EdgarFiling

EXHIBIT 99.1

ServisFirst Bancshares, Inc. Announces Results for Third Quarter of 2017

BIRMINGHAM, Ala., Oct. 16, 2017 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NASDAQ:SFBS), today announced earnings and operating results for the quarter and nine months ended September 30, 2017.

THIRD QUARTER 2017 HIGHLIGHTS:

Net income of $25.3 million and diluted EPS of $0.47 for the third quarter of 2017, an increase of 21% year over year
Diluted EPS of $1.33 for the nine months ended September 30, 2017, a 19% increase year over year
Loans and deposits increased 21% and 30%, respectively, for the quarter on an annualized basis
Loans and deposits increased 22% and 14%, respectively, year over year

Tom Broughton, President and CEO, said, “We continue to see strong loan and deposit growth throughout our southeastern footprint while continuing to increase our market share.” Bud Foshee, CFO, stated, “We are pleased with our improvement in all key financial metrics in the quarter and are pleased that our ROAA exceeded 1.50% and our efficiency ratio reached 34% in the third quarter.”

FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share amounts)

On December 20, 2016, the Company effected a two-for-one split of its common stock in the form of a stock dividend. All shares and per share information for prior periods in this release have been adjusted to give effect to this stock split.
	Period Ending September 30, 2017			Period Ending June 30, 2017			% Change From Period Ending June 30, 2017 to Period Ending September 30, 2017		Period Ending September 30, 2016			% Change From Period Ending September 30, 2016 to Period Ending September 30, 2017
QUARTERLY OPERATING RESULTS
Net Income	$	25,259		$	24,164		5	%	$	20,909		21	%
Net Income Available to Common Stockholders	$	25,259		$	24,133		5	%	$	20,909		21	%
Diluted Earnings Per Share	$	0.47		$	0.45		4	%	$	0.39		21	%
Return on Average Assets		1.55	%		1.55	%				1.39	%
Return on Average Common Stockholders' Equity		17.28	%		17.36	%				16.66	%
Average Diluted Shares Outstanding		54,099,672			54,100,604					53,879,328

YEAR-TO-DATE OPERATING RESULTS
Net Income	$	71,942							$	59,741		20	%
Net Income Available to Common Stockholders	$	71,911							$	59,718		20	%
Diluted Earnings Per Share	$	1.33							$	1.12		19	%
Return on Average Assets		1.52	%							1.43	%
Return on Average Common Stockholders' Equity		17.24	%							16.60	%
Average Diluted Shares Outstanding		54,111,208								53,489,918

BALANCE SHEET
Total Assets	$	6,712,103		$	6,329,599		6	%	$	6,002,621		12	%
Loans		5,628,765			5,343,688		5	%		4,631,822		22	%
Non-interest-bearing Demand Deposits		1,405,965			1,373,353		2	%		1,269,726		11	%
Total Deposits		5,796,901			5,394,810		7	%		5,081,128		14	%
Stockholders' Equity		590,213			567,086		4	%		507,866		16	%

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $25.3 million for the quarter ended September 30, 2017, compared to net income and net income available to common stockholders of $20.9 million for the same quarter in 2016. Basic and diluted earnings per common share were $0.48 and $0.47, respectively, for the third quarter of 2017, compared to $0.40 and $0.39, respectively, for the third quarter of 2016.

Return on average assets was 1.55% and return on average equity was 17.28% for the third quarter of 2017, compared to 1.39% and 16.66%, respectively, for the third quarter of 2016.

Net interest income was $58.4 million for the third quarter of 2017, compared to $55.6 million for the second quarter of 2017 and $47.9 million for the third quarter of 2016. The net interest margin in the third quarter of 2017 was 3.77%, flat from the second quarter of 2017 and an increase of 42 basis points from the third quarter of 2016. The increase in net interest income on a linked quarter basis is attributable to a $206.5 million increase in average loans outstanding, a $24.7 million increase in non-interest-bearing deposits and a $22.3 million increase in average equity, together resulting in a positive mix change in our balance sheet. The average yield on loans increased by six basis points to 4.66% and the average rate paid on deposits increased by eight basis points to 0.72% on a linked quarter basis.

Average loans for the third quarter of 2017 were $5.44 billion, an increase of $206.5 million, or 4%, over average loans of $5.23 billion for the second quarter of 2017, and an increase of $863.7 million, or 19%, over average loans of $4.58 billion for the third quarter of 2016.

Average total deposits for the third quarter of 2017 were $5.53 billion, an increase of $260.4 million, or 5%, over average total deposits of $5.27 billion for the second quarter of 2017, and an increase of $550.7 million, or 11%, over average total deposits of $4.98 billion for the third quarter of 2016.

Non-performing assets to total assets were 0.28% for the third quarter of 2017, an increase of five basis points compared to 0.23% for the second quarter of 2017 and an increase of 12 basis points compared to 0.16% for the third quarter of 2016. Net credit charge-offs to average loans were 0.10%, a 15 basis point decrease compared to 0.25% for the second quarter of 2017 and a three basis point decrease compared to 0.13% for the third quarter of 2016. We recorded a $4.8 million provision for loan losses in the third quarter of 2017 compared to $4.4 million in the second quarter of 2017 and $3.5 million in the third quarter of 2016. The allowance for loan loss as a percentage of total loans was 1.04% at September 30, 2017 compared to 1.03% at June 30, 2017 and 1.05% at September 30, 2016. 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 for the third quarter of 2017 was $4.8 million, flat with the third quarter of 2016. Service charges on deposit accounts increased $100,000 while mortgage banking revenue decreased by approximately $134,000 in the third quarter of 2017 compared to the third quarter of 2016. Credit card income was flat at $1.1 million due to higher accruals for awards during the third quarter of 2017 compared to the third quarter of 2016.

Non-interest expense for the third quarter of 2017 increased $1.3 million, or 7%, to $21.5 million from $20.2 million in the third quarter of 2016, and decreased $378,000, or 2%, on a linked quarter basis. Salary and benefit expense for the third quarter of 2017 increased $1.4 million, or 13%, to $12.4 million from $11.0 million in the third quarter of 2016, and increased $397,000, or 3%, on a linked quarter basis. Professional service expenses decreased by $377,000, or 32%, to $805,000 for the third quarter of 2017 compared to $1.2 million for the third quarter of 2016, a result of lower legal expenses. Other operating expense for the third quarter of 2017 increased $507,000, or 10%, to $5.5 million from $5.0 million in the third quarter of 2016.

Income tax expense increased $3.4 million, or 42%, to $11.6 million in the third quarter of 2017, compared to $8.2 million in the third quarter of 2016. We recognized excess tax benefits from the exercise and vesting of stock options and restricted stock of $757,000 in the third quarter of 2017, compared to $1.2 million in the third quarter of 2016. Our effective tax rate for the third quarter of 2017 and 2016 was 31.5% and 28.1%, 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 September 30, 2017			At June 30, 2017			At March 31, 2017			At December 31, 2016			At September 30, 2016
Book value per share - GAAP		$	11.14		$	10.72		$	10.32		$	9.93		$	9.65
Total common stockholders' equity - GAAP			590,213			567,086			545,148			522,889			507,866
	Adjustments:
	Adjusted for goodwill and core deposit intangible asset		14,787			14,855			14,924			14,996			15,073
Tangible common stockholders' equity - non-GAAP		$	575,426		$	552,231		$	530,224		$	507,893		$	492,793
Tangible book value per share - non-GAAP		$	10.86		$	10.44		$	10.04		$	9.65		$	9.37

Stockholders' equity to total assets - GAAP			8.79	%		8.96	%		8.60	%		8.21	%		8.46	%
Total assets - GAAP		$	6,712,103		$	6,329,599		$	6,336,165		$	6,370,448		$	6,002,621
	Adjustments:
	Adjusted for goodwill and core deposit intangible asset		14,787			14,855			14,924			14,996			15,073
Total tangible assets - non-GAAP		$	6,697,316		$	6,314,744		$	6,321,241		$	6,355,452		$	5,987,548
Tangible common equity to total tangible assets - non-GAAP			8.59	%		8.75	%		8.39	%		7.99	%		8.23	%

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 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,” “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 www.servisfirstbancshares.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 2017			2nd Quarter 2017			1st Quarter 2017			4th Quarter 2016			3rd Quarter 2016
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	67,641		$	63,538		$	59,517		$	56,200		$	54,691
Interest expense		9,245			7,971			7,465			7,091			6,773
Net interest income		58,396			55,567			52,052			49,109			47,918
Provision for loan losses		4,803			4,381			4,986			4,075			3,464
Net interest income after provision for loan losses		53,593			51,186			47,066			45,034			44,454
Non-interest income		4,790			4,805			4,546			6,039			4,791
Non-interest expense		21,497			21,875			21,267			22,037			20,162
Income before income tax		36,886			34,116			30,345			29,036			29,083
Provision for income tax		11,627			9,952			7,826			7,298			8,174
Net income		25,259			24,164			22,519			21,738			20,909
Preferred stock dividends		-			31			-			24			-
Net income available to common stockholders	$	25,259		$	24,133		$	22,519		$	21,714		$	20,909
Earnings per share - basic	$	0.48		$	0.46		$	0.43		$	0.41		$	0.40
Earnings per share - diluted	$	0.47		$	0.45		$	0.42		$	0.40		$	0.39
Average diluted shares outstanding		54,099,672			54,100,604			54,133,722			53,961,160			53,879,328

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	6,712,103		$	6,329,599		$	6,336,165		$	6,370,448		$	6,002,621
Loans		5,628,765			5,343,688			5,151,984			4,911,770			4,631,822
Debt securities		522,724			518,065			526,023			447,427			402,733
Non-interest-bearing demand deposits		1,405,965			1,373,353			1,292,440			1,281,605			1,269,726
Total deposits		5,796,901			5,394,810			5,361,532			5,420,311			5,081,128
Borrowings		54,975			55,075			55,169			55,262			55,356
Stockholders' equity	$	590,213		$	567,086		$	545,148		$	522,889		$	507,866

Shares outstanding		52,970,310			52,909,362			52,812,396			52,636,896			52,610,896
Book value per share	$	11.14		$	10.72		$	10.32		$	9.93		$	9.65
Tangible book value per share (1)	$	10.86		$	10.44		$	10.04		$	9.65		$	9.37

SELECTED FINANCIAL RATIOS
Net interest margin		3.77	%		3.77	%		3.53	%		3.30	%		3.35	%
Return on average assets		1.55	%		1.55	%		1.45	%		1.39	%		1.39	%
Return on average common stockholders' equity		17.28	%		17.36	%		17.09	%		16.71	%		16.66	%
Efficiency ratio		34.02	%		36.23	%		37.58	%		39.96	%		38.25	%
Non-interest expense to average earning assets		1.38	%		1.47	%		1.43	%		1.46	%		1.39	%

CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets		9.60	%		9.72	%		9.67	%		9.78	%		9.91	%
Tier 1 capital to risk-weighted assets		9.61	%		9.73	%		9.68	%		9.78	%		9.92	%
Total capital to risk-weighted assets		11.51	%		11.67	%		11.66	%		11.84	%		12.03	%
Tier 1 capital to average assets		8.91	%		8.88	%		8.46	%		8.22	%		8.20	%
Tangible common equity to total tangible assets (1)		8.59	%		8.75	%		8.39	%		7.99	%		8.23	%

(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)
			September 30, 2017			September 30, 2016			% Change
ASSETS
Cash and due from banks			$	79,431		$	57,221		39		%
Interest-bearing balances due from depository institutions				86,719			553,392		(84	)	%
Federal funds sold				182,841			181,644		1		%
	Cash and cash equivalents			348,991			792,257		(56	)	%
Available for sale debt securities, at fair value				435,325			351,417		24		%
Held to maturity debt securities (fair value of $89,329 and $26,912 at
	September 30, 2017 and 2016, respectively)			87,399			51,316		70		%
Restricted equity securities				1,038			5,668		(82	)	%
Mortgage loans held for sale				4,971			6,026		(18	)	%
Loans				5,628,765			4,631,822		22		%
Less allowance for loan losses				(58,459	)		(48,933	)	19		%
	Loans, net			5,570,306			4,582,889		22		%
Premises and equipment, net				55,104			25,033		120		%
Goodwill and other identifiable intangible assets				14,787			15,073		(2	)	%
Other assets				194,182			172,942		12		%
	Total assets		$	6,712,103		$	6,002,621		12		%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
	Non-interest-bearing		$	1,405,965		$	1,269,726		11		%
	Interest-bearing			4,390,936			3,811,402		15		%
		Total deposits		5,796,901			5,081,128		14		%
Federal funds purchased				254,880			344,390		(26	)	%
Other borrowings				54,975			55,356		(1	)	%
Other liabilities				15,134			13,881		9		%
	Total liabilities			6,121,890			5,494,755		11		%
Stockholders' equity:
	Preferred stock, Series A Senior Non-Cumulative Perpetual, par value $0.001
		(liquidation preference $1,000), net of discount; no shares authorized,
		no shares issued or outstanding at September 30, 2017 and 2016		-			-		-		%
	Preferred stock, par value $0.001 per share; 1,000,000 shares authorized and
		undesignated at September 30, 2017 and 2016		-			-		-		%
	Common stock, par value $0.001 per share; 100,000,000 shares authorized;
		52,970,310 shares issued and outstanding at September 30, 2017 and
		52,610,896 shares issued and outstanding at September 30, 2016		53			53		-		%
	Additional paid-in capital			217,483			215,235		1		%
	Retained earnings			371,127			287,568		29		%
	Accumulated other comprehensive income			1,048			4,633		(77	)	%
	Noncontrolling interest			502			377		33		%
		Total stockholders' equity		590,213			507,866		16		%
	Total liabilities and stockholders' equity		$	6,712,103		$	6,002,621		12		%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
		Three Months Ended September 30,				Nine Months Ended September 30,
		2017		2016		2017		2016
Interest income:
	Interest and fees on loans	$	63,857	$	51,598	$	179,325	$	148,055
	Taxable securities		2,288		1,107		6,649		3,614
	Nontaxable securities		729		823		2,246		2,515
	Federal funds sold		379		347		1,185		630
	Other interest and dividends		388		816		1,291		1,888
	Total interest income		67,641		54,691		190,696		156,702
Interest expense:
	Deposits		7,574		5,358		19,877		14,352
	Borrowed funds		1,671		1,415		4,804		4,362
	Total interest expense		9,245		6,773		24,681		18,714
	Net interest income		58,396		47,918		166,015		137,988
Provision for loan losses			4,803		3,464		14,170		9,323
	Net interest income after provision for loan losses		53,593		44,454		151,845		128,665
Non-interest income:
	Service charges on deposit accounts		1,467		1,367		4,203		3,980
	Mortgage banking		978		1,112		2,941		2,681
	Credit card income		1,149		1,114		3,517		2,159
	Securities gains (losses)		-		-		-		(3	)
	Increase in cash surrender value life insurance		825		770		2,334		2,049
	Other operating income		371		428		1,146		1,207
	Total non-interest income		4,790		4,791		14,141		12,073
Non-interest expense:
	Salaries and employee benefits		12,428		10,958		36,172		32,758
	Equipment and occupancy expense		1,947		2,100		6,452		6,108
	Professional services		805		1,182		2,384		2,919
	FDIC and other regulatory assessments		810		775		2,888		2,328
	Other real estate owned expense		31		178		163		668
	Other operating expense		5,476		4,969		16,580		14,175
	Total non-interest expense		21,497		20,162		64,639		58,956
	Income before income tax		36,886		29,083		101,347		81,782
Provision for income tax			11,627		8,174		29,405		22,041
	Net income		25,259		20,909		71,942		59,741
	Dividends on preferred stock		-		-		31		23
	Net income available to common stockholders	$	25,259	$	20,909	$	71,911	$	59,718
Basic earnings per common share		$	0.48	$	0.40	$	1.36	$	1.14
Diluted earnings per common share		$	0.47	$	0.39	$	1.33	$	1.12

LOANS BY TYPE (UNAUDITED)
(In thousands)

		3rd Quarter 2017		2nd Quarter 2017		1st Quarter 2017		4th Quarter 2016		3rd Quarter 2016
Commercial, financial and agricultural		$	2,223,910	$	2,123,498	$	2,061,503	$	1,982,267	$	1,885,315
Real estate - construction			467,838		395,398		345,777		335,085		292,721
Real estate - mortgage:
	Owner-occupied commercial		1,323,383		1,272,659		1,262,578		1,171,719		1,138,308
	1-4 family mortgage		593,180		565,121		554,261		536,805		520,394
	Other mortgage		962,690		931,788		872,955		830,683		740,127
Subtotal: Real estate - mortgage			2,879,253		2,769,568		2,689,794		2,539,207		2,398,829
Consumer			57,764		55,224		54,910		55,211		54,957
Total loans		$	5,628,765	$	5,343,688	$	5,151,984	$	4,911,770	$	4,631,822

SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)
(Dollars in thousands)
			3rd Quarter 2017				2nd Quarter 2017				1st Quarter 2017				4th Quarter 2016			3rd Quarter 2016
Allowance for loan losses:
Beginning balance			$	55,059			$	53,892			$	51,893			$	48,933		$	46,998
Loans charged off:
	Commercial, financial and agricultural			924				3,067				2,855				1,059			1,270
	Real estate - construction			16				40				-				-			79
	Real estate - mortgage			550				106				266				45			144
	Consumer			65				33				75				82			81
		Total charge offs		1,555				3,246				3,196				1,186			1,574
Recoveries:
	Commercial, financial and agricultural			67				16				190				10			35
	Real estate - construction			12				14				16				12			9
	Real estate - mortgage			59				2				2				46			1
	Consumer			14				-				1				3			-
		Total recoveries		152				32				209				71			45
	Net charge-offs			1,403				3,214				2,987				1,115			1,529
	Provision for loan losses			4,803				4,381				4,986				4,075			3,464
	Ending balance		$	58,459			$	55,059			$	53,892			$	51,893		$	48,933

	Allowance for loan losses to total loans			1.04		%		1.03		%		1.05		%		1.06	%		1.05		%
	Allowance for loan losses to total average
		loans		1.07		%		1.05		%		1.08		%		1.10	%		1.07		%
	Net charge-offs to total average loans			0.10		%		0.25		%		0.24		%		0.09	%		0.13		%
	Provision for loan losses to total average
		loans		0.35		%		0.34		%		0.40		%		0.34	%		0.30		%
	Nonperforming assets:
		Nonaccrual loans	$	12,356			$	9,963			$	12,084			$	10,624		$	6,647
		Loans 90+ days past due and accruing		2,506				1,016				16				6,263			43
		Other real estate owned and
		repossessed assets		3,888				3,891				5,102				4,988			3,035
	Total		$	18,750			$	14,870			$	17,202			$	21,875		$	9,725

	Nonperforming loans to total loans			0.26		%		0.21		%		0.23		%		0.34	%		0.14		%
	Nonperforming assets to total assets			0.28		%		0.23		%		0.27		%		0.34	%		0.16		%
	Nonperforming assets to earning assets			0.29		%		0.24		%		0.28		%		0.35	%		0.16		%
	Reserve for loan losses to nonaccrual loans			473.12		%		552.63		%		445.98		%		488.45	%		736.17		%

	Restructured accruing loans		$	12,700			$	12,716			$	536			$	558		$	6,738

	Restructured accruing loans to total loans			0.23		%		0.24		%		0.01		%		0.01	%		0.14		%

	TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)
	(In thousands)
			3rd Quarter 2017				2nd Quarter 2017				1st Quarter 2017				4th Quarter 2016			3rd Quarter 2016
	Beginning balance:		$	16,370			$	7,269			$	7,292			$	6,738		$	6,753
		Additions		-				12,716				-				-			-
		Removal from TDR		-				(535	)			-				-			-
		Net (paydowns) / advances		(16	)			(1,380	)			(23	)			554			(15	)
		Charge-offs		-				(1,700	)			-				-			-
			$	16,354			$	16,370			$	7,269			$	7,292		$	6,738

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
		3rd Quarter 2017		2nd Quarter 2017		1st Quarter 2017		4th Quarter 2016		3rd Quarter 2016
Interest income:
	Interest and fees on loans	$	63,857	$	59,912	$	55,556	$	52,533	$	51,598
	Taxable securities		2,288		2,274		2,087		1,604		1,107
	Nontaxable securities		729		752		765		785		823
	Federal funds sold		379		287		519		377		347
	Other interest and dividends		388		313		590		901		816
	Total interest income		67,641		63,538		59,517		56,200		54,691
Interest expense:
	Deposits		7,574		6,321		5,982		5,817		5,358
	Borrowed funds		1,671		1,650		1,483		1,274		1,415
	Total interest expense		9,245		7,971		7,465		7,091		6,773
	Net interest income		58,396		55,567		52,052		49,109		47,918
Provision for loan losses			4,803		4,381		4,986		4,075		3,464
	Net interest income after provision for loan losses		53,593		51,186		47,066		45,034		44,454
Non-interest income:
	Service charges on deposit accounts		1,467		1,382		1,354		1,375		1,367
	Mortgage banking		978		1,064		899		1,044		1,112
	Credit card income		1,149		1,189		1,179		1,052		1,114
	Increase in cash surrender value life insurance		825		785		724		745		770
	Other operating income		371		385		390		1,823		428
	Total non-interest income		4,790		4,805		4,546		6,039		4,791
Non-interest expense:
	Salaries and employee benefits		12,428		12,031		11,713		11,197		10,958
	Equipment and occupancy expense		1,947		2,265		2,250		1,877		2,100
	Professional services		805		808		771		1,058		1,182
	FDIC and other regulatory assessments		810		1,081		997		1,072		775
	Other real estate owned expense		31		56		76		91		178
	Other operating expense		5,476		5,634		5,460		6,742		4,969
	Total non-interest expense		21,497		21,875		21,267		22,037		20,162
	Income before income tax		36,886		34,116		30,345		29,036		29,083
Provision for income tax			11,627		9,952		7,826		7,298		8,174
	Net income		25,259		24,164		22,519		21,738		20,909
	Dividends on preferred stock		-		31		-		24		-
	Net income available to common stockholders	$	25,259	$	24,133	$	22,519	$	21,714	$	20,909
Basic earnings per common share		$	0.48	$	0.46	$	0.43	$	0.41	$	0.40
Diluted earnings per common share		$	0.47	$	0.45	$	0.42	$	0.40	$	0.39

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


						3rd Quarter 2017				2nd Quarter 2017				1st Quarter 2017					4th Quarter 2016				3rd Quarter 2016
						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			$	5,407,109	4.66	%	$	5,192,812	4.60	%	$	4,976,933		4.50	%	$	4,676,565	4.45	%	$	4,554,900	4.47	%
			Tax-exempt (2)				33,357	5.17			41,143	4.92			27,322		4.72			26,344	4.74			21,939	4.37
				Total loans, net of
					unearned income		5,440,466	4.66			5,233,955	4.60			5,004,255		4.51			4,702,909	4.45			4,576,839	4.47
		Mortgage loans held for sale					4,862	3.51			5,958	3.90			5,637		4.10			6,271	3.36			6,724	3.79
		Debt securities:
			Taxable				385,431	2.37			389,505	2.34			368,349		2.27			295,608	2.17			224,825	2.19
			Tax-exempt (2)				131,478	3.34			133,590	3.38			132,578		3.45			134,748	3.54			135,272	3.73
				Total securities (3)			516,909	2.62			523,095	2.60			500,927		2.58			430,356	2.60			360,097	2.77
		Federal funds sold					111,175	1.35			98,598	1.17			234,460		0.90			242,211	0.62			217,158	0.64
		Restricted equity securities					1,030	3.47			1,030	10.51			1,030		1.57			3,042	8.24			5,658	4.01
		Interest-bearing balances with banks					118,510	1.27			109,909	1.04			295,648		0.80			601,143	0.55			590,675	0.51
		Total interest-earning assets				$	6,192,952	4.37	%	$	5,972,545	4.30	%	$	6,041,957		4.03	%	$	5,985,932	3.77	%	$	5,757,151	3.81	%
Non-interest-earning assets:
		Cash and due from banks					65,457				68,894				59,697					55,593				58,809
		Net premises and equipment					54,727				49,813				44,739					30,421				25,000
		Allowance for loan losses, accrued
			interest and other assets				151,786				143,286				138,289					140,721				145,804
				Total assets		$	6,464,922			$	6,234,538			$	6,284,682				$	6,212,667			$	5,986,764

Interest-bearing liabilities:
		Interest-bearing deposits:
		Checking				$	800,437	0.42	%	$	779,916	0.39	%	$	789,273		0.38	%	$	735,115	0.37	%	$	696,100	0.37	%
		Savings					48,313	0.30			48,150	0.30			50,461		0.33			51,845	0.32			43,569	0.30
		Money market					2,774,061	0.74			2,567,817	0.64			2,694,225		0.58			2,669,513	0.56			2,471,829	0.55
		Time deposits					546,020	1.10			537,220	1.06			530,000		1.02			527,100	1.00			519,653	0.99
			Total interest-bearing deposits				4,168,831	0.72			3,933,103	0.64			4,063,959		0.60			3,983,573	0.58			3,731,151	0.57
		Federal funds purchased					282,806	1.34			336,344	1.11			359,747		0.86			353,029	0.63			436,415	0.64
		Other borrowings					55,034	5.17			55,130	5.22			55,239		5.26			55,315	5.16			55,410	5.15
		Total interest-bearing liabilities				$	4,506,671	0.81	%	$	4,324,577	0.74	%	$	4,478,945		0.68	%	$	4,391,917	0.64	%	$	4,222,976	0.64	%
Non-interest-bearing liabilities:
		Non-interest-bearing
			demand				1,363,207				1,338,514				1,254,496					1,289,448				1,250,139
		Other liabilities					15,070				13,739				16,809					14,399				14,376
		Stockholders' equity					578,626				556,521				535,232					514,245				494,248
		Unrealized gains on securities and
			derivatives				1,348				1,187				(800	)				2,658				5,025
				Total liabilities and
					stockholders' equity	$	6,464,922			$	6,234,538			$	6,284,682				$	6,212,667			$	5,986,764
Net interest spread								3.56	%			3.56	%				3.35	%			3.13	%			3.17	%
Net interest margin								3.77	%			3.77	%				3.53	%			3.30	%			3.35	%

(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	)	Average net unrealized gains or losses on available-for-sale debt securities are excluded from the yield calculation.