Exhibit 99.1

 

 

SERVISFIRST BANCSHARES, INC.

Announces Results For Fourth Quarter and Year Ended December 31, 2014

 

Birmingham, Ala. – (PR Newswire) – January 20, 2015 – ServisFirst Bancshares, Inc. (“ServisFirst”) (NASDAQ: SFBS), the holding company for ServisFirst Bank, today announced earnings and operating results for the quarter and the year ended December 31, 2014.

 

2014 and Fourth Quarter Highlights:

 

§	Net income for the quarter increased 27% year over year
§	Full year core diluted earnings per share increased 14% year over year
§	Full year diluted earnings per share increased 10% year over year, including the impact of a 14% increase in average diluted shares outstanding
§	Loans increased 18% year over year, all organic growth
§	Deposits increased 13% year over year, all organic growth
§	All regulatory approvals for the Metro Bank merger have been received and closing is scheduled for the end of January 2015
§	Added 13 new commercial and private bankers in 2014 for a total of 91 commercial and private bankers
§	Entry into Charleston, South Carolina with hire of a new regional CEO

 

Tom Broughton, President and CEO, said, “We are looking forward to the upcoming closing of the Metro Bank merger and are also pleased to welcome our new team of bankers at ServisFirst Bank of South Carolina, led by Tom Trouche. We will apply for a bank branch application for Charleston.” Bud Foshee, CFO, stated, “2014 was another year with strong earnings growth coupled with continued quality in our balance sheet.”

 

ServisFirst announces the hiring of Tom Trouche as Executive Vice President and Regional CEO of Charleston, South Carolina. Mr. Trouche will be establishing a banking presence for us in Charleston by hiring a staff of experienced bankers and locating office space. Mr. Trouche has more than 25 years of experience in the banking industry, with his most recent position being EVP for the coastal division of First Citizens Bank. He has served in many leadership positions and has extensive experience in new business development, relationship management and portfolio management to maximize overall growth and revenue. Mr. Trouche holds a BA in history from the College of Charleston and serves on the board of the American Red Cross and the Charleston Symphony Orchestra.

 

FINANCIAL SUMMARY
(in Thousands except share and per share amounts)
		Period Ending December 31, 2014				Period Ending September 30, 2014				% Change From Period Ending September 30, 2014 to Period Ending December 31, 2014				Period Ending December 31, 2013				% Change From Period Ending December 31, 2013 to Period Ending December 31, 2014
QUARTERLY OPERATING RESULTS
Net Income		$	15,032			$	14,002				7	%		$	11,868				27	%
Net Income Available to Common Stockholders		$	14,917			$	13,902				7	%		$	11,768				27	%
Diluted Earnings Per Share		$	0.58			$	0.54				7	%		$	0.53				9	%
Return on Average Assets			1.47	%			1.45	%							1.36	%
Return on Average Common Stockholders' Equity			16.39	%			15.89	%							18.86	%
Average Diluted Shares Outstanding			25,697,531				25,726,313								22,359,351
YEAR-TO-DATE OPERATING RESULTS
Net Income		$	52,377											$	41,617				26	%
Net Income Available to Common Stockholders		$	51,946											$	41,201				26	%
Diluted Earnings Per Share		$	2.09											$	1.90				10	%
Return on Average Assets			1.39	%											1.31	%
Return on Average Common Stockholders' Equity			16.23	%											18.30	%
Average Diluted Shares Outstanding			24,818,221												21,806,025
Core Net Income*		$	53,989											$	41,617				30	%
Core Net Income Available to Common Stockholders*		$	53,558											$	41,201				30	%
Core Diluted Earnings Per Share*		$	2.16											$	1.90				14	%
Core Return on Average Assets*			1.44	%											1.31	%
Core Return on Average Common Stockholders' Equity*			16.74	%											18.30	%
BALANCE SHEET
Total Assets		$	4,098,679			$	3,952,799				4	%		$	3,520,699				16	%
Loans			3,359,858				3,159,772				6	%			2,858,868				18	%
Non-interest-bearing Demand Deposits			810,460				794,553				2	%			650,456				25	%
Total Deposits			3,398,160				3,352,766				1	%			3,019,642				13	%
Stockholders' Equity			407,213				393,136				4	%			297,192				37	%

 

* Core measures exclude non-routine expenses in the first and second quarter of 2014 resulting from a correction of our accounting for vested stock options previously granted to members of our advisory boards in our markets.  For a reconciliation of these non-GAAP measures to the most comparable GAAP measure, see "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below.

 

DETAILED FINANCIALS

 

ServisFirst Bancshares, Inc. reported net income of $15.0 million and net income available to common stockholders of $14.9 million for the quarter ended December 31, 2014, compared to net income of $11.9 million and net income available to common stockholders of $11.8 million for the same quarter in 2013. Basic and diluted earnings per common share were $0.60 and $0.58, respectively, for the fourth quarter of 2014, compared to $0.55 and $0.53, respectively, for the fourth quarter of 2013.

 

Return on average assets was 1.47% and return on average common stockholders’ equity was 16.39% for the fourth quarter of 2014, compared to 1.36% and 18.86%, respectively, for the fourth quarter of 2013.

 

Net interest income was $34.5 million for the fourth quarter of 2014, compared to $33.3 million for the third quarter of 2014 and $30.1 million for the fourth quarter of 2013. The net interest margin in the fourth quarter of 2014 was 3.56%, a 9 basis point decrease from the third quarter of 2014 and 11 basis point decrease from the fourth quarter of 2013. The increase in net interest income on a linked quarter basis is attributable to a $132.3 million increase in average loans outstanding, a $71.9 million increase in average non-interest-bearing deposits and a $14.1 million increase in average stockholders’ equity, all resulting in a positive mix change in our balance sheet. The lower net interest margin is driven in part by increasing balances in federal funds at other banks and higher balances at the Federal Reserve, which earn a nominal interest rate.

 

Average loans for the fourth quarter of 2014 were $3.23 billion, an increase of $132.3 million, or 4%, over average loans of $3.09 billion for the third quarter of 2014, and an increase of $465.1 million, or 17%, over average loans of $2.76 billion for the fourth quarter of 2013.

 

Average total deposits for the fourth quarter of 2014 were $3.41 billion, an increase of $193.2 million, or 6%, over average total deposits of $3.21 billion for the third quarter of 2014, and an increase of $437.1 million, or 15%, over average total deposits of $2.97 billion for the fourth quarter of 2013.

 

The Company’s asset quality remained strong in the fourth quarter of 2014. At December 31, 2014, non-performing assets to total assets were 0.41%, compared to 0.61% for the third quarter of 2014 and 0.64% compared to the fourth quarter of 2013. Net credit charge-offs to average loans were 0.19%, a 0.02% increase compared to 0.17% for the third quarter of 2014 and an increase of 0.10% compared to 0.09% for the fourth quarter of 2013. We recorded a $2.8 million provision for loan losses in the fourth quarter of 2014, compared to $2.7 million in the third quarter of 2014 and an increase of $0.4 million compared to $2.4 million in the fourth quarter of 2013. Growth in loans and improving credit quality has resulted in our loan loss reserve as a percent of loans remaining relatively stable, decreasing three basis points to 1.06% at December 31, 2014, as compared to 1.09% for September 30, 2014 and a decrease of one basis point as compared to 1.07% for December 31, 2013 . In management’s opinion, the reserve is adequate and was determined by consistent application of ServisFirst Bank’s methodology for calculating its reserve for loan losses.

 

 

Non-interest income increased $739,000 in the fourth quarter of 2014, or 31%, compared to the fourth quarter of 2013. Deposit service charges increased by $331,000, or 40%, resulting from an increase in the number of accounts and transactions. Increases in the cash surrender value of our life insurance contracts resulted from added investments in contracts during the third quarter of 2014.

 

Non-interest expense for the fourth quarter of 2014 increased $845,000, or 7%, to $13.1 million from $12.3 million in the fourth quarter of 2013. Salary and benefit expense for the fourth quarter of 2014 decreased $209,000, or 3%, to $6.3 million from $6.5 million in the fourth quarter of 2013, and decreased $1.6 million, or 25%, on a linked quarter basis. Other operating expense for the fourth quarter of 2014 increased $1.0 million, or 34%, to $3.9 million from $2.9 million in the fourth quarter of 2013. This was in part due to tax credit partnership related expenses of $631,000 for the fourth quarter of 2014 compared to $198,000 in the same quarter in 2013. We recognized tax credits of $666,000 during the fourth quarter of 2014 from these investments.

 

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

 

As discussed in more detail in the section titled “Detailed Financials,” we recorded a non-routine expense of $703,000 for the first quarter of 2014 resulting from the correction of our accounting for vested stock options previously granted to members of our advisory boards in our Dothan, Huntsville and Montgomery, Alabama markets, and we recorded a non-routine expense of $1.8 million for the second quarter of 2014 resulting from a correction of our accounting for vested stock options previously granted to members of our advisory boards in our Mobile, Alabama and Pensacola, Florida markets. This change in accounting treatment is a non-cash item and does not impact our operating activities or cash from operations. The non-GAAP financial measures included in this press release of our results for the fourth quarter and full year of 2014 are “core net income,” “core net income available to common stockholders,” “core diluted earnings per share,” “core return on average assets” and “core return on average common stockholders’ equity.” Each of these five core financial measures excludes the impact of the non-routine expense attributable to the correction of our accounting for vested stock options. None of the other periods included in this press release are affected by this correction.

 

“Core net income” is defined as net income, adjusted by the net effect of the non-routine expense.

 

“Core net income available to common stockholders” is defined as net income available to common stockholders, adjusted by the net effect of the non-routine expense.

 

“Core diluted earnings per share” is defined as net income available to common stockholders, adjusted by the net effect of the non-routine expense, divided by weighted average diluted shares outstanding.

 

“Core return on average assets” is defined as net income, adjusted by the net effect of the non-routine expense, divided by average total assets.

 

“Core return on average common stockholders’ equity” is defined as net income, adjusted by the net effect of the non-routine expense, divided by average common stockholders’ equity.

 

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 for the year ended December 31, 2014. Dollars are in thousands, except share and per share data.

 

(Dollars in Thousands)

 

 

		For the Year Ended December 31, 2014
Provision for income taxes - GAAP		$	21,601
Adjustments:
Adjustment for non-routine expense			865
Core provision for income taxes		$	22,466
Return on average assets - GAAP			1.39	%
Net income - GAAP		$	52,377
Adjustments:
Adjustment for non-routine expense			1,612
Core net income		$	53,989
Average assets		$	3,757,932
Core return on average assets			1.44	%
Return on average common stockholders' equity			16.23	%
Net income available to common stockholders - GAAP		$	51,946
Adjustments:
Adjustment for non-routine expense			1,612
Core net income available to common stockholders		$	53,558
Average common stockholders' equity		$	320,005
Core return on average common stockholders' equity			16.74	%
Earnings per share - diluted - GAAP		$	2.09
Weighted average shares outstanding, diluted			24,818,221
Core diluted earnings per share		$	2.16

 

 

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, Florida 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 http://servisfirstbancshares.investorroom.com/.

 

Webcast

 

As previously announced, ServisFirst will host a live audio webcast to discuss fourth quarter and year-end results beginning at 9:30 a.m. ET on January 21, 2015. The webcast can be accessed at www.servisfirstbancshares.com in the "Events and Webcasts" section. A replay of the call will be available until January 31, 2015.

 

Additional Information

 

This release contains, and the remarks by ServisFirst’s management on the live audio webcast may contain, forward-looking statements within the meaning of the securities laws giving ServisFirst’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “prospects” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are not guarantees of future performance and are subject to numerous assumptions, risks and uncertainties, many of which are outside of ServisFirst’s control and which may change over time and cause actual results to differ materially from those expressed or implied by the forward-looking statements. 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/A and to our other filings with the U.S. Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the date they are made, and ServisFirst assumes no duty to update forward-looking statements.

 

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 2014				3rd Quarter 2014				2nd Quarter 2014				1st Quarter 2014				4th Quarter 2013
CONSOLIDATED STATEMENT OF INCOME
Interest income		$	38,163			$	36,857			$	35,424			$	34,281			$	33,725
Interest expense			3,703				3,538				3,446				3,432				3,610
Net interest income			34,460				33,319				31,978				30,849				30,115
Provision for loan losses			2,759				2,748				2,438				2,314				2,356
Net interest income after provision for loan losses			31,701				30,571				29,540				28,535				27,759
Non-interest income			3,110				3,006				2,938				2,175				2,371
Non-interest expense			13,143				15,315				15,417				13,723				12,298
Income before income tax			21,668				18,262				17,061				16,987				17,832
Provision for income tax			6,636				4,260				5,476				5,229				5,964
Net income			15,032				14,002				11,585				11,758				11,868
Preferred stock dividends			115				100				116				100				116
Net income available to common stockholders		$	14,917			$	13,902			$	11,469			$	11,658			$	11,752
Earnings per share - basic		$	0.60			$	0.56			$	0.49			$	0.53			$	0.55
Earnings per share - diluted		$	0.58			$	0.54			$	0.46			$	0.51			$	0.53
Average diluted shares outstanding			25,697,531				25,726,313				24,823,590				22,985,670				22,359,351
CONSOLIDATED BALANCE SHEET DATA
Total assets		$	4,098,679			$	3,952,799			$	3,762,684			$	3,572,914			$	3,520,699
Loans			3,359,858				3,159,772				3,053,989				2,937,797				2,858,868
Debt securities			328,168				332,351				325,432				309,475				298,494
Non-interest-bearing demand deposits			810,460				794,553				729,163				662,834				650,456
Total deposits			3,398,160				3,352,766				3,157,642				3,031,041				3,019,642
Borrowings			19,973				19,965				19,957				19,949				19,940
Stockholders' equity		$	407,213			$	393,136			$	380,074			$	312,283			$	297,192
Shares outstanding			24,801,518				24,791,436				24,749,436				22,574,436				22,050,036
Book value per share		$	14.81			$	14.25			$	13.74			$	12.06			$	11.67
Tangible book value per share (1)		$	14.81			$	14.25			$	13.74			$	12.06			$	11.67
SELECTED FINANCIAL RATIOS
Net interest margin			3.56	%			3.65	%			3.74	%			3.80	%			3.67	%
Return on average assets			1.47	%			1.45	%			1.28	%			1.36	%			1.36	%
Return on average common stockholders' equity			16.39	%			15.89	%			15.03	%			17.83	%			18.86	%
Efficiency ratio			34.98	%			42.16	%			44.15	%			41.55	%			37.86	%
Non-interest expense to average earning assets			1.34	%			1.66	%			1.78	%			1.66	%			1.48	%
Tangible common equity to total tangible assets (1)			8.96	%			8.93	%			9.04	%			7.62	%			7.31	%
CAPITAL RATIOS
Total Capital to Risk-Weighted Assets:			13.38	%			13.70	%			13.74	%			11.94	%			11.73	%
Tier 1 Capital to Risk-Weighted Assets:			11.75	%			12.02	%			12.04	%			10.22	%			10.00	%
Tier 1 Capital to Average Assets:			9.91	%			10.18	%			10.32	%			8.81	%			8.48	%

 

(1) Non-GAAP financial measures.  "Tangible book value per share" and "tangible common equity to total tangible assets" are not measures of financial performance recognized by generally accepted accounting principles in the United States, or GAAP;   However, because the Company has no intangible assets, there is no reconciliation of these non-GAAP financial measures. 

 

 

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
		December 31, 2014				December 31, 2013				% Change
ASSETS
Cash and cash equivalents			297,464				258,415				15	%
Available for sale debt securities, at fair value			298,813				266,220				12	%
Held to maturity debt securities (fair value of $31,697 and $31,315 at
December 31, 2014 and 2013, respectively)			29,355				32,274				(9	)%
Restricted equity securities			3,418				3,738				(9	)%
Mortgage loans held for sale			5,984				8,134				(26	)%
Loans			3,359,858				2,858,868				18	%
Less allowance for loan losses			(35,629	)			(30,663	)			16	%
Loans, net			3,324,229				2,828,205				18	%
Premises and equipment, net			7,815				8,351				(6	)%
Other assets			131,601				115,362				14	%
Total assets		$	4,098,679			$	3,520,699				16	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing		$	810,460			$	650,456				25	%
Interest-bearing			2,587,700				2,369,186				9	%
Total deposits			3,398,160				3,019,642				13	%
Federal funds purchased			264,315				174,380				52	%
Other borrowings			19,973				19,940				0	%
Other liabilities			9,018				9,545				(6	)%
Total liabilities			3,691,466				3,223,507				15	%
Stockholders' equity:
Preferred stock, Series A Senior Non-Cumulative Perpetual, par value $0.001
(liquidation preference $1,000), net of discount; 40,000 shares authorized,
40,000 shares issued and outstanding at December 31, 2014 and 2013			39,958				39,958				-	%
Common stock, par value $0.0003 per share; 50,000,000 shares authorized;
24,801,518 shares issued and outstanding at December 31, 2014 and
22,050,036 shares issued and outstanding at December 31, 2013			25				22				14	%
Additional paid-in capital			185,397				123,325				50	%
Retained earnings			177,091				130,011				36	%
Accumulated other comprehensive income			4,490				3,891				15	%
Noncontrolling interest			252				-				100	%
Total stockholders' equity			407,213				297,192				37	%
Total liabilities and stockholders' equity		$	4,098,679			$	3,520,699				16	%

 

 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

 

		Three Months Ended December 31,								Year Ended December 31,
		2014				2013				2014				2013
Interest income:
Interest and fees on loans		$	35,902			$	31,618			$	136,066			$	118,285
Taxable securities			1,143				1,037				4,497				3,888
Nontaxable securities			871				870				3,489				3,407
Federal funds sold			41				51				159				128
Other interest and dividends			206				149				514				373
Total interest income			38,163				33,725				144,725				126,081
Interest expense:
Deposits			3,256				3,202				12,420				11,830
Borrowed funds			447				408				1,699				1,789
Total interest expense			3,703				3,610				14,119				13,619
Net interest income			34,460				30,115				130,606				112,462
Provision for loan losses			2,759				2,356				10,259				13,008
Net interest income after provision for loan losses			31,701				27,759				120,347				99,454
Non-interest income:
Service charges on deposit accounts			1,168				837				4,265				3,228
Mortgage banking			507				359				2,047				2,513
Securities gains			-				-				3				131
Increase in cash surrender value life insurance			649				548				2,280				1,994
Other operating income			786				627				2,634				2,144
Total non-interest income			3,110				2,371				11,229				10,010
Non-interest expense:
Salaries and employee benefits			6,332				6,541				31,017				26,324
Equipment and occupancy expense			1,335				1,350				5,547				5,202
Professional services			558				468				2,435				1,809
FDIC and other regulatory assessments			516				536				2,094				1,799
Other real estate owned expense			528				475				1,533				1,426
Other operating expense			3,874				2,928				14,972				10,929
Total non-interest expense			13,143				12,298				57,598				47,489
Income before income tax			21,668				17,832				73,978				61,975
Provision for income tax			6,636				5,964				21,601				20,358
Net income			15,032				11,868				52,377				41,617
Dividends on preferred stock			115				116				431				416
Net income available to common stockholders		$	14,917			$	11,752			$	51,946			$	41,201
Basic earnings per common share		$	0.60			$	0.55			$	2.18			$	2.00
Diluted earnings per common share		$	0.58			$	0.53			$	2.09			$	1.90

 

 

LOANS BY TYPE
(UNAUDITED)
(In thousands)
		4th Quarter 2014				3rd Quarter 2014				2nd Quarter 2014				1st Quarter 2014				4th Quarter 2013
Commercial, financial and agricultural		$	1,495,092			$	1,382,607			$	1,362,757			$	1,306,058			$	1,278,649
Real estate - construction			208,769				194,506				178,033				157,127				151,868
Real estate - mortgage:
Owner-occupied commercial			793,917				773,432				708,294				711,067				710,372
1-4 family mortgage			333,455				314,778				296,220				285,368				278,621
Other mortgage			471,363				443,245				457,845				428,391				391,396
Subtotal: Real estate - mortgage			1,598,735				1,531,455				1,462,359				1,424,826				1,380,389
Consumer			57,262				51,204				50,840				49,786				47,962
Total loans		$	3,359,858			$	3,159,772			$	3,053,989			$	2,937,797			$	2,858,868

 

 

SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
		4th Quarter 2014				3rd Quarter 2014				2nd Quarter 2014				1st Quarter 2014				4th Quarter 2013
Reserve for loan losses:
Beginning balance		$	34,442			$	32,984			$	31,728			$	30,663			$	28,927
Loans charged off:
Commercial financial and agricultural			416				531				142				1,222				95
Real estate - construction			309				610				325				23				557
Real estate - mortgage:			922				149				890				4				25
Consumer			21				131				18				58				38
Total charge off			1,668				1,421				1,375				1,307				715
Recoveries:
Commercial financial and agricultural			2				-				1				45				16
Real estate - construction			37				97				180				8				70
Real estate - mortgage:			46				14				10				4				9
Consumer			11				20				2				1				-
Total recoveries			96				131				193				58				95
Net charge-off			1,572				1,290				1,182				1,249				620
Provision for loan losses			2,759				2,748				2,438				2,314				2,356
Ending balance		$	35,629			$	34,442			$	32,984			$	31,728			$	30,663
Reserve for loan losses to total loans			1.06	%			1.09	%			1.08	%			1.08	%			1.07	%
Reserve for loan losses to total average
loans			1.10	%			1.11	%			1.10	%			1.09	%			1.11	%
Net charge-offs to total average loans			0.19	%			0.17	%			0.16	%			0.17	%			0.09	%
Provision for loan losses to total average
loans			0.34	%			0.35	%			0.33	%			0.32	%			0.34	%
Nonperforming assets:
Nonaccrual loans		$	9,125			$	16,078			$	13,193			$	9,084			$	9,621
Loans 90+ days past due and accruing			925				1,190				-				110				115
Other real estate owned and
repossessed assets			6,840				6,940				6,739				9,752				12,861
Total		$	16,890			$	24,208			$	19,932			$	18,946			$	22,597
Nonperforming loans to total loans			0.30	%			0.55	%			0.43	%			0.31	%			0.35	%
Nonperforming assets to total assets			0.41	%			0.61	%			0.53	%			0.53	%			0.64	%
Nonperforming assets to earning assets			0.42	%			0.62	%			0.54	%			0.55	%			0.66	%
Reserve for loan losses to nonaccrual loans			390.45	%			214.22	%			250.01	%			349.27	%			318.71	%
Restructured accruing loans		$	8,295			$	2,067			$	7,030			$	9,411			$	9,689
Restructured accruing loans to total loans			0.25	%			0.07	%			0.23	%			0.32	%			0.35	%

 

TROUBLED DEBT RESTRUCTURINGS (TDRs)
(In thousands)
		4th Quarter 2014				3rd Quarter 2014				2nd Quarter 2014				1st Quarter 2014				4th Quarter 2013
Beginning balance:		$	7,932			$	9,217			$	13,478			$	14,168			$	8,433
Additions			6,250				-				1,409				-				7,996
Net (paydowns) / advances			(4,492	)			(802	)			(5,080	)			235				(2,261	)
Charge-offs			(698	)			(483	)			(590	)			(925	)			-
		$	8,992			$	7,932			$	9,217			$	13,478			$	14,168

 

 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

 

		4th Quarter 2014				3rd Quarter 2014				2nd Quarter 2014				1st Quarter 2014				4th Quarter 2013
Interest income:
Interest and fees on loans		$	35,902			$	34,662			$	33,250			$	32,252			$	31,618
Taxable securities			1,143				1,131				1,126				1,097				1,052
Nontaxable securities			871				877				870				871				870
Federal funds sold			41				38				43				42				51
Other interest and dividends			206				149				135				19				134
Total interest income			38,163				36,857				35,424				34,281				33,725
Deposits			3,256				3,123				3,027				3,014				3,202
Borrowed funds			447				415				419				418				408
Total interest expense			3,703				3,538				3,446				3,432				3,610
Net interest income			34,460				33,319				31,978				30,849				30,115
Provision for loan losses			2,759				2,748				2,438				2,314				2,356
Net interest income after provision for loan losses			31,701				30,571				29,540				28,535				27,759
Non-interest income:
Service charges on deposit accounts			1,168				1,172				1,057				868				837
Mortgage banking			507				582				674				284				344
Securities gains			-				3				-				-				-
Increase in cash surrender value life insurance			649				549				546				536				548
Other operating income			786				700				661				487				642
Total non-interest income			3,110				3,006				2,938				2,175				2,371
Salaries and employee benefits			6,332				7,890				9,098				7,697				6,541
Equipment and occupancy expense			1,335				1,437				1,409				1,366				1,350
Professional services			558				829				532				516				480
FDIC and other regulatory assessments			516				533				528				517				536
Other real estate owned expense			528				220				298				487				475
Other operating expense			3,874				4,406				3,552				3,140				2,916
Total non-interest expense			13,142				15,315				15,417				13,723				12,298
Income before income tax			21,668				18,262				17,061				16,987				17,832
Provision for income tax			6,636				4,260				5,476				5,229				5,964
Net income			15,032				14,002				11,585				11,758				11,868
Dividends on preferred stock			115				100				116				100				116
Net income available to common stockholders		$	14,917			$	13,902			$	11,469			$	11,658			$	11,752
Basic earnings per common share		$	0.60			$	0.56			$	0.49			$	0.53			$	0.55
Diluted earnings per common share		$	0.58			$	0.54			$	0.46			$	0.51			$	0.53

 

 

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS - UNAUDITED
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)

 

		4th Quarter 2014								3rd Quarter 2014								2nd Quarter 2014								1st Quarter 2014								4th Quarter 2013
		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		$	3,215,400				4.41	%		$	3,081,435				4.44	%		$	2,978,631				4.46	%		$	2,892,433				4.52	%		$	2,754,955				4.54	%
Tax-exempt (2)			10,367				4.98				12,043				4.95				15,803				3.24				14,550				3.30				5,669				4.37
Mortgage loans held for sale			3,410				6.05				6,861				3.64				8,048				3.24				4,496				2.80				5,956				3.66
Debt securities:
Taxable			195,533				2.32				195,220				2.29				188,148				2.40				174,842				2.54				166,027				2.49
Tax-exempt(2)			127,909				4.19				126,512				4.05				123,897				4.11				122,686				4.13				120,161				4.11
Total securities (3)			323,442				3.06				321,732				2.98				312,045				3.08				297,528				3.20				286,188				3.17
Federal funds sold			68,640				0.24				57,625				0.27				41,388				0.37				54,895				0.31				68,710				0.25
Restricted equity securities			3,418				3.95				3,418				3.83				3,446				7.57				3,738				-				3,738				2.55
Interest-bearing balances with banks			273,496				0.26				185,716				0.25				121,532				0.25				82,279				0.09				173,521				0.29
Total interest-earning assets			3,898,173				3.94	%			3,668,830				4.03	%			3,480,893				4.13	%			3,349,919				4.21	%			3,298,737				4.11	%
Non-interest-earning assets:
Cash and due from banks			58,973								58,340								57,387								56,082								53,062
Net premises and equipment			8,315								8,310								8,377								8,724								8,944
Allowance for loan losses,
accrued interest and
other assets			101,831								86,901								88,849								85,532								98,586
Total assets		$	4,067,292							$	3,822,381							$	3,635,506							$	3,500,257							$	3,459,329
Interest-bearing liabilities:
Interest-bearing deposits:
Checking		$	511,451				0.26	%		$	484,291				0.26	%		$	482,115				0.27	%		$	478,678				0.27	%		$	472,751				0.27	%
Savings			28,806				0.29				26,584				0.28				25,406				0.28				25,081				0.27				21,755				0.27
Money market			1,645,533				0.45				1,555,091				0.44				1,472,346				0.44				1,416,645				0.45				1,420,771				0.47
Time deposits			395,598				1.03				394,158				1.05				402,613				1.08				412,622				1.10				412,254				1.13
Federal funds purchased			231,135				0.28				187,629				0.28				195,809				0.28				195,967				0.28				176,967				0.28
Other borrowings			19,969				5.62				19,961				5.62				19,953				5.69				19,945				5.75				19,936				5.63
Total interest-bearing liabilities			2,832,492				0.52	%			2,667,714				0.53	%			2,598,242				0.53	%			2,548,938				0.55	%			2,524,434				0.57	%
Non-interest-bearing liabilities:
Non-interest-bearing
demand			823,738								751,831								675,098								641,450								640,476
Other liabilities			9,969								15,838								16,158								4,724								7,226
Stockholders' equity			395,981								382,025								341,120								300,512								282,549
Unrealized gains on securities and
derivatives			5,112								4,973								4,888								4,634								4,644
Total liabilities and
stockholders' equity		$	4,067,292							$	3,822,381							$	3,635,506							$	3,500,257							$	3,459,329
Net interest spread							3.42	%							3.51	%							3.60	%							3.67	%							3.54	%
Net interest margin							3.56	%							3.65	%							3.74	%							3.80	%							3.67	%

 

(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 35%.
(3)	Unrealized gains on available-for-sale debt securities are excluded from the yield calculation.