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ServisFirst Bancshares, Inc. Announces Results For Fourth Quarter of 2020
المصدر: Nasdaq GlobeNewswire / 25 يناير 2021 15:01:01 America/Chicago
BIRMINGHAM, Ala., Jan. 25, 2021 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the three months and year ended December 31, 2020.
Highlights:
- Diluted earnings per share were $3.13 for 2020, a 13% increase over 2019
- Diluted earnings per share for the quarter were $0.94, a 24% increase over the fourth quarter of 2019
- Deposits grew from $7.53 billion to $9.98 billion year-over-year, or 32%
- Book value per share increased to $18.41, a 17% increase year-over-year
- Cash dividend increased from $0.175 to $0.20 cents per quarter, a 14% increase
- Opened new Venice, Florida office in January 2021
Tom Broughton, Chairman, President and CEO, said, “We are thankful to have had the opportunity to assist so many of our clients during this pandemic and have worked to support them through a year of difficult circumstances. We are pleased that we were able to build new customer relationships during the pandemic; customers who came to ServisFirst Bank needing a responsive and dedicated banking partner. I am proud of our team’s performance and dedication to our mission.”
Bud Foshee, CFO, said, “We are pleased to report record earnings in 2020. Given the uneven economic conditions and the unanticipated challenges that the pandemic presented, we maintained a strong commitment to hard work and to provide excellent service to our customers.”
FINANCIAL SUMMARY (UNAUDITED) (in Thousands except share and per share amounts) Period Ending
December 31, 2020Period Ending
September 30, 2020% Change
From Period
Ending
September 30,
2020 to Period
Ending
December 31,
2020Period Ending
December 31, 2019% Change
From Period
Ending
December 31,
2019 to Period
Ending
December 31,
2020QUARTERLY OPERATING RESULTS Net Income $ 50,981 $ 43,362 18 % $ 41,037 24 % Net Income Available to Common Stockholders $ 50,949 $ 43,362 17 % $ 41,005 24 % Diluted Earnings Per Share $ 0.94 $ 0.80 18 % $ 0.76 24 % Return on Average Assets 1.74 % 1.54 % 1.80 % Return on Average Common Stockholders' Equity 20.78 % 18.43 % 19.75 % Average Diluted Shares Outstanding 54,273,944 54,232,965 54,149,554 YEAR-TO-DATE OPERATING RESULTS Net Income $ 169,569 $ 149,243 14 % Net Income Available to Common Stockholders $ 169,506 $ 149,180 14 % Diluted Earnings Per Share $ 3.13 $ 2.76 13 % Return on Average Assets 1.59 % 1.73 % Return on Average Common Stockholders' Equity 18.55 % 19.15 % Average Diluted Shares Outstanding 54,219,037 54,103,074 BALANCE SHEET Total Assets $ 11,932,654 $ 11,394,874 5 % $ 8,947,653 33 % Loans 8,465,688 8,508,554 (1 ) % 7,261,451 17 % Non-interest-bearing Demand Deposits 2,788,772 2,762,814 1 % 1,749,879 59 % Total Deposits 9,975,724 9,673,783 3 % 7,530,433 32 % Stockholders' Equity 992,852 949,589 5 % 842,682 18 % DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $51.0 million and $50.9 million, respectively, for the quarter ended December 31, 2020, compared to net income and net income available to common stockholders of $41.0 million for the same quarter in 2019. Basic and diluted earnings per common share were $0.94 for the fourth quarter of 2020, compared to $0.77 and $0.76, respectively, for the fourth quarter of 2019.
Annualized return on average assets was 1.74% and annualized return on average common stockholders’ equity was 20.78% for the fourth quarter of 2020, compared to 1.80% and 19.75%, respectively, for the fourth quarter of 2019.
Net interest income was $92.1 million for the fourth quarter of 2020, compared to $85.1 million for the third quarter of 2020 and $75.8 million for the fourth quarter of 2019. The net interest margin in the fourth quarter of 2020 was 3.27% compared to 3.14% in the third quarter of 2020 and 3.47% in the fourth quarter of 2019. Accretion of net fees on PPP loans of $7.5 million during the fourth quarter of 2020 contributed to 35 basis points of loan yield increase, compared to $4.0 million of PPP loan fee accretion during the third quarter, or 19 basis points.
Average loans for the fourth quarter of 2020 were $8.46 billion, an increase of $99.5 million, or 5% annualized, over average loans of $8.37 billion for the third quarter of 2020, and an increase of $1.36 billion, or 19%, over average loans of $7.10 billion for the fourth quarter of 2019. We originated over 4,900 PPP loans during 2020 for a total of $1.05 billion. Excluding PPP loans, average loans for the fourth quarter of 2020 were $7.46 billion, an increase of $146.6 million compared to the third quarter of 2020, and an increase of $356.4 million, or 5%, over average loans for the fourth quarter of 2019.
Average total deposits for the fourth quarter of 2020 were $9.84 billion, an increase of $371.5 million, or 16% annualized, over average total deposits of $9.47 billion for the third quarter of 2020, and an increase of $2.16 billion, or 28%, over average total deposits of $7.68 billion for the fourth quarter of 2019.
Nonperforming assets to total assets were 0.21% for the fourth quarter of 2020, a decrease of eight basis points compared to 0.29% for the third quarter of 2020 and a decrease of 29 basis points compared to 0.50% for the fourth quarter of 2019. Annualized net charge-offs to average loans were 0.41%, a 13 basis-point decrease compared to 0.54% for the third quarter of 2020 and an increase of five basis points compared to 0.36% for the fourth quarter of 2019. The CARES Act, passed into law on March 27, 2020 as a result of the COVID-19 outbreak, allowed companies to delay their adoption of Accounting Standards Update (ASU) 2016-13, Measurement of Credit Losses on Financial Instruments (CECL), including the current expected credit loss methodology for estimating allowances for credit losses. We elected to delay adoption of ASU 2016-13 until the date on which the national emergency concerning the COVID-19 outbreak terminates or December 31, 2020, with an effective retrospective implementation date of January 1, 2020. Based on prevailing economic conditions and forecasts as of the January 1, 2020 adoption date, we recorded a net $2 million decrease in our allowance for credit losses for CECL adoption effective at January 1, 2020. This decrease is the result of implementing a more quantitative methodology along with the loan portfolio consisting primarily of commercial loans with generally short contractual maturities. The allowance for credit losses for the quarter ending December 31, 2020 was calculated under the CECL methodology and as a percentage of total loans was 1.04%. 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 1.09% at September 30, 2020 and 1.05% at December 31, 2019. Excluding PPP loans, for all periods discussed, the allowance for credit losses as a percentage of total loans under the CECL methodology was 1.16% at December 31, 2020, compared to 1.24% and 1.05% at September 30, 2020 and December 31, 2019, respectively, under the incurred loss model. We recorded a $6.3 million provision for credit losses in the fourth quarter of 2020 compared to $12.3 million in the third quarter of 2020 and $5.9 million in the fourth quarter of 2019.
Noninterest income for the fourth quarter of 2020 increased $1.3 million, or 19%, to $8.2 million from $6.9 million in the fourth quarter of 2019. Deposit service charges increased $165,000, or 9%, to $2.0 million for the fourth quarter of 2020. Mortgage banking revenue increased $1.7 million, or 123%, from the fourth quarter of 2019 to the fourth quarter of 2020. Mortgage loan origination volumes increased approximately 94% during the fourth quarter of 2020 when compared to the same quarter in 2019. Credit card revenue, net of awards, decreased $978,000, or 52%, to $913,000 during the fourth quarter of 2020, compared to the fourth quarter of 2019. Credit card awards accruals were increased by $1.7 million during the fourth quarter of 2020 when compared to the fourth quarter of 2019. A majority of these accruals will be paid out to customers in January 2021. The amount of spend on purchase cards increased $29.1 million while the amount of spend on business credit cards increased $3.0 million during the fourth quarter of 2020 when compared to the fourth quarter of 2019. Purchase card spend carries lower profit margins than credit cards due to their higher rebates. Income on life insurance policies increased $241,000, or 17%, to $1.7 million during the fourth quarter of 2020, compared to $1.4 million during the fourth quarter of 2019. We purchased $40.0 million in BOLI contracts in July of 2020 and another $20.5 million in November of 2020. The November 2020 BOLI contracts include endorsement split dollar agreements entered into with certain of our executives, as well as policies with respect to certain of our other employees. Other income for the fourth quarter of 2020 increased $188,000, or 41%, to $643,000 from $455,000 in the fourth quarter of 2019. On May 4, 2020 we bought an interest rate cap with a term of three years and a notional amount of $300 million. The cap is tied to one-month LIBOR with a strike rate of 0.50%. We wrote down the value of the cap by $61,000 during the fourth quarter of 2020 and by $781,000 year-to-date through other income and are amortizing the fee paid to our counterparty over the life of the cap.
Noninterest expense for the fourth quarter of 2020 increased $2.7 million, or 10%, to $28.2 million from $25.5 million in the fourth quarter of 2019, and increased $1.6 million, or 6%, on a linked quarter basis. Salary and benefit expense for the fourth quarter of 2020 increased $1.3 million, or 9%, to $15.0 million from $13.7 million in the fourth quarter of 2019, and was flat on a linked quarter basis. The number of FTE employees was 493 as of December 31, 2020 compared to 486 as of September 30, 2020 and 500 as of December 31, 2019. Equipment and occupancy expense increased $341,000, or 15%, to $2.7 million in the fourth quarter of 2020, from $2.4 million in the fourth quarter of 2019. Third party processing expenses increased $242,000, or 8%, to $3.4 million in the fourth quarter of 2020, from $3.2 million in the fourth quarter of 2019. Professional services expense increased $85,000, or 7%, to $1.2 million in the fourth quarter of 2020. FDIC and other regulatory assessments increased $195,000, or 17%, to $1.4 million in the fourth quarter of 2020 compared to $1.2 million in the fourth quarter of 2019. Expenses associated with other real estate owned increased $37,000 to $140,000 in the fourth quarter of 2020, from $103,000 in the fourth quarter of 2019. Other operating expenses for the fourth quarter of 2020 increased $509,000, or 13%, to $4.4 million from $3.9 million in the fourth quarter of 2019, and increased $773,000, or 21%, on a linked-quarter basis. The efficiency ratio was 28.11% during the fourth quarter of 2020 compared to 30.83% during the fourth quarter of 2019 and compared to 28.50% during the third quarter of 2020.
Income tax expense increased $4.6 million, or 44%, to $14.9 million in the fourth quarter of 2020, compared to $10.3 million in the fourth quarter of 2019. Our effective tax rate was 22.56% for the fourth quarter of 2020 compared to 20.05% for the fourth quarter of 2019. State of Alabama tax credit investments matured at the end of 2019, causing our state credit amounts to decrease from $1.0 million during the fourth quarter of 2019 to $132,000 during the fourth 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 fourth quarters of 2020 and 2019 of $170,000 and $297,000, 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.
December 31,
2020September 30,
2020June 30,
2020March 31,
2020December 31,
2019Book value per share - GAAP $ 18.41 $ 17.61 $ 16.98 $ 16.38 $ 15.71 Total common stockholders' equity - GAAP 992,852 949,589 914,588 881,885 842,682 Adjustments: Adjusted for goodwill and core deposit intangible asset 13,908 13,976 14,043 14,111 14,179 Tangible common stockholders' equity - non-GAAP $ 978,944 $ 935,613 $ 900,545 $ 867,775 $ 828,503 Tangible book value per share - non-GAAP $ 18.15 $ 17.35 $ 16.72 $ 16.12 $ 15.45 Stockholders' equity to total assets - GAAP 8.32 % 8.33 % 8.31 % 9.42 % 9.42 % Total assets - GAAP $ 11,927,955 $ 11,394,874 $ 11,012,195 $ 9,364,882 $ 8,947,653 Adjustments: Adjusted for goodwill and core deposit intangible asset 13,908 13,976 14,043 14,111 14,179 Total tangible assets - non-GAAP $ 11,914,047 $ 11,380,898 $ 10,998,152 $ 9,350,771 $ 8,933,474 Tangible common equity to total tangible assets - non-GAAP 8.22 % 8.22 % 8.19 % 9.28 % 9.27 % 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,” “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 2020, 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.comSELECTED FINANCIAL HIGHLIGHTS (Unaudited) (In thousands except share and per share data) 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 1st Quarter 2020 4th Quarter 2019 CONSOLIDATED STATEMENT OF INCOME Interest income $ 101,065 $ 96,110 $ 95,080 $ 96,767 $ 98,187 Interest expense 8,984 11,028 11,846 19,127 22,410 Net interest income 92,081 85,082 83,234 77,640 75,777 Provision for loan losses 6,283 12,284 10,283 13,584 5,884 Net interest income after provision for loan losses 85,798 72,798 72,951 64,056 69,893 Non-interest income 8,237 8,172 7,033 6,674 6,936 Non-interest expense 28,202 26,573 28,816 27,920 25,503 Income before income tax 65,833 54,397 51,168 42,810 51,326 Provision for income tax 14,852 11,035 10,720 8,032 10,289 Net income 50,981 43,362 40,448 34,778 41,037 Preferred stock dividends 32 - 31 - 32 Net income available to common stockholders $ 50,949 $ 43,362 $ 40,417 $ 34,778 $ 41,005 Earnings per share - basic $ 0.94 $ 0.80 $ 0.75 $ 0.65 $ 0.77 Earnings per share - diluted $ 0.94 $ 0.80 $ 0.75 $ 0.64 $ 0.76 Average diluted shares outstanding 54,273,944 54,232,965 54,194,506 54,167,414 54,149,554 CONSOLIDATED BALANCE SHEET DATA Total assets $ 11,932,654 $ 11,394,874 $ 11,012,195 $ 9,364,882 $ 8,947,653 Loans 8,465,688 8,508,544 8,315,375 7,568,836 7,261,451 Debt securities 886,938 913,299 856,378 827,032 759,649 Non-interest-bearing demand deposits 2,788,772 2,762,814 2,678,893 1,925,626 1,749,879 Total deposits 9,975,724 9,673,783 9,342,918 7,832,655 7,530,433 Borrowings 64,748 64,719 64,715 64,707 64,703 Stockholders' equity $ 992,852 $ 949,589 $ 914,588 $ 881,885 $ 842,682 Shares outstanding 53,943,751 53,915,245 53,874,276 53,844,009 53,623,740 Book value per share $ 18.41 $ 17.61 $ 16.98 $ 16.38 $ 15.71 Tangible book value per share (1) $ 18.15 $ 17.35 $ 16.72 $ 16.12 $ 15.45 SELECTED FINANCIAL RATIOS (Annualized) Net interest margin 3.27 % 3.14 % 3.32 % 3.58 % 3.47 % Return on average assets 1.74 % 1.54 % 1.55 % 1.54 % 1.80 % Return on average common stockholders' equity 20.78 % 18.43 % 18.40 % 16.23 % 19.75 % Efficiency ratio 28.11 % 28.50 % 31.92 % 33.11 % 30.83 % Non-interest expense to average earning assets 1.00 % 0.98 % 1.15 % 1.29 % 1.17 % CAPITAL RATIOS (2) Common equity tier 1 capital to risk-weighted assets 10.52 % 11.24 % 11.26 % 10.68 % 10.50 % Tier 1 capital to risk-weighted assets 10.52 % 11.25 % 11.27 % 10.68 % 10.50 % Total capital to risk-weighted assets 12.22 % 13.10 % 13.27 % 12.54 % 12.31 % Tier 1 capital to average assets 8.23 % 8.22 % 8.46 % 9.56 % 9.13 % Tangible common equity to total tangible assets (1) 8.22 % 8.22 % 8.19 % 9.28 % 9.27 % (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) December 31,
2020December 31,
2019% Change ASSETS Cash and due from banks $ 93,655 $ 78,618 19 % Interest-bearing balances due from depository institutions 2,115,985 451,509 369 % Federal funds sold 1,771 100,473 (98 ) % Cash and cash equivalents 2,211,411 630,600 251 % Available for sale debt securities, at fair value 886,688 759,399 17 % Held to maturity debt securities (fair value of $250 at December 31, 2020 and 2019) 250 250 - % Mortgage loans held for sale 14,425 6,312 129 % Loans 8,465,688 7,261,451 17 % Less allowance for loan losses (87,942 ) (76,584 ) 15 % Loans, net 8,377,746 7,184,867 17 % Premises and equipment, net 54,969 56,496 (3 ) % Goodwill and other identifiable intangible assets 13,908 14,179 (2 ) % Other assets 373,256 295,550 26 % Total assets $ 11,932,654 $ 8,947,653 33 % LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest-bearing $ 2,788,772 $ 1,749,879 59 % Interest-bearing 7,186,952 5,780,554 24 % Total deposits 9,975,724 7,530,433 32 % Federal funds purchased 851,545 470,749 81 % Other borrowings 64,748 64,703 - % Other liabilities 47,785 39,086 22 % Total liabilities 10,939,802 8,104,971 35 % Stockholders' equity: Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at December 31, 2020 and December 31, 2019 - - Common stock, par value $0.001 per share; 100,000,000 shares authorized; 53,943,751 shares issued and outstanding at December 31, 2020, and 53,623,740 shares issued and outstanding at December 31, 2019 54 54 - % Additional paid-in capital 223,856 219,766 2 % Retained earnings 748,224 616,611 21 % Accumulated other comprehensive income 20,218 5,749 252 % Total stockholders' equity attributable to ServisFirst Bancshares, Inc. 992,352 842,180 18 % Noncontrolling interest 500 502 - % Total stockholders' equity 992,852 842,682 18 % Total liabilities and stockholders' equity $ 11,932,654 $ 8,947,653 33 % CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Interest income: Interest and fees on loans $ 94,332 $ 89,407 $ 362,664 $ 354,308 Taxable securities 6,018 4,702 22,122 17,008 Nontaxable securities 129 274 739 1,429 Federal funds sold 5 1,053 332 6,038 Other interest and dividends 581 2,751 3,165 12,020 Total interest income 101,065 98,187 389,022 390,803 Interest expense: Deposits 7,853 19,786 45,230 90,958 Borrowed funds 1,131 2,624 5,755 12,200 Total interest expense 8,984 22,410 50,985 103,158 Net interest income 92,081 75,777 338,037 287,645 Provision for loan losses 6,283 5,884 42,434 22,638 Net interest income after provision for loan losses 85,798 69,893 295,603 265,007 Non-interest income: Service charges on deposit accounts 1,971 1,806 7,528 7,029 Mortgage banking 3,050 1,366 8,747 4,361 Credit card income 913 1,891 5,916 7,076 Securities (losses) gains - (1 ) - 27 Increase in cash surrender value life insurance 1,660 1,419 6,310 3,745 Other operating income 643 455 1,615 1,744 Total non-interest income 8,237 6,936 30,116 23,982 Non-interest expense: Salaries and employee benefits 14,970 13,680 61,414 57,783 Equipment and occupancy expense 2,680 2,339 10,070 9,272 Third party processing and other services 3,418 3,176 13,778 11,234 Professional services 1,248 1,163 4,242 4,235 FDIC and other regulatory assessments 1,366 1,171 4,354 2,975 Other real estate owned expense 140 103 2,163 415 Other operating expense 4,380 3,871 15,490 16,214 Total non-interest expense 28,202 25,503 111,511 102,128 Income before income tax 65,833 51,326 214,208 186,861 Provision for income tax 14,852 10,289 44,639 37,618 Net income 50,981 41,037 169,569 149,243 Dividends on preferred stock 32 32 63 63 Net income available to common stockholders $ 50,949 $ 41,005 $ 169,506 $ 149,180 Basic earnings per common share $ 0.94 $ 0.77 $ 3.15 $ 2.79 Diluted earnings per common share $ 0.94 $ 0.76 $ 3.13 $ 2.76 LOANS BY TYPE (UNAUDITED) (In thousands) 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 1st Quarter 2020 4th Quarter 2019 Commercial, financial and agricultural $ 3,295,900 $ 3,466,189 $ 3,498,627 $ 2,771,307 $ 2,696,210 Real estate - construction 593,614 530,919 544,586 548,578 521,392 Real estate - mortgage: Owner-occupied commercial 1,693,428 1,725,222 1,634,495 1,678,532 1,587,478 1-4 family mortgage 711,692 671,841 665,883 675,870 644,188 Other mortgage 2,106,184 2,056,549 1,911,384 1,834,137 1,747,394 Subtotal: Real estate - mortgage 4,511,304 4,453,612 4,211,762 4,188,539 3,979,060 Consumer 64,870 57,834 60,400 60,412 64,789 Total loans $ 8,465,688 $ 8,508,554 $ 8,315,375 $ 7,568,836 $ 7,261,451 SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED) (Dollars in thousands) 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 1st Quarter 2020 4th Quarter 2019 Allowance for loan losses: Beginning balance $ 92,440 $ 91,507 $ 85,414 $ 76,584 $ 77,192 Impact of Adoption of ASC 326 (2,000 ) - - - - Loans charged off: Commercial financial and agricultural 8,792 11,146 1,358 2,640 4,742 Real estate - construction 202 - 376 454 - Real estate - mortgage - 200 2,520 1,678 1,689 Consumer 38 44 62 58 139 Total charge offs 9,032 11,390 4,316 4,830 6,570 Recoveries: Commercial financial and agricultural 94 12 84 62 51 Real estate - construction 30 - 1 1 1 Real estate - mortgage 114 12 13 1 2 Consumer 13 15 28 12 24 Total recoveries 251 39 126 76 78 Net charge-offs 8,781 11,351 4,190 4,754 6,492 Provision for loan losses 6,283 12,284 10,283 13,584 5,884 Ending balance $ 87,942 $ 92,440 $ 91,507 $ 85,414 $ 76,584 Allowance for credit losses to total loans 1.04 % - - - - Allowance for credit losses to total average loans 1.04 % - - - - Allowance for loan losses to total loans - 1.09 % 1.10 % 1.13 % 1.05 % Allowance for loan losses to total average loans - 1.11 % 1.10 % 1.16 % 1.08 % Net charge-offs to total average loans 0.41 % 0.54 % 0.20 % 0.26 % 0.36 % Provision for credit losses to total average loans 0.30 % - - - - Provision for loan losses to total average loans - 0.58 % 0.50 % 0.74 % 0.33 % Nonperforming assets: Nonaccrual loans $ 13,973 $ 21,675 $ 16,881 $ 28,914 $ 30,091 Loans 90+ days past due and accruing 4,981 4,898 5,133 4,954 6,021 Other real estate owned and repossessed assets 6,497 6,976 6,537 7,448 8,178 Total $ 25,451 $ 33,549 $ 28,551 $ 41,316 $ 44,290 Nonperforming loans to total loans 0.22 % 0.31 % 0.26 % 0.45 % 0.50 % Nonperforming assets to total assets 0.21 % 0.29 % 0.26 % 0.44 % 0.50 % Nonperforming assets to earning assets 0.22 % 0.30 % 0.26 % 0.45 % 0.50 % Allowance for credit losses to nonaccrual loans 629.37 % - - - - Allowance for loan losses to nonaccrual loans - 426.48 % 542.07 % 295.41 % 254.51 % Restructured accruing loans $ 818 $ 1,800 $ 975 $ 975 $ 625 Restructured accruing loans to total loans 0.01 % 0.02 % 0.01 % 0.01 % 0.01 % TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED) (In thousands) 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 1st Quarter 2020 4th Quarter 2019 Beginning balance: $ 2,738 $ 1,568 $ 2,367 $ 3,330 $ 11,248 Additions - 1,182 - 350 250 Net (paydowns) / advances (619 ) (12 ) (12 ) (232 ) (3,481 ) Charge-offs (535 ) - (412 ) (1,081 ) (1,333 ) Transfer to OREO (151 ) - (375 ) - (3,354 ) Ending balance $ 1,433 $ 2,738 $ 1,568 $ 2,367 $ 3,330 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 1st Quarter 2020 4th Quarter 2019 Interest income: Interest and fees on loans $ 94,332 $ 89,564 $ 89,383 $ 89,385 $ 89,407 Taxable securities 6,018 5,858 5,092 5,154 4,702 Nontaxable securities 129 166 211 233 274 Federal funds sold 5 16 34 277 1,053 Other interest and dividends 581 506 360 1,718 2,751 Total interest income 101,065 96,110 95,080 96,767 98,187 Interest expense: Deposits 7,853 9,876 10,756 16,745 19,786 Borrowed funds 1,131 1,152 1,090 2,382 2,624 Total interest expense 8,984 11,028 11,846 19,127 22,410 Net interest income 92,081 85,082 83,234 77,640 75,777 Provision for loan losses 6,283 12,284 10,283 13,584 5,884 Net interest income after provision for loan losses 85,798 72,798 72,951 64,056 69,893 Non-interest income: Service charges on deposit accounts 1,971 1,818 1,823 1,916 1,806 Mortgage banking 3,050 2,519 2,107 1,071 1,366 Credit card income 913 1,840 1,398 1,765 1,891 Securities losses - - - - (1 ) Increase in cash surrender value life insurance 1,660 1,733 1,464 1,453 1,419 Other operating income 643 262 241 469 455 Total non-interest income 8,237 8,172 7,033 6,674 6,936 Non-interest expense: Salaries and employee benefits 14,970 14,994 15,792 15,658 13,680 Equipment and occupancy expense 2,680 2,556 2,434 2,400 2,339 Third party processing and other services 3,418 3,281 3,622 3,457 3,176 Professional services 1,248 955 1,091 948 1,163 FDIC and other regulatory assessments (credits) 1,366 1,061 595 1,332 1,171 Other real estate owned expense 140 119 1,303 601 103 Other operating expense 4,380 3,607 3,979 3,524 3,871 Total non-interest expense 28,202 26,573 28,816 27,920 25,503 Income before income tax 65,833 54,397 51,168 42,810 51,326 Provision for income tax 14,852 11,035 10,720 8,032 10,289 Net income 50,981 43,362 40,448 34,778 41,037 Dividends on preferred stock 32 - 31 - 32 Net income available to common stockholders $ 50,949 $ 43,362 $ 40,417 $ 34,778 $ 41,005 Basic earnings per common share $ 0.94 $ 0.80 $ 0.75 $ 0.65 $ 0.77 Diluted earnings per common share $ 0.94 $ 0.80 $ 0.75 $ 0.64 $ 0.76 AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) ON A FULLY TAXABLE-EQUIVALENT BASIS (Dollars in thousands) 4th Quarter 2020 3rd Quarter 2020 2nd Quarter 2020 1st Quarter 2020 4th Quarter 2019 Average Balance Yield /
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RateAssets: Interest-earning assets: Loans, net of unearned income (1) Taxable $ 8,435,237 4.43 % $ 8,335,087 4.26 % $ 8,301,775 4.31 % $ 7,328,594 4.89 % $ 7,066,576 5.00 % Tax-exempt (2) 29,393 4.11 30,068 4.14 31,929 4.12 32,555 4.04 35,563 4.00 Total loans, net of unearned income 8,464,630 4.43 8,365,155 4.26 8,333,704 4.31 7,361,149 4.88 7,102,139 4.99 Mortgage loans held for sale 19,459 1.37 20,053 1.41 13,278 2.09 4,282 2.16 6,505 2.44 Debt securities: Taxable 862,333 2.79 820,526 2.86 761,575 2.67 750,413 2.75 670,732 2.81 Tax-exempt (2) 25,542 2.43 31,880 2.51 38,201 2.62 44,029 2.33 50,825 2.17 Total securities (3) 887,875 2.78 852,406 2.84 799,776 2.67 794,442 2.72 721,557 2.76 Federal funds sold 16,306 0.12 41,884 0.15 83,274 0.16 105,423 1.06 238,927 1.75 Interest-bearing balances with banks 1,837,249 0.13 1,500,563 0.13 849,549 0.17 469,199 1.47 602,755 1.81 Total interest-earning assets $ 11,225,519 3.58 % $ 10,780,061 3.55 % $ 10,079,581 3.80 % $ 8,734,495 4.46 % $ 8,671,883 4.49 % Non-interest-earning assets: Cash and due from banks 91,258 75,065 76,212 66,140 70,381 Net premises and equipment 56,315 56,799 57,446 58,066 57,986 Allowance for loan losses, accrued interest and other assets 308,251 281,196 248,702 241,479 233,885 Total assets $ 11,681,343 $ 11,193,121 $ 10,461,941 $ 9,100,180 $ 9,034,135 Interest-bearing liabilities: Interest-bearing deposits: Checking $ 1,197,908 0.23 % $ 1,077,595 0.31 % $ 992,848 0.35 % $ 956,803 0.57 % $ 961,258 0.69 % Savings 86,259 0.18 82,671 0.36 72,139 0.42 67,380 0.50 62,311 0.53 Money market 4,933,285 0.31 4,739,566 0.44 4,285,907 0.52 4,061,286 1.10 4,189,283 1.34 Time deposits 810,675 1.59 841,378 1.78 877,448 1.95 805,924 2.09 712,155 2.15 Total interest-bearing deposits 7,028,127 0.44 6,741,210 0.58 6,228,342 0.69 5,891,393 1.14 5,925,007 1.32 Federal funds purchased 752,765 0.22 682,971 0.22 572,990 0.22 492,638 1.31 420,066 1.74 Other borrowings 64,717 4.41 64,717 4.78 64,711 4.85 64,707 4.85 64,698 4.79 Total interest-bearing liabilities $ 7,845,609 0.46 % $ 7,488,898 0.59 % $ 6,866,043 0.69 % $ 6,448,738 1.19 % $ 6,409,771 1.39 % Non-interest-bearing liabilities: Non-interest-bearing checking 2,813,095 2,728,513 2,646,030 1,749,671 1,759,671 Other liabilities 47,290 39,537 69,061 39,801 41,112 Stockholders' equity 956,847 917,626 862,500 853,800 818,320 Accumulated other comprehensive income 18,502 18,547 18,307 8,170 5,261 Total liabilities and stockholders' equity $ 11,681,343 $ 11,193,121 $ 10,461,941 $ 9,100,180 $ 9,034,135 Net interest spread 3.12 % 2.96 % 3.11 % 3.27 % 3.10 % Net interest margin 3.27 % 3.14 % 3.32 % 3.58 % 3.47 % (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. 