GlobeNewswire Inc | Apr 19, 2021 04:00PM EDT

April 19, 2021

BIRMINGHAM, Ala., April 19, 2021 (GLOBE NEWSWIRE) -- 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) % % Change Change From From Period Period Ending Ending Period Ending Period Ending December Period Ending March March 31, 2021 December 31, 31, 2020 March 31, 2020 31, 2020 to Period 2020 to Ending Period March 31, Ending 2021 March 31, 2021QUARTERLY OPERATING RESULTSNet Income $ 51,455 $ 50,981 1 % $ 34,778 48 % Net Income Availableto Common $ 51,455 $ 50,949 1 % $ 34,778 48 % StockholdersDiluted Earnings Per $ 0.95 $ 0.94 1 % $ 0.64 48 % ShareReturn on Average 1.72 % 1.74 % 1.54 % AssetsReturn on AverageCommon Stockholders' 19.83 % 20.78 % 16.23 % EquityAverage Diluted 54,381,991 54,273,944 54,167,414 Shares Outstanding 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 3,044,611 2,788,772 9 % 1,925,626 58 % Demand DepositsTotal 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 Banks 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, At December 31, At September 30, At June 30, 2020 At March 31, 2021 2020 2020 2020Book value per $ 19.03 $ 18.41 $ 17.61 $ 16.98 $ 16.38 share - GAAPTotal commonstockholders' 1,030,485 992,852 949,589 914,588 881,885 equity - GAAP Adjustments: Adjusted for goodwill and core deposit 13,841 13,908 13,976 14,043 14,111 intangible assetTangible commonstockholders' $ 1,016,644 $ 978,944 $ 935,613 $ 900,545 $ 867,775 equity -non-GAAPTangible bookvalue per share $ 18.78 $ 18.15 $ 17.35 $ 16.72 $ 16.12 - non-GAAP Stockholders'equity to total 8.15 % 8.32 % 8.33 % 8.31 % 9.42 % assets - GAAPTotal assets - $ 12,647,374 $ 11,927,955 $ 11,394,874 $ 11,012,195 $ 9,364,882 GAAP Adjustments: Adjusted for goodwill and core deposit 13,841 13,908 13,976 14,043 14,111 intangible assetTotal tangibleassets - $ 12,633,533 $ 11,914,047 $ 11,380,898 $ 10,998,152 $ 9,350,771 non-GAAPTangible commonequity to total 8.05 % 8.22 % 8.22 % 8.19 % 9.28 % tangible assets- non-GAAP

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 SECs 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 INCOMEInterest 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 7,451 6,283 12,284 10,283 13,584 lossesNet interest incomeafter provision for 84,914 85,798 72,798 72,951 64,056 credit lossesNon-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 64,463 65,833 54,397 51,168 42,810 taxProvision for income 13,008 14,852 11,035 10,720 8,032 taxNet income 51,455 50,981 43,362 40,448 34,778 Preferred stock - 32 - 31 - dividendsNet income availableto common $ 51,455 $ 50,949 $ 43,362 $ 40,417 $ 34,778 stockholdersEarnings per share - $ 0.95 $ 0.94 $ 0.80 $ 0.75 $ 0.65 basicEarnings per share - $ 0.95 $ 0.94 $ 0.80 $ 0.75 $ 0.64 dilutedAverage diluted 54,381,991 54,273,944 54,232,965 54,194,506 54,167,414 shares outstanding CONSOLIDATED BALANCE SHEET DATATotal 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 3,044,611 2,788,772 2,762,814 2,678,893 1,925,626 demand depositsTotal 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 $ 18.78 $ 18.15 $ 17.35 $ 16.72 $ 16.12 per share (1) SELECTED FINANCIAL RATIOS (Annualized)Net interest margin 3.20 % 3.27 % 3.14 % 3.32 % 3.58 % Return on average 1.72 % 1.74 % 1.54 % 1.55 % 1.54 % assetsReturn on averagecommon stockholders' 19.83 % 20.78 % 18.43 % 18.40 % 16.23 % equityEfficiency ratio 28.68 % 28.11 % 28.50 % 31.92 % 33.11 % Non-interest expenseto average earning 1.00 % 1.00 % 0.98 % 1.15 % 1.29 % assets CAPITAL RATIOS (2) Common equity tier 1capital to 10.73 % 10.50 % 11.24 % 11.26 % 10.68 % risk-weighted assetsTier 1 capital to 10.73 % 10.50 % 11.25 % 11.27 % 10.68 % risk-weighted assetsTotal capital to 12.48 % 12.20 % 13.10 % 13.27 % 12.54 % risk-weighted assetsTier 1 capital to 8.25 % 8.23 % 8.22 % 8.46 % 9.56 % average assetsTangible commonequity to total 8.05 % 8.22 % 8.22 % 8.19 % 9.28 % tangible assets (1) (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 % ChangeASSETS Cash and due from banks $ 70,107 $ 80,461 (13 )% Interest-bearing balancesdue from depository 2,738,046 297,943 819 % institutionsFederal funds sold 1,577 306,127 (99 )% Cash and cash 2,809,730 684,531 310 % equivalentsAvailable for sale debt 961,879 826,782 16 % securities, at fair valueHeld to maturity debtsecurities (fair value of 250 250 - $250 at March 31, 2021 and2020)Mortgage loans held for 15,834 6,747 135 % saleLoans 8,504,980 7,568,836 12 % Less allowance for credit (94,906 ) (85,414 ) 11 % losses Loans, net 8,410,074 7,483,422 12 % Premises and equipment, net 56,472 55,992 1 % Goodwill and otheridentifiable intangible 13,841 14,111 (2 )% assetsOther assets 379,294 293,047 29 % Total assets $ 12,647,374 $ 9,364,882 35 % LIABILITIES AND STOCKHOLDERS' EQUITYLiabilities: 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 224,302 221,901 1 % capital Retained earnings 788,875 641,980 23 % Accumulated other 16,754 17,448 (4 )% comprehensive income Total stockholders' equity attributable 1,029,985 881,383 17 % to ServisFirst Bancshares, Inc. Noncontrolling interest 500 502 - % Total stockholders' 1,030,485 881,885 17 % equity Total liabilities and $ 12,647,374 $ 9,364,882 35 % stockholders' equity

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) Three Months Ended March 31, 2021 2020Interest 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 96,767Interest expense: Deposits 6,881 16,745 Borrowed funds 1,150 2,382 Total interest expense 8,031 19,127 Net interest income 92,365 77,640Provision for credit losses 7,451 13,584 Net interest income after provision for 84,914 64,056 credit lossesNon-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 1,658 1,453 insurance Other operating income 958 469 Total non-interest income 8,463 6,674Non-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 42,810Provision 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 $ 34,778Basic earnings per common share $ 0.95 $ 0.65Diluted earnings per common share $ 0.95 $ 0.64

LOANS BY TYPE (UNAUDITED)(In thousands) 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 2021 2020 2020 2020 2020Commercial,financial and $ 3,323,093 $ 3,295,900 $ 3,466,189 $ 3,498,627 $ 2,771,307agriculturalReal estate - 666,592 593,614 530,919 544,586 548,578constructionReal estate - mortgage: Owner-occupied 1,698,695 1,693,428 1,725,222 1,634,495 1,678,532 commercial 1-4 family 685,840 711,692 671,841 665,883 675,870 mortgage Other mortgage 2,068,560 2,106,184 2,056,549 1,911,384 1,834,137Subtotal: Real 4,453,095 4,511,304 4,453,612 4,211,762 4,188,539estate - mortgageConsumer 62,200 64,870 57,834 60,400 60,412Total 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 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 2021 2020 2020 2020 2020Allowance for credit losses:Beginning balance $ 87,942 $ 92,440 $ 91,507 $ 85,414 $ 76,584 Impact of Adoption of - (2,000 ) - - - ASC 326Loans charged off: Commercial financial and 477 8,792 11,146 1,358 2,640 agricultural Real estate - - 202 - 376 454 construction Real estate - 12 - 200 2,520 1,678 mortgage Consumer 87 38 44 62 58 Total 576 9,032 11,390 4,316 4,830 charge offsRecoveries: Commercial financial and 26 94 12 84 62 agricultural Real estate - 50 30 - 1 1 construction Real estate - 2 114 12 13 1 mortgage Consumer 11 13 15 28 12 Total 89 251 39 126 76 recoveries Net 487 8,781 11,351 4,190 4,754 charge-offs Provision for 7,451 6,283 12,284 10,283 13,584 credit losses Ending balance $ 94,906 $ 87,942 $ 92,440 $ 91,507 $ 85,414 Allowance for credit losses 1.12 % 1.04 % - - - to total loans Allowance for credit losses to total average loans 1.11 % 1.04 % - - - Allowance for loan losses to - - 1.09 % 1.10 % 1.13 % total loans Allowance for loan losses to total average loans - - 1.11 % 1.10 % 1.16 % Net charge-offs to 0.02 % 0.41 % 0.54 % 0.20 % 0.26 % total average loans 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 $ 13,888 $ 13,973 $ 21,675 $ 16,881 $ 28,914 loans Loans 90+ days past 4,804 4,981 4,898 5,133 4,954 due and accruing Other real estate owned and repossessed 2,067 6,497 6,976 6,537 7,448 assets Total $ 20,759 $ 25,451 $ 33,549 $ 28,551 $ 41,316 Nonperforming loans to total 0.22 % 0.22 % 0.31 % 0.26 % 0.45 % loans Nonperforming assets to 0.16 % 0.21 % 0.29 % 0.26 % 0.44 % total assets Nonperforming assets to 0.17 % 0.22 % 0.30 % 0.26 % 0.45 % earning assets Allowance for credit losses to nonaccrual 683.37 % 629.37 % - - - loans Allowance for loan losses to - - 426.48 % 542.07 % 295.41 % nonaccrual loans Restructured $ 794 $ 818 $ 1,800 $ 975 $ 975 accruing loans Restructured accruing loans 0.01 % 0.01 % 0.02 % 0.01 % 0.01 % to total loans TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED) (In thousands) 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 2021 2020 2020 2020 2020 Beginning $ 1,433 $ 2,738 $ 1,568 $ 2,367 $ 3,330 balance: Additions 2,146 - 1,182 - 350 Net (paydowns) (37 ) (619 ) (12 ) (12 ) (232 ) / advances Charge-offs - (535 ) - (412 ) (1,081 ) Transfer to - (151 ) - (375 ) - OREO Ending balance $ 3,542 $ 1,433 $ 2,738 $ 1,568 $ 2,367

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

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 Yield / Average Yield / Average Yield / Average Yield / Average Yield / Balance Rate Balance Rate Balance Rate Balance Rate Balance RateAssets: 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 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 income Mortgage loans held 13,601 1.94 19,459 1.37 20,053 1.41 13,278 2.09 4,282 2.16 for sale 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 899,202 2.64 887,875 2.78 852,406 2.84 799,776 2.67 794,442 2.72 (3) 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 2,262,233 0.12 1,837,249 0.13 1,500,563 0.13 849,549 0.17 469,199 1.47 balances with banks Total interest-earning $ 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 % assetsNon-interest-earning assets: Cash and due from 71,166 91,258 75,065 76,212 66,140 banks Net premises and 57,198 56,315 56,799 57,446 58,066 equipment Allowance for credit losses, accrued interest and other 320,407 308,746 281,196 248,702 241,479 assets 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 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 deposits Federal funds 849,772 0.22 752,765 0.22 682,971 0.22 572,990 0.22 492,638 1.31 purchased 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 $ 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 % liabilitiesNon-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' $ 12,148,248 $ 11,681,838 $ 11,193,121 $ 10,461,941 $ 9,100,180 equityNet 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.