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

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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