EXHIBIT 99.1

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ServisFirst Bancshares, Inc. Announces Results for First Quarter of 2020

BIRMINGHAM, Ala., April 20, 2020 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the quarter ended March 31, 2020.

First Quarter 2020 Highlights:

Tom Broughton, Chairman, President and CEO, said, “Our current focus is on serving our client needs during the current pandemic and our team has done an outstanding job. I could not be more proud of our hard working bankers who have gone above and beyond.  They are what makes our company a standout in our industry for customer service.”

Bud Foshee, CFO, said, “We are pleased to have a strong balance sheet and solid profitability that positions us well during the current pandemic and beyond. Our return on average assets was 1.54% during the first quarter. Our pre-tax, pre-provision return on average assets was 2.49% during the first quarter, which is among the best in the banking industry.”

FINANCIAL SUMMARY (UNAUDITED)                   
(in Thousands except share and per share amounts)                
                      
    Period Ending
March 31, 2020
 Period Ending
December 31,
2019
 % Change
From Period
Ending
December 31,
2019 to Period
Ending March
31, 2020
 Period Ending
March 31, 2019
 % Change
From Period
Ending March
31, 2019 to
Period Ending
March 31,
2020
 
QUARTERLY OPERATING RESULTS                   
Net Income $34,778  $41,037  (15)% $35,010  (1)% 
Net Income Available to Common Stockholders $34,778  $41,005  (15)% $35,010  (1)% 
Diluted Earnings Per Share $0.64  $0.76  (16)% $0.65  (2)% 
Return on Average Assets  1.54%  1.80%     1.75%    
Return on Average Common Stockholders' Equity  16.23%  19.75%     19.42%    
Average Diluted Shares Outstanding  54,167,414   54,149,554      54,076,538     
                      
BALANCE SHEET                   
Total Assets $9,364,882  $8,947,653  5 % $8,310,836  13 % 
Loans  7,568,836   7,261,451  4 %  6,659,908  14 % 
Non-interest-bearing Demand Deposits  1,925,626   1,749,879  10 %  1,572,703  22 % 
Total Deposits  7,832,655   7,530,433  4 %  7,083,666  11 % 
Stockholders' Equity  881,885   842,682  5 %  745,586  18 % 
                      

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $34.8 million for the quarter ended March 31, 2020, compared to net income and net income available to common stockholders of $35.0 million for the same quarter in 2019.  Basic and diluted earnings per common share were $0.65 and $0.64, respectively, for the first quarter of 2020, compared to $0.65 and $0.65, respectively, for the first quarter of 2019.

Annualized return on average assets was 1.54% and annualized return on average common stockholders’ equity was 16.23% for the first quarter of 2020, compared to 1.75% and 19.42%, respectively, for the first quarter of 2019.

Net interest income was $77.6 million for the first quarter of 2020, compared to $75.8 million for the fourth quarter of 2019 and $68.8 million for the first quarter of 2019.  The net interest margin in the first quarter of 2020 was 3.58% compared to 3.47% in the fourth quarter of 2019 and 3.56% in the first quarter of 2019.  Linked quarter decreases in average rates paid on deposits in excess of decreases in loan yields drove a favorable rate change and increases in average balances in loans, non-interest-bearing demand deposits and equity drove favorable volume change.

Average loans for the first quarter of 2020 were $7.36 billion, an increase of $259.0 million, or 15% annualized, over average loans of $7.10 billion for the fourth quarter of 2019, and an increase of $759.7 million, or 12%, over average loans of $6.60 billion for the first quarter of 2019.

Average total deposits for the first quarter of 2020 were $7.64 billion, a decrease of $44,000,  from average total deposits of $7.68 billion for the fourth quarter of 2019, and an increase of $662.7 million, or 10%, over average total deposits of $6.98 billion for the first quarter of 2019.

Non-performing assets to total assets were 0.44% for the first quarter of 2020, a decrease of six basis points compared to 0.50% for the fourth quarter of 2019 and an increase of three basis points compared to 0.41% for the first quarter of 2019. Annualized net charge-offs to average loans were 0.26%, a 10 basis point decrease compared to 0.36% for the fourth quarter of 2019 and an increase of six basis points compared to 0.20% for the first quarter of 2019.  We recorded a $13.6 million provision for loan losses in the first quarter of 2020 compared to $5.9 million in the fourth quarter of 2019 and $4.9 million in the first quarter of 2019.  We have added a new pandemic qualitative factor to our allowance for loan loss calculation and have increased qualitative factors related to macroeconomic conditions; these changes resulted in the need for an additional loan loss provision during the quarter.  The allowance for loan loss as a percentage of total loans was 1.13% at March 31, 2020, an increase of eight basis points compared to 1.05% at December 31, 2019 and an increase of 11 basis points compared to 1.02% as of March 31, 2019.  The CARES Act, passed into law on March 27, 2020 as a result of the COVID-19 outbreak, allows companies to delay their adoption of Accounting Standards Update (ASU) 2016-13, Measurement of Credit Losses on Financial Instruments (CECL), including the current expected credit losses methodology for estimating allowances for credit losses. We have elected to delay adoption of ASU 2016-13 until the date on which the national emergency concerning the COVID-19 outbreak terminates or December 31, 2020, with an effective retrospective implementation date of January 1, 2020.  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 first quarter of 2020 increased $1.8 million, or 36%, to $6.7 million from $4.9 million in the first quarter of 2019.  Deposit service charges increased $214,000 in the first quarter of 2020, or 13%, compared to the first quarter of 2019.  Mortgage banking revenue almost doubled to $1.1 million from the first quarter of 2019 to the first quarter of 2020.  Mortgage loan sales increased approximately 96% during the first quarter of 2020 when compared to the same quarter in 2019.  Credit card revenue increased $189,000, or 12%, to $1.8 million during the first quarter of 2020, compared to $1.6 million during the first quarter of 2019. The number of credit card accounts increased approximately 43% and the aggregate amount of sales on all credit card accounts increased 29% during the first quarter of 2020.  Cash surrender value of life insurance increased $691,000, or 91%, to $1.5 million during the first quarter of 2020, compared to $762,000 during the first quarter of 2019.  We purchased $75.0 million of additional life insurance contracts during the third quarter of 2019.  Other income for the first quarter of 2020 increased $140,000, or 43%, to $469,000 from $329,000 in the first quarter of 2019. 

Non-interest expense for the first quarter of 2020 increased $2.6 million, or 10%, to $27.9 million from $25.3 million in the first quarter of 2019, and increased $2.3 million, or 9%, on a linked quarter basis.  Salary and benefit expense for the first quarter of 2020 increased $1.4 million, or 10%, to $15.7 million from $14.3 million in the first quarter of 2019, and increased $2.0 million, or 15%, on a linked quarter basis.  We adjusted accrued incentives downward by $1.0 million in December based on actual year-end production in 2019.  The number of FTE employees increased from 485 at March 31, 2019 to 492 at March 31, 2020, or 1%, and decreased by eight from the end of the fourth quarter of 2019.  Equipment and occupancy expense increased $141,000, or 6%, to $2.4 million in the first quarter of 2020, from $2.3 million in the first quarter of 2019, and decreased $61,000 on a linked-quarter basis.  Third party processing and other services expense increased $934,000, or 39%, to $3.3 million in the first quarter of 2020, from $2.4 million in the first quarter of 2019.  Professional services expense decreased $46,000, or 5%, to $948,000 in the first quarter of 2020, from $994,000 in the first quarter of 2019, and decreased $215,000 on a linked-quarter basis.  FDIC and other regulatory assessments increased $313,000 to $1.3 million in the first quarter of 2020, from $1.0 million in the first quarter of 2019.  Growth in our assessment base was partially offset by a decrease in our assessment rate.  Expenses associated with other real estate owned increased $579,000 to $601,000 in the first quarter of 2020, from $22,000 in the first quarter of 2019.  This increase was the result of write-downs in value of property based on updated appraisals related to one foreclosed loan relationship in our Nashville region.  Other operating expenses for the first quarter of 2020 decreased $722,000, or 17%, to $3.6 million from $4.4 million in the first quarter of 2019, and decreased $235,000 on a linked-quarter basis.  Write-downs in tax credit investments decreased significantly as our New Market Tax Credit partnerships terminated at the end of 2019.  Decreases in travel and entertainment expenses also contributed to the decrease in other operating expenses.  We accrued $250,000 for a pending legal matter during the first quarter of 2020.  The efficiency ratio was 33.11% during the first quarter of 2020 compared to 34.36% during the first quarter of 2019 and compared to 30.83% during the fourth quarter of 2019.

Income tax expense decreased $467,000, or 6%, to $8.0 million in the first quarter of 2020, compared to $8.5 million in the first quarter of 2019.  Our effective tax rate was 18.76% for the first quarter of 2020 compared to 19.53% for the first quarter of 2019.  We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the first quarters of 2020 and 2019 of $1.1 million and $772,000, respectively.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

During the third quarter of 2019, we recorded a $1.7 million credit to our FDIC and other regulatory assessments expense as a result of the FDIC’s Small Bank Assessment Credit.  Financial measures included in this press release that are presented adjusted for this credit are net income, net income available to common stockholders, diluted earnings per share, return on average assets and return on average common stockholders’ equity. Each of these five financial measures excludes the impact of this item, net of tax, attributable to the FDIC Small Bank Assessment Credit and are all considered non-GAAP financial measures. This press release also 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 and pre-tax, pre-provision return on average 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 tables provide 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.

   Three Months
Ended September
30, 2019
           
Net income - GAAP $149,243                   
 Adjustments:                     
 FDIC Small Bank Assessment Credit  1,669                   
 Tax on adjustment  421                   
Adjusted net income - non-GAAP $147,995                   
                       
Net income available to common stockholders - GAAP $149,180                   
 Adjustments:                     
 FDIC Small Bank Assessment Credit  1,669                   
 Tax on adjustment  421                   
Adjusted net income available to common stockholders -                     
 non-GAAP $147,932                   
                       
Diluted earnings per share - GAAP $2.76                   
 Adjustments:                     
 FDIC Small Bank Assessment Credit  (0.03)                  
 Tax on adjustment  0.01                   
Adjusted diluted earnings per share - non-GAAP $2.74                   
                       
Return on average assets - GAAP  1.73 %                 
Net income - GAAP $149,243                   
 Adjustments:                     
 FDIC Small Bank Assessment Credit  1,669                   
 Tax on adjustment  421                   
Adjusted net income - non-GAAP $147,995                   
Average assets - GAAP $8,638,604                   
Adjusted return on average assets - non-GAAP  1.71 %                 
                       
Return on average common stockholders' equity - GAAP  19.15 %                 
Net income - GAAP $149,243                   
 Adjustments:                     
 FDIC Small Bank Assessment Credit  1,669                   
 Tax on adjustment  421                   
Adjusted net income - non-GAAP $147,995                   
Average common stockholders' equity - GAAP $779,071                   
Adjusted return on average common stockholders' equity -                     
 non-GAAP  18.99 %                 
                       
   At March 31,
2020
 At December
31, 2019
 At September
30, 2019
 At June 30,
2019
 At March 31,
2019
 
Book value per share - GAAP $16.38   $15.71  $15.13  $14.55  $13.94  
Total common stockholders' equity - GAAP  881,886    842,682   810,537   778,957   745,586  
 Adjustments:                     
 Adjusted for goodwill and core deposit intangible asset  14,111    14,179   14,246   14,314   14,381  
Tangible common stockholders' equity - non-GAAP $867,775   $828,503  $796,291  $764,643  $731,205  
Tangible book value per share - non-GAAP $16.12   $15.45  $14.86  $14.29  $13.67  
                       
Stockholders' equity to total assets - GAAP  9.42 %  9.42%  9.00%  8.91%  8.97% 
Total assets - GAAP $9,364,882   $8,947,653  $9,005,112  $8,740,237  $8,310,836  
 Adjustments:                     
 Adjusted for goodwill and core deposit intangible asset  14,111    14,179   14,246   14,314   14,381  
Total tangible assets - non-GAAP $9,350,771   $8,933,474  $8,990,866  $8,725,923  $8,296,455  
Tangible common equity to total tangible assets - non-GAAP  9.28 %  9.27%  8.86%  8.76%  8.81% 
                       
Return on average assets - GAAP  1.54 %                 
Net income $34,778                   
 Adjustments:                     
 Provision for loan losses  13,584                   
 Provision for income taxes  8,032                   
Net income before provision for loan losses and provision                     
 for income taxes $56,394                   
Pre-tax, Pre-Provision return on average assets - non-GAAP  2.49 %                 

About ServisFirst Bancshares, Inc.

ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Birmingham, Huntsville, Montgomery, Mobile and Dothan, Alabama, Pensacola, Sarasota and Tampa Bay, Florida, Atlanta, Georgia, Charleston, South Carolina and Nashville, Tennessee.

ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC).  Copies of its filings may be obtained through the 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: the global health and economic crisis precipitated by the COVID-19 outbreak; general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes in our loan portfolio and the deposit base; economic crises and associated credit issues in industries most impacted by the COVID-19 outbreak, including the restaurant, hospitality and retail sectors; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic stimulus initiatives; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; and increased competition from both banks and non-bank financial institutions.  The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K 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)                     
  1st Quarter 2020 4th Quarter 2019 3rd Quarter 2019 2nd Quarter 2019 1st Quarter 2019 
CONSOLIDATED STATEMENT OF INCOME                     
Interest income $96,767  $98,187  $101,130  $97,787  $93,699  
Interest expense  19,127   22,410   28,125   27,702   24,921  
Net interest income  77,640   75,777   73,005   70,085   68,778  
Provision for loan losses  13,584   5,884   6,985   4,884   4,885  
Net interest income after provision for loan losses  64,056   69,893   66,020   65,201   63,893  
Non-interest income  6,674   6,936   6,202   5,778   4,944  
Non-interest expense  27,920   25,503   25,153   26,022   25,328  
Income before income tax  42,810   51,326   47,069   44,957   43,509  
Provision for income tax  8,032   10,289   9,506   9,324   8,499  
Net income  34,778   41,037   37,563   35,633   35,010  
Preferred stock dividends  -   32   -   31   -  
Net income available to common stockholders $34,778  $41,005  $37,563  $35,602  $35,010  
Earnings per share - basic $0.65  $0.76  $0.70  $0.66  $0.65  
Earnings per share - diluted $0.64  $0.76  $0.69  $0.66  $0.65  
Average diluted shares outstanding  54,167,414   54,149,554   54,096,368   54,089,107   54,076,538  
                      
CONSOLIDATED BALANCE SHEET DATA                     
Total assets $9,364,882  $8,947,653  $9,005,112  $8,740,237  $8,310,836  
Loans  7,568,836   7,261,451   7,022,069   6,967,886   6,659,908  
Debt securities  827,032   759,649   688,271   658,221   631,946  
Non-interest-bearing demand deposits  1,925,626   1,749,879   1,678,672   1,576,959   1,572,703  
Total deposits  7,832,655   7,530,433   7,724,158   7,404,794   7,083,666  
Borrowings  64,707   64,703   64,693   64,684   64,675  
Stockholders' equity $881,885  $842,682  $810,537  $778,957  $745,586  
                      
Shares outstanding  53,844,009   53,623,740   53,579,013   53,526,882   53,495,208  
Book value per share $16.38  $15.71  $15.13  $14.55  $13.94  
Tangible book value per share (1) $16.12  $15.45  $14.86  $14.29  $13.67  
                      
SELECTED FINANCIAL RATIOS (Annualized)                     
Net interest margin  3.58%  3.47%  3.36%  3.44%  3.56% 
Return on average assets  1.54%  1.80%  1.67%  1.69%  1.75% 
Return on average common stockholders' equity  16.23%  19.75%  18.69%  18.72%  19.42% 
Efficiency ratio  33.11%  30.83%  31.76%  34.30%  34.36% 
Non-interest expense to average earning assets  1.29%  1.17%  1.16%  1.28%  1.31% 
                      
CAPITAL RATIOS (2)                     
Common equity tier 1 capital to risk-weighted assets  10.68%  10.50%  10.39%  10.18%  10.30% 
Tier 1 capital to risk-weighted assets  10.68%  10.50%  10.39%  10.19%  10.30% 
Total capital to risk-weighted assets  12.54%  12.31%  12.27%  12.02%  12.21% 
Tier 1 capital to average assets  9.56%  9.13%  8.88%  9.00%  9.03% 
Tangible common equity to total tangible assets (1)  9.28%  9.27%  8.86%  8.76%  8.81% 
                      
(1) See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for a discussion of these Non-GAAP financial measures. 
(2) Regulatory capital ratios for most recent period are preliminary. 


CONSOLIDATED BALANCE SHEETS (UNAUDITED)          
(Dollars in thousands)          
    March 31,
2020
 March 31,
2019
 % Change 
ASSETS          
Cash and due from banks $80,461  $71,058  13 % 
Interest-bearing balances due from depository institutions  297,943   547,036  (46)% 
Federal funds sold  306,127   181,435  69 % 
 Cash and cash equivalents  684,531   799,529  (14)% 
Available for sale debt securities, at fair value  826,782   631,696  31 % 
Held to maturity debt securities (fair value of $250 at March 31, 2020 and 2019)  250   250  -   
Mortgage loans held for sale  6,747   1,223  452 % 
Loans  7,568,836   6,659,908  14 % 
Less allowance for loan losses  (85,414)  (70,207) 22 % 
 Loans, net  7,483,422   6,589,701  14 % 
Premises and equipment, net  55,992   57,664  (3)% 
Goodwill and other identifiable intangible assets  14,111   14,381  (2)% 
Other assets  293,047   216,392  35 % 
 Total assets $9,364,882  $8,310,836  13 % 
LIABILITIES AND STOCKHOLDERS' EQUITY          
Liabilities:          
Deposits:          
 Non-interest-bearing $1,925,626  $1,572,703  22 % 
 Interest-bearing  5,907,029   5,510,963  7 % 
  Total deposits  7,832,655   7,083,666  11 % 
Federal funds purchased  543,623   373,378  46 % 
Other borrowings  64,707   64,675  - % 
Other liabilities  42,012   43,531  (3)% 
 Total liabilities  8,482,997   7,565,250  12 % 
Stockholders' equity:          
 Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at          
  March 31, 2020 and March 31, 2019  -   -     
 Common stock, par value $0.001 per share; 100,000,000 shares authorized; 53,844,009 shares          
  issued and outstanding at March 31, 2020, and 53,495,208 shares issued and outstanding          
  at March 31, 2019  54   54  - % 
 Additional paid-in capital  221,901   218,147  2 % 
 Retained earnings  641,980   527,853  22 % 
 Accumulated other comprehensive income (loss)  17,448   (969) NM   
  Total stockholders' equity attributable to ServisFirst Bancshares, Inc.  881,383   745,084  18 % 
 Noncontrolling interest  502   502  - % 
  Total stockholders' equity  881,885   745,586  18 % 
 Total liabilities and stockholders' equity $9,364,882  $8,310,836  13 % 
               


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)   
(In thousands except per share data)      
    Three Months Ended March 31,
    2020 2019
Interest income:      
 Interest and fees on loans $89,385 $85,524
 Taxable securities  5,154  3,746
 Nontaxable securities  233  446
 Federal funds sold  277  1,219
 Other interest and dividends  1,718  2,764
 Total interest income  96,767  93,699
Interest expense:      
 Deposits  16,745  22,145
 Borrowed funds  2,382  2,776
 Total interest expense  19,127  24,921
 Net interest income  77,640  68,778
Provision for loan losses  13,584  4,885
 Net interest income after provision for loan losses  64,056  63,893
Non-interest income:      
 Service charges on deposit accounts  1,916  1,702
 Mortgage banking  1,071  575
 Credit card income  1,765  1,576
 Increase in cash surrender value life insurance  1,453  762
 Other operating income  469  329
 Total non-interest income  6,674  4,944
Non-interest expense:      
 Salaries and employee benefits  15,658  14,265
 Equipment and occupancy expense  2,400  2,259
 Third party processing and other services  3,345  2,411
 Professional services  948  994
 FDIC and other regulatory assessments  1,332  1,019
 Other real estate owned expense  601  22
 Other operating expense  3,636  4,358
 Total non-interest expense  27,920  25,328
 Income before income tax  42,810  43,509
Provision for income tax  8,032  8,499
 Net income  34,778  35,010
 Dividends on preferred stock  -  -
 Net income available to common stockholders $34,778 $35,010
Basic earnings per common share $0.65 $0.65
Diluted earnings per common share $0.64 $0.65


LOANS BY TYPE (UNAUDITED)               
(In thousands)               
                 
   1st Quarter 2020 4th Quarter 2019 3rd Quarter 2019 2nd Quarter 2019 1st Quarter 2019
Commercial, financial and agricultural $2,771,307 $2,696,210 $2,653,934 $2,633,529 $2,522,136
Real estate - construction  548,578  521,392  550,871  603,779  556,219
Real estate - mortgage:               
 Owner-occupied commercial  1,678,532  1,587,478  1,526,911  1,538,279  1,500,595
 1-4 family mortgage  675,870  644,188  632,346  630,963  629,285
 Other mortgage  1,834,137  1,747,394  1,592,072  1,496,512  1,394,611
Subtotal: Real estate - mortgage  4,188,539  3,979,060  3,751,329  3,665,754  3,524,491
Consumer  60,412  64,789  65,935  64,824  57,062
Total loans $7,568,836 $7,261,451 $7,022,069 $6,967,886 $6,659,908
                


SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)                  
(Dollars in thousands)                  
     1st Quarter 2020 4th Quarter 2019 3rd Quarter
2019
 2nd Quarter
2019
 1st Quarter 2019 
Allowance for loan losses:                     
Beginning balance $76,584  $77,192  $71,386  $70,207  $68,600  
Loans charged off:                     
 Commercial financial and agricultural  2,640   4,742   3,626   3,610   3,037  
 Real estate - construction  454   -   -   -   -  
 Real estate - mortgage  1,678   1,689   4,974   169   50  
 Consumer  58   139   172   63   218  
  Total charge offs  4,830   6,570   8,772   3,842   3,305  
Recoveries:                     
 Commercial financial and agricultural  62   51   126   117   12  
 Real estate - construction  1   1   1   -   1  
 Real estate - mortgage  1   2   -   4   7  
 Consumer  12   24   60   16   7  
  Total recoveries  76   78   187   137   27  
 Net charge-offs  4,754   6,492   8,585   3,705   3,278  
 Allocation from Loan Guarantee Program  -   -   7,406   -   -  
 Provision for loan losses  13,584   5,884   6,985   4,884   4,885  
 Ending balance $85,414  $76,584  $77,192  $71,386  $70,207  
                         
 Allowance for loan losses to total loans  1.13%  1.05%  1.10%  1.02%  1.05% 
 Allowance for loan losses to total average                     
  loans  1.16%  1.08%  1.11%  1.05%  1.06% 
 Net charge-offs to total average loans  0.26%  0.36%  0.49%  0.22%  0.20% 
 Provision for loan losses to total average                     
  loans  0.74%  0.33%  0.40%  0.29%  0.30% 
 Nonperforming assets:                     
  Nonaccrual loans $28,914  $30,091  $35,732  $21,840  $22,154  
  Loans 90+ days past due and accruing  4,954   6,021   5,317   10,299   5,021  
  Other real estate owned and                     
  repossessed assets  7,448   8,178   5,337   5,649   5,480  
 Total $41,316  $44,290  $46,386  $37,788  $32,655  
                         
 Nonperforming loans to total loans  0.45%  0.50%  0.58%  0.46%  0.41% 
 Nonperforming assets to total assets  0.44%  0.50%  0.52%  0.43%  0.39% 
 Nonperforming assets to earning assets  0.45%  0.50%  0.53%  0.44%  0.40% 
 Reserve for loan losses to nonaccrual loans  295.41%  254.51%  216.03%  326.86%  316.90% 
                         
 Restructured accruing loans $975  $625  $3,468  $2,742  $2,742  
                         
 Restructured accruing loans to total loans  0.01%  0.01%  0.05%  0.04%  0.04% 
                         
 TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)              
 (In thousands)                 
     1st Quarter 2020 4th Quarter 2019 3rd Quarter
2019
 2nd Quarter
2019
 1st Quarter 2019 
 Beginning balance: $3,330  $11,248  $11,284  $12,289  $14,555  
  Additions  350   250   -   -   -  
  Net (paydowns) / advances  (232)  (3,481)  714   (12)  (766) 
  Charge-offs  (1,081)  (1,333)  (750)  (993)  (1,500) 
  Transfer to OREO  -   (3,354)  -   -   -  
     $2,367  $3,330  $11,248  $11,284  $12,289  
                         


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)          
(In thousands except per share data)          
    1st Quarter
2020
 4th Quarter
2019
 3rd Quarter
2019
 2nd Quarter
2019
 1st Quarter
2019
 
Interest income:                
 Interest and fees on loans $89,385 $89,407  $90,767  $88,610  $85,524 
 Taxable securities  5,154  4,702   4,367   4,193   3,746 
 Nontaxable securities  233  274   316   393   446 
 Federal funds sold  277  1,053   1,768   1,998   1,219 
 Other interest and dividends  1,718  2,751   3,912   2,593   2,764 
 Total interest income  96,767  98,187   101,130   97,787   93,699 
Interest expense:                
 Deposits  16,745  19,786   24,787   24,240   22,145 
 Borrowed funds  2,382  2,624   3,338   3,462   2,776 
 Total interest expense  19,127  22,410   28,125   27,702   24,921 
 Net interest income  77,640  75,777   73,005   70,085   68,778 
Provision for loan losses  13,584  5,884   6,985   4,884   4,885 
 Net interest income after provision for loan losses  64,056  69,893   66,020   65,201   63,893 
Non-interest income:                
 Service charges on deposit accounts  1,916  1,806   1,735   1,786   1,702 
 Mortgage banking  1,071  1,366   1,333   1,087   575 
 Credit card income  1,765  1,891   1,868   1,741   1,576 
 Securities (losses) gains  -  (1)  34   (6)  - 
 Increase in cash surrender value life insurance  1,453  1,419   787   778   762 
 Other operating income  469  455   445   392   329 
 Total non-interest income  6,674  6,936   6,202   5,778   4,944 
Non-interest expense:                
 Salaries and employee benefits  15,658  13,680   15,499   14,339   14,265 
 Equipment and occupancy expense  2,400  2,339   2,387   2,287   2,259 
 Third party processing and other services  3,345  3,176   2,923   2,724   2,411 
 Professional services  948  1,163   887   1,191   994 
 FDIC and other regulatory assessments (credits)  1,332  1,171   (296)  1,081   1,019 
 Other real estate owned expense  601  103   78   212   22 
 Other operating expense  3,636  3,871   3,675   4,188   4,358 
 Total non-interest expense  27,920  25,503   25,153   26,022   25,328 
 Income before income tax  42,810  51,326   47,069   44,957   43,509 
Provision for income tax  8,032  10,289   9,506   9,324   8,499 
 Net income  34,778  41,037   37,563   35,633   35,010 
 Dividends on preferred stock  -  32   -   31   - 
 Net income available to common stockholders $34,778 $41,005  $37,563  $35,602  $35,010 
Basic earnings per common share $0.65 $0.77  $0.70  $0.67  $0.65 
Diluted earnings per common share $0.64 $0.76  $0.69  $0.66  $0.65 


AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) 
ON A FULLY TAXABLE-EQUIVALENT BASIS 
(Dollars in thousands) 
                                    
      1st Quarter 2020 4th Quarter 2019 3rd Quarter 2019 2nd Quarter 2019 1st Quarter 2019 
      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 $7,328,594 4.89% $7,066,576 5.00% $6,927,075 5.18% $6,756,927  5.24% $6,570,920  5.26% 
  Tax-exempt (2)  32,555 4.04   35,563 4.00   34,195 3.98   32,124  3.83   30,577  3.81  
   Total loans, net of                               
    unearned income  7,361,149 4.88   7,102,139 4.99   6,961,270 5.17   6,789,051  5.23   6,601,497  5.25  
 Mortgage loans held for sale  4,282 2.16   6,505 2.44   6,482 2.45   5,208  3.85   1,614  6.53  
 Debt securities:                               
  Taxable  750,413 2.75   670,732 2.81   595,405 2.93   565,491  2.97   518,955  2.89  
  Tax-exempt (2)  44,029 2.33   50,825 2.17   59,992 2.21   77,364  2.10   87,537  2.12  
   Total securities (3)  794,442 2.72   721,557 2.76   655,397 2.87   642,855  2.86   606,492  2.78  
 Federal funds sold  105,423 1.06   238,927 1.75   312,968 2.24   323,714  2.48   192,690  2.57  
 Interest-bearing balances with banks  469,199 1.47   602,755 1.81   690,973 2.25   411,481  2.53   438,099  2.56  
 Total interest-earning assets $8,734,495 4.46% $8,671,883 4.49% $8,627,090 4.65% $8,172,309  4.80% $7,840,392  4.85% 
Non-interest-earning assets:                               
 Cash and due from banks  66,140     70,381     71,418     76,988      74,430     
 Net premises and equipment  58,066     57,986     58,243     58,607      58,852     
 Allowance for loan losses, accrued                               
  interest and other assets  241,479     233,885     162,654     156,264      149,941     
   Total assets $9,100,180    $9,034,135    $8,919,405    $8,464,168     $8,123,615     
                                    
Interest-bearing liabilities:                               
 Interest-bearing deposits:                               
 Checking $956,803 0.57% $961,258 0.69% $900,754 0.84% $909,847  0.88% $942,686  0.86% 
 Savings  67,380 0.50   62,311 0.53   57,431 0.60   54,391  0.57   54,086  0.55  
 Money market  4,061,286 1.10   4,189,283 1.34   4,265,435 1.76   3,932,459  1.88   3,758,162  1.78  
 Time deposits  805,924 2.09   712,155 2.15   703,278 2.20   694,414  2.16   698,976  2.06  
  Total interest-bearing deposits  5,891,393 1.14   5,925,007 1.32   5,926,898 1.66   5,591,111  1.74   5,453,910  1.65  
 Federal funds purchased  492,638 1.31   420,066 1.74   441,526 2.30   418,486  2.57   312,989  2.59  
 Other borrowings  64,707 4.85   64,698 4.79   64,689 4.79   64,680  4.84   64,671  4.90  
 Total interest-bearing liabilities $6,448,738 1.19% $6,409,771 1.39% $6,433,113 1.73% $6,074,277  1.83% $5,831,570  1.73% 
Non-interest-bearing liabilities:                               
 Non-interest-bearing                               
  demand deposits  1,749,671     1,759,671     1,654,928     1,591,722      1,524,502     
 Other liabilities  39,801     41,112     34,070     35,161      36,362     
 Stockholders' equity  853,800     818,320     792,284     763,742      735,611     
 Accumulated other comprehensive                               
  income (loss)  8,170     5,261     5,010     (734)     (4,430)    
   Total liabilities and                               
    stockholders' equity $9,100,180    $9,034,135    $8,919,405    $8,464,168     $8,123,615     
Net interest spread    3.27%    3.10%    2.92%    2.97%    3.12% 
Net interest margin    3.58%    3.47%    3.36%    3.44%    3.56% 
                                    
(1)Average loans include loans on which the accrual of interest has been discontinued. 
(2)Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%. 
(3)Unrealized losses on available-for-sale debt securities are excluded from the yield calculation.