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CST: 18/10/2019 19:37:20   

ServisFirst Bancshares, Inc. Announces Results for First Quarter of 2019

186 Days ago

BIRMINGHAM, Ala., April 15, 2019 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the quarter ended March 31, 2019.

FIRST QUARTER 2019 HIGHLIGHTS:

  • Assets exceeded $8.3 billion, with organic growth exceeding $8.1 billion since the Bank opened in 2005
  • Loans and deposits grew 12.3% and 18.5%, respectively, year over year
  • Diluted earnings per share increased 8.3% from $0.60 to $0.65 year over year
  • Credit quality remains strong as evidenced by improving metrics
  • Efficiency ratio for the first quarter of 2019 of 34.35%
                                       
FINANCIAL SUMMARY (UNAUDITED) 
(in Thousands except share and per share amounts)   
    Period Ending
March 31, 2019
  Period Ending
December 31, 2018
  % Change
From Period
Ending
December 31, 2018
to Period Ending
March 31, 2019
  Period Ending
March 31, 2018
  % Change
From Period Ending
March 31, 2018
to Period Ending
March 31, 2019
QUARTERLY OPERATING RESULTS                                      
Net Income   $ 35,010     $ 36,237     (3 ) %   $ 32,603     7 %
Net Income Available to Common Stockholders   $ 35,010     $ 36,205     (3 ) %   $ 32,603     7 %
Diluted Earnings Per Share   $ 0.65     $ 0.67     (3 ) %   $ 0.60     8 %
Return on Average Assets     1.75 %     1.85 %             1.91 %      
Return on Average Common Stockholders' Equity     19.42 %     21.13 %             21.40 %      
Average Diluted Shares Outstanding     54,076,538       54,109,450               54,183,400        
                                       
BALANCE SHEET                                      
Total Assets   $ 8,310,836     $ 8,007,382     4   %   $ 7,011,735     19 %
Loans     6,659,908       6,533,499     2   %     5,928,327     12 %
Non-interest-bearing Demand Deposits     1,572,703       1,557,341     1   %     1,407,592     12 %
Total Deposits     7,083,666       6,915,708     2   %     5,977,387     19 %
Stockholders' Equity     745,586       715,203     4   %     629,297     18 %
                                       

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $35.0 million for the quarter ended March 31, 2019, compared to net income and net income available to common stockholders of $32.6 million for the same quarter in 2018.  Basic and diluted earnings per common share were $0.65 for the first quarter of 2019, compared to $0.61 and $0.60, respectively, for the first quarter of 2018.

Return on average assets was 1.75% and return on average common stockholders’ equity was 19.42% for the first quarter of 2019, compared to 1.91% and 21.40%, respectively, for the first quarter of 2018.

Net interest income was $68.8 million for the first quarter of 2019, compared to $68.9 million for the fourth quarter of 2018 and $62.4 million for the first quarter of 2018.  The net interest margin in the first quarter of 2019 was 3.56% compared to 3.63% in the fourth quarter of 2018 and 3.81% in the first quarter of 2018.  Loans of $4.1 million were added to nonaccrual status during the first quarter of 2019 resulting in the reversal of $73,000 in interest income compared to loans of $16.7 million added to nonaccrual status during the fourth quarter of 2018 resulting in the reversal of $390,000 in interest income.  Linked quarter increases in average rates paid on deposits in excess of increased average yields on loans drove an unfavorable mix change, while increases in average balances in loans and equity drove favorable volume change.

Average loans for the first quarter of 2019 were $6.60 billion, an increase of $168.7 million, or 3%, over average loans of $6.43 billion for the fourth quarter of 2018, and an increase of $717.7 million, or 12%, over average loans of $5.88 billion for the first quarter of 2018.

Average total deposits for the first quarter of 2019 were $6.98 billion, an increase of $241.3 million, or 4%, over average total deposits of $6.74 billion for the fourth quarter of 2018, and an increase of $1.03 billion, or 17%, over average total deposits of $5.95 billion for the first quarter of 2018.

Non-performing assets to total assets were 0.39% for the first quarter of 2019, a decrease of two basis points compared to 0.41% for the fourth quarter of 2018 and an increase of 17 basis points compared to 0.22% for the first quarter of 2018.  Net credit charge-offs to average loans was 0.20%, a 10 basis point decrease compared to 0.30% for the fourth quarter of 2018 and an increase of 10 basis points compared to 0.10% for the first quarter of 2018.  We recorded a $4.9 million provision for loan losses in the first quarter of 2019 compared to $6.5 million in the fourth quarter of 2018 and $4.1 million in the first quarter of 2018.  The allowance for loan loss as a percentage of total loans was 1.05% at March 31, 2019, December 31, 2018 and March 31, 2018, respectively.  In management’s opinion, the allowance is adequate and was determined by consistent application of ServisFirst Bank’s methodology for calculating its allowance for loan losses.

Non-interest income increased $527,000 during the first quarter of 2019, or 12%, compared to the first quarter of 2018.  Deposit service charges increased $117,000 in the first quarter of 2019, or 7%, compared to the first quarter of 2018.  The number of transaction deposit accounts increased approximately 12% from March 31, 2018 to March 31, 2019.  Mortgage banking revenue increased $57,000, or 11%, from the first quarter of 2018 to the first quarter of 2019.  Mortgage loan originations were up about 3% year over year.  Credit card revenue increased $321,000, or 26%, to $1.6 million during the first quarter of 2019, compared to $1.3 million during the first quarter of 2018.  The number of cards increased 31% and the aggregate amount of sales on all accounts increased 21% year over year.

Non-interest expense for the first quarter of 2019 increased $2.3 million, or 10%, to $25.3 million from $23.1 million in the first quarter of 2018, and increased $2.6 million, or 10%, on a linked quarter basis.  Salary and benefit expense for the first quarter of 2019 increased $969,000, or 7%, to $14.3 million from $13.3 million in the first quarter of 2018, and increased $1.9 million, or 15%, on a linked quarter basis.  We reversed $815,000 of incentive bonus accrual in December 2018.  The number of FTE employees increased from 437 at March 31, 2018 to 485 at March 31, 2019, or 11%.  Equipment and occupancy expense increased $305,000, or 16%, to $2.3 million in the first quarter of 2019, from $2.0 million in the first quarter of 2018, and increased $96,000 on a linked-quarter basis.  Professional services expense increased $189,000, or 24%, to $1.0 million in the first quarter of 2019, from $805,000 in the first quarter of 2018, but decreased $70,000, or 7%, from $1.1 on a linked-quarter basis.  FDIC and other regulatory assessments decreased $114,000, or 10%, to $1.0 million in the first quarter of 2019, from $1.1 million in the first quarter of 2018.  Lower assessment rates result from the FDIC’s Bank Insurance Fund reaching its desired level of 1.35%.  Other operating expense for the first quarter of 2019 increased $1.2 million, or 22%, to $6.8 million from $5.6 million in the first quarter of 2018, and increased $605,000, or 10%, on a linked-quarter basis.  The year-over-year increase is attributable to increases in Federal Reserve charges resulting from increased activity from our correspondent clearing and increased loan and credit expenses resulting from loan growth.  The efficiency ratio improved to 34.35% during the first quarter of 2019 from 34.49% during the first quarter of 2018 but increased compared to 30.73% during the fourth quarter of 2018.

Income tax expense increased $1.4 million, or 20%, to $8.5 million in the first quarter of 2019, compared to $7.1 million in the first quarter of 2018.  Our effective tax rate was 19.53% for the first quarter of 2019 compared to 17.78% for the first quarter of 2018.  We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the first quarters of 2019 and 2018 of $772,000 and $1.5 million, respectively.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, including tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill and core deposit intangibles associated with our acquisition of Metro Bancshares, Inc. in January 2015.  We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations.  As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use.  The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release.  Dollars are in thousands, except share and per share data.

                         
      At
March 31,
2019
  At
December 31,
2018
  At
September 30,
2018
  At
June 30,
2018
  At
March 31,
2018
 
Book value per share - GAAP   $ 13.94     $ 13.40     $ 12.81     $ 12.33     $ 11.84    
Total common stockholders' equity - GAAP     745,586       715,203       681,510       655,114       629,297    
  Adjustments:                                          
  Adjusted for goodwill and core deposit intangible asset     14,381       14,449       14,517       14,584       14,652    
Tangible common stockholders' equity - non-GAAP   $ 731,205     $ 700,754     $ 666,993     $ 640,530     $ 614,645    
Tangible book value per share - non-GAAP   $ 13.67     $ 13.13     $ 12.54     $ 12.05     $ 11.56    
                                             
Stockholders' equity to total assets - GAAP     8.97 %     8.93 %     9.07 %     9.25 %     8.98 %  
Total assets - GAAP   $ 8,310,836     $ 8,007,382     $ 7,517,833     $ 7,084,562     $ 7,011,735    
  Adjustments:                                          
  Adjusted for goodwill and core deposit intangible asset     14,381       14,449       14,517       14,584       14,652    
Total tangible assets - non-GAAP   $ 8,296,455     $ 7,992,933     $ 7,503,316     $ 7,069,978     $ 6,997,083    
Tangible common equity to total tangible assets - non-GAAP     8.81 %     8.77 %     8.89 %     9.06 %     8.78 %  
                                           

About ServisFirst Bancshares, Inc.

ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Birmingham, Huntsville, Montgomery, Mobile and Dothan, Alabama, Pensacola and Tampa Bay, Florida, Atlanta, Georgia, Charleston, South Carolina and Nashville, Tennessee.

ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC).  Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbancshares.com.

Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933.  The words "believe," "expect," "anticipate," "project," “plan,” “intend,” “will,” “would,” “might” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.’s senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.  Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including: general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic stimulus initiatives; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; and increased competition from both banks and non-bank financial institutions.  The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made.  ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.

More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com  or by calling (205) 949-0302.

CONTACT: ServisFirst Bank
Davis Mange (205) 949-3420
dmange@servisfirstbank.com

                                       
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)                                      
(In thousands except share and per share data)                                            
    1st Quarter
2019
  4th Quarter
2018
  3rd Quarter
2018
  2nd Quarter
2018
  1st Quarter
2018
   
CONSOLIDATED STATEMENT OF INCOME                                            
Interest income   $ 93,699     $ 90,164     $ 84,058     $ 78,396     $ 74,009      
Interest expense     24,921       21,306       17,195       13,874       11,573      
Net interest income     68,778       68,858       66,863       64,522       62,436      
Provision for loan losses     4,885       6,518       6,624       4,121       4,139      
Net interest income after provision for loan losses     63,893       62,340       60,239       60,401       58,297      
Non-interest income     4,942       5,019       5,065       4,941       4,415      
Non-interest expense     25,326       22,701       22,624       23,492       23,058      
Income before income tax     43,509       44,658       42,680       41,850       39,654      
Provision for income tax     8,499       8,421       8,120       8,310       7,051      
Net income     35,010       36,237       34,560       33,540       32,603      
Preferred stock dividends     -       32       -       31       -      
Net income available to common stockholders   $ 35,010     $ 36,205     $ 34,560     $ 33,509     $ 32,603      
Earnings per share - basic   $ 0.65     $ 0.68     $ 0.65     $ 0.63     $ 0.61      
Earnings per share - diluted   $ 0.65     $ 0.67     $ 0.64     $ 0.62     $ 0.60      
Average diluted shares outstanding     54,076,538       54,109,450       54,191,222       54,196,023       54,183,400      
                                             
CONSOLIDATED BALANCE SHEET DATA                                            
Total assets   $ 8,310,836     $ 8,007,382     $ 7,517,833     $ 7,084,562     $ 7,011,735      
Loans     6,659,908       6,533,499       6,363,531       6,129,649       5,928,327      
Debt securities     631,946       590,184       578,271       583,799       560,885      
Non-interest-bearing demand deposits     1,572,703       1,557,341       1,504,447       1,481,447       1,407,592      
Total deposits     7,083,666       6,915,708       6,505,351       6,085,682       5,977,387      
Borrowings     64,675       64,666       64,657       64,648       64,739      
Stockholders' equity   $ 745,586     $ 715,203     $ 681,510     $ 655,114     $ 629,297      
                                             
Shares outstanding     53,495,208       53,375,195       53,197,807       53,150,733       53,147,169      
Book value per share   $ 13.94     $ 13.40     $ 12.81     $ 12.33     $ 11.84      
Tangible book value per share (1)   $ 13.67     $ 13.13     $ 12.54     $ 12.05     $ 11.56      
                                             
SELECTED FINANCIAL RATIOS                                            
Net interest margin     3.56 %     3.63 %     3.77 %     3.82 %     3.81 %    
Return on average assets     1.75 %     1.85 %     1.87 %     1.91 %     1.91 %    
Return on average common stockholders' equity     19.42 %     21.13 %     20.42 %     20.89 %     21.40 %    
Efficiency ratio     34.35 %     30.73 %     31.45 %     33.82 %     34.49 %    
Non-interest expense to average earning assets     1.31 %     1.20 %     1.27 %     1.39 %     1.40 %    
                                             
CAPITAL RATIOS (2)                                            
Common equity tier 1 capital to risk-weighted assets     10.30 %     10.12 %     10.08 %     10.08 %     9.88 %    
Tier 1 capital to risk-weighted assets     10.30 %     10.13 %     10.09 %     10.08 %     9.88 %    
Total capital to risk-weighted assets     12.21 %     12.05 %     12.05 %     12.10 %     11.91 %    
Tier 1 capital to average assets     9.03 %     9.07 %     9.28 %     9.21 %     8.95 %    
Tangible common equity to total tangible assets (1)     8.81 %     8.77 %     8.89 %     9.06 %     8.78 %    
                                             
(1) See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for a discussion of these Non-GAAP financial measures.  
(2) Regulatory capital ratios for most recent period are preliminary.  
   


CONSOLIDATED BALANCE SHEETS (UNAUDITED)                    
(Dollars in thousands)                    
        March 31, 2019   March 31, 2018   % Change  
ASSETS                    
Cash and due from banks   $ 71,058     $ 64,912     9   %  
Interest-bearing balances due from depository institutions     547,036       53,311     926   %  
Federal funds sold     181,435       197,882     (8 ) %  
  Cash and cash equivalents     799,529       316,105     153   %  
Available for sale debt securities, at fair value     631,696       560,635     13   %  
Held to maturity debt securities (fair value of $250 at March 31, 2019 and March 31, 2018)     250       250     -   %  
Mortgage loans held for sale     1,223       4,522     (73 ) %  
Loans     6,659,908       5,928,327     12   %  
Less allowance for loan losses     (70,207 )     (62,050 )   13   %  
  Loans, net     6,589,701       5,866,277     12   %  
Premises and equipment, net     57,664       58,624     (2 ) %  
Goodwill and other identifiable intangible assets     14,381       14,652     (2 ) %  
Other assets     216,392       190,670     13   %  
  Total assets   $ 8,310,836     $ 7,011,735     19   %  
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Liabilities:                    
Deposits:                    
  Non-interest-bearing   $ 1,572,703     $ 1,407,592     12   %  
  Interest-bearing     5,510,963       4,569,795     21   %  
    Total deposits     7,083,666       5,977,387     19   %  
Federal funds purchased     373,378       326,399     14   %  
Other borrowings     64,675       64,739     -   %  
Other liabilities     43,531       13,913     213   %  
  Total liabilities     7,565,250       6,382,438     19   %  
Stockholders' equity:                    
  Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at                    
    March 31, 2019 and March 31, 2018                    
  Common stock, par value $0.001 per share; 100,000,000 shares authorized; 53,495,208 shares     -       -     -   %  
    issued and outstanding at March 31, 2019, and 53,147,169 shares issued and outstanding                    
    at March 31, 2018                    
  Additional paid-in capital     218,147       217,536     -   %  
  Retained earnings     527,853       416,311     27   %  
  Accumulated other comprehensive loss     (969 )     (5,105 )   NM      
    Total stockholders' equity attributable to ServisFirst Bancshares, Inc.     745,084       628,795     18   %  
  Noncontrolling interest     502       502     -   %  
    Total stockholders' equity     745,586       629,297     18   %  
  Total liabilities and stockholders' equity   $ 8,310,836     $ 7,011,735     19   %  
                         


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)      
(In thousands except per share data)            
      Three Months Ended March 31,
      2019   2018
Interest income:            
  Interest and fees on loans   $ 85,524   $ 69,674
  Taxable securities     3,746     2,745
  Nontaxable securities     446     656
  Federal funds sold     1,219     551
  Other interest and dividends     2,764     383
    Total interest income     93,699     74,009
Interest expense:            
  Deposits     22,145     9,621
  Borrowed funds     2,776     1,952
    Total interest expense     24,921     11,573
    Net interest income     68,778     62,436
Provision for loan losses     4,885     4,139
     Net interest income after provision for loan losses     63,893     58,297
Non-interest income:            
  Service charges on deposit accounts     1,702     1,585
  Mortgage banking     575     518
  Credit card income     1,576     1,255
  Securities gains     -     4
  Increase in cash surrender value life insurance     762     777
  Other operating income     327     276
    Total non-interest income     4,942     4,415
Non-interest expense:            
  Salaries and employee benefits     14,265     13,296
  Equipment and occupancy expense     2,259     1,954
  Professional services     994     805
  FDIC and other regulatory assessments     1,019     1,133
  Other real estate owned expense     22     316
  Other operating expense     6,767     5,554
    Total non-interest expense     25,326     23,058
    Income before income tax     43,509     39,654
Provision for income tax     8,499     7,051
     Net income     35,010     32,603
  Dividends on preferred stock     -     -
    Net income available to common stockholders   $ 35,010   $ 32,603
Basic earnings per common share   $ 0.65   $ 0.61
Diluted earnings per common share   $ 0.65   $ 0.60
             


LOANS BY TYPE (UNAUDITED)                              
(In thousands)                              
                                 
      1st Quarter
2019
  4th Quarter
2018
  3rd Quarter
2018
  2nd Quarter
2018
  1st Quarter
2018
Commercial, financial and agricultural   $ 2,522,136   $ 2,513,225   $ 2,478,788   $ 2,345,879   $ 2,329,904
Real estate - construction     556,219     533,192     543,611     522,788     506,050
Real estate - mortgage:                              
  Owner-occupied commercial     1,500,595     1,463,887     1,430,111     1,383,882     1,349,679
  1-4 family mortgage     629,285     621,634     610,460     584,133     581,498
  Other mortgage     1,394,611     1,337,068     1,236,954     1,225,906     1,099,482
Subtotal: Real estate - mortgage     3,524,491     3,422,589     3,277,525     3,193,921     3,030,659
Consumer     57,062     64,493     63,607     67,061     61,714
Total loans   $ 6,659,908   $ 6,533,499   $ 6,363,531   $ 6,129,649   $ 5,928,327


                                     
SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)                                    
(Dollars in thousands)                                    
          1st Quarter
2019
  4th Quarter
2018
  3rd Quarter
2018
  2nd Quarter
2018
  1st Quarter
2018
 
Allowance for loan losses:                                          
Beginning balance   $ 68,600       $ 66,879        $ 64,239        $ 62,050        $ 59,406      
Loans charged off:                                          
  Commercial, financial and agricultural     3,037         4,685         3,923         1,732         1,088      
  Real estate - construction     -         -         -         -         -      
  Real estate - mortgage     50         173         48         440         381      
  Consumer     218         72         76         47         88      
    Total charge offs     3,305         4,930         4,047         2,219         1,557      
Recoveries:                                          
  Commercial, financial and agricultural     12         120         52         173         4      
  Real estate - construction     1         4         4         97         7      
  Real estate - mortgage     7         1         1         2         42      
  Consumer     7         8         6         15         9      
    Total recoveries     27         133         63         287         62      
  Net charge-offs     3,278         4,797         3,984         1,932         1,495      
  Provision for loan losses     4,885         6,518         6,624         4,121         4,139      
  Ending balance   $ 70,207       $ 68,600       $ 66,879       $ 64,239       $ 62,050      
                                                 
  Allowance for loan losses to total loans     1.05   %     1.05    %     1.05    %     1.05    %     1.05   %  
  Allowance for loan losses to total average                                          
    loans     1.06   %     1.07    %     1.07    %     1.07    %     1.05   %  
  Net charge-offs to total average loans     0.20   %     0.30    %     0.25    %     0.13    %     0.10   %  
  Provision for loan losses to total average                                          
    loans     0.30   %     0.40    %     0.42    %     0.28    %     0.29   %  
  Nonperforming assets:                                          
    Nonaccrual loans   $ 22,154       $ 21,926        $ 9,153        $ 8,022        $ 9,271      
    Loans 90+ days past due and accruing     5,021         5,844         5,714         6,081         678      
    Other real estate owned and                                          
      repossessed assets     5,480         5,169         5,714         5,937         5,748      
  Total   $ 32,655       $ 32,939       $ 20,581       $ 20,040       $ 15,697      
                                                 
  Nonperforming loans to total loans     0.41   %     0.43    %     0.23    %     0.23    %     0.17   %  
  Nonperforming assets to total assets     0.39   %     0.41    %     0.27    %     0.28    %     0.22   %  
  Nonperforming assets to earning assets     0.40   %     0.43    %     0.28    %     0.29    %     0.23   %  
  Reserve for loan losses to nonaccrual loans     316.90   %     312.87    %     730.68    %     800.79    %     669.29   %  
                                                 
  Restructured accruing loans   $ 2,742       $ 3,073        $ 15,495        $ 15,572        $ 15,838      
                                                 
  Restructured accruing loans to total loans     0.04   %     0.04    %     0.24    %     0.25    %     0.27   %  
                                                 
  TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)                            
  (In thousands)                                  
          1st Quarter
2019
  4th Quarter
2018
  3rd Quarter
2018
  2nd Quarter
2018
  1st Quarter
2018
 
  Beginning balance:   $ 14,555       $ 16,584       $ 17,257       $ 18,792       $ 20,572      
    Additions     -         -         100         -         -      
    Net (paydowns) / advances     (766 )       (11 )       (177 )       (267 )       (1,080 )    
    Charge-offs     (1,500 )       (2,018 )       (596 )       (1,268 )       (700 )    
          $ 12,289       $ 14,555       $ 16,584       $ 17,257       $ 18,792      


                     
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)                    
(In thousands except per share data)                    
        1st Quarter
2019
  4th Quarter
2018
  3rd Quarter
2018
  2nd Quarter
2018
  1st Quarter
2018
 
Interest income:                                
  Interest and fees on loans   $ 85,524   $ 83,085   $ 78,991   $ 73,620   $ 69,674  
  Taxable securities     3,746     3,506     3,276     3,127     2,745  
  Nontaxable securities     446     544     583     623     656  
  Federal funds sold     1,219     966     892     694     551  
  Other interest and dividends     2,764     2,063     316     332     383  
    Total interest income     93,699     90,164     84,058     78,396     74,009  
Interest expense:                                
  Deposits     22,145     18,957     15,210     11,714     9,621  
  Borrowed funds     2,776     2,349     1,985     2,160     1,952  
    Total interest expense     24,921     21,306     17,195     13,874     11,573  
    Net interest income     68,778     68,858     66,863     64,522     62,436  
Provision for loan losses     4,885     6,518     6,624     4,121     4,139  
    Net interest income after provision for loan losses     63,893     62,340     60,239     60,401     58,297  
Non-interest income:                                
  Service charges on deposit accounts     1,702     1,714     1,595     1,653     1,585  
  Mortgage banking     575     688     789     789     518  
  Credit card income     1,576     1,521     1,414     1,361     1,255  
  Securities gains     -     -     186     -     4  
  Increase in cash surrender value life insurance     762     780     787     786     777  
  Other operating income     327     316     294     352     276  
    Total non-interest income     4,942     5,019     5,065     4,941     4,415  
Non-interest expense:                                
  Salaries and employee benefits     14,265     12,385     13,070     13,098     13,296  
  Equipment and occupancy expense     2,259     2,163     2,193     2,113     1,954  
  Professional services     994     1,064     853     924     805  
  FDIC and other regulatory assessments     1,019     902     675     1,159     1,133  
  Other real estate owned expense     22     25     289     160     316  
  Other operating expense     6,767     6,162     5,544     6,038     5,554  
    Total non-interest expense     25,326     22,701     22,624     23,492     23,058  
    Income before income tax     43,509     44,658     42,680     41,850     39,654  
Provision for income tax     8,499     8,421     8,120     8,310     7,051  
    Net income     35,010     36,237     34,560     33,540     32,603  
  Dividends on preferred stock     -     32     -     31     -  
    Net income available to common stockholders   $ 35,010   $ 36,205   $ 34,560   $ 33,509   $ 32,603  
Basic earnings per common share   $ 0.65   $ 0.68   $ 0.65   $ 0.63   $ 0.61  
Diluted earnings per common share   $ 0.65   $ 0.67   $ 0.64   $ 0.62   $ 0.60  


 
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
                                                                     
            1st Quarter 2019   4th Quarter 2018   3rd Quarter 2018   2nd Quarter 2018   1st Quarter 2018
            Average
Balance
  Yield /
Rate
  Average
Balance
  Yield /
Rate
  Average
Balance
  Yield /
Rate
  Average
Balance
  Yield /
Rate
  Average
Balance
  Yield /
Rate
Assets:                                                            
Interest-earning assets:                                                            
  Loans, net of unearned income (1)                                                            
    Taxable   $ 6,570,920     5.26 %   $ 6,403,139     5.13 %   $ 6,203,372     5.03 %   $ 5,958,377     4.94 %   $ 5,847,443     4.81 %
    Tax-exempt (2)     30,577     3.81       29,656     3.26       30,005     3.94       30,246     3.94       36,357     4.06  
      Total loans, net of                                                            
        unearned income     6,601,497     5.25       6,432,795     5.12       6,233,377     5.03       5,988,623     4.93       5,883,800     4.80  
  Mortgage loans held for sale     1,614     6.53       3,364     3.30       3,538     4.15       3,770     4.26       3,698     4.50  
  Debt securities:                                                            
    Taxable     518,955     2.89       498,138     2.82       482,571     2.72       475,777     2.63       435,747     2.52  
    Tax-exempt (2)     87,537     2.12       98,027     2.34       105,592     2.45       112,145     2.60       120,270     2.56  
      Total securities (3)     606,492     2.78       596,165     2.74       588,163     2.67       587,922     2.62       556,017     2.53  
  Federal funds sold     192,690     2.57       156,884     2.44       163,453     2.17       141,915     1.96       131,472     1.70  
  Interest-bearing balances with banks     438,099     2.56       334,065     2.45       61,867     2.03       73,714     1.81       96,012     1.62  
  Total interest-earning assets     7,840,392     4.85       7,524,152     4.76       7,051,391     4.74       6,796,966     4.64       6,672,029     4.51  
Non-interest-earning assets:                                                            
  Cash and due from banks     74,430             74,272             76,800             68,190             68,309        
  Net premises and equipment     58,852             58,521             58,873             59,262             59,709        
  Allowance for loan losses, accrued                                                            
    interest and other assets     149,941             128,933             128,843             130,607             141,588        
      Total assets   $ 8,123,615           $ 7,784,999           $ 7,314,914           $ 7,054,003           $ 6,940,605        
                                                                     
Interest-bearing liabilities:                                                            
  Interest-bearing deposits:                                                            
  Checking   $ 942,686     0.86 %   $ 908,416     0.74 %   $ 819,807     0.67 %   $ 827,540     0.56 %   $ 899,311     0.52 %
  Savings     54,086     0.55       52,443     0.54       53,835     0.52       54,842     0.34       53,269     0.31  
  Money market     3,758,162     1.78       3,537,522     1.56       3,305,293     1.33       3,089,595     1.10       3,027,176     0.90  
  Time deposits     698,976     2.06       687,361     1.92       643,260     1.65       596,450     1.36       576,857     1.21  
    Total interest-bearing deposits     5,453,910     1.65       5,185,742     1.45       4,822,195     1.25       4,568,427     1.03       4,556,613     0.86  
  Federal funds purchased     312,989     2.59       263,125     2.36       229,016     2.09       295,309     1.87       297,051     1.60  
  Other borrowings     64,671     4.90       64,665     4.79       64,652     4.79       64,699     4.85       64,805     4.89  
  Total interest-bearing liabilities   $ 5,831,570     1.73     $ 5,513,532     1.53     $ 5,115,863     1.33     $ 4,928,435     1.13     $ 4,918,469     0.95  
Non-interest-bearing liabilities:                                                            
  Non-interest-bearing                                                            
    demand     1,524,502             1,551,366             1,511,410             1,469,194             1,389,217        
  Other liabilities     36,362             40,185             16,333             13,079             15,007        
  Stockholders' equity     735,611             689,525             678,839             650,641             621,004        
  Accumulated other comprehensive                                                            
    (loss) income     (4,430 )           (9,609 )           (7,531 )           (7,346 )           (3,092 )      
      Total liabilities and                                                            
        stockholders' equity   $ 8,123,615           $ 7,784,999           $ 7,314,914           $ 7,054,003           $ 6,940,605        
Net interest spread         3.12 %         3.23 %         3.41 %         3.51 %         3.56 %
Net interest margin         3.56 %         3.63 %         3.77 %         3.82 %         3.81 %
                                                                     
(1 ) Average loans include loans on which the accrual of interest has been discontinued.   
(2 ) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%.   
(3 ) Unrealized (losses) gains on available-for-sale debt securities are excluded from the yield calculation.   

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