ServisFirst Bancshares, Inc. Announces Results For Fourth Quarter of 2020

Monday, 25. January 2021 22:01

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, 2020
 Period Ending
September 30, 2020
 % Change
From Period
Ending
September 30,
2020 to Period
Ending
December 31,
2020
 Period Ending
December 31, 2019
 % Change
From Period
Ending
December 31,
2019 to Period
Ending
December 31,
2020
QUARTERLY 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,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 December 31,
2019
Book 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.com

                     
SELECTED 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,
2020
 December 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 /
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 $8,435,237 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.
  

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