0.41		$	0.74
Adjusted diluted net income*	0.76			0.85			0.68			0.64			0.74

Book value	29.29			28.36			27.30			28.15			29.06
Tangible book value*	23.86			22.90			21.85			22.67			23.62
Adjusted tangible book value*	27.06			26.53			25.84			25.24			25.12
Weighted average number of shares outstanding - fully diluted	46,765,154			47,036,742			47,024,611			47,211,650			47,723,902
Period-end number of shares	46,762,626			46,737,912			46,926,377			46,881,896			47,487,874
Selected Balance Sheet Data
Cash and cash equivalents	$	1,319,951		$	1,027,052		$	618,290		$	872,861		$	1,743,311
Loans held for investment (HFI)	9,365,996			9,298,212			9,105,016			8,624,337			8,004,976
Allowance for credit losses(a)	(138,809)			(134,192)			(134,476)			(126,272)			(120,049)
Mortgage loans held for sale(b)	73,005			108,961			97,011			222,400			318,549
Commercial loans held for sale	9,510			30,490			33,722			37,815			78,179
Investment securities, at fair value	1,474,064			1,474,176			1,485,133			1,621,344			1,686,738
Other real estate owned, net	4,085			5,794			5,919			9,398			9,721
Total assets	13,101,147			12,847,756			12,258,082			12,193,862			12,674,191

Interest-bearing deposits	8,693,766			8,179,203			7,039,568			7,647,782			8,208,580
Noninterest-bearing deposits	2,489,149			2,676,631			2,966,514			2,895,520			2,787,698
Mortgage escrow deposits	92,947			75,612			140,768			133,180			131,147


Total deposits	11,182,915			10,855,834			10,006,082			10,543,302			10,996,278
Estimated insured or collateralized deposits	7,926,537			7,288,641			6,653,463			7,320,537			7,631,005
Borrowings	312,131			415,677			722,940			160,400			155,733
Total common shareholders' equity	1,369,696			1,325,425			1,281,161			1,319,852			1,379,776
Selected Ratios
Return on average:
Assets	1.15		%	1.22		%	1.05		%	0.62		%	1.13		%
Shareholders' equity	11.0		%	11.7		%	9.45		%	5.74		%	10.1		%
Tangible common equity*	13.6		%	14.6		%	11.7		%	7.09		%	12.4		%
Average shareholders' equity to average assets	10.4		%	10.4		%	11.1		%	10.9		%	11.2		%
Net interest margin (NIM) (tax-equivalent basis)	3.51		%	3.78		%	3.93		%	3.52		%	3.04		%
Efficiency ratio (GAAP)	63.4		%	62.7		%	61.1		%	71.6		%	68.9		%
Core efficiency ratio (tax-equivalent basis)*	63.4		%	61.0		%	60.7		%	61.1		%	68.1		%
Loans HFI to deposit ratio	83.8		%	85.7		%	91.0		%	81.8		%	72.8		%
Total loans to deposit ratio	84.5		%	86.9		%	92.3		%	84.3		%	76.4		%
Noninterest-bearing deposits to total deposits	22.3		%	24.7		%	29.6		%	27.5		%	25.4		%
Yield on interest-earning assets	5.38		%	5.04		%	4.53		%	3.80		%	3.28		%
Cost of interest-bearing liabilities	2.61		%	1.84		%	0.90		%	0.40		%	0.34		%
Cost of total deposits	1.94		%	1.20		%	0.52		%	0.25		%	0.20		%
Estimated uninsured and uncollateralized deposits as a percentage of total deposits	29.1		%	32.9		%	33.5		%	30.6		%	30.6		%
Credit Quality Ratios
Allowance for credit losses as a percentage of loans HFI(a)	1.48		%	1.44		%	1.48		%	1.46		%	1.50		%

Net charge-offs (recoveries) as a percentage of average loans HFI	0.02		%	0.02		%	0.00		%	0.09		%	(0.03)		%
Nonperforming loans HFI as a percentage of total loans HFI	0.49		%	0.49		%	0.47		%	0.51		%	0.51		%
Nonperforming assets as a percentage of total assets(b)	0.61		%	0.68		%	0.62		%	0.46		%	0.44		%
Preliminary Capital Ratios (consolidated)
Total common shareholders' equity to assets	10.5		%	10.3		%	10.5		%	10.8		%	10.9		%
Tangible common equity to tangible assets*	8.68		%	8.50		%	8.54		%	8.90		%	9.03		%
Tier 1 capital (to average assets)	10.3		%	10.5		%	10.7		%	10.2		%	10.2		%
Tier 1 capital (to risk-weighted assets)(c)	11.6		%	11.3		%	11.2		%	11.8		%	12.3		%
Total capital (to risk-weighted assets)(c)	13.5		%	13.1		%	13.0		%	13.6		%	14.2		%
Common equity Tier 1 (to risk-weighted assets) (CET1)(c)	11.3		%	11.0		%	10.9		%	11.5		%	12.0		%


Consolidated Statements of Income
For the Quarter Ended
(Unaudited)
(In Thousands, Except Share Data and %)
													Q1 2023		Q1 2023
													vs.		vs.
	2023		2022								Q4 2022	Q1 2022
	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter				Percent variance		Percent variance
Interest income:
Interest and fees on loans	$	140,356	$	133,180	$	116,664	$	99,655	$	86,864			5.39	%	61.6	%
Interest on securities
Taxable	6,570		6,707		6,843		6,499		5,420				(2.04)	%	21.2	%
Tax-exempt	1,804		1,806		1,818		1,842		1,866				(0.11)	%	(3.32)	%
Other	10,750		5,905		3,158		2,218		977				82.0	%	1000.3	%
Total interest income	159,480		147,598		128,483		110,214		95,127				8.05	%	67.6	%
Interest expense:
Deposits	52,863		31,456		13,133		6,591		5,462				68.1	%	867.8	%
Borrowings	2,957		5,644		3,966		1,452		1,483				(47.6)	%	99.4	%
Total interest expense	55,820		37,100		17,099		8,043		6,945				50.5	%	703.7	%
Net interest income	103,660		110,498		111,384		102,171		88,182				(6.19)	%	17.6	%
Provision for credit losses	4,997		152		8,189		8,181		(6,129)				3187.5	%	(181.5)	%
Provision for credit losses on unfunded commitments	(4,506)		(608)		3,178		4,137		1,882				641.1	%	(339.4)	%
Net interest income after provisions for credit losses	103,169		110,954		100,017		89,853		92,429				(7.02)	%	11.6	%
Noninterest income:
Mortgage banking income	12,086		9,106		12,384		22,559		29,531				32.7	%	(59.1)	%
Service charges on deposit accounts	3,053		3,019		3,208		2,908		2,914				1.13	%	4.77	%
ATM and interchange fees	2,396		2,546		2,614		5,353		5,087				(5.89)	%	(52.9)	%
Investment services and trust income	2,378		2,232		2,227		2,275		2,132				6.54	%	11.5	%
Gain (loss) from securities, net	69		25		(140)		(109)		(152)				176.0	%	(145.4)	%
(Loss) gain on sales or write-downs of other real estate owned and other assets	(183)		(252)		429		(8)		(434)				(27.4)	%	(57.8)	%

Other income	3,746		793		1,870		236		2,314				372.4	%	61.9	%
Total noninterest income	23,545		17,469		22,592		33,214		41,392				34.8	%	(43.1)	%
Total revenue	127,205		127,967		133,976		135,385		129,574				(0.60)	%	(1.83)	%
Noninterest expenses:
Salaries, commissions and employee benefits	48,788		45,839		51,028		55,181		59,443				6.43	%	(17.9)	%
Occupancy and equipment expense	5,909		6,295		6,011		5,853		5,403				(6.13)	%	9.37	%
Legal and professional fees	3,108		4,857		4,448		3,116		2,607				(36.0)	%	19.2	%
Data processing	2,113		2,096		2,334		2,404		2,481				0.81	%	(14.8)	%

Amortization of core deposits and other intangibles	990		1,039		1,108		1,194		1,244				(4.72)	%	(20.4)	%


Advertising	2,133		3,094		2,050		2,031		4,033				(31.1)	%	(47.1)	%
Mortgage restructuring expense	—		—		—		12,458		—				—	%	—	%
Other expense	17,595		17,010		14,868		14,760		14,061				3.44	%	25.1	%
Total noninterest expense	80,636		80,230		81,847		96,997		89,272				0.51	%	(9.67)	%
Income before income taxes	46,078		48,193		40,762		26,070		44,549				(4.39)	%	3.43	%
Income tax expense	9,697		10,042		8,931		6,717		9,313				(3.44)	%	4.12	%
Net income applicable to FB Financial Corporation and noncontrolling interest	36,381		38,151		31,831		19,353		35,236				(4.64)	%	3.25	%
Net income applicable to noncontrolling interest	—		8		—		8		—				(100.0)	%	—	%

Net income applicable to FB Financial Corporation	$	36,381	$	38,143	$	31,831	$	19,345	$	35,236			(4.62)	%	3.25	%
Weighted average common shares outstanding:
Basic	46,679,618		46,909,389		46,908,520		47,111,055		47,530,520				(0.49)	%	(1.79)	%
Fully diluted	46,765,154		47,036,742		47,024,611		47,211,650		47,723,902				(0.58)	%	(2.01)	%
Earnings per common share:
Basic	$	0.78	$	0.81	$	0.68	$	0.41	$	0.74			(3.70)	%	5.41	%
Fully diluted	0.78		0.81		0.68		0.41		0.74				(3.70)	%	5.41	%
Fully diluted - adjusted*	0.76		0.85		0.68		0.64		0.74				(10.59)	%	2.70	%


Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except %)

													Annualized
													Q1 2023		Q1 2023
													vs.		vs.
	2023		2022								Q4 2022	Q1 2022
	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter				Percent variance		Percent variance
ASSETS
Cash and due from banks	$	133,874	$	259,872	$	193,301	$	79,402	$	61,637			(196.6)	%	117.2	%
Federal funds sold and reverse repurchase agreements	63,994		210,536		115,140		233,588		134,763				(282.3)	%	(52.5)	%
Interest-bearing deposits in financial institutions	1,122,083		556,644		309,849		559,871		1,546,911				412.0	%	(27.5)	%
Cash and cash equivalents	1,319,951		1,027,052		618,290		872,861		1,743,311				115.7	%	(24.3)	%
Investments:
Available-for-sale debt securities, at fair value	1,471,005		1,471,186		1,482,171		1,618,241		1,683,525				(0.05)	%	(12.6)	%
Equity securities, at fair value	3,059		2,990		2,962		3,103		3,213				9.36	%	(4.79)	%
Federal Home Loan Bank stock, at cost	43,369		58,641		58,587		34,581		34,433				(105.6)	%	26.0	%
Mortgage loans held for sale	73,005		108,961		97,011		222,400		318,549				(133.8)	%	(77.1)	%
Commercial loans held for sale, at fair value	9,510		30,490		33,722		37,815		78,179				(279.1)	%	(87.8)	%
Loans held for investment	9,365,996		9,298,212		9,105,016		8,624,337		8,004,976				2.96	%	17.0	%
Less: allowance for credit losses	138,809		134,192		134,476		126,272		120,049				14.0	%	15.6	%
Net loans held for investment	9,227,187		9,164,020		8,970,540		8,498,065		7,884,927				2.80	%	17.0	%
Premises and equipment, net	153,397		146,316		143,277		142,474		142,550				19.6	%	7.61	%
Other real estate owned, net	4,085		5,794		5,919		9,398		9,721				(119.6)	%	(58.0)	%
Operating lease right-of-use assets	57,054		60,043		61,444		41,070		41,037				(20.2)	%	39.0	%
Interest receivable	44,737		45,684		39,034		40,393		39,069				(8.41)	%	14.5	%
Mortgage servicing rights, at fair value	164,879		168,365		171,427		158,678		144,675				(8.40)	%	14.0	%
Goodwill	242,561		242,561		242,561		242,561		242,561				—	%	—	%
Core deposit and other intangibles, net	11,378		12,368		13,407		14,515		15,709				(32.5)	%	(27.6)	%
Bank-owned life insurance	74,963		75,329		74,976		74,605		74,232				(1.97)	%	0.98	%
Other assets	201,007		227,956		242,754		183,102		218,500				(47.9)	%	(8.01)	%
Total assets	$	13,101,147	$	12,847,756	$	12,258,082	$	12,193,862	$	12,674,191			8.00	%	3.37	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest-bearing	$	2,489,149	$	2,676,631	$	2,966,514	$	2,895,520	$	2,787,698			(28.4)	%	(10.7)	%
Interest-bearing checking	3,292,883		3,059,984		2,648,161		3,338,561		3,639,779				30.9	%	(9.53)	%
Money market and savings	3,904,013		3,697,245		3,228,337		3,131,463		3,513,485				22.7	%	11.1	%
Customer time deposits	1,496,024		1,420,131		1,160,726		1,171,941		1,046,899				21.7	%	42.9	%
Brokered and internet time deposits	846		1,843		2,344		5,817		8,417				(219.4)	%	(89.9)	%
Total deposits	11,182,915		10,855,834		10,006,082		10,543,302		10,996,278				12.2	%	1.70	%
Borrowings	312,131		415,677		722,940		160,400		155,733				(101.0)	%	100.4	%
Operating lease liabilities	67,345		69,754		70,610		45,917		45,528				(14.0)	%	47.9	%
Accrued expenses and other liabilities	168,967		180,973		177,196		124,298		96,783				(26.9)	%	74.6	%
Total liabilities	11,731,358		11,522,238		10,976,828		10,873,917		11,294,322				7.36	%	3.87	%
Shareholders' equity:
Common stock, $1 par value	46,763		46,738		46,926		46,882		47,488				0.22	%	(1.53)	%
Additional paid-in capital	856,628		861,588		867,139		864,614		888,168				(2.33)	%	(3.55)	%
Retained earnings	615,871		586,532		554,536		528,851		515,664				20.3	%	19.4	%
Accumulated other comprehensive (loss) income, net	(149,566)		(169,433)		(187,440)		(120,495)		(71,544)				(47.6)	%	109.1	%
Total common shareholders' equity	1,369,696		1,325,425		1,281,161		1,319,852		1,379,776				13.5	%	(0.73)	%
Noncontrolling interest	93		93		93		93		93				—	%	—	%
Total equity	1,369,789		1,325,518		1,281,254		1,319,945		1,379,869				13.5	%	(0.73)	%
Total liabilities and shareholders' equity	$	13,101,147	$	12,847,756	$	12,258,082	$	12,193,862	$	12,674,191			8.00	%	3.37	%


Average Balance, Average Yield Earned and Average Rate Paid

(Unaudited)
(In Thousands, Except %)
	Three Months Ended						Three Months Ended
	March 31, 2023						December 31, 2022
	Average balances		Interest income/ expense		Average yield/ rate		Average balances		Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans HFI(a)	$	9,346,708	$	139,467	6.05	%	$	9,250,859	$	132,171	5.67	%
Mortgage loans held for sale	56,204		927		6.69	%	56,180		843		5.95	%
Commercial loans held for sale	16,608		159		3.88	%	33,640		311		3.67	%
Securities:
Taxable	1,402,535		6,570		1.90	%	1,431,776		6,707		1.86	%
Tax-exempt(a)	294,652		2,440		3.36	%	295,698		2,442		3.28	%
Total securities(a)	1,697,187		9,010		2.15	%	1,727,474		9,149		2.10	%
Federal funds sold and reverse repurchase agreements	188,013		1,855		4.00	%	200,062		1,924		3.82	%
Interest-bearing deposits with other financial institutions	728,576		8,008		4.46	%	364,543		3,236		3.52	%
FHLB stock	47,094		887		7.64	%	58,623		745		5.04	%
Total interest-earning assets(a)	12,080,390		160,313		5.38	%	11,691,381		148,379		5.04	%
Noninterest-earning assets:
Cash and due from banks	154,270						136,334
Allowance for credit losses	(134,803)						(135,998)
Other assets(b)	761,757						754,310
Total noninterest-earning assets	781,224						754,646
Total assets	$	12,861,614					$	12,446,027
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking	$	3,165,058	$	19,060	2.44	%	$	2,702,960	$	10,284	1.51	%
Money market(c)	3,369,953		24,510		2.95	%	2,976,759		15,196		2.03	%
Savings deposits	458,023		64		0.06	%	488,243		66		0.05	%
Customer time deposits(c)	1,472,221		9,221		2.54	%	1,310,505		5,902		1.79	%
Brokered and internet time deposits(c)	1,607		8		2.02	%	1,980		8		1.60	%
Time deposits	1,473,828		9,229		2.54	%	1,312,485		5,910		1.79	%
Total interest-bearing deposits	8,466,862		52,863		2.53	%	7,480,447		31,456		1.67	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	27,139		46		0.69	%	27,140		28		0.41	%
Federal Home Loan Bank advances	41,389		499		4.89	%	349,859		3,428		3.89	%
Subordinated debt(d)	126,161		2,402		7.72	%	126,054		2,182		6.87	%
Other borrowings	1,688		10		2.40	%	1,434		6		1.66	%
Total other interest-bearing liabilities	196,377		2,957		6.11	%	504,487		5,644		4.44	%
Total interest-bearing liabilities	8,663,239		55,820		2.61	%	7,984,934		37,100		1.84	%
Noninterest-bearing liabilities:
Demand deposits	2,588,756						2,886,297
Other liabilities	266,299						279,945
Total noninterest-bearing liabilities	2,855,055						3,166,242
Total liabilities	11,518,294						11,151,176
Total common shareholders' equity	1,343,227						1,294,758
Noncontrolling interest	93						93
Total equity	1,343,320						1,294,851
Total liabilities and shareholders' equity	$	12,861,614					$	12,446,027
Net interest income(a)			$	104,493					$	111,279
Interest rate spread(a)					2.77	%					3.20	%
Net interest margin(a)					3.51	%					3.78	%
Cost of total deposits					1.94	%					1.20	%
Average interest-earning assets to average interest-bearing liabilities					139.4	%					146.4	%
Tax-equivalent adjustment			$	833					$	781
Loans HFI yield components:
Contractual interest rate(a)			$	135,872	5.90	%			$	126,955	5.45	%
Origination and other loan fee income			3,101		0.13	%			4,244		0.18	%
Accretion on purchased loans			319		0.01	%			319		0.01	%
Nonaccrual interest			175		0.01	%			653		0.03	%

Total loans HFI yield			$	139,467	6.05	%			$	132,171	5.67	%


Average Balance, Average Yield Earned and Average Rate Paid (continued)

(Unaudited)
(In Thousands, Except %)
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2022						June 30, 2022						March 31, 2022
	Average balances		Interest income/ expense		Average yield/ rate		Average balances		Interest income/ expense		Average yield/ rate		Average balances		Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans HFI(a)	$	8,810,094	$	114,488	5.16	%	$	8,323,778	$	96,692	4.66	%	$	7,762,566	$	82,463	4.31	%
Mortgage loans held for sale	124,358		1,626		5.19	%	215,779		2,350		4.37	%	470,005		3,566		3.08	%
Commercial loans held for sale	36,291		670		7.32	%	56,460		718		5.10	%	78,567		928		4.79	%
Securities:
Taxable	1,469,934		6,843		1.85	%	1,474,999		6,499		1.77	%	1,380,897		5,420		1.59	%
Tax-exempt(a)	298,905		2,459		3.26	%	307,719		2,492		3.25	%	318,849		2,523		3.21	%
Total securities(a)	1,768,839		9,302		2.09	%	1,782,718		8,991		2.02	%	1,699,746		7,943		1.90	%
Federal funds sold	160,597		877		2.17	%	221,929		421		0.76	%	206,829		192		0.38	%
Interest-bearing deposits with other financial institutions	361,684		1,850		2.03	%	1,081,474		1,551		0.58	%	1,599,991		638		0.16	%
FHLB stock	49,478		431		3.46	%	34,536		246		2.86	%	32,894		147		1.81	%
Total interest-earning assets(a)	11,311,341		129,244		4.53	%	11,716,674		110,969		3.80	%	11,850,598		95,877		3.28	%
Noninterest-earning assets:
Cash and due from banks	109,681						91,230						93,419
Allowance for credit losses	(127,710)						(120,297)						(125,980)
Other assets(b)	744,803						739,872						823,452
Total noninterest-earning assets	726,774						710,805						790,891
Total assets	$	12,038,115					$	12,427,479					$	12,641,489
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking	$	2,821,415	$	5,831	0.82	%	$	3,415,135	$	3,285	0.39	%	$	3,559,755	$	2,457	0.28	%
Money market(c)	2,551,521		4,684		0.73	%	2,842,026		1,416		0.20	%	3,017,746		1,572		0.21	%
Savings deposits	515,882		70		0.05	%	508,511		68		0.05	%	487,945		64		0.05	%
Customer time deposits(c)	1,151,843		2,535		0.87	%	1,129,668		1,798		0.64	%	1,077,386		1,320		0.50	%
Brokered and internet time deposits(c)	3,501		13		1.47	%	6,387		24		1.51	%	16,065		49		1.24	%
Time deposits	1,155,344		2,548		0.87	%	1,136,055		1,822		0.64	%	1,093,451		1,369		0.51	%
Total interest-bearing deposits	7,044,162		13,133		0.74	%	7,901,727		6,591		0.33	%	8,158,897		5,462		0.27	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	29,580		12		0.16	%	27,233		12		0.18	%	30,056		14		0.19	%
Federal Home Loan Bank advances	329,130		2,155		2.60	%	—		—		—	%	—		—		—	%
Subordinated debt(d)	127,263		1,792		5.59	%	129,691		1,434		4.43	%	129,578		1,460		4.57	%
Other borrowings	1,457		7		1.91	%	1,480		6		1.63	%	1,502		9		2.43	%
Total other interest-bearing liabilities	487,430		3,966		3.23	%	158,404		1,452		3.68	%	161,136		1,483		3.73	%
Total interest-bearing liabilities	7,531,592		17,099		0.90	%	8,060,131		8,043		0.40	%	8,320,033		6,945		0.34	%
Noninterest-bearing liabilities:
Demand deposits	2,973,650						2,879,662						2,767,087
Other liabilities	196,637						134,892						138,291
Total noninterest-bearing liabilities	3,170,287						3,014,554						2,905,378
Total liabilities	10,701,879						11,074,685						11,225,411
Total common shareholders' equity	1,336,143						1,352,701						1,415,985
Noncontrolling interest	93						93						93
Total equity	1,336,236						1,352,794						1,416,078
Total liabilities and shareholders' equity	$	12,038,115					$	12,427,479					$	12,641,489
Net interest income(a)			$	112,145					$	102,926					$	88,932
Interest rate spread(a)					3.63	%					3.40	%					2.94	%
Net interest margin(a)					3.93	%					3.52	%					3.04	%
Cost of total deposits					0.52	%					0.25	%					0.20	%
Average interest-earning assets to average interest-bearing liabilities					150.2	%					145.4	%					142.4	%
Tax-equivalent adjustment			$	761					$	755					$	750
Loans HFI yield components:
Contractual interest rate(a)			$	106,405	4.79	%			$	88,005	4.24	%			$	78,789	4.12	%
Origination and other loan fee income			6,665		0.30	%			6,927		0.33	%			4,982		0.26	%
Accretion (amortization) on purchased loans			949		0.05	%			64		—	%			(2,352)		(0.12)	%
Nonaccrual interest			469		0.02	%			546		0.03	%			1,044		0.05	%
Syndication fee income			—		—	%			1,150		0.06	%			—		—	%
Total loans HFI yield			$	114,488	5.16	%			$	96,692	4.66	%			$	82,463	4.31	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.


Selected Deposit Data

(Unaudited)
(In Thousands)

	2023					2022
	First Quarter					Fourth Quarter					Third Quarter					Second Quarter					First Quarter





Deposits by market(a)
Metropolitan	$	8,075,972		72	%	$	7,813,839		72	%	$	6,940,492		69	%	$	7,489,473		71	%	$	7,970,269		73	%
Community	2,756,700			25	%	2,671,326			25	%	2,584,629			26	%	2,624,380			25	%	2,580,610			23	%

Escrow and other(b)	350,243			3	%	370,669			3	%	480,961			5	%	429,449			4	%	445,399			4	%
Total	$	11,182,915		100	%	$	10,855,834		100	%	$	10,006,082		100	%	$	10,543,302		100	%	$	10,996,278		100	%

Deposits by customer segment
Consumer	$	5,028,364		45	%	$	4,985,544		46	%	$	4,621,364		46	%	$	4,628,005		44	%	$	4,659,360		42	%
Commercial	3,767,743			34	%	3,796,698			35	%	3,759,057			38	%	3,567,766			34	%	3,699,886			34	%
Public	2,386,808			21	%	2,073,592			19	%	1,625,661			16	%	2,347,531			22	%	2,637,032			24	%
Total	$	11,182,915		100	%	$	10,855,834		100	%	$	10,006,082		100	%	$	10,543,302		100	%	$	10,996,278		100	%

Estimated insured or collateralized deposits	$	7,926,537				$	7,288,641				$	6,653,463				$	7,320,537				$	7,631,005





Estimated uninsured and uncollateralized deposits	$	3,256,378				$	3,567,193				$	3,352,619				$	3,222,765				$	3,365,273

Estimated uninsured and uncollateralized deposits as a % of total deposits	29		%			33		%			34		%			31		%			31		%


Segment Data
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)

	2023			2022
	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Banking segment
Net interest income	$	103,467		$	110,498		$	111,384		$	102,171		$	88,184
Provisions for credit losses	491			(456)			11,367			12,318			(4,247)

Noninterest income	11,882			8,345			10,293			10,699			11,983


Other noninterest expense	68,546			66,926			65,886			59,320			59,584
Pre-tax income after allocations	$	46,312		$	52,373		$	44,424		$	41,232		$	44,830
Total assets	$	12,530,039		$	12,228,451		$	11,648,610		$	11,469,762		$	11,890,847
Intracompany funding income included in net interest income	3,931			4,247			4,143			4,850			5,666
Core efficiency ratio*	59.6		%	54.7		%	53.8		%	51.3		%	58.7		%
Mortgage segment
Net interest income	$	193		$	—		$	—		$	—		$	(2)

Mortgage banking income	12,086			9,106			12,384			22,559			29,531
Other noninterest income	(423)			18			(85)			(44)			(122)

Mortgage restructuring expense	—			—			—			12,458			—
Other noninterest expense	12,090			13,304			15,961			25,219			29,688
Direct (loss) contribution	$	(234)		$	(4,180)		$	(3,662)		$	(15,162)		$	(281)
Total assets	$	571,108		$	619,305		$	609,472		$	724,100		$	783,344
Intracompany funding expense included in net interest income	3,931			4,247			4,143			4,850			5,666
Core efficiency ratio*	98.4		%	145.4		%	128.9		%	111.8		%	100.5		%










Interest rate lock commitments volume	$	375,042		$	281,650		$	408,879		$	700,870		$	1,309,107




Interest rate lock commitments pipeline (period end)	$	157,213		$	118,313		$	188,430		$	292,716		$	541,560




Mortgage loan sales	$	332,307		$	266,834		$	569,655		$	869,688		$	1,284,482
Gains and fees from origination and sale of mortgage loans held for sale	$	8,146		$	8,967		$	11,085		$	21,099		$	29,397
Net change in fair value of loans held for sale, derivatives, and other	(421)			(2,270)			(2,460)			(5,354)			(7,548)
Mortgage servicing income	7,768			7,264			8,104			7,966			7,429
Change in fair value of mortgage servicing rights, net of hedging	(3,407)			(4,855)			(4,345)			(1,152)			253
Total mortgage banking income	$	12,086		$	9,106		$	12,384		$	22,559		$	29,531
Mortgage sale margin(a)	2.45		%	3.36		%	1.95		%	2.43		%	2.29		%


Loan Portfolio
As of the Quarter Ended
(Unaudited)
(In Thousands, Except %)
	2023				2022
	First Quarter		% of Total		Fourth Quarter		% of Total		Third Quarter		% of Total		Second Quarter		% of Total		First Quarter		% of Total
Loan portfolio
Commercial and Industrial (a)	$	1,671,398	18	%	$	1,645,783	18%		$	1,534,159	17%		$	1,479,424	17%		$	1,380,600	17	%
Construction	1,697,513		18	%	1,657,488		18%		1,679,497		18%		1,575,331		18%		1,468,811		19	%
Residential real estate:
1-to-4 family mortgage	1,562,503		17	%	1,573,121		17%		1,545,252		17%		1,457,452		17%		1,346,349		17	%
Residential line of credit	497,391		5	%	496,660		5%		460,774		5%		425,485		5%		392,740		5	%
Multi-family mortgage	489,379		5	%	479,572		5%		394,366		4%		391,970		5%		400,501		5	%
Commercial real estate:
Owner occupied	1,136,978		12	%	1,114,580		12%		1,158,343		13%		1,053,872		12%		978,436		12	%
Non-owner occupied	1,939,517		21	%	1,964,010		21%		1,954,219		22%		1,885,122		22%		1,706,546		21	%
Consumer and other	371,317		4	%	366,998		4%		378,406		4%		355,681		4%		330,993		4	%
Total loans HFI	$	9,365,996	100	%	$	9,298,212	100%		$	9,105,016	100%		$	8,624,337	100%		$	8,004,976	100	%
Percentage of loans HFI portfolio with variable interest rates			47%				47%				47%				48%				49%
Percentage of loans HFI portfolio with variable interest rates that mature after one year			40%				40%				42%				42%				44%

Loans by market
Metropolitan	$	7,777,346	83	%	$	7,710,999	83	%	$	7,496,090	83	%	$	7,005,014	81	%	$	6,470,116	81	%
Community	668,192		7	%	670,043		7	%	669,810		7	%	682,134		8	%	704,254		9	%
Specialty lending and other	920,458		10	%	917,170		10	%	939,116		10	%	937,189		11	%	830,606		10	%
Total	$	9,365,996	100	%	$	9,298,212	100%		$	9,105,016	100%		$	8,624,337	100%		$	8,004,976	100	%

Unfunded loan commitments
Commercial and Industrial	$	1,125,810	34	%	$	1,026,078	29%		$	1,062,657	29%		$	1,003,189	30%		$	819,924	26	%
Construction	1,340,193		40	%	1,639,015		46%		1,696,733		45%		1,522,155		47%		1,599,738		50	%
Residential real estate:
1-to-4 family mortgage	670		—	%	829		—%		868		—%		949		—%		1,118		—	%
Residential line of credit	663,291		20	%	655,090		18%		640,834		18%		596,236		18%		579,098		18	%
Multi-family mortgage	6,310		—	%	17,092		1%		28,407		1%		11,742		—%		13,742		—	%
Commercial real estate:
Owner occupied	48,063		1	%	41,954		1%		63,457		2%		49,924		1%		48,769		2	%
Non-owner occupied	119,239		4	%	145,208		4%		136,163		4%		96,462		3%		101,335		3	%
Consumer and other	25,787		1	%	26,634		1%		30,358		1%		48,349		1%		32,261		1	%
Total unfunded loans HFI	$	3,329,363	100	%	$	3,551,900	100%		$	3,659,477	100%		$	3,329,006	100%		$	3,195,985	100	%


Asset Quality
As of or for the Quarter Ended
(Unaudited)
(In Thousands, Except %)

	2023			2022
	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Allowance for credit losses roll forward summary
Allowance for credit losses at the beginning of the period	$	134,192		$	134,476		$	126,272		$	120,049		$	125,559


Charge-offs	(767)			(1,273)			(461)			(2,388)			(579)
Recoveries	387			837			476			430			1,198
Provision for credit losses	4,997			152			8,189			8,181			(6,129)


Allowance for credit losses at the end of the period	$	138,809		$	134,192		$	134,476		$	126,272		$	120,049
Allowance for credit losses as a percentage of total loans HFI	1.48		%	1.44		%	1.48		%	1.46		%	1.50		%

Allowance for credit losses on unfunded commitments	$	18,463		$	22,969		$	23,577		$	20,399		$	16,262
Charge-offs
Commercial and Industrial	$	(46)		$	(332)		$	—		$	(1,751)		$	(4)

Residential real estate:
1-to-4 family mortgage	(16)			(34)			(20)			(23)			—


Commercial real estate:
Owner occupied	—			(15)			—			—			—
Non-owner occupied	—			(268)			—			—			—
Consumer and other	(705)			(624)			(441)			(614)			(575)
Total charge-offs	(767)			(1,273)			(461)			(2,388)			(579)
Recoveries
Commercial and Industrial	67			679			342			26			958
Construction	—			—			—			11			—
Residential real estate:
1-to-4 family mortgage	15			15			13			14			12
Residential line of credit	—			—			—			16			1

Commercial real estate:
Owner occupied	66			12			51			15			10

Consumer and other	239			131			70			348			217
Total recoveries	387			837			476			430			1,198
Net (charge-offs) recoveries	$	(380)		$	(436)		$	15		$	(1,958)		$	619
Net charge-offs (recoveries) as a percentage of average total loans	0.02		%	0.02		%	0.00		%	0.09		%	(0.03)		%
Nonperforming assets
Loans past due 90 days or more and accruing interest	$	12,580		$	18,415		$	16,002		$	14,585		$	12,873
Nonaccrual loans	32,900			27,431			26,625			29,535			27,826
Total nonperforming loans held for investment	45,480			45,846			42,627			44,120			40,699
Commercial loans held for sale	9,278			9,289			—			1,459			5,087
Mortgage loans held for sale(a)	20,528			26,211			26,485			—			—

Other real estate owned	4,085			5,794			5,919			9,398			9,721

Other assets	498			351			639			527			453
Total nonperforming assets	$	79,869		$	87,491		$	75,670		$	55,504		$	55,960
Total nonperforming loans as a percentage of loans held for investment	0.49		%	0.49		%	0.47		%	0.51		%	0.51		%
Total nonperforming assets as a percentage of total assets(a)	0.61		%	0.68		%	0.62		%	0.46		%	0.44		%
Total nonaccrual loans as a percentage of total loans HFI	0.35		%	0.30		%	0.29		%	0.34		%	0.35		%


Preliminary Capital Ratios
(Unaudited)
(In Thousands, Except %)

Computation of Tangible Common Equity to Tangible Assets:	March 31, 2023			December 31, 2022

Total Common Shareholders' Equity	$	1,369,696		$	1,325,425
Less:
Goodwill	242,561			242,561
Other intangibles	11,378			12,368
Tangible Common Equity	$	1,115,757		$	1,070,496

Total Assets	$	13,101,147		$	12,847,756
Less:
Goodwill	242,561			242,561
Other intangibles	11,378			12,368
Tangible Assets	$	12,847,208		$	12,592,827

Preliminary Total Risk-Weighted Assets	$	11,496,579		$	11,668,205

Total Common Equity to Total Assets	10.5		%	10.3		%
Tangible Common Equity to Tangible Assets*	8.68		%	8.50		%


	March 31, 2023			December 31, 2022
Preliminary Regulatory Capital(a):
Common Equity Tier 1 Capital	$	1,301,158		$	1,285,386
Tier 1 Capital	1,331,158			1,315,386
Total Capital	1,557,049			1,528,344

Preliminary Regulatory Capital Ratios:
Common Equity Tier 1	11.3		%	11.0		%
Tier 1 Risk-Based	11.6		%	11.3		%
Total Risk-Based	13.5		%	13.1		%
Tier 1 Leverage	10.3		%	10.5		%


Investments and Other Sources of Liquidity
(Unaudited)
(In Thousands, Except %)

	2023					2022
Securities (at fair value)	First Quarter					Fourth Quarter					Third Quarter					Second Quarter				First Quarter
Available-for-sale debt securities
U.S. government agency securities	$	40,928		3	%	$	40,062		3	%	$	39,831		3	%	$	42,059		3%	$	38,882		2	%
Mortgage-backed securities - residential	1,025,388			71	%	1,034,193			71	%	1,057,763			72	%	1,164,932			72%	1,232,256			73	%
Mortgage-backed securities - commercial	17,723			1	%	17,644			1	%	17,847			1	%	20,668			1%	14,307			1	%
Municipals, tax exempt	270,994			18	%	264,420			18	%	252,143			17	%	273,164			17%	310,138			18	%
Treasury securities	108,823			7	%	107,680			7	%	107,297			7	%	109,793			7%	80,173			5	%
Corporate securities	7,149			—	%	7,187			—	%	7,290			—	%	7,625			—%	7,769			1	%
Total available-for-sale debt securities	1,471,005			100	%	1,471,186			100	%	1,482,171			100	%	1,618,241			100%	1,683,525			100	%
Equity securities, at fair value	3,059			—	%	2,990			—%		2,962			—%		3,103			—%	3,213			—	%
Total securities	$	1,474,064		100%		$	1,474,176		100%		$	1,485,133		100%		$	1,621,344		100%	$	1,686,738		100%
Securities to total assets	11.3		%			11.5		%			12.1		%			13.3		%		13.3		%
Unrealized loss on available-for-sale debt securities	$	(207,265)				$	(234,388)				$	(258,614)				$	(167,510)			$	(100,933)

Sources of liquidity
Current on-balance sheet:
Cash and cash equivalents	$	1,319,951		82	%	$	1,027,052		78	%	$	618,290		69	%	$	872,861		74%	$	1,743,311		80	%
Unpledged securities	286,169			18	%	280,165			21	%	268,424			30	%	305,781			26%	430,118			20	%
Equity securities, at fair value	3,059			—	%	2,990			1	%	2,962			1	%	3,103			—%	3,213			—	%
Total on-balance sheet liquidity	$	1,609,179		100	%	$	1,310,207		100	%	$	889,676		100	%	$	1,181,745		100%	$	2,176,642		100	%

Available sources of liquidity:
Unsecured borrowing capacity(a)	$	3,755,059		55	%	$	3,595,812		52	%	$	3,376,027		55	%	$	3,533,368		54%	$	3,681,220		55	%
FHLB remaining borrowing capacity	473,160			7	%	829,959			12	%	408,874			7	%	713,384			11%	796,912			12	%
Federal Reserve discount window	2,548,886			38	%	2,470,000			36	%	2,378,820			38	%	2,302,292			35%	2,176,174			33	%
Total available sources of liquidity	$	6,777,105		100	%	$	6,895,771		100	%	$	6,163,721		100	%	$	6,549,044		100%	$	6,654,306		100	%

On-balance sheet liquidity as a percentage of total assets	12.3		%			10.2		%			7.3		%			9.7		%		17.2		%
On-balance sheet liquidity as a percentage of total tangible assets(b)	12.5		%			10.4		%			7.4		%			9.9		%		17.5		%
On-balance sheet liquidity and available sources of liquidity as a percentage of estimated uninsured and uncollateralized deposits	257.5		%			230.0		%			210.4		%			239.9		%		262.4		%


Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)

	2023		2022
Adjusted net income	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Income before income taxes	$	46,078	$	48,193	$	40,762	$	26,070	$	44,549
Plus mortgage restructuring expenses	—		—		—		12,458		—

Less gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination	910		(2,562)		(387)		(2,010)		(174)
Adjusted pre-tax net income	45,168		50,755		41,149		40,538		44,723
Adjusted income tax expense	9,460		10,710		9,032		10,487		9,358
Adjusted net income	$	35,708	$	40,045	$	32,117	$	30,051	$	35,365
Weighted average common shares outstanding - fully diluted	46,765,154		47,036,742		47,024,611		47,211,650		47,723,902
Adjusted diluted earnings per common share
Diluted earnings per common share	$	0.78	$	0.81	$	0.68	$	0.41	$	0.74
Plus mortgage restructuring expenses	—		—		—		0.27		—


Less gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination	0.02		(0.05)		—		(0.04)		—
Less tax effect	—		0.01		—		0.08		—
Adjusted diluted earnings per common share	$	0.76	$	0.85	$	0.68	$	0.64	$	0.74


	2023		2022
Adjusted pre-tax pre-provision earnings	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Income before income taxes	$	46,078	$	48,193	$	40,762	$	26,070	$	44,549
Plus provisions for credit losses	491		(456)		11,367		12,318		(4,247)
Pre-tax pre-provision earnings	46,569		47,737		52,129		38,388		40,302
Plus mortgage restructuring expenses	—		—		—		12,458		—
Less gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination	910		(2,562)		(387)		(2,010)		(174)
Adjusted pre-tax pre-provision earnings	$	45,659	$	50,299	$	52,516	$	52,856	$	40,476


Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)

Adjusted net income	YTD 2023		2022		2021		2020		2019
Income before income taxes	$	46,078	$	159,574	$	243,051	$	82,461	$	109,539
Plus mortgage restructuring, offering, and merger and conversion expenses	—		12,458		605		34,879		7,380
Plus initial provision for credit losses on acquired loans and unfunded commitments	—		—		—		66,136		—
Less other non-operating items (1)	910		(5,133)		11,032		(4,400)		—
Adjusted pre-tax net income	45,168		177,165		232,624		187,876		116,919
Adjusted income tax expense(2)	9,460		39,587		51,553		45,944		27,648
Adjusted net income	$	35,708	$	137,578	$	181,071	$	141,932	$	89,271
Weighted average common shares outstanding - fully diluted	46,765,154		47,239,791		47,955,880		38,099,744		31,402,897
Adjusted diluted earnings per common share
Diluted earnings per common share	$	0.78	$	2.64	$	3.97	$	1.67	$	2.65
Plus mortgage restructuring, offering, and merger and conversion expenses	—		0.26		0.01		0.92		0.24
Plus initial provision for credit losses on acquired loans and unfunded commitments	—		—		—		1.74		—
Less other non-operating items	0.02		(0.11)		0.22		(0.11)		—
Less tax effect	—		0.10		(0.02)		0.71		0.06
Adjusted diluted earnings per common share	$	0.76	$	2.91	$	3.78	$	3.73	$	2.83

(1) The following table presents amounts included in "other non-operating items" for each of the periods presented.
Other non-operating items	YTD 2023		2022		2021		2020		2019
Gain (loss) on other real estate owned	$	—	$	—	$	2,005	$	(1,505)	$	—
Gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination	910		(5,133)		11,172		3,228		—
Cash life insurance benefit	—		—		—		715		—
Loss on swap cancellation	—		—		(1,510)		—		—
Gain from lease terminations	—		—		787		—		—
Certain nonrecurring charitable contributions	—		—		(1,422)		—		—
FHLB prepayment penalties	—		—		—		(6,838)		—
Total other non-operating items	$	910	$	(5,133)	$	11,032	$	(4,400)	$	—

(2) 2021 includes a $1,678 tax benefit related to a change in the value of a net operating loss tax asset related to previous business combination.

Adjusted pre-tax pre-provision earnings	YTD 2023		2022		2021		2020		2019
Income before income taxes	$	46,078	$	159,574	$	243,051	$	82,461	$	109,539
Plus provisions for credit losses	491		18,982		(40,993)		107,967		7,053
Pre-tax pre-provision earnings	46,569		178,556		202,058		190,428		116,592
Plus mortgage restructuring, offering, and merger and conversion expenses	—		12,458		605		34,879		7,380
Less other non-operating items	910		(5,133)		11,032		(4,400)		—
Adjusted pre-tax pre-provision earnings	$	45,659	$	196,147	$	191,631	$	229,707	$	123,972


Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)

	2023			2022
Core efficiency ratio (tax-equivalent basis)	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Total noninterest expense	$	80,636		$	80,230		$	81,847		$	96,997		$	89,272
Less mortgage restructuring expenses	—			—			—			12,458			—




Core noninterest expense	$	80,636		$	80,230		$	81,847		$	84,539		$	89,272
Net interest income (tax-equivalent basis)	$	104,493		$	111,279		$	112,145		$	102,926		$	88,932
Total noninterest income	23,545			17,469			22,592			33,214			41,392
Less gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination	910			(2,562)			(387)			(2,010)			(174)


Less (loss) gain on sales or write-downs of other real estate owned and other assets	(183)			(252)			429			(8)			(434)
Less gain (loss) from securities, net	69			25			(140)			(109)			(152)
Core noninterest income	22,749			20,258			22,690			35,341			42,152
Core revenue	$	127,242		$	131,537		$	134,835		$	138,267		$	131,084
Efficiency ratio (GAAP)(a)	63.4		%	62.7		%	61.1		%	71.6		%	68.9		%
Core efficiency ratio (tax-equivalent basis)	63.4		%	61.0		%	60.7		%	61.1		%	68.1		%
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.

	2023			2022
Banking segment core efficiency ratio (tax equivalent)	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter


Banking segment noninterest expense	68,546			66,926			65,886			59,320			59,584
Banking segment net interest income (tax-equivalent basis)	$	104,300		$	111,279		$	112,145		$	102,926		$	88,934
Core noninterest income	22,749			20,258			22,690			35,341			42,152
Less Mortgage segment core noninterest income	12,095			9,148			12,384			22,559			29,531
Banking segment core noninterest income	10,654			11,110			10,306			12,782			12,621
Core revenue	127,242			131,537			134,835			138,267			131,084
Less Mortgage segment core total revenue	12,288			9,148			12,384			22,559			29,529
Banking segment core total revenue	$	114,954		$	122,389		$	122,451		$	115,708		$	101,555
Banking segment efficiency ratio (GAAP)	59.4		%	56.3		%	54.1		%	52.6		%	59.5		%
Banking segment core efficiency ratio (tax-equivalent basis)	59.6		%	54.7		%	53.8		%	51.3		%	58.7		%

Mortgage segment core efficiency ratio (tax-equivalent)
Mortgage segment noninterest expense	$	12,090		$	13,304		$	15,961		$	37,677		$	29,688

Less mortgage restructuring expense	—			—			—			12,458			—

Mortgage segment core noninterest expense	$	12,090		$	13,304		$	15,961		$	25,219		$	29,688
Mortgage segment net interest income	193			—			—			—			(2)
Mortgage segment noninterest income	11,663			9,124			12,299			22,515			29,409
Less (loss) gain on sales or write-downs of other real estate owned	(432)			(24)			(85)			(44)			(122)
Mortgage segment core noninterest income	12,095			9,148			12,384			22,559			29,531
Mortgage segment core total revenue	$	12,288		$	9,148		$	12,384		$	22,559		$	29,529
Mortgage segment efficiency ratio (GAAP)	102.0		%	145.8		%	129.8		%	167.3		%	101.0		%
Mortgage segment core efficiency ratio (tax-equivalent basis)	98.4		%	145.4		%	128.9		%	111.8		%	100.5		%


Non-GAAP Reconciliation (continued)
As of or for the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)

	2023			2022
Adjusted Banking segment pre-tax pre-provision earnings	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Banking segment pre-tax net contribution	$	46,312		$	52,373		$	44,424		$	41,232		$	44,830
Plus provisions for credit losses	491			(456)			11,367			12,318			(4,247)
Banking segment pre-tax pre-provision earnings	46,803			51,917			55,791			53,550			40,583

Less gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination	910			(2,562)			(387)			(2,010)			(174)
Adjusted Banking segment pre-tax pre-provision earnings	$	45,893		$	54,479		$	56,178		$	55,560		$	40,757

	2023			2022
Adjusted Mortgage segment loss	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter





Mortgage segment pre-tax net loss	$	(234)		$	(4,180)		$	(3,662)		$	(15,162)		$	(281)

Plus mortgage restructuring expense	—			—			—			12,458			—
Adjusted Mortgage segment pre-tax net loss	$	(234)		$	(4,180)		$	(3,662)		$	(2,704)		$	(281)





	2023			2022
Tangible assets and equity	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Tangible assets
Total assets	$	13,101,147		$	12,847,756		$	12,258,082		$	12,193,862		$	12,674,191
Less goodwill	242,561			242,561			242,561			242,561			242,561
Less intangibles, net	11,378			12,368			13,407			14,515			15,709
Tangible assets	$	12,847,208		$	12,592,827		$	12,002,114		$	11,936,786		$	12,415,921
Tangible common equity
Total common shareholders' equity	$	1,369,696		$	1,325,425		$	1,281,161		$	1,319,852		$	1,379,776
Less goodwill	242,561			242,561			242,561			242,561			242,561
Less intangibles, net	11,378			12,368			13,407			14,515			15,709
Tangible common equity	$	1,115,757		$	1,070,496		$	1,025,193		$	1,062,776		$	1,121,506
Less accumulated other comprehensive loss, net	(149,566)			(169,433)			(187,440)			(120,495)			(71,544)
Adjusted tangible common equity	$	1,265,323		$	1,239,929		$	1,212,633		$	1,183,271		$	1,193,050
Common shares outstanding	46,762,626			46,737,912			46,926,377			46,881,896			47,487,874
Book value per common share	$	29.29		$	28.36		$	27.30		$	28.15		$	29.06
Tangible book value per common share	$	23.86		$	22.90		$	21.85		$	22.67		$	23.62
Adjusted tangible book value per common share	$	27.06		$	26.53		$	25.84		$	25.24		$	25.12
Total common shareholders' equity to total assets	10.5		%	10.3		%	10.5		%	10.8		%	10.9		%
Tangible common equity to tangible assets	8.68		%	8.50		%	8.54		%	8.90		%	9.03		%
On-balance sheet liquidity:
Cash and cash equivalents	$	1,319,951		$	1,027,052		$	618,290		$	872,861		$	1,743,311
Unpledged securities	286,169			280,165			268,424			305,781			430,118
Equity securities, at fair value	3,059			2,990			2,962			3,103			3,213
Total on-balance sheet liquidity	$	1,609,179		$	1,310,207		$	889,676		$	1,181,745		$	2,176,642
On-balance sheet liquidity as a percentage of total assets	12.3		%	10.2		%	7.26		%	9.69		%	17.2		%
On-balance sheet liquidity as a percentage of total tangible assets	12.5		%	10.4		%	7.41		%	9.90		%	17.5		%


Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)


	2023			2022
Return on average tangible common equity	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Average common shareholders' equity	$	1,343,227		$	1,294,758		$	1,336,143		$	1,352,701		$	1,415,985
Less average goodwill	242,561			242,561			242,561			242,561			242,561
Less average intangibles, net	11,862			12,865			13,953			15,144			16,376
Average tangible common equity	$	1,088,804		$	1,039,332		$	1,079,629		$	1,094,996		$	1,157,048
Net income	$	36,381		$	38,143		$	31,831		$	19,345		$	35,236
Return on average common equity	11.0		%	11.7		%	9.45		%	5.74		%	10.1		%
Return on average tangible common equity	13.6		%	14.6		%	11.7		%	7.09		%	12.4		%
Adjusted net income	$	35,708		$	40,045		$	32,117		$	30,051		$	35,365
Adjusted return on average tangible common equity	13.3		%	15.3		%	11.8		%	11.0		%	12.4		%



Return on average tangible common equity	YTD 2023			2022			2021			2020			2019
Average common shareholders' equity	$	1,343,227		$	1,349,583		$	1,361,637		$	966,336		$	723,494
Less average goodwill	242,561			242,561			242,561			199,104			160,587
Less average intangibles, net	11,862			14,573			19,606			22,659			17,236
Average tangible common equity	$	1,088,804		$	1,092,449		$	1,099,470		$	744,573		$	545,671
Net income	$	36,381		$	124,555		$	190,285		$	63,621		$	83,814
Return on average common equity	11.0		%	9.23		%	14.0		%	6.58		%	11.6		%
Return on average tangible common equity	13.6		%	11.4		%	17.3		%	8.54		%	15.4		%



Adjusted net income	$	35,708		$	137,578		$	181,071		$	141,932		$	89,271
Adjusted return on average tangible common equity	13.3		%	12.6		%	16.5		%	19.1		%	16.4		%







Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)

	2023			2022
Adjusted return on average assets and equity	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Net income	$	36,381		$	38,143		$	31,831		$	19,345		$	35,236
Average assets	12,861,614			12,446,027			12,038,115			12,427,479			12,641,489
Average common equity	1,343,227			1,294,758			1,336,143			1,352,701			1,415,985
Return on average assets	1.15		%	1.22		%	1.05		%	0.62		%	1.13		%
Return on average common equity	11.0		%	11.7		%	9.45		%	5.74		%	10.1		%
Adjusted net income	$	35,708		$	40,045		$	32,117		$	30,051		$	35,365
Adjusted return on average assets	1.13		%	1.28		%	1.06		%	0.97		%	1.13		%
Adjusted return on average common equity	10.8		%	12.3		%	9.54		%	8.91		%	10.1		%













Adjusted pre-tax pre-provision earnings	$	45,659		$	50,299		$	52,516		$	52,856		$	40,476
Adjusted pre-tax pre-provision return on average assets	1.44		%	1.60		%	1.73		%	1.71		%	1.30		%


Adjusted return on average assets and equity	YTD 2023			2022			2021			2020			2019
Net income	$	36,381		$	124,555		$	190,285		$	63,621		$	83,814
Average assets	12,861,614			12,377,850			11,848,460			8,438,100			5,777,672
Average common equity	1,343,227			1,349,583			1,361,637			966,336			723,494
Return on average assets	1.15		%	1.01		%	1.61		%	0.75		%	1.45		%
Return on average common equity	11.0		%	9.23		%	14.0		%	6.58		%	11.6		%
Adjusted net income	$	35,708		$	137,578		$	181,071		$	141,932		$	89,271
Adjusted return on average assets	1.13		%	1.11		%	1.53		%	1.68		%	1.55		%
Adjusted return on average common equity	10.8		%	10.2		%	13.3		%	14.7		%	12.3		%




Adjusted pre-tax pre-provision earnings	$	45,659		$	196,147		$	191,631		$	229,707		$	123,972
Adjusted pre-tax pre-provision return on average assets	1.44		%	1.58		%	1.62		%	2.72		%	2.15		%


			Page

Financial Summary and Key Metrics			4

Consolidated Statements of Income			5

Consolidated Balance Sheets			6

Average Balance, Average Yield Earned and Average Rate Paid			7



Selected Deposit Data			9

Segment Data			10

Loan Portfolio			11

Asset Quality			12

Preliminary Capital Ratios			13

Investments and Other Sources of Liquidity			14

Non-GAAP Reconciliation			15