Investor Relations

Press Release

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

Company Release - 10/21/2019 4:01 PM ET

BIRMINGHAM, Ala., Oct. 21, 2019 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the three and nine months ended September 30, 2019.

Third Quarter 2019 Highlights:

  • Deposits increased 17%, annualized, on a linked quarter basis and 19% year-over-year, respectively
  • Loans increased 10% year-over-year
  • Diluted EPS was $0.69 for the third quarter of 2019 compared to $0.64 for the third quarter of 2018
  • Efficiency ratio of 33.44% through the first nine months of 2019
FINANCIAL SUMMARY (UNAUDITED)                   
(in Thousands except share and per share amounts)                   
                      
    Period Ending
September 30,
2019
 Period Ending
June 30, 2019
 % Change
From Period
Ending June
30, 2019 to
Period Ending
September 30,
2019
 Period Ending
September 30,
2018
 % Change
From Period
Ending
September 30,
2018 to Period
Ending
September 30,
2019
 
QUARTERLY OPERATING RESULTS                   
Net Income $37,563  $35,633  5% $34,560  9% 
Net Income Available to Common Stockholders $37,563  $35,602  6% $34,560  9% 
Diluted Earnings Per Share $0.69  $0.66  5% $0.64  8% 
Return on Average Assets  1.67%  1.69%     1.87%    
Return on Average Common Stockholders' Equity  18.69%  18.72%     20.42%    
Average Diluted Shares Outstanding  54,096,368   54,089,107      54,191,222     
                      
Net income - adjusted for FDIC assessment credit* $36,315  $35,633  2% $34,560  5% 
Net Income Available to Common Stockholders - adjusted                   
 for FDIC assessment credit* $36,315  $35,602  2% $34,560  5% 
Diluted Earnings Per Share - adjusted for FDIC assessment                   
 credit* $0.67  $0.66  2% $0.64  5% 
Return on Average Assets - adjusted for FDIC assessment                   
 credit*  1.62%  1.69%     1.87%    
Return on Average Common Stockholders' Equity -                   
 adjusted for FDIC assessment credit*  18.07%  18.72%     20.42%    
                      
YEAR-TO-DATE OPERATING RESULTS                   
Net Income $108,206         $100,703  7% 
Net Income Available to Common Stockholders $108,175         $100,672  7% 
Diluted Earnings Per Share $2.00         $1.86  8% 
Return on Average Assets  1.70%         1.90%    
Return on Average Common Stockholders' Equity  18.93%         20.88%    
Average Diluted Shares Outstanding  54,087,410          54,190,244     
                      
Net income - adjusted for FDIC assessment credit* $106,958         $100,703  6% 
Net Income Available to Common Stockholders - adjusted                   
 for FDIC assessment credit* $106,927         $100,672  6% 
Diluted Earnings Per Share - adjusted for FDIC assessment                   
 credit* $1.98         $1.86  6% 
Return on Average Assets - adjusted for FDIC assessment                   
 credit*  1.68%         1.90%    
Return on Average Common Stockholders' Equity -                   
 adjusted for FDIC assessment credit*  18.71%         20.88%    
                      
BALANCE SHEET                   
Total Assets $9,005,112  $8,740,237  3% $7,517,833  20% 
Loans  7,022,069   6,967,886  1%  6,363,531  10% 
Non-interest-bearing Demand Deposits  1,678,672   1,576,959  6%  1,504,447  12% 
Total Deposits  7,724,158   7,404,794  4%  6,505,351  19% 
Stockholders' Equity  810,537   778,957  4%  681,510  19% 
                      
* The adjustment for the FDIC assessment credit included in the comparative periods presented in this press release are more fully described in "Detailed Financials" and in "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below. 

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $37.6 million for the quarter ended September 30, 2019, compared to net income and net income available to common stockholders of $34.6 million for the same quarter in 2018. Basic and diluted earnings per common share were $0.70 and $0.69, respectively, for the third quarter of 2019, compared to $0.65 and $0.64, respectively, for the third quarter of 2018.

Annualized return on average assets was 1.67% and annualized return on average common stockholders’ equity was 18.69% for the third quarter of 2019, compared to 1.87% and 20.42%, respectively, for the third quarter of 2018.

Net interest income was $73.0 million for the third quarter of 2019, compared to $70.1 million for the second quarter of 2019 and $66.9 million for the third quarter of 2018. The net interest margin in the third quarter of 2019 was 3.36% compared to 3.44% in the second quarter of 2019 and 3.77% in the third quarter of 2018. Linked quarter decreases in average rates paid on deposits in excess of decreases in loan yields drove a favorable rate change and increases in average balances in loans and equity drove favorable volume change. Increases in average balances in interest-bearing deposits in excess of increases in average balances in loans drove an unfavorable mix change as this excess was invested in lower yielding interest-bearing balances with other banks.

Average loans for the third quarter of 2019 were $6.96 billion, an increase of $172.2 million, or 10% annualized, over average loans of $6.79 billion for the second quarter of 2019, and an increase of $727.9 million, or 12%, over average loans of $6.23 billion for the third quarter of 2018.

Average total deposits for the third quarter of 2019 were $7.58 billion, an increase of $399.0 million, or 22% annualized, over average total deposits of $7.18 billion for the second quarter of 2019, and an increase of $1.25 billion, or 20%, over average total deposits of $6.33 billion for the third quarter of 2018.

Non-performing assets to total assets were 0.52% for the third quarter of 2019, an increase of 9 basis points compared to 0.43% for the second quarter of 2019 and an increase of 25 basis points compared to 0.27% for the third quarter of 2018.  Net charge-offs to average loans were 0.49%, a 27 basis point increase compared to 0.22% for the second quarter of 2019 and an increase of 24 basis points compared to 0.25% for the third quarter of 2018. We recorded a $7.0 million provision for loan losses in the third quarter of 2019 compared to $4.9 million in the second quarter of 2019 and $6.6 million in the third quarter of 2018. We recognized a $7.4 million close-out payment resulting from the termination of a state-operated loan guarantee program during the third quarter of 2019. The allowance for loan loss as a percentage of total loans was 1.10% at September 30, 2019, an increase of eight basis points compared to 1.02% at June 30, 2019 and an increase of five basis points compared to 1.05% as of September 30, 2018. 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 2019 increased $1.1 million, or 23%, to $6.2 million from $5.1 million in the third quarter of 2018. Deposit service charges increased $140,000 in the third quarter of 2019, or 9%, compared to the third quarter of 2018. The number of transaction deposit accounts increased approximately 11% from September 30, 2018 to September 30, 2019. Mortgage banking revenue increased $544,000, or 69%, from the third quarter of 2018 to the third quarter of 2019. Mortgage loan originations increased approximately 64% during the third quarter of 2019 when compared to the same quarter in 2018. Credit card revenue increased $454,000, or 32%, to $1.9 million during the third quarter of 2019, compared to $1.4 million during the third quarter of 2018. The number of accounts increased approximately 35% and the aggregate amount of sales on all accounts increased 41% during the third quarter of 2019. Other income for the third quarter of 2019 increased $159,000, or 54%, to $453,000 from $294,000 in the third quarter of 2018.

Non-interest expense for the third quarter of 2019 increased $2.5 million, or 11%, to $25.2 million from $22.6 million in the third quarter of 2018, and decreased $861,000, or 3%, on a linked quarter basis. During the third quarter of 2019 we recognized a credit in the amount of $1.7 million to our FDIC and other regulatory assessments expense as a result of the Federal Deposit Insurance Corporation’s (“FDIC”) Small Bank Assessment Credit. This credit is discussed further below in “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.” Salary and benefit expense for the third quarter of 2019 increased $2.4 million, or 19%, to $15.5 million from $13.1 million in the third quarter of 2018, and increased $1.2 million, or 8%, on a linked quarter basis. The number of FTE employees increased from 456 at September 30, 2018 to 506 at September 30, 2019, or 11%. Equipment and occupancy expense increased $194,000, or 9%, to $2.4 million in the third quarter of 2019, from $2.2 million in the third quarter of 2018, and increased $100,000 on a linked-quarter basis. Professional services expense increased $34,000, or 4%, to $887,000 in the third quarter of 2019, from $853,000 in the third quarter of 2018, and decreased $304,000, or 26%, from $1.2 million on a linked-quarter basis. FDIC and other regulatory assessments decreased $971,000 to a credit amount of $296,000 in the third quarter of 2019, from $675,000 in the third quarter of 2018. As mentioned above, we recognized an assessment credit during the third quarter of 2019. Expenses associated with other real estate owned decreased $211,000, or 73%, to $78,000 in the third quarter of 2019, from $289,000 in the third quarter of 2018. We had one write-down of a commercial warehouse building in 2018. Other operating expenses for the third quarter of 2019 increased $1.1 million, or 19%, to $6.6 million from $5.5 million in the third quarter of 2018, and decreased $306,000, or 4%, on a linked-quarter basis. Increases in data processing and Federal Reserve Bank service charges contributed to this increase in other operating expenses for the year-over-year comparison. Decreases in business development expenses contributed to the decrease in the linked-quarter comparison. The efficiency ratio was 31.76% during the third quarter of 2019 compared to 31.45% during the third quarter of 2018 and compared to 34.30% during the second quarter of 2019.

Income tax expense increased $1.4 million, or 17%, to $9.5 million in the third quarter of 2019, compared to $8.1 million in the third quarter of 2018. Our effective tax rate was 20.20% for the third quarter of 2019 compared to 19.03% for the third quarter of 2018. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the third quarters of 2019 and 2018 of $231,000 and $539,000, respectively.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

During the third quarter of 2019 we recorded a $1.7 million credit to our FDIC and other regulatory assessments expense as a result of the FDIC’s Small Bank Assessment Credit. Financial measures included in this press release that are presented adjusted for this credit are net income, net income available to common stockholders, diluted earnings per share, return on average assets and return on average common stockholders’ equity. Each of these five financial measures excludes the impact of this item, net of tax, attributable to the FDIC Small Bank Assessment Credit and are all considered non-GAAP financial measures. This press release also 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 tables provide 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.

   Three Months
Ended
September 30,
2019
 Nine Months
Ended
September 30,
2019
       
Net income - GAAP $37,563   $108,206               
 Adjustments:                     
 FDIC Small Bank Assessment Credit  1,669    1,669               
 Tax on adjustment  421    421               
Adjusted net income - non-GAAP $36,315   $106,958               
                       
Net income available to common stockholders - GAAP $37,563   $108,175               
 Adjustments:                     
 FDIC Small Bank Assessment Credit  1,669    1,669               
 Tax on adjustment  421    421               
Adjusted net income available to common stockholders -                     
 non-GAAP $36,315   $106,927               
                       
Diluted earnings per share - GAAP $0.69   $2.00               
 Adjustments:                     
 FDIC Small Bank Assessment Credit  (0.03)   (0.03)              
 Tax on adjustment  0.01    0.01               
Adjusted diluted earnings per share - non-GAAP  0.67    1.98               
                       
Return on average assets - GAAP  1.67%  1.70%             
Net income - GAAP $37,563   $108,206               
 Adjustments:                     
 FDIC Small Bank Assessment Credit  1,669    1,669               
 Tax on adjustment  421    421               
Adjusted net income - non-GAAP $36,315   $106,958               
Average assets - GAAP $8,919,405   $8,505,310               
Adjusted return on average assets - non-GAAP  1.62%  1.68%             
                       
Return on average common stockholders' equity - GAAP  18.69%  18.93%             
Net income - GAAP $37,563   $108,206               
 Adjustments:                     
 FDIC Small Bank Assessment Credit  1,669    1,669               
 Tax on adjustment  421    421               
Adjusted net income - non-GAAP $36,315   $106,958               
Average common stockholders' equity - GAAP $797,294   $764,070               
Adjusted return on average common stockholders' equity -                     
 non-GAAP  18.07%  18.71%             
                       
   At September
30, 2019
 At June 30,
2019
 At March 31,
2019
 At December
31, 2018
 At September
30, 2018
 
Book value per share - GAAP $15.13   $14.55   $13.94  $13.40  $12.81  
Total common stockholders' equity - GAAP  810,537    778,957    745,586   715,203   681,510  
 Adjustments:                     
 Adjusted for goodwill and core deposit intangible asset  14,246    14,314    14,381   14,449   14,517  
Tangible common stockholders' equity - non-GAAP $796,291   $764,643   $731,205  $700,754  $666,993  
Tangible book value per share - non-GAAP $14.86   $14.29   $13.67  $13.13  $12.54  
                       
Stockholders' equity to total assets - GAAP  9.00%  8.91%  8.97%  8.93%  9.07% 
Total assets - GAAP $9,005,112   $8,740,237   $8,310,836  $8,007,382  $7,517,833  
 Adjustments:                     
 Adjusted for goodwill and core deposit intangible asset  14,246    14,314    14,381   14,449   14,517  
Total tangible assets - non-GAAP $8,990,866   $8,725,923   $8,296,455  $7,992,933  $7,503,316  
Tangible common equity to total tangible assets - non-GAAP  8.86%  8.76%  8.81%  8.77%  8.89% 

About ServisFirst Bancshares, Inc.

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

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

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

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

Contact: ServisFirst Bank
Davis Mange (205) 949-3420
[email protected]

SELECTED FINANCIAL HIGHLIGHTS (Unaudited)                     
(In thousands except share and per share data)                     
  3rd Quarter 2019 2nd Quarter 2019 1st Quarter 2019 4th Quarter 2018 3rd Quarter 2018 
CONSOLIDATED STATEMENT OF INCOME                     
Interest income $101,130  $97,787  $93,699  $90,164  $84,058  
Interest expense  28,125   27,702   24,921   21,306   17,195  
Net interest income  73,005   70,085   68,778   68,858   66,863  
Provision for loan losses  6,985   4,884   4,885   6,518   6,624  
Net interest income after provision for loan losses  66,020   65,201   63,893   62,340   60,239  
Non-interest income  6,210   5,778   4,942   5,019   5,065  
Non-interest expense  25,161   26,022   25,326   22,701   22,624  
Income before income tax  47,069   44,957   43,509   44,658   42,680  
Provision for income tax  9,506   9,324   8,499   8,421   8,120  
Net income  37,563   35,633   35,010   36,237   34,560  
Preferred stock dividends  -   31   -   32   -  
Net income available to common stockholders $37,563  $35,602  $35,010  $36,205  $34,560  
Earnings per share - basic $0.70  $0.66  $0.65  $0.68  $0.65  
Earnings per share - diluted $0.69  $0.66  $0.65  $0.67  $0.64  
Average diluted shares outstanding  54,096,353   54,089,107   54,076,538   54,109,450   54,191,222  
                      
CONSOLIDATED BALANCE SHEET DATA                     
Total assets $9,005,112  $8,740,237  $8,310,836  $8,007,382  $7,517,833  
Loans  7,022,069   6,967,886   6,659,908   6,533,499   6,363,531  
Debt securities  688,271   658,221   631,946   590,184   578,271  
Non-interest-bearing demand deposits  1,678,672   1,576,959   1,572,703   1,557,341   1,504,447  
Total deposits  7,724,158   7,404,794   7,083,666   6,915,708   6,505,351  
Borrowings  64,693   64,684   64,675   64,666   64,657  
Stockholders' equity $810,537  $778,957  $745,586  $715,203  $681,510  
                      
Shares outstanding  53,579,013   53,526,882   53,495,208   53,375,195   53,197,807  
Book value per share $15.13  $14.55  $13.94  $13.40  $12.81  
Tangible book value per share (1) $14.86  $14.29  $13.67  $13.13  $12.54  
                      
SELECTED FINANCIAL RATIOS (Annualized)                     
Net interest margin  3.36%  3.44%  3.56%  3.63%  3.77% 
Return on average assets  1.67%  1.69%  1.75%  1.85%  1.87% 
Return on average common stockholders' equity  18.69%  18.72%  19.42%  21.13%  20.42% 
Efficiency ratio  31.76%  34.30%  34.35%  30.73%  31.45% 
Non-interest expense to average earning assets  1.16%  1.28%  1.31%  1.20%  1.27% 
                      
CAPITAL RATIOS (2)                     
Common equity tier 1 capital to risk-weighted assets  10.39%  10.18%  10.30%  10.12%  10.08% 
Tier 1 capital to risk-weighted assets  10.39%  10.19%  10.30%  10.13%  10.09% 
Total capital to risk-weighted assets  12.27%  12.02%  12.21%  12.05%  12.05% 
Tier 1 capital to average assets  8.88%  9.00%  9.03%  9.07%  9.28% 
Tangible common equity to total tangible assets (1)  8.86%  8.76%  8.81%  8.77%  8.89% 
                      
(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,
2019
 September 30,
2018
 % Change 
ASSETS          
Cash and due from banks $108,804  $77,692  40% 
Interest-bearing balances due from depository institutions  463,625   59,096  685% 
Federal funds sold  474,298   229,033  107% 
 Cash and cash equivalents  1,046,727   365,821  186% 
Available for sale debt securities, at fair value  688,021   578,021  19% 
Held to maturity debt securities (fair value of $250 at September 30, 2019 and 2018)  250   250  -% 
Mortgage loans held for sale  8,691   5,277  65% 
Loans  7,022,069   6,363,531  10% 
Less allowance for loan losses  (77,192)  (66,879) 15% 
 Loans, net  6,944,877   6,296,652  10% 
Premises and equipment, net  56,570   57,882  (2)% 
Goodwill and other identifiable intangible assets  14,246   14,517  (2)% 
Other assets  245,730   198,524  24% 
 Total assets $9,005,112  $7,517,833  20% 
LIABILITIES AND STOCKHOLDERS' EQUITY          
Liabilities:          
Deposits:          
 Non-interest-bearing $1,678,672  $1,504,447  12% 
 Interest-bearing  6,045,486   5,000,904  21% 
  Total deposits  7,724,158   6,505,351  19% 
Federal funds purchased  370,231   246,094  50% 
Other borrowings  64,693   64,657  -% 
Other liabilities  35,493   20,221  76% 
 Total liabilities  8,194,575   6,836,323  20% 
Stockholders' equity:          
 Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at          
  September 30, 2019 and September 30, 2018  -   -     
 Common stock, par value $0.001 per share; 100,000,000 shares authorized; 53,579,113 shares          
  issued and outstanding at September 30, 2019, and 53,197,807 shares issued and outstanding          
  at September 30, 2018  54   53  2% 
 Additional paid-in capital  219,234   218,062  1% 
 Retained earnings  584,968   472,681  24% 
 Accumulated other comprehensive income (loss)  5,779   (9,788) NM  
  Total stockholders' equity attributable to ServisFirst Bancshares, Inc.  810,035   681,008  19% 
 Noncontrolling interest  502   502  -% 
  Total stockholders' equity  810,537   681,510  19% 
 Total liabilities and stockholders' equity $9,005,112  $7,517,833  20% 


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)          
(In thousands except per share data)             
    Three Months Ended September 30, Nine Months Ended September 30, 
    2019  2018 2019 2018 
Interest income:             
 Interest and fees on loans $90,767  $78,991 $264,901 $222,285 
 Taxable securities  4,367   3,276  12,306  9,148 
 Nontaxable securities  316   583  1,155  1,862 
 Federal funds sold  1,768   892  4,985  2,137 
 Other interest and dividends  3,912   316  9,269  1,031 
 Total interest income  101,130   84,058  292,616  236,463 
Interest expense:             
 Deposits  24,787   15,210  71,172  36,545 
 Borrowed funds  3,338   1,985  9,576  6,097 
 Total interest expense  28,125   17,195  80,748  42,642 
 Net interest income  73,005   66,863  211,868  193,821 
Provision for loan losses  6,985   6,624  16,754  14,884 
 Net interest income after provision for loan losses  66,020   60,239  195,114  178,937 
Non-interest income:             
 Service charges on deposit accounts  1,735   1,595  5,223  4,833 
 Mortgage banking  1,333   789  2,995  2,096 
 Credit card income  1,868   1,414  5,185  4,030 
 Securities gains  34   186  28  190 
 Increase in cash surrender value life insurance  787   787  2,327  2,350 
 Other operating income  453   294  1,172  922 
 Total non-interest income  6,210   5,065  16,930  14,421 
Non-interest expense:             
 Salaries and employee benefits  15,499   13,070  44,103  39,464 
 Equipment and occupancy expense  2,387   2,193  6,933  6,260 
 Professional services  887   853  3,072  2,582 
 FDIC and other regulatory (credits) assessments  (296)  675  1,804  2,967 
 Other real estate owned expense  78   289  312  765 
 Other operating expense  6,606   5,544  20,285  17,136 
 Total non-interest expense  25,161   22,624  76,509  69,174 
 Income before income tax  47,069   42,680  135,535  124,184 
Provision for income tax  9,506   8,120  27,329  23,481 
 Net income  37,563   34,560  108,206  100,703 
 Dividends on preferred stock  -   -  31  31 
 Net income available to common stockholders $37,563  $34,560 $108,175 $100,672 
Basic earnings per common share $0.70  $0.65 $2.02 $1.89 
Diluted earnings per common share $0.69  $0.64 $2.00 $1.86 


LOANS BY TYPE (UNAUDITED)               
(In thousands)               
                 
   3rd Quarter 2019 2nd Quarter 2019 1st Quarter 2019 4th Quarter 2018 3rd Quarter 2018
Commercial, financial and agricultural $2,653,934 $2,633,529 $2,522,136 $2,513,225 $2,478,788
Real estate - construction  550,871  603,779  556,219  533,192  543,611
Real estate - mortgage:               
 Owner-occupied commercial  1,526,911  1,538,279  1,500,595  1,463,887  1,430,111
 1-4 family mortgage  632,346  630,963  629,285  621,634  610,460
 Other mortgage  1,592,072  1,496,512  1,394,611  1,337,068  1,236,954
Subtotal: Real estate - mortgage  3,751,329  3,665,754  3,524,491  3,422,589  3,277,525
Consumer  65,935  64,824  57,062  64,493  63,607
Total loans $7,022,069 $6,967,886 $6,659,908 $6,533,499 $6,363,531


SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)                  
(Dollars in thousands)                  
     3rd Quarter 2019 2nd Quarter 2019 1st Quarter 2019 4th Quarter 2018 3rd Quarter 2018 
Allowance for loan losses:                     
Beginning balance $71,386   $70,207    $68,600    $66,879    $64,239   
Loans charged off:                     
 Commercial financial and agricultural  3,626    3,610    3,037    4,685    3,923   
 Real estate - mortgage  4,974    169    50    173    48   
 Consumer  172    63    218    72    76   
  Total charge offs  8,772    3,842    3,305    4,930    4,047   
Recoveries:                     
 Commercial financial and agricultural  126    117    12    120    52   
 Real estate - construction  1    -    1    4    4   
 Real estate - mortgage  -    4    7    1    1   
 Consumer  60    16    7    8    6   
  Total recoveries  187    137    27    133    63   
 Net charge-offs  8,585    3,705    3,278    4,797    3,984   
 Other transfer  7,406    -    -    -    -   
 Provision for loan losses  6,985    4,884    4,885    6,518    6,624   
 Ending balance $77,192   $71,386   $70,207   $68,600   $66,879   
                         
 Allowance for loan losses to total loans  1.10%  1.02 %  1.05%  1.05%  1.05% 
 Allowance for loan losses to total average                     
  loans  1.11%  1.05%  1.06%  1.07%  1.07% 
 Net charge-offs to total average loans  0.49%  0.22%  0.20%  0.30%  0.25% 
 Provision for loan losses to total average                     
  loans  0.40%  0.29%  0.30%  0.40%  0.42% 
 Nonperforming assets:                     
  Nonaccrual loans $35,732   $21,840    $22,154    $21,926    $9,153   
  Loans 90+ days past due and accruing  5,317    10,299    5,021    5,844    5,714   
  Other real estate owned and                     
    repossessed assets  5,337    5,649    5,480    5,169    5,714   
 Total $46,386   $37,788   $32,655   $32,939   $20,581   
                         
 Nonperforming loans to total loans  0.58%  0.46%  0.41%  0.43%  0.23% 
 Nonperforming assets to total assets  0.52%  0.43%  0.39%  0.41%  0.27% 
 Nonperforming assets to earning assets  0.53%  0.44%  0.40%  0.43%  0.28% 
 Reserve for loan losses to nonaccrual loans  216.03%  326.86%  316.90%  312.87%  730.68% 
                         
 Restructured accruing loans $3,468   $2,742    $2,742    $3,073    $15,495   
                         
 Restructured accruing loans to total loans  0.05%  0.04%  0.04%  0.04%  0.24% 
                         
 TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)              
 (In thousands)                 
     3rd Quarter 2019 2nd Quarter 2019 1st Quarter 2019 4th Quarter 2018 3rd Quarter 2018 
 Beginning balance: $11,284   $12,289   $14,555   $16,584   $17,257   
  Additions  -    -    -    -    100   
  Net (paydowns) / advances  714    (12)   (766)   (11)   (177)  
  Charge-offs  (750)   (993)   (1,500)   (2,018)   (596)  
     $11,248   $11,284   $12,289   $14,555   $16,584   


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)          
(In thousands except per share data)          
    3rd Quarter 2019 2nd Quarter 2019 1st Quarter 2019 4th Quarter 2018 3rd Quarter 2018 
Interest income:                
 Interest and fees on loans $90,767  $88,610  $85,524 $83,085 $78,991 
 Taxable securities  4,367   4,193   3,746  3,506  3,276 
 Nontaxable securities  316   393   446  544  583 
 Federal funds sold  1,768   1,998   1,219  966  892 
 Other interest and dividends  3,912   2,593   2,764  2,063  316 
 Total interest income  101,130   97,787   93,699  90,164  84,058 
Interest expense:                
 Deposits  24,787   24,240   22,145