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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Interest income:        
Loans $ 43,165 $ 39,831 $ 127,766 $ 117,962
Taxable investment securities 26 36 81 314
Tax-exempt investment securities 4,167 6,331 11,812 19,065
Mortgage-backed securities 12,569 10,086 38,289 31,190
Federal Home Loan Bank stock and equity investments 422 377 1,217 1,202
Other interest earning assets 206 491 1,089 1,410
Total interest income 60,555 57,152 180,254 171,143
Interest expense:        
Deposits 11,366 9,497 34,064 25,529
Federal Home Loan Bank borrowings 4,647 3,108 13,003 9,747
Subordinated notes 1,425 1,423 4,235 4,228
Trust preferred subordinated debentures 685 684 2,132 1,911
Other borrowings 59 30 191 74
Total interest expense 18,182 14,742 53,625 41,489
Net interest income 42,373 42,410 126,629 129,654
Provision for loan losses [1] 1,005 975 2,593 5,991
Net interest income after provision for loan losses 41,368 41,435 124,036 123,663
Noninterest income:        
Deposit services 6,753 6,317 19,391 18,757
Net gain (loss) on sale of securities available for sale 42 (741) 714 (1,900)
Gain on sale of loans 131 303 405 591
Trust fees 1,523 1,568 4,584 5,259
Bank owned life insurance 622 552 1,725 2,369
Brokerage services 555 532 1,549 1,488
Other 1,485 1,491 3,535 4,075
Total noninterest income 11,111 10,022 31,903 30,639
Noninterest expense:        
Salaries and employee benefits 18,388 17,628 54,325 52,820
Net occupancy 3,430 3,396 9,894 10,339
Acquisition expense 0 437 0 2,295
Advertising, travel & entertainment 593 648 2,173 2,108
ATM expense 232 251 658 840
Professional fees 1,192 824 3,575 2,846
Software and data processing 1,116 977 3,278 2,939
Communications 480 354 1,456 1,370
FDIC insurance 0 435 859 1,416
Amortization of intangibles 1,080 1,279 3,388 3,985
Other 2,515 2,733 8,747 8,945
Total noninterest expense 29,026 28,962 88,353 89,903
Income before income tax expense 23,453 22,495 67,586 64,399
Income tax expense 3,661 2,192 10,367 7,642
Net income $ 19,792 $ 20,303 $ 57,219 $ 56,757
Earnings per common share - basic (in dollars per share) $ 0.59 $ 0.58 $ 1.70 $ 1.62
Earnings per common share - diluted (in dollars per share) 0.58 0.58 1.69 1.61
Dividends paid per common share (in dollars per share) $ 0.31 $ 0.30 $ 0.92 $ 0.88
[1]
Of the $1.0 million provision for loan losses for the three months ended September 30, 2019, $2,000 related to provision expense on PCI loans. Of the $2.6 million provision for loan losses for the nine months ended September 30, 2019, $161,000 related to provision expense reversed on PCI loans. Of the $975,000 and $6.0 million recorded in provision for loan losses for the three and nine months ended September 30, 2018, $466,000 and $824,000 related to provision expense on PCI loans, respectively.