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Lakeland Financial Reports Record Performance

Lakeland Financial Reports Record Performance
Lakeland Financial Reports Record Performance

Quarterly and Annual Net Income and Earnings per Share Set New Highs

WARSAW, Ind., Jan. 27, 2020 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported full year net income of $87.0 million, which represents an increase of $6.6 million or 8% compared with net income of $80.4 million for 2018. Diluted earnings per share also increased 8% to $3.38 compared to $3.13 for 2018. This per share performance also represents a record for the company and its shareholders.

The company further reported record quarterly net income of $22.2 million for the three months ended December 31, 2019 versus $21.4 million for the comparable period of 2018, an increase of 4%. Diluted net income per common share was also a record for the quarter and increased 4% to $0.86 for the three months ended December 31, 2019 versus $0.83 for the comparable period of 2018.

David M. Findlay, President and Chief Executive Officer commented, “2019 represents the tenth consecutive year of reporting record net income and earnings per share performance. In addition, we have reported record net income in 30 of the last 31 years. We are proud of the Lake City Bank team’s ability to produce consistently strong performance over the last three decades. It’s a reflection of our unwavering commitment to our team, our communities and our clients and an affirmation of our execution-driven culture.”

Highlights for the year and quarter are noted below.

Full year 2019 versus 2018 highlights:

  • Return on average assets of 1.76%, up from 1.69%

  • Return on average equity of 15.47% compared to 16.51%

  • Organic average loan growth of $131 million

  • Average deposit growth of $149 million

  • Net interest income increase of $3.8 million, or 2%

  • Net interest margin of 3.38% compared to 3.43%

  • Noninterest income increase of $4.7 million, or 12%

  • Revenue growth of $8.5 million, or 4%

  • Pretax net income growth of $8.4 million, or 9%

  • Net charge-offs to average loans of 0.03%, down from 0.13% a year ago

  • Total equity and tangible common equity1 increase of $76 million, or 15%

4th Quarter 2019 versus 4th Quarter 2018 highlights:

  • Return on average assets of 1.77%, up from 1.75%

  • Return on average equity of 14.90% compared to 16.76%

  • Organic loan growth of $151 million, or 4%

  • Core deposit growth of $141 million, or 4%

  • Noninterest income increase of $1.0 million, or 10%

  • Noninterest expense decrease of $402,000, or 2%

  • Net income increase of $835,000, or 4%

  • Average total equity increase of $86 million, or 17%

4th Quarter 2019 versus 3rd Quarter 2019 highlights:

  • Return on average assets of 1.77%, compared to 1.72%

  • Return on average equity of 14.90% compared to 14.78%

  • Organic loan growth of $43 million or 1%

  • Noninterest income increase of $354,000, or 3%

  • Noninterest expense decrease of $615,000, or 3%

  • Provision expense of $250,000 compared to $1.0 million

  • Nonperforming assets to total assets of 0.38% versus 0.39%

  • Total equity and tangible common equity1 increase of $14 million, or 2%

As announced on January 14, 2020, the board of directors approved a cash dividend for the fourth quarter of $0.30 per share, payable on February 5, 2020, to shareholders of record as of January 25, 2020. Including this dividend, the total dividends per share for 2019 represent a 16% increase over the total dividends per share paid for 2018.

In addition, on January 14, 2020, the board of directors reauthorized the purchase of up to $30 million worth of shares of the company’s common stock, representing approximately 2.4% of the company’s issued and outstanding shares of common stock as of December 31, 2019.

Return on average assets was 1.76% in 2019 compared to 1.69% in 2018. Return on average total equity for the year ended December 31, 2019 was 15.47%, compared to 16.51% in 2018. The company’s total capital as a percent of risk-weighted assets was 14.36% at December 31, 2019, compared to 14.20% at December 31, 2018 and 14.78% at September 30, 2019. The company’s tangible common equity to tangible assets ratio1 was 12.02% at December 31, 2019, compared to 10.63% at December 31, 2018 and 11.74% at September 30, 2019. Average equity was impacted during 2019 by the $18.3 million increase in the fair value adjustment for available-for-sale investment securities, net of tax.

Findlay continued, “The strength of our capital structure provides us with foundation for continued growth. Our strong profitability metrics reflect our ability to manage our capital structure conservatively while at the same time producing healthy returns for our shareholders.”

Average total loans for 2019 were $3.97 billion, an increase of $130.6 million, or 3%, versus $3.84 billion for 2018. Total loans outstanding grew $151.1 million, or 4%, from $3.91 billion as of December 31, 2018 to $4.07 billion as of December 31, 2019. On a linked quarter basis, total loans grew $42.6 million, or 1%, from $4.02 billion at September 30, 2019. Average total loans for the fourth quarter of 2019 were $4.00 billion, an increase of $96.1 million, or 2%, versus $3.91 billion for the comparable period of 2018. On a linked quarter basis, total average loans decreased by $14.1 million, from $4.02 billion for the third quarter of 2019 to $4.00 billion for the fourth quarter of 2019.

Average total deposits for 2019 were $4.24 billion, an increase of $148.6 million, or 4%, versus $4.09 billion for 2018. Importantly, average core deposits increased by 5% or $201.3 million, during 2019 to $4.1 billion from $3.9 billion in 2018 due to growth in average commercial deposits of $211.5 million, or 21%, growth in average retail deposits of $104.4 million, or 7%, offset by a decline in public funds of $114.6 million, or 8%.

Total deposits grew $89.8 million, or 2%, from $4.04 billion as of December 31, 2018 to $4.13 billion as of December 31, 2019. In addition, total core deposits, which exclude brokered deposits, increased $141.1 million, or 4%, from $3.88 billion at December 31, 2018 to $4.02 billion at December 31, 2019 due to growth in commercial deposits of $199.5 million, or 19%, growth in retail deposits of $30.9 million, or 2%, offset by declines in public fund deposits of $89.3 million, or 7%. Brokered deposits decreased by $51.4 million or 31% from $164.9 million at December 31, 2018 to $113.5 million at December 31, 2019 due primarily to the maturity of brokered certificates of deposit that were not renewed during the year.

Findlay added, “Commercial deposit growth continues to be a highlight in our deposit gathering results. Over the two year period ended December 31, 2019, new commercial deposit accounts represent 70% of commercial checking account growth. Organic deposit growth funded our organic loan growth this year and afforded us the liquidity to redeem our $30 million of trust preferred subordinated notes at the end of the year. ”

The company’s net interest margin decreased five basis points to 3.38% for 2019 compared to 3.43% for 2018. The company’s net interest margin was 3.30% in the fourth quarter of 2019 versus 3.52% for the fourth quarter of 2018 and 3.38% during the third quarter 2019. The lower year-to-date margin in 2019 was due to a higher cost of funds and lower yields on investment securities, partially offset by a higher yield on the company’s loan portfolio. The decline in the investment securities yield was due to the combined effect of the flattening, and at times inverted, yield curve and the overall decline interest rates experienced during the second half of 2019.

Net interest income increased $3.8 million, or 2%, to $155.0 million in 2019, versus $151.3 million in 2018 due to growth in earning assets during the year offset by net interest margin compression. Net interest margin was negatively impacted by the Federal Reserve Bank’s reduction of the target fed funds rate in July, September and October of 2019. Net interest income decreased $708,000, or 2%, to $38.9 million in the fourth quarter of 2019, versus $39.6 million in the fourth quarter of 2018. On a linked quarter basis, net interest income decreased by $663,000 from $39.5 million, or 2%.

The company recorded a provision for loan losses of $3.2 million in 2019 compared to $6.4 million in 2018. The company recorded a provision for loan losses of $250,000 in the fourth quarter of 2019, versus $300,000 in the fourth quarter of 2018 and $1.0 million in the third quarter of 2019. The company’s allowance for loan losses as of December 31, 2019 was $50.7 million compared to $48.5 million as of December 31, 2018 and $50.6 million as of September 30, 2019. The allowance for loan losses represented 1.25% of total loans as of December 31, 2019 versus 1.24% at December 31, 2018 and 1.26% as of September 30, 2019.

Net charge offs were $1.0 million in 2019 versus $5.1 million in 2018. Net charge offs for the fourth quarter of 2019 were $226,000 versus net charge offs of $189,000 in the fourth quarter of 2018 and net charge offs of $936,000 during the linked third quarter 2019. Net charge offs to average loans were 0.03% in 2019 compared to 0.13% for 2018. Annualized net charge offs to average loans were 0.02% for the fourth quarters of 2019 and 2018. Annualized net charge offs to average loans were 0.09% for the linked third quarter of 2019.

Nonperforming assets increased $11.5 million, or 151%, to $19.0 million as of December 31, 2019 versus $7.6 million as of December 31, 2018 due to an increase in nonaccrual loans. On a linked quarter basis, nonperforming assets were $250,000, or 1% lower than the $19.3 million reported as of September 30, 2019. The ratio of nonperforming assets to total assets at December 31, 2019 increased to 0.38% from 0.16% at December 31, 2018 and decreased from 0.39% at September 30, 2019.

Findlay noted, “Asset quality and general economic conditions in our markets are stable. We are particularly encouraged by the $23 million decline in watch list loans as compared to the recent third quarter. Although loan demand is softer than we have historically experienced, we do not see any signs of a credit downturn in our footprint.”

The company adopted the FASB’s new rule related to credit losses on financial instruments on January 1, 2020. The company intends to disclose an updated range of impact upon adoption of this new standard in its upcoming Form 10-K for the year ended December 31, 2019, based on the company’s loan portfolio composition as of December 31, 2019.

The company’s noninterest income increased $4.7 million, or 12%, to $45.0 million in 2019, compared to $40.3 million in 2018. The company’s noninterest income increased by $1.0 million, or 10%, to $11.1 million for the fourth quarter of 2019, compared to $10.1 million for the fourth quarter of 2018. Noninterest income increased by $354,000, or 3% from $10.8 million during the linked third quarter of 2019 due to increased revenue from swap fees generated from commercial lending transactions, mortgage banking income and 10% growth in wealth advisory fees during the quarter. For the full year of 2019, noninterest income was positively impacted by increases in other income driven by swap fees generated from commercial lending transactions, increases in bank owned life insurance income, loan and service fees, mortgage banking income, and wealth advisory and brokerage fees due to continued growth of client relationships. Offsetting the increases was a decrease in service charges on deposit accounts driven by lower treasury management fees due to the previously disclosed discontinuance of a treasury management relationship in July 2019.

The company’s noninterest expense increased $3.2 million, or 4%, to $89.4 million in 2019 compared to $86.2 million in 2018. The company’s noninterest expense decreased $402,000, or 2%, to $22.1 million in the fourth quarter of 2019, compared to $22.5 million in the fourth quarter of 2018 and was lower by $615,000, or 3%, on a linked quarter basis. Salaries and employee benefits increased during 2019 primarily due to an increase to staffing in revenue producing and risk management areas as well as normal merit increases. Professional fees increased due to higher legal expenses and increased utilization of accounting firms for outsourced services. Data processing fees also increased during 2019 primarily due to the company’s continued investment in customer focused, technology-based solutions and ongoing cybersecurity and data management enhancements. Offsetting these increases were decreases in FDIC insurance and other regulatory fees as well as decreases in corporate and business development expense. In the third quarter of 2019, the FDIC announced that due to the Deposit Insurance Fund reserve ratio exceeding 1.38%, banks with consolidated assets of less than $10 billion would receive credits against their deposit insurance assessments. The bank’s $1.1 million credit was applied as a reduction of FDIC assessments commencing with the payment of the second quarter assessment paid in July 2019 and is expected to be fully utilized by the first quarter of 2020.

The company’s efficiency ratio was 44.7% for 2019 compared to 45.0% for 2018. The company’s efficiency ratio was 44.2% for the fourth quarter of 2019, compared to 45.4% for the fourth quarter of 2018 and 45.2% for the linked third quarter of 2019.

Lakeland Financial Corporation is a $5.0 billion bank holding company headquartered in Warsaw, Indiana. Lake City Bank, its single bank subsidiary, is the sixth largest bank headquartered in the state and the largest bank 100% invested in Indiana. Lake City Bank operates 50 offices in Northern and Central Indiana, delivering technology-driven and client-centric financial services solutions to individuals and businesses.

Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” In addition to the results presented in accordance with generally accepted accounting principles in the United States, this earnings release contains certain non-GAAP financial measures. The company believes that providing non-GAAP financial measures provides investors with information useful to understanding the company’s financial performance. Additionally, these non-GAAP measures are used by management for planning and forecasting purposes, including measures based on “tangible common equity” which is “total equity” excluding intangible assets, net of deferred tax, and “tangible assets” which is “total assets” excluding intangible assets, net of deferred tax. A reconciliation of these non-GAAP measures to the most comparable GAAP equivalents is included in the attached financial tables where the non-GAAP measures are presented.

This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including trade policies and those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

1 Non-GAAP financial measure – see “Reconciliation of Non-GAAP Financial Measures.”

LAKELAND FINANCIAL CORPORATION

FOURTH QUARTER 2019 FINANCIAL HIGHLIGHTS

Three Months Ended

Twelve Months Ended

(Unaudited – Dollars in thousands, except per share data)

Dec. 31,

Sep. 30,

Dec. 31,

Dec. 31,

Dec. 31,

END OF PERIOD BALANCES

2019

2019

2018

2019

2018

Assets

$

4,946,745

$

4,948,155

$

4,875,254

$

4,946,745

$

4,875,254

Deposits

4,133,819

4,283,390

4,044,065

4,133,819

4,044,065

Brokered Deposits

113,527

116,698

164,888

113,527

164,888

Core Deposits (3)

4,020,292

4,166,692

3,879,177

4,020,292

3,879,177

Loans

4,065,828

4,023,221

3,914,745

4,065,828

3,914,745

Allowance for Loan Losses

50,652

50,628

48,453

50,652

48,453

Total Equity

598,100

584,436

521,704

598,100

521,704

Goodwill net of deferred tax assets

3,789

3,779

3,779

3,789

3,779

Tangible Common Equity (1)

594,311

580,657

517,925

594,311

517,925

AVERAGE BALANCES

Total Assets

$

4,981,989

$

4,941,503

$

4,837,604

$

4,941,904

$

4,758,392

Earning Assets

4,748,361

4,698,937

4,523,304

4,656,707

4,461,366

Investments - available-for-sale

610,947

614,784

573,073

603,580

562,385

Loans

4,001,640

4,015,773

3,905,511

3,974,532

3,843,912

Total Deposits

4,308,623

4,267,708

4,163,118

4,242,524

4,093,894

Interest Bearing Deposits

3,302,593

3,306,638

3,256,930

3,298,406

3,235,867

Interest Bearing Liabilities

3,336,343

3,356,436

3,390,159

3,390,512

3,382,507

Total Equity

591,193

575,865

505,570

562,601

487,062

INCOME STATEMENT DATA

Net Interest Income

$

38,882

$

39,545

$

39,590

$

155,047

$

151,271

Net Interest Income-Fully Tax Equivalent

39,459

40,084

40,091

157,176

153,088

Provision for Loan Losses

250

1,000

300

3,235

6,400

Noninterest Income

11,119

10,765

10,077

44,997

40,302

Noninterest Expense

22,122

22,737

22,524

89,424

86,229

Net Income

22,198

21,454

21,363

87,047

80,411

PER SHARE DATA

Basic Net Income Per Common Share

$

0.86

$

0.84

$

0.84

$

3.40

$

3.18

Diluted Net Income Per Common Share

0.86

0.83

0.83

3.38

3.13

Cash Dividends Declared Per Common Share

0.30

0.30

0.26

1.16

1.00

Dividend Payout

34.88

%

36.14

%

31.33

%

34.32

%

31.95

%

Book Value Per Common Share (equity per share issued)

23.34

22.81

20.62

23.34

20.62

Tangible Book Value Per Common Share (1)

23.19

22.66

20.47

23.19

20.47

Market Value – High

50.00

47.46

47.41

50.00

51.76

Market Value – Low

42.00

41.26

37.79

39.78

37.79

Basic Weighted Average Common Shares Outstanding

25,623,016

25,622,338

25,301,732

25,588,404

25,288,533

Diluted Weighted Average Common Shares Outstanding

25,818,433

25,796,696

25,746,490

25,758,893

25,727,831

KEY RATIOS

Return on Average Assets

1.77

%

1.72

%

1.75

%

1.76

%

1.69

%

Return on Average Total Equity

14.90

14.78

16.76

15.47

16.51

Average Equity to Average Assets

11.87

11.65

10.45

11.38

10.24

Net Interest Margin

3.30

3.38

3.52

3.38

3.43

Efficiency (Noninterest Expense / Net Interest Income plus Noninterest Income)

44.24

45.19

45.38

44.70

44.96

Tier 1 Leverage (2)

11.67

12.07

11.44

11.67

11.44

Tier 1 Risk-Based Capital (2)

13.21

13.62

13.05

13.21

13.05

Common Equity Tier 1 (CET1) (2)

13.21

12.94

12.35

13.21

12.35

Total Capital (2)

14.36

14.78

14.20

14.36

14.20

Tangible Capital (1) (2)

12.02

11.74

10.63

12.02

10.63

ASSET QUALITY

Loans Past Due 30 - 89 Days

$

1,471

$

922

$

10,020

$

1,471

$

10,020

Loans Past Due 90 Days or More

45

306

0

45

0

Non-accrual Loans

18,675

18,657

7,260

18,675

7,260

Nonperforming Loans (includes nonperforming TDRs)

18,720

18,963

7,260

18,720

7,260

Other Real Estate Owned

316

316

316

316

316

Other Nonperforming Assets

0

7

0

0

0

Total Nonperforming Assets

19,036

19,286

7,577

19,036

7,577

Performing Troubled Debt Restructurings

5,909

5,975

8,016

5,909

8,016

Nonperforming Troubled Debt Restructurings (included in nonperforming loans)

3,188

3,422

4,384

3,188

4,384

Total Troubled Debt Restructurings

9,097

9,397

12,400

9,097

12,400

Impaired Loans

27,763

28,070

26,661

27,763

26,661

Non-Impaired Watch List Loans

152,421

174,768

159,938

152,421

159,938

Total Impaired and Watch List Loans

180,184

202,838

186,599

180,184

186,599

Gross Charge Offs

321

1,221

424

1,910

6,110

Recoveries

95

285

235

874

1,043

Net Charge Offs/(Recoveries)

226

936

189

1,036

5,067

Net Charge Offs/(Recoveries) to Average Loans

0.02

%

0.09

%

0.02

%

0.03

%

0.13

%

Loan Loss Reserve to Loans

1.25

%

1.26

%

1.24

%

1.25

%

1.24

%

Loan Loss Reserve to Nonperforming Loans

270.58

%

266.98

%

667.40

%

270.58

%

667.40

%

Loan Loss Reserve to Nonperforming Loans and Performing TDRs

205.66

%

203.02

%

317.17

%

205.66

%

317.17

%

Nonperforming Loans to Loans

0.46

%

0.47

%

0.19

%

0.46

%

0.19

%

Nonperforming Assets to Assets

0.38

%

0.39

%

0.16

%

0.38

%

0.16

%

Total Impaired and Watch List Loans to Total Loans

4.43

%

5.04

%

4.77

%

4.43

%

4.77

%

OTHER DATA

Full Time Equivalent Employees

568

561

553

568

553

Offices

50

50

49

50

49

(1) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Financial Measures"

(2) Capital ratios for December 31, 2019 are preliminary until the Call Report is filed.

(3) Core deposits equals deposits less brokered deposits


CONSOLIDATED BALANCE SHEETS (in thousands, except share data)

December 31,

December 31,

2019

2018

(Unaudited)

ASSETS

Cash and due from banks

$

68,605

$

192,290

Short-term investments

30,776

24,632

Total cash and cash equivalents

99,381

216,922

Securities available-for-sale (carried at fair value)

608,233

585,549

Real estate mortgage loans held-for-sale

4,527

2,293

Loans, net of allowance for loan losses of $50,652 and $48,453

4,015,176

3,866,292

Land, premises and equipment, net

60,154

58,097

Bank owned life insurance

83,848

77,106

Federal Reserve and Federal Home Loan Bank stock

13,772

13,772

Accrued interest receivable

15,391

15,518

Goodwill

4,970

4,970

Other assets

41,293

34,735

Total assets

$

4,946,745

$

4,875,254

LIABILITIES

Noninterest bearing deposits

$

983,307

$

946,838

Interest bearing deposits

3,150,512

3,097,227

Total deposits

4,133,819

4,044,065

Borrowings

Securities sold under agreements to repurchase

0

75,555

Federal Home Loan Bank advances

170,000

170,000

Subordinated debentures

0

30,928

Total borrowings

170,000

276,483

Accrued interest payable

11,604

10,404

Other liabilities

33,222

22,598

Total liabilities

4,348,645

4,353,550

STOCKHOLDERS' EQUITY

Common stock: 90,000,000 shares authorized, no par value

25,623,016 shares issued and 25,444,275 outstanding as of December 31, 2019

25,301,732 shares issued and 25,128,773 outstanding as of December 31, 2018

114,858

112,383

Retained earnings

475,247

419,179

Accumulated other comprehensive income (loss)

12,059

(6,191

)

Treasury stock at cost (178,741 shares as of December 31, 2019, 172,959 shares as of December 31, 2018)

(4,153

)

(3,756

)

Total stockholders' equity

598,011

521,615

Noncontrolling interest

89

89

Total equity

598,100

521,704

Total liabilities and equity

$

4,946,745

$

4,875,254


CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2019

2018

2019

2018

NET INTEREST INCOME

Interest and fees on loans

Taxable

$

47,639

$

49,091

$

196,733

$

181,451

Tax exempt

231

187

951

814

Interest and dividends on securities

Taxable

1,953

2,516

8,909

9,717

Tax exempt

1,956

1,712

7,127

6,079

Other interest income

533

222

1,490

909

Total interest income

52,312

53,728

215,210

198,970

Interest on deposits

13,017

13,425

57,148

44,913

Interest on borrowings

Short-term

16

282

1,311

1,143

Long-term

397

431

1,704

1,643

Total interest expense

13,430

14,138

60,163

47,699

NET INTEREST INCOME

38,882

39,590

155,047

151,271

Provision for loan losses

250

300

3,235

6,400

NET INTEREST INCOME AFTER PROVISION FOR

LOAN LOSSES

38,632

39,290

151,812

144,871

NONINTEREST INCOME

Wealth advisory fees

1,833

1,668

6,835

6,344

Investment brokerage fees

387

415

1,687

1,458

Service charges on deposit accounts

2,926

4,289

15,717

15,831

Loan and service fees

2,508

2,366

9,911

9,291

Merchant card fee income

659

627

2,641

2,461

Bank owned life insurance income

644

67

1,890

1,244

Mortgage banking income

370

152

1,626

1,150

Net securities gains (losses)

48

(44

)

142

(50

)

Other income

1,744

537

4,548

2,573

Total noninterest income

11,119

10,077

44,997

40,302

NONINTEREST EXPENSE

Salaries and employee benefits

12,203

12,086

49,434

48,353

Net occupancy expense

1,295

1,257

5,295

5,149

Equipment costs

1,378

1,403

5,521

5,243

Data processing fees and supplies

2,788

2,393

10,407

9,685

Corporate and business development

995

1,996

4,371

5,066

FDIC insurance and other regulatory fees

72

419

638

1,701

Professional fees

1,157

1,082

4,644

3,798

Other expense

2,234

1,888

9,114

7,234

Total noninterest expense

22,122

22,524

89,424

86,229

INCOME BEFORE INCOME TAX EXPENSE

27,629

26,843

107,385

98,944

Income tax expense

5,431

5,480

20,338

18,533

NET INCOME

$

22,198

$

21,363

$

87,047

$

80,411