Exhibit 99.1

SERVISFIRST BANCSHARES, INC.

Announces Results For Third Quarter of 2016

Birmingham, Ala. – (PR Newswire) – October 17, 2016 – ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the quarter and nine months ended September 30, 2016.

THIRD Quarter 2016 Highlights:

Diluted EPS of $0.78 for third quarter of 2016, a 28% increase year over year

Net income of $59.7 million and diluted EPS of $2.23 for the nine months ended September 30, 2016

Core diluted EPS* for the nine months ended September 30, 2016 increased 30% year over year as 2015 results were impacted by acquisition expenses

Loans and deposits increased 15% and 26%, respectively, year over year

Loans and deposits increased 10% and 36%, respectively, for the third quarter on an annualized basis

*Core measures exclude non-routine expenses during the comparative periods presented in this press release as more fully described in “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below.

Tom Broughton, President and CEO, said, “We are pleased to report a solid quarter of growth in net income, loans and deposits with excellent credit quality.” Bud Foshee, CFO, stated, “Net income in our Nashville, Tennessee region has continued to grow and net operating losses in our newer regions in Atlanta, Georgia, Charleston, South Carolina and Tampa Bay, Florida decreased in the third quarter.”

FINANCIAL SUMMARY (UNAUDITED)

(in Thousands except share and per share amounts)

	Period Ending September 30, 2016			Period Ending June 30, 2016			% Change From Period Ending June 30, 2016 to Period Ending September 30, 2016			Period Ending September 30, 2015			% Change From Period Ending September 30, 2015 to Period Ending September 30, 2016
QUARTERLY OPERATING RESULTS
Net Income	$	20,909		$	18,876			11	%	$	16,266			29	%
Net Income Available to Common Stockholders	$	20,909		$	18,853			11	%	$	16,233			29	%
Diluted Earnings Per Share	$	0.78		$	0.71			10	%	$	0.61			28	%
Return on Average Assets		1.39	%		1.37	%					1.38	%
Return on Average Common Stockholders' Equity		16.66	%		15.79	%					15.52	%
Average Diluted Shares Outstanding		26,939,664			26,726,284						26,506,334

YEAR-TO-DATE OPERATING RESULTS
Net Income	$	59,741		$	38,832					$	43,790			36	%
Net Income Available to Common Stockholders	$	59,718		$	38,809					$	43,534			37	%
Diluted Earnings Per Share	$	2.23		$	1.46					$	1.65			35	%
Return on Average Assets		1.43	%		1.45	%					1.32	%
Return on Average Common Stockholders' Equity		16.60	%		16.57	%					14.40	%
Average Diluted Shares Outstanding		26,744,959			26,646,547						26,391,100

Core Net Income*	$	59,741								$	45,557			31	%
Core Net Income Available to Common Stockholders*	$	59,718								$	45,301			32	%
Core Diluted Earnings Per Share*	$	2.23								$	1.72			30	%
Core Return on Average Assets*		1.43	%								1.37	%
Core Return on Average Common Stockholders' Equity*		16.60	%								14.99	%

BALANCE SHEET
Total Assets	$	6,002,621		$	5,646,055			6	%	$	4,772,601			26	%
Loans		4,657,284			4,539,338			3	%		4,044,242			15	%
Non-interest-bearing Demand Deposits		1,269,726			1,185,668			7	%		1,029,354			23	%
Total Deposits		5,081,128			4,664,795			9	%		4,044,634			26	%
Stockholders' Equity		507,866			489,097			4	%		431,194			18	%

* Core measures exclude non-routine expenses during the comparative periods presented in this press release as more fully described in "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below.

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $20.9 million for the quarter ended September 30, 2016, compared to net income of $16.3 million and net income available to common stockholders of $16.2 million for the same quarter in 2015. Basic and diluted earnings per common share were $0.80 and $0.78, respectively, for the third quarter of 2016, compared to $0.63 and $0.61, respectively, for the third quarter of 2015.

Return on average assets was 1.39% and return on average equity was 16.66% for the third quarter of 2016, compared to 1.38% and 15.52%, respectively, for the third quarter of 2015.

Net interest income was $47.9 million for the third quarter of 2016, compared to $45.9 million for the second quarter of 2016 and $41.9 million for the third quarter of 2015. The increase in net interest income on a linked quarter basis is attributable to a $164.0 million increase in average loans outstanding, a $107.6 million increase in non-interest-bearing deposits and a $20.0 million increase in average stockholders’ equity and other liabilities, all resulting in a positive mix change in our balance sheet. The average yield on loans increased one basis point to 4.48% on a linked quarter basis. The net interest margin in the third quarter of 2016 was 3.35%, a 16 basis point decrease from the second quarter of 2016 and 42 basis point decrease from the third quarter of 2015. The decrease in the net interest margin is primarily the result of excess liquidity in the form of large amounts in federal funds sold and funds on deposit at the Federal Reserve Bank. Average balances in these accounts increased $269.8 million on a linked quarter basis and $614.4 million when compared to the third quarter of 2015.

Average loans for the third quarter of 2016 were $4.59 billion, an increase of $164.0 million, or 4%, over average loans of $4.42 billion for the second quarter of 2016, and an increase of $660.8 million, or 17%, over average loans of $3.93 billion for the third quarter of 2015.

Average total deposits for the third quarter of 2016 were $4.98 billion, an increase of $501.9 million, or 11%, over average total deposits of $4.48 billion for the second quarter of 2016, and an increase of $1.06 billion, or 27%, over average total deposits of $3.92 billion for the third quarter of 2015.

Non-performing assets to total assets were 0.16% for the third quarter of 2016, a decrease of one basis point compared to 0.17% for the second quarter of 2016 and a decrease of 18 basis points compared to 0.34% for the third quarter of 2015. Net credit charge-offs to average loans were 0.13%, a 5 basis point decrease compared to 0.18% for the second quarter of 2016 and an eight basis point increase compared to 0.05% for the third quarter of 2015. We recorded a $3.5 million provision for loan losses in the third quarter of 2016 compared to $3.8 million in the second quarter of 2016 and $3.1 million in the third quarter of 2015. The allowance for loan loss as a percentage of total loans increased one basis point to 1.05% at September 30, 2016, compared to 1.04% at June 30, 2016 and was flat compared to 1.05% at September 30, 2015. In management’s opinion, the allowance is adequate and was determined by consistent application of ServisFirst Bank’s methodology for calculating its allowance for loan losses.

Non-interest income increased $1.1 million during the third quarter of 2016, or 28%, compared to the third quarter of 2015. Mortgage banking revenue increased by $239,000 in the third quarter of 2016, or 27%, compared to the third quarter of 2015, resulting from improved operations, translating to increased net gains on sales. Credit card income increased $593,000 in the third quarter of 2016, or 99%, compared to the third quarter of 2015, resulting from a 58% increase in the volume of spending and a 62% increase in the number of credit card accounts. We introduced a purchase card product in the fourth quarter of 2015. This new product also contributed to our increase in credit card income.

Non-interest expense for the third quarter of 2016 increased $1.9 million, or 10%, to $20.2 million from $18.2 million in the third quarter of 2015, and increased $658,000, or 3%, on a linked quarter basis. Salary and benefit expense for the third quarter of 2016 increased $363,000, or 3%, to $11.0 million from $10.6 million in the third quarter of 2015, and increased $225,000, or 2%, on a linked quarter basis. Equipment and Occupancy expense increased $525,000, or 33%, to $2.1 million in the third quarter of 2016, from $1.6 million in the third quarter of 2015. This increase in equipment and occupancy expense was attributable to new offices in our Charleston, South Carolina and Nashville, Tennessee regions, each of which were relocations from temporary facilities we previously occupied. We also accelerated depreciation of leasehold improvements in our Birmingham, Alabama headquarters building to coincide with our anticipated move date to our new headquarters building, which we anticipate will be in the second half of 2017. Professional services expense increased $514,000, or 77%, to $1.2 million in the third quarter of 2016, from $668,000 in the third quarter of 2015, primarily the result of accruals for current pending litigation. Other operating expense for the third quarter of 2016 increased $640,000, or 15%, to $5.0 million from $4.3 million in the third quarter of 2015. This was primarily the result of higher data processing expenses related to increased online banking transaction volumes and an upgrade of our correspondent banking platform, increased Federal Reserve Bank charges from our correspondent bank clearing activities and increased credit card processing expenses. We also contributed $113,000 to a Birmingham-based charitable organization as part of an investment in a new markets tax credit partnership. These increases were offset by lower costs incurred related to nonperforming loans.

Income tax expense increased $160,000, or 2%, to $8.2 million in the third quarter of 2016, compared to $8.0 million in the third quarter of 2015, and increased $1.2 million, or 6%, to $22.0 million in the nine month period ended September 30, 2016, compared to $20.9 million in the nine month period ended September 30, 2015. In the second quarter of 2016 we adopted the amendments in Accounting Standards Update 2016-09 using the modified retrospective method. We have recognized excess tax benefits from the exercise and vesting of stock options and restricted stock of $421,000 in the third quarter of 2015 and $4.7 million in the nine months ended September 30, 2016. Previously under generally accepted accounting principles, such credits were reflected within additional paid-in capital.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

We recorded expenses of $2.1 million for the first quarter of 2015 related to the acquisition of Metro Bancshares, Inc. and the merger of Metro Bank with and into the Bank, and recorded an expense of $500,000 resulting from the initial funding of reserves for unfunded loan commitments for the first quarter of 2015, consistent with guidance provided in the Federal Reserve Bank’s Inter-agency Policy Statement SR 06-17. Core financial measures included in this press release 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 merger expenses, the initial funding of reserves for unfunded loan commitments, and are all considered non-GAAP financial measures. Other non-GAAP financial measures included in this press release are “tangible common stockholders’ equity,” “total tangible assets,” “tangible book value per share,” and “tangible common equity to total tangible assets.” All non-GAAP financial measures are more fully explained below.

“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.

“Tangible common stockholders’ equity” is defined as common stockholders’ equity, adjusted by the total of goodwill and other identifiable intangible assets.

“Total tangible assets” is defined as total assets, adjusted by the total of goodwill and other identifiable intangible assets.

“Tangible book value per share” is defined as tangible common stockholders’ equity divided by the number of common shares outstanding.

“Tangible common equity to total tangible assets” is defined as tangible common equity divided by total tangible assets.

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 nine month comparative periods ended September 30, 2016 and 2015 included in this press release. Dollars are in thousands, except share and per share data.

	As Of September 30, 2016			As Of and For the Nine Months Ended September 30, 2015
Return on average assets - GAAP					1.32	%
Net income - GAAP				$	43,790
Adjustments:
Merger expenses - Metro Bancshares, Inc.					2,096
Initial reserve for unfunded loan commitments					500
Tax (benefit) of adjustments					(829	)
Core net income - non-GAAP*				$	45,557
Average assets - GAAP				$	4,430,226
Core return on average assets - non-GAAP*					1.37	%

Return on average common stockholders' equity - GAAP					14.40	%
Net income available to common stockholders - GAAP				$	43,534
Adjustments:
Merger expenses - Metro Bancshares, Inc.					2,096
Initial reserve for unfunded loan commitments					500
Tax (benefit) of adjustments					(829	)
Core net income available to common stockholders - non-GAAP*				$	45,301
Average common stockholders' equity - GAAP				$	404,177
Core return on average common stockholders' equity - non-GAAP*					14.99	%

Diluted earnings per share - GAAP				$	1.65
Weighted average shares outstanding, diluted - GAAP					26,391,100
Core diluted earnings per share - non-GAAP*				$	1.72

Book value per share - GAAP	$	19.31		$	16.65
Total common stockholders' equity - GAAP		507,866			431,194
Adjustments:
Goodwill and other identifiable intangible assets		15,073			17,756
Tangible common stockholders' equity - non-GAAP	$	492,793		$	413,438
Tangible book value per share - non-GAAP	$	18.73		$	15.96

Stockholders' equity to total assets - GAAP		8.46	%		9.03	%
Total assets - GAAP	$	6,002,621		$	4,772,601
Adjustments:
Goodwill and other identifiable intangible assets		15,073			17,756
Total tangible assets - non-GAAP	$	5,987,548		$	4,754,845
Tangible common equity to total tangible assets - non-GAAP		8.23	%		8.70	%

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 and Tampa Bay, Florida, Atlanta, Georgia, Charleston, South Carolina and Nashville, Tennessee.

ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at 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)

	3rd Quarter 2016			2nd Quarter 2016			1st Quarter 2016			4th Quarter 2015			3rd Quarter 2015
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	54,691		$	52,050		$	49,961		$	48,451		$	46,532
Interest expense		6,773			6,159			5,782			5,290			4,670
Net interest income		47,918			45,891			44,179			43,161			41,862
Provision for loan losses		3,464			3,800			2,059			3,308			3,072
Net interest income after provision for loan losses		44,454			42,091			42,120			39,853			38,790
Non-interest income		4,791			3,847			3,435			3,475			3,738
Non-interest expense		20,162			19,504			19,290			19,002			18,248
Income before income tax		29,083			26,434			26,265			24,326			24,280
Provision for income tax		8,174			7,558			6,309			4,576			8,014
Net income		20,909			18,876			19,956			19,750			16,266
Preferred stock dividends		-			23			-			24			33
Net income available to common stockholders	$	20,909		$	18,853		$	19,956		$	19,726		$	16,233
Earnings per share - basic	$	0.80		$	0.72		$	0.76		$	0.76		$	0.63
Earnings per share - diluted	$	0.78		$	0.71		$	0.75		$	0.74		$	0.61
Average diluted shares outstanding		26,939,664			26,726,284			26,566,810			26,595,239			26,506,334

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	6,002,621		$	5,646,055		$	5,378,599		$	5,095,509		$	4,772,601
Loans		4,657,284			4,539,338			4,340,900			4,216,375			4,044,242
Debt securities		377,270			347,706			362,106			370,364			334,635
Non-interest-bearing demand deposits		1,269,726			1,185,668			1,070,275			1,053,467			1,029,354
Total deposits		5,081,128			4,664,795			4,339,747			4,223,888			4,044,634
Borrowings		55,356			55,450			55,543			55,637			55,728
Stockholders' equity	$	507,866		$	489,097		$	470,940		$	449,147		$	431,194

Shares outstanding		26,305,448			26,251,948			26,182,698			25,972,698			25,903,698
Book value per share	$	19.31		$	18.63		$	17.99		$	17.29		$	16.65
Tangible book value per share (1)	$	18.73		$	18.05		$	17.40		$	16.70		$	15.96

SELECTED FINANCIAL RATIOS
Net interest margin		3.35	%		3.51	%		3.57	%		3.56	%		3.77	%
Return on average assets		1.39	%		1.37	%		1.53	%		1.55	%		1.38	%
Return on average common stockholders' equity		16.66	%		15.79	%		17.39	%		17.75	%		15.52	%
Efficiency ratio		38.25	%		39.21	%		40.51	%		40.75	%		40.02	%
Non-interest expense to average earning assets		1.39	%		1.50	%		1.56	%		1.56	%		1.63	%

CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets (3)		9.91	%		9.83	%		9.90	%		9.72	%		9.59	%
Tier 1 capital to risk-weighted assets		9.92	%		9.84	%		9.91	%		9.73	%		9.60	%
Total capital to risk-weighted assets		12.03	%		11.98	%		12.12	%		11.95	%		11.89	%
Tier 1 capital to average assets		8.20	%		8.52	%		8.65	%		8.55	%		8.83	%
Tangible common equity to total tangible assets (1)		8.23	%		8.42	%		8.50	%		8.54	%		8.70	%

(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.

(3) Basel III final capital rules, including the new Common Equity Tier 1 Capital to Risk-Weighted Assets ratio, became effective for the Company on January 1, 2015.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

	September 30, 2016			September 30, 2015			% Change
ASSETS
Cash and due from banks	$	57,221		$	50,481			13	%
Interest-bearing balances due from depository institutions		553,392			165,982			233	%
Federal funds sold		181,644			26,229			593	%
Cash and cash equivalents		792,257			242,692			226	%
Available for sale debt securities, at fair value		351,417			306,666			15	%
Held to maturity debt securities (fair value of $26,912 and $28,511 at September 30, 2016 and 2015, respectively)		25,853			27,969			(8	)%
Restricted equity securities		5,668			4,954			14	%
Mortgage loans held for sale		6,026			5,387			12	%
Loans		4,657,284			4,044,242			15	%
Less allowance for loan losses		(48,933	)		(42,574	)		15	%
Loans, net		4,608,351			4,001,668			15	%
Premises and equipment, net		25,033			18,989			32	%
Goodwill and other identifiable intangible assets		15,073			17,756			(15	)%
Other assets		172,943			146,520			18	%
Total assets	$	6,002,621		$	4,772,601			26	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing	$	1,269,726		$	1,029,354			23	%
Interest-bearing		3,811,402			3,015,280			26	%
Total deposits		5,081,128			4,044,634			26	%
Federal funds purchased		344,390			228,415			51	%
Other borrowings		55,356			55,728			(1	)%
Other liabilities		13,881			12,630			10	%
Total liabilities		5,494,755			4,341,407			27	%
Stockholders' equity:
Preferred stock, Series A Senior Non-Cumulative Perpetual, par value $0.001 (liquidation preference $1,000), net of discount; no shares authorized or outstanding at September 30, 2016, and 40,000 authorized, no shares issued and outstanding at September 30, 2015		-			-
Preferred stock, par value $0.001 per share; 1,000,000 shares authorized and undesignated at September 30, 2016, and 1,000,000 shares authorized and 960,000 shares undesignated at September 30, 2015		-			-
Common stock, par value $0.001 per share; 100,000,000 shares authorized and 26,305,448 shares issued and outstanding at September 30, 2016 and 50,000,000 authorized and 25,903,698 shares issued and outstanding at September 30, 2015		26			26			-	%
Additional paid-in capital		215,262			210,331			2	%
Retained earnings		287,568			215,982			33	%
Accumulated other comprehensive income		4,633			4,478			3	%
Noncontrolling interest		377			377			-	%
Total stockholders' equity		507,866			431,194			18	%
Total liabilities and stockholders' equity	$	6,002,621		$	4,772,601			26	%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016			2015
Interest income:
Interest and fees on loans	$	51,598	$	44,401	$	148,055		$	125,152
Taxable securities		1,107		1,041		3,614			3,273
Nontaxable securities		823		890		2,515			2,624
Federal funds sold		347		32		630			81
Other interest and dividends		816		168		1,888			394
Total interest income		54,691		46,532		156,702			131,524
Interest expense:
Deposits		5,358		3,818		14,352			10,600
Borrowed funds		1,415		852		4,362			1,814
Total interest expense		6,773		4,670		18,714			12,414
Net interest income		47,918		41,862		137,988			119,110
Provision for loan losses		3,464		3,072		9,323			9,539
Net interest income after provision for loan losses		44,454		38,790		128,665			109,571
Non-interest income:
Service charges on deposit accounts		1,367		1,279		3,980			3,762
Mortgage banking		1,112		873		2,681			2,062
Securities gains		-		-		(3	)		29
Increase in cash surrender value life insurance		770		683		2,049			1,991
Other operating income		1,542		903		3,366			2,258
Total non-interest income		4,791		3,738		12,073			10,102
Non-interest expense:
Salaries and employee benefits		10,958		10,595		32,758			30,029
Equipment and occupancy expense		2,100		1,575		6,108			4,870
Professional services		1,182		668		2,919			1,901
FDIC and other regulatory assessments		775		681		2,328			1,927
Other real estate owned expense		178		400		668			903
Merger expense		-		-		-			2,100
Other operating expense		4,969		4,329		14,175			13,264
Total non-interest expense		20,162		18,248		58,956			54,994
Income before income tax		29,083		24,280		81,782			64,679
Provision for income tax		8,174		8,014		22,041			20,889
Net income		20,909		16,266		59,741			43,790
Dividends on preferred stock		-		33		23			256
Net income available to common stockholders	$	20,909	$	16,233	$	59,718		$	43,534
Basic earnings per common share	$	0.80	$	0.63	$	2.27		$	1.70
Diluted earnings per common share	$	0.78	$	0.61	$	2.23		$	1.65

LOANS BY TYPE (UNAUDITED)

(In thousands)

	3rd Quarter 2016		2nd Quarter 2016		1st Quarter 2016		4th Quarter 2015		3rd Quarter 2015
Commercial, financial and agricultural	$	1,910,777	$	1,895,870	$	1,799,132	$	1,760,479	$	1,683,819
Real estate - construction		292,721		251,144		254,254		243,267		232,895
Real estate - mortgage:
Owner-occupied commercial		1,138,308		1,117,514		1,055,852		1,014,669		978,721
1-4 family mortgage		520,394		494,733		458,032		444,134		417,012
Other mortgage		740,127		725,336		723,542		698,779		677,822
Subtotal: Real estate - mortgage		2,398,829		2,337,583		2,237,426		2,157,582		2,073,555
Consumer		54,957		54,741		50,088		55,047		53,973
Total loans	$	4,657,284	$	4,539,338	$	4,340,900	$	4,216,375	$	4,044,242

SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)

(Dollars in thousands)

	3rd Quarter 2016			2nd Quarter 2016			1st Quarter 2016			4th Quarter 2015			3rd Quarter 2015
Allowance for loan losses:
Beginning balance	$	46,998		$	45,145		$	43,419		$	42,574		$	40,020
Loans charged off:
Commercial financial and agricultural		1,270			1,412			50			2,186			388
Real estate - construction		79			355			381			161			31
Real estate - mortgage		144			191			-			463			-
Consumer		81			31			18			21			126
Total charge offs		1,574			1,989			449			2,831			545
Recoveries:
Commercial financial and agricultural		35			1			3			241			13
Real estate - construction		9			39			16			61			13
Real estate - mortgage		1			2			97			65			1
Consumer		-			-			-			1			-
Total recoveries		45			42			116			368			27
Net charge-offs		1,529			1,947			333			2,463			518
Provision for loan losses		3,464			3,800			2,059			3,308			3,072
Ending balance	$	48,933		$	46,998		$	45,145		$	43,419		$	42,574

Allowance for loan losses to total loans		1.05	%		1.04	%		1.04	%		1.03	%		1.05	%
Allowance for loan losses to total average loans		1.07	%		1.06	%		1.06	%		1.05	%		1.08	%
Net charge-offs to total average loans		0.13	%		0.18	%		0.03	%		0.24	%		0.05	%
Provision for loan losses to total average loans		0.30	%		0.34	%		0.20	%		0.32	%		0.31	%
Nonperforming assets:
Nonaccrual loans	$	6,647		$	4,730		$	6,133		$	7,767		$	9,850
Loans 90+ days past due and accruing		43			423			417			1			524
Other real estate owned and repossessed assets		3,035			4,260			4,044			5,392			6,068
Total	$	9,725		$	9,413		$	10,594		$	13,160		$	16,442

Nonperforming loans to total loans		0.14	%		0.11	%		0.15	%		0.18	%		0.26	%
Nonperforming assets to total assets		0.16	%		0.17	%		0.20	%		0.26	%		0.34	%
Nonperforming assets to earning assets		0.16	%		0.17	%		0.20	%		0.26	%		0.35	%
Reserve for loan losses to nonaccrual loans		736.17	%		993.62	%		736.10	%		559.02	%		432.22	%

Restructured accruing loans	$	6,738		$	6,753		$	6,763		$	6,782		$	8,266

Restructured accruing loans to total loans		0.14	%		0.15	%		0.16	%		0.16	%		0.20	%

TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)

(In thousands)

	3rd Quarter 2016			2nd Quarter 2016			1st Quarter 2016			4th Quarter 2015			3rd Quarter 2015
Beginning balance:	$	6,753		$	6,763		$	7,736		$	8,266		$	8,279
Net (paydowns) / advances		(15	)		(10	)		(19	)		(83	)		(13	)
Transfers to other real estate owned		-			-			(954	)		-			-
Charge-offs		-			-			-			(447	)		-
	$	6,738		$	6,753		$	6,763		$	7,736		$	8,266

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

	3rd Quarter 2016		2nd Quarter 2016			1st Quarter 2016		4th Quarter 2015		3rd Quarter 2015
Interest income:
Interest and fees on loans	$	51,598	$	49,210		$	47,247	$	46,150	$	44,401
Taxable securities		1,107		1,238			1,269		1,058		1,041
Nontaxable securities		823		834			858		875		890
Federal funds sold		347		210			73		46		32
Other interest and dividends		816		558			514		322		168
Total interest income		54,691		52,050			49,961		48,451		46,532
Interest expense:
Deposits		5,358		4,611			4,361		4,294		3,818
Borrowed funds		1,415		1,548			1,421		996		852
Total interest expense		6,773		6,159			5,782		5,290		4,670
Net interest income		47,918		45,891			44,179		43,161		41,862
Provision for loan losses		3,464		3,800			2,059		3,308		3,072
Net interest income after provision for loan losses		44,454		42,091			42,120		39,853		38,790
Non-interest income:
Service charges on deposit accounts		1,367		1,306			1,307		1,326		1,279
Mortgage banking		1,112		901			668		620		873
Securities gains		-		(3	)		-		-		-
Increase in cash surrender value life insurance		770		655			624		630		683
Other operating income		1,542		988			836		899		903
Total non-interest income		4,791		3,847			3,435		3,475		3,738
Non-interest expense:
Salaries and employee benefits		10,958		10,733			11,067		8,884		10,595
Equipment and occupancy expense		2,100		2,023			1,985		1,519		1,575
Professional services		1,182		999			738		706		668
FDIC and other regulatory assessments		775		803			750		733		681
Other real estate owned expense		178		41			449		324		400
Other operating expense		4,969		4,905			4,301		6,836		4,329
Total non-interest expense		20,162		19,504			19,290		19,002		18,248
Income before income tax		29,083		26,434			26,265		24,326		24,280
Provision for income tax		8,174		7,558			6,309		4,576		8,014
Net income		20,909		18,876			19,956		19,750		16,266
Dividends on preferred stock		-		23			-		24		33
Net income available to common stockholders	$	20,909	$	18,853		$	19,956	$	19,726	$	16,233
Basic earnings per common share	$	0.80	$	0.72		$	0.76	$	0.76	$	0.63
Diluted earnings per common share	$	0.78	$	0.71		$	0.75	$	0.74	$	0.61

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)

ON A FULLY TAXABLE-EQUIVALENT BASIS

(Dollars in thousands)

	3rd Quarter 2016					2nd Quarter 2016					1st Quarter 2016					4th Quarter 2015					3rd Quarter 2015
	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	$	4,564,475		4.48	%	$	4,406,107		4.47	%	$	4,230,057		4.48	%	$	4,113,044		4.44	%	$	3,915,778		4.48	%
Tax-exempt (2)		21,939		4.39			16,315		4.51			10,281		5.56			9,639		4.98			9,802		4.98
Total loans, net of unearned income		4,586,414		4.48			4,422,422		4.47			4,240,338		4.48			4,122,683		4.44			3,925,580		4.48
Mortgage loans held for sale		6,724		3.79			7,323		3.62			6,084		4.63			4,362		4.27			7,714		4.32
Debt securities:
Taxable		215,250		2.06			208,113		2.38			221,722		2.29			193,982		2.16			189,941		2.17
Tax-exempt (2)		135,272		3.73			135,954		3.73			137,763		3.79			139,435		3.85			139,543		3.91
Total securities (3)		350,522		2.70			344,067		2.91			359,485		2.86			333,417		2.87			329,484		2.91
Federal funds sold		217,158		0.64			144,206		0.59			48,390		0.60			33,255		0.55			24,860		0.51
Restricted equity securities		5,658		4.01			5,659		3.62			4,962		3.81			4,954		4.24			4,954		4.16
Interest-bearing balances with banks		590,675		0.51			393,782		0.52			373,339		0.51			366,771		0.29			168,548		0.27
Total interest-earning assets		5,757,151		3.81	%		5,317,459		3.97	%		5,032,598		4.03	%		4,865,442		3.99	%		4,461,140		4.18	%
Non-interest-earning assets:
Cash and due from banks		58,809					65,318					61,578					62,037					63,259
Net premises and equipment		25,000					23,241					21,023					19,609					18,961
Allowance for loan losses, accrued interest and other assets		145,804					127,640					126,491					124,241					127,778
Total assets	$	5,986,764				$	5,533,658				$	5,241,690				$	5,071,329				$	4,671,136

Interest-bearing liabilities:
Interest-bearing deposits:
Checking	$	696,100		0.37	%	$	691,776		0.36	%	$	665,039		0.35	%	$	611,521		0.30	%	$	593,550		0.28	%
Savings		43,569		0.30			41,546		0.30			41,055		0.29			39,590		0.29			37,281		0.30
Money market		2,471,829		0.55			2,105,420		0.52			1,979,727		0.51			2,048,453		0.49			1,817,997		0.47
Time deposits		519,653		0.99			498,151		1.01			507,605		1.00			503,217		1.00			485,137		0.99
Total interest-bearing deposits		3,731,151		0.57			3,336,893		0.56			3,193,426		0.55			3,202,781		0.54			2,933,965		0.52
Federal funds purchased		436,415		0.64			505,076		0.64			441,309		0.64			295,530		0.37			246,168		0.31
Other borrowings		55,410		5.15			55,521		5.20			55,630		5.19			55,805		5.11			50,509		5.18
Total interest-bearing liabilities		4,222,976		0.64	%		3,897,490		0.64	%		3,690,365		0.63	%		3,554,116		0.59	%		3,230,642		0.57	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		1,250,139					1,142,541					1,077,613					1,062,795					988,756
Other liabilities		14,376					13,301					12,194					13,469					23,714
Stockholders' equity		494,248					475,917					457,218					436,928					424,113
Unrealized gains on securities and derivatives		5,025					4,409					4,300					4,021					3,911
Total liabilities and stockholders' equity	$	5,986,764				$	5,533,658				$	5,241,690				$	5,071,329				$	4,671,136
Net interest spread				3.17	%				3.33	%				3.40	%				3.40	%				3.61	%
Net interest margin				3.35	%				3.51	%				3.57	%				3.56	%				3.77	%

(1)

Average loans include loans on which the accrual of interest has been discontinued.