SFBS ServisFirst Bancshares Inc

ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the quarter ended March 31, 2021.

First Quarter 2021 Highlights:

• Diluted earnings per share were $0.95 for the first quarter, an increase of 48% over the first quarter of 2020
• Deposits grew from $7.83 billion to $10.58 billion year-over-year, or 35%, and grew $602 million on a linked-quarter basis, or 24%, annualized
• We funded approximately 2,170 round-two Payroll Protection Program (“PPP”) loans totaling approximately $386 million through March 31, 2021
• Our loan pipeline reached a record level during the quarter
• Liquidity reached record levels, with over $2.5 billion on deposit at the Federal Reserve Bank
• We continue to experience excellent credit quality as we prepare to exit the pandemic
• Our efficiency ratio improved to 28% during the quarter compared to 33% during the first quarter of 2020
• Book value per share increased to $19.03, a 16% increase year-over-year

Tom Broughton, Chairman, President and CEO, said, “We are pleased to see the rebound in our pipeline to record levels. All signs point to an economic resurgence post-pandemic.”

Bud Foshee, CFO, said, “Growth has continued our normal trend lines while our expense control has been very good.”

FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share amounts)
				Period Ending March 31, 2021				Period Ending December 31, 2020				% Change From Period Ending December 31, 2020 to Period Ending March 31, 2021			Period Ending March 31, 2020				% Change From Period Ending March 31, 2020 to Period Ending March 31, 2021
QUARTERLY OPERATING RESULTS
Net Income				$	51,455			$	50,981			1	%		$	34,778			48	%
Net Income Available to Common Stockholders				$	51,455			$	50,949			1	%		$	34,778			48	%
Diluted Earnings Per Share				$	0.95			$	0.94			1	%		$	0.64			48	%
Return on Average Assets					1.72	%			1.74	%						1.54	%
Return on Average Common Stockholders' Equity					19.83	%			20.78	%						16.23	%
Average Diluted Shares Outstanding					54,381,991				54,273,944							54,167,414
BALANCE SHEET
Total Assets				$	12,647,374			$	11,932,654			6	%		$	9,364,882			35	%
Loans					8,504,980				8,465,688			-	%			7,568,836			12	%
Non-interest-bearing Demand Deposits					3,044,611				2,788,772			9	%			1,925,626			58	%
Total Deposits					10,577,610				9,975,724			6	%			7,832,655			35	%
Stockholders' Equity					1,030,485				992,852			4	%			881,885			17	%

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $51.5 million for the quarter ended March 31, 2021, compared to net income and net income available to common stockholders of $34.8 million for the same quarter in 2020. Basic and diluted earnings per common share were $0.95 for the first quarter of 2021, compared to $0.65 and $0.64, respectively, for the first quarter of 2020.

Annualized return on average assets was 1.72% and annualized return on average common stockholders’ equity was 19.83% for the first quarter of 2021, compared to 1.54% and 16.23%, respectively, for the first quarter of 2020.

Net interest income was $92.4 million for the first quarter of 2021, compared to $92.1 million for the fourth quarter of 2020 and $77.6 million for the first quarter of 2020. The net interest margin in the first quarter of 2021 was 3.20% compared to 3.27% in the fourth quarter of 2020 and 3.58% in the first quarter of 2020. Accretion of net fees on PPP loans of $9.1 million during the first quarter of 2021 contributed 43 basis points of the loan yield, compared to $7.5 million of PPP loan fee accretion during the fourth quarter of 2020, or 35 basis points of the loan yield.

Average loans for the first quarter of 2021 were $8.51 billion, an increase of $47.9 million, or 2% annualized, with average loans of $8.46 billion for the fourth quarter of 2020, and an increase of $1.15 billion, or 16%, with average loans of $7.36 billion for the first quarter of 2020. Origination of round-two PPP loans during the first quarter of 2021 totaled $402 million while forgiveness of round-one PPP loans during the first quarter of 2021 totaled $334 million.

Average total deposits for the first quarter of 2021 were $10.18 billion, an increase of $337.0 million, or 14% annualized, with average total deposits of $9.84 billion for the fourth quarter of 2020, and an increase of $2.54 billion, or 33%, with average total deposits of $7.64 billion for the first quarter of 2020.

Non-performing assets to total assets were 0.16% for the first quarter of 2021, a decrease of five basis points compared to 0.21% for the fourth quarter of 2020 and a decrease of 28 basis points compared to 0.44% for the first quarter of 2020. Annualized net charge-offs to average loans were 0.02%, a 39 basis point decrease compared to 0.41% for the fourth quarter of 2020 and a decrease of 24 basis points compared to 0.26% for the first quarter of 2020. The allowance for credit losses for the quarters ending March 31, 2021 and December 31, 2020 were calculated under the CECL methodology and as a percentage of total loans were 1.12% and 1.04%, respectively. Other quarter-end periods presented for the allowance for loans 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 1.13% at March 31, 2020. Excluding PPP loans, for all periods discussed, the allowance for credit losses as a percentage of total loans under the CECL methodology at March 31, 2021 and December 31, 2020 was 1.26% and 1.16%, respectively, compared to 1.13% at March 31, 2020, under the incurred loss model. We recorded a $7.5 million provision for credit losses in the first quarter of 2021 compared to $6.3 million in the fourth quarter of 2020 and $13.6 million in the first quarter of 2020.

Non-interest income for the first quarter of 2021 increased $1.8 million, or 27%, to $8.5 million from $6.7 million in the first quarter of 2020. Mortgage banking revenue increased $1.7 million, or 157%, to $2.7 million from the first quarter of 2020 to the first quarter of 2021. Mortgage loan sales increased approximately 106% during the first quarter of 2021 when compared to the same quarter in 2020. Net credit card revenue decreased $573,000, or 33%, to $1.2 million during the first quarter of 2021, compared to $1.8 million during the first quarter of 2020, mainly due to a one-time catch up in under-accrued rebate expenses. The number of credit card accounts increased approximately 28% and the aggregate amount of spend on all credit card accounts increased 16% during the first quarter of 2021 compared to the first quarter of 2020. Cash surrender value of life insurance increased $205,000, or 14%, to $1.7 million during the first quarter of 2021, compared to $1.5 million during the first quarter of 2020. Other income for the first quarter of 2021 increased $489,000, or 104%, to $1.0 million from $469,000 in the first quarter of 2020. The interest rate cap bought in May of 2020 increased in value during the first quarter of 2021, contributing $275,000 to the increase in other income. Merchant service revenue increased from $100,000 during the first quarter of 2020 to $191,000 during the first quarter of 2021.

Non-interest expense for the first quarter of 2021 increased $1.0 million, or 4%, to $28.9 million from $27.9 million in the first quarter of 2020, and increased $712,000, or 3%, on a linked quarter basis. Salary and benefit expense for the first quarter of 2021 decreased $115,000, or 1%, to $15.6 million from $15.7 million in the first quarter of 2020, and increased $573,000, or 4%, on a linked quarter basis. Salary expense alone only increased by $11,000 during the first quarter of 2021 compared to the first quarter of 2020. Increased loan origination cost deferrals during the first quarter of 2021 over the amount in the first quarter of 2020 offset increased incentive accruals during the same comparative periods. Origination of round-two PPP loans during the first quarter of 2021 drove the increase in cost deferrals. The number of FTE employees decreased by one to 491 at March 31, 2021 compared to 492 at March 31, 2020, and decreased by two from the end of the fourth quarter of 2020. Equipment and occupancy expense increased $254,000, or 11%, to $2.7 million in the first quarter of 2021, from $2.4 million in the first quarter of 2020, and decreased $26,000 on a linked-quarter basis. Third party processing and other services expense decreased $41,000, or 1%, to $3.4 million in the first quarter of 2021, from $3.5 million in the first quarter of 2020 and was unchanged on a linked-quarter basis. Professional services expense decreased $25,000, or 3%, to $923,000 in the first quarter of 2021, from $948,000 in the first quarter of 2020, and decreased $325,000 on a linked-quarter basis. Fourth quarter 2020 professional services were inflated due to expenses associated with updating the Bank’s online application portal for the round-two PPP loans. FDIC and other regulatory assessments increased $250,000 to $1.6 million in the first quarter of 2021, from $1.3 million in the first quarter of 2020, and increased $216,000, or 16%, on a linked quarter basis. A larger assessment base driven by increased deposits caused the increase in FDIC assessments. Expenses associated with other real estate owned decreased $444,000 to $157,000 in the first quarter of 2021, from $601,000 in the first quarter of 2020, and increased $17,000, or 12%, on a linked quarter basis. First quarter 2020 included write-downs in value of property based on updated appraisals related to one foreclosed loan relationship. Other operating expenses for the first quarter of 2021 increased $1.1 million, or 32%, to $4.6 million from $3.5 million in the first quarter of 2020, and increased $259,000 on a linked-quarter basis. We increased our credit losses on unfunded loan commitments by $600,000 in the first quarter of 2021 with a charge to other operating expenses. The efficiency ratio was 28.68% during the first quarter of 2021 compared to 33.11% during the first quarter of 2020 and compared to 28.11% during the fourth quarter of 2020.

Income tax expense increased $5.0 million, or 48%, to $13.0 million in the first quarter of 2021, compared to $8.0 million in the first quarter of 2020. Our effective tax rate was 20.18% for the first quarter of 2021 compared to 18.76% for the first 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 first quarters of 2021 and 2020 of $1.6 million and $1.1 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 31,2021				At December 31,2020				At September 30,2020				At June 30, 2020				At March 31,2020
Book value per share - GAAP			$	19.03			$	18.41			$	17.61			$	16.98			$	16.38
Total common stockholders' equity - GAAP				1,030,485				992,852				949,589				914,588				881,885
	Adjustments:
	Adjusted for goodwill and core deposit intangible asset			13,841				13,908				13,976				14,043				14,111
Tangible common stockholders' equity - non-GAAP			$	1,016,644			$	978,944			$	935,613			$	900,545			$	867,775
Tangible book value per share - non-GAAP			$	18.78			$	18.15			$	17.35			$	16.72			$	16.12
Stockholders' equity to total assets - GAAP				8.15	%			8.32	%			8.33	%			8.31	%			9.42	%
Total assets - GAAP			$	12,647,374			$	11,927,955			$	11,394,874			$	11,012,195			$	9,364,882
	Adjustments:
	Adjusted for goodwill and core deposit intangible asset			13,841				13,908				13,976				14,043				14,111
Total tangible assets - non-GAAP			$	12,633,533			$	11,914,047			$	11,380,898			$	10,998,152			$	9,350,771
Tangible common equity to total tangible assets - non-GAAP				8.05	%			8.22	%			8.22	%			8.19	%			9.28	%

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 BankDavis Mange (205) 949-3420dmange@servisfirstbank.com

SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
(In thousands except share and per share data)
		1st Quarter 2021				4th Quarter 2020				3rd Quarter 2020				2nd Quarter 2020				1st Quarter 2020
CONSOLIDATED STATEMENT OF INCOME
Interest income		$	100,396			$	101,065			$	96,110			$	95,080			$	96,767
Interest expense			8,031				8,984				11,028				11,846				19,127
Net interest income			92,365				92,081				85,082				83,234				77,640
Provision for credit losses			7,451				6,283				12,284				10,283				13,584
Net interest income after provision for credit losses			84,914				85,798				72,798				72,951				64,056
Non-interest income			8,463				8,237				8,172				7,033				6,674
Non-interest expense			28,914				28,202				26,573				28,816				27,920
Income before income tax			64,463				65,833				54,397				51,168				42,810
Provision for income tax			13,008				14,852				11,035				10,720				8,032
Net income			51,455				50,981				43,362				40,448				34,778
Preferred stock dividends			-				32				-				31				-
Net income available to common stockholders		$	51,455			$	50,949			$	43,362			$	40,417			$	34,778
Earnings per share - basic		$	0.95			$	0.94			$	0.80			$	0.75			$	0.65
Earnings per share - diluted		$	0.95			$	0.94			$	0.80			$	0.75			$	0.64
Average diluted shares outstanding			54,381,991				54,273,944				54,232,965				54,194,506				54,167,414
CONSOLIDATED BALANCE SHEET DATA
Total assets		$	12,647,374			$	11,932,654			$	11,394,874			$	11,012,195			$	9,364,882
Loans			8,504,980				8,465,688				8,508,544				8,315,375				7,568,836
Debt securities			962,129				886,938				913,299				856,378				827,032
Non-interest-bearing demand deposits			3,044,611				2,788,772				2,762,814				2,678,893				1,925,626
Total deposits			10,577,610				9,975,724				9,673,783				9,342,918				7,832,655
Borrowings			64,691				64,748				64,719				64,715				64,707
Stockholders' equity		$	1,030,485			$	992,852			$	949,589			$	914,588			$	881,885
Shares outstanding			54,137,650				53,943,751				53,915,245				53,874,276				53,844,009
Book value per share		$	19.03			$	18.41			$	17.61			$	16.98			$	16.38
Tangible book value per share (1)		$	18.78			$	18.15			$	17.35			$	16.72			$	16.12
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin			3.20	%			3.27	%			3.14	%			3.32	%			3.58	%
Return on average assets			1.72	%			1.74	%			1.54	%			1.55	%			1.54	%
Return on average common stockholders' equity			19.83	%			20.78	%			18.43	%			18.40	%			16.23	%
Efficiency ratio			28.68	%			28.11	%			28.50	%			31.92	%			33.11	%
Non-interest expense to average earning assets			1.00	%			1.00	%			0.98	%			1.15	%			1.29	%
CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets			10.73	%			10.50	%			11.24	%			11.26	%			10.68	%
Tier 1 capital to risk-weighted assets			10.73	%			10.50	%			11.25	%			11.27	%			10.68	%
Total capital to risk-weighted assets			12.48	%			12.20	%			13.10	%			13.27	%			12.54	%
Tier 1 capital to average assets			8.25	%			8.23	%			8.22	%			8.46	%			9.56	%
Tangible common equity to total tangible assets (1)			8.05	%			8.22	%			8.22	%			8.19	%			9.28	%
(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, 2021				March 31, 2020				% Change
ASSETS
Cash and due from banks				$	70,107			$	80,461			(13	)%
Interest-bearing balances due from depository institutions					2,738,046				297,943			819	%
Federal funds sold					1,577				306,127			(99	)%
	Cash and cash equivalents				2,809,730				684,531			310	%
Available for sale debt securities, at fair value					961,879				826,782			16	%
Held to maturity debt securities (fair value of $250 at March 31, 2021 and 2020)					250				250			-
Mortgage loans held for sale					15,834				6,747			135	%
Loans					8,504,980				7,568,836			12	%
Less allowance for credit losses					(94,906	)			(85,414	)		11	%
	Loans, net				8,410,074				7,483,422			12	%
Premises and equipment, net					56,472				55,992			1	%
Goodwill and other identifiable intangible assets					13,841				14,111			(2	)%
Other assets					379,294				293,047			29	%
	Total assets			$	12,647,374			$	9,364,882			35	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
	Non-interest-bearing			$	3,044,611			$	1,925,626			58	%
	Interest-bearing				7,532,999				5,907,029			28	%
		Total deposits			10,577,610				7,832,655			35	%
Federal funds purchased					911,558				543,623			68	%
Other borrowings					64,691				64,707			-	%
Other liabilities					63,030				42,012			50	%
	Total liabilities				11,616,889				8,482,997			37	%
Stockholders' equity:
	Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at
		March 31, 2021 and March 31, 2020			-				-
	Common stock, par value $0.001 per share; 100,000,000 shares authorized; 54,137,650 shares
		issued and outstanding at March 31, 2021, and 53,844,009 shares issued and outstanding
		at March 31, 2020			54				54			-	%
	Additional paid-in capital				224,302				221,901			1	%
	Retained earnings				788,875				641,980			23	%
	Accumulated other comprehensive income				16,754				17,448			(4	)%
		Total stockholders' equity attributable to ServisFirst Bancshares, Inc.			1,029,985				881,383			17	%
	Noncontrolling interest				500				502			-	%
		Total stockholders' equity			1,030,485				881,885			17	%
	Total liabilities and stockholders' equity			$	12,647,374			$	9,364,882			35	%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
				Three Months Ended March 31,
				2021			2020
Interest income:
	Interest and fees on loans			$	93,803		$	89,385
	Taxable securities				5,807			5,154
	Nontaxable securities				107			233
	Federal funds sold				3			277
	Other interest and dividends				676			1,718
	Total interest income				100,396			96,767
Interest expense:
	Deposits				6,881			16,745
	Borrowed funds				1,150			2,382
	Total interest expense				8,031			19,127
	Net interest income				92,365			77,640
Provision for credit losses					7,451			13,584
	Net interest income after provision for credit losses				84,914			64,056
Non-interest income:
	Service charges on deposit accounts				1,908			1,916
	Mortgage banking				2,747			1,071
	Credit card income				1,192			1,765
	Increase in cash surrender value life insurance				1,658			1,453
	Other operating income				958			469
	Total non-interest income				8,463			6,674
Non-interest expense:
	Salaries and employee benefits				15,543			15,658
	Equipment and occupancy expense				2,654			2,400
	Third party processing and other services				3,416			3,457
	Professional services				923			948
	FDIC and other regulatory assessments				1,582			1,332
	Other real estate owned expense				157			601
	Other operating expense				4,639			3,524
	Total non-interest expense				28,914			27,920
	Income before income tax				64,463			42,810
Provision for income tax					13,008			8,032
	Net income				51,455			34,778
	Dividends on preferred stock				-			-
	Net income available to common stockholders			$	51,455		$	34,778
Basic earnings per common share				$	0.95		$	0.65
Diluted earnings per common share				$	0.95		$	0.64

LOANS BY TYPE (UNAUDITED)
(In thousands)
			1st Quarter 2021			4th Quarter 2020			3rd Quarter 2020			2nd Quarter 2020			1st Quarter 2020
Commercial, financial and agricultural			$	3,323,093		$	3,295,900		$	3,466,189		$	3,498,627		$	2,771,307
Real estate - construction				666,592			593,614			530,919			544,586			548,578
Real estate - mortgage:
	Owner-occupied commercial			1,698,695			1,693,428			1,725,222			1,634,495			1,678,532
	1-4 family mortgage			685,840			711,692			671,841			665,883			675,870
	Other mortgage			2,068,560			2,106,184			2,056,549			1,911,384			1,834,137
Subtotal: Real estate - mortgage				4,453,095			4,511,304			4,453,612			4,211,762			4,188,539
Consumer				62,200			64,870			57,834			60,400			60,412
Total loans			$	8,504,980		$	8,465,688		$	8,508,554		$	8,315,375		$	7,568,836

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)
(Dollars in thousands)
					1st Quarter 2021					4th Quarter 2020					3rd Quarter 2020					2nd Quarter 2020					1st Quarter 2020
Allowance for credit losses:
Beginning balance					$	87,942				$	92,440				$	91,507				$	85,414				$	76,584
	Impact of Adoption of ASC 326					-					(2,000	)				-					-					-
Loans charged off:
	Commercial financial and agricultural					477					8,792					11,146					1,358					2,640
	Real estate - construction					-					202					-					376					454
	Real estate - mortgage					12					-					200					2,520					1,678
	Consumer					87					38					44					62					58
		Total charge offs				576					9,032					11,390					4,316					4,830
Recoveries:
	Commercial financial and agricultural					26					94					12					84					62
	Real estate - construction					50					30					-					1					1
	Real estate - mortgage					2					114					12					13					1
	Consumer					11					13					15					28					12
		Total recoveries				89					251					39					126					76
	Net charge-offs					487					8,781					11,351					4,190					4,754
	Provision for credit losses					7,451					6,283					12,284					10,283					13,584
	Ending balance				$	94,906				$	87,942				$	92,440				$	91,507				$	85,414
	Allowance for credit losses to total loans					1.12	%				1.04	%				-					-					-
	Allowance for credit losses to total average
		loans				1.11	%				1.04	%				-					-					-
	Allowance for loan losses to total loans					-					-					1.09	%				1.10	%				1.13	%
	Allowance for loan losses to total average
		loans				-					-					1.11	%				1.10	%				1.16	%
	Net charge-offs to total average loans					0.02	%				0.41	%				0.54	%				0.20	%				0.26	%
	Provision for credit losses to total average
		loans				0.35	%				0.30	%				-					-					-
	Provision for loan losses to total average
		loans				-					-					0.58	%				0.50	%				0.74	%
	Nonperforming assets:
		Nonaccrual loans			$	13,888				$	13,973				$	21,675				$	16,881				$	28,914
		Loans 90+ days past due and accruing				4,804					4,981					4,898					5,133					4,954
		Other real estate owned and
		repossessed assets				2,067					6,497					6,976					6,537					7,448
	Total				$	20,759				$	25,451				$	33,549				$	28,551				$	41,316
	Nonperforming loans to total loans					0.22	%				0.22	%				0.31	%				0.26	%				0.45	%
	Nonperforming assets to total assets					0.16	%				0.21	%				0.29	%				0.26	%				0.44	%
	Nonperforming assets to earning assets					0.17	%				0.22	%				0.30	%				0.26	%				0.45	%
	Allowance for credit losses to nonaccrual loans					683.37	%				629.37	%				-					-					-
	Allowance for loan losses to nonaccrual loans					-					-					426.48	%				542.07	%				295.41	%
	Restructured accruing loans				$	794				$	818				$	1,800				$	975				$	975
	Restructured accruing loans to total loans					0.01	%				0.01	%				0.02	%				0.01	%				0.01	%
	TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)
	(In thousands)
					1st Quarter 2021					4th Quarter 2020					3rd Quarter 2020					2nd Quarter 2020					1st Quarter 2020
	Beginning balance:				$	1,433				$	2,738				$	1,568				$	2,367				$	3,330
		Additions				2,146					-					1,182					-					350
		Net (paydowns) / advances				(37		)			(619		)			(12		)			(12		)			(232		)
		Charge-offs				-					(535		)			-					(412		)			(1,081		)
		Transfer to OREO				-					(151		)			-					(375		)			-
	Ending balance				$	3,542				$	1,433				$	2,738				$	1,568				$	2,367

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
				1st Quarter 2021			4th Quarter 2020			3rd Quarter 2020			2nd Quarter 2020			1st Quarter 2020
Interest income:
	Interest and fees on loans			$	93,803		$	94,332		$	89,564		$	89,383		$	89,385
	Taxable securities				5,807			6,018			5,858			5,092			5,154
	Nontaxable securities				107			129			166			211			233
	Federal funds sold				3			5			16			34			277
	Other interest and dividends				676			581			506			360			1,718
	Total interest income				100,396			101,065			96,110			95,080			96,767
Interest expense:
	Deposits				6,881			7,853			9,876			10,756			16,745
	Borrowed funds				1,150			1,131			1,152			1,090			2,382
	Total interest expense				8,031			8,984			11,028			11,846			19,127
	Net interest income				92,365			92,081			85,082			83,234			77,640
Provision for credit losses					7,451			6,283			12,284			10,283			13,584
	Net interest income after provision for credit losses				84,914			85,798			72,798			72,951			64,056
Non-interest income:
	Service charges on deposit accounts				1,908			1,971			1,818			1,823			1,916
	Mortgage banking				2,747			3,050			2,519			2,107			1,071
	Credit card income				1,192			913			1,840			1,398			1,765
	Increase in cash surrender value life insurance				1,658			1,660			1,733			1,464			1,453
	Other operating income				958			643			262			241			469
	Total non-interest income				8,463			8,237			8,172			7,033			6,674
Non-interest expense:
	Salaries and employee benefits				15,543			14,970			14,994			15,792			15,658
	Equipment and occupancy expense				2,654			2,680			2,556			2,434			2,400
	Third party processing and other services				3,416			3,418			3,281			3,622			3,457
	Professional services				923			1,248			955			1,091			948
	FDIC and other regulatory assessments				1,582			1,366			1,061			595			1,332
	Other real estate owned expense				157			140			119			1,303			601
	Other operating expense				4,639			4,380			3,607			3,979			3,524
	Total non-interest expense				28,914			28,202			26,573			28,816			27,920
	Income before income tax				64,463			65,833			54,397			51,168			42,810
Provision for income tax					13,008			14,852			11,035			10,720			8,032
	Net income				51,455			50,981			43,362			40,448			34,778
	Dividends on preferred stock				-			32			-			31			-
	Net income available to common stockholders			$	51,455		$	50,949		$	43,362		$	40,417		$	34,778
Basic earnings per common share				$	0.95		$	0.94		$	0.80		$	0.75		$	0.65
Diluted earnings per common share				$	0.95		$	0.94		$	0.80		$	0.75		$	0.64

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
							1st Quarter 2021						4th Quarter 2020						3rd Quarter 2020						2nd Quarter 2020						1st Quarter 2020
							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				$	8,484,914		4.47	%		$	8,435,237		4.43	%		$	8,335,087		4.26	%		$	8,301,775		4.31	%		$	7,328,594		4.89	%
			Tax-exempt (2)					27,592		4.17				29,393		4.16				30,068		4.14				31,929		4.12				32,555		4.04
				Total loans, net of
					unearned income			8,512,506		4.47				8,464,630		4.43				8,365,155		4.26				8,333,704		4.31				7,361,149		4.88
		Mortgage loans held for sale						13,601		1.94				19,459		1.37				20,053		1.41				13,278		2.09				4,282		2.16
		Debt securities:
			Taxable					878,118		2.65				862,333		2.79				820,526		2.86				761,575		2.67				750,413		2.75
			Tax-exempt (2)					21,084		2.43				25,542		2.52				31,880		2.51				38,201		2.62				44,029		2.33
				Total securities (3)				899,202		2.64				887,875		2.78				852,406		2.84				799,776		2.67				794,442		2.72
		Federal funds sold						11,935		0.10				16,306		0.12				41,884		0.15				83,274		0.16				105,423		1.06
		Interest-bearing balances with banks						2,262,233		0.12				1,837,249		0.13				1,500,563		0.13				849,549		0.17				469,199		1.47
		Total interest-earning assets					$	11,699,477		3.48	%		$	11,225,519		3.58	%		$	10,780,061		3.55	%		$	10,079,581		3.80	%		$	8,734,495		4.46	%
Non-interest-earning assets:
		Cash and due from banks						71,166						91,258						75,065						76,212						66,140
		Net premises and equipment						57,198						56,315						56,799						57,446						58,066
		Allowance for credit losses, accrued
			interest and other assets					320,407						308,746						281,196						248,702						241,479
				Total assets			$	12,148,248					$	11,681,838					$	11,193,121					$	10,461,941					$	9,100,180
Interest-bearing liabilities:
		Interest-bearing deposits:
		Checking					$	1,294,614		0.19	%		$	1,197,908		0.23	%		$	1,077,595		0.31	%		$	992,848		0.35	%		$	956,803		0.57	%
		Savings						93,375		0.18				86,259		0.18				82,671		0.36				72,139		0.42				67,380		0.50
		Money market						5,057,828		0.27				4,933,285		0.31				4,739,566		0.44				4,285,907		0.52				4,061,286		1.10
		Time deposits						808,561		1.44				810,675		1.59				841,378		1.78				877,448		1.95				805,924		2.09
			Total interest-bearing deposits					7,254,378		0.38				7,028,127		0.44				6,741,210		0.58				6,228,342		0.69				5,891,393		1.14
		Federal funds purchased						849,772		0.22				752,765		0.22				682,971		0.22				572,990		0.22				492,638		1.31
		Other borrowings						64,689		4.33				64,701		4.41				64,717		4.78				64,711		4.85				64,707		4.85
		Total interest-bearing liabilities					$	8,168,839		0.40	%		$	7,845,593		0.46	%		$	7,488,898		0.59	%		$	6,866,043		0.69	%		$	6,448,738		1.19	%
Non-interest-bearing liabilities:
		Non-interest-bearing
			demand deposits					2,923,041						2,812,254						2,728,513						2,646,030						1,749,671
		Other liabilities						39,442						48,642						39,537						69,061						39,801
		Stockholders' equity						996,741						956,847						917,626						862,500						853,800
		Accumulated other comprehensive
			income					20,185						18,502						18,547						18,307						8,170
				Total liabilities and
					stockholders' equity		$	12,148,248					$	11,681,838					$	11,193,121					$	10,461,941					$	9,100,180
Net interest spread										3.08	%					3.12	%					2.96	%					3.11	%					3.27	%
Net interest margin										3.20	%					3.27	%					3.14	%					3.32	%					3.58	%
(1	)	Average loans include loans on which the accrual of interest has been discontinued.
(2	)	Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%.
(3	)	Unrealized losses on available-for-sale debt securities are excluded from the yield calculation.