Exhibit 99.1

SERVISFIRST BANCSHARES, INC.

Announces Results For Second Quarter of 2014

Birmingham, Ala. – (PR Newswire) – July 22, 2014 – ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the quarter and six months ended June 30, 2014.

SECOND Quarter 2014 Highlights:

Net income for the second quarter increased 20% year over year

Second quarter annualized loan and deposit growth of 16% and 17%, respectively, on a linked quarter basis

Core diluted earnings per share of $0.51 for the second quarter of 2014, a 16% increase year over year*

Diluted earnings per share of $0.46 for the second quarter, a 5% increase year over year

Completed initial public offering in the second quarter with net proceeds of $52.1 million

30% growth in non-interest-bearing demand deposits year over year

Tom Broughton, President and CEO, said, “We are pleased to report a great quarter following our initial public offering in May.” Bud Foshee, CFO, stated, “Strong loan and deposit growth combined with excellent credit quality continue to drive our strong earnings performance.”

FINANCIAL SUMMARY

(in Thousands except share and per share amounts)

On June 16, 2014, the Company declared a three-for-one split of its common stock in the form of a stock dividend. All share and per share information in this release has been adjusted to give effect to this stock split.

	Period Ending June 30, 2014			Period Ending March 31, 2014			% Change From Period Ending March 31, 2014 to Period Ending June 30, 2014			Period Ending June 30, 2013			% Change From Period Ending June 30, 2013 to Period Ending June 30, 2014
QUARTERLY OPERATING RESULTS
Net Income	$	11,585		$	11,758			(1	)%	$	9,686			20	%
Net Income Available to Common Stockholders	$	11,469		$	11,656			(2	)%	$	9,586			20	%
Diluted Earnings Per Share	$	0.46		$	0.51			(10	)%	$	0.44			5	%
Return on Average Assets		1.28	%		1.36	%					1.31	%
Return on Average Common Stockholders' Equity		15.03	%		17.83	%					17.28	%
Average Diluted Shares Outstanding		24,823,590			22,985,670						21,655,326

Core Net Income*	$	12,740		$	12,215			4	%	$	9,686			32	%
Core Net Income Available to Common Stockholders*	$	12,624		$	12,113			4	%	$	9,586			32	%
Core Diluted Earnings Per Share*	$	0.51		$	0.53			(4	)%	$	0.44			16	%
Core Return on Average Assets*		1.41	%		1.42	%					1.31	%
Core Return on Average Common Stockholders' Equity*		16.54	%		18.53	%					17.28	%

YEAR-TO-DATE OPERATING RESULTS
Net Income	$	23,343								$	18,937			23	%
Net Income Available to Common Stockholders	$	23,127								$	18,737			23	%
Diluted Earnings Per Share	$	0.97								$	0.88			10	%
Return on Average Assets		1.32	%								1.31	%
Return on Average Common Stockholders' Equity		15.61	%								17.96	%
Average Diluted Shares Outstanding		23,909,707									21,443,595

Core Net Income*	$	24,955								$	18,937			32	%
Core Net Income Available to Common Stockholders*	$	24,739								$	18,737			32	%
Core Diluted Earnings Per Share*	$	1.03								$	0.88			18	%
Core Return on Average Assets*		1.41	%								1.31	%
Core Return on Average Common Stockholders' Equity*		16.70	%								17.96	%

BALANCE SHEET
Total Assets	$	3,762,684		$	3,572,914			5	%	$	3,140,626			20	%
Loans		3,053,989			2,937,797			4	%		2,590,192			18	%
Non-interest-bearing Demand Deposits		729,163			662,834			10	%		562,196			30	%
Total Deposits		3,157,642			3,031,041			4	%		2,674,977			18	%
Stockholders' Equity		380,074			312,283			22	%		265,189			43	%

* 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 $11.6 million and net income available to common stockholders of $11.5 million for the quarter ended June 30, 2014, compared to net income of $9.7 million and net income available to common stockholders of $9.6 million for the same quarter in 2013. Basic and diluted earnings per common share were $0.49 and $0.46, respectively, for the second quarter of 2014, compared to $0.46 and $0.44, respectively, for the second quarter of 2013.

Return on average assets was 1.29% and return on average equity was 15.03% for the second quarter of 2014, compared to 1.29% and 17.28%, respectively, for the second quarter of 2013.

Net interest income was $32.0 million for the second quarter of 2014, compared to $30.8 million for the first quarter of 2014 and $27.5 million for the second quarter of 2013. The net interest margin in the second quarter of 2014 was 3.74%, a 6 basis point decrease from the first quarter of 2014 and 19 basis point decrease from the second quarter of 2013. The increase in net interest income on a linked quarter basis is attributable to a $87.5 million increase in average loans outstanding, a $33.6 million increase in non-interest-bearing deposits and a $40.9 million increase in average stockholders’ equity, all resulting in a positive mix change in our balance sheet.

Average loans for the second quarter of 2014 were $2.99 billion, an increase of $87.5 million, or 3%, over average loans of $2.91 billion for the first quarter of 2014, and an increase of $472.1 million, or 19%, over average loans of $2.52 billion for the second quarter of 2013.

Average total deposits for the second quarter of 2014 were $3.06 billion, an increase of $83.1 million, or 3%, over average total deposits of $2.97 billion for the first quarter of 2014, and an increase of $554.3 million, or 22%, over average total deposits of $2.50 billion for the second quarter of 2013.

Non-performing assets to total assets were unchanged for the second quarter of 2014 compared to the first quarter of 2014 at 0.53%. Net credit charge-offs decreased slightly in the second quarter of 2014 compared to the first quarter of 2014 and remain well below levels we experienced in the first two quarters of 2013. We recorded a $2.4 million provision for loan losses in the second quarter of 2014 compared to $2.3 million in the first quarter of 2014 and $3.3 million in the second quarter of 2013. Growth in loans and improving credit quality has resulted in a relatively stable loan loss reserve as a percent of loans ratio, remaining unchanged at 1.08% for June 30, 2014 and March 31, 2014 and increasing one basis point as compared to 1.07% at 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 $365,000 during the second quarter of 2014, or 14%, compared to the second quarter of 2013. Deposit service charges increased by $251,000, or 31%, resulting from higher balances and 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 2013.

Non-interest expense for the second quarter of 2014 increased $3.0 million, or 24%, to $15.4 million from $12.4 million in the second quarter of 2013, and increased $1.7 million, or 12%, on a linked quarter basis. Salary and benefit expense for the second quarter of 2014 increased $2.0 million, or 28%, to $9.1 million from $7.1 million in the second quarter of 2013, and increased $1.4 million, or 18%, on a linked quarter basis. Included in salary and benefit expense for the first and second quarters of 2014 are non-routine expenses of $703,000 and $1.8 million, respectively, resulting from a correction of our accounting for vested stock options previously granted to members of our advisory boards in our markets. This expense impacted our diluted earnings per share for the first and second quarters of 2014 by $0.02 and $0.05, respectively. We historically accounted for these options under the provisions of FASB ASC 718-10, Compensation – Stock Compensation, and now have determined to recognize as an expense the fair value of these vested options in accordance with the provisions of the FASB ASC Topic 505-50, Equity-Based Payments to Non-Employees. The change in accounting treatment is a non-cash item and does not impact the Company’s operating activities or cash from operations. Other operating expense for the second quarter of 2014 increased $800,000, or 29%, to $3.6 million from $2.8 million in the second of 2013. This was primarily the result of write downs of investments in tax credit partnerships of $377,000 for the second quarter of 2014 compared to $53,000 in the same quarter in 2013. We recognized tax credits of $550,000 during the second 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 first and second quarters of 2014 and the first six months 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 expenses 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 of 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 six months ended June 30, 2014 and the three month periods ended June 30, 2014 and March 31, 2014. Dollars are in thousands, except share and per share data.

	For the Six Months Ended June 30, 2014			For the Three Months Ended June 30, 2014			For the Three Months Ended March 31, 2014
Provision for income taxes - GAAP	$	10,705		$	5,476		$	5,229
Adjustments:
Adjustment for non-routine expense		865			619			246
Core provision for income taxes	$	11,570		$	6,095		$	5,475

Return on average assets - GAAP		1.32	%		1.28	%		1.36	%
Net income - GAAP	$	23,343		$	11,585		$	11,758
Adjustments:
Adjustment for non-routine expense		1,612			1,155			457
Core net income	$	24,955		$	12,740		$	12,215
Average assets	$	3,568,159		$	3,635,506		$	3,500,257
Core return on average assets		1.41	%		1.41	%		1.42	%

Return on average common stockholders' equity		15.61	%		15.67	%		17.83	%
Net income available to common stockholders - GAAP	$	23,127		$	11,469		$	11,658
Adjustments:
Adjustment for non-routine expense		1,612			1,155			457
Core net income available to common stockholders	$	24,739		$	12,624		$	12,115
Average common stockholders' equity	$	298,713		$	306,050		$	265,188
Core return on average common stockholders' equity		16.70	%		16.54	%		18.53	%

Earnings per share - diluted - GAAP	$	0.97		$	0.46		$	0.51
Weighted average shares outstanding, diluted		23,909,707			24,823,590			22,985,670
Core diluted earnings per share	$	1.03		$	0.51		$	0.53

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/.

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,” “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: 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; 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 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 http://servisfirstbancshares.investorroom.com/ or by calling (205) 949-0302.

Contact: ServisFirst Bank

Davis Mange (205) 949-3420

dmange@servisfirstbank.com

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands except share and per share data)
	2nd Quarter 2014			1st Quarter 2014			4th Quarter 2013			3rd Quarter 2013			2nd Quarter 2013
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	35,424		$	34,281		$	33,725		$	32,499		$	30,692
Interest expense		3,446			3,432			3,610			3,534			3,211
Net interest income		31,978			30,849			30,115			28,965			27,481
Provision for loan losses		2,438			2,314			2,356			3,034			3,334
Net interest income after provision for loan losses		29,540			28,535			27,759			25,931			24,147
Non-interest income		2,938			2,175			2,371			2,269			2,573
Non-interest expense		15,417			13,723			12,298			12,067			12,372
Income before income tax		17,061			16,987			17,832			16,133			14,348
Provision for income tax		5,476			5,229			5,964			5,321			4,662
Net income		11,585			11,758			11,868			10,812			9,686
Preferred stock dividends		116			100			116			100			100
Net income available to common stockholders	$	11,469		$	11,658		$	11,752		$	10,712		$	9,586
Earnings per share - basic	$	0.49		$	0.53		$	0.55		$	0.51		$	0.46
Earnings per share - diluted	$	0.46		$	0.51		$	0.53		$	0.49		$	0.44

Average diluted shares outstanding		24,823,590			22,985,670			22,359,351			21,965,733			21,655,326

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	3,762,684		$	3,572,914		$	3,520,699		$	3,396,153		$	3,140,626
Loans		3,053,989			2,937,797			2,858,868			2,731,973			2,590,192
Debt securities		325,432			309,475			298,494			289,515			261,578
Non-interest-bearing demand deposits		729,163			662,834			650,456			635,153			562,196
Total deposits		3,157,642			3,031,041			3,019,642			2,919,217			2,674,977
Borrowings		19,957			19,949			19,940			19,932			19,924
Stockholders' equity	$	380,074		$	312,283		$	297,192		$	276,300		$	265,189

Shares outstanding		24,749,436			22,574,436			22,050,036			21,229,041			20,922,936
Book value per share	$	13.74		$	12.06		$	11.67		$	11.13		$	10.76
Tangible book value per share (1)	$	13.74		$	12.06		$	11.67		$	11.13		$	10.76

SELECTED FINANCIAL RATIOS
Net interest margin		3.74	%		3.80	%		3.67	%		3.69	%		3.93	%
Return on average assets		1.28	%		1.36	%		1.36	%		1.31	%		1.31	%
Return on average common stockholders' equity		15.03	%		17.83	%		18.86	%		18.47	%		17.28	%
Efficiency ratio		44.15	%		41.55	%		37.86	%		38.63	%		41.17	%
Non-interest expense to average earning assets		1.78	%		1.66	%		1.48	%		1.52	%		1.74	%
Tangible common equity to total tangible assets (1)		9.04	%		7.62	%		7.31	%		6.96	%		7.17	%

(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)
(Dollars in thousands)
	June 30, 2014			June 30, 2013			% Change
ASSETS
Cash and due from banks	$	76,893		$	60,251			28	%
Interest-bearing balances due from depository institutions		199,990			129,767			54	%
Federal funds sold		3,044			2,590			18	%
Cash and cash equivalents		279,927			192,608			45	%
Available for sale debt securities, at fair value		294,254			227,770			29	%
Held to maturity debt securities (fair value of $33,663 and $33,292 at
June 30, 2014 and 2013, respectively)		31,178			33,808			(8	)%
Restricted equity securities		3,418			3,738			(9	)%
Mortgage loans held for sale		11,675			16,374			(29	)%
Loans		3,053,989			2,590,192			18	%
Less allowance for loan losses		(32,984	)		(28,757	)		15	%
Loans, net		3,021,005			2,561,435			18	%
Premises and equipment, net		7,745			8,756			(12	)%
Accrued interest and dividends receivable		9,686			9,101			6	%
Deferred tax asset, net		12,817			10,383			23	%
Other real estate owned and repossessed assets		6,739			9,071			(26	)%
Bank owned life insurance contracts		70,090			57,969			21	%
Other assets		14,150			9,613			47	%
Total assets	$	3,762,684		$	3,140,626			20	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing	$	729,163		$	562,196			30	%
Interest-bearing		2,428,479			2,112,781			15	%
Total deposits		3,157,642			2,674,977			18	%
Federal funds purchased		181,070			175,475			3	%
Other borrowings		19,957			19,924			0	%
Accrued interest payable		1,946			905			115	%
Other liabilities		21,995			4,156			429	%
Total liabilities		3,382,610			2,875,437			18	%
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 June 30, 2014 and 2013		39,958			39,958			-	%
Preferred stock, par value $0.001 per share; 1,000,000 authorized and
Common stock, par value $0.0003 per share; 50,000,000 shares authorized;
24,749,436 shares issued and outstanding at June 30, 2014 and
20,922,936 shares issued and outstanding at June 30, 2013		8			7			14	%
Additional paid-in capital		183,782			109,874			67	%
Retained earnings		150,769			111,217			36	%
Accumulated other comprehensive income		5,305			4,133			28	%
Noncontrolling interest		252			-			100	%
Total stockholders' equity		380,074			265,189			43	%
Total liabilities and stockholders' equity	$	3,762,684		$	3,140,626			20	%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

		Three Months Ended June 30,				Six Months Ended June 30,
		2014		2013		2014	2013
Interest income:
Interest and fees on loans	$	33,250	$	28,874	$	65,502	$56,192
Taxable securities		1,126		908		2,223	1,856
Nontaxable securities		870		847		1,741	1,679
Federal funds sold		43		17		85	33
Other interest and dividends		135		46		154	97
Total interest income		35,424		30,692		69,705	59,857
Interest expense:
Deposits		3,027		2,784		6,041	5,497
Borrowed funds		419		427		837	978
Total interest expense		3,446		3,211		6,878	6,475
Net interest income		31,978		27,481		62,827	53,382
Provision for loan losses		2,438		3,334		4,752	7,618
Net interest income after provision for loan losses		29,540		24,147		58,075	45,764
Non-interest income:
Service charges on deposit accounts		1,057		806		1,925	1,568
Mortgage banking		674		787		958	1,752
Securities gains		-		8		-	131
Increase in cash surrender value life insurance		546		485		1,082	955
Other operating income		661		487		1,148	964
Total non-interest income		2,938		2,573		5,113	5,370
Non-interest expense:
Salaries and employee benefits		9,098		7,056		16,795	12,735
Equipment and occupancy expense		1,409		1,469		2,775	2,580
Professional services		532		425		1,048	886
FDIC and other regulatory assessments		528		426		1,045	858
Other real estate owned expense		298		204		785	594
Other operating expense		3,552		2,792		6,692	5,471
Total non-interest expense		15,417		12,372		29,140	23,124
Income before income tax		17,061		14,348		34,048	28,010
Provision for income tax		5,476		4,662		10,705	9,073
Net income		11,585		9,686		23,343	18,937
Dividends on preferred stock		116		100		216	200
Net income available to common stockholders	$	11,469	$	9,586	$	23,127	$18,737
Basic earnings per common share	$	0.49	$	0.46	$	1.01	$0.94
Diluted earnings per common share	$	0.46	$	0.44	$	0.97	$0.88

SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
	2nd Quarter 2014			1st Quarter 2014			4th Quarter 2013			3rd Quarter 2013			2nd Quarter 2013
Reserve for loan losses:
Beginning balance	$	31,728		$	30,663		$	28,927		$	28,757		$	27,679
Loans charged off:
Commercial financial and agricultural		142			1,222			95			849			101
Real estate - construction		325			23			557			394			1,888
Real estate - mortgage:		890			4			25			1,746			270
Consumer		18			58			38			42			129
Total charge off		1,375			1,307			715			3,031			2,388
Recoveries:
Commercial financial and agricultural		1			45			16			13			31
Real estate - construction		180			8			70			124			95
Real estate - mortgage:		10			4			9			24			3
Consumer		2			1			-			6			3
Total recoveries		193			58			95			167			132
Net charge-off		1,182			1,249			620			2,864			2,256
Provision for loan losses		2,438			2,314			2,356			3,034			3,334
Ending balance	$	32,984		$	31,728		$	30,663		$	28,927		$	28,757

Reserve for loan losses to total loans		1.08	%		1.08	%		1.07	%		1.06	%		1.11	%
Reserve for loan losses to total average
loans		1.10	%		1.09	%		1.11	%		1.09	%		1.14	%
Net charge-offs to total average loans		0.16	%		0.17	%		0.09	%		0.43	%		0.36	%
Provision for loan losses to total average
loans		0.33	%		0.32	%		0.34	%		0.46	%		0.53	%
Nonperforming assets:
Nonaccrual loans	$	13,193		$	9,084		$	9,621		$	9,396		$	14,765
Loans 90+ days past due and accruing		-			110			115			-			259
Other real estate owned and
repossessed assets		6,739			9,752			12,861			14,258			9,232
Total	$	19,932		$	18,946		$	22,597		$	23,654		$	24,256

Nonperforming loans to total loans		0.43	%		0.31	%		0.35	%		0.34	%		0.58	%
Nonperforming assets to total assets		0.53	%		0.53	%		0.64	%		0.70	%		0.77	%
Nonperforming assets to earning assets		0.54	%		0.55	%		0.66	%		0.72	%		0.79	%
Reserve for loan losses to nonaccrual loans		250.01	%		349.27	%		318.71	%		307.87	%		194.76	%

Restructured accruing loans	$	7,030		$	9,411		$	9,689		$	6,233		$	9,406

Restructured accruing loans to total loans		0.23	%		0.32	%		0.35	%		0.23	%		0.36	%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

	2nd Quarter 2014		1st Quarter 2014		4th Quarter 2013		3rd Quarter 2013		2nd Quarter 2013
Interest income:
Interest and fees on loans	$	33,250	$	32,252	$	31,618	$	30,475	$28,874
Taxable securities		1,126		1,097		1,052		980	908
Nontaxable securities		870		871		870		858	847
Federal funds sold		43		42		51		44	17
Other interest and dividends		135		19		134		142	46
Total interest income		35,424		34,281		33,725		32,499	30,692
Deposits		3,027		3,014		3,202		3,131	2,784
Borrowed funds		419		418		408		403	427
Total interest expense		3,446		3,432		3,610		3,534	3,211
Net interest income		31,978		30,849		30,115		28,965	27,481
Provision for loan losses		2,438		2,314		2,356		3,034	3,334
Net interest income after provision for loan losses		29,540		28,535		27,759		25,931	24,147
Non-interest income:
Service charges on deposit accounts		1,057		868		837		823	806
Mortgage banking		674		284		344		402	787
Securities gains		-		-		-		-	8
Increase in cash surrender value life insurance		546		536		548		491	485
Other operating income		661		487		642		553	487
Total non-interest income		2,938		2,175		2,371		2,269	2,573
Salaries and employee benefits		9,098		7,697		6,541		7,048	7,056
Equipment and occupancy expense		1,409		1,366		1,350		1,272	1,469
Professional services		532		516		480		443	425
FDIC and other regulatory assessments		528		517		536		405	426
Other real estate owned expense		298		487		475		357	204
Other operating expense		3,552		3,140		2,916		2,542	2,792
Total non-interest expense		15,417		13,723		12,298		12,067	12,372
Income before income tax		17,061		16,987		17,832		16,133	14,348
Provision for income tax		5,476		5,229		5,964		5,321	4,662
Net income		11,585		11,758		11,868		10,812	9,686
Dividends on preferred stock		116		100		116		100	100
Net income available to common stockholders	$	11,469	$	11,658	$	11,752	$	10,712	$9,586
Basic earnings per common share	$	0.49	$	0.53	$	0.55	$	0.51	$0.46
Diluted earnings per common share	$	0.46	$	0.51	$	0.53	$	0.49	$0.44

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS - UNAUDITED

ON A FULLY TAXABLE-EQUIVALENT BASIS

(Dollars in thousands)

	2nd Quarter 2014					1st Quarter 2014					4th Quarter 2013					3rd Quarter 2013					2nd 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	$	2,978,631		4.46	%	$	2,892,433		4.52	%	$	2,754,955		4.54	%	$	2,640,444		4.56	%	$	2,519,869		4.58	%
Tax-exempt(2)		15,803		3.25			14,550		3.34			5,669		4.34			2,483		5.91			2,453		5.72
Mortgage loans held for sale		8,048		3.24			4,496		2.80			5,956		3.66			12,531		2.66			14,157		2.10
Debt securities:
Taxable		188,148		2.40			174,842		2.54			166,027		2.49			152,135		2.56			139,189		2.65
Tax-exempt(2)		123,897		4.11			122,686		4.13			120,161		4.11			118,001		4.13			115,428		4.22
Total securities (3)		312,045		3.08			297,528		3.20			286,188		3.17			270,136		3.24			254,617		3.36
Federal funds sold		41,388		0.37			54,895		0.31			68,710		0.25			62,192		0.28			21,303		0.26
Restricted equity securities		3,446		7.57			3,738		-			3,738		2.55			3,738		2.65			3,738		2.25
Interest-bearing balances with banks		121,532		0.25			82,279		0.09			173,521		0.29			161,169		0.29			30,083		0.24
Total interest-earning assets		3,480,893		4.13	%		3,349,919		4.21	%		3,298,737		4.11	%		3,152,693		4.14	%		2,846,220		4.38	%
Non-interest-earning assets:
Cash and due from banks		57,387					56,082					53,062					45,314					42,175
Net premises and equipment		8,377					8,724					8,944					9,052					9,359
Allowance for loan losses,
accrued interest and
other assets		88,849					85,532					98,586					76,477					75,239
Total assets	$	3,635,506				$	3,500,257				$	3,459,329				$	3,283,536				$	2,972,993

Interest-bearing liabilities:
Interest-bearing deposits:
Checking	$	482,115		0.27	%	$	478,678		0.27	%	$	472,751		0.27	%	$	432,453		0.28	%	$	415,955		0.28	%
Savings		25,406		0.28			25,081		0.27			21,755		0.27			21,602		0.29			21,733		0.28
Money market		1,472,346		0.44			1,416,645		0.45			1,420,771		0.47			1,356,197		0.47			1,123,605		0.46
Time deposits		402,613		1.08			412,622		1.10			412,254		1.13			408,600		1.16			402,733		1.19
Federal funds purchased		195,809		0.28			195,967		0.28			176,967		0.28			168,121		0.28			185,533		0.29
Other borrowings		19,953		5.69			19,945		5.75			19,936		5.63			19,928		5.63			19,920		5.92
Total interest-bearing liabilities		2,598,242		0.53	%		2,548,938		0.55	%		2,524,434		0.57	%		2,406,901		0.58	%		2,169,479		0.59	%
Non-interest-bearing liabilities:
Non-interest-bearing
demand		675,098					641,450					640,476					599,379					539,228
Other liabilities		16,158					4,724					7,226					7,250					1,799
Stockholders' equity		341,120					300,512					282,549					266,427					255,837
Unrealized gains on securities and
derivatives		4,888					4,634					4,644					3,580					6,650
Total liabilities and
stockholders' equity	$	3,635,506				$	3,500,257				$	3,459,329				$	3,283,536				$	2,972,993
Net interest spread				3.60	%				3.67	%				3.54	%				3.56	%				3.79	%
Net interest margin				3.74	%				3.80	%				3.67	%				3.69	%				3.93	%

(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.