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CST: 21/08/2019 19:23:09   

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

37 Days ago

BIRMINGHAM, Ala., July 15, 2019 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the three and six months ended June 30, 2019.

SECOND QUARTER 2019 HIGHLIGHTS:

  • Loans increased 19%, annualized, on a linked quarter basis and 14% year-over-year, respectively
  • Deposits increased 18%, annualized, on a linked quarter basis and 22% year-over-year, respectively
  • Diluted EPS was $0.66 for the second quarter of 2019 compared to $0.62 for the second quarter of 2018
  • Efficiency ratio improved to 34.3% compared to previous quarter
FINANCIAL SUMMARY (UNAUDITED)    
(in Thousands except share and per share amounts)    
         
    Period Ending
June 30, 2019
  Period Ending
March 31, 2019
  % Change
From Period
Ending March
31, 2019 to
Period Ending
June 30, 2019
  Period Ending
June 30, 2018
  % Change
From Period
Ending June
30, 2018 to
Period Ending
June 30, 2019
QUARTERLY OPERATING RESULTS                                    
Net Income   $ 35,633     $ 35,010     2 %   $ 33,540     6 %
Net Income Available to Common Stockholders   $ 35,602     $ 35,010     2 %   $ 33,509     6 %
Diluted Earnings Per Share   $ 0.66     $ 0.65     2 %   $ 0.62     6 %
Return on Average Assets     1.69 %     1.75 %           1.91 %      
Return on Average Common Stockholders' Equity     18.72 %     19.42 %           20.89 %      
Average Diluted Shares Outstanding     54,089,107       54,076,538             54,196,023        
                                     
YEAR-TO-DATE OPERATING RESULTS                                    
Net Income   $ 70,643                   $ 66,143     7 %
Net Income Available to Common Stockholders   $ 70,612                   $ 66,112     7 %
Diluted Earnings Per Share   $ 1.31                   $ 1.22     7 %
Return on Average Assets     1.72 %                   1.91 %      
Return on Average Common Stockholders' Equity     19.06 %                   21.13 %      
Average Diluted Shares Outstanding     54,082,857                     54,189,746        
                                     
BALANCE SHEET                                    
Total Assets   $ 8,740,237     $ 8,310,836     5 %   $ 7,084,562     23 %
Loans     6,967,886       6,659,908     5 %     6,129,649     14 %
Non-interest-bearing Demand Deposits     1,576,959       1,572,703     - %     1,481,447     6 %
Total Deposits     7,404,794       7,083,666     5 %     6,085,682     22 %
Stockholders' Equity     778,957       745,586     4 %     655,114     19 %
                                     

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $35.6 million for the quarter ended June 30, 2019, compared to net income and net income available to common stockholders of $33.5 million for the same quarter in 2018.  Basic and diluted earnings per common share were $0.67 and $0.66, respectively, for the second quarter of 2019, compared to $0.63 and $0.62, respectively, for the second quarter of 2018.

Annualized return on average assets was 1.69% and annualized return on average common stockholders’ equity was 18.72% for the second quarter of 2019, compared to 1.91% and 20.89%, respectively, for the second quarter of 2018.

Net interest income was $70.1 million for the second quarter of 2019, compared to $68.8 million for the first quarter of 2019 and $64.5 million for the second quarter of 2018.  The net interest margin in the second quarter of 2019 was 3.44% compared to 3.56% in the first quarter of 2019 and 3.82% in the second quarter of 2018.  Linked quarter increases in average rates paid on deposits drove an unfavorable rate change while increases in average balances in loans and equity drove favorable volume change.

Average loans for the second quarter of 2019 were $6.79 billion, an increase of $187.6 million, or 11% annualized, over average loans of $6.60 billion for the first quarter of 2019, and an increase of $800.4 million, or 13%, over average loans of $5.99 billion for the second quarter of 2018.

Average total deposits for the second quarter of 2019 were $7.18 billion, an increase of $203.0 million, or 12% annualized, over average total deposits of $6.98 billion for the first quarter of 2019, and an increase of $1.14 billion, or 19%, over average total deposits of $6.04 billion for the second quarter of 2018.

Non-performing assets to total assets were 0.46% for the second quarter of 2019, an increase of five basis points compared to 0.41% for the first quarter of 2019 and an increase of 23 basis points compared to 0.23% for the second quarter of 2018.  Net charge-offs to average loans was 0.22%, a two basis point increase compared to 0.20% for the first quarter of 2019 and an increase of nine basis points compared to 0.13% for the second quarter of 2018.  We recorded a $4.9 million provision for loan losses in the second quarter of 2019 compared to $4.9 million in the first quarter of 2019 and $4.1 million in the second quarter of 2018.  The allowance for loan loss as a percentage of total loans was 1.02% at June 30, 2019, a decrease of 3 basis points compared to 1.05% at March 31, 2019 and June 30, 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 for the second quarter of 2019 increased $837,000, or 17%, to $5.8 million from $4.9 million in the second quarter of 2018.  Deposit service charges increased $133,000 in the second quarter of 2019, or 8%, compared to the second quarter of 2018.  The number of transaction deposit accounts increased approximately 8% from June 30, 2018 to June 30, 2019.  Mortgage banking revenue increased $298,000, or 38%, from the second quarter of 2018 to the second quarter of 2019.  Mortgage loan originations increased approximately 28% during the second quarter of 2019 when compared to the same quarter in 2018.  Credit card revenue increased $380,000, or 28%, to $1.7 million during the second quarter of 2019, compared to $1.3 million during the second quarter of 2018.  The number of accounts increased approximately 35% and the aggregate amount of sales on all accounts increased 28% during the second quarter of 2019.  Other income for the second quarter of 2019 increased $40,000, or 11%, to $392,000 from $352,000 in the second quarter of 2018.

Non-interest expense for the second quarter of 2019 increased $2.5 million, or 11%, to $26.0 million from $23.5 million in the second quarter of 2018, and increased $696,000, or 3%, on a linked quarter basis.  Salary and benefit expense for the second quarter of 2019 increased $1.2 million, or 10%, to $14.3 million from $13.1 million in the second quarter of 2018, and increased $74,000, or 1%, on a linked quarter basis. The number of FTE employees increased from 447 at June 30, 2018 to 495 at June 30, 2019, or 11%.  Equipment and occupancy expense increased $174,000, or 8%, to $2.3 million in the second quarter of 2019, from $2.1 million in the second quarter of 2018, and increased $28,000 on a linked-quarter basis.  Professional services expense increased $267,000, or 29%, to $1.2 million in the second quarter of 2019, from $924,000 in the second quarter of 2018, and increased $197,000, or 20%, from $994,000 on a linked-quarter basis.  FDIC and other regulatory assessments decreased $78,000, or 7%, to $1.1 million in the second quarter of 2019, from $1.1 million in the second quarter of 2018.  Lower assessment rates result from the FDIC’s Bank Insurance Fund reaching their targeted level of 1.35%.  Expenses associated with other real estate owned increased $52,000, or 33%, to $212,000 in the second quarter of 2019, from $160,000 in the second quarter of 2018.  Updated appraisals resulted in some write-downs in values of properties.  Other operating expenses for the second quarter of 2019 increased $874,000, or 15%, to $6.9 million from $6.0 million in the second quarter of 2018, and increased $145,000, or 2%, on a linked-quarter basis.  Increases in business development and Federal Reserve Bank service charges contributed to this increase in other operating expenses.  The efficiency ratio was 34.30% during the second quarter of 2019 compared to 33.82% during the second quarter of 2018 and compared to 34.35% during the first of 2019.

Income tax expense increased $1.0 million, or 12%, to $9.3 million in the second quarter of 2019, compared to $8.3 million in the second quarter of 2018.  Our effective tax rate was 20.74% for the second quarter of 2019 compared to 19.86% for the second 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 second quarters of 2019 and 2018 of $186,000 and $457,000, 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 June 30, 2019   At March 31, 2019   At December 31, 2018   At September 30, 2018   At June 30, 2018
Book value per share - GAAP $ 14.55     $ 13.94     $ 13.40     $ 12.81     $ 12.33  
Total common stockholders' equity - GAAP   778,957       745,586       715,203       681,510       655,114  
  Adjustments:                                      
  Adjusted for goodwill and core deposit intangible asset   14,314       14,381       14,449       14,517       14,584  
Tangible common stockholders' equity - non-GAAP $ 764,643     $ 731,205     $ 700,754     $ 666,993     $ 640,530  
Tangible book value per share - non-GAAP $ 14.29     $ 13.67     $ 13.13     $ 12.54     $ 12.05  
                                         
Stockholders' equity to total assets - GAAP   8.91 %     8.97 %     8.93 %     9.07 %     9.25 %
Total assets - GAAP $ 8,740,237     $ 8,310,836     $ 8,007,382     $ 7,517,833     $ 7,084,562  
  Adjustments:                                      
  Adjusted for goodwill and core deposit intangible asset   14,314       14,381       14,449       14,517       14,584  
Total tangible assets - non-GAAP $ 8,725,923     $ 8,296,455     $ 7,992,933     $ 7,503,316     $ 7,069,978  
Tangible common equity to total tangible assets - non-GAAP   8.76 %     8.81 %     8.77 %     8.89 %     9.06 %
                                       

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, Sarasota 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)                                      
  2nd Quarter 2019   1st Quarter 2019   4th Quarter 2018   3rd Quarter 2018   2nd Quarter 2018
CONSOLIDATED STATEMENT OF INCOME                                      
Interest income $ 97,787     $ 93,699     $ 90,164     $ 84,058     $ 78,396  
Interest expense   27,702       24,921       21,306       17,195       13,874  
Net interest income   70,085       68,778       68,858       66,863       64,522  
Provision for loan losses   4,884       4,885       6,518       6,624       4,121  
Net interest income after provision for loan losses   65,201       63,893       62,340       60,239       60,401  
Non-interest income   5,778       4,942       5,019       5,065       4,941  
Non-interest expense   26,022       25,326       22,701       22,624       23,492  
Income before income tax   44,957       43,509       44,658       42,680       41,850  
Provision for income tax   9,324       8,499       8,421       8,120       8,310  
Net income   35,633       35,010       36,237       34,560       33,540  
Preferred stock dividends   31       -       32       -       31  
Net income available to common stockholders $ 35,602     $ 35,010     $ 36,205     $ 34,560     $ 33,509  
Earnings per share - basic $ 0.67     $ 0.65     $ 0.68     $ 0.65     $ 0.63  
Earnings per share - diluted $ 0.66     $ 0.65     $ 0.67     $ 0.64     $ 0.62  
Average diluted shares outstanding   54,089,107       54,076,538       54,109,450       54,191,222       54,196,023  
                                       
CONSOLIDATED BALANCE SHEET DATA                                      
Total assets $ 8,740,237     $ 8,310,836     $ 8,007,382     $ 7,517,833     $ 7,084,562  
Loans   6,967,886       6,659,908       6,533,499       6,363,531       6,129,649  
Debt securities   658,221       631,946       590,184       578,271       583,799  
Non-interest-bearing demand deposits   1,576,959       1,572,703       1,557,341       1,504,447       1,481,447  
Total deposits   7,404,794       7,083,666       6,915,708       6,505,351       6,085,682  
Borrowings   64,684       64,675       64,666       64,657       64,648  
Stockholders' equity $ 778,957     $ 745,586     $ 715,203     $ 681,510     $ 655,114  
                                       
Shares outstanding   53,526,882       53,495,208       53,375,195       53,197,807       53,150,733  
Book value per share $ 14.55     $ 13.94     $ 13.40     $ 12.81     $ 12.33  
Tangible book value per share (1) $ 14.29     $ 13.67     $ 13.13     $ 12.54     $ 12.05  
                                       
SELECTED FINANCIAL RATIOS (Annualized)                                      
Net interest margin   3.44 %     3.56 %     3.63 %     3.77 %     3.82 %
Return on average assets   1.69 %     1.75 %     1.85 %     1.87 %     1.91 %
Return on average common stockholders' equity   18.72 %     19.42 %     21.13 %     20.42 %     20.89 %
Efficiency ratio   34.30 %     34.35 %     30.73 %     31.45 %     33.82 %
Non-interest expense to average earning assets   1.28 %     1.31 %     1.20 %     1.27 %     1.39 %
                                       
CAPITAL RATIOS (2)                                      
Common equity tier 1 capital to risk-weighted assets   10.18 %     10.30 %     10.12 %     10.08 %     10.08 %
Tier 1 capital to risk-weighted assets   10.19 %     10.30 %     10.13 %     10.09 %     10.08 %
Total capital to risk-weighted assets   12.02 %     12.21 %     12.05 %     12.05 %     12.10 %
Tier 1 capital to average assets   9.00 %     9.03 %     9.07 %     9.28 %     9.21 %
Tangible common equity to total tangible assets (1)   8.76 %     8.81 %     8.77 %     8.89 %     9.06 %
                                       
(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)                
      June 30, 2019   June 30, 2018   % Change
ASSETS                
Cash and due from banks $ 68,841     $ 68,344     1   %
Interest-bearing balances due from depository institutions   409,052       81,742     400   %
Federal funds sold   408,289       15,585     2,520   %
  Cash and cash equivalents   886,182       165,671     435   %
Available for sale debt securities, at fair value   657,971       583,549     13   %
Held to maturity debt securities (fair value of $250 at June 30, 2019 and June 30, 2018)   250       250     -   %
Mortgage loans held for sale   9,446       4,605     105   %
Loans   6,967,886       6,129,649     14   %
Less allowance for loan losses   (71,386 )     (64,239 )   11   %
  Loans, net   6,896,500       6,065,410     14   %
Premises and equipment, net   57,195       58,299     (2 ) %
Goodwill and other identifiable intangible assets   14,314       14,584     (2 ) %
Other assets   218,379       192,194     14   %
  Total assets $ 8,740,237     $ 7,084,562     23   %
LIABILITIES AND STOCKHOLDERS' EQUITY                
Liabilities:                
Deposits:                
  Non-interest-bearing $ 1,576,959     $ 1,481,447     6   %
  Interest-bearing   5,827,835       4,604,235     27   %
    Total deposits   7,404,794       6,085,682     22   %
Federal funds purchased   459,449       262,659     75   %
Other borrowings   64,684       64,648     -   %
Other liabilities   32,353       16,459     97   %
  Total liabilities   7,961,280       6,429,448     24   %
Stockholders' equity:                
  Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at                
    June 30, 2019 and June 30, 2018   -       -        
  Common stock, par value $0.001 per share; 100,000,000 shares authorized; 53,526,882 shares                
    issued and outstanding at June 30, 2019, and 53,150,733 shares issued and outstanding                
    at June 30, 2018   54       53     2   %
  Additional paid-in capital   218,658       217,765     -   %
  Retained earnings   555,425       443,972     25   %
  Accumulated other comprehensive income (loss)   4,318       (7,178 )   NM    
    Total stockholders' equity attributable to ServisFirst Bancshares, Inc.   778,455       654,612     19   %
  Noncontrolling interest   502       502     -   %
    Total stockholders' equity   778,957       655,114     19   %
  Total liabilities and stockholders' equity $ 8,740,237     $ 7,084,562     23   %


                     
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)                    
(In thousands except per share data)                        
    Three Months Ended June 30,   Six Months Ended June 30,  
    2019     2018   2019     2018  
Interest income:                        
  Interest and fees on loans $ 88,610     $ 73,620   $ 174,134     $ 143,294  
  Taxable securities   4,193       3,127     7,939       5,872  
  Nontaxable securities   393       623     839       1,279  
  Federal funds sold   1,998       694     3,217       1,245  
  Other interest and dividends   2,593       332     5,357       715  
    Total interest income   97,787       78,396     191,486       152,405  
Interest expense:                        
  Deposits   24,240       11,714     46,385       21,335  
  Borrowed funds   3,462       2,160     6,238       4,112  
    Total interest expense   27,702       13,874     52,623       25,447  
    Net interest income   70,085       64,522     138,863       126,958  
Provision for loan losses   4,884       4,121     9,769       8,260  
    Net interest income after provision for loan losses   65,201       60,401     129,094       118,698  
Non-interest income:                        
  Service charges on deposit accounts   1,786       1,653     3,488       3,238  
  Mortgage banking   1,087       789     1,662       1,307  
  Credit card income   1,741       1,361     3,317       2,616  
  Securities (losses) gains   (6 )     -     (6 )     4  
  Increase in cash surrender value life insurance   778       786     1,540       1,563  
  Other operating income   392       352     719       629  
    Total non-interest income   5,778       4,941     10,720       9,357  
Non-interest expense:                        
  Salaries and employee benefits   14,339       13,098     28,604       26,394  
  Equipment and occupancy expense   2,287       2,113     4,546       4,067  
  Professional services   1,191       924     2,185       1,729  
  FDIC and other regulatory assessments   1,081       1,159     2,100       2,292  
  Other real estate owned expense   212       160     234       476  
  Other operating expense   6,912       6,038     13,679       11,593  
    Total non-interest expense   26,022       23,492     51,348       46,551  
    Income before income tax   44,957       41,850     88,466       81,504  
Provision for income tax   9,324       8,310     17,823       15,361  
       Net income   35,633       33,540     70,643       66,143  
  Dividends on preferred stock   31       31     31       31  
       Net income available to common stockholders $ 35,602     $ 33,509   $ 70,612     $ 66,112  
Basic earnings per common share $ 0.67     $ 0.63   $ 1.32     $ 1.24  
Diluted earnings per common share $ 0.66     $ 0.62   $ 1.31     $ 1.22  


                             
LOANS BY TYPE (UNAUDITED)                            
(In thousands)                            
                               
    2nd Quarter 2019   1st Quarter 2019   4th Quarter 2018   3rd Quarter 2018   2nd Quarter 2018
Commercial, financial and agricultural $ 2,633,529   $ 2,522,136   $ 2,513,225   $ 2,478,788   $ 2,345,879
Real estate - construction   603,779     556,219     533,192     543,611     522,788
Real estate - mortgage:                            
  Owner-occupied commercial   1,538,279     1,500,595     1,463,887     1,430,111     1,383,882
  1-4 family mortgage   630,963     629,285     621,634     610,460     584,133
  Other mortgage   1,496,512     1,394,611     1,337,068     1,236,954     1,225,906
Subtotal: Real estate - mortgage   3,665,754     3,524,491     3,422,589     3,277,525     3,193,921
Consumer   64,824     57,062     64,493     63,607     67,061
Total loans $ 6,967,886   $ 6,659,908   $ 6,533,499   $ 6,363,531   $ 6,129,649


                                   
SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)                                  
(Dollars in thousands)                                  
      2nd Quarter 2019   1st Quarter 2019   4th Quarter 2018   3rd Quarter 2018   2nd Quarter 2018
Allowance for loan losses:                                      
Beginning balance $ 70,207       $ 68,600        $ 66,879        $ 64,239        $ 62,050    
Loans charged off:                                      
  Commercial, financial and agricultural   3,610         3,037         4,685         3,923         1,732    
  Real estate - mortgage   169         50         173         48         440    
  Consumer   63         218         72         76         47    
    Total charge offs   3,842         3,305         4,930         4,047         2,219    
Recoveries:                                      
  Commercial, financial and agricultural   117         12         120         52         173    
  Real estate - construction   -         1         4         4         97    
  Real estate - mortgage   4         7         1         1         2    
  Consumer   16         7         8         6         15    
    Total recoveries   137         27         133         63         287    
  Net charge-offs   3,705         3,278         4,797         3,984         1,932    
  Provision for loan losses   4,884         4,885         6,518         6,624         4,121    
  Ending balance $ 71,386       $ 70,207       $ 68,600       $ 66,879       $ 64,239    
                                           
  Allowance for loan losses to total loans   1.02   %     1.05    %     1.05    %     1.05    %     1.05   %
  Allowance for loan losses to total average                                      
    loans   1.05   %     1.06    %     1.07    %     1.07    %     1.07   %
  Net charge-offs to total average loans   0.22   %     0.20    %     0.30    %     0.25    %     0.13   %
  Provision for loan losses to total average                                      
    loans   0.29   %     0.30    %     0.40    %     0.42    %     0.28   %
  Nonperforming assets:                                      
    Nonaccrual loans $ 21,840       $ 22,154        $ 21,926        $ 9,153        $ 8,022    
    Loans 90+ days past due and accruing   10,299         5,021         5,844         5,714         6,081    
    Other real estate owned and                                      
      repossessed assets   5,649         5,480         5,169         5,714         5,937    
  Total $ 37,788       $ 32,655       $ 32,939       $ 20,581       $ 20,040    
                                           
  Nonperforming loans to total loans   0.46   %     0.41    %     0.43    %     0.23    %     0.23   %
  Nonperforming assets to total assets   0.43   %     0.39    %     0.41    %     0.27    %     0.28   %
  Nonperforming assets to earning assets   0.44   %     0.40    %     0.43    %     0.28    %     0.29   %
  Reserve for loan losses to nonaccrual loans   326.86   %     316.90    %     312.87    %     730.68    %     800.79   %
                                           
  Restructured accruing loans $ 2,742       $ 2,742        $ 3,073        $ 15,495        $ 15,572    
                                           
  Restructured accruing loans to total loans   0.04   %     0.04    %     0.04    %     0.24    %     0.25   %
                                           
  TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)                          
  (In thousands)                                
      2nd Quarter 2019   1st Quarter 2019   4th Quarter 2018   3rd Quarter 2018   2nd Quarter 2018
  Beginning balance: $ 12,289       $ 14,555       $ 16,584       $ 17,257       $ 18,792    
    Additions   -         -         -         100         -    
    Net (paydowns) / advances   (12 )       (766 )       (11 )       (177 )       (267 )  
    Charge-offs   (993 )       (1,500 )       (2,018 )       (596 )       (1,268 )  
      $ 11,284       $ 12,289       $ 14,555       $ 16,584       $ 17,257    


                     
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)                    
(In thousands except per share data)                    
    2nd Quarter
2019
  1st Quarter
2019
  4th Quarter
2018
  3rd Quarter
2018
  2nd Quarter
2018
 
Interest income:                              
  Interest and fees on loans $ 88,610     $ 85,524   $ 83,085   $ 78,991   $ 73,620  
  Taxable securities   4,193       3,746     3,506     3,276     3,127  
  Nontaxable securities   393       446     544     583     623  
  Federal funds sold   1,998       1,219     966     892     694  
  Other interest and dividends   2,593       2,764     2,063     316     332  
    Total interest income   97,787       93,699     90,164     84,058     78,396  
Interest expense:                              
  Deposits   24,240       22,145     18,957     15,210     11,714  
  Borrowed funds   3,462       2,776     2,349     1,985     2,160  
    Total interest expense   27,702       24,921     21,306     17,195     13,874  
    Net interest income   70,085       68,778     68,858     66,863     64,522  
Provision for loan losses   4,884       4,885     6,518     6,624     4,121  
    Net interest income after provision for loan losses   65,201       63,893     62,340     60,239     60,401  
Non-interest income:                              
  Service charges on deposit accounts   1,786       1,702     1,714     1,595     1,653  
  Mortgage banking   1,087       575     688     789     789  
  Credit card income   1,741       1,576     1,521     1,414     1,361  
  Securities gains   (6 )     -     -     186     -  
  Increase in cash surrender value life insurance   778       762     780     787     786  
  Other operating income   392       327     316     294     352  
    Total non-interest income   5,778       4,942     5,019     5,065     4,941  
Non-interest expense:                              
  Salaries and employee benefits   14,339       14,265     12,385     13,070     13,098  
  Equipment and occupancy expense   2,287       2,259     2,163     2,193     2,113  
  Professional services   1,191       994     1,064     853     924  
  FDIC and other regulatory assessments   1,081       1,019     902     675     1,159  
  Other real estate owned expense   212       22     25     289     160  
  Other operating expense   6,912       6,767     6,162     5,544     6,038  
    Total non-interest expense   26,022       25,326     22,701     22,624     23,492  
    Income before income tax   44,957       43,509     44,658     42,680     41,850  
Provision for income tax   9,324       8,499     8,421     8,120     8,310  
       Net income   35,633       35,010     36,237     34,560     33,540  
  Dividends on preferred stock   31       -     32     -     31  
       Net income available to common stockholders $ 35,602     $ 35,010   $ 36,205   $ 34,560   $ 33,509  
Basic earnings per common share $ 0.67     $ 0.65   $ 0.68   $ 0.65   $ 0.63  
Diluted earnings per common share $ 0.66     $ 0.65   $ 0.67   $ 0.64   $ 0.62  


 
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
                                                                   
          2nd Quarter 2019   1st Quarter 2019   4th Quarter 2018   3rd Quarter 2018   2nd 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 $ 6,756,927     5.24 %   $ 6,570,920     5.26 %   $ 6,403,139     5.13 %   $ 6,203,372     5.03 %   $ 5,958,377     4.94 %
    Tax-exempt (2)   32,124     3.83       30,577     3.81       29,656     3.26       30,005     3.94       30,246     3.94  
      Total loans, net of                                                          
        unearned income   6,789,051     5.23       6,601,497     5.25       6,432,795     5.12       6,233,377     5.03       5,988,623     4.93  
  Mortgage loans held for sale   5,208     3.85       1,614     6.53       3,364     3.30       3,538     4.15       3,770     4.26  
  Debt securities:                                                          
    Taxable   565,491     2.97       518,955     2.89       498,138     2.82       482,571     2.72       475,777     2.63  
    Tax-exempt (2)   77,364     2.10       87,537     2.12       98,027     2.34       105,592     2.45       112,145     2.60  
      Total securities (3)   642,855     2.86       606,492     2.78       596,165     2.74       588,163     2.67       587,922     2.62  
  Federal funds sold   323,714     2.48       192,690     2.57       156,884     2.44       163,453     2.17       141,915     1.96  
  Interest-bearing balances with   banks   411,481     2.53       438,099     2.56       334,065     2.45       61,867     2.03       73,714     1.81  
  Total interest-earning assets $ 8,172,309     4.80 %   $ 7,840,392     4.85 %   $ 7,524,152     4.76 %   $ 7,051,391     4.74 %   $ 6,796,966     4.64 %
Non-interest-earning assets:                                                          
  Cash and due from banks   76,988             74,430             74,272             76,800             68,190        
  Net premises and equipment   58,607             58,852             58,521             58,873             59,262        
  Allowance for loan losses, accrued                                                          
    interest and other assets   156,264             149,941             128,933             128,843             130,607        
      Total assets $ 8,464,168           $ 8,123,615           $ 7,784,999           $ 7,314,914           $ 7,054,003        
                                                                   
Interest-bearing liabilities:                                                          
  Interest-bearing deposits:                                                          
  Checking $ 909,847     0.88 %   $ 942,686     0.86 %   $ 908,416     0.74 %   $ 819,807     0.67 %   $ 827,540     0.56 %
  Savings   54,391     0.57       54,086     0.55       52,443     0.54       53,835     0.52       54,842     0.34  
  Money market   3,932,459     1.88       3,758,162     1.78       3,537,522     1.56       3,305,293     1.33       3,089,595     1.10  
  Time deposits   694,414     2.16       698,976     2.06       687,361     1.92       643,260     1.65       596,450     1.36  
    Total interest-bearing deposits   5,591,111     1.74       5,453,910     1.65       5,185,742     1.45       4,822,195     1.25       4,568,427     1.03  
  Federal funds purchased   418,486     2.57       312,989     2.59       263,125     2.36       229,016     2.09       295,309     1.87  
  Other borrowings   64,680     4.84       64,671     4.90       64,665     4.79       64,652     4.79       64,699     4.85  
  Total interest-bearing liabilities $ 6,074,277     1.83 %   $ 5,831,570     1.73 %   $ 5,513,532     1.53 %   $ 5,115,863     1.33 %   $ 4,928,435     1.13 %
Non-interest-bearing liabilities:                                                          
  Non-interest-bearing                                                          
    checking   1,591,722             1,524,502             1,551,366             1,511,410             1,469,194        
  Other liabilities   35,161             36,362             40,185             16,333             13,079        
  Stockholders' equity   763,742             735,611             689,525             678,839             650,641        
  Accumulated other comprehensive                                                          
    loss   (734 )           (4,430 )           (9,609 )           (7,531 )           (7,346 )      
      Total liabilities and                                                          
        stockholders' equity $ 8,464,168           $ 8,123,615           $ 7,784,999           $ 7,314,914           $ 7,054,003        
Net interest spread       2.97 %         3.12 %         3.23 %         3.41 %         3.51 %
Net interest margin       3.44 %         3.56 %         3.63 %         3.77 %         3.82 %
                                                                   
(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 on available-for-sale debt securities are excluded from the yield calculation.

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