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

BIRMINGHAM, Ala., April 15, 2019 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the quarter ended March 31, 2019.

FIRST QUARTER 2019 HIGHLIGHTS:

• Assets exceeded $8.3 billion, with organic growth exceeding $8.1 billion since the Bank opened in 2005
• Loans and deposits grew 12.3% and 18.5%, respectively, year over year
• Diluted earnings per share increased 8.3% from $0.60 to $0.65 year over year
• Credit quality remains strong as evidenced by improving metrics
• Efficiency ratio for the first quarter of 2019 of 34.35%

FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share amounts)
		Period Ending March 31, 2019				Period Ending December 31, 2018				% Change From Period Ending December 31, 2018 to Period Ending March 31, 2019				Period Ending March 31, 2018				% Change From Period Ending March 31, 2018 to Period Ending March 31, 2019
QUARTERLY OPERATING RESULTS
Net Income		$	35,010			$	36,237			(3	)	%		$	32,603			7	%
Net Income Available to Common Stockholders		$	35,010			$	36,205			(3	)	%		$	32,603			7	%
Diluted Earnings Per Share		$	0.65			$	0.67			(3	)	%		$	0.60			8	%
Return on Average Assets			1.75	%			1.85	%							1.91	%
Return on Average Common Stockholders' Equity			19.42	%			21.13	%							21.40	%
Average Diluted Shares Outstanding			54,076,538				54,109,450								54,183,400
BALANCE SHEET
Total Assets		$	8,310,836			$	8,007,382			4		%		$	7,011,735			19	%
Loans			6,659,908				6,533,499			2		%			5,928,327			12	%
Non-interest-bearing Demand Deposits			1,572,703				1,557,341			1		%			1,407,592			12	%
Total Deposits			7,083,666				6,915,708			2		%			5,977,387			19	%
Stockholders' Equity			745,586				715,203			4		%			629,297			18	%

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $35.0 million for the quarter ended March 31, 2019, compared to net income and net income available to common stockholders of $32.6 million for the same quarter in 2018.  Basic and diluted earnings per common share were $0.65 for the first quarter of 2019, compared to $0.61 and $0.60, respectively, for the first quarter of 2018.

Return on average assets was 1.75% and return on average common stockholders’ equity was 19.42% for the first quarter of 2019, compared to 1.91% and 21.40%, respectively, for the first quarter of 2018.

Net interest income was $68.8 million for the first quarter of 2019, compared to $68.9 million for the fourth quarter of 2018 and $62.4 million for the first quarter of 2018.  The net interest margin in the first quarter of 2019 was 3.56% compared to 3.63% in the fourth quarter of 2018 and 3.81% in the first quarter of 2018.  Loans of $4.1 million were added to nonaccrual status during the first quarter of 2019 resulting in the reversal of $73,000 in interest income compared to loans of $16.7 million added to nonaccrual status during the fourth quarter of 2018 resulting in the reversal of $390,000 in interest income.  Linked quarter increases in average rates paid on deposits in excess of increased average yields on loans drove an unfavorable mix change, while increases in average balances in loans and equity drove favorable volume change.

Average loans for the first quarter of 2019 were $6.60 billion, an increase of $168.7 million, or 3%, over average loans of $6.43 billion for the fourth quarter of 2018, and an increase of $717.7 million, or 12%, over average loans of $5.88 billion for the first quarter of 2018.

Average total deposits for the first quarter of 2019 were $6.98 billion, an increase of $241.3 million, or 4%, over average total deposits of $6.74 billion for the fourth quarter of 2018, and an increase of $1.03 billion, or 17%, over average total deposits of $5.95 billion for the first quarter of 2018.

Non-performing assets to total assets were 0.39% for the first quarter of 2019, a decrease of two basis points compared to 0.41% for the fourth quarter of 2018 and an increase of 17 basis points compared to 0.22% for the first quarter of 2018.  Net credit charge-offs to average loans was 0.20%, a 10 basis point decrease compared to 0.30% for the fourth quarter of 2018 and an increase of 10 basis points compared to 0.10% for the first quarter of 2018.  We recorded a $4.9 million provision for loan losses in the first quarter of 2019 compared to $6.5 million in the fourth quarter of 2018 and $4.1 million in the first quarter of 2018.  The allowance for loan loss as a percentage of total loans was 1.05% at March 31, 2019, December 31, 2018 and March 31, 2018, respectively.  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 increased $527,000 during the first quarter of 2019, or 12%, compared to the first quarter of 2018.  Deposit service charges increased $117,000 in the first quarter of 2019, or 7%, compared to the first quarter of 2018.  The number of transaction deposit accounts increased approximately 12% from March 31, 2018 to March 31, 2019.  Mortgage banking revenue increased $57,000, or 11%, from the first quarter of 2018 to the first quarter of 2019.  Mortgage loan originations were up about 3% year over year.  Credit card revenue increased $321,000, or 26%, to $1.6 million during the first quarter of 2019, compared to $1.3 million during the first quarter of 2018.  The number of cards increased 31% and the aggregate amount of sales on all accounts increased 21% year over year.

Non-interest expense for the first quarter of 2019 increased $2.3 million, or 10%, to $25.3 million from $23.1 million in the first quarter of 2018, and increased $2.6 million, or 10%, on a linked quarter basis.  Salary and benefit expense for the first quarter of 2019 increased $969,000, or 7%, to $14.3 million from $13.3 million in the first quarter of 2018, and increased $1.9 million, or 15%, on a linked quarter basis.  We reversed $815,000 of incentive bonus accrual in December 2018.  The number of FTE employees increased from 437 at March 31, 2018 to 485 at March 31, 2019, or 11%.  Equipment and occupancy expense increased $305,000, or 16%, to $2.3 million in the first quarter of 2019, from $2.0 million in the first quarter of 2018, and increased $96,000 on a linked-quarter basis.  Professional services expense increased $189,000, or 24%, to $1.0 million in the first quarter of 2019, from $805,000 in the first quarter of 2018, but decreased $70,000, or 7%, from $1.1 on a linked-quarter basis.  FDIC and other regulatory assessments decreased $114,000, or 10%, to $1.0 million in the first quarter of 2019, from $1.1 million in the first quarter of 2018.  Lower assessment rates result from the FDIC’s Bank Insurance Fund reaching its desired level of 1.35%.  Other operating expense for the first quarter of 2019 increased $1.2 million, or 22%, to $6.8 million from $5.6 million in the first quarter of 2018, and increased $605,000, or 10%, on a linked-quarter basis.  The year-over-year increase is attributable to increases in Federal Reserve charges resulting from increased activity from our correspondent clearing and increased loan and credit expenses resulting from loan growth.  The efficiency ratio improved to 34.35% during the first quarter of 2019 from 34.49% during the first quarter of 2018 but increased compared to 30.73% during the fourth quarter of 2018.

Income tax expense increased $1.4 million, or 20%, to $8.5 million in the first quarter of 2019, compared to $7.1 million in the first quarter of 2018.  Our effective tax rate was 19.53% for the first quarter of 2019 compared to 17.78% for the first 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 first quarters of 2019 and 2018 of $772,000 and $1.5 million, respectively.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, including tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill and core deposit intangibles associated with our acquisition of Metro Bancshares, Inc. in January 2015.  We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations.  As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use.  The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release.  Dollars are in thousands, except share and per share data.

			At March 31, 2019				At December 31, 2018				At September 30, 2018				At June 30, 2018				At March 31, 2018
Book value per share - GAAP			$	13.94			$	13.40			$	12.81			$	12.33			$	11.84
Total common stockholders' equity - GAAP				745,586				715,203				681,510				655,114				629,297
	Adjustments:
	Adjusted for goodwill and core deposit intangible asset			14,381				14,449				14,517				14,584				14,652
Tangible common stockholders' equity - non-GAAP			$	731,205			$	700,754			$	666,993			$	640,530			$	614,645
Tangible book value per share - non-GAAP			$	13.67			$	13.13			$	12.54			$	12.05			$	11.56
Stockholders' equity to total assets - GAAP				8.97	%			8.93	%			9.07	%			9.25	%			8.98	%
Total assets - GAAP			$	8,310,836			$	8,007,382			$	7,517,833			$	7,084,562			$	7,011,735
	Adjustments:
	Adjusted for goodwill and core deposit intangible asset			14,381				14,449				14,517				14,584				14,652
Total tangible assets - non-GAAP			$	8,296,455			$	7,992,933			$	7,503,316			$	7,069,978			$	6,997,083
Tangible common equity to total tangible assets - non-GAAP				8.81	%			8.77	%			8.89	%			9.06	%			8.78	%

About ServisFirst Bancshares, Inc.

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

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

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

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

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

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands except share and per share data)
		1st Quarter 2019				4th Quarter 2018				3rd Quarter 2018				2nd Quarter 2018				1st Quarter 2018
CONSOLIDATED STATEMENT OF INCOME
Interest income		$	93,699			$	90,164			$	84,058			$	78,396			$	74,009
Interest expense			24,921				21,306				17,195				13,874				11,573
Net interest income			68,778				68,858				66,863				64,522				62,436
Provision for loan losses			4,885				6,518				6,624				4,121				4,139
Net interest income after provision for loan losses			63,893				62,340				60,239				60,401				58,297
Non-interest income			4,942				5,019				5,065				4,941				4,415
Non-interest expense			25,326				22,701				22,624				23,492				23,058
Income before income tax			43,509				44,658				42,680				41,850				39,654
Provision for income tax			8,499				8,421				8,120				8,310				7,051
Net income			35,010				36,237				34,560				33,540				32,603
Preferred stock dividends			-				32				-				31				-
Net income available to common stockholders		$	35,010			$	36,205			$	34,560			$	33,509			$	32,603
Earnings per share - basic		$	0.65			$	0.68			$	0.65			$	0.63			$	0.61
Earnings per share - diluted		$	0.65			$	0.67			$	0.64			$	0.62			$	0.60
Average diluted shares outstanding			54,076,538				54,109,450				54,191,222				54,196,023				54,183,400
CONSOLIDATED BALANCE SHEET DATA
Total assets		$	8,310,836			$	8,007,382			$	7,517,833			$	7,084,562			$	7,011,735
Loans			6,659,908				6,533,499				6,363,531				6,129,649				5,928,327
Debt securities			631,946				590,184				578,271				583,799				560,885
Non-interest-bearing demand deposits			1,572,703				1,557,341				1,504,447				1,481,447				1,407,592
Total deposits			7,083,666				6,915,708				6,505,351				6,085,682				5,977,387
Borrowings			64,675				64,666				64,657				64,648				64,739
Stockholders' equity		$	745,586			$	715,203			$	681,510			$	655,114			$	629,297
Shares outstanding			53,495,208				53,375,195				53,197,807				53,150,733				53,147,169
Book value per share		$	13.94			$	13.40			$	12.81			$	12.33			$	11.84
Tangible book value per share (1)		$	13.67			$	13.13			$	12.54			$	12.05			$	11.56
SELECTED FINANCIAL RATIOS
Net interest margin			3.56	%			3.63	%			3.77	%			3.82	%			3.81	%
Return on average assets			1.75	%			1.85	%			1.87	%			1.91	%			1.91	%
Return on average common stockholders' equity			19.42	%			21.13	%			20.42	%			20.89	%			21.40	%
Efficiency ratio			34.35	%			30.73	%			31.45	%			33.82	%			34.49	%
Non-interest expense to average earning assets			1.31	%			1.20	%			1.27	%			1.39	%			1.40	%
CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets			10.30	%			10.12	%			10.08	%			10.08	%			9.88	%
Tier 1 capital to risk-weighted assets			10.30	%			10.13	%			10.09	%			10.08	%			9.88	%
Total capital to risk-weighted assets			12.21	%			12.05	%			12.05	%			12.10	%			11.91	%
Tier 1 capital to average assets			9.03	%			9.07	%			9.28	%			9.21	%			8.95	%
Tangible common equity to total tangible assets (1)			8.81	%			8.77	%			8.89	%			9.06	%			8.78	%
(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)
				March 31, 2019				March 31, 2018				% Change
ASSETS
Cash and due from banks				$	71,058			$	64,912			9		%
Interest-bearing balances due from depository institutions					547,036				53,311			926		%
Federal funds sold					181,435				197,882			(8	)	%
	Cash and cash equivalents				799,529				316,105			153		%
Available for sale debt securities, at fair value					631,696				560,635			13		%
Held to maturity debt securities (fair value of $250 at March 31, 2019 and March 31, 2018)					250				250			-		%
Mortgage loans held for sale					1,223				4,522			(73	)	%
Loans					6,659,908				5,928,327			12		%
Less allowance for loan losses					(70,207	)			(62,050	)		13		%
	Loans, net				6,589,701				5,866,277			12		%
Premises and equipment, net					57,664				58,624			(2	)	%
Goodwill and other identifiable intangible assets					14,381				14,652			(2	)	%
Other assets					216,392				190,670			13		%
	Total assets			$	8,310,836			$	7,011,735			19		%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
	Non-interest-bearing			$	1,572,703			$	1,407,592			12		%
	Interest-bearing				5,510,963				4,569,795			21		%
		Total deposits			7,083,666				5,977,387			19		%
Federal funds purchased					373,378				326,399			14		%
Other borrowings					64,675				64,739			-		%
Other liabilities					43,531				13,913			213		%
	Total liabilities				7,565,250				6,382,438			19		%
Stockholders' equity:
	Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at
		March 31, 2019 and March 31, 2018
	Common stock, par value $0.001 per share; 100,000,000 shares authorized; 53,495,208 shares				-				-			-		%
		issued and outstanding at March 31, 2019, and 53,147,169 shares issued and outstanding
		at March 31, 2018
	Additional paid-in capital				218,147				217,536			-		%
	Retained earnings				527,853				416,311			27		%
	Accumulated other comprehensive loss				(969	)			(5,105	)		NM
		Total stockholders' equity attributable to ServisFirst Bancshares, Inc.			745,084				628,795			18		%
	Noncontrolling interest				502				502			-		%
		Total stockholders' equity			745,586				629,297			18		%
	Total liabilities and stockholders' equity			$	8,310,836			$	7,011,735			19		%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
			Three Months Ended March 31,
			2019			2018
Interest income:
	Interest and fees on loans		$	85,524		$	69,674
	Taxable securities			3,746			2,745
	Nontaxable securities			446			656
	Federal funds sold			1,219			551
	Other interest and dividends			2,764			383
	Total interest income			93,699			74,009
Interest expense:
	Deposits			22,145			9,621
	Borrowed funds			2,776			1,952
	Total interest expense			24,921			11,573
	Net interest income			68,778			62,436
Provision for loan losses				4,885			4,139
	Net interest income after provision for loan losses			63,893			58,297
Non-interest income:
	Service charges on deposit accounts			1,702			1,585
	Mortgage banking			575			518
	Credit card income			1,576			1,255
	Securities gains			-			4
	Increase in cash surrender value life insurance			762			777
	Other operating income			327			276
	Total non-interest income			4,942			4,415
Non-interest expense:
	Salaries and employee benefits			14,265			13,296
	Equipment and occupancy expense			2,259			1,954
	Professional services			994			805
	FDIC and other regulatory assessments			1,019			1,133
	Other real estate owned expense			22			316
	Other operating expense			6,767			5,554
	Total non-interest expense			25,326			23,058
	Income before income tax			43,509			39,654
Provision for income tax				8,499			7,051
	Net income			35,010			32,603
	Dividends on preferred stock			-			-
	Net income available to common stockholders		$	35,010		$	32,603
Basic earnings per common share			$	0.65		$	0.61
Diluted earnings per common share			$	0.65		$	0.60

LOANS BY TYPE (UNAUDITED)
(In thousands)
			1st Quarter 2019			4th Quarter 2018			3rd Quarter 2018			2nd Quarter 2018			1st Quarter 2018
Commercial, financial and agricultural			$	2,522,136		$	2,513,225		$	2,478,788		$	2,345,879		$	2,329,904
Real estate - construction				556,219			533,192			543,611			522,788			506,050
Real estate - mortgage:
	Owner-occupied commercial			1,500,595			1,463,887			1,430,111			1,383,882			1,349,679
	1-4 family mortgage			629,285			621,634			610,460			584,133			581,498
	Other mortgage			1,394,611			1,337,068			1,236,954			1,225,906			1,099,482
Subtotal: Real estate - mortgage				3,524,491			3,422,589			3,277,525			3,193,921			3,030,659
Consumer				57,062			64,493			63,607			67,061			61,714
Total loans			$	6,659,908		$	6,533,499		$	6,363,531		$	6,129,649		$	5,928,327

SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)
(Dollars in thousands)
					1st Quarter 2019					4th Quarter 2018					3rd Quarter 2018					2nd Quarter 2018					1st Quarter 2018
Allowance for loan losses:
Beginning balance					$	68,600				$	66,879				$	64,239				$	62,050				$	59,406
Loans charged off:
	Commercial, financial and agricultural					3,037					4,685					3,923					1,732					1,088
	Real estate - construction					-					-					-					-					-
	Real estate - mortgage					50					173					48					440					381
	Consumer					218					72					76					47					88
		Total charge offs				3,305					4,930					4,047					2,219					1,557
Recoveries:
	Commercial, financial and agricultural					12					120					52					173					4
	Real estate - construction					1					4					4					97					7
	Real estate - mortgage					7					1					1					2					42
	Consumer					7					8					6					15					9
		Total recoveries				27					133					63					287					62
	Net charge-offs					3,278					4,797					3,984					1,932					1,495
	Provision for loan losses					4,885					6,518					6,624					4,121					4,139
	Ending balance				$	70,207				$	68,600				$	66,879				$	64,239				$	62,050
	Allowance for loan losses to total loans					1.05		%			1.05		%			1.05		%			1.05		%			1.05		%
	Allowance for loan losses to total average
		loans				1.06		%			1.07		%			1.07		%			1.07		%			1.05		%
	Net charge-offs to total average loans					0.20		%			0.30		%			0.25		%			0.13		%			0.10		%
	Provision for loan losses to total average
		loans				0.30		%			0.40		%			0.42		%			0.28		%			0.29		%
	Nonperforming assets:
		Nonaccrual loans			$	22,154				$	21,926				$	9,153				$	8,022				$	9,271
		Loans 90+ days past due and accruing				5,021					5,844					5,714					6,081					678
		Other real estate owned and
		repossessed assets				5,480					5,169					5,714					5,937					5,748
	Total				$	32,655				$	32,939				$	20,581				$	20,040				$	15,697
	Nonperforming loans to total loans					0.41		%			0.43		%			0.23		%			0.23		%			0.17		%
	Nonperforming assets to total assets					0.39		%			0.41		%			0.27		%			0.28		%			0.22		%
	Nonperforming assets to earning assets					0.40		%			0.43		%			0.28		%			0.29		%			0.23		%
	Reserve for loan losses to nonaccrual loans					316.90		%			312.87		%			730.68		%			800.79		%			669.29		%
	Restructured accruing loans				$	2,742				$	3,073				$	15,495				$	15,572				$	15,838
	Restructured accruing loans to total loans					0.04		%			0.04		%			0.24		%			0.25		%			0.27		%
	TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)
	(In thousands)
					1st Quarter 2019					4th Quarter 2018					3rd Quarter 2018					2nd Quarter 2018					1st Quarter 2018
	Beginning balance:				$	14,555				$	16,584				$	17,257				$	18,792				$	20,572
		Additions				-					-					100					-					-
		Net (paydowns) / advances				(766	)				(11	)				(177	)				(267	)				(1,080	)
		Charge-offs				(1,500	)				(2,018	)				(596	)				(1,268	)				(700	)
					$	12,289				$	14,555				$	16,584				$	17,257				$	18,792

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
				1st Quarter 2019			4th Quarter 2018			3rd Quarter 2018			2nd Quarter 2018			1st Quarter 2018
Interest income:
	Interest and fees on loans			$	85,524		$	83,085		$	78,991		$	73,620		$	69,674
	Taxable securities				3,746			3,506			3,276			3,127			2,745
	Nontaxable securities				446			544			583			623			656
	Federal funds sold				1,219			966			892			694			551
	Other interest and dividends				2,764			2,063			316			332			383
	Total interest income				93,699			90,164			84,058			78,396			74,009
Interest expense:
	Deposits				22,145			18,957			15,210			11,714			9,621
	Borrowed funds				2,776			2,349			1,985			2,160			1,952
	Total interest expense				24,921			21,306			17,195			13,874			11,573
	Net interest income				68,778			68,858			66,863			64,522			62,436
Provision for loan losses					4,885			6,518			6,624			4,121			4,139
	Net interest income after provision for loan losses				63,893			62,340			60,239			60,401			58,297
Non-interest income:
	Service charges on deposit accounts				1,702			1,714			1,595			1,653			1,585
	Mortgage banking				575			688			789			789			518
	Credit card income				1,576			1,521			1,414			1,361			1,255
	Securities gains				-			-			186			-			4
	Increase in cash surrender value life insurance				762			780			787			786			777
	Other operating income				327			316			294			352			276
	Total non-interest income				4,942			5,019			5,065			4,941			4,415
Non-interest expense:
	Salaries and employee benefits				14,265			12,385			13,070			13,098			13,296
	Equipment and occupancy expense				2,259			2,163			2,193			2,113			1,954
	Professional services				994			1,064			853			924			805
	FDIC and other regulatory assessments				1,019			902			675			1,159			1,133
	Other real estate owned expense				22			25			289			160			316
	Other operating expense				6,767			6,162			5,544			6,038			5,554
	Total non-interest expense				25,326			22,701			22,624			23,492			23,058
	Income before income tax				43,509			44,658			42,680			41,850			39,654
Provision for income tax					8,499			8,421			8,120			8,310			7,051
	Net income				35,010			36,237			34,560			33,540			32,603
	Dividends on preferred stock				-			32			-			31			-
	Net income available to common stockholders			$	35,010		$	36,205		$	34,560		$	33,509		$	32,603
Basic earnings per common share				$	0.65		$	0.68		$	0.65		$	0.63		$	0.61
Diluted earnings per common share				$	0.65		$	0.67		$	0.64		$	0.62		$	0.60

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
							1st Quarter 2019							4th Quarter 2018							3rd Quarter 2018							2nd Quarter 2018							1st Quarter 2018
							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				$	6,570,920			5.26	%		$	6,403,139			5.13	%		$	6,203,372			5.03	%		$	5,958,377			4.94	%		$	5,847,443			4.81	%
			Tax-exempt (2)					30,577			3.81				29,656			3.26				30,005			3.94				30,246			3.94				36,357			4.06
				Total loans, net of
					unearned income			6,601,497			5.25				6,432,795			5.12				6,233,377			5.03				5,988,623			4.93				5,883,800			4.80
		Mortgage loans held for sale						1,614			6.53				3,364			3.30				3,538			4.15				3,770			4.26				3,698			4.50
		Debt securities:
			Taxable					518,955			2.89				498,138			2.82				482,571			2.72				475,777			2.63				435,747			2.52
			Tax-exempt (2)					87,537			2.12				98,027			2.34				105,592			2.45				112,145			2.60				120,270			2.56
				Total securities (3)				606,492			2.78				596,165			2.74				588,163			2.67				587,922			2.62				556,017			2.53
		Federal funds sold						192,690			2.57				156,884			2.44				163,453			2.17				141,915			1.96				131,472			1.70
		Interest-bearing balances with banks						438,099			2.56				334,065			2.45				61,867			2.03				73,714			1.81				96,012			1.62
		Total interest-earning assets						7,840,392			4.85				7,524,152			4.76				7,051,391			4.74				6,796,966			4.64				6,672,029			4.51
Non-interest-earning assets:
		Cash and due from banks						74,430							74,272							76,800							68,190							68,309
		Net premises and equipment						58,852							58,521							58,873							59,262							59,709
		Allowance for loan losses, accrued
			interest and other assets					149,941							128,933							128,843							130,607							141,588
				Total assets			$	8,123,615						$	7,784,999						$	7,314,914						$	7,054,003						$	6,940,605
Interest-bearing liabilities:
		Interest-bearing deposits:
		Checking					$	942,686			0.86	%		$	908,416			0.74	%		$	819,807			0.67	%		$	827,540			0.56	%		$	899,311			0.52	%
		Savings						54,086			0.55				52,443			0.54				53,835			0.52				54,842			0.34				53,269			0.31
		Money market						3,758,162			1.78				3,537,522			1.56				3,305,293			1.33				3,089,595			1.10				3,027,176			0.90
		Time deposits						698,976			2.06				687,361			1.92				643,260			1.65				596,450			1.36				576,857			1.21
			Total interest-bearing deposits					5,453,910			1.65				5,185,742			1.45				4,822,195			1.25				4,568,427			1.03				4,556,613			0.86
		Federal funds purchased						312,989			2.59				263,125			2.36				229,016			2.09				295,309			1.87				297,051			1.60
		Other borrowings						64,671			4.90				64,665			4.79				64,652			4.79				64,699			4.85				64,805			4.89
		Total interest-bearing liabilities					$	5,831,570			1.73			$	5,513,532			1.53			$	5,115,863			1.33			$	4,928,435			1.13			$	4,918,469			0.95
Non-interest-bearing liabilities:
		Non-interest-bearing
			demand					1,524,502							1,551,366							1,511,410							1,469,194							1,389,217
		Other liabilities						36,362							40,185							16,333							13,079							15,007
		Stockholders' equity						735,611							689,525							678,839							650,641							621,004
		Accumulated other comprehensive
			(loss) income					(4,430	)						(9,609	)						(7,531	)						(7,346	)						(3,092	)
				Total liabilities and
					stockholders' equity		$	8,123,615						$	7,784,999						$	7,314,914						$	7,054,003						$	6,940,605
Net interest spread											3.12	%						3.23	%						3.41	%						3.51	%						3.56	%
Net interest margin											3.56	%						3.63	%						3.77	%						3.82	%						3.81	%
(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) gains on available-for-sale debt securities are excluded from the yield calculation.