Business Wire | Jan 26, 2022 04:05PM EST

Tristate Capital Reports EPS of $1.71 for Full Year 2021 and $0.52 for the Fourth Quarter on Double-Digit Annual Organic Growth in AUM, Total Assets, Revenue and Net Income to New Record Levels

Jan. 26, 2022

PITTSBURGH--(BUSINESS WIRE)--Jan. 26, 2022--TriState Capital Holdings, Inc. (Nasdaq: TSC) ("TriState Capital" or the "company") reported fourth quarter and full year 2021 financial results including double-digit organic growth in assets under management (AUM), loans, deposits, revenue and earnings.

The parent company of TriState Capital Bank and Chartwell Investment Partners reported net income available to common shareholders of $65.7 million, or $1.71 per diluted share, for 2021 and $19.9 million, or $0.52, per diluted share in the fourth quarter, including the $0.06 impact of expenses associated with its previously announced agreement to be acquired by Raymond James Financial, Inc. ("Raymond James"). Net income available to common stockholders was $37.4 million or $1.30 per diluted share in 2020, $10.6 million or $0.37 per diluted share in the fourth quarter of 2020, and $16.9 million or $0.44 per diluted share in the third quarter of 2021.

"TriState Capital's unwavering support of our talented people as they meet the needs of our clients in extraordinary times, while creating long-term value for our common stockholders, resulted in a spectacular year for this company and each of our asset management, private banking and commercial banking businesses," Chairman James F. Getz said. "Our solid performance in 2021 exemplified TriState Capital's ability to consistently execute against our long-term strategy for achieving responsible growth in a range of economic and rate environments. Since 2011, TriState Capital has delivered average annual growth of 23% in loans, 17% in revenue and 20% in earnings per share, all while diversifying our sources of fee income, launching a best-in-class treasury and liquidity management offering, building exceptional national financial services distribution capabilities, enhancing operating leverage, and implementing the infrastructure to accommodate the continued organic expansion of our businesses."

Mr. Getz added that the company also continues to expect to close its transaction with Raymond James in 2022, subject to customary conditions including TriState Capital shareholder and regulatory approvals. He noted, "TriState Capital is aligned with a strong partner that appreciates the value of the franchises and personnel we have in place today, as well as our ability to put its capital, low-cost deposits and other resources to work to support the continued success of TriState Capital Bank and Chartwell Investment Partners."

FULL YEAR AND FOURTH QUARTER 2021 HIGHLIGHTS

* Raised $125 million in capital to fund responsible growth in 2022, a senior unsecured fixed-to-floating rate note that matures December 15, 2024. The note was issued to Raymond James and bears interest at a fixed annual rate of 2.25% until December 15, 2022. * Chartwell fourth quarter revenue increased by 1.4% from the linked quarter and 11.7% from the prior year period, as positive net inflows, especially new and existing fixed income strategies, contributed to assets under management growth to a record $11.84 billion. * Non-interest income grew to $15.9 million in the fourth quarter, increasing 13.7% from the prior year period and 11.9% from the linked quarter. * Net interest income ("NII") hit a record $51.1 million in the fourth quarter, growing 41.8% from the prior period and 9.6% from the linked quarter, as net interest margin ("NIM") expanded to 1.68% in the last three months of the year. * Commercial loans grew 13.0% from December 31, 2020 and 5.8% during the quarter to $3.88 billion at period end. * Private banking loans grew 43.2% from December 31, 2020 and 11.0% during the quarter to $6.89 billion at period end, as loans primarily collateralized by marketable securities represented 64.0% of total loans at the end of 2021. * Treasury management deposit accounts grew 96.1% from December 31, 2020 and 16.6% during the quarter to $2.86 billion at period end.

"The results we achieved in 2021, and our expectations for 2022 and beyond, are a direct result of our high-performance team, our ability across all three of our premier platforms to deliver holistic yet bespoke solutions for our focused client channels, our commitment to investing for our future success, and our drive to deliver exceptional risk adjusted returns over time," President and Chief Executive Officer Brian S. Fetterolf said. "TriState Capital's ability to generate significant growth in net interest income and net interest margin in 2021, while favoring a long-term asset-sensitive approach, highlights the strength of our unique business model, relationships and ability to execute, as well as how a rising rate environment can serve as another catalyst for continued earnings growth going forward."

REVENUE GROWTH

NII grew to a record $51.1 million in the fourth quarter of 2021, increasing 41.8% from $36.1 million in the prior year period and 9.6% from $46.7 million in the linked quarter. NIM expanded for the fifth consecutive quarter to 1.68% for the last three months of 2021, compared to 1.53% in the prior year period and 1.65% in the linked quarter.

Non-interest income grew to $15.9 million in the fourth quarter of 2021, increasing 13.7% from $14.0 million in the prior year period and 11.9% from $14.2 million in the linked quarter. Chartwell investment management fees grew to $9.6 million in the fourth quarter of 2021, compared to $8.6 million in the prior year period and $9.4 million in the linked quarter. Fees from the bank's back-to-back, loan-level interest rate swap offering for clients totaled $4.4 million during the fourth quarter of 2021, compared to $4.1 million in the prior year period and $3.1 million in the linked quarter. In addition, treasury management fees have continued to grow over time, while TriState Capital maintains its priority of growing deposit balances in services accounts through effective and predictable fee structures.

NII and non-interest income, excluding net gains and losses on the sale and call of debt securities, combined to generate record total revenue of $66.9 million for the fourth quarter of 2021, which grew 34.0% from $49.9 million in the prior year period and 10.0% from $60.9 million in the linked quarter. Full year 2021 total revenue was a record $237.8 million, up 24.4% from $191.2 million in 2020. 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 its diverse fee-generating businesses. TriState Capital's non-interest income represented 23.6% of total revenue for the fourth quarter of 2021.

EXPENSES REFLECT CONTINUED INVESTMENTS

TriState Capital continues to invest in talent, technology, product, and risk and compliance management to support the continued responsible growth of its businesses, providing a premier client experience as it continues to scale its efficient branchless operating model. Fourth quarter 2021 non-interest expense was $42.8 million, including $2.7 million in expenses incurred in connection with the pending transaction with Raymond James, compared to $34.4 million in the prior year period and $38.0 million in the linked quarter. New hires and bonus accruals reflecting the company's record annual revenue and other key financial metrics were primary factors in compensation and benefits expense increasing to $22.0 million in the fourth quarter of 2021, from $18.7 million in the prior year period and $21.7 million in the linked quarter. Non-interest expense also included investment tax credit expense of $2.8 million and $1.7 million in the fourth quarters of 2021 and 2020, respectively.

TriState Capital Bank's efficiency ratio decreased to 51.10% in the fourth quarter of 2021, from 60.95% in the prior year period and 54.79% in the linked quarter. The efficiency ratio, a widely used industry non-GAAP financial metric, is utilized to provide a greater understanding of a bank's level of non-interest expense as a percentage of total revenue. Annualized non-interest expense represented 1.36% of average assets in the fourth quarter of 2021, compared to 1.40% in the same period the prior year and 1.30% in the linked quarter.

Pre-tax, pre-provision net revenue grew to $24.2 million in the fourth quarter of 2021, increasing 55.8% from $15.5 million in the prior year period and 5.7% from $22.9 million in the linked quarter. Pre-tax, pre-provision net revenue is a non-GAAP financial metric representing net interest income and non-interest income, and excluding gains and losses on the sale and call of debt securities and total non-interest expense.

Pre-tax income was $23.8 million in the fourth quarter of 2021, increasing 87.8% from $12.7 million in the same period a year prior and 3.9% from $22.9 million in the linked quarter.

TriState Capital's 2021 effective tax rate was 3.0% for the fourth quarter and 13.9% for the full year. The company's effective tax rate is impacted by certain factors including the number, timing and size of tax credit investments.

Net income available to common shareholders, earnings per share and weighted average diluted shares in the fourth 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 $21.0 million and $521.0 million for the three and 12 months ending December 31, 2021, respectively, reflecting growth in existing strategies and new product developed in 2021. In addition, Chartwell's new business pipeline currently has in excess of $353 million in commitments from institutional investors.

Chartwell's new business and new flows from existing accounts of $319 million and market appreciation of $369 million more than offset outflows of $298 million in the fourth quarter of 2021. Chartwell assets under management grew to a record $11.84 billion at December 31, 2021, compared to $10.26 billion one year prior and $11.45 billion at September 30, 2021.

Chartwell's annual run rate revenue grew to $40.0 million at December 31, 2021, increasing 2.6% from $39.0 million at September 30, 2021 and 12.4% from $35.6 million at December 31, 2020. Chartwell's weighted average fee rate was 0.34% at December 31, 2021.

ORGANIC LENDING FRANCHISE GROWTH

TriState Capital's client engagement and distribution capabilities continued to drive organic loan growth 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 $10.21 billion in the fourth quarter of 2021, growing 30.0% from $7.86 billion in the prior year period and 8.3% from $9.43 billion in the linked quarter. Loans at December 31, 2021 totaled $10.76 billion, growing $2.53 billion, or 30.7%, from one year prior and $894.3 million, or 9.1%, from September 30, 2021.

TriState Capital continued to fortify its position as the nation's leading independent provider of marketable securities-based loans for clients of independent investment advisory firms, trust companies, broker-dealers, regional securities firms, family offices, and other financial intermediaries that do not offer banking services themselves. Private banking loans totaled a record $6.89 billion at December 31, 2021, increasing $2.08 billion, or 43.2%, from one year prior and $682.5 million, or 11.0%, 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 $3.88 billion at December 31, 2021, increasing $447.2 million, or 13.0%, from one year prior and $211.8 million, or 5.8%, from the end of the linked quarter.

C&I loans grew to $1.51 billion at December 31, 2021, increasing by $239.3 million, or 18.8%, from one year prior and $172.6 million, or 12.9%, from the end of the linked quarter, led by utilization of capital call lines of credit and other fund finance offerings.

CRE loans grew to $2.36 billion at December 31, 2021, increasing $207.9 million, or 9.6%, from one year prior and $39.2 million, or 1.7%, from the end of the linked quarter.

STRATEGIC DEPOSIT AND LIQUIDITY MANAGEMENT FRANCHISE EXPANSION

TriState Capital continues to deliver growth in 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 $11.04 billion in the fourth quarter of 2021, growing 30.8% from $8.44 billion in the prior year period and 7.7% from $10.25 billion in the linked quarter. Deposits at December 31, 2021 totaled $11.50 billion, growing by an annual record $3.02 billion, or 35.5%, from one year prior and $748.2 million, or 7.0%, from September 30, 2021.

Treasury management deposit accounts grew to $2.86 billion at December 31, 2021, increasing $1.4 billion, or 96.1%, from one year prior and $406.3 million, or 16.6%, from September 30, 2021.

TriState Capital's loan-to-deposit ratio was 93.56% at December 31, 2021, compared to 97.04% at December 31, 2020 and 91.75% at September 30, 2021, as TriState Capital managed deposit balances in line with loan activity in the quarter in a continued favorable liquidity environment.

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.

Approximately 60% of TriState Capital's non-fixed rate deposits use the Effective Federal 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 0.45% during the fourth quarter of 2021, compared to 0.67% in the same period last year and 0.49% in the linked quarter. The total cost of deposits averaged 0.37% during the fourth quarter of 2021, compared to 0.57% in the same period last year and 0.41% in the linked quarter.

At December 31, 2021, 95% of the company's loans were floating rate and indexed to 30-day LIBOR, the Prime Rate, or another benchmark rate such as SOFR. TriState Capital continued to constructively use interest rate floors on existing and new variable rate loans throughout the fourth quarter of 2021.

The yield on total loans averaged 2.30% during the fourth quarter of 2021, compared to 2.44% in the prior year period and 2.32% in the linked quarter. Loan yields resulted primarily from trends in 30-day LIBOR in 2021, as well as higher rates of growth in private bank loans relative to commercial loans. Loan yield movement was more than offset by a continued reduction in deposit costs.

Investment securities totaled $1.41 billion at December 31, 2021, increasing 66.8% from one year prior and decreasing 1.7% from the end of the linked quarter.

NIM expanded for the fifth consecutive quarter to 1.68% for the fourth quarter of 2021, up 15 basis points from the same period last year and up 3 basis points from the linked quarter.

ASSET QUALITY

TriState Capital maintained strong asset quality metrics in the fourth 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 64.0% of total loans at December 31, 2021, while CRE and C&I loans comprised 21.9% and 14.1% of total loans, respectively.

The allowance for credit losses on loans and leases ("ACL") totaled $28.6 million at the end of 2021, compared to $34.6 million at December 31, 2020 and $32.4 million at September 30, 2021. ACL on commercial loans represented 0.69% of commercial loans at period end, excluding private banking loans primarily collateralized by liquid, marketable securities, that do not require a reserve, compared to 0.95% at December 31, 2020 and 0.82% at September 30, 2021. As a percentage of total loans, ACL was 0.27% at December 31, 2021, 0.42% at December 31, 2020 and 0.33% at September 30, 2021.

The company recorded net charge-offs of $4.2 million in the fourth quarter of 2021, net recoveries of $109,000 in the year-ago quarter, and net charge-offs of $238,000 in the linked quarter.

Non-performing assets ("NPAs") were $6.3 million, or 0.05% of total assets, at December 31, 2021, compared to $12.4 million, or 0.13%, at December 31, 2020 and $10.8 million, or 0.09%, at September 30, 2021. Non-performing loans ("NPLs") were $4.3 million, or 0.04% of total loans, at December 31, 2021, compared to $9.7 million, or 0.12%, at December 31, 2020 and $8.6 million, or 0.09%, at September 30, 2021.

Total adverse-rated credits, including NPLs, were $36.9 million, or 0.34% of total loans, at December 31, 2021, compared to $51.3 million, or 0.62%, at December 31, 2020 and $43.5 million, or 0.44%, at September 30, 2021.

TriState Capital's provision for credit loss was $488,000 for the fourth quarter of 2021, $3.0 million for the fourth quarter of 2020 and de minimis for the linked quarter.

CAPITAL STRENGTH AND EFFICIENCY

The company's strong balance sheet included $1.86 billion in cash, equivalents and securities at December 31, 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 67.24% of total assets at the end of the fourth quarter of 2021.

As of December 31, 2021, estimated regulatory capital ratios for TriState Capital Holdings were 13.43% for total risk-based capital, 11.64% for tier 1 risk-based capital, 8.96% for common equity tier 1 risk-based capital, and 6.36% for tier 1 leverage. For TriState Capital Bank, the estimated capital ratios were 14.60% for total risk-based capital, 14.22% for tier 1 risk-based capital, 14.22% for common equity tier 1 risk-based capital, and 7.76% for tier 1 leverage.

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 $12.9 billion in assets as of December 31, 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 $11.8 billion in assets under management as of December 31, 2021, and serves institutional clients and TriState Capital's financial intermediary network. For more information, please visit http://investors.tristatecapitalbank.com.

In light of the pending acquisition by Raymond James, the company will not hold a quarterly investor conference call and webcast. For more information related to the acquisition, please refer to the company's and Raymond James' filings with the Securities and Exchange Commission.

IMPORTANT INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT

Raymond James has filed a Registration Statement on Form S-4 (File No. 333-261647) with the SEC to register the shares of Raymond James's common stock and preferred stock that will be issued to TriState Capital's shareholders in connection with the transaction. The registration statement will include a proxy statement of TriState Capital that also constitutes a prospectus of Raymond James. When the registration statement becomes effective, the definitive proxy statement/prospectus will be sent to the shareholders of TriState Capital in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE (AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC by Raymond James or TriState Capital through the website maintained by the SEC at www.sec.gov or by contacting the investor relations department of Raymond James or TriState Capital at:

Raymond James TriState Capital Holdings, Inc.

880 Carillon Parkway 301 Grant Street, Suite 2700 Saint Petersburg, FL 33716 Pittsburgh, PA 15219

Attention: Investor Relations Attention: Investor Relations

Before making any voting or investment decision, investors and security holders of Raymond James and TriState Capital are urged to read carefully the entire registration statement and definitive proxy statement/prospectus when they become available, including any amendments thereto, because they will contain important information about the proposed transaction. Free copies of these documents may be obtained as described above.

PARTICIPANTS IN THE SOLICITATION

Raymond James, TriState Capital, and certain of their respective directors and executive officers may be deemed participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Raymond James can be found in Raymond James's definitive proxy statement in connection with its 2021 annual meeting of shareholders, as filed with the SEC on January 8, 2021, and other documents subsequently filed by Raymond James with the SEC. Information about the directors and executive officers of TriState Capital can be found in TriState Capital's definitive proxy statement in connection with its 2021 annual meeting of shareholders, as filed with the SEC on April 7, 2021, and other documents subsequently filed by TriState Capital with the SEC. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the definitive proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the transaction when they become available.

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; * risks associated with the acquisition of our company by Raymond James, including risks related to the failure of our company to satisfy conditions of the closing of the acquisition, which could result in the acquisition not closing, which could have a material adverse impact on the value of our stock; * TriState Capital's ability to prudently manage its growth and execute its strategy; * 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 such as SOFR on the value of loans and other financial instruments 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, 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, 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

December 31, September 30, December 31,

(Dollars in thousands) 2021 2021 2020

Cash and cash equivalents $ 452,016 $ 469,932 $ 435,442

Total investment securities 1,405,678 1,429,613 842,545

Loans and leases held-for-investment 10,763,324 9,869,011 8,237,418

Allowance for credit losses on loans (28,563 ) (32,363 ) (34,630 )and leases

Loans and leases held-for-investment, 10,734,761 9,836,648 8,202,788 net

Goodwill and other intangibles, net 62,000 62,478 63,911

Other assets 350,397 360,197 352,130

Total assets $ 13,004,852 $ 12,158,868 $ 9,896,816



Deposits $ 11,504,389 $ 10,756,141 $ 8,489,089

Borrowings, net 470,163 355,654 400,493

Other liabilities 193,578 233,035 250,089

Total liabilities 12,168,130 11,344,830 9,139,671

Preferred stock 181,544 180,443 177,143

Common shareholders' equity 655,178 633,595 580,002

Total shareholders' equity 836,722 814,038 757,145

Total liabilities and shareholders' $ 13,004,852 $ 12,158,868 $ 9,896,816 equity

TRISTATE CAPITAL HOLDINGS, INC.

INCOME STATEMENT DATA (UNAUDITED)

Three Months Ended

Years Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(Dollars in thousands)

2021

2021

2020

2021

2020

Interest income:

Loans and leases

$

59,227

$

55,071

$

48,288

$

215,186

$

200,839

Investments

4,669

4,477

2,504

15,529

14,032

Interest-earning deposits

149

157

218

582

2,224

Total interest income

64,045

59,705

51,010

231,297

217,095

Interest expense:

Deposits

10,164

10,480

12,107

41,504

69,202

Borrowings

2,757

2,558

2,839

10,434

9,949

Total interest expense

12,921

13,038

14,946

51,938

79,151

Net interest income

51,124

46,667

36,064

179,359

137,944

Provision for credit losses

488

-

2,972

808

19,400

Net interest income after provision for credit losses

50,636

46,667

33,092

178,551

118,544

Non-interest income:

Investment management fees

9,567

9,436

8,564

37,454

32,035

Service charges on deposits

389

377

309

1,407

1,072

Net gain on the sale and call of debt securities

112

33

133

242

3,948

Swap fees

4,408

3,059

4,095

14,091

16,274

Bank owned life insurance income

620

613

444

2,142

1,742

Commitment and other loan fees

818

740

453

2,448

1,715

Other income (loss)

7

(28

)

5

862

419

Total non-interest income

15,921

14,230

14,003

58,646

57,205

Non-interest expense:

Compensation and employee benefits

22,040

21,701

18,658

84,599

71,197

Premises and equipment expense

1,738

1,520

1,486

5,837

5,875

Professional fees

5,062

2,310

2,026

10,820

6,201

FDIC insurance expense

1,455

1,375

1,920

5,080

9,680

General insurance expense

368

363

308

1,370

1,142

State capital shares tax

694

790

605

2,911

1,720

Travel and entertainment expense

799

755

688

2,634

2,423

Technology and data services

3,758

4,274

3,509

14,819

10,803

Intangible amortization expense

478

477

478

1,911

1,944

Marketing and advertising

1,058

984

708

3,624

2,402

Other operating expenses

5,333

3,459

4,049

12,889

9,716

Total non-interest expense

42,783

38,008

34,435

146,494

123,103

Income before tax

23,774

22,889

12,660

90,703

52,646

Income tax expense

710

2,873

50

12,643

7,412

Net income

$

23,064

$

20,016

$

12,610

$

78,060

$

45,234

Preferred stock dividends

3,115

3,097

1,987

12,348

7,873

Net income available to common shareholders

$

19,949

$

16,919

$

10,623

$

65,712

$

37,361

TRISTATE CAPITAL HOLDINGS, INC.

INCOME STATEMENT DATA (UNAUDITED)

Three Months Ended Years Ended

December September December December December 31, 30, 31, 31, 31,

(Dollars in thousands) 2021 2021 2020 2021 2020

Interest income:

Loans and leases $ 59,227 $ 55,071 $ 48,288 $ 215,186 $ 200,839

Investments 4,669 4,477 2,504 15,529 14,032

Interest-earning deposits 149 157 218 582 2,224

Total interest income 64,045 59,705 51,010 231,297 217,095



Interest expense:

Deposits 10,164 10,480 12,107 41,504 69,202

Borrowings 2,757 2,558 2,839 10,434 9,949

Total interest expense 12,921 13,038 14,946 51,938 79,151

Net interest income 51,124 46,667 36,064 179,359 137,944

Provision for credit losses 488 - 2,972 808 19,400

Net interest income after 50,636 46,667 33,092 178,551 118,544provision for credit losses

Non-interest income:

Investment management fees 9,567 9,436 8,564 37,454 32,035

Service charges on deposits 389 377 309 1,407 1,072

Net gain on the sale and 112 33 133 242 3,948call of debt securities

Swap fees 4,408 3,059 4,095 14,091 16,274

Bank owned life insurance 620 613 444 2,142 1,742income

Commitment and other loan 818 740 453 2,448 1,715fees

Other income (loss) 7 (28 ) 5 862 419

Total non-interest income 15,921 14,230 14,003 58,646 57,205

Non-interest expense:

Compensation and employee 22,040 21,701 18,658 84,599 71,197benefits

Premises and equipment 1,738 1,520 1,486 5,837 5,875expense

Professional fees 5,062 2,310 2,026 10,820 6,201

FDIC insurance expense 1,455 1,375 1,920 5,080 9,680

General insurance expense 368 363 308 1,370 1,142

State capital shares tax 694 790 605 2,911 1,720

Travel and entertainment 799 755 688 2,634 2,423expense

Technology and data services 3,758 4,274 3,509 14,819 10,803

Intangible amortization 478 477 478 1,911 1,944expense

Marketing and advertising 1,058 984 708 3,624 2,402

Other operating expenses 5,333 3,459 4,049 12,889 9,716

Total non-interest expense 42,783 38,008 34,435 146,494 123,103

Income before tax 23,774 22,889 12,660 90,703 52,646

Income tax expense 710 2,873 50 12,643 7,412

Net income $ 23,064 $ 20,016 $ 12,610 $ 78,060 $ 45,234

Preferred stock dividends 3,115 3,097 1,987 12,348 7,873

Net income available to $ 19,949 $ 16,919 $ 10,623 $ 65,712 $ 37,361common shareholders

TRISTATE CAPITAL HOLDINGS, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

Three Months Ended

Years Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(Dollars in thousands, except per share data)

2021

2021

2020

2021

2020

Per share and share data:

Earnings per common share:

Basic

$

0.54

$

0.46

$

0.37

$

1.77

$

1.32

Diluted

$

0.52

$

0.44

$

0.37

$

1.71

$

1.30

Book value per common share

$

19.70

$

19.11

$

17.78

$

19.70

$

17.78

Tangible book value per common share (1)

$

17.83

$

17.23

$

15.82

$

17.83

$

15.82

Common shares outstanding, at end of period

33,263,498

33,154,343

32,620,150

33,263,498

32,620,150

Weighted average common shares outstanding:

Basic

31,396,278

31,357,356

28,378,695

31,315,235

28,267,512

Diluted

32,580,999

32,146,222

28,867,958

32,459,948

28,738,468

Performance ratios:

Return on average assets (2)

0.73

%

0.68

%

0.51

%

0.69

%

0.50

%

Return on average common equity (2)

12.25

%

10.67

%

7.87

%

10.64

%

7.15

%

Net interest margin (2) (3)

1.68

%

1.65

%

1.53

%

1.64

%

1.58

%

Total revenue (1)

$

66,933

$

60,864

$

49,934

$

237,763

$

191,201

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

$

24,150

$

22,856

$

15,498

$

91,269

$

68,098

Bank efficiency ratio (1)

51.10

%

54.79

%

60.95

%

52.03

%

55.57

%

Non-interest expense to average assets (2)

1.36

%

1.30

%

1.40

%

1.30

%

1.35

%

Asset quality:

Non-performing loans

$

4,313

$

8,625

$

9,680

$

4,313

$

9,680

Non-performing assets

$

6,318

$

10,803

$

12,404

$

6,318

$

12,404

Other real estate owned

$

2,005

$

2,178

$

2,724

$

2,005

$

2,724

Non-performing assets to total assets

0.05

%

0.09

%

0.13

%

0.05

%

0.13

%

Non-performing loans to total loans

0.04

%

0.09

%

0.12

%

0.04

%

0.12

%

Allowance for credit losses on loans and leases to loans

0.27

%

0.33

%

0.42

%

0.27

%

0.42

%

Allowance for credit losses on loans and leases to non-performing loans

662.25

%

375.22

%

357.75

%

662.25

%

357.75

%

Net charge-offs (recoveries)

$

4,197

$

238

$

(109

)

$

6,887

$

(279

)

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

0.16

%

0.01

%

(0.01

) %

0.07

%

-

%

Capital ratios: (4)

Tier 1 leverage ratio

6.36

%

6.61

%

7.29

%

6.36

%

7.29

%

Common equity tier 1 risk-based capital ratio

8.96

%

9.01

%

8.99

%

8.96

%

8.99

%

Tier 1 risk-based capital ratio

11.64

%

11.79

%

11.99

%

11.64

%

11.99

%

Total risk-based capital ratio

13.43

%

13.71

%

14.12

%

13.43

%

14.12

%

Bank tier 1 leverage ratio

7.76

%

7.24

%

7.83

%

7.76

%

7.83

%

Bank common equity tier 1 risk-based capital ratio

14.22

%

12.94

%

12.89

%

14.22

%

12.89

%

Bank tier 1 risk-based capital ratio

14.22

%

12.94

%

12.89

%

14.22

%

12.89

%

Bank total risk-based capital ratio

14.60

%

13.38

%

13.41

%

14.60

%

13.41

%

Investment Management Segment:

Assets under management

$

11,844,000

$

11,454,000

$

10,263,000

$

11,844,000

$

10,263,000

EBITDA (1)

$

1,391

$

1,847

$

1,675

$

7,218

$

5,473

TRISTATE CAPITAL HOLDINGS, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

Three Months Ended Years Ended

December 31, September 30, December 31, December 31, December 31,

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

Per share and share data:

Earnings per common share:

Basic $ 0.54 $ 0.46 $ 0.37 $ 1.77 $ 1.32

Diluted $ 0.52 $ 0.44 $ 0.37 $ 1.71 $ 1.30

Book value per $ 19.70 $ 19.11 $ 17.78 $ 19.70 $ 17.78 common share

Tangible bookvalue per $ 17.83 $ 17.23 $ 15.82 $ 17.83 $ 15.82 common share ^(1)

Common sharesoutstanding, 33,263,498 33,154,343 32,620,150 33,263,498 32,620,150 at end ofperiod

Weightedaverage common sharesoutstanding:

Basic 31,396,278 31,357,356 28,378,695 31,315,235 28,267,512

Diluted 32,580,999 32,146,222 28,867,958 32,459,948 28,738,468



Performance ratios:

Return onaverage assets 0.73 % 0.68 % 0.51 % 0.69 % 0.50 %^ (2)

Return onaverage common 12.25 % 10.67 % 7.87 % 10.64 % 7.15 %equity ^(2)

Net interestmargin ^(2) 1.68 % 1.65 % 1.53 % 1.64 % 1.58 %(3)

Total revenue $ 66,933 $ 60,864 $ 49,934 $ 237,763 $ 191,201 ^(1)

Pre-tax,pre-provision $ 24,150 $ 22,856 $ 15,498 $ 91,269 $ 68,098 net revenue ^(1)

Bankefficiency 51.10 % 54.79 % 60.95 % 52.03 % 55.57 %ratio ^(1)

Non-interestexpense to 1.36 % 1.30 % 1.40 % 1.30 % 1.35 %average assets^(2)



Asset quality:

Non-performing $ 4,313 $ 8,625 $ 9,680 $ 4,313 $ 9,680 loans

Non-performing $ 6,318 $ 10,803 $ 12,404 $ 6,318 $ 12,404 assets

Other real $ 2,005 $ 2,178 $ 2,724 $ 2,005 $ 2,724 estate owned

Non-performingassets to 0.05 % 0.09 % 0.13 % 0.05 % 0.13 %total assets

Non-performingloans to total 0.04 % 0.09 % 0.12 % 0.04 % 0.12 %loans

Allowance forcredit losseson loans and 0.27 % 0.33 % 0.42 % 0.27 % 0.42 %leases toloans

Allowance forcredit losseson loans and 662.25 % 375.22 % 357.75 % 662.25 % 357.75 %leases tonon-performingloans

Netcharge-offs $ 4,197 $ 238 $ (109 ) $ 6,887 $ (279 )(recoveries)

Netcharge-offs(recoveries) 0.16 % 0.01 % (0.01 ) 0.07 % - %to average %total loans ^(2)



Capital ratios: ^(4)

Tier 1 6.36 % 6.61 % 7.29 % 6.36 % 7.29 %leverage ratio

Common equitytier 1 8.96 % 9.01 % 8.99 % 8.96 % 8.99 %risk-basedcapital ratio

Tier 1risk-based 11.64 % 11.79 % 11.99 % 11.64 % 11.99 %capital ratio

Totalrisk-based 13.43 % 13.71 % 14.12 % 13.43 % 14.12 %capital ratio

Bank tier 1 7.76 % 7.24 % 7.83 % 7.76 % 7.83 %leverage ratio

Bank commonequity tier 1 14.22 % 12.94 % 12.89 % 14.22 % 12.89 %risk-basedcapital ratio

Bank tier 1risk-based 14.22 % 12.94 % 12.89 % 14.22 % 12.89 %capital ratio

Bank totalrisk-based 14.60 % 13.38 % 13.41 % 14.60 % 13.41 %capital ratio



InvestmentManagement Segment:

Assets under $ 11,844,000 $ 11,454,000 $ 10,263,000 $ 11,844,000 $ 10,263,000 management

EBITDA ^(1) $ 1,391 $ 1,847 $ 1,675 $ 7,218 $ 5,473

(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(1) 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.

^ 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

December 31, 2021

September 30, 2021

December 31, 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

$

423,351

$

147

0.14

%

$

429,806

$

155

0.14

%

$

671,922

$

216

0.13

%

Federal funds sold

9,896

2

0.08

%

12,629

2

0.06

%

8,236

2

0.10

%

Debt securities available-for-sale

575,965

2,520

1.74

%

415,855

1,664

1.59

%

578,021

676

0.47

%

Debt securities held-to-maturity, net

839,798

2,011

0.95

%

943,733

2,686

1.13

%

227,465

1,633

2.86

%

Debt securities trading

1,895

3

0.63

%

-

-

-

%

2,126

4

0.75

%

Equity securities

4,985

-

-

%

163

-

-

%

-

-

-

%

FHLB stock

11,802

140

4.71

%

11,932

137

4.56

%

13,284

199

5.96

%

Total loans and leases

10,213,833

59,227

2.30

%

9,427,370

55,071

2.32

%

7,858,368

48,288

2.44

%

Total interest-earning assets

12,081,525

64,050

2.10

%

11,241,488

59,715

2.11

%

9,359,422

51,018

2.17

%

Other assets

381,218

382,763

405,461

Total assets

$

12,462,743

$

11,624,251

$

9,764,883

Liabilities and Shareholders' Equity

Interest-bearing deposits:

Interest-bearing checking accounts

$

4,195,332

$

3,416

0.32

%

$

3,946,028

$

3,682

0.37

%

$

2,949,908

$

3,280

0.44

%

Money market deposit accounts

5,385,794

5,905

0.43

%

4,879,971

5,794

0.47

%

4,027,298

6,120

0.60

%

Certificates of deposit

842,758

843

0.40

%

899,855

1,004

0.44

%

1,003,219

2,707

1.07

%

Borrowings:

FHLB borrowings

250,000

1,092

1.73

%

250,815

1,102

1.74

%

300,000

1,384

1.84

%

Line of credit borrowings

8,370

93

4.41

%

761

-

-

%

870

-

-

%

Senior & subordinated notes payable, net

118,765

1,572

5.25

%

95,619

1,456

6.04

%

95,493

1,455

6.06

%

Total interest-bearing liabilities

10,801,019

12,921

0.47

%

10,073,049

13,038

0.51

%

8,376,788

14,946

0.71

%

Noninterest-bearing deposits

617,241

528,897

457,824

Other liabilities

217,375

213,552

275,766

Shareholders' equity

827,108

808,753

654,505

Total liabilities and shareholders' equity

$

12,462,743

$

11,624,251

$

9,764,883

Net interest income (1)

$

51,129

$

46,677

$

36,072

Net interest spread

1.63

%

1.60

%

1.46

%

Net interest margin (1)

1.68

%

1.65

%

1.53

%

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

Three Months Ended

December 31, 2021 September 30, 2021 December 31, 2020

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

Assets

Interest-earning $ 423,351 $ 147 0.14 % $ 429,806 $ 155 0.14 % $ 671,922 $ 216 0.13 %deposits

Federal funds sold 9,896 2 0.08 % 12,629 2 0.06 % 8,236 2 0.10 %

Debt securities 575,965 2,520 1.74 % 415,855 1,664 1.59 % 578,021 676 0.47 %available-for-sale

Debt securitiesheld-to-maturity, 839,798 2,011 0.95 % 943,733 2,686 1.13 % 227,465 1,633 2.86 %net

Debt securities 1,895 3 0.63 % - - - % 2,126 4 0.75 %trading

Equity securities 4,985 - - % 163 - - % - - - %

FHLB stock 11,802 140 4.71 % 11,932 137 4.56 % 13,284 199 5.96 %

Total loans and 10,213,833 59,227 2.30 % 9,427,370 55,071 2.32 % 7,858,368 48,288 2.44 %leases

Totalinterest-earning 12,081,525 64,050 2.10 % 11,241,488 59,715 2.11 % 9,359,422 51,018 2.17 %assets

Other assets 381,218 382,763 405,461

Total assets $ 12,462,743 $ 11,624,251 $ 9,764,883



Liabilities andShareholders' Equity

Interest-bearing deposits:

Interest-bearing $ 4,195,332 $ 3,416 0.32 % $ 3,946,028 $ 3,682 0.37 % $ 2,949,908 $ 3,280 0.44 %checking accounts

Money market 5,385,794 5,905 0.43 % 4,879,971 5,794 0.47 % 4,027,298 6,120 0.60 %deposit accounts

Certificates of 842,758 843 0.40 % 899,855 1,004 0.44 % 1,003,219 2,707 1.07 %deposit

Borrowings:

FHLB borrowings 250,000 1,092 1.73 % 250,815 1,102 1.74 % 300,000 1,384 1.84 %

Line of credit 8,370 93 4.41 % 761 - - % 870 - - %borrowings

Senior &subordinated notes 118,765 1,572 5.25 % 95,619 1,456 6.04 % 95,493 1,455 6.06 %payable, net

Totalinterest-bearing 10,801,019 12,921 0.47 % 10,073,049 13,038 0.51 % 8,376,788 14,946 0.71 %liabilities

Noninterest-bearing 617,241 528,897 457,824 deposits

Other liabilities 217,375 213,552 275,766

Shareholders' 827,108 808,753 654,505 equity

Total liabilitiesand shareholders' $ 12,462,743 $ 11,624,251 $ 9,764,883 equity



Net interest income $ 51,129 $ 46,677 $ 36,072 ^(1)

Net interest spread 1.63 % 1.60 % 1.46 %

Net interest margin 1.68 % 1.65 % 1.53 %^ (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.

AVERAGES AND YIELDS (UNAUDITED)

Years Ended

December 31, 2021

December 31, 2020

(Dollars in thousands)

Average

Balance

Interest Income (1)/ Expense

Average

Yield/

Rate

Average

Balance

Interest Income (1)/ Expense

Average

Yield/

Rate

Assets

Interest-earning deposits

$

453,625

$

573

0.13

%

$

775,276

$

2,199

0.28

%

Federal funds sold

11,148

9

0.08

%

8,076

25

0.31

%

Debt securities available-for-sale

402,391

5,640

1.40

%

438,293

6,550

1.49

%

Debt securities held-to-maturity, net

866,245

9,301

1.07

%

246,054

6,439

2.62

%

Debt securities trading

555

5

0.90

%

592

5

0.84

%

Equity securities

1,298

-

-

%

-

-

-

%

FHLB stock

11,766

613

5.21

%

14,994

1,098

7.32

%

Total loans and leases

9,187,492

215,186

2.34

%

7,255,035

200,839

2.77

%

Total interest-earning assets

10,934,520

231,327

2.12

%

8,738,320

217,155

2.49

%

Other assets

371,876

387,080

Total assets

$

11,306,396

$

9,125,400

Liabilities and Shareholders' Equity

Interest-bearing deposits:

Interest-bearing checking accounts

$

3,768,446

$

13,106

0.35

%

$

2,407,087

$

14,493

0.60

%

Money market deposit accounts

4,735,297

23,299

0.49

%

3,812,942

35,095

0.92

%

Certificates of deposit

920,820

5,099

0.55

%

1,223,631

19,614

1.60

%

Borrowings:

FHLB borrowings

251,164

4,348

1.73

%

330,314

6,095

1.85

%

Line of credit borrowings

3,433

148

4.31

%

6,243

261

4.18

%

Senior & subordinated notes payable, net

101,413

5,938

5.86

%

59,078

3,593

6.08

%

Total interest-bearing liabilities

9,780,573

51,938

0.53

%

7,839,295

79,151

1.01

%

Noninterest-bearing deposits

508,404

408,313

Other liabilities

220,303

239,137

Shareholders' equity

797,116

638,655

Total liabilities and shareholders' equity

$

11,306,396

$

9,125,400

Net interest income (1)

$

179,389

$

138,004

Net interest spread

1.59

%

1.48

%

Net interest margin (1)

1.64

%

1.58

%

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

Years Ended

December 31, 2021 December 31, 2020

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

Assets

Interest-earning $ 453,625 $ 573 0.13 % $ 775,276 $ 2,199 0.28 %deposits

Federal funds sold 11,148 9 0.08 % 8,076 25 0.31 %

Debt securities 402,391 5,640 1.40 % 438,293 6,550 1.49 %available-for-sale

Debt securitiesheld-to-maturity, 866,245 9,301 1.07 % 246,054 6,439 2.62 %net

Debt securities 555 5 0.90 % 592 5 0.84 %trading

Equity securities 1,298 - - % - - - %

FHLB stock 11,766 613 5.21 % 14,994 1,098 7.32 %

Total loans and 9,187,492 215,186 2.34 % 7,255,035 200,839 2.77 %leases

Totalinterest-earning 10,934,520 231,327 2.12 % 8,738,320 217,155 2.49 %assets

Other assets 371,876 387,080

Total assets $ 11,306,396 $ 9,125,400



Liabilities andShareholders' Equity

Interest-bearing deposits:

Interest-bearing $ 3,768,446 $ 13,106 0.35 % $ 2,407,087 $ 14,493 0.60 %checking accounts

Money market 4,735,297 23,299 0.49 % 3,812,942 35,095 0.92 %deposit accounts

Certificates of 920,820 5,099 0.55 % 1,223,631 19,614 1.60 %deposit

Borrowings:

FHLB borrowings 251,164 4,348 1.73 % 330,314 6,095 1.85 %

Line of credit 3,433 148 4.31 % 6,243 261 4.18 %borrowings

Senior &subordinated notes 101,413 5,938 5.86 % 59,078 3,593 6.08 %payable, net

Totalinterest-bearing 9,780,573 51,938 0.53 % 7,839,295 79,151 1.01 %liabilities

Noninterest-bearing 508,404 408,313 deposits

Other liabilities 220,303 239,137

Shareholders' 797,116 638,655 equity

Total liabilitiesand shareholders' $ 11,306,396 $ 9,125,400 equity



Net interest income $ 179,389 $ 138,004 ^(1)

Net interest spread 1.59 % 1.48 %

Net interest margin 1.64 % 1.58 %^ (1)

(1)

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

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

TRISTATE CAPITAL HOLDINGS, INC.

LOAN AND LEASE COMPOSITION (UNAUDITED)

December 31, 2021

September 30, 2021

December 31, 2020

(Dollars in thousands)

Loan

Balance

Percent of

Loans

Loan

Balance

Percent of

Loans

Loan

Balance

Percent of

Loans

Middle-market banking loans:

Commercial and industrial

$

1,513,423

14.1

%

$

1,340,817

13.6

%

$

1,274,152

15.5

%

Commercial real estate

2,363,403

21.9

%

2,324,185

23.5

%

2,155,466

26.1

%

Total middle-market banking loans

3,876,826

36.0

%

3,665,002

37.1

%

3,429,618

41.6

%

Private banking loans

6,886,498

64.0

%

6,204,009

62.9

%

4,807,800

58.4

%

Loans and leases held-for-investment

$

10,763,324

100.0

%

$

9,869,011

100.0

%

$

8,237,418

100.0

%

TRISTATE CAPITAL HOLDINGS, INC.

LOAN AND LEASE COMPOSITION (UNAUDITED)

December 31, 2021 September 30, 2021 December 31, 2020

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

Middle-market banking loans:

Commercial and $ 1,513,423 14.1 % $ 1,340,817 13.6 % $ 1,274,152 15.5 %industrial

Commercial real 2,363,403 21.9 % 2,324,185 23.5 % 2,155,466 26.1 %estate

Total middle-market 3,876,826 36.0 % 3,665,002 37.1 % 3,429,618 41.6 %banking loans

Private banking 6,886,498 64.0 % 6,204,009 62.9 % 4,807,800 58.4 %loans

Loans and leases $ 10,763,324 100.0 % $ 9,869,011 100.0 % $ 8,237,418 100.0 %held-for-investment

TRISTATE CAPITAL HOLDINGS, INC.

STATEMENTS OF INCOME BY REPORTABLE SEGMENT (UNAUDITED)

Three Months Ended December 31, 2021

Year Ended December 31, 2021

(Dollars in thousands)

Bank

Investment

Management

Parent

and Other

Consolidated

Bank

Investment

Management

Parent

and Other

Consolidated

Income statement data:

Interest income

$

64,045

$

-

$

-

$

64,045

$

231,297

$

-

$

-

$

231,297

Interest expense

11,260

-

1,661

12,921

45,889

-

6,049

51,938

Net interest income (loss)

52,785

-

(1,661

)

51,124

185,408

-

(6,049

)

179,359

Provision for credit losses

488

-

-

488

808

-

-

808

Net interest income (loss) after provision for credit losses

52,297

-

(1,661

)

50,636

184,600

-

(6,049

)

178,551

Non-interest income:

Investment management fees

-

9,913

(346

)

9,567

-

38,702

(1,248

)

37,454

Net gain on the sale and call of debt securities

112

-

-

112

242

-

-

242

Other non-interest income

6,258

9

(25

)

6,242

20,941

34

(25

)

20,950

Total non-interest income (loss)

6,370

9,922

(371

)

15,921

21,183

38,736

(1,273

)

58,646

Non-interest expense:

Intangible amortization expense

-

478

-

478

-

1,911

-

1,911

Other non-interest expense

30,170

8,640

3,495

42,305

107,373

31,939

5,271

144,583

Total non-interest expense

30,170

9,118

3,495

42,783

107,373

33,850

5,271

146,494

Income (loss) before tax

28,497

804

(5,527

)

23,774

98,410

4,886

(12,593

)

90,703

Income tax expense (benefit)

2,158

916

(2,364

)

710

14,171

1,100

(2,628

)

12,643

Net income (loss)

$

26,339

$

(112

)

$

(3,163

)

$

23,064

$

84,239

$

3,786

$

(9,965

)

$

78,060

TRISTATE CAPITAL HOLDINGS, INC.

STATEMENTS OF INCOME BY REPORTABLE SEGMENT (UNAUDITED)

Three Months Ended December 31, 2021 Year Ended December 31, 2021

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

Incomestatement data:

Interest $ 64,045 $ - $ - $ 64,045 $ 231,297 $ - $ - $ 231,297income

Interest 11,260 - 1,661 12,921 45,889 - 6,049 51,938expense

Net interestincome 52,785 - (1,661 ) 51,124 185,408 - (6,049 ) 179,359(loss)

Provisionfor credit 488 - - 488 808 - - 808losses

Net interestincome(loss) after 52,297 - (1,661 ) 50,636 184,600 - (6,049 ) 178,551provisionfor creditlosses

Non-interest income:

Investmentmanagement - 9,913 (346 ) 9,567 - 38,702 (1,248 ) 37,454fees

Net gain onthe sale and 112 - - 112 242 - - 242call of debtsecurities

Othernon-interest 6,258 9 (25 ) 6,242 20,941 34 (25 ) 20,950income

Totalnon-interest 6,370 9,922 (371 ) 15,921 21,183 38,736 (1,273 ) 58,646income(loss)

Non-interest expense:

Intangibleamortization - 478 - 478 - 1,911 - 1,911expense

Othernon-interest 30,170 8,640 3,495 42,305 107,373 31,939 5,271 144,583expense

Totalnon-interest 30,170 9,118 3,495 42,783 107,373 33,850 5,271 146,494expense

Income(loss) 28,497 804 (5,527 ) 23,774 98,410 4,886 (12,593 ) 90,703before tax

Income taxexpense 2,158 916 (2,364 ) 710 14,171 1,100 (2,628 ) 12,643(benefit)

Net income $ 26,339 $ (112 ) $ (3,163 ) $ 23,064 $ 84,239 $ 3,786 $ (9,965 ) $ 78,060(loss)

Three Months Ended December 31, 2020

Year Ended December 31, 2020

(Dollars in thousands)

Bank

Investment

Management

Parent

and Other

Consolidated

Bank

Investment

Management

Parent

and Other

Consolidated

Income statement data:

Interest income

$

51,010

$

-

$

-

$

51,010

$

217,095

$

-

$

-

$

217,095

Interest expense

13,495

-

1,451

14,946

75,339

-

3,812

79,151

Net interest income (loss)

37,515

-

(1,451

)

36,064

141,756

-

(3,812

)

137,944

Provision for credit losses

2,972

-

-

2,972

19,400

-

-

19,400

Net interest income (loss) after provision for credit losses

34,543

-

(1,451

)

33,092

122,356

-

(3,812

)

118,544

Non-interest income:

Investment management fees

-

8,772

(208

)

8,564

-

32,727

(692

)

32,035

Net gain on the sale and call of debt securities

133

-

-

133

3,948

-

-

3,948

Other non-interest income (loss)

5,270

36

-

5,306

21,164

58

-

21,222

Total non-interest income (loss)

5,403

8,808

(208

)

14,003

25,112

32,785

(692

)

57,205

Non-interest expense:

Intangible amortization expense

-

478

-

478

-

1,944

-

1,944

Other non-interest expense

26,078

7,237

642

33,957

90,541

27,735

2,883

121,159

Total non-interest expense

26,078

7,715

642

34,435

90,541

29,679

2,883

123,103

Income (loss) before tax

13,868

1,093

(2,301

)

12,660

56,927

3,106

(7,387

)

52,646

Income tax expense (benefit)

452

(74

)

(328

)

50

8,330

308

(1,226

)

7,412

Net income (loss)

$

13,416

$

1,167

$

(1,973

)

$

12,610

$

48,597

$

2,798

$

(6,161

)

$

45,234

Three Months Ended December 31, 2020 Year Ended December 31, 2020

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

Incomestatement data:

Interest $ 51,010 $ - $ - $ 51,010 $ 217,095 $ - $ - $ 217,095income

Interest 13,495 - 1,451 14,946 75,339 - 3,812 79,151expense

Net interestincome 37,515 - (1,451 ) 36,064 141,756 - (3,812 ) 137,944(loss)

Provisionfor credit 2,972 - - 2,972 19,400 - - 19,400losses

Net interestincome(loss) after 34,543 - (1,451 ) 33,092 122,356 - (3,812 ) 118,544provisionfor creditlosses

Non-interest income:

Investmentmanagement - 8,772 (208 ) 8,564 - 32,727 (692 ) 32,035fees

Net gain onthe sale and 133 - - 133 3,948 - - 3,948call of debtsecurities

Othernon-interest 5,270 36 - 5,306 21,164 58 - 21,222income(loss)

Totalnon-interest 5,403 8,808 (208 ) 14,003 25,112 32,785 (692 ) 57,205income(loss)

Non-interest expense:

Intangibleamortization - 478 - 478 - 1,944 - 1,944expense

Othernon-interest 26,078 7,237 642 33,957 90,541 27,735 2,883 121,159expense

Totalnon-interest 26,078 7,715 642 34,435 90,541 29,679 2,883 123,103expense

Income(loss) 13,868 1,093 (2,301 ) 12,660 56,927 3,106 (7,387 ) 52,646before tax

Income taxexpense 452 (74 ) (328 ) 50 8,330 308 (1,226 ) 7,412(benefit)

Net income $ 13,416 $ 1,167 $ (1,973 ) $ 12,610 $ 48,597 $ 2,798 $ (6,161 ) $ 45,234(loss)

TRISTATE CAPITAL HOLDINGS, INC.

EARNINGS PER COMMON SHARE (UNAUDITED)

Three Months Ended

Years Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(Dollars in thousands, except per share data)

2021

2021

2020

2021

2020

Basic earnings per common share:

Net income

$

23,064

$

20,016

$

12,610

$

78,060

$

45,234

Less: Preferred dividends on Series A and Series B

1,962

1,963

1,963

7,849

7,849

Less: Preferred dividends on Series C

1,153

1,134

24

4,499

24

Net income available to common shareholders

$

19,949

$

16,919

$

10,623

$

65,712

$

37,361

Allocation of net income available:

Common shareholders

$

16,798

$

14,274

$

10,578

$

55,487

$

37,320

Series C convertible preferred shareholders

2,658

2,225

38

8,590

34

Warrant shareholders

493

420

7

1,635

7

Total

$

19,949

$

16,919

$

10,623

$

65,712

$

37,361

Basic weighted average common shares outstanding:

Basic common shares

31,396,278

31,357,356

28,378,695

31,315,235

28,267,512

Series C convertible preferred stock, as-if converted

4,967,272

4,887,272

102,767

4,848,039

25,832

Warrants, as-if exercised

922,438

922,438

20,053

922,438

5,041

Basic earnings per common share

$

0.54

$

0.46

$

0.37

$

1.77

$

1.32

Diluted earnings per common share:

Income available to common shareholders after allocation

$

16,798

$

14,274

$

10,578

$

55,487

$

37,320

Diluted weighted average common shares outstanding:

Basic common shares

31,396,278

31,357,356

28,378,695

31,315,235

28,267,512

Restricted stock - dilutive

1,028,637

664,729

390,320

994,997

345,026

Stock options - dilutive

156,084

124,137

98,943

149,716

125,930

Diluted common shares

32,580,999

32,146,222

28,867,958

32,459,948

28,738,468

Diluted earnings per common share

$

0.52

$

0.44

$

0.37

$

1.71

$

1.30

December 31,

September 30,

December 31,

December 31,

December 31,

2021

2021

2020

2021

2020

Anti-dilutive shares:

Restricted stock

37,500

10,750

647,717

37,500

581,717

Stock options

-

-

-

-

-

Series C convertible preferred stock, as-if converted

4,967,272

4,887,272

4,727,272

4,967,272

4,727,272

Warrants, as-if exercised

922,438

922,438

922,438

922,438

922,438

Total anti-dilutive shares

5,927,210

5,820,460

6,297,427

5,927,210

6,231,427

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 Preferred Series C 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 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.

EARNINGS PER COMMON SHARE (UNAUDITED)

Three Months Ended Years Ended

December 31, September December 31, December 31, December 31, 30,

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



Basicearnings per common share:

Net income $ 23,064 $ 20,016 $ 12,610 $ 78,060 $ 45,234

Less:Preferreddividends on 1,962 1,963 1,963 7,849 7,849Series A andSeries B

Less:Preferred 1,153 1,134 24 4,499 24dividends onSeries C

Net incomeavailable to $ 19,949 $ 16,919 $ 10,623 $ 65,712 $ 37,361commonshareholders



Allocation ofnet income available:

Common $ 16,798 $ 14,274 $ 10,578 $ 55,487 $ 37,320shareholders

Series Cconvertible 2,658 2,225 38 8,590 34preferredshareholders

Warrant 493 420 7 1,635 7shareholders

Total $ 19,949 $ 16,919 $ 10,623 $ 65,712 $ 37,361



Basicweightedaverage common sharesoutstanding:

Basic common 31,396,278 31,357,356 28,378,695 31,315,235 28,267,512shares

Series Cconvertiblepreferred 4,967,272 4,887,272 102,767 4,848,039 25,832stock, as-ifconverted

Warrants,as-if 922,438 922,438 20,053 922,438 5,041exercised



Basicearnings per $ 0.54 $ 0.46 $ 0.37 $ 1.77 $ 1.32common share



Dilutedearnings per common share:

Incomeavailable tocommon $ 16,798 $ 14,274 $ 10,578 $ 55,487 $ 37,320shareholdersafterallocation



Dilutedweightedaverage common sharesoutstanding:

Basic common 31,396,278 31,357,356 28,378,695 31,315,235 28,267,512shares

Restrictedstock - 1,028,637 664,729 390,320 994,997 345,026dilutive

Stock options 156,084 124,137 98,943 149,716 125,930- dilutive

Diluted 32,580,999 32,146,222 28,867,958 32,459,948 28,738,468common shares



Dilutedearnings per $ 0.52 $ 0.44 $ 0.37 $ 1.71 $ 1.30common share



December 31, September December 31, December 31, December 31, 30,

2021 2021 2020 2021 2020

Anti-dilutive shares:

Restricted 37,500 10,750 647,717 37,500 581,717stock

Stock options - - - - -

Series Cconvertiblepreferred 4,967,272 4,887,272 4,727,272 4,967,272 4,727,272stock, as-ifconverted

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

Totalanti-dilutive 5,927,210 5,820,460 6,297,427 5,927,210 6,231,427shares



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 Preferred Series C 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 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," "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.

"EBITDA" is defined as net income before interest expense, income tax expense (benefit), 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 credit 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)

December 31, September December 31, 30,

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

Tangible common equity and tangible book value per common share:

Common shareholders' equity $ 655,178 $ 633,595 $ 580,002

Less: goodwill and intangible assets 62,000 62,478 63,911

Tangible common equity $ 593,178 $ 571,117 $ 516,091

Common shares outstanding 33,263,498 33,154,343 32,620,150

Tangible book value per common share $ 17.83 $ 17.23 $ 15.82

INVESTMENT MANAGEMENT SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended

Years Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(Dollars in thousands)

2021

2021

2020

2021

2020

Investment Management EBITDA:

Net income

$

(112

)

$

1,677

$

1,167

$

3,786

$

2,798

Interest expense

-

-

-

-

-

Income taxes expense (benefit)

916

(412

)

(74

)

1,100

308

Depreciation expense

109

105

104

421

423

Intangible amortization expense

478

477

478

1,911

1,944

EBITDA

$

1,391

$

1,847

$

1,675

$

7,218

$

5,473

INVESTMENT MANAGEMENT SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended Years Ended

December September December December December 31, 30, 31, 31, 31,

(Dollars in thousands) 2021 2021 2020 2021 2020

Investment Management EBITDA:

Net income $ (112 ) $ 1,677 $ 1,167 $ 3,786 $ 2,798

Interest expense - - - - -

Income taxes expense 916 (412 ) (74 ) 1,100 308(benefit)

Depreciation expense 109 105 104 421 423

Intangible amortization 478 477 478 1,911 1,944expense

EBITDA $ 1,391 $ 1,847 $ 1,675 $ 7,218 $ 5,473

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended

Years Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(Dollars in thousands)

2021

2021

2020

2021

2020

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

Net interest income

$

51,124

$

46,667

$

36,064

$

179,359

$

137,944

Total non-interest income

15,921

14,230

14,003

58,646

57,205

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

112

33

133

242

3,948

Total revenue

66,933

60,864

49,934

237,763

191,201

Less: total non-interest expense

42,783

38,008

34,436

146,494

123,103

Pre-tax, pre-provision net revenue

$

24,150

$

22,856

$

15,498

$

91,269

$

68,098

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended Years Ended

December September December December December 31, 30, 31, 31, 31,

(Dollars in thousands) 2021 2021 2020 2021 2020

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

Net interest income $ 51,124 $ 46,667 $ 36,064 $ 179,359 $ 137,944

Total non-interest income 15,921 14,230 14,003 58,646 57,205

Less: net gain (loss) on thesale and call of debt 112 33 133 242 3,948securities

Total revenue 66,933 60,864 49,934 237,763 191,201

Less: total non-interest 42,783 38,008 34,436 146,494 123,103expense

Pre-tax, pre-provision net $ 24,150 $ 22,856 $ 15,498 $ 91,269 $ 68,098revenue

BANK SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended

Years Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(Dollars in thousands)

2021

2021

2020

2021

2020

Bank total revenue:

Net interest income

$

52,785

$

48,114

$

37,515

$

185,408

$

141,756

Total non-interest income

6,370

4,801

5,403

21,183

25,112

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

112

33

133

242

3,948

Bank total revenue

$

59,043

$

52,882

$

42,785

$

206,349

$

162,920

Bank efficiency ratio:

Total non-interest expense (numerator)

$

30,170

$

28,975

$

26,078

$

107,373

$

90,541

Bank total revenue (denominator)

$

59,043

$

52,882

$

42,785

$

206,349

$

162,920

Bank efficiency ratio

51.10

%

54.79

%

60.95

%

52.03

%

55.57

%

BANK SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended Years Ended

December September December December December 31, 30, 31, 31, 31,

(Dollars in 2021 2021 2020 2021 2020 thousands)

Bank total revenue:

Net interest income $ 52,785 $ 48,114 $ 37,515 $ 185,408 $ 141,756

Total non-interest 6,370 4,801 5,403 21,183 25,112 income

Less: net gain(loss) on the sale 112 33 133 242 3,948 and call of debtsecurities

Bank total revenue $ 59,043 $ 52,882 $ 42,785 $ 206,349 $ 162,920



Bank efficiency ratio:

Total non-interest $ 30,170 $ 28,975 $ 26,078 $ 107,373 $ 90,541 expense (numerator)

Bank total revenue $ 59,043 $ 52,882 $ 42,785 $ 206,349 $ 162,920 (denominator)

Bank efficiency 51.10 % 54.79 % 60.95 % 52.03 % 55.57 %ratio

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Fourth Quarter 2021 (Dollars in thousands, except per share amounts)

Income Before

Taxes (GAAP)

Non-recurring

non-interest

expense*

Income Before

Taxes, excluding

non-recurring items

(non-GAAP)

Estimated effect

of non-recurring

item on Income

Tax Expense**

Net Impact of

Non-recurring

expense and

effect on Income

Tax Expense**

Net impact of

non-recurring

expense and

taxes on diluted

EPS

$

23,774

$

2,665

$

26,439

$

560

$

2,105

$

0.06

*Non-recurring expenses incurred in connection with the pending transaction announced in October (agreement to be acquired by Raymond James)

**Tax impact estimated using 21% federal tax rate.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005784/en/

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