Business Wire | Jul 21, 2021 04:15PM EDT

Tristate Capital Reports Second Quarter 2021 EPS of $0.41 on Continued Organic Growth of AUM, Loans, Revenue, Pre-Tax Income and Net Income to New Record Levels

Jul. 21, 2021

PITTSBURGH--(BUSINESS WIRE)--Jul. 21, 2021--TriState Capital Holdings, Inc. (Nasdaq: TSC) reported second quarter 2021 financial results including fully organic growth in all of its investment management, private banking and commercial banking businesses, as assets under management (AUM), loans, net interest income, fee income, revenue, pre-tax income and net income reach new record high levels.

The parent company of TriState Capital Bank and Chartwell Investment Partners grew net income available to common shareholders to $15.7 million in the second quarter of 2021, up 86.1% from $8.4 million in the second quarter of 2020 and up 19.5% from $13.1 million in the first quarter of 2021. Income before tax was a record $23.2 million in the second quarter of 2021, increasing 87.7% from $12.4 million in the second quarter of 2020 and 11.7% from $20.8 million in the linked quarter.

The company earned $0.41 per diluted share in the second quarter of 2021, compared to $0.30 in the second quarter of 2020 and $0.35 in the first quarter of 2021. Second quarter 2021 results include a higher number of diluted average shares outstanding and a $1.1 million increase in preferred dividends, compared to the year-ago quarter, both resulting from the company's December 30, 2020 private placement of $105 million of common stock, convertible preferred stock and warrants.

"TriState Capital's strong top- and bottom-line performance during the second quarter reflects the value of our premier relationships and the power of our company with more than $23 billion of on-balance-sheet assets and client assets under management," Chairman and Chief Executive Officer James F. Getz said. "Our three business lines worked in concert to drive continued growth in total revenue, pre-tax income and net income during the second quarter. Building on its breakout performance in the first quarter, Chartwell grew AUM to a new record of $11.51 billion, while delivering very strong revenue growth. Private banking was a primary driver of strong organic loan growth to $9.28 billion at TriState Capital Bank, complemented by commercial lending with our middle-market clients, further enhancing what we believe is a very attractive risk profile for the company and its balance sheet. As we enter the second half of 2021, we do so from a position of strength, supported by healthy new business pipelines, an agile funding franchise, a highly motivated team and relationships with exceptional clients nationwide."

SECOND QUARTER 2021 HIGHLIGHTS

* Chartwell's investment management business continued its strong performance and grew AUM organically to a record $11.51 billion, up 24.4% from June 30, 2020 and 2.7% during the quarter and its fees increased 22.1% from the year-ago quarter and 5.0% from the linked quarter. * Chartwell's retail and institutional distribution capability generated year-to-date net inflows of $533.0 million, while enhanced profitability supported product development including a new short duration high-grade fixed income fund to complement its Short Duration BB High Yield strategy. * Return on average common equity expanded to 10.37%, up 375 basis points from the year-ago period and 131 basis points from the linked quarter, as the company continues to productively deploy capital raised in December 2020. * Net interest income (NII) grew to a record $42.9 million, up 28.2% from the year-ago quarter and 11.0% from the linked quarter, on historic loan growth and continued net interest margin (NIM) expansion to 1.63%. * Period-end loans grew organically to a record $9.28 billion, up 29.5% from June 30, 2020 and 8.7%, during the quarter. * Private banking loans primarily collateralized by marketable securities and other liquid assets represented 61.5% of total loans at period end, growing 40.6% from June 30, 2020 and 13.1% during the quarter, while commercial loans increased by 14.9% from June 30, 2020 and 2.3% during the quarter. * The company maintained superior credit quality metrics, with period-end non-performing assets (NPAs), non-performing loans (NPLs), and adverse-rated credits declining by 46.0%, 50.8% and 33.0%, respectively, from March 31, 2021.

REVENUE GROWTH

NII grew to a record $42.9 million in the second quarter of 2021, increasing 28.2% from $33.5 million in the year-ago quarter and 11.0% from $38.7 million in the first quarter of 2021. NIM expanded for the third consecutive quarter to 1.63% for the three months ended June 30, 2021, up from 1.52% in the second quarter of 2020 and 1.59% in the first quarter of 2021.

Non-interest income grew to a record $14.8 million in the second quarter of 2021, up 14.2% from $13.0 million in the year-ago quarter and 8.7% from $13.7 million in the linked quarter. Chartwell investment management fees grew to $9.5 million in the second quarter of 2021, up 22.1% from $7.7 million in the same period the prior year and 5.0% from $9.0 million in the linked quarter, reflecting market appreciation and positive net inflows of client assets. Fees from commercial and private banking clients' use of TriState Capital's interest rate swaps offering totaled $3.9 million in the second quarter of 2021, $3.9 million in the prior year quarter and $2.7 million in the linked quarter.

NII and non-interest income, excluding net gains and losses on the sale of debt securities, combined to generate record total revenue of $57.7 million for the second quarter of 2021, an increase of 24.1% from $46.5 million in the year-ago period and 10.2% from $52.3 million in the linked quarter. Total revenue, which is not a financial metric under generally accepted accounting principles (GAAP), is a measure that TriState Capital has consistently utilized to provide a greater understanding of the diversity and balance of its income-generating capabilities. Non-interest income represented 25.6% of total revenue in the second quarter of 2021 when excluding net gains on the sale of securities, compared to 27.9% from the year-ago period and 26.1% from the linked quarter.

EXPENSES IN LINE WITH EXPECTATIONS

TriState Capital continues to invest in talent, technology, products and risk and compliance management to support the continued responsible growth of its businesses and balance sheet, to provide a premier client experience, and to scale its efficient branchless operating model.

Second quarter 2021 non-interest expense of $34.4 million was in-line with the company's expectations, increasing 22.5% from $28.1 million in the year-ago period and increasing 10.1% from $31.3 million in the linked quarter. Non-interest expense for the first half of 2021 was $65.7 million, up 14.8% from the first half of 2020. TriState Capital continues to maintain its goal of annual operating expense growth of 10% to 12% for full-year 2021.

Operating expenses continue to be favorably impacted by what are expected to be sustainable reductions in annual Federal Deposit Insurance Corporation (FDIC) insurance expense as a percentage of average assets, as compared to prior years. FDIC insurance expense was $1.1 million in the second quarter of 2021, or an annualized 0.04% of average assets, compared to $2.6 million, or 0.11%, in the same period the prior year, and $1.1 million, or 0.04%, in the linked quarter.

TriState Capital Bank's efficiency ratio for the second quarter of 2021 was 51.51%, compared to 50.39% in the second quarter of 2020 and 50.59% in the linked quarter. Efficiency ratio is a non-GAAP financial metric utilized to provide a greater understanding of a bank's level of non-interest expense as a percentage of total revenue.

TriState Capital continued to maintain a low annualized non-interest expense to average assets ratio of 1.27% in the second quarter of 2021, compared to 1.22% in the second quarter of 2020 and 1.24% in the linked quarter.

Pre-tax, pre-provision net revenue grew to a record $23.2 million in the second quarter of 2021, increasing 26.5% from $18.4 million in the year-ago period and 10.5% from $21.0 million in the linked quarter. Pre-tax, pre-provision net revenue is a non-GAAP financial metric representing net income, without giving effect to loan loss provision and income taxes, and excluding gains and losses on the sale and call of investment securities.

TriState Capital's effective tax rate was 19.2% for the second quarter of 2021. The company's effective tax rate is impacted by certain factors including the number, timing and size of tax credit investments, as well as the proportion of consolidated earnings attributed to investment management. The company's 2021 effective tax rate, based on factors including anticipated tax credit investment opportunities, is currently expected to be in the high teens.

Net income available to common shareholders and earnings per share in the second quarter of 2021 are net of $3.1 million in dividends payable to holders of the company's Series A, Series B and Series C Non-Cumulative Perpetual Preferred Stock.

INVESTMENT MANAGEMENT

A combination of investment performance, strong client relationships and a robust new business effort contributed to positive net inflows of $27.0 million for the three months ending June 30, 2021. In addition, Chartwell's new business pipeline currently has in excess of $65 million in commitments from institutional investors.

Chartwell's new business and new flows from existing accounts of $458.0 million and market appreciation of $281.0 million more than offset outflows of $431.0 million in the second quarter of 2021. Chartwell's assets under management grew to $11.51 billion at June 30, 2021, increasing 24.4% from $9.25 billion on June 30, 2020 and 2.7% from $11.20 billion on March 31, 2021.

Annual run-rate revenue grew to $39.9 million as of June 30, 2021, increasing 2.7% from March 31, 2021. Chartwell's weighted average fee rate was 0.35% at June 30, 2021. Investment management fee revenue was $9.5 million in the second quarter of 2021, compared to $7.7 million in the second quarter of 2020 and $9.0 million in the first quarter of 2021.

Initiatives to enhance Chartwell profitability continue to be reflected in the segment's improving level of expenses relative to revenue. Chartwell segment expenses were $8.3 million in the second quarter of 2021, compared to $7.5 million in the second quarter of 2020 and $7.9 million in the first quarter of 2021.

ORGANIC LENDING FRANCHISE GROWTH

TriState Capital's client engagement and distribution capabilities continued to drive the organic growth of both sides of its balance sheet by expanding the number and depth of its premier relationships with high-quality middle-market commercial customers, as well as expanding the number of high-net-worth clients the bank serves through its growing national referral network of financial intermediaries.

Average loans totaled a record $8.81 billion in the second quarter of 2021, growing 24.2% from $7.09 billion in the prior year period and 6.4% from $8.28 billion in the linked quarter. Period-end loans totaled a record $9.28 billion on June 30, 2021, growing $2.11 billion, or 29.5%, from June 30, 2020, and $739.7 million, or 8.7%, from March 31, 2021.

TriState Capital continued to fortify its position as the nation's leading independent provider of marketable securities-backed loans for clients of independent investment advisory firms, trust companies, broker-dealers, regional securities firms, family offices, insurance companies and other financial intermediaries that do not offer banking services themselves. Private banking loans totaled a record $5.71 billion at June 30, 2021, increasing $1.65 billion, or 40.6%, from one year prior and $659.9 million, or 13.1%, from the end of the linked quarter.

The company continued to grow relationships with top-quality middle-market sponsors and businesses, driving originations of commercial and industrial (C&I) and commercial real estate (CRE) loans while managing credit quality within the portfolio. Commercial loans totaled $3.57 billion at June 30, 2021, increasing $461.7 million, or 14.9%, from one year prior and $79.8 million, or 2.3%, from the end of the linked quarter.

C&I loans grew to $1.24 billion at June 30, 2021, increasing $88.0 million, or 7.6%, from one year prior. C&I loans decreased $8.3 million, or 0.7%, from March 31, 2021, as new loan originations, draws and equipment finance production were offset by amortization and paydowns. The bank did not participate in the Paycheck Protection Program (PPP).

CRE loans grew to $2.33 billion at June 30, 2021, increasing $373.7 million, or 19.1%, from one year prior and $88.1 million, or 3.9%, from the end of the linked quarter.

STRATEGIC DEPOSIT AND LIQUIDITY MANAGEMENT FRANCHISE EXPANSION

TriState Capital continues to deliver growth on its agile liquidity management franchise, which creates meaningful service-based client relationships and provides highly responsive funding. The bank is winning new business and enhancing the breadth and depth of existing client relationships with its nationally distributed service and liquidity management offerings for financial services businesses, payroll and other specialized payment servicers, real estate firms, high-net-worth individuals, family offices, middle market companies, municipalities and non-profits.

Average deposits totaled a record $9.56 billion in the second quarter of 2021, growing 19.5% from $8.00 billion in the second quarter of last year and 8.0% from $8.85 billion in the linked quarter. Period-end deposits totaled a record $10.19 billion at June 30, 2021, growing $2.36 billion, or 30.1%, from June 30, 2020, and $941.4 million, or 10.2%, from March 31, 2021.

Treasury management deposit accounts totaled $2.27 billion at June 30, 2021, increasing $1.14 billion, or 101.9%, from June 30, 2020 and $450.1 million, or 24.8%, from March 31, 2021.

The bank's loan-to-deposit ratio at June 30, 2021 was 91.09%, compared to 91.56% at June 30, 2020 and 92.36% at March 31, 2021, reflecting the bank's differentiated ability to manage liquidity levels in line with deployment opportunities.

INTEREST RATE MANAGEMENT

TriState Capital continues to maintain a balance sheet with significant flexibility to manage interest rate dynamics, while offering attractive deposit and loan pricing to clients. Ultimately, the bank continues to favor an asset-neutral to asset-sensitive approach over the long term.

Investment securities totaled a record $1.34 billion at June 30, 2021, up 64.7% from June 30, 2020 and 8.7% from March 31, 2021 as the bank continued to build on-balance sheet liquidity.

Approximately 60% of TriState Capital's non-fixed rate deposits use the Effective Fed Funds Rate or another benchmark as reference points, and the remaining non-fixed rate deposits are priced at rates set with bank discretion. Total cost of funds for all deposits and interest-bearing liabilities averaged 0.51% during the second quarter of 2021, compared to 0.87% in the same period last year and 0.59% in the linked quarter. The total cost of deposits averaged 0.42% during the second quarter of 2021, compared to 0.80% in the same period last year and 0.49% in the linked quarter.

At June 30, 2021, 94% of the bank's loans were floating rate and indexed to 30-day LIBOR or the Prime Rate. TriState Capital continued to constructively use interest rate floors on existing and new variable rate loans throughout the second quarter of 2021.

The yield on total loans averaged 2.35% during the second quarter of 2021, compared to 2.69% in the prior year period and 2.41% in the linked quarter. Loan yields resulted primarily from trends in 30-day LIBOR which declined on average approximately 2 basis points during the second quarter of 2021. Loan yields were also affected by higher rates of growth in balances of private bank loans relative to commercial bank loans. Loan yield movement was offset by a continued reduction in deposit costs.

ASSET QUALITY

TriState Capital maintained strong asset quality metrics in the second quarter of 2021, reflecting its disciplined credit culture and lower risk profile resulting from the majority of its loans consisting of private banking non-purpose margin loans collateralized by marketable securities. Private banking grew to represent 61.5% of the total loan portfolio at June 30, 2021, while CRE and C&I comprised 25.1% and 13.4% of total loans, respectively.

COVID-19 deferral levels continued to decline in line with expectations to four loans representing $41.0 million or 0.4% of total loans on June 30, 2021, from eight loans representing $62.1 million or 0.7% of total loans on March 31, 2021.

The allowance for credit losses on loans and leases (ACL) was $32.6 million at June 30, 2021, compared to $23.3 million at June 30, 2020 and $34.6 million at March 31, 2021. ACL represented 0.91% of commercial loans at period end, excluding private banking loans primarily collateralized by liquid, marketable securities that do not require a reserve, compared to 0.75% at June 30, 2020 and 0.99% at March 31, 2021. As a percentage of total loans, ACL was 0.35% at June 30, 2021, 0.32% at June 30, 2020 and 0.41% at March 31, 2021.

TriState Capital's net charge offs (NCOs) were $2.3 million in the second quarter of 2021, or 0.10% of total average loans of $8.81 billion. NCOs were $33,000 in the year-ago quarter and $199,000 in the linked quarter.

During the second quarter of 2021, NPAs, NPLs, and adverse-rated credits declined by 46.0%, 50.8% and 33.0%, respectively, from March 31, 2021 to June 30, 2021.

NPAs were $13.7 million, or 0.12% of total assets, at June 30, 2021, compared to $9.5 million, or 0.10%, at June 30, 2020 and $25.5 million, or 0.24%, at March 31, 2021. NPLs were $11.2 million, or 0.12% of total loans, at June 30, 2021, compared to $6.8 million, or 0.09%, at June 30, 2020 and $22.7 million, or 0.27%, at March 31, 2021.

Total adverse-rated credits, including NPLs, were $34.1 million, or 0.37% of total loans, at June 30, 2021, compared to $33.0 million, or 0.46%, at June 30, 2020 and $50.9 million, or 0.60%, at March 31, 2021.

TriState Capital recorded provision expense of $96,000 in the second quarter of 2021, $6.0 million in the second quarter of 2020 and $224,000 in the linked quarter.

CAPITAL STRENGTH AND EFFICIENCY

The company's strong balance sheet included $1.87 billion in cash, equivalents and securities at June 30, 2021. Cash, equivalents, securities and private banking loans -- which are primarily collateralized by marketable securities that are monitored daily, liquid and subject to favorable treatment under regulatory capital requirements -- represented 65.68% of total assets at the end of the second quarter of 2021.

As of June 30, 2021, estimated regulatory capital ratios for TriState Capital Holdings were 13.94% for total risk-based capital, 11.94% for tier 1 risk-based capital, 9.06% for common equity tier 1 risk-based capital, and 6.86% for tier 1 leverage, reflecting the historic level of asset growth in the second quarter of 2021. For TriState Capital Bank, the estimated capital ratios were 13.26% for total risk-based capital, 12.80% for tier 1 risk-based capital, 12.80% for common equity tier 1 risk-based capital, and 7.34% for tier 1 leverage.

The company's common shareholders equity to total assets was 5.3% on June 30, 2021. The ratio of common shareholders' equity excluding intangible assets, or tangible common equity (TCE), to total assets excluding intangible assets was 4.81% on June 30, 2021. The TCE ratio was 9.58% excluding private banking loans primarily collateralized by liquid, marketable securities on June 30, 2021. The TCE ratio and TCE ratio excluding private banking loans are non-GAAP metrics utilized to provide a greater understanding of the capital adequacy of financial services companies.

TriState Capital had $9.8 million of common stock repurchase authority available at June 30, 2021 under previously disclosed buyback programs authorized by its Board of Directors. Since the Board first authorized share buybacks in 2014, the company has repurchased a total of 2.1 million shares for approximately $33.0 million at an average cost of $15.39 per share. The company has not repurchased shares on the open market since the second quarter of 2020.

CONFERENCE CALL

As previously announced, TriState Capital will hold a conference call tomorrow to review its financial results and operating performance.

The live conference call on July 22 will be held at 8:30 a.m. ET. Telephone participants may avoid any delays by pre-registering for the call using the link https://dpregister.com/sreg/10157838/e9f425b8be to receive a special dial-in number and PIN. Telephone participants who are unable to pre-register should dial in at least 10 minutes prior to the call and request the "TriState Capital investor call." The call may be accessed by dialing 888-339-0757 from the United States or Canada, and 412-902-4194 from other international locations.

The live conference call will also be available through an audio webcast accessible at https://services.choruscall.com/links/tsc210722.html or https://investors.tristatecapitalbank.com. These links may also be used to access an archived replay of the conference call.

A telephone replay of the call will be available approximately one hour after the end of the conference through July 29. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada, or 412-317-0088 from other international locations, and entering the conference number 10157838.

ABOUT TRISTATE CAPITAL

TriState Capital Holdings, Inc. (Nasdaq: TSC) is a bank holding company headquartered in Pittsburgh, Pa., providing commercial banking, private banking and investment management services to middle-market companies, institutional clients and high-net-worth individuals. Its TriState Capital Bank subsidiary had $11.46 billion in assets as of June 30, 2021, and serves middle-market commercial customers through regional representative offices in Pittsburgh, Philadelphia, Cleveland, Edison, N.J., and New York City, as well as high-net-worth individuals nationwide through its national referral network of financial intermediaries. Its Chartwell Investment Partners subsidiary had $11.51 billion in assets under management as of June 30, 2021, and serves institutional clients and TriState Capital's financial intermediary network. For more information, please visit http://investors.tristatecapitalbank.com.

FORWARD-LOOKING STATEMENTS

This news release contains "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. These forward-looking statements reflect TriState Capital's current views with respect to, among other things, future events and the company's financial performance, as well as the company's goals and objectives for future operations, financial and business trends, business prospects and management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other measures of future financial or business performance, strategies or expectations. These statements are often, but not always, made through the use of words or phrases such as "achieve," "anticipate," "believe," "continue," "could," "estimate," "expect," "goal," "intend," "maintain," "may," "opportunity," "outlook," "plan," "potential," "predict," "projection," "seek," "should," "sustain," "target," "trend," "will," "will likely result," and "would," or the negative versions of those words or other comparable statements of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about TriState Capital's industry and beliefs or assumptions made by management, many of which, by their nature, are inherently uncertain. Although TriState Capital believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, TriState Capital cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that change over time and are difficult to predict, including, but not limited to, the following:

* risks associated with the COVID-19 pandemic and their expected impact and duration, including effects on TriState Capital's operations, its clients, economic conditions and the demand for its products and services; * TriState Capital's ability to prudently manage its growth and execute its strategy, including the successful integration of past and future acquisitions, its ability to fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and manage customer disintermediation; * deterioration of TriState Capital's asset quality; * TriState Capital's level of non-performing assets and the costs associated with resolving problem loans, including litigation and other costs; * possible additional loan and lease losses and impairment, changes in the value of collateral securing TriState Capital's loans and leases and the collectability of loans and leases, particularly as a result of the COVID-19 pandemic and the programs implemented by the Coronavirus Aid, Relief, and Economic Security Act, including its automatic loan forbearance provisions; * possible changes in the speed of loan prepayments by customers and loan origination or sales volumes; * business and economic conditions generally and in the financial services industry, nationally and within TriState Capital's local market areas, including the effects of an increase in unemployment levels, slowdowns in economic growth and changes in demand for products or services or the value of assets under management; * TriState Capital's ability to maintain important deposit customer relationships, its reputation and otherwise avoid liquidity risks; * changes in management personnel; * TriState Capital's ability to recruit and retain key employees; * volatility and direction of interest rates; * risks related to the phasing out of LIBOR and changes in the manner of calculating reference rates, as well as the impact of the phase out of LIBOR and introduction of alternative reference rates on the value of loans and other financial instruments we hold that are linked to LIBOR; * changes in accounting policies, accounting standards, or authoritative accounting guidance, including the CECL model; * any impairment of TriState Capital's goodwill or other intangible assets; * TriState Capital's ability to develop and provide competitive products and services that appeal to its customers and target markets; * TriState Capital's ability to provide investment management performance competitive with its peers and benchmarks; * fluctuations in the carrying value of the assets under management held by Chartwell Investment Partners, LLC, the company's registered investment advisor subsidiary, as well as the relative and absolute investment performance of such subsidiary's investment products; * operational risks associated with TriState Capital's business, including technology and cyber-security related risks; * increased competition in the financial services industry, particularly from regional and national institutions; * negative perceptions or publicity with respect to any products or services offered by TriState Capital; * adverse judgments or other resolution of pending and future legal proceedings, and costs incurred in defending such proceedings; * changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters, including economic stimulus programs, and potential expenses associated with complying with such laws and regulations; * TriState Capital's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms; * regulatory limits on TriState Capital's ability to receive dividends from its subsidiaries and pay dividends to shareholders; * changes and direction of government policy towards and intervention in the U.S. financial system; * natural disasters and adverse weather, acts of terrorism, regional or national civil unrest, cyber-attacks, an outbreak of hostilities, a public health outbreak (such as COVID-19) or other international or domestic calamities, and other matters beyond TriState Capital's control; * the effects of any reputation, credit, interest rate, market, operational, legal, liquidity, regulatory or compliance risk resulting from developments related to any of the risks discussed above; and * other factors that are discussed in TriState Capital's filings with the Securities and Exchange Commission.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if TriState Capital's underlying assumptions prove to be incorrect, actual results may differ materially from what the company anticipates. Accordingly, readers should not place undue reliance on any such forward-looking statements. New factors emerge from time to time, and it is not possible for TriState Capital to predict which will arise. Any forward-looking statement speaks only as of the date on which it is made, and TriState Capital does not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. In addition, TriState Capital cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

NON-GAAP FINANCIAL DISCLOSURES

This news release and the accompanying tables contain certain financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). Specifically, TriState Capital reviews and reports tangible common equity, tangible book value per common share, tangible assets, tangible assets excluding private banking loans, tangible common equity ratio, tangible common equity ratio excluding private banking loans, EBITDA, total revenue, pre-tax, pre-provision net revenue and efficiency ratio. Although TriState Capital believes these non-GAAP financial measures provide a greater understanding of its business, these measures are not necessarily comparable to similar measures that may be presented by other companies. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP. Where non-GAAP disclosures are used, the most directly comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found within this news release and in the reconciliation tables accompanying this news release.

TRISTATE CAPITAL HOLDINGS, INC.

BALANCE SHEET DATA (UNAUDITED)

As of

June 30, March 31, June 30,

(Dollars in thousands) 2021 2021 2020

Cash and cash equivalents $ 529,453 $ 446,484 $ 724,942

Total investment securities 1,337,658 1,231,074 812,140

Loans and leases held-for-investment 9,282,922 8,543,182 7,170,770

Allowance for credit losses on loans (32,577) (34,644) (23,276) and leases

Loans and leases held-for-investment, 9,250,345 8,508,538 7,147,494 net

Goodwill and other intangibles, net 62,955 63,433 64,867

Other assets 360,761 315,621 380,398

Total assets $ 11,541,172 $ 10,565,150 $ 9,129,841



Deposits $ 10,191,433 $ 9,250,019 $ 7,831,471

Borrowings, net 345,600 345,547 395,552

Other liabilities 209,571 195,298 269,987

Total liabilities 10,746,604 9,790,864 8,497,010



Preferred stock 179,343 178,243 116,079

Common shareholders' equity 615,225 596,043 516,752

Total shareholders' equity 794,568 774,286 632,831



Total liabilities and shareholders' $ 11,541,172 $ 10,565,150 $ 9,129,841 equity

TRISTATE CAPITAL HOLDINGS, INC.

INCOME STATEMENT DATA (UNAUDITED)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands)

2021

2021

2020

2021

2020

Interest income:

Loans and leases

$

51,702

$

49,186

$

47,377

$

100,888

$

106,295

Investments

3,737

2,646

3,940

6,383

7,841

Interest-earning deposits

116

160

344

276

1,727

Total interest income

55,555

51,992

51,661

107,547

115,863

Interest expense:

Deposits

10,106

10,754

15,953

20,860

43,197

Borrowings

2,537

2,582

2,224

5,119

4,260

Total interest expense

12,643

13,336

18,177

25,979

47,457

Net interest income

42,912

38,656

33,484

81,568

68,406

Provision for credit losses

96

224

6,005

320

8,998

Net interest income after provision for credit losses

42,816

38,432

27,479

81,248

59,408

Non-interest income:

Investment management fees

9,451

9,000

7,738

18,451

15,376

Service charges on deposits

325

316

315

641

528

Net gain (loss) on the sale and call of debt securities

98

(1)

14

97

71

Swap fees

3,913

2,711

3,853

6,624

8,226

Commitment and other loan fees

564

326

462

890

881

Bank owned life insurance income

480

429

429

909

857

Other income

13

870

186

883

374

Total non-interest income

14,844

13,651

12,997

28,495

26,313

Non-interest expense:

Compensation and employee benefits

20,937

19,921

16,569

40,858

34,015

Premises and equipment expense

1,173

1,406

1,515

2,579

2,901

Professional fees

2,124

1,324

1,109

3,448

2,579

FDIC insurance expense

1,125

1,125

2,560

2,250

4,730

General insurance expense

341

298

278

639

540

State capital shares tax expense

777

650

366

1,427

749

Travel and entertainment expense

639

441

279

1,080

1,143

Technology and data services

3,687

3,100

2,414

6,787

4,717

Intangible amortization expense

478

478

486

956

988

Marketing and advertising

898

684

686

1,582

1,300

Other operating expenses

2,246

1,851

1,834

4,097

3,578

Total non-interest expense

34,425

31,278

28,096

65,703

57,240

Income before tax

23,235

20,805

12,380

44,040

28,481

Income tax expense

4,455

4,605

1,979

9,060

5,185

Net income

$

18,780

$

16,200

$

10,401

$

34,980

$

23,296

Preferred stock dividends

3,077

3,059

1,962

6,136

3,924

Net income available to common shareholders

$

15,703

$

13,141

$

8,439

$

28,844

$

19,372

TRISTATE CAPITAL HOLDINGS, INC.

INCOME STATEMENT DATA (UNAUDITED)

Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30, June 30,

(Dollars in 2021 2021 2020 2021 2020thousands)

Interest income:

Loans and leases $ 51,702 $ 49,186 $ 47,377 $ 100,888 $ 106,295

Investments 3,737 2,646 3,940 6,383 7,841

Interest-earning 116 160 344 276 1,727 deposits

Total interest 55,555 51,992 51,661 107,547 115,863 income



Interest expense:

Deposits 10,106 10,754 15,953 20,860 43,197

Borrowings 2,537 2,582 2,224 5,119 4,260

Total interest 12,643 13,336 18,177 25,979 47,457 expense

Net interest income 42,912 38,656 33,484 81,568 68,406

Provision for credit 96 224 6,005 320 8,998 losses

Net interest incomeafter provision for 42,816 38,432 27,479 81,248 59,408 credit losses

Non-interest income:

Investment 9,451 9,000 7,738 18,451 15,376 management fees

Service charges on 325 316 315 641 528 deposits

Net gain (loss) onthe sale and call of 98 (1) 14 97 71 debt securities

Swap fees 3,913 2,711 3,853 6,624 8,226

Commitment and other 564 326 462 890 881 loan fees

Bank owned life 480 429 429 909 857 insurance income

Other income 13 870 186 883 374

Total non-interest 14,844 13,651 12,997 28,495 26,313 income

Non-interest expense:

Compensation and 20,937 19,921 16,569 40,858 34,015 employee benefits

Premises and 1,173 1,406 1,515 2,579 2,901 equipment expense

Professional fees 2,124 1,324 1,109 3,448 2,579

FDIC insurance 1,125 1,125 2,560 2,250 4,730 expense

General insurance 341 298 278 639 540 expense

State capital shares 777 650 366 1,427 749 tax expense

Travel andentertainment 639 441 279 1,080 1,143 expense

Technology and data 3,687 3,100 2,414 6,787 4,717 services

Intangible 478 478 486 956 988 amortization expense

Marketing and 898 684 686 1,582 1,300 advertising

Other operating 2,246 1,851 1,834 4,097 3,578 expenses

Total non-interest 34,425 31,278 28,096 65,703 57,240 expense

Income before tax 23,235 20,805 12,380 44,040 28,481

Income tax expense 4,455 4,605 1,979 9,060 5,185

Net income $ 18,780 $ 16,200 $ 10,401 $ 34,980 $ 23,296

Preferred stock 3,077 3,059 1,962 6,136 3,924 dividends

Net income availableto common $ 15,703 $ 13,141 $ 8,439 $ 28,844 $ 19,372 shareholders

TRISTATE CAPITAL HOLDINGS, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

As of and For the

Three Months Ended

As of and For the

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands, except per share data)

2021

2021

2020

2021

2020

Per share and share data:

Earnings per common share:

Basic

$

0.42

$

0.36

$

0.30

$

0.78

$

0.69

Diluted

$

0.41

$

0.35

$

0.30

$

0.76

$

0.68

Book value per common share

$

18.54

$

17.97

$

17.31

$

18.54

$

17.31

Tangible book value per common share (1)

$

16.65

$

16.06

$

15.14

$

16.65

$

15.14

Common shares outstanding, at end of period

33,176,934

33,160,605

29,851,550

33,176,934

29,851,550

Weighted average common shares outstanding:

Basic

31,280,481

31,224,474

28,223,085

31,252,632

28,201,837

Diluted

32,147,758

32,187,034

28,527,961

32,278,282

28,687,804

Performance ratios:

Return on average assets (2)

0.69

%

0.64

%

0.45

%

0.67

%

0.54

%

Return on average common equity (2)

10.37

%

9.06

%

6.62

%

9.73

%

7.60

%

Net interest margin (2) (3)

1.63

%

1.59

%

1.52

%

1.61

%

1.67

%

Total revenue (1)

$

57,658

$

52,308

$

46,467

$

109,966

$

94,648

Pre-tax, pre-provision net revenue (1)

$

23,233

$

21,030

$

18,371

$

44,263

$

37,408

Bank efficiency ratio (1)

51.51

%

50.59

%

50.39

%

51.07

%

51.13

%

Non-interest expense to average assets (2)

1.27

%

1.24

%

1.22

%

1.26

%

1.34

%

Asset quality:

Non-performing loans

$

11,175

$

22,727

$

6,780

$

11,175

$

6,780

Non-performing assets

$

13,743

$

25,451

$

9,504

$

13,743

$

9,504

Other real estate owned

$

2,568

$

2,724

$

2,724

$

2,568

$

2,724

Non-performing assets to total assets

0.12

%

0.24

%

0.10

%

0.12

%

0.10

%

Non-performing loans to total loans

0.12

%

0.27

%

0.09

%

0.12

%

0.09

%

ACL to loans and leases

0.35

%

0.41

%

0.32

%

0.35

%

0.32

%

ACL to non-performing loans

291.52

%

152.44

%

343.30

%

291.52

%

343.30

%

Net charge-offs (recoveries)

$

2,253

$

199

$

33

$

2,452

$

(170)

Net charge-offs (recoveries) to average total loans (2)

0.10

%

0.01

%

-

%

0.06

%

-

%

Capital ratios: (4)

Tier 1 leverage ratio

6.86

%

7.13

%

6.30

%

6.86

%

6.30

%

Common equity tier 1 risk-based capital ratio

9.06

%

9.10

%

8.54

%

9.06

%

8.54

%

Tier 1 risk-based capital ratio

11.94

%

12.08

%

10.68

%

11.94

%

10.68

%

Total risk-based capital ratio

13.94

%

14.18

%

12.89

%

13.94

%

12.89

%

Bank tier 1 leverage ratio

7.34

%

7.65

%

7.11

%

7.34

%

7.11

%

Bank common equity tier 1 risk-based capital ratio

12.80

%

12.98

%

12.07

%

12.80

%

12.07

%

Bank tier 1 risk based capital ratio

12.80

%

12.98

%

12.07

%

12.80

%

12.07

%

Bank total risk-based capital ratio

13.26

%

13.49

%

12.52

%

13.26

%

12.52

%

Investment Management Segment:

Assets under management

$

11,511,000

$

11,203,000

$

9,254,000

$

11,511,000

$

9,254,000

EBITDA (1)

$

2,063

$

1,916

$

1,031

$

3,979

$

2,248

TRISTATE CAPITAL HOLDINGS, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

As of and For the As of and For the



Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30, June 30,

(Dollars inthousands, 2021 2021 2020 2021 2020except pershare data)

Per share and share data:

Earnings per common share:

Basic $ 0.42 $ 0.36 $ 0.30 $ 0.78 $ 0.69

Diluted $ 0.41 $ 0.35 $ 0.30 $ 0.76 $ 0.68

Book value per $ 18.54 $ 17.97 $ 17.31 $ 18.54 $ 17.31 common share

Tangible bookvalue per $ 16.65 $ 16.06 $ 15.14 $ 16.65 $ 15.14 common share ^(1)

Common sharesoutstanding, 33,176,934 33,160,605 29,851,550 33,176,934 29,851,550 at end ofperiod

Weightedaverage common sharesoutstanding:

Basic 31,280,481 31,224,474 28,223,085 31,252,632 28,201,837

Diluted 32,147,758 32,187,034 28,527,961 32,278,282 28,687,804



Performance ratios:

Return onaverage assets 0.69 % 0.64 % 0.45 % 0.67 % 0.54 %^(2)

Return onaverage common 10.37 % 9.06 % 6.62 % 9.73 % 7.60 %equity ^(2)

Net interestmargin ^(2) 1.63 % 1.59 % 1.52 % 1.61 % 1.67 %(3)

Total revenue $ 57,658 $ 52,308 $ 46,467 $ 109,966 $ 94,648 ^(1)

Pre-tax,pre-provision $ 23,233 $ 21,030 $ 18,371 $ 44,263 $ 37,408 net revenue ^(1)

Bankefficiency 51.51 % 50.59 % 50.39 % 51.07 % 51.13 %ratio ^(1)

Non-interestexpense to 1.27 % 1.24 % 1.22 % 1.26 % 1.34 %average assets^(2)



Asset quality:

Non-performing $ 11,175 $ 22,727 $ 6,780 $ 11,175 $ 6,780 loans

Non-performing $ 13,743 $ 25,451 $ 9,504 $ 13,743 $ 9,504 assets

Other real $ 2,568 $ 2,724 $ 2,724 $ 2,568 $ 2,724 estate owned

Non-performingassets to 0.12 % 0.24 % 0.10 % 0.12 % 0.10 %total assets

Non-performingloans to total 0.12 % 0.27 % 0.09 % 0.12 % 0.09 %loans

ACL to loans 0.35 % 0.41 % 0.32 % 0.35 % 0.32 %and leases

ACL tonon-performing 291.52 % 152.44 % 343.30 % 291.52 % 343.30 %loans

Netcharge-offs $ 2,253 $ 199 $ 33 $ 2,452 $ (170) (recoveries)

Netcharge-offs(recoveries) 0.10 % 0.01 % - % 0.06 % - %to averagetotal loans ^(2)



Capital ratios: ^(4)

Tier 1 6.86 % 7.13 % 6.30 % 6.86 % 6.30 %leverage ratio

Common equitytier 1 9.06 % 9.10 % 8.54 % 9.06 % 8.54 %risk-basedcapital ratio

Tier 1risk-based 11.94 % 12.08 % 10.68 % 11.94 % 10.68 %capital ratio

Totalrisk-based 13.94 % 14.18 % 12.89 % 13.94 % 12.89 %capital ratio

Bank tier 1 7.34 % 7.65 % 7.11 % 7.34 % 7.11 %leverage ratio

Bank commonequity tier 1 12.80 % 12.98 % 12.07 % 12.80 % 12.07 %risk-basedcapital ratio

Bank tier 1risk based 12.80 % 12.98 % 12.07 % 12.80 % 12.07 %capital ratio

Bank totalrisk-based 13.26 % 13.49 % 12.52 % 13.26 % 12.52 %capital ratio



InvestmentManagement Segment:

Assets under $ 11,511,000 $ 11,203,000 $ 9,254,000 $ 11,511,000 $ 9,254,000 management

EBITDA ^(1) $ 2,063 $ 1,916 $ 1,031 $ 3,979 $ 2,248

(1)

These measures are not measures recognized under GAAP and are therefore considered to be non-GAAP financial measures. See "Non-GAAP Financial Measures" for a reconciliation of these measures to their most directly comparable GAAP measures.

(2)

Ratios are annualized.

(3)

Net interest margin is calculated on a fully taxable equivalent basis.

(4)

Capital ratios are estimated until regulatory reports are filed.

These measures are not measures recognized under GAAP and are therefore^ considered to be non-GAAP financial measures. See "Non-GAAP Financial(1) Measures" for a reconciliation of these measures to their most directly comparable GAAP measures.

^ Ratios are annualized.(2)

^ Net interest margin is calculated on a fully taxable equivalent basis.(3)

^ Capital ratios are estimated until regulatory reports are filed.(4)

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

Three Months Ended

June 30, 2021

March 31, 2021

June 30, 2020

(Dollars in thousands)

Average Balance

Interest Income (1)/ Expense

Average Yield/ Rate (2)

Average Balance

Interest Income (1)/ Expense

Average Yield/ Rate (2)

Average Balance

Interest Income (1)/ Expense

Average Yield/ Rate (2)

Assets

Interest-earning deposits

$

407,627

$

114

0.11

%

$

555,427

$

158

0.12

%

$

1,098,510

$

342

0.13

%

Federal funds sold

11,502

2

0.07

%

10,557

2

0.08

%

7,883

1

0.05

%

Debt securities available-for-sale

266,264

886

1.33

%

348,835

570

0.66

%

329,015

2,026

2.48

%

Debt securities held-to-maturity

1,040,658

2,705

1.04

%

637,719

1,900

1.21

%

292,898

1,616

2.22

%

Debt securities trading

-

-

-

%

315

1

1.29

%

-

-

-

%

FHLB stock

11,776

154

5.25

%

11,551

182

6.39

%

13,269

305

9.24

%

Total loans and leases

8,808,775

51,702

2.35

%

8,276,059

49,186

2.41

%

7,094,744

47,377

2.69

%

Total interest-earning assets

10,546,602

55,563

2.11

%

9,840,463

51,999

2.14

%

8,836,319

51,667

2.35

%

Other assets

347,923

375,418

408,950

Total assets

$

10,894,525

$

10,215,881

$

9,245,269

Liabilities and Shareholders' Equity

Interest-bearing deposits:

Interest-bearing checking accounts

$

3,852,078

$

3,214

0.33

%

$

3,065,983

$

2,793

0.37

%

$

2,327,513

$

2,719

0.47

%

Money market deposit accounts

4,316,946

5,636

0.52

%

4,345,454

5,964

0.56

%

3,862,068

7,377

0.77

%

Certificates of deposit

929,906

1,256

0.54

%

1,012,861

1,997

0.80

%

1,389,984

5,857

1.69

%

Borrowings:

FHLB borrowings

250,000

1,082

1.74

%

253,889

1,072

1.71

%

300,000

1,284

1.72

%

Line of credit borrowings

-

-

-

%

4,589

55

4.86

%

22,747

260

4.60

%

Subordinated notes payable, net

95,565

1,455

6.11

%

95,511

1,455

6.18

%

44,417

680

6.16

%

Total interest-bearing liabilities

9,444,495

12,643

0.54

%

8,778,287

13,336

0.62

%

7,946,729

18,177

0.92

%

Noninterest-bearing deposits

460,601

424,535

417,732

Other liabilities

203,033

247,659

252,303

Shareholders' equity

786,396

765,400

628,505

Total liabilities and shareholders' equity

$

10,894,525

$

10,215,881

$

9,245,269

Net interest income (1)

$

42,920

$

38,663

$

33,490

Net interest spread (1)

1.57

%

1.52

%

1.43

%

Net interest margin (1)

1.63

%

1.59

%

1.52

%

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

Three Months Ended

June 30, 2021 March 31, 2021 June 30, 2020

Interest Average Interest Average Interest Average(Dollars in Average Income ^ Yield/ Average Income ^ Yield/ Average Income ^ Yield/thousands) Balance (1)/ Rate ^ Balance (1)/ Rate ^ Balance (1)/ Rate ^ Expense (2) Expense (2) Expense (2)

Assets

Interest-earning $ 407,627 $ 114 0.11 % $ 555,427 $ 158 0.12 % $ 1,098,510 $ 342 0.13 %deposits

Federal funds sold 11,502 2 0.07 % 10,557 2 0.08 % 7,883 1 0.05 %

Debt securities 266,264 886 1.33 % 348,835 570 0.66 % 329,015 2,026 2.48 %available-for-sale

Debt securities 1,040,658 2,705 1.04 % 637,719 1,900 1.21 % 292,898 1,616 2.22 %held-to-maturity

Debt securities - - - % 315 1 1.29 % - - - %trading

FHLB stock 11,776 154 5.25 % 11,551 182 6.39 % 13,269 305 9.24 %

Total loans and 8,808,775 51,702 2.35 % 8,276,059 49,186 2.41 % 7,094,744 47,377 2.69 %leases

Totalinterest-earning 10,546,602 55,563 2.11 % 9,840,463 51,999 2.14 % 8,836,319 51,667 2.35 %assets

Other assets 347,923 375,418 408,950

Total assets $ 10,894,525 $ 10,215,881 $ 9,245,269



Liabilities andShareholders' Equity

Interest-bearing deposits:

Interest-bearing $ 3,852,078 $ 3,214 0.33 % $ 3,065,983 $ 2,793 0.37 % $ 2,327,513 $ 2,719 0.47 %checking accounts

Money market 4,316,946 5,636 0.52 % 4,345,454 5,964 0.56 % 3,862,068 7,377 0.77 %deposit accounts

Certificates of 929,906 1,256 0.54 % 1,012,861 1,997 0.80 % 1,389,984 5,857 1.69 %deposit

Borrowings:

FHLB borrowings 250,000 1,082 1.74 % 253,889 1,072 1.71 % 300,000 1,284 1.72 %

Line of credit - - - % 4,589 55 4.86 % 22,747 260 4.60 %borrowings

Subordinated notes 95,565 1,455 6.11 % 95,511 1,455 6.18 % 44,417 680 6.16 %payable, net

Totalinterest-bearing 9,444,495 12,643 0.54 % 8,778,287 13,336 0.62 % 7,946,729 18,177 0.92 %liabilities

Noninterest-bearing 460,601 424,535 417,732 deposits

Other liabilities 203,033 247,659 252,303

Shareholders' 786,396 765,400 628,505 equity

Total liabilitiesand shareholders' $ 10,894,525 $ 10,215,881 $ 9,245,269 equity



Net interest income $ 42,920 $ 38,663 $ 33,490 ^(1)

Net interest spread 1.57 % 1.52 % 1.43 %^(1)

Net interest margin 1.63 % 1.59 % 1.52 %^ (1)

(1)

Calculated on a fully taxable equivalent basis.

(2)

Annualized.

^(1) Calculated on a fully taxable equivalent basis.

^(2) Annualized.

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

Six Months Ended June 30,

2021

2020

(Dollars in thousands)

Average Balance

Interest Income (1)/ Expense

Average Yield/ Rate (2)

Average Balance

Interest Income (1)/ Expense

Average Yield/ Rate (2)

Assets

Interest-earning deposits

$

481,119

$

272

0.11

%

$

781,406

$

1,705

0.44

%

Federal funds sold

11,032

4

0.07

%

7,491

21

0.56

%

Debt securities available-for-sale

307,322

1,456

0.96

%

305,442

4,070

2.68

%

Debt securities held-to-maturity

840,302

4,605

1.11

%

247,326

3,104

2.52

%

Debt securities trading

156

1

1.29

%

115

1

1.75

%

FHLB stock

11,664

336

5.81

%

16,724

703

8.45

%

Total loans and leases

8,543,889

100,888

2.38

%

6,883,718

106,295

3.11

%

Total interest-earning assets

10,195,484

107,562

2.13

%

8,242,222

115,899

2.83

%

Other assets

361,594

360,699

Total assets

$

10,557,078

$

8,602,921

Liabilities and Shareholders' Equity

Interest-bearing deposits:

Interest-bearing checking accounts

$

3,461,202

$

6,007

0.35

%

$

1,900,563

$

7,933

0.84

%

Money market deposit accounts

4,331,121

11,600

0.54

%

3,705,517

22,031

1.20

%

Certificates of deposit

971,155

3,252

0.68

%

1,386,510

13,233

1.92

%

Borrowings:

FHLB borrowings

251,933

2,154

1.72

%

360,962

3,319

1.85

%

Line of credit borrowings

2,282

55

4.86

%

12,115

261

4.33

%

Subordinated notes payable, net

95,538

2,911

6.14

%

22,208

680

6.16

%

Total interest-bearing liabilities

9,113,231

25,979

0.57

%

7,387,875

47,457

1.29

%

Noninterest-bearing deposits

442,668

383,909

Other liabilities

225,223

202,755

Shareholders' equity

775,956

628,382

Total liabilities and shareholders' equity

$

10,557,078

$

8,602,921

Net interest income (1)

$

81,583

$

68,442

Net interest spread (1)

1.56

%

1.54

%

Net interest margin (1)

1.61

%

1.67

%

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

Six Months Ended June 30,

2021 2020

Interest Average Interest Average(Dollars in Average Income ^ Yield/ Average Income ^ Yield/thousands) Balance (1)/ Rate ^ Balance (1)/ Rate ^ Expense (2) Expense (2)

Assets

Interest-earning $ 481,119 $ 272 0.11 % $ 781,406 $ 1,705 0.44 %deposits

Federal funds sold 11,032 4 0.07 % 7,491 21 0.56 %

Debt securities 307,322 1,456 0.96 % 305,442 4,070 2.68 %available-for-sale

Debt securities 840,302 4,605 1.11 % 247,326 3,104 2.52 %held-to-maturity

Debt securities 156 1 1.29 % 115 1 1.75 %trading

FHLB stock 11,664 336 5.81 % 16,724 703 8.45 %

Total loans and 8,543,889 100,888 2.38 % 6,883,718 106,295 3.11 %leases

Totalinterest-earning 10,195,484 107,562 2.13 % 8,242,222 115,899 2.83 %assets

Other assets 361,594 360,699

Total assets $ 10,557,078 $ 8,602,921



Liabilities andShareholders' Equity

Interest-bearing deposits:

Interest-bearing $ 3,461,202 $ 6,007 0.35 % $ 1,900,563 $ 7,933 0.84 %checking accounts

Money market 4,331,121 11,600 0.54 % 3,705,517 22,031 1.20 %deposit accounts

Certificates of 971,155 3,252 0.68 % 1,386,510 13,233 1.92 %deposit

Borrowings:

FHLB borrowings 251,933 2,154 1.72 % 360,962 3,319 1.85 %

Line of credit 2,282 55 4.86 % 12,115 261 4.33 %borrowings

Subordinated notes 95,538 2,911 6.14 % 22,208 680 6.16 %payable, net

Totalinterest-bearing 9,113,231 25,979 0.57 % 7,387,875 47,457 1.29 %liabilities

Noninterest-bearing 442,668 383,909 deposits

Other liabilities 225,223 202,755

Shareholders' 775,956 628,382 equity

Total liabilitiesand shareholders' $ 10,557,078 $ 8,602,921 equity



Net interest income $ 81,583 $ 68,442 ^(1)

Net interest spread 1.56 % 1.54 %^(1)

Net interest margin 1.61 % 1.67 %^ (1)

(1)

Interest income and net interest margin are calculated on a fully taxable equivalent basis.

(2)

Annualized.

^ Interest income and net interest margin are calculated on a fully taxable(1) equivalent basis.

^ Annualized.(2)

TRISTATE CAPITAL HOLDINGS, INC.

LOAN AND LEASE COMPOSITION (UNAUDITED)

June 30, 2021

March 31, 2021

June 30, 2020

(Dollars in thousands)

Loan Balance

Percent of Total Loans

Loan Balance

Percent of Total Loans

Loan Balance

Percent of Total Loans

Private banking loans

$

5,713,562

61.5

%

$

5,053,621

59.2

%

$

4,063,116

56.6

%

Middle-market banking loans:

Commercial and industrial

1,240,917

13.4

%

1,249,208

14.6

%

1,152,880

16.1

%

Commercial real estate

2,328,443

25.1

%

2,240,353

26.2

%

1,954,774

27.3

%

Total middle-market banking loans

3,569,360

38.5

%

3,489,561

40.8

%

3,107,654

43.4

%

Loans and leases held-for-investment

$

9,282,922

100.0

%

$

8,543,182

100.0

%

$

7,170,770

100.0

%

TRISTATE CAPITAL HOLDINGS, INC.

LOAN AND LEASE COMPOSITION (UNAUDITED)

June 30, 2021 March 31, 2021 June 30, 2020

Percent Percent Percent(Dollars in Loan of Loan of Loan ofthousands) Balance Total Balance Total Balance Total Loans Loans Loans

Private banking $ 5,713,562 61.5 % $ 5,053,621 59.2 % $ 4,063,116 56.6 %loans

Middle-market banking loans:

Commercial and 1,240,917 13.4 % 1,249,208 14.6 % 1,152,880 16.1 %industrial

Commercial real 2,328,443 25.1 % 2,240,353 26.2 % 1,954,774 27.3 %estate

Total middle-market 3,569,360 38.5 % 3,489,561 40.8 % 3,107,654 43.4 %banking loans

Loans and leases $ 9,282,922 100.0 % $ 8,543,182 100.0 % $ 7,170,770 100.0 %held-for-investment

TRISTATE CAPITAL HOLDINGS, INC.

STATEMENT OF INCOME BY REPORTABLE SEGMENT (UNAUDITED)

Three Months Ended June 30, 2021

Three Months Ended June 30, 2020

(Dollars in thousands)

Bank

Investment Management

Parent and Other

Consolidated

Bank

Investment Management

Parent and Other

Consolidated

Income statement data:

Interest income

$

55,555

$

-

$

-

$

55,555

$

51,661

$

-

$

-

$

51,661

Interest expense

11,199

-

1,444

12,643

17,251

-

926

18,177

Net interest income (loss)

44,356

-

(1,444)

42,912

34,410

-

(926)

33,484

Provision for credit losses

96

-

-

96

6,005

-

-

6,005

Net interest income (loss) after provision for credit losses

44,260

-

(1,444)

42,816

28,405

-

(926)

27,479

Non-interest income:

Investment management fees

-

9,774

(323)

9,451

-

7,897

(159)

7,738

Net gain on the sale and call of debt securities

98

-

-

98

14

-

-

14

Other non-interest income

5,283

12

-

5,295

5,215

30

-

5,245

Total non-interest income (loss)

5,381

9,786

(323)

14,844

5,229

7,927

(159)

12,997

Non-interest expense:

Intangible amortization expense

-

478

-

478

-

486

-

486

Other non-interest expense

25,570

7,826

551

33,947

19,967

7,003

640

27,610

Total non-interest expense

25,570

8,304

551

34,425

19,967

7,489

640

28,096

Income (loss) before tax

24,071

1,482

(2,318)

23,235

13,667

438

(1,725)

12,380

Income tax expense (benefit)

4,565

286

(396)

4,455

2,173

102

(296)

1,979

Net income (loss)

$

19,506

$

1,196

$

(1,922)

$

18,780

$

11,494

$

336

$

(1,429)

$

10,401

TRISTATE CAPITAL HOLDINGS, INC.

STATEMENT OF INCOME BY REPORTABLE SEGMENT (UNAUDITED)

Three Months Ended June 30, 2021 Three Months Ended June 30, 2020

(Dollars in Bank Investment Parent Consolidated Bank Investment Parent Consolidatedthousands) Management and Other Management and Other

Incomestatement data:

Interest $ 55,555 $ - $ - $ 55,555 $ 51,661 $ - $ - $ 51,661 income

Interest 11,199 - 1,444 12,643 17,251 - 926 18,177 expense

Net interestincome 44,356 - (1,444) 42,912 34,410 - (926) 33,484 (loss)

Provisionfor credit 96 - - 96 6,005 - - 6,005 losses

Net interestincome(loss) after 44,260 - (1,444) 42,816 28,405 - (926) 27,479 provisionfor creditlosses

Non-interest income:

Investmentmanagement - 9,774 (323) 9,451 - 7,897 (159) 7,738 fees

Net gain onthe sale and 98 - - 98 14 - - 14 call of debtsecurities

Othernon-interest 5,283 12 - 5,295 5,215 30 - 5,245 income

Totalnon-interest 5,381 9,786 (323) 14,844 5,229 7,927 (159) 12,997 income(loss)

Non-interest expense:

Intangibleamortization - 478 - 478 - 486 - 486 expense

Othernon-interest 25,570 7,826 551 33,947 19,967 7,003 640 27,610 expense

Totalnon-interest 25,570 8,304 551 34,425 19,967 7,489 640 28,096 expense

Income(loss) 24,071 1,482 (2,318) 23,235 13,667 438 (1,725) 12,380 before tax

Income taxexpense 4,565 286 (396) 4,455 2,173 102 (296) 1,979 (benefit)

Net income $ 19,506 $ 1,196 $ (1,922) $ 18,780 $ 11,494 $ 336 $ (1,429) $ 10,401 (loss)

Six Months Ended June 30, 2021

Six Months Ended June 30, 2020

(Dollars in thousands)

Bank

Investment Management

Parent and Other

Consolidated

Bank

Investment Management

Parent and Other

Consolidated

Income statement data:

Interest income

$

107,547

$

-

$

-

$

107,547

$

115,863

$

-

$

-

$

115,863

Interest expense

23,038

-

2,941

25,979

46,547

-

910

47,457

Net interest income (loss)

84,509

-

(2,941)

81,568

69,316

-

(910)

68,406

Provision for credit losses

320

-

-

320

8,998

-

-

8,998

Net interest income (loss) after provision for credit losses

84,189

-

(2,941)

81,248

60,318

-

(910)

59,408

Non-interest income:

Investment management fees

-

19,009

(558)

18,451

-

15,662

(286)

15,376

Net gain on the sale and call of debt securities

97

-

-

97

71

-

-

71

Other non-interest income

9,915

32

-

9,947

10,866

-

-

10,866

Total non-interest income (loss)

10,012

19,041

(558)

28,495

10,937

15,662

(286)

26,313

Non-interest expense:

Intangible amortization expense

-

956

-

956

-

988

-

988

Other non-interest expense

48,225

15,268

1,254

64,747

41,000

13,630

1,622

56,252

Total non-interest expense

48,225

16,224

1,254

65,703

41,000

14,618

1,622

57,240

Income (loss) before tax

45,976

2,817

(4,753)

44,040

30,255

1,044

(2,818)

28,481

Income tax expense (benefit)

9,294

596

(830)

9,060

5,521

130

(466)

5,185

Net income (loss)

$

36,682

$

2,221

$

(3,923)

$

34,980

$

24,734

$

914

$

(2,352)

$

23,296

Six Months Ended June 30, 2021 Six Months Ended June 30, 2020

(Dollars in Bank Investment Parent Consolidated Bank Investment Parent Consolidatedthousands) Management and Other Management and Other

Incomestatement data:

Interest $ 107,547 $ - $ - $ 107,547 $ 115,863 $ - $ - $ 115,863 income

Interest 23,038 - 2,941 25,979 46,547 - 910 47,457 expense

Net interestincome 84,509 - (2,941) 81,568 69,316 - (910) 68,406 (loss)

Provisionfor credit 320 - - 320 8,998 - - 8,998 losses

Net interestincome(loss) after 84,189 - (2,941) 81,248 60,318 - (910) 59,408 provisionfor creditlosses

Non-interest income:

Investmentmanagement - 19,009 (558) 18,451 - 15,662 (286) 15,376 fees

Net gain onthe sale and 97 - - 97 71 - - 71 call of debtsecurities

Othernon-interest 9,915 32 - 9,947 10,866 - - 10,866 income

Totalnon-interest 10,012 19,041 (558) 28,495 10,937 15,662 (286) 26,313 income(loss)

Non-interest expense:

Intangibleamortization - 956 - 956 - 988 - 988 expense

Othernon-interest 48,225 15,268 1,254 64,747 41,000 13,630 1,622 56,252 expense

Totalnon-interest 48,225 16,224 1,254 65,703 41,000 14,618 1,622 57,240 expense

Income(loss) 45,976 2,817 (4,753) 44,040 30,255 1,044 (2,818) 28,481 before tax

Income taxexpense 9,294 596 (830) 9,060 5,521 130 (466) 5,185 (benefit)

Net income $ 36,682 $ 2,221 $ (3,923) $ 34,980 $ 24,734 $ 914 $ (2,352) $ 23,296 (loss)

TRISTATE CAPITAL HOLDINGS, INC.

EARNINGS PER COMMON SHARE (UNAUDITED)

Three Months Ended

Years Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands, except per share data)

2021

2021

2020

2021

2020

Basic earnings per common share:

Net income

$

18,780

$

16,200

$

10,401

$

34,980

$

23,296

Less: Preferred dividends on Series A and Series B

1,962

1,962

1,962

3,924

3,924

Less: Preferred dividends on Series C

1,115

1,097

-

2,212

-

Net income available to common shareholders

$

15,703

$

13,141

$

8,439

$

28,844

$

19,372

Allocation of net income available:

Common shareholders

$

13,272

$

11,127

$

8,439

$

24,375

$

19,372

Series C convertible preferred shareholders

2,040

1,685

-

3,749

-

Warrant shareholders

391

329

-

720

-

Total

$

15,703

$

13,141

$

8,439

$

28,844

$

19,372

Basic weighted average common shares outstanding:

Basic common shares

31,280,481

31,224,474

28,223,085

31,252,632

28,201,837

Series C convertible preferred stock, as-if converted

4,807,272

4,727,272

-

4,807,272

-

Warrants, as-if exercised

922,438

922,438

-

922,438

-

Basic earnings per common share

$

0.42

$

0.36

$

0.30

$

0.78

$

0.69

Diluted earnings per common share:

Income available to common shareholders after allocation

$

13,272

$

11,127

$

8,439

$

24,375

$

19,372

Diluted weighted average common shares outstanding:

Basic common shares

31,280,481

31,224,474

28,223,085

31,252,632

28,201,837

Restricted stock - dilutive

719,504

801,798

221,456

871,255

324,498

Stock options - dilutive

147,773

160,762

83,420

154,395

161,469

Diluted common shares

32,147,758

32,187,034

28,527,961

32,278,282

28,687,804

Diluted earnings per common share

$

0.41

$

0.35

$

0.30

$

0.76

$

0.68

June 30,

March 31,

June 30,

June 30,

June 30,

2021

2021

2020

2021

2020

Anti-dilutive shares:

Restricted stock

10,750

71,810

864,246

12,000

566,498

Stock options

-

-

5,500

-

-

Series C convertible preferred stock, as-if converted

4,807,272

4,727,272

-

4,807,272

-

Warrants, as-if exercised

922,438

922,438

-

922,438

-

Total anti-dilutive shares

5,740,460

5,721,520

869,746

5,741,710

566,498

Earnings per common share ("EPS") is computed using the two-class method, which requires that the Series C convertible preferred stock and warrants to be treated as participating classes of securities in the computation of EPS. In addition, net income is reduced by dividends declared on all series of preferred stock to derive net income available to common shareholders. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security. Net income available to common shareholders is reduced by the percentage of average common shares allocable to Series C convertible preferred holders and warrant holders on an as-if converted basis to arrive at net income allocable to common shareholders. Basic EPS is computed by dividing net income allocable to common shareholders by the weighted average number of its common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and warrants, and the vesting of restricted stock awards granted utilizing the treasury stock method. The Series C convertible preferred stock is excluded from diluted weighted average common shares outstanding because the payment of the dividend is considered in the net income allocable to common shareholders for the calculation of basic EPS.

TRISTATE CAPITAL HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES

The information set forth above contains certain financial information determined by methods other than in accordance with GAAP. These non-GAAP financial measures are "tangible common equity," "tangible book value per common share," "tangible assets," "tangible assets excluding private banking loans," tangible common equity ratio," "tangible common equity ratio excluding private banking loans," "EBITDA," "total revenue," "pre-tax, pre-provision net revenue" and "efficiency ratio." These non-GAAP financial measures are supplemental measures that we believe provide management and our investors with a more detailed understanding of our performance, although these measures are not necessarily comparable to similar measures that may be presented by other companies. These disclosures should not be viewed as a substitute for financial measures in accordance with GAAP. The non-GAAP financial measures presented herein are calculated as follows:

"Tangible common equity" is defined as common shareholders' equity reduced by intangible assets, including goodwill. We believe this measure is important to management and investors so that they can better understand and assess changes from period to period in common shareholders' equity exclusive of changes in intangible assets associated with prior acquisitions. Intangible assets are created when we buy businesses that add relationships and revenue to our Company. Intangible assets have the effect of increasing both equity and assets, while not increasing our tangible equity or tangible assets.

"Tangible book value per common share" is defined as common shareholders' equity reduced by intangible assets, including goodwill, divided by common shares outstanding. We believe this measure is important to many investors who are interested in changes from period to period in book value per common share exclusive of changes in intangible assets associated with prior acquisitions.

"Tangible assets" is defined as total assets reduced by intangible assets, including goodwill. We believe this measure is important to many investors who are interested in changes from period to period in total assets exclusive of changes in intangible assets.

"Tangible assets excluding private banking loans" is defined as total assets reduced by intangible assets, including goodwill, and private banking loans. We believe this measure is important to many investors who are interested in changes from period to period in total assets exclusive of changes in intangible assets and private banking loans.

"Tangible common equity ratio" is defined as (i) common shareholders' equity reduced by intangible assets, including goodwill, divided by (ii) total assets reduced by intangible assets, including goodwill. We believe this measure is important to many investors who are interested in changes from period to period in the ratio of common shareholders' equity to total assets exclusive of changes in intangible assets.

"Tangible common equity ratio excluding private banking loans" is defined as (i) common shareholders' equity reduced by intangible assets, including goodwill, divided by (ii) total assets reduced by intangible assets, including goodwill, and private banking loans. We believe this measure is important to many investors who are interested in changes from period to period in the ratio of common shareholders' equity to total assets exclusive of changes in intangible assets and private banking loans.

"EBITDA" is defined as net income before interest expense, income tax expense, depreciation expense and intangible amortization expense. We use EBITDA particularly to assess the strength of our investment management business. We believe this measure is important because it allows management and investors to better assess our investment management performance in relation to our core operating earnings by excluding certain non-cash items and the volatility that is associated with certain discrete items that are unrelated to our core business.

"Total revenue" is defined as net interest income and total non-interest income, excluding gains and losses on the sale and call of debt securities. We believe adjustments made to our operating revenue allow management and investors to better assess our core operating revenue by removing the volatility that is associated with certain items that are unrelated to our core business.

"Pre-tax, pre-provision net revenue" is defined as net interest income and non-interest income, excluding gains and losses on the sale and call of debt securities and total non-interest expense. We believe this measure is important because it allows management and investors to better assess our performance in relation to our core operating revenue, excluding the volatility that is associated with provision for loan and lease losses and changes in our tax rates and other items that are unrelated to our core business.

"Efficiency ratio" is defined as total non-interest expense divided by our total revenue. We believe this measure allows management and investors to better assess our operating expenses in relation to our core operating revenue, particularly at the Bank.

TRISTATE CAPITAL HOLDINGS, INC.

EARNINGS PER COMMON SHARE (UNAUDITED)

Three Months Ended Years Ended

June 30, March 31, June 30, June 30, June 30,

(Dollars inthousands, 2021 2021 2020 2021 2020except pershare data)



Basicearnings per common share:

Net income $ 18,780 $ 16,200 $ 10,401 $ 34,980 $ 23,296

Less:Preferreddividends on 1,962 1,962 1,962 3,924 3,924 Series A andSeries B

Less:Preferred 1,115 1,097 - 2,212 - dividends onSeries C

Net incomeavailable to $ 15,703 $ 13,141 $ 8,439 $ 28,844 $ 19,372 commonshareholders



Allocation ofnet income available:

Common $ 13,272 $ 11,127 $ 8,439 $ 24,375 $ 19,372 shareholders

Series Cconvertible 2,040 1,685 - 3,749 - preferredshareholders

Warrant 391 329 - 720 - shareholders

Total $ 15,703 $ 13,141 $ 8,439 $ 28,844 $ 19,372



Basicweightedaverage common sharesoutstanding:

Basic common 31,280,481 31,224,474 28,223,085 31,252,632 28,201,837 shares

Series Cconvertiblepreferred 4,807,272 4,727,272 - 4,807,272 - stock, as-ifconverted

Warrants,as-if 922,438 922,438 - 922,438 - exercised



Basicearnings per $ 0.42 $ 0.36 $ 0.30 $ 0.78 $ 0.69 common share



Dilutedearnings per common share:

Incomeavailable tocommon $ 13,272 $ 11,127 $ 8,439 $ 24,375 $ 19,372 shareholdersafterallocation



Dilutedweightedaverage common sharesoutstanding:

Basic common 31,280,481 31,224,474 28,223,085 31,252,632 28,201,837 shares

Restrictedstock - 719,504 801,798 221,456 871,255 324,498 dilutive

Stock options 147,773 160,762 83,420 154,395 161,469 - dilutive

Diluted 32,147,758 32,187,034 28,527,961 32,278,282 28,687,804 common shares



Dilutedearnings per $ 0.41 $ 0.35 $ 0.30 $ 0.76 $ 0.68 common share



June 30, March 31, June 30, June 30, June 30,

2021 2021 2020 2021 2020

Anti-dilutive shares:

Restricted 10,750 71,810 864,246 12,000 566,498 stock

Stock options - - 5,500 - -

Series Cconvertiblepreferred 4,807,272 4,727,272 - 4,807,272 - stock, as-ifconverted

Warrants,as-if 922,438 922,438 - 922,438 - exercised

Totalanti-dilutive 5,740,460 5,721,520 869,746 5,741,710 566,498 shares^

Earnings per common share ("EPS") is computed using the two-class method, which requires that the Series C convertible preferred stock and warrants to be treated as participating classes of securities in the computation of EPS. In addition, net income is reduced by dividends declared on all series of preferred stock to derive net income available to common shareholders. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security. Net income available to common shareholders is reduced by the percentage of average common shares allocable to Series C convertible preferred holders and warrant holders on an as-if converted basis to arrive at net income allocable to common shareholders. Basic EPS is computed by dividing net income allocable to common shareholders by the weighted average number of its common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and warrants, and the vesting of restricted stock awards granted utilizing the treasury stock method. The Series C convertible preferred stock is excluded from diluted weighted average common shares outstanding because the payment of the dividend is considered in the net income allocable to common shareholders for the calculation of basic EPS.

TRISTATE CAPITAL HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES

The information set forth above contains certain financial information determined by methods other than in accordance with GAAP. These non-GAAP financial measures are "tangible common equity," "tangible book value per common share," "tangible assets," "tangible assets excluding private banking loans," tangible common equity ratio," "tangible common equity ratio excluding private banking loans," "EBITDA," "total revenue," "pre-tax, pre-provision net revenue" and "efficiency ratio." These non-GAAP financial measures are supplemental measures that we believe provide management and our investors with a more detailed understanding of our performance, although these measures are not necessarily comparable to similar measures that may be presented by other companies. These disclosures should not be viewed as a substitute for financial measures in accordance with GAAP. The non-GAAP financial measures presented herein are calculated as follows:

"Tangible common equity" is defined as common shareholders' equity reduced by intangible assets, including goodwill. We believe this measure is important to management and investors so that they can better understand and assess changes from period to period in common shareholders' equity exclusive of changes in intangible assets associated with prior acquisitions. Intangible assets are created when we buy businesses that add relationships and revenue to our Company. Intangible assets have the effect of increasing both equity and assets, while not increasing our tangible equity or tangible assets.

"Tangible book value per common share" is defined as common shareholders' equity reduced by intangible assets, including goodwill, divided by common shares outstanding. We believe this measure is important to many investors who are interested in changes from period to period in book value per common share exclusive of changes in intangible assets associated with prior acquisitions.

"Tangible assets" is defined as total assets reduced by intangible assets, including goodwill. We believe this measure is important to many investors who are interested in changes from period to period in total assets exclusive of changes in intangible assets.

"Tangible assets excluding private banking loans" is defined as total assets reduced by intangible assets, including goodwill, and private banking loans. We believe this measure is important to many investors who are interested in changes from period to period in total assets exclusive of changes in intangible assets and private banking loans.

"Tangible common equity ratio" is defined as (i) common shareholders' equity reduced by intangible assets, including goodwill, divided by (ii) total assets reduced by intangible assets, including goodwill. We believe this measure is important to many investors who are interested in changes from period to period in the ratio of common shareholders' equity to total assets exclusive of changes in intangible assets.

"Tangible common equity ratio excluding private banking loans" is defined as (i) common shareholders' equity reduced by intangible assets, including goodwill, divided by (ii) total assets reduced by intangible assets, including goodwill, and private banking loans. We believe this measure is important to many investors who are interested in changes from period to period in the ratio of common shareholders' equity to total assets exclusive of changes in intangible assets and private banking loans.

"EBITDA" is defined as net income before interest expense, income tax expense, depreciation expense and intangible amortization expense. We use EBITDA particularly to assess the strength of our investment management business. We believe this measure is important because it allows management and investors to better assess our investment management performance in relation to our core operating earnings by excluding certain non-cash items and the volatility that is associated with certain discrete items that are unrelated to our core business.

"Total revenue" is defined as net interest income and total non-interest income, excluding gains and losses on the sale and call of debt securities. We believe adjustments made to our operating revenue allow management and investors to better assess our core operating revenue by removing the volatility that is associated with certain items that are unrelated to our core business.

"Pre-tax, pre-provision net revenue" is defined as net interest income and non-interest income, excluding gains and losses on the sale and call of debt securities and total non-interest expense. We believe this measure is important because it allows management and investors to better assess our performance in relation to our core operating revenue, excluding the volatility that is associated with provision for loan and lease losses and changes in our tax rates and other items that are unrelated to our core business.

"Efficiency ratio" is defined as total non-interest expense divided by our total revenue. We believe this measure allows management and investors to better assess our operating expenses in relation to our core operating revenue, particularly at the Bank.

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)



June 30, March 31, June 30,

(Dollars in thousands, except per share 2021 2021 2020data)

Tangible common equity and tangible book value per common share:

Common shareholders' equity $ 615,225 $ 596,043 $ 516,752

Less: goodwill and intangible assets 62,955 63,433 64,867

Tangible common equity (numerator) $ 552,270 $ 532,610 $ 451,885

Common shares outstanding (denominator) 33,176,934 33,160,605 29,851,550

Tangible book value per common share $ 16.65 $ 16.06 $ 15.14

(Dollars in thousands)

June 30,

March 31,

June 30,

2021

2021

2020

Tangible common equity ratio excluding private banking channel loans:

Common shareholders' equity

$

615,225

$

596,043

$

516,752

Less: goodwill and intangible assets

62,955

63,433

64,867

Tangible common equity (numerator)

$

552,270

$

532,610

$

451,885

Total assets

11,541,172

10,565,150

9,129,841

Less: goodwill and intangible assets

62,955

63,433

64,867

Tangible assets

$

11,478,217

$

10,501,717

$

9,064,974

Tangible common equity ratio

4.81

%

5.07

%

4.98

%

Less: private banking loans

5,713,562

5,053,621

4,063,116

Tangible assets excluding private banking loans (denominator)

$

5,764,655

$

5,448,096

$

5,001,858

Tangible common equity ratio excluding private banking loans

9.58

%

9.78

%

9.03

%

June 30, March 31, June 30,(Dollars in thousands) 2021 2021 2020

Tangible common equity ratioexcluding private banking channel loans:

Common shareholders' equity $ 615,225 $ 596,043 $ 516,752

Less: goodwill and intangible 62,955 63,433 64,867 assets

Tangible common equity (numerator) $ 552,270 $ 532,610 $ 451,885

Total assets 11,541,172 10,565,150 9,129,841

Less: goodwill and intangible 62,955 63,433 64,867 assets

Tangible assets $ 11,478,217 $ 10,501,717 $ 9,064,974

Tangible common equity ratio 4.81 % 5.07 % 4.98 %

Less: private banking loans 5,713,562 5,053,621 4,063,116

Tangible assets excluding private $ 5,764,655 $ 5,448,096 $ 5,001,858 banking loans (denominator)

Tangible common equity ratio 9.58 % 9.78 % 9.03 %excluding private banking loans

INVESTMENT MANAGEMENT SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands)

2021

2021

2020

2021

2020

Investment Management EBITDA:

Net income

$

1,196

$

1,025

$

336

$

2,221

$

914

Interest expense

-

-

-

-

-

Income tax expense

286

310

102

596

130

Depreciation expense

103

103

107

206

216

Intangible amortization expense

478

478

486

956

988

EBITDA

$

2,063

$

1,916

$

1,031

$

3,979

$

2,248

INVESTMENT MANAGEMENT SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30, June 30,

(Dollars in thousands) 2021 2021 2020 2021 2020

Investment Management EBITDA:

Net income $ 1,196 $ 1,025 $ 336 $ 2,221 $ 914

Interest expense - - - - -

Income tax expense 286 310 102 596 130

Depreciation expense 103 103 107 206 216

Intangible amortization 478 478 486 956 988 expense

EBITDA $ 2,063 $ 1,916 $ 1,031 $ 3,979 $ 2,248

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands)

2021

2021

2020

2021

2020

Total revenue and pre-tax, pre-provision net revenue:

Net interest income

$

42,912

$

38,656

$

33,484

$

81,568

$

68,406

Total non-interest income

14,844

13,651

12,997

28,495

26,313

Less: net gain (loss) on the sale and call of debt securities

98

(1)

14

97

71

Total revenue

$

57,658

$

52,308

$

46,467

$

109,966

$

94,648

Less: total non-interest expense

34,425

31,278

28,096

65,703

57,240

Pre-tax, pre-provision net revenue

$

23,233

$

21,030

$

18,371

$

44,263

$

37,408

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30, June 30,

(Dollars in 2021 2021 2020 2021 2020thousands)

Total revenue andpre-tax, pre-provision netrevenue:

Net interest income $ 42,912 $ 38,656 $ 33,484 $ 81,568 $ 68,406

Total non-interest 14,844 13,651 12,997 28,495 26,313 income

Less: net gain (loss)on the sale and call 98 (1) 14 97 71 of debt securities

Total revenue $ 57,658 $ 52,308 $ 46,467 $ 109,966 $ 94,648

Less: total 34,425 31,278 28,096 65,703 57,240 non-interest expense

Pre-tax,pre-provision net $ 23,233 $ 21,030 $ 18,371 $ 44,263 $ 37,408 revenue

BANK SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands)

2021

2021

2020

2021

2020

Bank total revenue:

Net interest income

$

44,356

$

40,153

$

34,410

$

84,509

$

69,316

Total non-interest income

5,381

4,630

5,229

10,012

10,937

Less: net gain (loss) on the sale and call of debt securities

98

(1)

14

97

71

Bank total revenue

$

49,639

$

44,784

$

39,625

$

94,424

$

80,182

Bank efficiency ratio:

Total non-interest expense (numerator)

$

25,570

$

22,655

$

19,967

$

48,225

$

41,000

Bank total revenue (denominator)

$

49,639

$

44,784

$

39,625

$

94,424

$

80,182

Bank efficiency ratio

51.51

%

50.59

%

50.39

%

51.07

%

51.13

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005909/en/

CONTACT: MEDIA Hornercom Jack Horner 267-932-8760, ext. 302 412-600-2295 (mobile) jack@hornercom.com INVESTOR RELATIONS Lambert Jeff Schoenborn and Kate Croft 888-609-8351 TSC@lambert.com