• ServisFirst Bancshares, Inc. Announces Results For Second Quarter of 2021

    المصدر: Nasdaq GlobeNewswire / 19 يوليو 2021 15:02:01   America/Chicago

    BIRMINGHAM, Ala., July 19, 2021 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended June 30, 2021.

    Second Quarter 2021 Highlights:

    • Total loans grew $144.7 million during the quarter, while loans, excluding the impact of Paycheck Protection Program (“PPP”) loan activity, grew $517.3 million, or 28% annualized, during the quarter
    • Diluted earnings per share were $0.92 for the second quarter, an increase of 23% over the second quarter of 2020
    • Deposits grew from $9.34 billion to $10.96 billion year-over-year, or 17%, and grew $381 million, or 14% annualized, on a linked-quarter basis
    • Book value per share increased to $19.80, a 17% increase year-over-year
    • Liquidity reached new record levels, with approximately $3.0 billion on deposit at the Federal Reserve Bank
    • We transferred the listing of our common stock to the New York Stock Exchange (NYSE) during the quarter

    Tom Broughton, Chairman, President and CEO, said, “Strong loan growth and a continued robust loan pipeline are evidence that we are well positioned to meet the financial needs of our customers and prospects as they return to a more normal operating environment.”

    Bud Foshee, CFO, said, “Our credit quality and low expense structure has weathered the pandemic and we remain optimistic about the future.”

    FINANCIAL SUMMARY (UNAUDITED)                   
    (in Thousands except share and per share amounts)                
                          
        Period Ending June 30, 2021 Period Ending March 31, 2021 % Change From Period Ending March 31, 2021 to Period Ending June 30, 2021 Period Ending June 30, 2020 % Change From Period Ending June 30, 2020 to Period Ending June 30, 2021 
    QUARTERLY OPERATING RESULTS                   
    Net Income $50,027  $51,455  (3)% $40,448  24% 
    Net Income Available to Common Stockholders $49,996  $51,455  (3)% $40,417  24% 
    Diluted Earnings Per Share $0.92  $0.95  (3)% $0.75  23% 
    Return on Average Assets  1.56%  1.72%     1.55%    
    Return on Average Common Stockholders' Equity  18.98%  19.83%     18.40%    
    Average Diluted Shares Outstanding  54,460,230   54,381,991      54,194,506     
                          
    YEAR-TO-DATE OPERATING RESULTS                   
    Net Income $101,482         $75,226  35% 
    Net Income Available to Common Stockholders $101,451         $75,195  35% 
    Diluted Earnings Per Share $1.86         $1.39  34% 
    Return on Average Assets  1.63%         1.54%    
    Return on Average Common Stockholders' Equity  19.73%         17.31%    
    Average Diluted Shares Outstanding  54,421,327          54,180,960     
                          
                          
    BALANCE SHEET                   
    Total Assets $13,207,319  $12,647,374  4% $11,012,195  20% 
    Loans  8,649,694   8,504,980  2%  8,315,375  4% 
    Non-interest-bearing Demand Deposits  3,296,429   3,044,611  8%  2,678,893  23% 
    Total Deposits  10,958,236   10,577,610  4%  9,342,918  17% 
    Stockholders' Equity  1,073,284   1,030,485  4%  914,588  17% 
                          

    DETAILED FINANCIALS

    ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $50.0 million for the quarter ended June 30, 2021, compared to net income and net income available to common stockholders of $40.4 million for the same quarter in 2020. Basic and diluted earnings per common share were $0.92 for the second quarter of 2021, compared to $0.75, for the second quarter of 2020.

    Annualized return on average assets was 1.56% and annualized return on average common stockholders’ equity was 18.98% for the second quarter of 2021, compared to 1.55% and 18.40%, respectively, for the second quarter of 2020.

    Net interest income was $94.7 million for the second quarter of 2021, compared to $92.4 million for the first quarter of 2021 and $83.2 million for the second quarter of 2020. The net interest margin in the second quarter of 2021 was 3.06% compared to 3.20% in the first quarter of 2021 and 3.32% in the second quarter of 2020. Accretion of net fees on PPP loans of $8.0 million during the second quarter of 2021 contributed 37 basis points of the loan yield, compared to $9.1 million of PPP loan fee accretion during the first quarter of 2021, or 43 basis points of the loan yield.

    Average loans for the second quarter of 2021 were $8.64 billion, an increase of $132.4 million, or 6% annualized, with average loans of $8.51 billion for the first quarter of 2021, and an increase of $311.3 million, or 4%, with average loans of $8.33 billion for the second quarter of 2020. Origination of round-two PPP loans during the second quarter of 2021 totaled $28.0 million while forgiveness of round-one PPP loans during the second quarter of 2021 totaled $400.6 million.

    Average total deposits for the second quarter of 2021 were $10.73 billion, an increase of $554.8 million, or 22% annualized, with average total deposits of $10.18 billion for the first quarter of 2021, and an increase of $1.86 billion, or 21%, with average total deposits of $8.87 billion for the second quarter of 2020.

    Non-performing assets to total assets were 0.15% for the second quarter of 2021, a decrease of one basis point compared to 0.16% for the first quarter of 2021 and a decrease of 11 basis points compared to 0.26% for the second quarter of 2020.   Annualized net recoveries to average loans were 0.01% for the second quarter of 2021, compared to annualized net charge-offs of 0.02% and 0.20% for the first quarter of 2021 and second quarter of 2020, respectively. The allowance for credit losses for the quarters ending June 30, 2021, March 31, 2021 and December 31, 2020 were calculated under the CECL methodology and as a percentage of total loans were 1.21%, 1.12% and 1.04%, respectively. Other quarter-end periods presented for the allowance for loan losses were not restated for CECL adoption and were calculated under the incurred loss methodology. The allowance for loan losses as a percentage of total loans was 1.10% at June 30, 2020. Excluding PPP loans, for all periods discussed, the allowance for credit losses as a percentage of total loans under the CECL methodology at June 30, 2021 and March 31, 2021 was 1.30% and 1.26%, respectively, compared to 1.26% at June 30, 2020, under the incurred loss model. We recorded a $9.7 million provision for credit losses in the second quarter of 2021 compared to $7.5 million in the first quarter of 2021 and $10.3 million in the second quarter of 2020. The $2.2 million linked-quarter increase in provision for credit losses is primarily due to loan growth and qualitative factors reflecting economic uncertainty related to the termination of the PPP.

    Non-interest income for the second quarter of 2021 increased $2.6 million, or 37%, to $9.6 million from $7.0 million in the second quarter of 2020. Mortgage banking revenue increased $592,000, or 28%, to $2.7 million from the second quarter of 2020 to the second quarter of 2021. Margin pricing on mortgage loans was increased in the third quarter of 2020, increasing the per-loan revenue by approximately 18%. Net credit card revenue increased $514,000, or 37%, to $1.9 million during the second quarter of 2021, compared to $1.4 million during the second quarter of 2020. The number of credit card accounts increased approximately 36% and the aggregate amount of spend on all credit card accounts increased 47% during the second quarter of 2021 compared to the second quarter of 2020. Cash surrender value of life insurance increased $219,000, or 15%, to $1.7 million during the second quarter of 2021, compared to $1.5 million during the second quarter of 2020. Other income for the second quarter of 2021 increased $536,000, or 222%, to $777,000 from $241,000 in the second quarter of 2020. We wrote down the value of our interest rate cap by $252,000 during the second quarter of 2020 through other income. Merchant service revenue increased from $134,000 during the second quarter of 2020 to $289,000, or 15%, during the second quarter of 2021.

    Non-interest expense for the second quarter of 2021 increased $2.5 million, or 9%, to $31.3 million from $28.8 million in the second quarter of 2020, and increased $2.4 million, or 8%, on a linked quarter basis. Salary and benefit expense for the second quarter of 2021 increased $1.1 million, or 7%, to $16.9 million from $15.8 million in the second quarter of 2020, and increased $1.3 million, or 9%, on a linked quarter basis. Salary expense alone only increased by $326,000 during the second quarter of 2021 compared to the second quarter of 2020. Higher loan origination cost deferrals during the second quarter of 2020 related to origination of round-one PPP loans decreased salary and benefits expenses below what they would have otherwise been during that quarter. The number of FTE employees increased by 35 to 527 at June 30, 2021 compared to 492 at June 30, 2020, and increased by 36 from the end of the first quarter of 2021. Equipment and occupancy expense increased $410,000, or 17%, to $2.8 million in the second quarter of 2021, from $2.4 million in the second quarter of 2020, and increased $190,000 on a linked-quarter basis. Third party processing and other services expense increased $324,000, or 9%, to $3.9 million in the second quarter of 2021, from $3.6 million in the second quarter of 2020 and increased $530,000 on a linked-quarter basis. FDIC and other regulatory assessments increased $830,000 to $1.4 million in the second quarter of 2021, from $595,000 in the second quarter of 2020, and decreased $157,000, or 10%, on a linked quarter basis. Lower asset growth during the second quarter of 2020 resulted in us adjusting our accrual for assessments in that quarter. Expenses associated with other real estate owned decreased $763,000 to $540,000 in the second quarter of 2021, from $1.3 million in the second quarter of 2020, and increased $383,000 on a linked quarter basis. The second quarter 2020 amount included write-downs in value of two foreclosed properties in our Birmingham region. The linked-quarter increase was due to the write-down of one property in our Nashville region during the second quarter of 2021. Other operating expenses for the second quarter of 2021 increased $581,000, or 15%, to $4.6 million from $4.0 million in the second quarter of 2020, and decreased $79,000 on a linked-quarter basis. We increased our reserve for credit losses on unfunded loan commitments by $500,000 in the second quarter of 2021 with a charge to other operating expenses. The efficiency ratio was 30.03% during the second quarter of 2021 compared to 31.92% during the second quarter of 2020 and compared to 28.68% during the first quarter of 2021.

    Income tax expense increased $2.6 million, or 24%, to $13.3 million in the second quarter of 2021, compared to $10.7 million in the second quarter of 2020. Our effective tax rate was 20.97% for the second quarter of 2021 compared to 20.95% for the second quarter of 2020. 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 2021 and 2020 of $724,000 and $136,000, 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 also include total loans excluding PPP loans. 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, 2021  At March 31, 2021  At December 31, 2020 At September 30, 2020 At June 30, 2020 
                   
                          
                          
    Book value per share - GAAP $19.80  $19.03  $18.41  $17.61  $16.98  
    Total common stockholders' equity - GAAP  1,073,284   1,030,485   992,852   949,589   914,588  
     Adjustments:                     
     Adjusted for goodwill and core deposit intangible asset  13,773   13,841   13,908   13,976   14,043  
    Tangible common stockholders' equity - non-GAAP $1,059,511  $1,016,644  $978,944  $935,613  $900,545  
    Tangible book value per share - non-GAAP $19.55  $18.78  $18.15  $17.35  $16.72  
                           
    Stockholders' equity to total assets - GAAP  8.13%  8.15%  8.32%  8.33%  8.31% 
    Total assets - GAAP $13,207,319  $12,647,374  $11,932,654  $11,394,874  $11,012,195  
     Adjustments:                     
     Adjusted for goodwill and core deposit intangible asset  13,773   13,841   13,908   13,976   14,043  
    Total tangible assets - non-GAAP $13,193,546  $12,633,533  $11,918,746  $11,380,898  $10,998,152  
    Tangible common equity to total tangible assets - non-GAAP  8.03%  8.05%  8.21%  8.22%  8.19% 
                           
    Total loans - GAAP $8,649,694  $8,504,980              
     Adjustments:                     
     Adjusted to exclude PPP loans  595,017   967,641              
    Loans, excluding PPP loans - non-GAAP $8,054,677  $7,537,339              

    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, Mobile, Montgomery and Dothan, Alabama, Northwest Florida, West Central Florida, Nashville, Tennessee, Atlanta, Georgia, and Charleston, South Carolina.

    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,” “could,” “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, but not limited to: the global health and economic crisis precipitated by the COVID-19 outbreak; 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; economic crisis and associated credit issues in industries most impacted by the COVID-19 outbreak, including but not limited to, the restaurant, hospitality and retail sectors; 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, in our Quarterly Reports on Form 10-Q for fiscal year 2021, 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 2021 1st Quarter 2021 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 
    CONSOLIDATED STATEMENT OF INCOME                     
    Interest income $102,719  $100,396  $101,065  $96,110  $95,080  
    Interest expense  8,051   8,031   8,984   11,028   11,846  
    Net interest income  94,668   92,365   92,081   85,082   83,234  
    Provision for credit losses  9,652   7,451   6,283   12,284   10,283  
    Net interest income after provision for credit losses  85,016   84,914   85,798   72,798   72,951  
    Non-interest income  9,598   8,463   8,237   8,172   7,033  
    Non-interest expense  31,309   28,914   28,202   26,573   28,816  
    Income before income tax  63,305   64,463   65,833   54,397   51,168  
    Provision for income tax  13,278   13,008   14,852   11,035   10,720  
    Net income  50,027   51,455   50,981   43,362   40,448  
    Preferred stock dividends  31   -   32   -   31  
    Net income available to common stockholders $49,996  $51,455  $50,949  $43,362  $40,417  
    Earnings per share - basic $0.92  $0.95  $0.94  $0.80  $0.75  
    Earnings per share - diluted $0.92  $0.95  $0.94  $0.80  $0.75  
    Average diluted shares outstanding  54,460,230   54,381,991   54,273,944   54,232,965   54,194,506  
                          
    CONSOLIDATED BALANCE SHEET DATA                     
    Total assets $13,207,319  $12,647,374  $11,932,654  $11,394,874  $11,012,195  
    Loans  8,649,694   8,504,980   8,465,688   8,508,544   8,315,375  
    Debt securities  1,013,783   962,129   886,938   913,299   856,378  
    Non-interest-bearing demand deposits  3,296,429   3,044,611   2,788,772   2,762,814   2,678,893  
    Total deposits  10,958,236   10,577,610   9,975,724   9,673,783   9,342,918  
    Borrowings  64,696   64,691   64,748   64,719   64,715  
    Stockholders' equity $1,073,284  $1,030,485  $992,852  $949,589  $914,588  
                          
    Shares outstanding  54,201,204   54,137,650   53,943,751   53,915,245   53,874,276  
    Book value per share $19.80  $19.03  $18.41  $17.61  $16.98  
    Tangible book value per share (1) $19.55  $18.78  $18.15  $17.35  $16.72  
                          
    SELECTED FINANCIAL RATIOS (Annualized)                     
    Net interest margin  3.06%  3.20%  3.27%  3.14%  3.32% 
    Return on average assets  1.56%  1.72%  1.74%  1.54%  1.55% 
    Return on average common stockholders' equity  18.98%  19.83%  20.78%  18.43%  18.40% 
    Efficiency ratio  30.03%  28.68%  28.11%  28.50%  31.92% 
    Non-interest expense to average earning assets  1.01%  1.00%  1.00%  0.98%  1.15% 
                          
    CAPITAL RATIOS (2)                     
    Common equity tier 1 capital to risk-weighted assets  10.60%  10.73%  10.50%  11.24%  11.26% 
    Tier 1 capital to risk-weighted assets  10.60%  10.73%  10.50%  11.25%  11.27% 
    Total capital to risk-weighted assets  12.36%  12.48%  12.20%  13.10%  13.27% 
    Tier 1 capital to average assets  8.10%  8.25%  8.23%  8.22%  8.46% 
    Tangible common equity to total tangible assets (1)  8.03%  8.05%  8.22%  8.22%  8.19% 
                          
    (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, 2021 June 30, 2020 % Change 
    ASSETS          
    Cash and due from banks $72,599  $102,282  (29)% 
    Interest-bearing balances due from depository institutions  3,100,677   1,444,293  115 % 
    Federal funds sold  7,500   2,352  219 % 
     Cash and cash equivalents  3,180,776   1,548,927  105 % 
    Available for sale debt securities, at fair value  1,013,533   856,128  18 % 
    Held to maturity debt securities (fair value of $250 at June 30, 2021 and 2020)  250   250  -   
    Mortgage loans held for sale  6,147   14,491  (58)% 
    Loans  8,649,694   8,315,375  4 % 
    Less allowance for credit losses  (104,670)  (91,507) 14 % 
     Loans, net  8,545,024   8,223,868  4 % 
    Premises and equipment, net  67,738   55,588  22 % 
    Goodwill and other identifiable intangible assets  13,773   14,043  (2)% 
    Other assets  380,078   298,900  27 % 
     Total assets $13,207,319  $11,012,195  20 % 
    LIABILITIES AND STOCKHOLDERS' EQUITY          
    Liabilities:          
    Deposits:          
     Non-interest-bearing $3,296,429  $2,678,893  23 % 
     Interest-bearing  7,661,807   6,664,025  15 % 
      Total deposits  10,958,236   9,342,918  17 % 
    Federal funds purchased  1,059,474   635,606  67 % 
    Other borrowings  64,696   64,715  - % 
    Other liabilities  51,629   54,368  (5)% 
     Total liabilities  12,134,035   10,097,607  20 % 
    Stockholders' equity:          
     Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at          
      June 30, 2021 and June 30, 2020  -   -     
     Common stock, par value $0.001 per share; 100,000,000 shares authorized; 54,201,204 shares          
      issued and outstanding at June 30, 2021, and 53,874,276 shares issued and outstanding          
      at June 30, 2020  54   54  - % 
     Additional paid-in capital  225,127   222,437  1 % 
     Retained earnings  828,048   672,984  23 % 
     Accumulated other comprehensive income  19,555   18,611  5 % 
      Total stockholders' equity attributable to ServisFirst Bancshares, Inc.  1,072,784   914,086  17 % 
     Noncontrolling interest  500   502  - % 
      Total stockholders' equity  1,073,284   914,588  17 % 
     Total liabilities and stockholders' equity $13,207,319  $11,012,195  20 % 


    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)          
    (In thousands except per share data)             
        Three Months Ended June, 30 Six Months Ended June, 30 
        2021 2020 2021 2020 
    Interest income:             
     Interest and fees on loans $95,451 $89,383 $189,254 $178,768 
     Taxable securities  6,315  5,092  12,122  10,246 
     Nontaxable securities  86  211  193  444 
     Federal funds sold  4  34  7  311 
     Other interest and dividends  863  360  1,539  2,078 
     Total interest income  102,719  95,080  203,115  191,847 
    Interest expense:             
     Deposits  6,836  10,756  13,717  27,501 
     Borrowed funds  1,215  1,090  2,365  3,472 
     Total interest expense  8,051  11,846  16,082  30,973 
     Net interest income  94,668  83,234  187,033  160,874 
    Provision for credit losses  9,652  10,283  17,103  23,867 
     Net interest income after provision for credit losses  85,016  72,951  169,930  137,007 
    Non-interest income:             
     Service charges on deposit accounts  1,907  1,823  3,815  3,739 
     Mortgage banking  2,699  2,107  5,446  3,178 
     Credit card income  1,912  1,398  3,104  3,163 
     Securities gains  620  -  620  - 
     Increase in cash surrender value life insurance  1,683  1,464  3,341  2,917 
     Other operating income  777  241  1,735  710 
     Total non-interest income  9,598  7,033  18,061  13,707 
    Non-interest expense:             
     Salaries and employee benefits  16,887  15,792  32,430  31,450 
     Equipment and occupancy expense  2,844  2,434  5,498  4,834 
     Third party processing and other services  3,946  3,622  7,362  7,079 
     Professional services  1,107  1,091  2,030  2,039 
     FDIC and other regulatory assessments  1,425  595  3,007  1,927 
     Other real estate owned expense  540  1,303  697  1,904 
     Other operating expense  4,560  3,979  9,199  7,503 
     Total non-interest expense  31,309  28,816  60,223  56,736 
     Income before income tax  63,305  51,168  127,768  93,978 
    Provision for income tax  13,278  10,720  26,286  18,752 
     Net income  50,027  40,448  101,482  75,226 
     Dividends on preferred stock  31  31 $31 $31 
     Net income available to common stockholders $49,996 $40,417 $101,451 $75,195 
    Basic earnings per common share $0.92 $0.75 $1.87 $1.40 
    Diluted earnings per common share $0.92 $0.75 $1.86 $1.39 


    LOANS BY TYPE (UNAUDITED)               
    (In thousands)               
                     
       2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020
    Commercial, financial and agricultural $3,105,243 $3,323,093 $3,295,900 $3,466,189 $3,498,627
    Real estate - construction  782,305  666,592  593,614  530,919  544,586
    Real estate - mortgage:               
     Owner-occupied commercial  1,726,888  1,698,695  1,693,428  1,725,222  1,634,495
     1-4 family mortgage  707,546  685,840  711,692  671,841  665,883
     Other mortgage  2,262,231  2,068,560  2,106,184  2,056,549  1,911,384
    Subtotal: Real estate - mortgage  4,696,665  4,453,095  4,511,304  4,453,612  4,211,762
    Consumer  65,481  62,200  64,870  57,834  60,400
    Total loans $8,649,694 $8,504,980 $8,465,688 $8,508,554 $8,315,375


    SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)                 
    (Dollars in thousands)                  
         2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 
    Allowance for credit losses:                     
    Beginning balance $94,906   $87,942  $92,440   $91,507  $85,414  
     Impact of Adoption of ASC 326  -    -   (2,000)   -   -  
    Loans charged off:                     
     Commercial financial and agricultural  150    477   8,792    11,146   1,358  
     Real estate - construction  -    -   202    -   376  
     Real estate - mortgage  59    12   -    200   2,520  
     Consumer  54    87   38    44   62  
      Total charge offs  263    576   9,032    11,390   4,316  
    Recoveries:                     
     Commercial financial and agricultural  298    26   94    12   84  
     Real estate - construction  2    50   30    -   1  
     Real estate - mortgage  62    2   114    12   13  
     Consumer  13    11   13    15   28  
      Total recoveries  375    89   251    39   126  
     Net charge-offs  (112)   487   8,781    11,351   4,190  
     Provision for credit losses  9,652    7,451   6,283    12,284   10,283  
     Ending balance $104,670   $94,906  $87,942   $92,440  $91,507  
                             
     Allowance for credit losses to total loans  1.21 %  1.12%  1.04 %  -   -  
     Allowance for credit losses to total average                     
      loans  1.21 %  1.11%  1.04 %  -   -  
     Allowance for loan losses to total loans  -    -   -    1.09%  1.10% 
     Allowance for loan losses to total average                     
      loans  -    -   -    1.11%  1.10% 
     Net (recoveries) charge-offs to total average loans(0.01)%  0.02%  0.41 %  0.54%  0.20% 
     Provision for credit losses to total average                     
      loans  0.45 %  0.35%  0.30 %  -   -  
     Provision for loan losses to total average                     
      loans  -    -   -    0.58%  0.50% 
     Nonperforming assets:                     
      Nonaccrual loans $12,301   $13,088  $13,973   $21,675  $16,881  
      Loans 90+ days past due and accruing  4,888    4,804   4,981    4,898   5,133  
      Other real estate owned and                     
      repossessed assets  2,039    2,067   6,497    6,976   6,537  
     Total $19,228   $19,959  $25,451   $33,549  $28,551  
                             
     Nonperforming loans to total loans  0.20 %  0.21%  0.22 %  0.31%  0.26% 
     Nonperforming assets to total assets  0.15 %  0.16%  0.21 %  0.29%  0.26% 
     Nonperforming assets to earning assets  0.15 %  0.16%  0.22 %  0.30%  0.26% 
     Allowance for credit losses to nonaccrual loans850.91 %  725.14%  629.37 %  -   -  
     Allowance for loan losses to nonaccrual loans -    -   -    426.48%  542.07% 
                             
     Restructured accruing loans $441   $794  $818   $1,800  $975  
                             
     Restructured accruing loans to total loans  0.01 %  0.01%  0.01 %  0.02%  0.01% 
                             
     TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)              
     (In thousands)                 
         2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 
     Beginning balance: $3,542  $1,433  $2,738  $1,568  $2,367  
      Additions  -   2,146   -   1,182   -  
      Net (paydowns) / advances  (624)  (37)  (619)  (12)  (12) 
      Charge-offs  -   -   (535)  -   (412) 
      Transfer to OREO  -   -   (151)  -   (375) 
     Ending balance $2,918  $3,542  $1,433  $2,738  $1,568  


    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)          
    (In thousands except per share data)          
        2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 
    Interest income:                
     Interest and fees on loans $95,451 $93,803 $94,332 $89,564 $89,383 
     Taxable securities  6,315  5,807  6,018  5,858  5,092 
     Nontaxable securities  86  107  129  166  211 
     Federal funds sold  4  3  5  16  34 
     Other interest and dividends  863  676  581  506  360 
     Total interest income  102,719  100,396  101,065  96,110  95,080 
    Interest expense:                
     Deposits  6,836  6,881  7,853  9,876  10,756 
     Borrowed funds  1,215  1,150  1,131  1,152  1,090 
     Total interest expense  8,051  8,031  8,984  11,028  11,846 
     Net interest income  94,668  92,365  92,081  85,082  83,234 
    Provision for credit losses  9,652  7,451  6,283  12,284  10,283 
     Net interest income after provision for credit losses  85,016  84,914  85,798  72,798  72,951 
    Non-interest income:                
     Service charges on deposit accounts  1,907  1,908  1,971  1,818  1,823 
     Mortgage banking  2,699  2,747  3,050  2,519  2,107 
     Credit card income  1,912  1,192  913  1,840  1,398 
     Securities gains  620  -  -  -  - 
     Increase in cash surrender value life insurance  1,683  1,658  1,660  1,733  1,464 
     Other operating income  777  958  643  262  241 
     Total non-interest income  9,598  8,463  8,237  8,172  7,033 
    Non-interest expense:                
     Salaries and employee benefits  16,887  15,543  14,970  14,994  15,792 
     Equipment and occupancy expense  2,844  2,654  2,680  2,556  2,434 
     Third party processing and other services  3,946  3,416  3,418  3,281  3,622 
     Professional services  1,107  923  1,248  955  1,091 
     FDIC and other regulatory assessments  1,425  1,582  1,366  1,061  595 
     Other real estate owned expense  540  157  140  119  1,303 
     Other operating expense  4,560  4,639  4,380  3,607  3,979 
     Total non-interest expense  31,309  28,914  28,202  26,573  28,816 
     Income before income tax  63,305  64,463  65,833  54,397  51,168 
    Provision for income tax  13,278  13,008  14,852  11,035  10,720 
     Net income  50,027  51,455  50,981  43,362  40,448 
     Dividends on preferred stock  31  -  32  -  31 
     Net income available to common stockholders $49,996 $51,455 $50,949 $43,362 $40,417 
    Basic earnings per common share $0.92 $0.95 $0.94 $0.80 $0.75 
    Diluted earnings per common share $0.92 $0.95 $0.94 $0.80 $0.75 


    AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) 
    ON A FULLY TAXABLE-EQUIVALENT BASIS 
    (Dollars in thousands) 
                                        
          2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 
          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 $8,618,139 4.43% $8,484,914 4.47% $8,435,237 4.43% $8,335,087 4.26% $8,301,775 4.31% 
      Tax-exempt (2)  26,854 4.05   27,592 4.17   29,393 4.16   30,068 4.14   31,929 4.12  
       Total loans, net of                               
        unearned income  8,644,993 4.43   8,512,506 4.47   8,464,630 4.43   8,365,155 4.26   8,333,704 4.31  
     Mortgage loans held for sale  11,470 1.92   13,601 1.94   19,459 1.37   20,053 1.41   13,278 2.09  
     Debt securities:                               
      Taxable  936,863 2.70   878,118 2.65   862,333 2.79   820,526 2.86   761,575 2.67  
      Tax-exempt (2)  16,872 2.47   21,084 2.43   25,542 2.52   31,880 2.51   38,201 2.62  
       Total securities (3)  953,735 2.69   899,202 2.64   887,875 2.78   852,406 2.84   799,776 2.67  
     Federal funds sold  8,224 0.20   11,935 0.10   16,306 0.12   41,884 0.15   83,274 0.16  
     Interest-bearing balances with banks  2,790,524 0.12   2,262,233 0.12   1,837,249 0.13   1,500,563 0.13   849,549 0.17  
     Total interest-earning assets $12,408,946 3.32% $11,699,477 3.48% $11,225,519 3.58% $10,780,061 3.55% $10,079,581 3.80% 
    Non-interest-earning assets:                               
     Cash and due from banks  85,478     71,166     91,258     75,065     76,212    
     Net premises and equipment  61,240     57,198     56,315     56,799     57,446    
     Allowance for credit losses, accrued                               
      interest and other assets  320,729     320,407     308,746     281,196     248,702    
       Total assets $12,876,393    $12,148,248    $11,681,838    $11,193,121    $10,461,941    
                                        
    Interest-bearing liabilities:                               
     Interest-bearing deposits:                               
     Checking $1,350,098 0.19% $1,294,614 0.19% $1,197,908 0.23% $1,077,595 0.31% $992,848 0.35% 
     Savings  104,283 0.18   93,375 0.18   86,259 0.18   82,671 0.36   72,139 0.42  
     Money market  5,321,338 0.26   5,057,828 0.27   4,933,285 0.31   4,739,566 0.44   4,285,907 0.52  
     Time deposits  801,928 1.33   808,561 1.44   810,675 1.59   841,378 1.78   877,448 1.95  
      Total interest-bearing deposits  7,577,647 0.36   7,254,378 0.38   7,028,127 0.44   6,741,210 0.58   6,228,342 0.69  
     Federal funds purchased  970,708 0.22   849,772 0.22   752,765 0.22   682,971 0.22   572,990 0.22  
     Other borrowings  64,694 4.28   64,689 4.33   64,701 4.41   64,717 4.78   64,711 4.85  
     Total interest-bearing liabilities $8,613,049 0.37% $8,168,839 0.40% $7,845,593 0.46% $7,488,898 0.59% $6,866,043 0.69% 
    Non-interest-bearing liabilities:                               
     Non-interest-bearing                               
      demand deposits  3,154,605     2,923,041     2,812,254     2,728,513     2,646,030    
     Other liabilities  52,027     39,442     48,642     39,537     69,061    
     Stockholders' equity  1,038,012     996,741     956,847     917,626     862,500    
     Accumulated other comprehensive                               
      income  18,700     20,185     18,502     18,547     18,307    
       Total liabilities and                               
        stockholders' equity $12,876,393    $12,148,248    $11,681,838    $11,193,121    $10,461,941    
    Net interest spread    2.95%    3.08%    3.12%    2.96%    3.11% 
    Net interest margin    3.06%    3.20%    3.27%    3.14%    3.32% 
                                        
    (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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