MVB Financial Corp. (NASDAQ:MVBF) ("MVB Financial," "MVB" or the "Company") today reported net income of $11.8 million, or $1.00 basic and $0.92 diluted earnings per share for the three months ended September 30, 2021.

	Quarterly						Year-to-Date
	2021		2021		2020		2021		2020
	Third Quarter		Second Quarter		Third Quarter		2021		2020
Net income	$	11,828	$	9,247	$	6,491	$	29,160	$	25,573
Earnings per share - basic	$	1.00	$	0.79	$	0.53	$	2.49	$	2.11
Earnings per share - diluted	$	0.92	$	0.73	$	0.53	$	2.32	$	2.07

"MVB's third quarter results and actions reflect our embrace of the transformative power of technology in our industry," said Larry F. Mazza, President and CEO, MVB Financial. "During the third quarter, we made further progress in our efforts to build a world-class deposit franchise, with noninterest-bearing Fintech deposits now representing nearly 42% of our total deposit funding. We remain the clear leader in the online gaming segment, and the wind is at our back, with 33 states, 29 of which are operational, representing 57% of the U.S. adult population, having legalized sports betting to date. In addition to the beneficial impact to our margin, especially in a rising rate environment, low-cost funding from our Fintech business allows us to redeploy resources to faster-growth markets and additional technology spend and investments. Toward that end, during the third quarter, we exited our Southern West Virginia banking market, entered into a partnership agreement with NYDIG that allows our Fintech clients to offer Bitcoin-related products and expanded our investment in Interchecks Technologies, Inc., a Fintech portfolio investment that has become more integrated in our core business."

THIRD QUARTER 2021 HIGHLIGHTS

Strong core deposit growth reflects continued expansion of Fintech and gaming verticals
- Noninterest-bearing ("NIB") deposits were $999.3 million as of September 30, 2021, up $66.7 million, or 7%, and $356.5 million, or 55%, from June 30, 2021 and September 30, 2020, respectively. NIB deposits as a percentage of total deposits were 42% as of September 30, 2021, as compared to 42% and 34% as of June 30, 2021 and September 30, 2020, respectively.
- Fintech deposits totaled $975.7 million as of September 30, 2021, up $209.8 million, or 27%, and $610.9 million, or 167%, from June 30, 2021 and September 30, 2020, respectively.
- Gaming deposits, which are included in total Fintech deposits, totaled $774.1 million as of September 30, 2021, up $178.2 million, or 30%, and $567.5 million, or 275%, from June 30, 2021 and September 30, 2020, respectively.
- Since the ruling by the U.S. Supreme Court that overturned the Professional and Amateur Sports Protection Act in 2018, 33 states have passed legislation that allows sports betting including 19 since the start of 2020, representing approximately 57% of the U.S. adult population.
Loan expansion despite banking center sales and PPP forgiveness
- Loans grew $66.9 million, or 4%, compared to the quarter ended June 30, 2021. The loan growth was despite the Company selling $53.9 million loans in the previously-announced branch sale and recognizing $60.0 million of PPP loan forgiveness during the quarter.
Continued strong growth in tangible book value per share
- Tangible book value ("TBV") per share, a non-U.S. GAAP measure, was $21.64 as of September 30, 2021, an increase of 5% and 16% from June 30, 2021 and September 30, 2020, respectively. A reconciliation of TBV to its most comparable U.S. GAAP measure is included below.
- As a result of this strong capital position and earnings as of September 30, 2021, the Company increased the quarterly dividend to $0.14 per share for the third quarter of 2021, up from $0.12 per share in the second quarter, an increase of 17%.
- The Community Bank Leverage Ratio was 12.0% compared to 11.0% as of June 30, 2021. The increase is due to increases in capital due to earnings outpacing the increase in average assets and completion of the $30 million subordinated debt offering.
Recent corporate actions reflect a focused reallocation of resources amid Fintech success
- During the third quarter, MVB completed the sale of four banking centers in Southern West Virginia, recording a pre-tax gain of $10.8 million, marking its complete exit from the market. The transformation of the funding base resulting from the pivot toward Fintech has allowed the Company to eliminate physical infrastructure, most notably its banking center footprint, which has been reduced by nearly half, from 15 in 2018 to eight currently.
- Resources have been refocused on MVB's core, higher-growth markets and new business verticals. For example, in April 2021, MVB acquired Trabian Technology, Inc. ("Trabian"), a software development company that builds digital products, web and mobile applications for financial institutions, to enhance development of technology to support both internal efficiencies and external client growth. During the three months ended September 30, 2021, there was an increase of 16 employees within Trabian, primarily due to the continued hiring of software developers. Also during the third quarter of 2021, the Company entered into a new partnership agreement with NYDIG, a leading technology and financial services firm dedicated to Bitcoin, that allows MVB's Fintech clients to offer Bitcoin-related products and expanded its investment in Interchecks Technologies, Inc. ("Interchecks"). Interchecks is a leading payment disbursement platform, which is a Fintech portfolio investment whose business and founding principles are becoming more integrated into MVB's Fintech business vertical. During the three months ended September 30, 2021, Interchecks entered into a management contract with MVB Technology, LLC to support the continued development and sales of the Grand product.

INCOME STATEMENT

On a fully tax-equivalent basis, net interest margin for the quarter ended September 30, 2021 was 3.25%, an increase of one basis points versus the quarter ended June 30, 2021 and a decrease of ten basis points versus the quarter ended September 30, 2020. Please see the table below for a reconciliation between net interest margin and net interest margin on a fully tax-equivalent basis, a non-GAAP measure. The tax-equivalent adjustments impacting net interest income were $0.3 million for the quarter ended September 30, 2021, $0.4 million for the quarter ended June 30, 2021 and $0.3 million for the quarter ended September 30, 2020.

Interest income decreased $0.3 million, or 2%, compared to the quarter ended June 30, 2021 and increased $1.9 million, or 10%, compared to the quarter ended September 30, 2020. The tax-equivalent yield on commercial loans decreased 17 basis points compared to the quarter ended June 30, 2021. The 44-basis point decrease in the yield on commercial loans and the 94-basis point decrease in the yield on investments drove the 40-basis point decrease in the tax-equivalent yield on earning assets compared to the quarter ended September 30, 2020.

Interest expense decreased $0.4 million, or 22%, compared to the quarter ended June 30, 2021 and decreased $1.2 million, or 47%, compared to the quarter ended September 30, 2020. The eight-basis point decrease in the cost of interest-bearing liabilities compared to the quarter ended June 30, 2021 was driven by an 18-basis point decrease in the cost of NOW accounts and overall a decrease of nine-basis points in the cost of deposits. The 40-basis point decrease in the cost of interest-bearing liabilities compared to the quarter ended September 30, 2020 was driven by a 34-basis point decrease in the cost of NOW accounts.

The Company's average NIB balances increased by $42.6 million from the quarter ended June 30, 2021 and the Company maintained a 16-basis point favorable spread on the tax-equivalent net interest margin for the quarter ended September 30, 2021, compared to a 17-basis point favorable spread for the quarter ended June 30, 2021. An increase in the Company's average NIB balances of $310.4 million from the quarter ended September 30, 2020 helped to maintain a 16-basis point favorable spread on the tax-equivalent net interest margin for the quarter ended September 30, 2021, compared to a 26-basis point favorable spread for the same period in 2020.

Noninterest income totaled $22.0 million for the quarter ended September 30, 2021, an increase of $8.3 million, or 61%, from the quarter ended June 30, 2021 and an increase of $2.6 million, or 13%, from the quarter ended September 30, 2020.

The $8.3 million increase in noninterest income from the quarter ended June 30, 2021 was due primarily to the gain on sale of branches of $10.8 million and an increase in compliance and consulting income of $1.1 million. These increases were partially offset by decreases in equity method investment income related to the Company's investment in Intercoastal Mortgage Company, LLC ("ICM") of $1.0 million, gains on the sale of available-for-sale investments of $1.2 million and gains on the sale of loans of $0.5 million.

The $2.6 million increase in noninterest income from the quarter ended September 30, 2020 was primarily due to the gain on acquisition and divestiture activity of $10.8 million from the sale of four banking centers in Southern West Virginia, as well as increases of $1.9 million and $1.0 million in compliance and consulting income and payment card and service charge income, respectively. The increase in compliance and consulting income was due to Chartwell Compliance's continued client expansion and additional income from Trabian, which was acquired in April 2021. The increase in payment card and service charge income was the result of the Company's banking-as-a-service relationships and card acquiring business growth. These increases were partially offset by decreases in equity method investment income related to the Company's investment in ICM of $10.0 million from the transition to the equity method from the mortgage combination with ICM that occurred in July 2020.

Noninterest expense totaled $25.8 million for the quarter ended September 30, 2021, an increase of $2.4 million, or 10%, from the quarter ended June 30, 2021 and an increase of $7.6 million, or 41%, from the quarter ended September 30, 2020.

The $2.4 million increase in noninterest expense from the quarter ended June 30, 2021 was due to an increase in salaries and employee benefits of $2.9 million, primarily driven by new hires to further build-out the Fintech vertical at the Bank, Chartwell Compliance, Trabian and the shared services at the Holding Company.

The $7.6 million increase in noninterest expense from the quarter ended September 30, 2020 was primarily due to increases in salaries and employee benefits of $6.0 million and professional fees of $1.1 million.

BALANCE SHEET

Loan growth will continue to enhance future profitability and loan balances grew $66.9 million as compared to June 30, 2021 and $335.6 million as compared to September 30, 2020. Included in loans are PPP loans totaling $147.3 million at September 30, 2021, a decrease of $60.0 million, or 29%, from June 30, 2021, and an increase of $59.4 million, or 68%, from September 30, 2020. Additionally, $54.2 million of loans were included in the sale of the four Southern West Virginia market branches to Summit Community Bank.

The tax-equivalent yield on loans, including PPP loans, was 4.25% for the quarter ended September 30, 2021, a decrease of six basis points from the quarter ended June 30, 2021 and a decrease of 26 basis points from the quarter ended September 30, 2020. These decreases were primarily the result of a decrease in the yield on commercial loans.

Deposits totaled $2.40 billion as of September 30, 2021, an increase of $169.8 million, or 8%, from June 30, 2021 and an increase of $500.0 million, or 26%, from September 30, 2020. With NIB deposits as a percentage of total deposits at 42% as of September 30, 2021, the Company's strategy to evolve its deposit mix by replacing high-cost deposits with NIB deposits has proved to be successful and viable long-term.

CAPITAL

Subordinated debt of $30.0 million was issued on September 28, 2021 with a rate fixed at 3.25% for five years then floating, adjustable annually, to the Three-Month Term SOFR, plus 254 basis points. These notes qualify as Tier 2 capital for regulatory purposes.

Due to strong earnings and the issuance of subordinated debt, all regulatory capital ratios increased quarter over quarter. The Community Bank Leverage Ratio was 12.0% and 11.0% as of September 30, 2021 and June 30, 2021, respectively. The Bank's Tier 1 Risk-Based Capital was 15.7% and 14.8% as of September 30, 2021 and June 30, 2021, respectively. The Bank's Total Risk-Based Capital was 17.0% and 16.0% as of September 30, 2021 and June 30, 2021, respectively.

ASSET QUALITY

Changes to the outstanding balances of the loan portfolios, the level of recognized charge-offs and the resulting historical loss rates and adjustments to the risk grading of loans within the portfolio are all contributing factors in the provision for loan losses. Nonperforming loans totaled $17.5 million, or 1.0% of total loans, as of September 30, 2021, compared to 0.9% of total loans as of June 30, 2021 and compared to 1.0% of total loans as of September 30, 2020. Criticized loans as a percentage of total loans were 6.5%, a decrease of 77 basis points, or 11%, from June 30, 2021, and a decrease of 174 basis points, or 21%, from September 30, 2020.

The provision for loan losses totaled $0.4 million for the quarter ended September 30, 2021, compared to a release of allowance for loan losses of $1.5 million for the quarter ended June 30, 2021 and a provision of $8.6 million for the quarter ended September 30, 2020.

Allowance for loan losses to total loans was 1.4% as of September 30, 2021, a decrease of four basis points from June 30, 2021 and a decrease of 39 basis points from September 30, 2020. Excluding PPP loans of $147.3 million, allowance for loan losses to total loans was 1.6% as of September 30, 2021.

There were no significant net charge-offs for the quarter ended September 30, 2021 and none in the quarter ended June 30, 2021, compared to $1.9 million of net charge-offs for the quarter ended September 30, 2020.

About MVB Financial Corp.

MVB Financial Corp., the holding company of MVB Bank, Inc., is publicly traded on The Nasdaq Capital Market® ("Nasdaq") under the ticker "MVBF."

MVB is a financial holding company headquartered in Fairmont, WV. Through its subsidiary, MVB Bank, Inc., and the bank's subsidiaries, the Company provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond.

Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services.

For more information about MVB, please visit ir.mvbbanking.com.

Forward-looking Statements

MVB Financial has made forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this press release that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about the future and are subject to risks and uncertainties. Forward-looking statements include, without limitation, information concerning possible or assumed future results of operations of the Company and its subsidiaries. Forward-looking statements can be identified by the use of words such as "may," "could," "should," "would," "will," "plans," "believes," "estimates," "expects," "anticipates," "intends," "continues" or the negative of those terms or similar expressions. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in forward-looking statements. Therefore, undue reliance should not be placed upon any forward-looking statements. Those factors include but are not limited to: market, economic, operational, liquidity and credit risk; changes in market interest rates; inability to achieve anticipated synergies and successfully integrate recent mergers and acquisitions; inability to successfully execute business plans, including strategies related to investments in financial technology companies; competition; length and severity of the COVID-19 pandemic and its impact on the Company's business and financial condition; changes in economic, business and political conditions; changes in demand for loan products and deposit flow; operational risks and risk management failures; and government regulation and supervision. Additional factors that may cause actual results to differ materially from those described in the forward-looking statements can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, as well as its other filings with the Securities and Exchange Commission ("SEC"), which are available on the SEC's website at www.sec.gov. Except as required by law, the Company disclaims any obligation to update, revise or correct any forward-looking statements.

Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company's financial statements when filed with the SEC. Accordingly, the consolidated financial information in this announcement is subject to change.

MVB Financial Corp. Financial Highlights Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data)

	Quarterly							Year-to-Date
	2021		2021			2020		2021			2020
	Third Quarter		Second Quarter			Third Quarter		2021			2020
Interest income	$	20,484	$	20,833		$	18,627	$	60,380		$	61,100
Interest expense	1,388		$	1,778		2,617		4,724			10,461
Net interest income	19,096		$	19,055		16,010		55,656			50,639
Provision (release of allowance) for loan losses	380		$	(1,540	)	8,631		(542		)	16,365
Net interest income after provision (release of allowance) for loan losses	18,716		$	20,595		7,379		56,198			34,274

Total noninterest income	21,951		$	13,644		19,398		48,053			75,761

Noninterest expense:
Salaries and employee benefits	16,528		$	13,661		10,519		42,100			49,360
Other expense	9,301		$	9,742		7,746		26,250			26,894
Total noninterest expenses	25,829		$	23,403		18,265		68,350			76,254

Income before income taxes	14,838		$	10,836		8,512		35,901			33,781
Income tax expense	3,164		$	1,673		2,021		7,006			8,208
Net income before noncontrolling interest	11,674		$	9,163		6,491		28,895			25,573
Net loss attributable to noncontrolling interest	154		$	84		—		265			—
Net income attributable to parent	11,828		$	9,247		6,491		29,160			25,573
Preferred dividends	—		$	—		116		35			345
Net income available to common shareholders	$	11,828	$	9,247		$	6,375	$	29,125		$	25,228

Earnings per share - basic	$	1.00	$	0.79		$	0.53	$	2.49		$	2.11
Earnings per share - diluted	$	0.92	$	0.73		$	0.53	$	2.32		$	2.07

Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands)

	September 30, 2021		June 30, 2021		September 30, 2020
Cash and cash equivalents	$	390,081	$	332,771	$	295,823
Certificates of deposit with banks	9,582		11,803		12,301
Securities available-for-sale, at fair value	439,023		450,772		297,964
Equity securities	29,809		32,215		24,164
Loans held-for-sale	—		—		2,271
Loans receivable	1,764,186		1,697,326		1,428,593
Less: Allowance for loan losses	(25,187)		(24,882)		(25,913)
Loans receivable, net	1,738,999		1,672,444		1,402,680
Premises and equipment, net	25,043		21,033		26,176
Goodwill	3,988		4,119		2,350
Assets of branches held-for-sale	—		59,488		—
Other assets	152,299		149,895		150,730
Total assets	$	2,788,824	$	2,734,540	$	2,214,459

Noninterest-bearing deposits	$	999,328	$	932,660	$	642,835
Interest-bearing deposits	1,399,612		1,296,515		1,256,122
Liabilities of branches held-for-sale	—		165,750		—
FHLB and other borrowings	—		100		25,800
Subordinated debt	72,966		43,480		4,124
Other liabilities	50,218		46,635		51,462
Stockholders' equity, including noncontrolling interest	266,700		249,400		234,116
Total liabilities and stockholders' equity	$	2,788,824	$	2,734,540	$	2,214,459

Reportable Segments (Unaudited)

Three Months Ended September 30, 2021	CoRe Banking		Mortgage Banking			Financial Holding Company			Intercompany Eliminations			Consolidated
(Dollars in thousands)
Interest income	$	20,383	$	105		$	1		$	(5	)	$	20,484
Interest expense	912		—			481			(5		)	1,388
Net interest income	19,471		105			(480		)	—			19,096
Provision for loan losses	379		1			—			—			380
Net interest income after provision for loan losses	19,092		104			(480		)	—			18,716

Total noninterest income	20,211		3,546			2,002			(3,808		)	21,951

Noninterest Expenses:
Salaries and employee benefits	13,097		47			3,384			—			16,528
Other expense	11,654		(198		)	1,653			(3,808		)	9,301
Total noninterest expenses	24,751		(151		)	5,037			(3,808		)	25,829

Income (loss) before income taxes	14,552		3,801			(3,515		)	—			14,838
Income tax expense (benefit)	2,973		922			(731		)	—			3,164
Net income (loss) before noncontrolling interest	11,579		2,879			(2,784		)	—			11,674
Net loss attributable to noncontrolling interest	154		—			—			—			154
Net income (loss) attributable to parent	11,733		2,879			(2,784		)	—			11,828
Preferred stock dividends	—		—			—			—			—
Net income (loss) available to common shareholders	$	11,733	$	2,879		$	(2,784	)	$	—		$	11,828

Three Months Ended June 30, 2021	CoRe Banking			Mortgage Banking		Financial Holding Company			Intercompany Eliminations			Consolidated
(Dollars in thousands)
Interest income	$	20,736		$	98	$	—		$	(1	)	$	20,833
Interest expense	1,290			—		490			(2		)	1,778
Net interest income	19,446			98		(490		)	1			19,055
Release of allowance for loan losses	(1,540		)	—		—			—			(1,540		)
Net interest income after release of allowance for loan losses	20,986			98		(490		)	1			20,595

Total noninterest income	9,986			4,546		2,309			(3,197		)	13,644

Noninterest Expenses:
Salaries and employee benefits	10,384			—		3,277			—			13,661
Other expense	11,578			23		1,337			(3,196		)	9,742
Total noninterest expenses	21,962			23		4,614			(3,196		)	23,403

Income (loss) before income taxes	9,010			4,621		(2,795		)	—			10,836
Income tax expense (benefit)	1,168			1,120		(615		)	—			1,673
Net income (loss) before noncontrolling interest	7,842			3,501		(2,180		)	—			9,163
Net loss attributable to noncontrolling interest	84			—		—			—			84
Net income (loss) attributable to parent	7,926			3,501		(2,180		)	—			9,247
Preferred stock dividends	—			—		—			—			—
Net income (loss) available to common shareholders	$	7,926		$	3,501	$	(2,180	)	$	—		$	9,247

Three Months Ended September 30, 2020	CoRe Banking			Mortgage Banking			Financial Holding Company			Intercompany Eliminations			Consolidated
(Dollars in thousands)
Interest income	$	18,737		$	78		$	—		$	(188	)	$	18,627
Interest expense	2,553			232			20			(188		)	2,617
Net interest income	16,184			(154		)	(20		)	—			16,010
Provision for loan losses	8,631			—			—			—			8,631
Net interest income after provision for loan losses	7,553			(154		)	(20		)	—			7,379

Total noninterest income	3,106			16,793			1,481			(1,982		)	19,398

Noninterest Expenses:
Salaries and employee benefits	7,526			82			2,911			—			10,519
Other expense	8,389			68			1,271			(1,982		)	7,746
Total noninterest expenses	15,915			150			4,182			(1,982		)	18,265

Income (loss) before income taxes	(5,256		)	16,489			(2,721		)	—			8,512
Income tax expense (benefit)	(1,556		)	4,245			(668		)	—			2,021
Net income (loss)	(3,700		)	12,244			(2,053		)	—			6,491
Preferred stock dividends	—			—			116			—			116
Net income (loss) available to common shareholders	$	(3,700	)	$	12,244		$	(2,169	)	$	—		$	6,375

Nine Months Ended September 30, 2021	CoRe Banking			Mortgage Banking			Financial Holding Company			Intercompany Eliminations			Consolidated
(Dollars in thousands)	CoRe Banking			Mortgage Banking			Financial Holding Company			Intercompany Eliminations			Consolidated
Interest income	$	60,078		$	307		$	2		$	(7	)	$	60,380
Interest expense	3,294			—			1,437			(7		)	4,724
Net interest income	56,784			307			(1,435		)	—			55,656
Release of allowance for loan losses	(541		)	(1		)	—			—			(542		)
Net interest income after release of allowance for loan losses	57,325			308			(1,435		)	—			56,198

Total noninterest income	36,634			14,499			5,892			(8,972		)	48,053

Noninterest Expenses:
Salaries and employee benefits	32,323			47			9,730			—			42,100
Other expense	31,261			(112		)	4,073			(8,972		)	26,250
Total noninterest expenses	63,584			(65		)	13,803			(8,972		)	68,350

Income (loss) before income taxes	30,375			14,872			(9,346		)	—			35,901
Income tax expense (benefit)	5,290			3,606			(1,890		)	—			7,006
Net income (loss) before noncontrolling interest	25,085			11,266			(7,456		)	—			28,895
Net loss attributable to noncontrolling interest	265			—			—			—			265
Net income (loss) attributable to parent	25,350			11,266			(7,456		)	—			29,160
Preferred stock dividends	—			—			35			—			35
Net income (loss) available to common shareholders	$	25,350		$	11,266		$	(7,491	)	$	—		$	29,125

Nine Months Ended September 30, 2020	CoRe Banking		Mortgage Banking		Financial Holding Company			Intercompany Eliminations			Consolidated
(Dollars in thousands)
Interest income	$	56,693	$	6,034	$	2		$	(1,629	)	$	61,100
Interest expense	9,418		3,136		78			(2,171		)	10,461
Net interest income (loss)	47,275		2,898		(76		)	542			50,639
Provision for loan losses	16,361		4		—			—			16,365
Net interest income (loss) after provision for loan losses	30,914		2,894		(76		)	542			34,274

Total noninterest income	24,394		53,140		4,664			(6,437		)	75,761

Noninterest Expenses:
Salaries and employee benefits	19,562		21,550		8,248			—			49,360
Other expense	24,172		4,780		3,837			(5,895		)	26,894
Total noninterest expenses	43,734		26,330		12,085			(5,895		)	76,254

Income (loss) before income taxes	11,574		29,704		(7,497		)	—			33,781
Income tax expense (benefit)	2,336		7,696		(1,824		)	—			8,208
Net income (loss)	9,238		22,008		(5,673		)	—			25,573
Preferred stock dividends	—		—		345			—			345
Net income (loss) available to common shareholders	$	9,238	$	22,008	$	(6,018	)	$	—		$	25,228

Average Balances and Interest Rates (Unaudited) (Dollars in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2021								June 30, 2021								September 30, 2020
	Average Balance			Interest Income/ Expense			Yield/ Cost		Average Balance			Interest Income/ Expense			Yield/ Cost		Average Balance			Interest Income/ Expense			Yield/ Cost
Assets
Interest-bearing balances with banks	$	184,131		$	60		0.13	%	$	178,792		$	40		0.09	%	$	174,203		$	45		0.10	%
CDs with banks	11,065			52			1.86		11,803			58			1.97		12,641			61			1.91
Investment securities:
Taxable	238,807			575			0.96		254,536			625			0.98		103,497			411			1.58
Tax-exempt ²	202,380			1,528			3.00		207,830			1,640			3.17		142,301			1,344			3.75
Loans and loans held-for-sale: ¹
Commercial ³	1,416,236			15,646			4.38		1,416,669			16,058			4.55		1,160,214			14,108			4.82
Tax-exempt ²	6,678			77			4.57		6,905			78			4.53		7,752			91			4.66
Real estate	297,450			2,282			3.04		320,528			2,573			3.22		325,992			2,749			3.35
Consumer	16,133			602			14.80		6,550			122			7.47		6,613			119			7.14
Total loans	1,736,497			18,607			4.25		1,750,652			18,831			4.31		1,500,571			17,067			4.51
Total earning assets	2,372,880			20,822			3.48		2,403,613			21,194			3.54		1,933,213			18,928			3.88
Less: Allowance for loan losses	(24,978		)						(26,625		)						(18,906		)
Cash and due from banks	5,922								22,141								28,299
Other assets	200,536								193,165								205,038
Total assets	$	2,554,360							$	2,592,294							$	2,147,644

Liabilities
Deposits:
NOW	$	743,632		$	333		0.18	%	$	716,924		$	643		0.36	%	$	381,375		$	496		0.52	%
Money market checking	433,216			211			0.19		466,091			221			0.19		479,418			380			0.31
Savings	42,126			—			—		52,992			—			—		49,698			7			0.06
IRAs	7,302			21			1.14		12,358			40			1.30		12,389			44			1.41
CDs	121,482			333			1.09		156,507			332			0.85		334,828			967			1.15
Repurchase agreements and federal funds sold	10,941			3			0.11		10,833			3			0.11		10,145			4			0.16
FHLB and other borrowings	494			6			4.82		55,402			49			0.35		34,138			699			8.12
Subordinated debt	44,460			481			4.29		43,462			490			4.52		4,124			20			1.92
Total interest-bearing liabilities	1,403,653			1,388			0.39		1,514,569			1,778			0.47		1,306,115			2,617			0.79
Noninterest-bearing demand deposits	852,872								810,298								542,467
Other liabilities	36,097								28,688								68,223
Total liabilities	2,292,622								2,353,555								1,916,805

Stockholders' equity
Preferred stock	—								—								7,334
Common stock	12,704								12,487								12,066
Paid-in capital	141,246								141,782								124,003
Treasury stock	(16,741		)						(16,741		)						(2,022		)
Retained earnings	122,361								98,413								90,113
Accumulated other comprehensive income	1,207								2,194								(655		)
Total stockholders' equity attributable to parent	260,777								238,135								230,839
Noncontrolling interest	961								604								—
Total stockholders' equity	261,738								238,739								230,839
Total liabilities and stockholders' equity	$	2,554,360							$	2,592,294							$	2,147,644

Net interest spread (tax-equivalent)							3.09								3.07								3.09
Net interest income and margin (tax-equivalent) ²				$	19,434		3.25	%				$	19,416		3.24	%				$	16,311		3.35	%
Less: Tax-equivalent adjustments				$	(338	)						$	(361	)						$	(301	)
Net interest spread							3.03	%							3.01	%							3.03	%
Net interest income and margin				$	19,096		3.19	%				$	19,055		3.18	%				$	16,010		3.29	%

¹Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
² In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure following this table.
³ The Company's PPP loans totaling $147.3 million, $207.3 million and $87.9 million are included in this amount for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

	Nine Months Ended								Nine Months Ended
	September 30, 2021								September 30, 2020
	Average Balance			Interest Income/ Expense			Yield/ Cost		Average Balance			Interest Income/ Expense			Yield/ Cost
Assets
Interest-bearing balances with banks	$	207,195		$	164		0.11	%	$	77,667		$	110		0.19	%
CDs with banks	11,554			168			1.94		12,667			187			1.97
Investment securities:
Taxable	222,323			1,831			1.10		104,450			1,554			1.98
Tax-exempt ²	207,529			4,881			3.14		125,493			3,703			3.93
Loans and loans held-for-sale: ¹
Commercial ³	1,365,680			45,905			4.49		1,138,438			42,292			4.95
Tax-exempt ²	6,928			237			4.57		9,457			329			4.64
Real estate	303,701			7,509			3.31		428,989			13,402			4.16
Consumer	10,157			762			10.03		6,805			370			7.24
Total loans	1,686,466			54,413			4.31		1,583,689			56,393			4.74
Total earning assets	2,335,067			61,457			3.52		1,903,966			61,947			4.33
Less: Allowance for loan losses	(25,920		)						(14,857		)
Cash and due from banks	16,274								27,781
Other assets	201,198								178,701
Total assets	$	2,526,619							$	2,095,591

Liabilities
Deposits:
NOW	$	660,655		$	1,323		0.27	%	$	385,413		$	2,070		0.72	%
Money market checking	461,998			662			0.19		447,219			2,397			0.71
Savings	44,938			4			0.01		43,606			16			0.05
IRAs	10,764			102			1.27		13,785			169			1.63
CDs	148,807			1,091			0.98		388,190			4,188			1.44
Repurchase agreements and federal funds sold	10,677			10			0.13		9,784			19			0.26
FHLB and other borrowings	33,914			95			0.37		75,451			1,524			2.69
Subordinated debt	43,786			1,437			4.39		4,124			78			2.52
Total interest-bearing liabilities	1,415,539			4,724			0.45		1,367,572			10,461			1.02
Noninterest-bearing demand deposits	828,469								442,378
Other liabilities	36,665								63,853
Total liabilities	2,280,673								1,873,803

Stockholders' equity
Preferred stock	774								7,334
Common stock	12,524								12,031
Paid-in capital	139,980								123,342
Treasury stock	(16,741		)						(1,533		)
Retained earnings	107,094								81,476
Accumulated other comprehensive income (loss)	1,788								(862		)
Total stockholders' equity attributable to parent	245,419								221,788
Noncontrolling interest	527								—
Total stockholders' equity	245,946								221,788
Total liabilities and stockholders' equity	$	2,526,619							$	2,095,591

Net interest spread (tax-equivalent)							3.07								3.31
Net interest income and margin (tax-equivalent) ²				$	56,733		3.25	%				$	51,486		3.60	%
Less: Tax-equivalent adjustments				$	(1,077	)						$	(847	)
Net interest spread							3.01	%							3.26	%
Net interest income and margin				$	55,656		3.19	%				$	50,639		3.54	%

¹Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
² In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure following this table.
³ The Company's PPP loans totaling $147.3 million and $87.9 million are included in this amount for the nine months ended September 30, 2021 and September 30, 2020, respectively.

The following table reconciles, for the periods shown below, net interest margin on a fully tax-equivalent basis:

	Three Months Ended									Nine Months Ended
(Dollars in thousands)	September 30, 2021			June 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net interest margin - U.S. GAAP basis
Net interest income	$	19,096		$	19,055		$	16,010		$	55,656		$	50,639
Average interest-earning assets	2,372,880			2,403,613			1,933,213			2,335,067			1,903,966
Net interest margin	3.19		%	3.18		%	3.29		%	3.19		%	3.54		%

Net interest margin - non-U.S. GAAP basis
Net interest income	$	19,096		$	19,055		$	16,010		$	55,656		$	50,639
Impact of fully tax-equivalent adjustment	338			361			301			1,077			847
Net interest income on a fully tax-equivalent basis	19,434			19,416			16,311			56,733			51,486
Average interest-earning assets	$	2,372,880		$	2,403,613		$	1,933,213		$	2,335,067		$	1,903,966
Net interest margin on a fully tax-equivalent basis	3.25		%	3.24		%	3.35		%	3.25		%	3.60		%

Selected Financial Data (Unaudited) (Dollars in thousands, except per share data)

	Quarterly									Year-to-Date
	2021			2021			2020			2021			2020
	Third Quarter			Second Quarter			Third Quarter			2021			2020
Earnings and Per Share Data:
Net income	$	11,828		$	9,247		$	6,491		$	29,160		$	25,573
Net income available to common shareholders	$	11,828		$	9,247		$	6,375		$	29,125		$	25,228
Earnings per share - basic	$	1.00		$	0.79		$	0.53		$	2.49		$	2.11
Earnings per share - diluted	$	0.92		$	0.73		$	0.53		$	2.32		$	2.07
Cash dividends paid per common share	$	0.14		$	0.12		$	0.09		$	0.36		$	0.27
Book value per common share	$	22.18		$	21.12		$	19.07		$	22.18		$	19.07
Tangible book value per common share	$	21.64		$	20.54		$	18.66		$	21.64		$	18.66
Weighted-average shares outstanding - basic	11,880,348			11,639,237			11,948,989			11,684,570			11,948,857
Weighted-average shares outstanding - diluted	12,824,309			12,612,030			12,116,418			12,565,809			12,185,137

Performance Ratios:
Return on average assets ¹	1.9		%	1.4		%	1.2		%	1.5		%	1.6		%
Return on average equity ¹	18.1		%	15.5		%	11.3		%	15.8		%	15.4		%
Net interest margin ^{2 3}	3.25		%	3.24		%	3.35		%	3.25		%	3.60		%
Efficiency ratio ⁴	62.9		%	71.6		%	51.6		%	65.9		%	60.3		%
Overhead ratio ^{1 5}	4.0		%	3.6		%	3.4		%	3.6		%	4.9		%
Equity to assets	9.5		%	9.1		%	10.6		%	9.5		%	10.6		%

Asset Quality Data and Ratios:
Charge-offs	$	98		$	—		$	111		$	363		$	1,890
Recoveries	$	23		$	208		$	5		$	248		$	17
Net loan charge-offs to total loans ^{1 6}	—		%	(0.1		)%	—		%	—		%	0.2		%
Allowance for loan losses	$	25,187		$	24,882		$	25,913		$	25,187		$	25,913
Allowance for loan losses to total loans ⁷	1.4		%	1.5		%	1.8		%	1.4		%	1.8		%
Nonperforming loans	$	17,453		$	15,501		$	14,893		$	17,453		$	14,893
Nonperforming loans to total loans	1.0		%	0.9		%	1.0		%	1.0		%	1.0		%

ICM Production Data:
Mortgage pipeline	$	1,150,116		$	1,238,935		$	1,538,554		$	1,150,116		$	1,538,554
Loans originated	$	1,456,588		$	1,677,431		$	2,291,065		$	5,222,394		$	2,291,065
Loans closed	$	1,233,605		$	1,490,965		$	1,619,379		$	4,630,597		$	1,619,379
Loans sold	$	1,098,475		$	1,493,198		$	1,215,512		$	4,368,875		$	1,215,512

¹ annualized for the quarterly periods presented ² net interest income as a percentage of average interest-earning assets ³ presented on a fully tax-equivalent basis ⁴ noninterest expense as a percentage of net interest income and noninterest income, a non-U.S. GAAP measure ⁵ noninterest expense as a percentage of average assets, a non-U.S. GAAP measure ⁶ charge-offs less recoveries ⁷ excludes loans held for sale

Non-GAAP Reconciliation: Tangible Book Value per Common Share (Unaudited) (Dollars in thousands, except per share data)

	September 30, 2021			June 30, 2021			September 30, 2020
Goodwill	$	3,988		$	4,119		$	2,350
Intangibles	2,518			2,692			2,554
Total intangibles	6,506			6,811			4,904

Total equity attributable to parent	265,565			248,611			234,116
Less: Preferred equity	—			—			(7,334		)
Less: Total intangibles	(6,506		)	(6,811		)	(4,904		)
Tangible common equity	259,059			241,800			221,878

Tangible common equity	259,059			241,800			221,878
Common shares outstanding (000s)	11,972			11,774			11,889
Tangible book value per common share	$	21.64		$	20.54		$	18.66

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