Second Quarter 2019

Financial Supplement

TABLE OF CONTENTS

	Page

Financial Summary and Key Metrics	4

Consolidated Statements of Income	5

Consolidated Balance Sheets	7

Branch Acquisition Opening Balance Sheet (Preliminary)	8

Average Balance, Average Yield Earned and Average Rate Paid	9

Loans and Deposits by Market	12

Segment Data	13

Loan Portfolio and Asset Quality	14

Preliminary Capital Ratios	16

Investment Portfolio	17

Non-GAAP Reconciliation	18

Use of non-GAAP Financial Measures

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 include, without limitation, adjusted net income, adjusted diluted earnings per share, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), adjusted mortgage contribution, adjusted return on average assets and equity, pro forma return on average assets and equity, adjusted pro forma return on average assets and equity and core total revenue. 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 measures. The corresponding Earnings Release and Earnings Release Presentation also presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on tangible common equity, return on average tangible common equity, pro forma return on average tangible common equity, adjusted return on average tangible common equity and pro forma adjusted return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles.

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 demonstrating 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 other intangibles, and the other items excluded each 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. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. The Company includes tables under the Non-GAAP reconciliation section of this document to provide a reconciliation of these measures to the most directly comparable GAAP financial measures.

Financial Summary and Key Metrics

(Unaudited)

(In Thousands, Except Share Data and %)

	2019						2018
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Statement of Income Data
Total interest income	$	71,719		$	65,933		$	63,068		$	62,612		$	59,043
Total interest expense		14,696			12,917			11,701			9,857			7,526
Net interest income		57,023			53,016			51,367			52,755			51,517
Provision for loan losses		881			1,391			2,200			1,818			1,063
Total noninterest income		32,979			29,039			27,249			34,355			35,763
Total noninterest expense		64,119			55,101			53,736			57,213			56,358
Net income before income taxes		25,002			25,563			22,680			28,079			29,859
Income tax expense		6,314			5,975			5,640			6,702			7,794
Net income	$	18,688		$	19,588		$	17,040		$	21,377		$	22,065
Net interest income (tax—equivalent basis)	$	57,488		$	53,461		$	51,799		$	53,161		$	51,909
Net income, adjusted*	$	22,098		$	20,826		$	17,336		$	21,377		$	22,736
Per Common Share
Diluted net income	$	0.59		$	0.62		$	0.54		$	0.68		$	0.70
Diluted net income, adjusted*		0.70			0.66			0.55			0.68			0.72
Book value		23.29			22.51			21.87			21.12			20.56
Tangible book value*		17.18			17.73			17.02			16.25			15.66
Weighted average number of shares outstanding- fully diluted		31,378,018			31,349,198			31,344,949			31,339,628			31,294,044
Period-end number of shares		30,865,636			30,852,665			30,724,532			30,715,792			30,683,353
Selected Balance Sheet Data
Cash and cash equivalents	$	164,336		$	195,414		$	125,356		$	181,630		$	104,417
Loans held for investment (HFI)		4,289,516			3,786,791			3,667,511			3,538,531			3,415,575
Allowance for loan losses		(30,138	)		(29,814	)		(28,932	)		(27,608	)		(26,347	)
Loans held for sale		294,699			248,054			278,815			323,486			374,916
Investment securities, at fair value		678,457			670,835			658,805			609,568			611,435
Other real estate owned, net		15,521			12,828			12,643			13,587			14,639
Total assets		5,940,402			5,335,156			5,136,764			5,058,167			4,923,249
Customer deposits		4,812,962			4,242,349			4,068,610			4,017,391			3,844,009
Brokered and internet time deposits		29,864			60,842			103,107			112,082			65,854
Total deposits		4,842,826			4,303,191			4,171,717			4,129,473			3,909,863
Borrowings		257,299			229,178			227,776			210,968			342,893
Total shareholders' equity		718,759			694,577			671,857			648,731			630,959
Selected Ratios
Return on average:
Assets		1.30	%		1.54	%		1.35	%		1.72	%		1.86	%
Shareholders' equity		10.6	%		11.6	%		10.3	%		13.3	%		14.4	%
Tangible common equity*		14.4	%		14.8	%		13.3	%		17.4	%		19.0	%
Average shareholders' equity to average assets		12.3	%		13.2	%		13.2	%		12.9	%		12.9	%
Net interest margin (NIM) (tax-equivalent basis)		4.39	%		4.61	%		4.50	%		4.71	%		4.81	%
Efficiency ratio (GAAP)		71.2	%		67.2	%		68.4	%		65.7	%		64.6	%
Core efficiency ratio (tax-equivalent basis)*		65.9	%		64.9	%		67.5	%		65.7	%		63.4	%
Loans HFI to deposit ratio		88.6	%		88.0	%		87.9	%		85.7	%		87.4	%
Total loans to deposit ratio		94.7	%		93.8	%		94.6	%		93.5	%		96.9	%
Yield on interest-earning assets		5.52	%		5.73	%		5.52	%		5.58	%		5.51	%
Cost of interest-bearing liabilities		1.54	%		1.52	%		1.40	%		1.20	%		0.96	%
Cost of total deposits		1.14	%		1.14	%		1.03	%		0.80	%		0.62	%
Credit Quality Ratios
Allowance for loan losses as a percentage of loans HFI		0.70	%		0.79	%		0.79	%		0.78	%		0.77	%
Net charge-off's (recoveries) as a percentage of average loans HFI		0.05	%		0.06	%		0.06	%		0.06	%		(0.11	)%
Nonperforming loans HFI as a percentage of total loans HFI		0.43	%		0.41	%		0.46	%		0.30	%		0.26	%
Nonperforming assets as a percentage of total assets		0.59	%		0.57	%		0.61	%		0.51	%		0.52	%
Preliminary capital ratios (Consolidated)
Shareholders' equity to assets		12.1	%		13.0	%		13.1	%		12.8	%		12.8	%
Tangible common equity to tangible assets*		9.2	%		10.5	%		10.5	%		10.2	%		10.1	%
Tier 1 capital (to average assets)		10.0	%		11.5	%		11.4	%		11.3	%		10.9	%
Tier 1 capital (to risk-weighted assets)		11.0	%		12.7	%		12.4	%		12.2	%		11.3	%
Total capital (to risk-weighted assets)		11.6	%		13.4	%		13.0	%		12.8	%		11.9	%
Common Equity Tier 1 (to risk-weighted assets) (CET1)		10.4	%		12.0	%		11.7	%		11.5	%		10.6	%

*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of Non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these Non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.

Consolidated Statements of Income

(Unaudited)

(In Thousands, Except Share Data and %)

																Q2 2019		Q2 2019
																vs.		vs.
	2019						2018									Q1 2019		Q2 2018
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			Percent variance		Percent variance
Interest income:
Interest and fees on loans	$	66,276		$	60,448		$	57,875		$	57,904		$	54,529		9.6	%	21.5	%
Interest on securities
Taxable		3,548			3,569			3,260			3,151			3,134		(0.6	)%	13.2	%
Tax-exempt		1,160			1,144			1,110			1,031			981		1.4	%	18.2	%
Other		735			772			823			526			399		(4.8	)%	84.2	%
Total interest income		71,719			65,933			63,068			62,612			59,043		8.8	%	21.5	%
Interest expense:
Deposits		13,488			11,855			10,703			7,864			5,898		13.8	%	128.7	%
Borrowings		1,208			1,062			998			1,993			1,628		13.7	%	(25.8	)%
Total interest expense		14,696			12,917			11,701			9,857			7,526		13.8	%	95.3	%
Net interest income		57,023			53,016			51,367			52,755			51,517		7.6	%	10.7	%
Provision for loan losses		881			1,391			2,200			1,818			1,063		(36.7	)%	(17.1	)%
Net interest income after provision for loan losses		56,142			51,625			49,167			50,937			50,454		8.7	%	11.3	%
Noninterest income:
Mortgage banking income		24,526			21,021			18,997			26,649			28,544		16.7	%	(14.1	)%
Service charges on deposit accounts		2,327			2,079			2,286			2,208			2,049		11.9	%	13.6	%
ATM and interchange fees		3,002			2,656			2,660			2,411			2,581		13.0	%	16.3	%
Investment services and trust income		1,287			1,295			1,384			1,411			1,180		(0.6	)%	9.1	%
Gain (loss) from securities, net		52			43			—			(27	)		(42	)	20.9	%	(223.8	)%
Gain (loss) on sales or write-downs of other real estate owned		277			(39	)		(56	)		120			23		(810.3	)%	1,104.3	%
(Loss) gain from other assets		(183	)		191			89			326			(155	)	(195.8	)%	18.1	%
Other income		1,691			1,793			1,889			1,257			1,583		(5.7	)%	6.8	%
Total noninterest income		32,979			29,039			27,249			34,355			35,763		13.6	%	(7.8	)%
Total revenue		90,002			82,055			78,616			87,110			87,280		9.7	%	3.1	%
Noninterest expenses:
Salaries, commissions and employee benefits		37,918			33,697			33,286			35,213			34,366		12.5	%	10.3	%
Occupancy and equipment expense		4,319			3,730			3,493			3,514			3,545		15.8	%	21.8	%
Legal and professional fees		1,694			1,725			1,978			1,917			1,965		(1.8	)%	(13.8	)%
Data processing		2,643			2,384			2,365			2,562			2,138		10.9	%	23.6	%
Merger expense		3,783			621			401			—			—		509.2	%	100.0	%
Amortization of core deposits and other intangibles		1,255			729			753			777			802		72.2	%	56.5	%
Regulatory fees and deposit insurance assessments		634			592			684			738			730		7.1	%	(13.2	)%
Software license and maintenance fees		622			472			489			622			603		31.8	%	3.2	%
Advertising		2,434			2,737			2,639			3,810			3,408		(11.1	)%	(28.6	)%
Mortgage restructuring expense		829			1,054			—			—			—		(21.3	)%	100.0	%
Other expense		7,988			7,360			7,648			8,060			8,801		8.5	%	(9.2	)%
Total noninterest expense		64,119			55,101			53,736			57,213			56,358		16.4	%	13.8	%
Income before income taxes		25,002			25,563			22,680			28,079			29,859		(2.2	)%	(16.3	)%
Income tax expense		6,314			5,975			5,640			6,702			7,794		5.7	%	(19.0	)%
Net income	$	18,688		$	19,588		$	17,040		$	21,377		$	22,065		(4.6	)%	(15.3	)%
Earnings available to common shareholders	$	18,588		$	19,483		$	16,949		$	21,263		$	21,948
Weighted average common shares outstanding:
Basic		30,859,596			30,786,684			30,717,008			30,692,668			30,678,732
Fully diluted		31,378,018			31,349,198			31,344,949			31,339,628			31,294,044
Earnings per common share:
Basic	$	0.60			0.63		$	0.55		$	0.69		$	0.72
Fully diluted		0.59			0.62			0.54			0.68			0.70

Consolidated Statements of Income

(Unaudited)

(In Thousands, Except Share Data and %)

						YTD 2019
	For the six months ended					vs.
	June 30,					YTD 2018
	2019		2018			Percent variance
Interest income:
Interest and fees on loans	$	126,724	$	105,222			20.4	%
Interest on securities
Taxable		7,117		5,986			18.9	%
Tax-exempt		2,304		1,906			20.9	%
Other		1,507		777			94	%
Total interest income		137,652		113,891			20.9	%
Interest expense:
Deposits		25,343		10,969			131	%
Borrowings		2,270		2,976			(23.7	)%
Total interest expense		27,613		13,945			98	%
Net interest income		110,039		99,946			10.1	%
Provision for loan losses		2,272		1,380			64.6	%
Net interest income after provision for loan losses		107,767		98,566			9.3	%
Noninterest income:
Mortgage banking income		45,547		55,015			(17.2	)%
Service charges on deposit accounts		4,406		4,008			9.9	%
ATM and interchange fees		5,658		4,942			14.5	%
Investment services and trust income		2,582		2,386			8.2	%
Gain (loss) from securities, net		95		(89	)		206.7	%
Gain (loss) on sales or write-downs of other real estate owned		238		(163	)		246	%
Gain (loss) on other assets		8		(87	)		109.2	%
Other income		3,484		3,026			15.1	%
Total noninterest income		62,018		69,038			(10.2	)%
Total revenue		172,057		168,984			1.8	%
Noninterest expenses:
Salaries, commissions and employee benefits		71,615		68,393			4.7	%
Occupancy and equipment expense		8,049		6,969			15.5	%
Legal and professional fees		3,419		4,008			(14.7	)%
Data processing		5,027		4,173			20.5	%
Merger expense		4,404		1,193			269.2	%
Amortization of core deposit and other intangibles		1,984		1,655			19.9	%
Regulatory fees and deposit insurance assessments		1,226		1,292			(5.1	)%
Software license and maintenance fees		1,094		1,260			(13.2	)%
Advertising		5,171		6,690			(22.7	)%
Mortgage restructuring expense		1,883		—			100	%
Other expense		15,348		16,876			(9.1	)%
Total noninterest expense		119,220		112,509			6	%
Net income before income taxes		50,565		55,095			(8.2	)%
Income tax expense		12,289		13,276			(7.4	)%
Net income	$	38,276	$	41,819			(8.5	)%
Earnings available to common shareholders	$	38,071	$	41,596
Weighted average common shares outstanding:
Basic		30,823,341		30,646,189
Fully diluted		31,348,966		31,275,846
Earnings per common share:
Basic	$	1.24	$	1.36
Fully diluted		1.21		1.33

Consolidated Balance Sheets

(Unaudited)

(In Thousands, Except %)

														Annualized
														Q2 2019			Q2 2019
														vs.			vs.
	2019				2018									Q1 2019			Q2 2018
	Second Quarter		First Quarter		Fourth Quarter			Third Quarter			Second Quarter			Percent variance			Percent variance
ASSETS
Cash and due from banks	$	64,458	$	60,253	$	38,381		$	81,366		$	67,863			28	%		(5.0	)%
Federal funds sold		9,781		6,600		31,364			801			19,859			193.3	%		(50.7	)%
Interest bearing deposits in financial institutions		90,097		128,561		55,611			99,463			16,695			(120.0	)%		439.7	%
Cash and cash equivalents		164,336		195,414		125,356			181,630			104,417			(63.8	)%		57.4	%
Investments:
Available-for-sale debt securities, at fair value		675,215		667,654		655,698			606,501			608,360			4.5	%		11	%
Equity securities, at fair value		3,242		3,181		3,107			3,067			3,075			7.7	%		5.4	%
Federal Home Loan Bank stock, at cost		15,976		13,432		13,432			13,432			12,641			76	%		26.4	%
Loans held for sale, at fair value		294,699		248,054		278,815			323,486			374,916			75.4	%		(21.4	)%
Loans		4,289,516		3,786,791		3,667,511			3,538,531			3,415,575			53.2	%		25.6	%
Less: allowance for loan losses		30,138		29,814		28,932			27,608			26,347			4.4	%		14.4	%
Net loans		4,259,378		3,756,977		3,638,579			3,510,923			3,389,228			53.6	%		25.7	%
Premises and equipment, net		92,407		87,013		86,882			86,445			85,936			24.9	%		7.5	%
Other real estate owned, net		15,521		12,828		12,643			13,587			14,639			84.2	%		6	%
Operating lease right-of-use assets		35,872		32,694		—			—			—			39	%		100	%
Interest receivable		17,952		16,611		14,503			14,943			12,729			32.4	%		41	%
Mortgage servicing rights, at fair value		66,380		64,031		88,829			79,890			109,449			14.7	%		(39.4	)%
Goodwill		168,486		137,190		137,190			137,190			137,190			91.5	%		22.8	%
Core deposit and other intangibles, net		19,945		10,439		11,628			12,403			13,203			365.3	%		51.1	%
Other assets		110,993		89,638		70,102			74,670			57,466			95.6	%		93.1	%
Total assets	$	5,940,402	$	5,335,156	$	5,136,764		$	5,058,167		$	4,923,249			45.5	%		20.7	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest-bearing	$	1,111,921	$	964,745	$	949,135		$	962,948		$	970,851			61.2	%		14.5	%
Interest-bearing checking		984,847		937,323		863,706			876,991			921,246			20.3	%		6.9	%
Money market and savings		1,468,867		1,257,863		1,239,131			1,236,851			1,287,657			67.3	%		14.1	%
Customer time deposits		1,247,327		1,082,418		1,016,638			940,601			664,255			61.1	%		87.8	%
Brokered and internet time deposits		29,864		60,842		103,107			112,082			65,854			(204.2	)%		(54.7	)%
Total deposits		4,842,826		4,303,191		4,171,717			4,129,473			3,909,863			50.3	%		23.9	%
Borrowings		257,299		229,178		227,776			210,968			342,893			49.2	%		(25.0	)%
Operating lease liabilities		38,722		35,093		—			—			—			41.5	%		100	%
Accrued expenses and other liabilities		82,796		73,117		65,414			68,995			39,534			53.1	%		109.4	%
Total liabilities		5,221,643		4,640,579		4,464,907			4,409,436			4,292,290			50.2	%		21.7	%
Shareholders' equity:
Common stock, $1 par value		30,866		30,853		30,725			30,716			30,683			0.2	%		0.6	%
Additional paid-in capital		425,644		423,647		424,146			422,302			420,382			1.9	%		1.3	%
Retained earnings		253,080		236,947		221,213			206,718			187,250			27.3	%		35.2	%
Accumulated other comprehensive income (loss), net		9,169		3,130		(4,227	)		(11,005	)		(7,356	)		773.9	%		224.6	%
Total shareholders' equity		718,759		694,577		671,857			648,731			630,959			14	%		13.9	%
Total liabilities and shareholders' equity	$	5,940,402	$	5,335,156	$	5,136,764		$	5,058,167		$	4,923,249			45.5	%		20.7	%

Branch Acquisition Opening Balance Sheet (Preliminary)

As of April 5, 2019

(Unaudited)

(In Thousands)


	As Recorded by FB Financial Corporation (Preliminary)^(a)
Assets
Cash and cash equivalents, net of deposit premium paid	$	171,032
Loans, net of credit and liquidity discounts		374,966
Premises and equipment		9,650
Operating lease right-of-use assets		4,133
Core deposit intangible		10,760
Goodwill		31,396
Accrued interest and other assets		1,271
Total assets	$	603,208

Liabilities
Deposits	$	588,877
Customer repurchase agreements		9,572
Operating lease liabilities		4,133
Accrued expenses and other liabilities		626
Total liabilities	$	603,208


Loan composition:
Commercial and industrial	$	64,571
Construction		12,511
Residential real estate:
1-to-4 family mortgage		92,720
Residential line of credit		30,173
Multi-family mortgage		4,953
Commercial real estate:
Owner occupied		80,762
Non-owner occupied		75,771
Consumer and Other		13,505
Total loans	$	374,966

Deposit composition:
Noninterest-bearing	$	118,405
Interest-bearing checking		112,225
Money market and savings		211,135
Customer time deposits		147,112
Total deposits	$	588,877

(a) The above estimated fair values of assets acquired and liabilities assumed are preliminary and are subject to change during the measurement period as allowed under ASC 805 - Business Combinations.

Average Balance, Average Yield Earned and Average Rate Paid

For the Quarters Ended

(Unaudited)

(In Thousands, Except %)

				Three Months Ended								Three Months Ended
				June 30, 2019								March 31, 2019*
				Interest		Average							Interest		Average
	Average			income/		yield/			Average				income/		yield/
	balances			expense		rate			balances				expense*		rate
Interest-earning assets:
Loans HFI^(a)	$	4,177,701		$	63,262		6.07	%	$	3,720,739			$	58,137		6.34	%
Loans held for sale		281,252			3,070		4.38	%		216,227				2,353		4.41	%
Securities:
Taxable		532,500			3,548		2.67	%		518,504				3,569		2.79	%
Tax-exempt^(a)		146,282			1,569		4.3	%		138,847				1,547		4.52	%
Total securities^(a)		678,782			5,117		3.02	%		657,351				5,116		3.16	%
Federal funds sold		12,219			88		2.89	%		18,392				123		2.71	%
Interest-bearing deposits with other financial institutions		81,540			465		2.29	%		75,291				446		2.4	%
FHLB stock		15,165			182		4.81	%		13,432				203		6.13	%
Total interest earning assets^(a)		5,246,659			72,184		5.52	%		4,701,432				66,378		5.73	%
Noninterest Earning Assets:
Cash and due from banks		54,659								50,218
Allowance for loan losses		(30,092	)							(29,537	)
Other assets		500,145								452,805	)
Total noninterest earning assets		524,712								473,486
Total assets	$	5,771,371							$	5,174,918
Interest-bearing liabilities:
Interest bearing deposits:
Interest bearing checking	$	968,081		$	2,295		0.95	%	$	878,167			$	2,054		0.95	%
Money market		1,221,450			4,508		1.48	%		1,073,170				3,956		1.49	%
Savings deposits		203,602			76		0.15	%		176,305				68		0.16	%
Customer time deposits		1,185,451			6,299		2.13	%		1,053,958				5,309		2.04	%
Brokered and internet time deposits		56,242			310		2.21	%		93,434				468		2.03	%
Time deposits		1,241,693			6,609		2.13	%		1,147,392				5,777		2.04	%
Total interest bearing deposits		3,634,826			13,488		1.49	%		3,275,034				11,855		1.47	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased		31,905			117		1.47	%		15,319				35		0.93	%
Federal Home Loan Bank advances		131,726			664		2.02	%		117,875				634		2.18	%
Subordinated debt		30,930			427		5.54	%		30,930				393		5.15	%
Total other interest-bearing liabilities		194,561			1,208		2.49	%		164,124				1,062		2.62	%
Total interest-bearing liabilities		3,829,387			14,696		1.54	%		3,439,158				12,917		1.52	%
Noninterest bearing liabilities:
Demand deposits		1,128,311								955,156
Other liabilities		105,116								96,059
Total noninterest-bearing liabilities		1,233,427								1,051,215
Total liabilities		5,062,814								4,490,373
Shareholders' equity		708,557								684,545
Total liabilities and shareholders' equity	$	5,771,371							$	5,174,918
Net interest income^(a)				$	57,488								$	53,461
Interest rate spread^(a)							3.98	%								4.21	%
Net interest margin^(a)							4.39	%								4.61	%
Cost of total deposits							1.14	%								1.14	%
Average interest-earning assets to average interest-bearing liabilities							137	%								136.7	%
Tax-equivalent adjustment				$	465								$	445
Loan HFI yield components:
Contractual interest rate^(a)				$	58,028		5.57	%					$	52,177		5.69	%
Origination and other loan fee income					2,981		0.29	%						3,840		0.42	%
Accretion on purchased loans					2,097		0.2	%						1,831		0.2	%
Nonaccrual interest					156		0.01	%						89		0.01	%
Syndication fee income					—		—	%						200		0.02	%
Total loan yield				$	63,262		6.07	%					$	58,137		6.34	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.060%.

* Reflects certain reclassifications for comparability to current quarter for interest income and yields on loans held for investment and loans held for sale as well as interest expense and rates on customer time deposits and brokered and internet time deposits. Impact in periods prior to January 1, 2019 were not material.

Average Balance, Average Yield Earned and Average Rate Paid

For the Quarters Ended

(Unaudited)

(In Thousands, Except %)

				Three Months Ended							Three Months Ended							Three Months Ended
				December 31, 2018							September 30, 2018							June 30, 2018
				Interest		Average					Interest		Average					Interest		Average
	Average			income/		yield/		Average			income/		yield/		Average			income/		yield/
	balances			expense		rate		balances			expense		rate		balances			expense		rate
Interest-earning assets:
Loans HFI^(a)	$	3,559,587		$	54,858	6.11	%	$	3,457,526		$	53,928	6.19	%	$	3,289,045		$	50,193	6.12	%
Loans held for sale		260,763			3,058	4.65	%		353,477			4,019	4.51	%		362,571			4,382	4.85	%
Securities:
Taxable		487,843			3,260	2.65	%		482,733			3,151	2.59	%		484,035			3,134	2.6	%
Tax-exempt^(a)		130,465			1,501	4.56	%		121,680			1,394	4.55	%		115,334			1,327	4.61	%
Total securities^(a)		618,308			4,761	3.05	%		604,413			4,545	2.98	%		599,369			4,461	2.99	%
Federal funds sold		27,835			160	2.28	%		18,014			97	2.14	%		19,645			82	1.67	%
Interest-bearing deposits with other financial institutions		86,421			464	2.13	%		33,184			214	2.56	%		42,750			155	1.45	%
FHLB stock		13,432			199	5.88	%		13,179			215	6.47	%		12,530			162	5.19	%
Total interest earning assets^(a)		4,566,346			63,500	5.52	%		4,479,793			63,018	5.58	%		4,325,910			59,435	5.51	%
Noninterest Earning Assets:
Cash and due from banks		53,067							52,980							48,184
Allowance for loan losses		(27,369	)						(26,487	)						(24,771	)
Other assets		413,114							425,911							414,668
Total noninterest earning assets		438,812							452,404							438,081
Total assets	$	5,005,158						$	4,932,197						$	4,763,991
Interest-bearing liabilities:
Interest bearing deposits:
Interest bearing checking	$	828,507		$	1,870	0.9	%	$	870,964		$	1,690	0.77	%	$	935,351		$	1,571	0.67	%
Money market		1,058,172			3,568	1.34	%		1,067,754			3,126	1.16	%		1,005,081			2,311	0.92	%
Savings deposits		174,199			67	0.15	%		177,698			68	0.15	%		181,461			69	0.15	%
Customer time deposits		983,204			4,649	1.88	%		745,616			2,699	1.44	%		628,709			1,638	1.04	%
Brokered and internet time deposits		107,129			549	2.03	%		61,478			281	1.81	%		75,699			309	1.64	%
Time deposits		1,090,333			5,198	1.89	%		807,094			2,980	1.46	%		704,408			1,947	1.11	%
Total interest bearing deposits		3,151,211			10,703	1.35	%		2,923,510			7,864	1.07	%		2,826,301			5,898	0.84	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased		18,378			29	0.63	%		24,484			51	0.83	%		20,002			45	0.9	%
Federal Home Loan Bank advances		106,468			554	2.06	%		293,020			1,524	2.06	%		253,131			1,171	1.86	%
Subordinated debt		30,930			415	5.32	%		30,930			418	5.36	%		30,930			412	5.34	%
Total other interest-bearing liabilities		155,776			998	2.54	%		348,434			1,993	2.27	%		304,063			1,628	2.15	%
Total interest-bearing liabilities		3,306,987			11,701	1.4	%		3,271,944			9,857	1.2	%		3,130,364			7,526	0.96	%
Noninterest bearing liabilities:
Demand deposits		987,127							980,296							975,760
Other liabilities		51,994							41,569							41,917
Total noninterest-bearing liabilities		1,039,121							1,021,865							1,017,677
Total liabilities		4,346,108							4,293,809							4,148,041
Shareholders' equity		659,050							638,388							615,950
Total liabilities and shareholders' equity	$	5,005,158						$	4,932,197						$	4,763,991
Net interest income^(a)				$	51,799						$	53,161						$	51,909
Interest rate spread^(a)						4.11	%						4.39	%						4.55	%
Net interest margin^(a)						4.5	%						4.71	%						4.81	%
Cost of total deposits						1.03	%						0.8	%						0.62	%
Average interest-earning assets to average interest-bearing liabilities						138.1	%						136.9	%						138.2	%
Tax-equivalent adjustment				$	432						$	406						$	392
Loan HFI yield components:
Contractual interest rate^(a)				$	49,873	5.56	%				$	47,650	5.47	%				$	44,057	5.37	%
Origination and other loan fee income					2,998	0.33	%					3,486	0.4	%					3,742	0.46	%
Accretion on purchased loans					1,863	0.21	%					2,130	0.25	%					1,928	0.23	%
Nonaccrual interest					96	0.01	%					630	0.07	%					250	0.03	%
Syndication fee income					28	—	%					32	—	%					216	0.03	%
Total loan yield				$	54,858	6.11	%				$	53,928	6.19	%				$	50,193	6.12	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.060%.

Average Balance, Average Yield Earned and Average Rate Paid

For the Periods Ended

(Unaudited)

(In Thousands, Except %)

				Six months ended								Six months ended
				June 30, 2019								June 30, 2018
				Interest		Average						Interest		Average
	Average			income/		yield/			Average			income/		yield/
	balances			expense		rate			balances			expense		rate
Interest-earning assets:
Loans HFI^(a)	$	3,950,483		$	121,399	$	6.2	%	$	3,241,657		$	96,757		6.02	%
Loans held for sale		248,919			5,423		4.39	%		398,373			8,555		4.33	%
Securities:
Taxable		525,541			7,117		2.73	%		470,660			5,986		2.56	%
Tax-exempt^(a)		142,627			3,116		4.41	%		112,286			2,578		4.63	%
Total securities^(a)		668,168			10,233		3.09	%		582,946			8,564		2.96	%
Federal funds sold		15,289			211		2.78	%		19,983			155		1.56	%
Interest-bearing deposits with other financial institutions		78,433			911		2.34	%		39,126			320		1.65	%
FHLB stock		14,303			385		5.43	%		12,170			302		5	%
Total interest earning assets^(a)		4,975,595			138,562		5.62	%		4,294,255			114,653		5.38	%
Noninterest Earning Assets:
Cash and due from banks		52,451								45,736
Allowance for loan losses		(29,816	)							(24,544	)
Other assets		476,265								404,485
Total noninterest earning assets		498,900								425,677
Total assets	$	5,474,495							$	4,719,932
Interest-bearing liabilities:
Interest bearing deposits:
Interest bearing checking	$	923,372		$	4,349	$	0.95	%	$	939,506		$	2,928		0.63	%
Money market		1,147,720			8,464		1.49	%		990,537			4,201		0.86	%
Savings deposits		190,029			144		0.15	%		180,697			137		0.15	%
Customer time deposits		1,120,897			11,608		2.09	%		623,276			3,061		0.99	%
Brokered and internet time deposits		73,907			778		2.12	%		79,886			642		1.62	%
Time deposits		1,194,804			12,386		2.09	%		703,162			3,703		1.06	%
Total interest bearing deposits		3,455,925			25,343		1.48	%		2,813,902			10,969		0.79	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased		23,658			152		1.3	%		17,595			70		0.8	%
Federal Home Loan Bank advances		124,839			1,298		2.1	%		232,547			2,088		1.81	%
Subordinated debt		30,930			820		5.35	%		30,930			818		5.33	%
Total other interest-bearing liabilities		179,427			2,270		2.55	%		281,072			2,976		2.14	%
Total Interest-bearing liabilities		3,635,352			27,613		1.53	%		3,094,974			13,945		0.91	%
Noninterest bearing liabilities:
Demand deposits		1,042,211								952,140
Other liabilities		100,311								65,110
Total noninterest-bearing liabilities		1,142,522								1,017,250
Total liabilities		4,777,874								4,112,224
Shareholders' equity		696,621								607,708
Total liabilities and shareholders' equity	$	5,474,495							$	4,719,932
Net interest income^(a)				$	110,949				$			$	100,708
Interest rate spread^(a)							4.09	%							4.47	%
Net interest margin^(a)							4.5	%							4.73	%
Cost of total deposits							1.14	%							0.59	%
Average interest-earning assets to average interest-bearing liabilities							136.9	%							138.7	%
Tax equivalent adjustment				$	910				$			$	762
Loan HFI yield components:
Contractual interest rate^(a)				$	110,205	$	5.63	%				$	85,593		5.33	%
Origination and other loan fee income					6,821		0.35	%					6,609		0.41	%
Accretion on purchased loans					3,928		0.2	%					3,615		0.22	%
Nonaccrual interest					245		0.01	%					649		0.04	%
Syndication fee income					200		0.01	%					291		0.02	%
Total loan yield				$	121,399	$	6.2	%				$	96,757		6.02	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.060% .

Loans and Deposits by Market

For the Quarters Ended
(Unaudited)

(In Thousands)

	2019				2018
	Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Loans by market
Metropolitan	$	2,970,794	$	2,516,582	$	2,413,674	$	2,335,771	$	2,210,419
Community		803,306		784,671		788,619		765,231		771,358
Specialty lending and other		515,416		485,538		465,218		437,529		433,798
Total	$	4,289,516	$	3,786,791	$	3,667,511	$	3,538,531	$	3,415,575
Deposits by market
Metropolitan	$	2,794,977	$	2,350,421	$	2,283,983	$	2,228,902		2,112,941
Community		1,615,019		1,482,877		1,451,494		1,427,310		1,392,649
Mortgage and other^(a)		432,830		469,893		436,240		473,261		404,273
Total	$	4,842,826	$	4,303,191	$	4,171,717	$	4,129,473	$	3,909,863

(a) Includes deposits related to escrow balances from mortgage servicing portfolio and wholesale/other deposits.

Segment Data

For the Quarters Ended

(Unaudited)

(In Thousands, Except %)

	2019						2018
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Banking segment
Net interest income	$	56,979		$	52,993		$	51,344		$	52,733		$	51,669
Provision for loan losses		881			1,391			2,200			1,818			1,063
Mortgage banking income retail footprint		5,451			4,386			5,041			7,417			6,894
Other noninterest income		8,453			8,018			8,252			7,706			7,219
Other noninterest mortgage banking expenses		4,172			2,831			4,542			6,383			5,649
Merger expense		3,783			621			401			—			—
Other noninterest expense		37,500			33,109			32,531			32,009			31,127
Pre-tax income after allocations	$	24,547		$	27,445		$	24,963		$	27,646		$	27,943
Total assets	$	5,552,893		$	4,987,744		$	4,752,111		$	4,637,097		$	4,443,469
Intracompany funding income included in net interest income		3,290			2,558			3,035			3,997			4,517
Core efficiency ratio*		58.5	%		54.7	%		57	%		56.6	%		54.4	%
Mortgage segment
Net interest income	$	44		$	23		$	23		$	22		$	(152	)
Noninterest income		19,075			16,635			13,956			19,232			21,650
Mortgage restructuring expense		829			1,054			—			—			—
Noninterest expense		17,835			17,486			16,262			18,821			19,582
Direct (loss) contribution	$	455		$	(1,882	)	$	(2,283	)	$	433		$	1,916
Total assets	$	387,509		$	347,412		$	384,653		$	421,070		$	479,780
Intracompany funding expense included in net interest income		3,290			2,558			3,035			3,397			4,517
Core efficiency ratio*		93.3	%		N/A			N/A			97.8	%		91.1	%
Interest rate lock commitments volume during the period
Consumer direct	$	805,970		$	521,603		$	463,669		$	715,739		$	785,965
Third party origination (TPO)		156,844			170,529			168,139			206,651			239,995
Retail		407,007			291,800			242,059			319,073			359,284
Correspondent		450,529			380,854			437,482			463,473			590,743
Total	$	1,820,350		$	1,364,786		$	1,311,349		$	1,704,936		$	1,975,987
Interest rate lock commitments pipeline (period end)
Consumer direct	$	397,150		$	235,505		$	147,297		$	224,648		$	291,874
Third party origination (TPO)		—			73,218			53,080			72,890			92,526
Retail		135,655			110,480			70,389			94,693			117,912
Correspondent		75,925			73,304			47,940			60,589			95,256
Total	$	608,730		$	492,507		$	318,706		$	452,820		$	597,568
Mortgage sales
Consumer direct	$	428,886		$	287,720		$	421,897		$	577,070		$	483,434
Third party origination (TPO)		129,511			118,563			145,385			178,238			205,050
Retail		81,849			59,084			63,261			85,561			79,497
Retail footprint		205,698			146,312			168,554			227,985			210,958
Reverse		704			4,111			7,262			11,154			12,252
Correspondent		412,014			350,435			424,717			454,020			715,733
Total	$	1,258,662		$	966,225		$	1,231,076		$	1,534,028		$	1,706,924
Gains and fees from origination and sale of mortgage loans held for sale	$	20,976		$	15,907		$	21,483		$	26,094		$	27,017
Net change in fair value of loans held for sale, derivatives, and other		3,298			2,244			(4,623	)		(2,320	)		(2,299	)
Mortgage servicing income		4,052			4,751			4,618			5,576			5,604
Change in fair value of mortgage servicing rights, net of hedging		(3,800	)		-1,881			(2,481	)		(2,701	)		(1,778	)
Total mortgage banking income	$	24,526		$	21,021		$	18,997		$	26,649		$	28,544
Mortgage sale margin^(a)		1.67	%		1.65	%		1.75	%		1.7	%		1.58	%

*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of Non-GAAP financial measures" and the corresponding financial tables below for a reconciliation and discussion of these non-GAAP measures for a reconciliation and discussion of this non-GAAP measure.

(a) Calculated by dividing gains and fees from origination and sale of mortgage loans held for sale by total mortgage sales.

Loan Portfolio and Asset Quality

For the Quarters Ended

(Unaudited)

(In Thousands, Except %)

	2019												2018
	Second Quarter			% of Total			First Quarter			% of Total			Fourth Quarter			% of Total			Third Quarter			% of Total			Second Quarter			% of Total
Loan portfolio
Commercial and industrial	$	989,288			23	%	$	888,345			23	%	$	867,083			24	%	$	840,439			24	%	$	813,054			24	%
Construction		525,954			12	%		539,065			14	%		556,051			15	%		491,171			14	%		522,471			15	%
Residential real estate:
1-to-4 family mortgage		688,984			16	%		552,239			15	%		555,815			16	%		553,720			16	%		528,158			15	%
Residential line of credit		218,006			5	%		187,415			5	%		190,480			5	%		214,741			6	%		208,668			6	%
Multi-family mortgage		82,945			2	%		71,532			2	%		75,457			2	%		86,264			2	%		57,344			2	%
Commercial real estate:
Owner occupied		602,723			14	%		499,123			13	%		493,524			13	%		504,149			14	%		470,872			14	%
Non-owner occupied		922,150			22	%		816,880			22	%		700,248			19	%		628,336			18	%		600,629			18	%
Consumer and other		259,466			6	%		232,192			6	%		228,853			6	%		219,711			6	%		214,379			6	%
Total loans HFI	$	4,289,516			100	%	$	3,786,791			100	%	$	3,667,511			100	%	$	3,538,531			100	%	$	3,415,575			100	%
Allowance for loan losses rollforward summary
Allowance for loan losses at the beginning of the period	$	29,814					$	28,932					$	27,608					$	26,347					$	24,406
Charge-off's		(770	)					(871	)					(806	)					(917	)					(421	)
Recoveries		213						362						279						360						1,299
Provision for loan losses		881						1,391						2,200						1,818						1,063
Adjustment for transfers to loans HFS		—						—						(349	)					—						—
Allowance for loan losses at the end of the period	$	30,138					$	29,814					$	28,932					$	27,608					$	26,347
Allowance for loan losses as a percentage of total loans HFI		0.70	%					0.79	%					0.79	%					0.78	%					0.77	%
Charge-offs
Commercial and Industrial	$	(79	)				$	(179	)				$	(340	)				$	(333	)				$	(5	)
Construction		—						—						—						(14	)					(15	)
Residential real estate:
1-to-4 family mortgage		(1	)					(81	)					(69	)					(4	)					(5	)
Residential line of credit		(103	)					(32	)					(3	)					(13	)					—
Multi-family mortgage		—						—						—						—						—
Commercial real estate:
Owner occupied		—						—						(36	)					(55	)					—
Non-owner occupied		—						—						—						—						—
Consumer and other		(587	)					(579	)					(358	)					(498	)					(396	)
Total Charge Offs:		(770	)					(871	)					(806	)					(917	)					(421	)
Recoveries
Commercial and Industrial		38						12						16						104						135
Construction		6						1						37						13						862
Residential real estate:
1-to-4 family mortgage		24						13						14						99						43
Residential line of credit		21						25						76						31						44
Multi-family mortgage		—						—						—						—						—
Commercial real estate:
Owner occupied		5						87						2						10						108
Non-owner occupied		—						—						—						—						—
Consumer and other		119						224						134						103						107
Total Recoveries:		213						362						279						360						1,299
Net (charge-off's) recoveries	$	(557	)				$	509					$	(527	)				$	(557	)				$	878
Net charge-off's (recoveries) as a percentage of average total loans		0.05	%					0.06	%					0.06	%					0.06	%					(0.11	)%
Loans classified as substandard	$	68,828					$	60,746					$	66,487					$	60,346					$	58,467
Purchased credit impaired loans		67,450						62,564						68,999						73,651						78,313

Loan Portfolio and Asset Quality

For the Quarters Ended

(Unaudited)

(In Thousands, Except %)

	2019						2018
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Nonperforming assets^(a)
Past due 90 days or more and accruing interest	$	2,100		$	1,885		$	3,041		$	2,364		$	1,639
Nonaccrual		16,135			13,721			13,685			8,355			7,174
Total nonperforming loans held for investment		18,235			15,606			16,726			10,719			8,813
Loans held for sale		—			196			397			—			—
Other real estate owned- foreclosed		7,830			7,447			7,262			8,206			9,258
Other real estate owned- acquired excess facilities		7,691			5,381			5,381			5,381			5,381
Other assets		1,499			1,779			1,637			1,564			2,341
Total nonperforming assets	$	35,255		$	30,409		$	31,403		$	25,870		$	25,793
Total nonperforming loans as a percentage of loans held for investment		0.43	%		0.41	%		0.46	%		0.3	%		0.26	%
Total nonperforming assets as a percentage of total assets		0.59	%		0.57	%		0.61	%		0.51	%		0.52	%
Total accruing loans over 90 days delinquent as a percentage of total assets		0.04	%		0.04	%		0.06	%		0.05	%		0.03	%
Loans restructured as troubled debt restructurings	$	8,714		$	8,953		$	6,794		$	7,679		$	8,603
Troubled debt restructurings as a percentage of loans held for investment		0.20	%		0.24	%		0.19	%		0.22	%		0.25	%

(a) Nonperforming assets excludes purchase credit impaired loans.

Preliminary Capital Ratios

(Unaudited)

(In Thousands, Except %)

Computation of Tangible Common Equity to Tangible Assets:	June 30, 2019			December 31, 2018

Total Equity	$	718,759		$	671,857
Less:
Goodwill		168,486			137,190
Other intangibles		19,945			11,628
Tangible Common Equity	$	530,328		$	523,039

Total Assets	$	5,940,402		$	5,136,764
Less:
Goodwill		168,486			137,190
Other intangibles		19,945			11,628
Tangible Assets	$	5,751,971		$	4,987,946

Preliminary Total Risk-Weighted Assets	$	5,070,580		$	4,480,921

Total Common Equity to Total Assets		12.1	%		13.1	%
Tangible Common Equity to Tangible Assets*		9.2	%		10.5	%


	June 30, 2019			December 31, 2018
Preliminary Regulatory Capital:
Common Equity Tier 1 Capital	$	528,794		$	524,013
Tier 1 Capital		558,794			554,013
Total Capital		588,932			582,945

Preliminary Regulatory Capital Ratios:
Common Equity Tier 1		10.4	%		11.7	%
Tier 1 Risk-Based		11	%		12.4	%
Total Risk-Based		11.6	%		13	%
Tier 1 Leverage		10	%		11.4	%

Investment Portfolio

For the Quarters Ended

(Unaudited)

(In Thousands, Except %)

	2019										2018
Securities (at fair value)	Second Quarter					First Quarter					Fourth Quarter					Third Quarter					Second Quarter
Available for sale debt securities
U.S. government agency securities	$	996		—	%	$	993		—	%	$	989		—	%	$	984		—	%	$	983		—	%
Mortgage-backed securities - residential		517,505		77	%		511,716		77	%		508,580		78	%		467,714		77	%		477,974		78	%
Municipals, tax exempt		149,305		22	%		147,640		22	%		138,887		21	%		130,672		21	%		122,247		20	%
Treasury securities		7,409		1	%		7,305		1	%		7,242		1	%		7,131		1	%		7,156		1	%
Total available for sale debt securities		675,215		100	%		667,654		100	%		655,698		100	%		606,501		99	%		608,360		99	%
Equity securities		3,242		—	%		3,181		—	%		3,107		—	%		3,067		1	%		3,075		1	%
Total securities	$	678,457		100	%	$	670,835	%	100	%	$	658,805		100	%	$	609,568		100	%	$	611,435		100	%
Securities to total assets		11.4	%				12.6	%				12.8	%				12.1	%				12.4	%

Non-GAAP Reconciliation

For the Quarters Ended

(Unaudited)

(In Thousands, Except Share Data and %)

	2019				2018
Net income, adjusted	Second Quarter		First Quarter		Fourth Quarter		Third Quarter			Second Quarter
Pre-tax net income	$	25,002	$	25,563	$	22,680	$	28,079		$	29,859
Plus merger, offering, and mortgage restructuring expenses		4,612		1,675		401		—			671
Pre-tax net income, adjusted		29,614		27,238		23,081		28,079			30,530
Income tax expense, adjusted		7,516		6,412		5,745		6,702			7,794
Net income, adjusted	$	22,098	$	20,826	$	17,336	$	21,377		$	22,736
Weighted average common shares outstanding- fully diluted		31,378,018		31,349,198		31,344,949		31,339,628			31,294,044
Diluted earnings per share, adjusted
Diluted earnings per common share	$	0.59	$	0.62	$	0.54	$	0.68		$	0.70
Plus merger, offering, and mortgage restructuring expenses		0.15		0.05		0.01		—			0.02
Less tax effect		0.04		0.01		—		—			—
Diluted earnings per share, adjusted	$	0.70	$	0.66	$	0.55	$	0.68		$	0.72



Pro forma net income, adjusted*	YTD 2019		2018		2017		2016			2015
Pre-tax net income	$	50,565	$	105,854	$	73,485	$	62,324		$	50,824
Plus merger, conversion, offering, and mortgage restructuring expenses		6,287		2,265		19,034		3,268			3,543
Less significant (losses) gains on securities, other real estate owned and other items		—		—		—		(3,539	)		4,638
Pre tax net income, adjusted		56,852		108,119		92,519		69,131			49,729
Pro forma income tax expense, adjusted		13,927		26,034		34,749		25,404			18,425
Pro forma net income, adjusted	$	42,925	$	82,085	$	57,770	$	43,727		$	31,304
Weighted average common shares outstanding- fully diluted		31,348,966		31,314,981		28,207,602		19,312,174			17,180,000

Pro forma diluted earnings per share, adjusted*
Diluted earning per share	$	1.21	$	2.55	$	1.86	$	2.10		$	2.79
Plus merger, conversion, offering, and mortgage restructuring expenses		0.2		0.07		0.67		0.17			0.21
Less significant (losses) gains on securities, other real estate owned and other items		—		—		—		(0.18	)		0.27
Less tax effect and benefit of enacted tax laws		0.05		0.01		0.48		0.19			0.91
Pro forma diluted earnings per share, adjusted	$	1.36	$	2.61	$	2.05	$	2.26		$	1.82

*Prior to the IPO in the third quarter of 2016, the Company was an S corporation and did not incur federal income taxes. In conjunction with the IPO, the Company converted to a C corporation. These results are on a pro forma basis to reflect the results of the Company on a C corporation basis and combined effective tax rates of 35.08% and 36.75% for the years ended December 31, 2015 and 2016, respectively.

Non-GAAP Reconciliation

For the Quarters Ended

(Unaudited)

(In Thousands, Except Share Data and %)

	2019						2018
Core efficiency ratio (tax-equivalent basis)	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Total noninterest expense	$	64,119		$	55,101		$	53,736		$	57,213		$	56,358
Less merger, offering, and mortgage restructuring expenses		4,612			1,675			401			—			671
Core noninterest expense	$	59,507		$	53,426		$	53,335		$	57,213		$	55,687
Net interest income (tax-equivalent basis)	$	57,488		$	53,461		$	51,799		$	53,161		$	51,909
Total noninterest income		32,979			29,039			27,249			34,355			35,763
Less gain (loss) on sales or write-downs of other real estate owned and other assets		94			152			33			446			(132	)
Less gain (loss) from securities, net		52			43			—			(27	)		(42	)
Core noninterest income		32,833			28,844			27,216			33,936			35,937
Core revenue	$	90,321		$	82,305		$	79,015		$	87,097		$	87,846
Efficiency ratio (GAAP)^(a)		71.2	%		67.2	%		68.4	%		65.7	%		64.6	%
Core efficiency ratio (tax-equivalent basis)		65.9	%		64.9	%		67.5	%		65.7	%		63.4	%
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.

	2019						2018
Banking segment core efficiency ratio (tax equivalent)	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Core consolidated noninterest expense	$	59,507		$	53,426		$	53,335		$	57,213		$	55,687
Less Mortgage segment core noninterest expense		17,835			17,486			16,262			18,821			19,582
Core Banking segment noninterest expense	$	41,672		$	35,940		$	37,073		$	38,392		$	36,105
Core revenue	$	90,321		$	82,305		$	79,015		$	87,097		$	87,846
Less Mortgage segment total revenue		19,119			16,658			13,979			19,254		$	21,498
Core Banking segment total revenue	$	71,202		$	65,647		$	65,036		$	67,843			66,348
Banking segment core efficiency ratio (tax-equivalent basis)		58.5	%		54.7	%		57	%		56.6	%		54.4	%

Mortgage segment core efficiency ratio (tax equivalent)

Mortgage segment noninterest expense	$	18,664		$	18,540		$	16,262		$	18,821		$	19,582
Less mortgage restructuring expense		829			1,054			—			—			—
Core Mortgage segment noninterest expense	$	17,835		$	17,486		$	16,262		$	18,821		$	19,582
Mortgage segment total revenue	$	19,119		$	16,658		$	13,979		$	19,254		$	21,498
Mortgage segment core efficiency ratio (tax-equivalent basis)		93.3	%		N/A			N/A			97.8	%		91.1	%

Non-GAAP Reconciliation

For the Quarters Ended

(Unaudited)

(In Thousands, Except Share Data and %)

	2019						2018
Mortgage contribution, adjusted	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Mortgage segment pre-tax net contribution	$	455		$	(1,882	)	$	(2,283	)	$	433		$	1,916
Retail footprint:
Mortgage banking income		5,451			4,386			5,041			7,417			6,894
Mortgage banking expenses		4,172			2,831			4,542			6,383			5,649
Retail footprint pre-tax net contribution		1,279			1,555			499			1,034			1,245
Total mortgage banking pre-tax net (loss) contribution	$	1,734		$	(327	)	$	(1,784	)	$	1,467		$	3,161
Plus mortgage restructuring expense		829			1,054			—			—			—
Total mortgage banking pre-tax net contribution (loss), adjusted	$	2,563		$	727		$	(1,784	)	$	1,467		$	3,161
Pre-tax net income	$	25,002			25,563		$	22,680			28,079		$	29,859
% total mortgage banking pre-tax net contribution		6.9	%		N/A			N/A			5.2	%		10.6	%
Pre-tax net income, adjusted	$	29,614		$	27,238		$	23,081		$	28,079		$	30,530
% total mortgage banking pre-tax net contribution, adjusted		8.7	%		2.7	%		N/A			5.2	%		10.4	%

	2019						2018
Tangible assets and equity	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Tangible Assets
Total assets	$	5,940,402		$	5,335,156		$	5,136,764		$	5,058,167		$	4,923,249
Less goodwill		168,486			137,190			137,190			137,190			137,190
Less intangibles, net		19,945			10,439			11,628			12,403			13,203
Tangible assets	$	5,751,971		$	5,187,527		$	4,987,946		$	4,908,574		$	4,772,856
Tangible Common Equity
Total shareholders' equity	$	718,759		$	694,577		$	671,857		$	648,731		$	630,959
Less goodwill		168,486			137,190			137,190			137,190			137,190
Less intangibles, net		19,945			10,439			11,628			12,403			13,203
Tangible common equity	$	530,328		$	546,948		$	523,039		$	499,138		$	480,566
Common shares outstanding		30,865,636			30,852,665			30,724,532			30,715,792			30,683,353
Book value per common share	$	23.29		$	22.51		$	21.87		$	21.12		$	20.56
Tangible book value per common share	$	17.18		$	17.73		$	17.02		$	16.25		$	15.66
Total shareholders' equity to total assets		12.1	%		13	%		13.1	%		12.8	%		12.8	%
Tangible common equity to tangible assets		9.2	%		10.5	%		10.5	%		10.2	%		10.1	%
Net income	$	18,688		$	19,588		$	17,040		$	21,377		$	22,065
Return on tangible common equity		14.1	%		14.5	%		12.9	%		17.0	%		18.4	%

	2019						2018
Return on average tangible common equity	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Total average shareholders' equity	$	708,557		$	684,545		$	659,050		$	638,388		$	615,950
Less average goodwill		167,781			137,190			137,190			137,190			137,190
Less average intangibles, net		20,214			10,856			12,016			12,803			13,615
Average tangible common equity	$	520,562		$	536,499		$	509,845		$	488,395		$	465,145
Net income	$	18,688		$	19,588		$	17,040		$	21,377		$	22,065
Return on average tangible common equity		14.4	%		14.8	%		13.3	%		17.4	%		19	%

Non-GAAP Reconciliation

For the Quarters Ended

(Unaudited)

(In Thousands, Except Share Data and %)

	2019						2018
Return on average tangible common equity, adjusted	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Average tangible common equity	$	520,562		$	536,499		$	509,845		$	488,395		$	465,145
Net income, adjusted		22,098			20,826			17,336			21,377			22,736
Return on average tangible common equity, adjusted		17	%		15.7	%		13.5	%		17.4	%		19.6	%

Pro forma return on average tangible common equity	YTD 2019			2018			2017			2016			2015
Total average shareholders' equity	$	696,621		$	629,922		$	466,219		$	276,587		$	228,844
Less average goodwill		152,570			137,190			84,997			46,867			46,904
Less average intangibles, net		15,562			12,815			8,047			5,353			5,095
Average tangible common equity	$	528,489		$	479,917		$	373,175		$	224,367		$	176,845
Pro forma net income	$	38,276		$	80,236		$	52,398		$	39,422		$	32,995
Pro forma return on average tangible common equity		14.6	%		16.7	%		14.0	%		17.6	%		18.7	%

Pro forma return on average tangible common equity, adjusted	YTD 2019			2018			2017			2016			2015
Average tangible common equity	$	528,489		$	479,917		$	373,175		$	224,367		$	176,845
Pro forma net income, adjusted		42,925			82,085			57,770			43,727			31,304
Pro forma return on average tangible common equity, adjusted		16.4	%		17.1	%		15.5	%		19.5	%		17.7	%

	2019						2018
Return on average assets and equity, adjusted	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Net income	$	18,688		$	19,588		$	17,040		$	21,377		$	22,065
Average assets		5,771,371			5,174,918			5,005,158			4,932,197			4,763,991
Average equity		708,557			684,545			659,050			638,388			615,950
Return on average assets		1.3	%		1.54	%		1.35	%		1.72	%		1.86	%
Return on average equity		10.6	%		11.6	%		10.3	%		13.3	%		14.4	%
Net income, adjusted	$	22,098		$	20,826		$	17,336		$	21,377		$	22,736
Return on average assets, adjusted		1.54	%		1.63	%		1.37	%		1.72	%		1.91	%
Return on average equity, adjusted		12.5	%		12.3	%		10.4	%		13.3	%		14.8	%

Pro forma return on average assets and equity, adjusted	YTD 2019			2018			2017			2016			2015
Pro forma net income	$	38,276		$	80,236		$	52,398		$	39,422		$	32,995
Average assets		5,474,495			4,844,865			3,811,158			3,001,275			2,577,895
Average equity		696,621			629,922			466,219			276,587			228,844
Pro forma return on average assets		1.41	%		1.66	%		1.37	%		1.31	%		1.28	%
Pro forma return on average equity		11.1	%		12.7	%		11.2	%		14.3	%		14.4	%
Pro forma net income, adjusted	$	42,925		$	82,085		$	57,770		$	43,727		$	31,304
Pro forma return on average assets, adjusted		1.58	%		1.69	%		1.52	%		1.46	%		1.21	%
Pro forma return on average equity, adjusted		12.4	%		13	%		12.4	%		15.8	%		13.7	%