27.SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED)

Presented below is a summary of the consolidated quarterly financial data for the years ended December 31, 2019 and 2018.


	2019
	Fourth		Third		Second		First
(dollars in thousands, except per share data)	Quarter		Quarter		Quarter		Quarter (1)

Interest income	$	64,527	$	68,059	$	65,664	$	82,633
Interest expense		10,132		12,573		11,718		10,334
Net interest income		54,395		55,486		53,946		72,299
Provision for loan and lease losses (2)		914		3,153		4,460		17,231
Net interest income after provision		53,481		52,333		49,486		55,068
Noninterest income (3)		19,655		12,811		15,125		27,417
Noninterest expense (4)		40,835		42,411		43,428		45,509
Income before income taxes		32,301		22,733		21,183		36,976
Income tax expense (5)		6,533		4,325		3,176		7,460
Net income	$	25,768	$	18,408	$	18,007	$	29,516

Basic earnings per share:
Class A Common Stock	$	1.23	$	0.88	$	0.86	$	1.42
Class B Common Stock		1.13		0.80		0.79		1.29

Diluted earnings per share:
Class A Common Stock	$	1.23	$	0.88	$	0.86	$	1.41
Class B Common Stock		1.12		0.80		0.78		1.28

Dividends declared per common share:
Class A Common Stock	$	0.264	$	0.264	$	0.264	$	0.264
Class B Common Stock		0.240		0.240		0.240		0.240


	2018
	Fourth		Third		Second		First
(dollars in thousands, except per share data)	Quarter		Quarter		Quarter		Quarter(1)

Interest income	$	62,902	$	61,090	$	58,356	$	73,833
Interest expense		8,626		8,057		7,272		6,168
Net interest income		54,276		53,033		51,084		67,665
Provision for loan and lease losses(2)		5,104		4,077		4,932		17,255
Net interest income after provision		49,172		48,956		46,152		50,410
Noninterest income		10,119		11,465		14,296		27,545
Noninterest expense (4)		38,963		41,212		40,632		43,045
Income before income taxes		20,328		19,209		19,816		34,910
Income tax expense (5)		3,022		1,798		4,150		7,441
Net income	$	17,306	$	17,411	$	15,666	$	27,469

Basic earnings per share:
Class A Common Stock	$	0.83	$	0.84	$	0.75	$	1.32
Class B Common Stock		0.76		0.76		0.68		1.21

Diluted earnings per share:
Class A Common Stock	$	0.83	$	0.83	$	0.74	$	1.32
Class B Common Stock		0.75		0.76		0.68		1.20

Dividends declared per common share:
Class A Common Stock	$	0.242	$	0.242	$	0.242	$	0.242
Class B Common Stock		0.220		0.220		0.220		0.220

(1)

The first quarters of 2019 and 2018 were significantly impacted by the TRS segment of RPG.

(2)

Provision expense:

The relatively low Provision expense during the fourth quarter of 2019 is partially attributable to the release of $900,000 in reserves associated with divested loans upon final settlement of the Bank’s branch divestiture. See Footnote 26 in this section of the filing for additional information on the Company’s branch divestiture.

The relatively higher levels of Provision expense during the first quarters of 2019 and 2018 were driven by the TRS segment’s EA product. Provision expense for EAs during the first quarters of 2019 and 2018 was $13.4 million and $13.2 million.

(3)

Noninterest income:

The fourth quarter of 2019 included a $7.9 million net gain on the final settlement of the Bank’s branch divestiture. See Footnote 26 in this section of the filing for additional information on the Company’s branch divestiture.

(4)

Noninterest expense:

During the fourth quarters of 2019 and 2018, the Company reversed $1.2 million and $2.8 million of incentive compensation accruals based on revised payout estimates.

(5)

See Footnote 19 in this section of the filing for more information on the Company’s income taxes for 2019 and 2018.