BIRMINGHAM, Ala., Oct. 16, 2017 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NASDAQ:SFBS), today announced earnings and operating results for the quarter and nine months ended September 30, 2017.

THIRD QUARTER 2017 HIGHLIGHTS:
  • Net income of $25.3 million and diluted EPS of $0.47 for the third quarter of 2017, an increase of 21% year over year
  • Diluted EPS of $1.33 for the nine months ended September 30, 2017, a 19% increase year over year 
  • Loans and deposits increased 21% and 30%, respectively, for the quarter on an annualized basis
  • Loans and deposits increased 22% and 14%, respectively, year over year

Tom Broughton, President and CEO, said, "We continue to see strong loan and deposit growth throughout our southeastern footprint while continuing to increase our market share."  Bud Foshee, CFO, stated, "We are pleased with our improvement in all key financial metrics in the quarter and are pleased that our ROAA exceeded 1.50% and our efficiency ratio reached 34% in the third quarter."
FINANCIAL SUMMARY (UNAUDITED)                   
(in Thousands except share and per share amounts)                   
                                           
On December 20, 2016, the Company effected a two-for-one split of its common stock in the form of a stock dividend.  All shares and per share information for prior periods in this release have been adjusted to give effect to this stock split.  
        Period Ending September 30, 2017   Period Ending June 30, 2017   % Change From Period Ending June 30, 2017 to Period Ending September 30, 2017   Period Ending September 30, 2016   % Change From Period Ending September 30, 2016 to Period Ending September 30, 2017  
QUARTERLY OPERATING RESULTS                                      
Net Income   $ 25,259     $ 24,164     5 %   $ 20,909     21 %  
Net Income Available to Common Stockholders   $ 25,259     $ 24,133     5 %   $ 20,909     21 %  
Diluted Earnings Per Share   $ 0.47     $ 0.45     4 %   $ 0.39     21 %  
Return on Average Assets     1.55 %     1.55 %           1.39 %        
Return on Average Common Stockholders' Equity     17.28 %     17.36 %           16.66 %        
Average Diluted Shares Outstanding     54,099,672       54,100,604             53,879,328          
                                           
YEAR-TO-DATE OPERATING RESULTS                                      
Net Income   $ 71,942                   $ 59,741     20 %  
Net Income Available to Common Stockholders   $ 71,911                   $ 59,718     20 %  
Diluted Earnings Per Share   $ 1.33                   $ 1.12     19 %  
Return on Average Assets     1.52 %                   1.43 %        
Return on Average Common Stockholders' Equity     17.24 %                   16.60 %        
Average Diluted Shares Outstanding     54,111,208                     53,489,918          
                                           
BALANCE SHEET                                      
Total Assets   $ 6,712,103     $ 6,329,599     6 %   $ 6,002,621     12 %  
Loans     5,628,765       5,343,688     5 %     4,631,822     22 %  
Non-interest-bearing Demand Deposits     1,405,965       1,373,353     2 %     1,269,726     11 %  
Total Deposits     5,796,901       5,394,810     7 %     5,081,128     14 %  
Stockholders' Equity     590,213       567,086     4 %     507,866     16 %  

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $25.3 million for the quarter ended September 30, 2017, compared to net income and net income available to common stockholders of $20.9 million for the same quarter in 2016.  Basic and diluted earnings per common share were $0.48 and $0.47, respectively, for the third quarter of 2017, compared to $0.40 and $0.39, respectively, for the third quarter of 2016.

Return on average assets was 1.55% and return on average equity was 17.28% for the third quarter of 2017, compared to 1.39% and 16.66%, respectively, for the third quarter of 2016.

Net interest income was $58.4 million for the third quarter of 2017, compared to $55.6 million for the second quarter of 2017 and $47.9 million for the third quarter of 2016.  The net interest margin in the third quarter of 2017 was 3.77%, flat from the second quarter of 2017 and an increase of 42 basis points from the third quarter of 2016.  The increase in net interest income on a linked quarter basis is attributable to a $206.5 million increase in average loans outstanding, a $24.7 million increase in non-interest-bearing deposits and a $22.3 million increase in average equity, together resulting in a positive mix change in our balance sheet.  The average yield on loans increased by six basis points to 4.66% and the average rate paid on deposits increased by eight basis points to 0.72% on a linked quarter basis.

Average loans for the third quarter of 2017 were $5.44 billion, an increase of $206.5 million, or 4%, over average loans of $5.23 billion for the second quarter of 2017, and an increase of $863.7 million, or 19%, over average loans of $4.58 billion for the third quarter of 2016.

Average total deposits for the third quarter of 2017 were $5.53 billion, an increase of $260.4 million, or 5%, over average total deposits of $5.27 billion for the second quarter of 2017, and an increase of $550.7 million, or 11%, over average total deposits of $4.98 billion for the third quarter of 2016.

Non-performing assets to total assets were 0.28% for the third quarter of 2017, an increase of five basis points compared to 0.23% for the second quarter of 2017 and an increase of 12 basis points compared to 0.16% for the third quarter of 2016.  Net credit charge-offs to average loans were 0.10%, a 15 basis point decrease compared to 0.25% for the second quarter of 2017 and a three basis point decrease compared to 0.13% for the third quarter of 2016.  We recorded a $4.8 million provision for loan losses in the third quarter of 2017 compared to $4.4 million in the second quarter of 2017 and $3.5 million in the third quarter of 2016.  The allowance for loan loss as a percentage of total loans was 1.04% at September 30, 2017 compared to 1.03% at June 30, 2017 and 1.05% at September 30, 2016.  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 third quarter of 2017 was $4.8 million, flat with the third quarter of 2016.  Service charges on deposit accounts increased $100,000 while mortgage banking revenue decreased by approximately $134,000 in the third quarter of 2017 compared to the third quarter of 2016.  Credit card income was flat at $1.1 million due to higher accruals for awards during the third quarter of 2017 compared to the third quarter of 2016.

Non-interest expense for the third quarter of 2017 increased $1.3 million, or 7%, to $21.5 million from $20.2 million in the third quarter of 2016, and decreased $378,000, or 2%, on a linked quarter basis.  Salary and benefit expense for the third quarter of 2017 increased $1.4 million, or 13%, to $12.4 million from $11.0 million in the third quarter of 2016, and increased $397,000, or 3%, on a linked quarter basis.  Professional service expenses decreased by $377,000, or 32%, to $805,000 for the third quarter of 2017 compared to $1.2 million for the third quarter of 2016, a result of lower legal expenses.  Other operating expense for the third quarter of 2017 increased $507,000, or 10%, to $5.5 million from $5.0 million in the third quarter of 2016.

Income tax expense increased $3.4 million, or 42%, to $11.6 million in the third quarter of 2017, compared to $8.2 million in the third quarter of 2016.  We recognized excess tax benefits from the exercise and vesting of stock options and restricted stock of $757,000 in the third quarter of 2017, compared to $1.2 million in the third quarter of 2016.  Our effective tax rate for the third quarter of 2017 and 2016 was 31.5% and 28.1%, 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 September 30, 2017   At June 30, 2017   At March 31, 2017   At December 31, 2016   At September 30, 2016  
Book value per share - GAAP   $ 11.14     $ 10.72     $ 10.32     $ 9.93     $ 9.65    
Total common stockholders' equity - GAAP     590,213       567,086       545,148       522,889       507,866    
  Adjustments:                                          
  Adjusted for goodwill and core deposit intangible asset     14,787       14,855       14,924       14,996       15,073    
Tangible common stockholders' equity - non-GAAP   $ 575,426     $ 552,231     $ 530,224     $ 507,893     $ 492,793    
Tangible book value per share - non-GAAP   $ 10.86     $ 10.44     $ 10.04     $ 9.65     $ 9.37    
                                             
Stockholders' equity to total assets - GAAP     8.79 %     8.96 %     8.60 %     8.21 %     8.46 %  
Total assets - GAAP   $ 6,712,103     $ 6,329,599     $ 6,336,165     $ 6,370,448     $ 6,002,621    
  Adjustments:                                          
  Adjusted for goodwill and core deposit intangible asset     14,787       14,855       14,924       14,996       15,073    
Total tangible assets - non-GAAP   $ 6,697,316     $ 6,314,744     $ 6,321,241     $ 6,355,452     $ 5,987,548    
Tangible common equity to total tangible assets - non-GAAP     8.59 %     8.75 %     8.39 %     7.99 %     8.23 %  

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 BankDavis Mange (205) 949-3420 dmange@servisfirstbank.com
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)                                        
(In thousands except share and per share data)                                        
    3rd Quarter 2017   2nd Quarter 2017   1st Quarter 2017   4th Quarter 2016   3rd Quarter 2016
CONSOLIDATED STATEMENT OF INCOME                                        
Interest income   $ 67,641     $ 63,538     $ 59,517     $ 56,200     $ 54,691  
Interest expense     9,245       7,971       7,465       7,091       6,773  
Net interest income     58,396       55,567       52,052       49,109       47,918  
Provision for loan losses     4,803       4,381       4,986       4,075       3,464  
Net interest income after provision for loan losses     53,593       51,186       47,066       45,034       44,454  
Non-interest income     4,790       4,805       4,546       6,039       4,791  
Non-interest expense     21,497       21,875       21,267       22,037       20,162  
Income before income tax     36,886       34,116       30,345       29,036       29,083  
Provision for income tax     11,627       9,952       7,826       7,298       8,174  
Net income     25,259       24,164       22,519       21,738       20,909  
Preferred stock dividends     -       31       -       24       -  
Net income available to common stockholders   $ 25,259     $ 24,133     $ 22,519     $ 21,714     $ 20,909  
Earnings per share - basic   $ 0.48     $ 0.46     $ 0.43     $ 0.41     $ 0.40  
Earnings per share - diluted   $ 0.47     $ 0.45     $ 0.42     $ 0.40     $ 0.39  
Average diluted shares outstanding     54,099,672       54,100,604       54,133,722       53,961,160       53,879,328  
                                         
CONSOLIDATED BALANCE SHEET DATA                                        
Total assets   $ 6,712,103     $ 6,329,599     $ 6,336,165     $ 6,370,448     $ 6,002,621  
Loans     5,628,765       5,343,688       5,151,984       4,911,770       4,631,822  
Debt securities     522,724       518,065       526,023       447,427       402,733  
Non-interest-bearing demand deposits     1,405,965       1,373,353       1,292,440       1,281,605       1,269,726  
Total deposits     5,796,901       5,394,810       5,361,532       5,420,311       5,081,128  
Borrowings     54,975       55,075       55,169       55,262       55,356  
Stockholders' equity   $ 590,213     $ 567,086     $ 545,148     $ 522,889     $ 507,866  
                                         
Shares outstanding     52,970,310       52,909,362       52,812,396       52,636,896       52,610,896  
Book value per share   $ 11.14     $ 10.72     $ 10.32     $ 9.93     $ 9.65  
Tangible book value per share (1)   $ 10.86     $ 10.44     $ 10.04     $ 9.65     $ 9.37  
                                         
SELECTED FINANCIAL RATIOS                                        
Net interest margin     3.77 %     3.77 %     3.53 %     3.30 %     3.35 %
Return on average assets     1.55 %     1.55 %     1.45 %     1.39 %     1.39 %
Return on average common stockholders' equity     17.28 %     17.36 %     17.09 %     16.71 %     16.66 %
Efficiency ratio     34.02 %     36.23 %     37.58 %     39.96 %     38.25 %
Non-interest expense to average earning assets     1.38 %     1.47 %     1.43 %     1.46 %     1.39 %
                                         
CAPITAL RATIOS (2)                                        
Common equity tier 1 capital to risk-weighted assets     9.60 %     9.72 %     9.67 %     9.78 %     9.91 %
Tier 1 capital to risk-weighted assets     9.61 %     9.73 %     9.68 %     9.78 %     9.92 %
Total capital to risk-weighted assets     11.51 %     11.67 %     11.66 %     11.84 %     12.03 %
Tier 1 capital to average assets     8.91 %     8.88 %     8.46 %     8.22 %     8.20 %
Tangible common equity to total tangible assets (1)     8.59 %     8.75 %     8.39 %     7.99 %     8.23 %
                                         
(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)                    
        September 30, 2017   September 30, 2016   % Change  
ASSETS                    
Cash and due from banks   $ 79,431     $ 57,221     39   %  
Interest-bearing balances due from depository institutions     86,719       553,392     (84 ) %  
Federal funds sold     182,841       181,644     1   %  
  Cash and cash equivalents     348,991       792,257     (56 ) %  
Available for sale debt securities, at fair value     435,325       351,417     24   %  
Held to maturity debt securities (fair value of $89,329 and $26,912 at                    
  September 30, 2017 and 2016, respectively)     87,399       51,316     70   %  
Restricted equity securities     1,038       5,668     (82 ) %  
Mortgage loans held for sale     4,971       6,026     (18 ) %  
Loans     5,628,765       4,631,822     22   %  
Less allowance for loan losses     (58,459 )     (48,933 )   19   %  
  Loans, net     5,570,306       4,582,889     22   %  
Premises and equipment, net     55,104       25,033     120   %  
Goodwill and other identifiable intangible assets     14,787       15,073     (2 ) %  
Other assets     194,182       172,942     12   %  
  Total assets   $ 6,712,103     $ 6,002,621     12   %  
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Liabilities:                    
Deposits:                    
  Non-interest-bearing   $ 1,405,965     $ 1,269,726     11   %  
  Interest-bearing     4,390,936       3,811,402     15   %  
    Total deposits     5,796,901       5,081,128     14   %  
Federal funds purchased     254,880       344,390     (26 ) %  
Other borrowings     54,975       55,356     (1 ) %  
Other liabilities     15,134       13,881     9   %  
  Total liabilities     6,121,890       5,494,755     11   %  
Stockholders' equity:                    
  Preferred stock, Series A Senior Non-Cumulative Perpetual, par value $0.001                    
    (liquidation preference $1,000), net of discount; no shares authorized,                    
    no shares issued or outstanding at September 30, 2017 and 2016     -       -     -   %  
  Preferred stock, par value $0.001 per share; 1,000,000 shares authorized and                    
    undesignated at September 30, 2017 and 2016     -       -     -   %  
  Common stock, par value $0.001 per share; 100,000,000 shares authorized;                    
    52,970,310 shares issued and outstanding at September 30, 2017 and                    
    52,610,896 shares issued and outstanding at September 30, 2016     53       53     -   %  
  Additional paid-in capital     217,483       215,235     1   %  
  Retained earnings     371,127       287,568     29   %  
  Accumulated other comprehensive income     1,048       4,633     (77 ) %  
  Noncontrolling interest     502       377     33   %  
    Total stockholders' equity     590,213       507,866     16   %  
  Total liabilities and stockholders' equity   $ 6,712,103     $ 6,002,621     12   %  

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)                    
(In thousands except per share data)                          
        Three Months Ended September 30,   Nine Months Ended September 30,  
        2017   2016   2017   2016    
Interest income:                          
  Interest and fees on loans   $ 63,857   $ 51,598   $ 179,325   $ 148,055    
  Taxable securities     2,288     1,107     6,649     3,614    
  Nontaxable securities     729     823     2,246     2,515    
  Federal funds sold     379     347     1,185     630    
  Other interest and dividends     388     816     1,291     1,888    
  Total interest income     67,641     54,691     190,696     156,702    
Interest expense:                          
  Deposits     7,574     5,358     19,877     14,352    
  Borrowed funds     1,671     1,415     4,804     4,362    
  Total interest expense     9,245     6,773     24,681     18,714    
  Net interest income     58,396     47,918     166,015     137,988    
Provision for loan losses     4,803     3,464     14,170     9,323    
  Net interest income after provision for loan losses     53,593     44,454     151,845     128,665    
Non-interest income:                          
  Service charges on deposit accounts     1,467     1,367     4,203     3,980    
  Mortgage banking     978     1,112     2,941     2,681    
  Credit card income     1,149     1,114     3,517     2,159    
  Securities gains (losses)       -       -       -     (3 )  
  Increase in cash surrender value life insurance     825     770     2,334     2,049    
  Other operating income     371     428     1,146     1,207    
  Total non-interest income     4,790     4,791     14,141     12,073    
Non-interest expense:                          
  Salaries and employee benefits     12,428     10,958     36,172     32,758    
  Equipment and occupancy expense     1,947     2,100     6,452     6,108    
  Professional services     805     1,182     2,384     2,919    
  FDIC and other regulatory assessments     810     775     2,888     2,328    
  Other real estate owned expense     31     178     163     668    
  Other operating expense     5,476     4,969     16,580     14,175    
  Total non-interest expense     21,497     20,162     64,639     58,956    
  Income before income tax     36,886     29,083     101,347     81,782    
Provision for income tax     11,627     8,174     29,405     22,041    
  Net income     25,259     20,909     71,942     59,741    
  Dividends on preferred stock       -     -     31     23    
  Net income available to common stockholders   $ 25,259   $ 20,909   $ 71,911   $ 59,718    
Basic earnings per common share   $ 0.48   $ 0.40   $ 1.36   $ 1.14    
Diluted earnings per common share   $ 0.47   $ 0.39   $ 1.33   $ 1.12    

LOANS BY TYPE (UNAUDITED)                              
(In thousands)                              
                                 
      3rd Quarter 2017   2nd Quarter 2017   1st Quarter 2017   4th Quarter 2016   3rd Quarter 2016
Commercial, financial and agricultural   $ 2,223,910   $ 2,123,498   $ 2,061,503   $ 1,982,267   $ 1,885,315
Real estate - construction     467,838     395,398     345,777     335,085     292,721
Real estate - mortgage:                              
  Owner-occupied commercial     1,323,383     1,272,659     1,262,578     1,171,719     1,138,308
  1-4 family mortgage     593,180     565,121     554,261     536,805     520,394
  Other mortgage     962,690     931,788     872,955     830,683     740,127
Subtotal: Real estate - mortgage     2,879,253     2,769,568     2,689,794     2,539,207     2,398,829
Consumer     57,764     55,224     54,910     55,211     54,957
Total loans   $ 5,628,765   $ 5,343,688   $ 5,151,984   $ 4,911,770   $ 4,631,822

SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)                                    
(Dollars in thousands)                                    
          3rd Quarter 2017   2nd Quarter 2017   1st Quarter 2017   4th Quarter 2016   3rd Quarter 2016  
Allowance for loan losses:                                          
Beginning balance   $ 55,059       $ 53,892        $ 51,893        $ 48,933      $ 46,998      
Loans charged off:                                          
  Commercial, financial and agricultural     924         3,067         2,855         1,059       1,270      
  Real estate - construction     16         40         -         -       79      
  Real estate - mortgage     550         106         266         45       144      
  Consumer     65         33         75         82       81      
    Total charge offs     1,555         3,246         3,196         1,186       1,574      
Recoveries:                                          
  Commercial, financial and agricultural     67         16         190         10       35      
  Real estate - construction     12         14         16         12       9      
  Real estate - mortgage     59         2         2         46       1      
  Consumer     14         -         1         3       -      
    Total recoveries     152         32         209         71       45      
  Net charge-offs     1,403         3,214         2,987         1,115       1,529      
  Provision for loan losses     4,803         4,381         4,986         4,075       3,464      
  Ending balance   $ 58,459       $ 55,059       $ 53,892       $ 51,893     $ 48,933      
                                                 
  Allowance for loan losses to total loans     1.04   %     1.03    %     1.05    %     1.06  %     1.05   %  
  Allowance for loan losses to total average                                          
    loans     1.07   %     1.05    %     1.08    %     1.10  %     1.07   %  
  Net charge-offs to total average loans     0.10   %     0.25    %     0.24    %     0.09  %     0.13   %  
  Provision for loan losses to total average                                          
    loans     0.35   %     0.34    %     0.40    %     0.34  %     0.30   %  
  Nonperforming assets:                                          
    Nonaccrual loans   $ 12,356       $ 9,963        $ 12,084        $ 10,624      $ 6,647      
    Loans 90+ days past due and accruing     2,506         1,016         16         6,263       43      
    Other real estate owned and                                          
      repossessed assets     3,888         3,891         5,102         4,988       3,035      
  Total   $ 18,750       $ 14,870       $ 17,202       $ 21,875     $ 9,725      
                                                 
  Nonperforming loans to total loans     0.26   %     0.21    %     0.23    %     0.34  %     0.14   %  
  Nonperforming assets to total assets     0.28   %     0.23    %     0.27    %     0.34  %     0.16   %  
  Nonperforming assets to earning assets     0.29   %     0.24    %     0.28    %     0.35  %     0.16   %  
  Reserve for loan losses to nonaccrual loans     473.12   %     552.63    %     445.98    %     488.45  %     736.17   %  
                                                 
  Restructured accruing loans   $ 12,700       $ 12,716        $ 536        $ 558      $ 6,738      
                                                 
  Restructured accruing loans to total loans     0.23   %     0.24    %     0.01    %     0.01  %     0.14   %  
                                                 
  TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)                            
  (In thousands)                                  
          3rd Quarter 2017   2nd Quarter 2017   1st Quarter 2017   4th Quarter 2016   3rd Quarter 2016  
  Beginning balance:   $ 16,370       $ 7,269       $ 7,292       $ 6,738     $ 6,753      
    Additions     -         12,716         -         -       -      
    Removal from TDR     -         (535 )       -         -       -      
    Net (paydowns) / advances     (16 )       (1,380 )       (23 )       554       (15 )    
    Charge-offs     -         (1,700 )       -         -       -      
          $ 16,354       $ 16,370       $ 7,269       $ 7,292     $ 6,738      

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)                    
(In thousands except per share data)                    
        3rd Quarter 2017   2nd Quarter 2017   1st Quarter 2017   4th Quarter 2016   3rd Quarter 2016  
Interest income:                                
  Interest and fees on loans   $ 63,857   $ 59,912   $ 55,556   $ 52,533   $ 51,598  
  Taxable securities     2,288     2,274     2,087     1,604     1,107  
  Nontaxable securities     729     752     765     785     823  
  Federal funds sold     379     287     519     377     347  
  Other interest and dividends     388     313     590     901     816  
    Total interest income     67,641     63,538     59,517     56,200     54,691  
Interest expense:                                
  Deposits     7,574     6,321     5,982     5,817     5,358  
  Borrowed funds     1,671     1,650     1,483     1,274     1,415  
    Total interest expense     9,245     7,971     7,465     7,091     6,773  
    Net interest income     58,396     55,567     52,052     49,109     47,918  
Provision for loan losses     4,803     4,381     4,986     4,075     3,464  
    Net interest income after provision for loan losses     53,593     51,186     47,066     45,034     44,454  
Non-interest income:                                
  Service charges on deposit accounts     1,467     1,382     1,354     1,375     1,367  
  Mortgage banking     978     1,064     899     1,044     1,112  
  Credit card income     1,149     1,189     1,179     1,052     1,114  
  Increase in cash surrender value life insurance     825     785     724     745     770  
  Other operating income     371     385     390     1,823     428  
    Total non-interest income     4,790     4,805     4,546     6,039     4,791  
Non-interest expense:                                
  Salaries and employee benefits     12,428     12,031     11,713     11,197     10,958  
  Equipment and occupancy expense     1,947     2,265     2,250     1,877     2,100  
  Professional services     805     808     771     1,058     1,182  
  FDIC and other regulatory assessments     810     1,081     997     1,072     775  
  Other real estate owned expense     31     56     76     91     178  
  Other operating expense     5,476     5,634     5,460     6,742     4,969  
    Total non-interest expense     21,497     21,875     21,267     22,037     20,162  
    Income before income tax     36,886     34,116     30,345     29,036     29,083  
Provision for income tax     11,627     9,952     7,826     7,298     8,174  
    Net income     25,259     24,164     22,519     21,738     20,909  
  Dividends on preferred stock       -     31     -     24     -  
    Net income available to common stockholders   $ 25,259   $ 24,133   $ 22,519   $ 21,714   $ 20,909  
Basic earnings per common share   $ 0.48   $ 0.46   $ 0.43   $ 0.41   $ 0.40  
Diluted earnings per common share   $ 0.47   $ 0.45   $ 0.42   $ 0.40   $ 0.39  

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)  
ON A FULLY TAXABLE-EQUIVALENT BASIS  
(Dollars in thousands)  
   
                                                                       
            3rd Quarter 2017   2nd Quarter 2017   1st Quarter 2017   4th Quarter 2016   3rd Quarter 2016  
            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   $ 5,407,109   4.66 %   $ 5,192,812   4.60 %   $ 4,976,933     4.50 %   $ 4,676,565   4.45 %   $ 4,554,900   4.47 %  
    Tax-exempt (2)     33,357   5.17       41,143   4.92       27,322     4.72       26,344   4.74       21,939   4.37    
      Total loans, net of                                                              
        unearned income     5,440,466   4.66       5,233,955   4.60       5,004,255     4.51       4,702,909   4.45       4,576,839   4.47    
  Mortgage loans held for sale     4,862   3.51       5,958   3.90       5,637     4.10       6,271   3.36       6,724   3.79    
  Debt securities:                                                              
    Taxable     385,431   2.37       389,505   2.34       368,349     2.27       295,608   2.17       224,825   2.19    
    Tax-exempt (2)     131,478   3.34       133,590   3.38       132,578     3.45       134,748   3.54       135,272   3.73    
      Total securities (3)     516,909   2.62       523,095   2.60       500,927     2.58       430,356   2.60       360,097   2.77    
  Federal funds sold     111,175   1.35       98,598   1.17       234,460     0.90       242,211   0.62       217,158   0.64    
  Restricted equity securities     1,030   3.47       1,030   10.51       1,030     1.57       3,042   8.24       5,658   4.01    
  Interest-bearing balances with banks     118,510   1.27       109,909   1.04       295,648     0.80       601,143   0.55       590,675   0.51    
  Total interest-earning assets   $ 6,192,952   4.37 %   $ 5,972,545   4.30 %   $ 6,041,957     4.03 %   $ 5,985,932   3.77 %   $ 5,757,151   3.81 %  
Non-interest-earning assets:                                                              
  Cash and due from banks     65,457           68,894           59,697             55,593           58,809        
  Net premises and equipment     54,727           49,813           44,739             30,421           25,000        
  Allowance for loan losses, accrued                                                              
    interest and other assets     151,786           143,286           138,289             140,721           145,804        
      Total assets   $ 6,464,922         $ 6,234,538         $ 6,284,682           $ 6,212,667         $ 5,986,764        
                                                                       
Interest-bearing liabilities:                                                              
  Interest-bearing deposits:                                                              
  Checking   $ 800,437   0.42 %   $ 779,916   0.39 %   $ 789,273     0.38 %   $ 735,115   0.37 %   $ 696,100   0.37 %  
  Savings     48,313   0.30       48,150   0.30       50,461     0.33       51,845   0.32       43,569   0.30    
  Money market     2,774,061   0.74       2,567,817   0.64       2,694,225     0.58       2,669,513   0.56       2,471,829   0.55    
  Time deposits     546,020   1.10       537,220   1.06       530,000     1.02       527,100   1.00       519,653   0.99    
    Total interest-bearing deposits     4,168,831   0.72       3,933,103   0.64       4,063,959     0.60       3,983,573   0.58       3,731,151   0.57    
  Federal funds purchased     282,806   1.34       336,344   1.11       359,747     0.86       353,029   0.63       436,415   0.64    
  Other borrowings     55,034   5.17       55,130   5.22       55,239     5.26       55,315   5.16       55,410   5.15    
  Total interest-bearing liabilities   $ 4,506,671   0.81 %   $ 4,324,577   0.74 %   $ 4,478,945     0.68 %   $ 4,391,917   0.64 %   $ 4,222,976   0.64 %  
Non-interest-bearing liabilities:                                                              
  Non-interest-bearing                                                              
    demand     1,363,207           1,338,514           1,254,496             1,289,448           1,250,139        
  Other liabilities     15,070           13,739           16,809             14,399           14,376        
  Stockholders' equity     578,626           556,521           535,232             514,245           494,248        
  Unrealized gains on securities and                                                              
    derivatives     1,348           1,187           (800 )           2,658           5,025        
      Total liabilities and                                                              
        stockholders' equity   $ 6,464,922         $ 6,234,538         $ 6,284,682           $ 6,212,667         $ 5,986,764        
Net interest spread         3.56 %         3.56 %         3.35 %         3.13 %         3.17 %  
Net interest margin         3.77 %         3.77 %         3.53 %         3.30 %         3.35 %  
                                                                       
(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 35%.  
(3 ) Average net unrealized gains or losses on available-for-sale debt securities are excluded from the yield calculation.  

 

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