SOURCE: Park Sterling Corporation

Park Sterling Corporation

October 27, 2016 07:00 ET

Park Sterling Corporation Announces Results for Third Quarter 2016

CHARLOTTE, NC--(Marketwired - October 27, 2016) - Park Sterling Corporation (NASDAQ: PSTB), the holding company for Park Sterling Bank, today released unaudited results of operations and other financial information for the third quarter of 2016. Highlights at and for the three months ended September 30, 2016 include:

Highlights

  • Net income of $6.3 million, or $0.12 per share, compared to $5.6 million, or $0.11 per share, in the quarter ended June 30, 2016
  • Adjusted net income, which excludes merger-related expenses and gain or loss on sale of securities, increased $869 thousand (13%) to $7.3 million, or $0.14 per share, compared to $6.4 million, or $0.12 per share, in the prior quarter
  • Noninterest income held steady following strong growth in the second quarter of 2016 with good growth in deposit service charges and mortgage banking income
  • Noninterest expenses declined 4% from the second quarter of 2016, driven in part by continued disciplined expense management and the achievement of the remaining cost savings realized from the merger with First Capital Bancorp, Inc. ("First Capital")
  • Average loans, excluding loans held for sale, showed steady growth at an 8% annualized growth rate over the second quarter of 2016.
  • Credit quality remained strong
  • Capital levels remained strong with Tier 1 leverage ratio of 10.06%
  • Completed the early termination of loss share agreements with the FDIC on August 26, 2016
  • The Board of Directors declared a quarterly cash dividend on common shares of $0.04 per share and authorized a new share repurchase program

"We are pleased with our results for the third quarter of 2016," said James C. Cherry, Chief Executive Officer. "Our priorities for 2016 have included achieving attractive earnings growth accompanied by steadily improving returns, as demonstrated by our financial performance in the quarter. We believe that Park Sterling's distinguishing strengths will enable us to achieve our original vision of building a full service, highly regarded regional community bank serving markets in the Carolinas, Virginia, and North Georgia. These distinguishing strengths include our position in high growth markets, our exceptionally talented and experienced banking professionals, our capabilities in offering high quality products and services to our customers, strong risk culture, and solid financial condition."

Financial Results

Income Statement - Three Months Ended September 30, 2016

Park Sterling reported net income of $6.3 million, or $0.12 per share, for the three months ended September 30, 2016 ("2016Q3"). This compares to net income of $5.6 million, or $0.11 per share, for the three months ended June 30, 2016 ("2016Q2") and net income of $4.8 million, or $0.11 per share, for the three months ended September 30, 2015 ("2015Q3"). The increase in net income from 2016Q2 resulted from reduced expenses across most categories of noninterest expense and lower expenses for loan losses reflecting strong credit quality. The increase in net income from 2015Q3 resulted from an increase in net interest income, partially offset by an increase in noninterest expenses, reflecting the inclusion of First Capital.

Park Sterling reported adjusted net income, which excludes merger-related expenses and gain or loss on sale of securities, of $7.3 million, or $0.14 per share, in 2016Q3. This compares to adjusted net income of $6.4 million, or $0.12 per share, in 2016Q2 and adjusted net income of $4.7 million, or $0.11 per share, in 2015Q3. Compared to 2016Q2, the increase in adjusted net income reflects lower noninterest expense and a lower provision for loan losses; compared to 2015Q3, the increase in adjusted net income reflects higher net interest income and noninterest income, partially offset by increased noninterest expense.

Net interest income totaled $25.8 million in 2016Q3, which represents a $227 thousand, or 1%, decrease from $26.1 million in 2016Q2 and a $5.8 million, or 27%, increase from $20.4 million in 2015Q3. Average total earning assets increased $57.0 million in 2016Q3 to $2.90 billion, compared to $2.84 billion in 2016Q2 and increased $643.9 million, or 29%, compared to $2.26 billion in 2015Q3. The increase in average total earning assets in 2016Q3 from 2016Q2 included an increase in average loans (including loans held for sale) of $49.7 million, or 2%, a decrease in average marketable securities of $.4 million, and an increase in average other interest-earning assets of $7.7 million, or 16%. The increase in average total earning assets in 2016Q3 from 2015Q3 resulted primarily from a $667.3 million, or 40%, increase in average loans (including loans held for sale) as a result of both organic growth and the merger with First Capital, partially offset by a $9.0 million, or 2%, decrease in average marketable securities and a $14.4 million, or 21%, decrease in average other earning assets.

Net interest margin was 3.54% in 2016Q3, representing a 15 basis point decrease from 3.69% in 2016Q2 and a 4 basis point decrease from 3.58% in 2015Q3. The decrease in net interest margin from 2016Q2 resulted primarily from a 19 basis point decrease in yield on loans to 4.49%, as the yield on loans in 2016Q2 included a higher level of accretion of the acquired performing fair value mark related to the acquisition of First Capital loans, as well as accretion tied to acquired loans related to other mergers. In addition, the cost of interest-bearing liabilities decreased 2 basis points from 2016Q2 due to a reduction in the cost of wholesale funding sources and a modest decline in the cost of money market deposits. The reduction in net interest margin from 2015Q3 was significantly impacted by the merger with First Capital which was completed on January 1, 2016. The change was primarily driven by higher rates on interest bearing deposits and the cost associated with the $30 million senior term loan that was used to partially fund the merger, offset in part by the addition of higher yielding earning assets as a result of the merger.

The Company reported $642,000 of provision expense in 2016Q3, compared to $882,000 of provision recorded in 2016Q2, and no provision in 2015Q3. Allowance for loan loss levels increased to 0.49% of total loans at 2016Q3 compared to 0.47% at 2016Q2.

Noninterest income totaled $5.4 million in 2016Q3, compared to $5.4 million in 2016Q2 and increased $520 thousand, or 11%, compared to $4.9 million in 2015Q3. Compared to 2016Q2, service charges on deposit accounts and mortgage banking income increased by $143 thousand and $142 thousand, respectively, while income from wealth management activities and FDIC loss share indemnification asset and true up liability expense was lower by $124 thousand and $114 thousand respectively. The increase in noninterest income from 2015Q3 reflects higher capital markets income, mortgage banking income and higher service charges on deposit accounts. Offsetting these increases from 2015Q3 are lower wealth management income and income from bank owned life insurance.

Noninterest expenses decreased $834 thousand, or 4%, to $21.1 million in 2016Q3 compared to $21.9 million in 2016Q2, and increased $2.7 million, or 15%, compared to $18.4 million in 2015Q3. Adjusted noninterest expenses, which exclude merger-related expenses ($1.5 million in 2016Q3, $1.3 million in 2016Q2 and $31 thousand in 2015Q3), decreased $1.1 million, or 5%, to $19.6 million in 2016Q3 compared to $20.7 million in 2016Q2, and increased $1.2 million, or 7%, compared to $18.4 million in 2015Q3. The decrease in adjusted noninterest expenses from 2016Q2 was due primarily to decreases of $322 thousand in salaries and employee benefits, $243 thousand in advertising and promotion and $409 thousand in other noninterest expense. The other notable decrease was a $162 thousand decrease in the net cost of operation of OREO, which was caused primarily by the termination of the FDIC loss share agreements. Offsetting these decreases was a $156 thousand increase in loan and collection expense, reflecting in part the termination of the FDIC loss share agreements, and modest increases in occupancy and equipment, legal and professional fees and communication fees. The increase in adjusted noninterest expenses from 2015Q3 is primarily a function of the merger with First Capital.

The Company's effective tax rate was 33.5% in 2016Q3, compared to 35.4% in 2016Q2 and 30.5% in 2015Q3. The decline in the effective tax rate was caused by changes in the proportion of permanent tax differences to pretax income.

Balance Sheet

Total assets increased $52.9 million, or 2%, to $3.2 billion at 2016Q3, as compared to total assets of $3.2 billion at 2016Q2. Total securities, including non-marketable securities, increased $11.0 million, to $520.7 million. Total loans, excluding loans held for sale, increased $42.1 million, or 7% annualized, to $2.4 billion at 2016Q3.

The mix of commercial and consumer loans remained consistent with 2016Q2. Total commercial loans increased $36.8 million and represent 78% of the loan portfolio. Acquisition, construction and development loans increased $38.6 million and represent 15% of the portfolio. Total consumer loans increased $42.9 million and remain flat as a percentage of total loans at 22% of the portfolio.

Total deposits increased $10.9 million, or 2% annualized, to $2.5 billion at 2016Q3. Noninterest bearing demand deposits increased $9.4 million, or 8% annualized, to $505.6 million (20% of total deposits). Money market, NOW and savings deposits were level with 2016Q2 and represent 49% of total deposits. Time deposits increased $1.8 million to $750.0 million at 2016Q3.

Total borrowings increased $45.2 million, or 15%, to $343.1 million at 2016Q3 compared to $297.8 million at 2016Q2. At 2016Q3, FHLB borrowings totaled $280.0 million, the senior unsecured term loan at the holding company totaled $29.7 million, and acquired trust preferred securities, net of acquisition accounting fair value marks, totaled $33.3 million. Short term FHLB borrowings increased by $80.0 million from 2016Q2 to $280.0 million due to $35 million of long term debt being reclassified as short term debt, as the maturity date of these borrowings at 2016Q3 was less than one year to maturity, with the remainder of the increase funding balance sheet growth during the period.

Total shareholders' equity increased $4.2 million, or 1%, to $358.7 million at 2016Q3 compared to $354.5 million at 2016Q2, driven by an increase in retained earnings. The Company's ratio of common equity to assets was 11.12% at 2016Q3 compared to 11.17% at 2016Q2. The Company's ratio of tangible common equity to tangible assets remained at 9.00% at both 2016Q3 and 2016Q2. The Company's Common Equity Tier 1 ("CET1") ratio decreased to 11.07% at 2016Q3 compared to 11.14% at 2016Q2 due to an increase in risk weighted assets. The Company's Tier 1 leverage ratio was 10.06% at both 2016Q3 and 2016Q2.

Asset Quality

Asset quality continues to remain strong. Nonperforming assets were $14.2 million at 2016Q3, or 0.44% of total assets, compared to $11.0 million at 2016Q2, or 0.35% of total assets. Nonperforming loans were $11.5 million at 2016Q3, and represented 0.48% of total loans, compared to $7.8 million at 2016Q2, or 0.33% of total loans. The increase in nonperforming loans reflects the addition of two loans that are well secured and currently are not expected to result in a loss. The Company reported net recoveries of $97 thousand, or 0.02% of average loans (annualized) in 2016Q3, compared to net recoveries of $159 thousand, or 0.03% of average loans (annualized), in 2016Q2.

The allowance for loan losses increased $739 thousand, or 7%, to $11.6 million, or 0.49% of total loans, at 2016Q3, compared to $10.9 million, or 0.47% of total loans, at 2016Q2. The increase in allowance is primarily attributable to the increase in outstanding loans at period end. There was no significant change in the qualitative component of the allowance, which reflects management's judgment of inherent loss in the loan portfolio not represented in historic loss rates.

Conference Call
A conference call will be held at 8:30 a.m., Eastern Time this morning (October 27, 2016). The conference call can be accessed by dialing (877) 512-1104 and requesting the Park Sterling Corporation earnings call. Listeners should dial in 10 minutes prior to the start of the call. The live webcast and presentation slides will be available on www.parksterlingbank.com under Investor Relations, "Investor Presentations."

A replay of the webcast will be available on www.parksterlingbank.com under Investor Relations, "Investor Presentations" shortly following the call. A replay of the conference call can be accessed approximately one hour after the call by dialing (877) 344-7529 and requesting conference number 10094052.

About Park Sterling Corporation
Park Sterling Corporation, the holding company for Park Sterling Bank, is headquartered in Charlotte, North Carolina. Park Sterling, a regional community-focused financial services company with $3.2 billion in assets, is the largest community bank headquartered in the Charlotte area and has 56 banking offices stretching across the Carolinas and into North Georgia, as well as in Richmond, Virginia. The bank serves professionals, individuals, and small and mid-sized businesses by offering a full array of financial services, including deposit, mortgage banking, cash management, consumer and business finance, capital markets and wealth management services with a commitment to "Answers You Can Bank On℠." Park Sterling prides itself on being large enough to help customers achieve their financial aspirations, yet small enough to care that they do. Park Sterling is focused on building a banking franchise that is noted for sound risk management, strong community focus and exceptional customer service. For more information, visit www.parksterlingbank.com. Park Sterling Corporation shares are traded on NASDAQ under the symbol PSTB.

Non-GAAP Financial Measures
Tangible assets, tangible common equity, tangible book value, average tangible common equity, adjusted net income, adjusted operating revenues, adjusted noninterest income, adjusted noninterest expenses, adjusted operating expense, adjusted allowance for loan losses, and related ratios and per share measures, including adjusted return on average assets and adjusted return on average equity, as used throughout this release, are non-GAAP financial measures. For additional information, see "Reconciliation of Non-GAAP Financial Measures" in the accompanying tables.

Cautionary Statement Regarding Forward Looking Statements
This news release contains, and Park Sterling and its management may make, certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often use words such as "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," expect," "project," "predict," "estimate," "could," "should," "would," "will," "goal," "target" and similar expressions. These forward-looking statements express management's current expectations or forecasts of future events, results and conditions and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: changes in loan mix, deposit mix, capital and liquidity levels, emerging regulatory expectations and measures, net interest income, noninterest income, noninterest expense, credit trends and conditions, including loan losses, allowance for loan loss, charge-offs, delinquency trends and nonperforming asset levels, deterioration in the credit quality of the loan portfolio or the value of collateral securing loans, deterioration in the value of securities held for investment, the impacts of a potential increasing rate environment, and other similar matters; inability to identify and successfully negotiate and complete additional combinations with other potential merger partners or to successfully integrate such businesses into Park Sterling, including the Company's ability to adequately estimate or to realize the benefits and cost savings from and limit any unexpected liabilities acquired as a result of any such business combinations; failure to generate an adequate return on investment related to new branches or other hiring initiatives; inability to generate future organic growth in loan balances, retail banking, wealth management, mortgage banking or capital markets results through the hiring of new personnel, development of new products, including new online and mobile banking platforms for treasury services, opening of de novo branches or otherwise; inability to capitalize on identified revenue enhancements or expense management opportunities, including the inability to achieve or maintain adjusted operating expense to adjusted operating revenue targets; inability to generate future ATM and card income from marketing expenses; the effects of negative or soft economic conditions, including stress in the commercial real estate markets or failure of continued recovery in the residential real estate markets; changes in consumer and investor confidence and the related impact on financial markets and institutions; the possibility of recognizing other than temporary impairments on holdings of collateralized loan obligation securities as a result of the Volcker Rule; the potential impacts of any government shutdown or debt ceiling impasse, including the risk of a U.S. credit rating downgrade or default, or continued global economic instability, which could cause disruptions in the financial markets, impact interest rates, and cause other potential unforeseen consequences; fluctuations in the market price of the common stock, regulatory, legal and contractual requirements, other uses of capital, financial performance, market conditions generally, and future actions by the board of directors, in each case impacting repurchases of common stock or declaration of dividends; legal and regulatory developments, including changes in the federal risk-based capital rules; increased competition from both banks and nonbanks; changes in accounting standards, rules and interpretations, inaccurate estimates or assumptions in accounting, including acquisition accounting fair market value assumptions and accounting for purchased credit-impaired loans, and the impact on Park Sterling's financial statements; and management's ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk.

You should not place undue reliance on any forward-looking statement and should consider all of the preceding uncertainties and risks, as well as those more fully discussed in any of Park Sterling's filings with the SEC. Forward-looking statements speak only as of the date they are made, and Park Sterling undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

 
PARK STERLING CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT
THREE MONTH RESULTS
($ in thousands, except per share amounts)  September 30,  June 30,  March 31,  December 31,  September 30,
   2016  2016  2016  2015  2015
   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
Interest income               
 Loans, including fees  $26,521   $26,729   $27,124   $19,284   $19,475  
 Taxable investment securities   2,583    2,640    2,687    2,677    2,636  
 Tax-exempt investment securities   137    137    147    146    152  
 Nonmarketable equity securities   151    153    154    109    142  
 Interest on deposits at banks   51    34    42    22    23  
 Federal funds sold   1    5    8    1    1  
  Total interest income   29,444    29,698    30,162    22,239    22,429  
Interest expense                          
 Money market, NOW and savings deposits   953    1,014    1,017    743    654  
 Time deposits   1,447    1,449    1,398    903    841  
 Short-term borrowings   345    251    294    205    90  
 Long-term debt   379    440    410    55    134  
 Subordinated debt   497    494    446    358    348  
  Total interest expense   3,621    3,648    3,565    2,264    2,067  
  Net interest income   25,823    26,050    26,597    19,975    20,362  
Provision for loan losses   642    882    556    409    -  
  Net interest income after provision   25,181    25,168    26,041    19,566    20,362  
Noninterest income                          
 Service charges on deposit accounts   1,671    1,528    1,489    1,439    1,370  
 Mortgage banking income   1,015    873    775    699    700  
 Income from wealth management activities   739    863    803    887    947  
 Income from capital market activities   680    767    68    437    238  
 ATM and card income   730    776    573    647    537  
 Income from bank-owned life insurance   532    526    988    371    1,058  
 Gain (loss) on sale of securities available for sale   -    (87 )  (6 )  -    54  
 Amortization of indemnification asset and true-up liability expense   (139 )  (25 )  (147 )  (165 )  (162 )
 Other noninterest income   219    154    184    208    185  
  Total noninterest income   5,447    5,375    4,727    4,523    4,927  
Noninterest expenses                          
 Salaries and employee benefits   11,755    11,774    13,018    9,541    9,952  
 Occupancy and equipment   3,111    3,041    3,125    2,680    2,591  
 Data processing and outside service fees   2,331    2,224    5,523    1,669    1,668  
 Legal and professional fees   978    950    725    1,471    472  
 Deposit charges and FDIC insurance   405    478    432    413    401  
 Loss on disposal of fixed assets   144    230    44    50    597  
 Communication fees   532    505    483    480    501  
 Postage and supplies   115    191    173    99    123  
 Loan and collection expense   425    273    37    194    151  
 Core deposit intangible amortization   458    458    458    347    347  
 Advertising and promotion   44    367    421    271    313  
 Net cost of operation of other real estate owned   (92 )  70    266    (23 )  163  
 Other noninterest expense   906    1,385    1,448    1,170    1,140  
  Total noninterest expenses   21,112    21,946    26,153    18,362    18,419  
  Income before income taxes   9,516    8,597    4,615    5,727    6,870  
Income tax expense   3,192    3,045    1,874    1,952    2,092  
  Net income  $6,324   $5,552   $2,741   $3,775   $4,778  
                           
Earnings per common share, fully diluted  $0.12   $0.11   $0.05   $0.09   $0.11  
Weighted average diluted common shares   52,743,928    52,704,537    52,599,584    44,322,428    44,287,019  
                     
 
PARK STERLING CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT
NINE MONTH RESULTS
($ in thousands, except per share amounts)  September 30,  September 30,
   2016  2015
   (Unaudited)  (Unaudited)
Interest income      
 Loans, including fees  $80,374   $58,253  
 Taxable investment securities   7,910    7,935  
 Tax-exempt investment securities   421    433  
 Nonmarketable equity securities   458    391  
 Interest on deposits at banks   127    60  
 Federal funds sold   14    1  
  Total interest income   89,304    67,073  
Interest expense           
 Money market, NOW and savings deposits   2,984    1,706  
 Time deposits   4,294    2,299  
 Short-term borrowings   890    241  
 Long-term debt   1,229    394  
 Subordinated debt   1,437    1,027  
  Total interest expense   10,834    5,667  
  Net interest income   78,470    61,406  
Provision for loan losses   2,080    314  
  Net interest income after provision   76,390    61,092  
Noninterest income           
 Service charges on deposit accounts   4,688    3,495  
 Mortgage banking income   2,663    2,607  
 Income from wealth management activities   2,405    2,715  
 Income from capital market activities   1,515    1,030  
 ATM and card income   2,079    1,860  
 Income from bank-owned life insurance   2,046    2,379  
 Gain (loss) on sale of securities available for sale   (93 )  54  
 Amortization of indemnification asset and true-up liability expense   (311 )  (721 )
 Other noninterest income   557    301  
  Total noninterest income   15,549    13,720  
Noninterest expenses           
 Salaries and employee benefits   36,547    30,404  
 Occupancy and equipment   9,277    7,638  
 Data processing and outside service fees   10,078    4,956  
 Legal and professional fees   2,653    1,930  
 Deposit charges and FDIC insurance   1,315    1,226  
 Loss on disposal of fixed assets   418    946  
 Communication fees   1,520    1,619  
 Postage and supplies   479    389  
 Loan and collection expense   735    547  
 Core deposit intangible amortization   1,374    1,042  
 Advertising and promotion   832    991  
 Net cost of operation of other real estate owned   244    430  
 Other noninterest expense   3,739    3,673  
  Total noninterest expenses   69,211    55,791  
  Income before income taxes   22,728    19,021  
Income tax expense   8,111    6,190  
   Net income  $14,617   $12,831  
            
Earnings per common share, fully diluted  $0.28   $0.29  
Weighted average diluted common shares   52,674,316    44,294,191  
         
 
PARK STERLING CORPORATION
WEALTH MANAGEMENT ASSETS
($ in thousands)
   September 30,  June 30,  March 31,  December 31,  September 30,
   2016  2016  2016  2015  2015
   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
Discretionary assets held  $294,849  $322,996  $339,198  $434,346  $425,229
Non-discretionary assets held   28,476   32,173   31,174   32,289   32,152
Total wealth management assets  $323,325  $355,169  $370,372  $466,635  $457,381
                     
PARK STERLING CORPORATION
MORTGAGE ORIGINATION
($ in thousands)
    September 30,   June 30,   March 31,   December 31,   September 30,
    2016   2016   2016   2015   2015
    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Mortgage origination - purchase  $21,982  $25,316  $14,656  $16,101  $20,063
Mortgage origination - refinance   20,552   16,221   13,430   10,049   15,101
Mortgage origination - construction   20,051   18,403   14,764   18,746   20,452
Total mortgage origination  $62,585  $59,941  $42,850  $44,896  $55,616
                
 
PARK STERLING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands)  September 30,  June 30,  March 31,  December 31,  September 30,
   2016  2016  2016  2015*  2015
   (Unaudited)  (Unaudited)  (Unaudited)     (Unaudited)
ASSETS               
Cash and due from banks  $35,066   $33,348   $34,038   $53,840   $16,096  
Interest-earning balances at banks   38,540    34,955    47,143    16,451    41,230  
Investment securities available for sale   405,010    393,131    396,863    384,934    401,820  
Investment securities held to maturity   99,415    102,125    104,459    106,458    109,072  
Nonmarketable equity securities   16,289    14,420    13,118    11,366    11,377  
Federal funds sold   345    1,570    11,271    235    920  
Loans held for sale   15,203    11,967    7,593    4,943    5,145  
Loans - Non-covered   2,368,950    2,311,775    2,262,294    1,724,164    1,681,227  
Loans - Covered   -    15,122    16,849    17,651    18,897  
Allowance for loan losses   (11,612 )  (10,873 )  (9,832 )  (9,064 )  (8,742 )
 Net loans   2,357,338    2,316,024    2,269,311    1,732,751    1,691,382  
                           
Premises and equipment, net   64,632    65,711    65,494    55,658    56,948  
FDIC receivable for loss share agreements   -    1,164    1,477    943    1,190  
Other real estate owned - non-covered   2,730    2,866    3,425    4,211    7,087  
Other real estate owned - covered   -    380    985    1,240    1,056  
Bank-owned life insurance   70,167    69,695    69,202    58,633    58,286  
Deferred tax asset   26,947    28,985    30,088    28,971    29,711  
Goodwill   63,030    63,197    63,707    29,197    29,197  
Core deposit intangible   11,896    12,354    12,813    9,571    9,918  
Other assets   20,330    22,183    22,750    14,862    14,699  
                           
 Total assets  $3,226,938   $3,174,075   $3,153,737   $2,514,264   $2,485,134  
                           
LIABILITIES AND SHAREHOLDERS' EQUITY                          
                           
Deposits:                          
Demand noninterest-bearing  $505,591   $496,195   $469,046   $350,836   $370,815  
Money market, NOW and savings   1,228,687    1,229,040    1,255,848    1,062,046    1,041,502  
Time deposits   749,999    748,188    773,089    539,780    534,541  
 Total deposits   2,484,277    2,473,423    2,497,983    1,952,662    1,946,858  
                           
Short-term borrowings   280,000    200,000    170,000    185,000    130,000  
Long-term debt   29,725    64,714    65,000    30,000    55,000  
Subordinated debt   33,339    33,176    33,014    24,262    24,092  
Accrued expenses and other liabilities   40,901    48,312    38,229    37,636    44,979  
 Total liabilities   2,868,242    2,819,625    2,804,226    2,229,560    2,200,929  
                           
Shareholders' equity:                          
 Common stock   53,306    53,332    53,038    44,854    44,909  
 Additional paid-in capital   275,323    275,246    274,706    222,596    222,587  
 Retained earnings   29,409    25,219    21,263    20,117    17,692  
 Accumulated other comprehensive income (loss)   658    653    504    (2,863 )  (983 )
 Total shareholders' equity   358,696    354,450    349,511    284,704    284,205  
                           
Total liabilities and shareholders' equity  $3,226,938   $3,174,075   $3,153,737   $2,514,264   $2,485,134  
                           
 Common shares issued and outstanding   53,305,834    53,332,369    53,038,020    44,854,509    44,909,447  
                           
* Derived from audited financial statements.  
  
 
PARK STERLING CORPORATION
SUMMARY OF LOAN PORTFOLIO
($ in thousands)
   September 30,  June 30,  March 31,  December 31,  September 30,
   2016  2016  2016  2015*  2015
BY LOAN TYPE  (Unaudited)  (Unaudited)  (Unaudited)     (Unaudited)
Commercial:               
 Commercial and industrial  $351,506  $334,644  $334,027  $246,907  $211,741
 Commercial real estate (CRE) - owner-occupied   366,506   376,440   374,428   331,222   328,327
 CRE - investor income producing   768,513   764,168   723,539   506,110   514,118
 Acquisition, construction and development (AC&D) - 1-4 Family Construction   108,706   100,604   97,614   32,262   27,299
 AC&D - Lots and land   88,620   94,686   88,492   44,411   47,948
 AC&D - CRE construction   148,696   125,466   136,561   87,452   85,643
 Other commercial   10,653   10,410   10,167   8,601   8,830
  Total commercial loans   1,843,200   1,806,418   1,764,828   1,256,965   1,223,906
                     
Consumer:                    
 Residential mortgage   254,298   244,063   235,737   223,884   224,110
 Home equity lines of credit   181,246   181,020   177,594   157,378   157,430
 Residential construction   63,847   65,867   71,117   72,170   66,823
 Other loans to individuals   23,281   26,575   27,245   28,817   24,896
  Total consumer loans   522,672   517,525   511,693   482,249   473,259
   Total loans   2,365,872   2,323,943   2,276,521   1,739,214   1,697,165
 Deferred costs (fees)   3,078   2,954   2,622   2,601   2,959
   Total loans, net of deferred costs (fees)  $2,368,950  $2,326,897  $2,279,143  $1,741,815  $1,700,124
                     
* Derived from audited financial statements.
                     
    September 30,   June 30,   March 31,   December 31,   September 30,
    2016   2016   2016   2015*   2015
BY ACQUIRED AND NON-ACQUIRED   (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)
Acquired loans - performing  $599,840  $661,930  $726,025  $279,949  $300,102
Acquired loans - purchase credit impaired   90,571   98,672   106,105   94,917   102,537
 Total acquired loans   690,411   760,602   832,130   374,866   402,639
Non-acquired loans, net of deferred costs (fees)**   1,678,539   1,566,295   1,447,013   1,366,949   1,297,485
 Total loans  $2,368,950  $2,326,897  $2,279,143  $1,741,815  $1,700,124
                     
* Derived from audited financial statements.
** Includes loans transferred from acquired pools following release of acquisition accounting FMV adjustments.
 
 
PARK STERLING CORPORATION
ALLOWANCE FOR LOAN LOSSES
THREE MONTH RESULTS
($ in thousands)  September 30,  June 30,  March 31,  December 31,  September 30,
   2016  2016  2016  2015*  2015
   (Unaudited)  (Unaudited)  (Unaudited)     (Unaudited)
Beginning of period allowance  $10,873   $9,832   $9,064   $8,742   $8,468  
Loans charged-off   (156 )  (94 )  (82 )  (237 )  (121 )
Recoveries of loans charged-off   253    253    294    150    415  
 Net charge-offs   97    159    212    (87 )  294  
                           
Provision expense   642    882    556    409    -  
Benefit attributable to FDIC loss share agreements   -    -    -    -    -  
 Total provision expense charged to operations   642    882    556    409    -  
Provision expense recorded through FDIC loss share receivable   -    -    -    -    (20 )
 End of period allowance  $11,612   $10,873   $9,832   $9,064   $8,742  
                           
Net charge-offs (recoveries)  $(97 ) $(159 ) $(212 ) $87   $(294 )
Net charge-offs (recoveries) to average loans (annualized)   -0.02 %  -0.03 %  -0.04 %  0.02 %  -0.07 %
                           
* Derived from audited financial statements.  
  
 
PARK STERLING CORPORATION
ACQUIRED LOANS
($ in thousands)
   September 30,  June 30,  March 31,  December 31,  September 30,
ACQUIRED LOANS AND FAIR MARKET VALUE (FMV) ADJUSTMENTS  2016  2016  2016  2015*  2015
(Unaudited)  (Unaudited)  (Unaudited)     (Unaudited)
                
Non-acquired loans  $1,678,539   $1,566,295   $1,447,013   $1,366,949   $1,297,485  
                           
 Purchased performing loans   604,000    666,894    732,075    282,081    302,296  
 Less: remaining FMV adjustments   (4,160 )  (4,964 )  (6,050 )  (2,132 )  (2,194 )
 Purchased performing loans, net   599,840    661,930    726,025    279,949    300,102  
                            
 Purchased credit impaired loans   115,736    124,985    133,644    120,957    129,890  
 Less: remaining FMV adjustments   (25,165 )  (26,313 )  (27,539 )  (26,040 )  (27,353 )
 Purchased credit impaired loans, net   90,571    98,672    106,105    94,917    102,537  
                           
Total loans  $2,368,950   $2,326,897   $2,279,143   $1,741,815   $1,700,124  
                           
                           
    September 30,    June 30,    March 31,    December 31,    September 30,  
PURCHASED PERFORMING FMV ADJUSTMENTS   2016    2016    2016    2015*    2015  
 (Unaudited)    (Unaudited)    (Unaudited)         (Unaudited)  
                           
Beginning FMV adjustment  $(4,964 ) $(6,050 ) $(2,132 ) $(2,194 ) $(2,450 )
Increase from First Capital   -    -    (5,200 )  -    -  
Accretion to interest income:                          
 First Capital   623    777    1,027    -    -  
 All other mergers   181    309    255    62    256  
                           
Ending FMV adjustment  $(4,160 ) $(4,964 ) $(6,050 ) $(2,132 ) $(2,194 )
                           
                           
    September 30,    June 30,    March 31,    December 31,    September 30,  
PCI FMV ADJUSTMENT   2016    2016    2016    2015*    2015  
 (Unaudited)    (Unaudited)    (Unaudited)         (Unaudited)  
                           
Contractual principal and interest  $136,393   $143,701   $153,124   $140,269   $152,098  
Nonaccretable difference   (14,699 )  (14,652 )  (14,975 )  (12,843 )  (14,512 )
 Expected cash flows as of the end of period   121,694    129,049    138,149    127,426    137,586  
Accretable yield   (31,123 )  (30,377 )  (32,044 )  (32,509 )  (35,049 )
Ending basis in PCI loans- estimated fair value  $90,571   $98,672   $106,105   $94,917   $102,537  
                           
Beginning accretable yield  $(30,377 ) $(32,044 ) $(32,509 ) $(35,049 ) $(36,773 )
Increase from First Capital   -    -    (1,663 )  -    -  
Loan system servicing income   1,532    1,434    1,551    1,437    1,525  
Accretion to interest income   1,241    1,343    1,471    1,438    1,551  
Reclass to (from) non-accretable yield   (2,691 )  (522 )  (993 )  (553 )  (897 )
Other adjustments   (828 )  (588 )  99    218    (455 )
Period end accretable yield**  $(31,123 ) $(30,377 ) $(32,044 ) $(32,509 ) $(35,049 )
                           
* Derived from audited financial statements.  
** Difference between the remaining FMV discount on purchased credit impaired loans and the period end accretable yield is a function of projected estimated expected interest income being included in the period end accretable yield.  
  
 
PARK STERLING CORPORATION
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS
THREE MONTHS
($ in thousands)  September 30, 2016        September 30, 2015      
   Average
Balance
 Income/
Expense
 Yield/
Rate (3)
 Average
Balance
 Income/
Expense
 Yield/
Rate (3)
Assets                  
Interest-earning assets:                  
 Loans and loans held for sale, net (1)(2)  $2,348,297   $26,521  4.49 % $1,681,017   $19,475  4.60 %
 Fed funds sold   971    1  0.41 %  1,237    1  0.32 %
 Taxable investment securities   483,815    2,583  2.14 %  491,586    2,636  2.14 %
 Tax-exempt investment securities   14,013    137  3.91 %  15,248    152  3.99 %
 Other interest-earning assets   53,088    202  1.51 %  67,215    165  0.97 %
                             
  Total interest-earning assets   2,900,184    29,444  4.04 %  2,256,303    22,429  3.94 %
                            
Allowance for loan losses   (11,054 )          (8,724 )        
Cash and due from banks   34,703            16,010          
Premises and equipment   65,332            57,867          
Goodwill   63,076            29,197          
Intangible assets   12,120            10,087          
Other assets   122,438            112,294          
                            
  Total assets  $3,186,799           $2,473,034          
                            
Liabilities and shareholders' equity                           
Interest-bearing liabilities:                           
 Interest-bearing demand  $426,755   $68  0.06 % $382,897   $60  0.06 %
 Savings and money market   744,930    777  0.41 %  564,187    530  0.37 %
 Time deposits - core   653,937    1,179  0.72 %  467,547    719  0.61 %
 Brokered deposits   156,867    376  0.95 %  138,655    186  0.53 %
  Total interest-bearing deposits   1,982,489    2,400  0.48 %  1,553,286    1,495  0.38 %
 Short-term borrowings   235,870    345  0.58 %  166,630    90  0.21 %
 Long-term debt   29,718    379  5.07 %  55,000    134  0.97 %
 Subordinated debt   33,262    497  5.94 %  24,003    348  5.75 %
  Total borrowed funds   298,850    1,221  1.63 %  245,633    572  0.92 %
                             
  Total interest-bearing liabilities   2,281,339    3,621  0.63 %  1,798,919    2,067  0.46 %
                            
Net interest rate spread        25,823  3.41 %       20,362  3.49 %
                            
Noninterest-bearing demand deposits   502,158            359,800          
Other liabilities   45,725            31,889          
Shareholders' equity   357,577            282,426          
                            
Total liabilities and shareholders' equity  $3,186,799           $2,473,034          
                            
Net interest margin           3.54 %          3.58 %
                            
(1) Nonaccrual loans are included in the average loan balances.  
(2) Interest income and yields for the three months ended September 30, 2016 and 2015 include accretion from acquisition accounting adjustments associated with acquired loans.  
(3) Yield/ rate calculated on Actual/Actual day count basis, except for yield on investments which is calculated on a 30/360 day count basis.  
  
 
PARK STERLING CORPORATION
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS
NINE MONTHS
($ in thousands)  September 30, 2016        September 30, 2015      
   Average
Balance
 Income/
Expense
 Yield/
Rate (3)
 Average
Balance
 Income/
Expense
 Yield/
Rate (3)
Assets                  
Interest-earning assets:                  
 Loans and loans held for sale, net (1)(2)  $2,307,380   $80,374  4.65 % $1,642,736   $58,253  4.74 %
 Fed funds sold   3,894    14  0.48 %  812    1  0.16 %
 Taxable investment securities   485,004    7,910  2.17 %  482,084    7,935  2.19 %
 Tax-exempt investment securities   14,728    421  3.81 %  14,029    433  4.12 %
 Other interest-earning assets   48,158    585  1.62 %  59,951    451  1.01 %
                             
  Total interest-earning assets   2,859,164    89,304  4.17 %  2,199,612    67,073  4.08 %
                            
Allowance for loan losses   (10,296 )          (8,664 )        
Cash and due from banks   35,488            16,432          
Premises and equipment   65,956            58,706          
Goodwill   62,881            29,216          
Intangible assets   12,470            10,431          
Other assets   125,951            115,664          
                            
  Total assets  $3,151,614           $2,421,397          
                            
Liabilities and shareholders' equity                           
Interest-bearing liabilities:                           
 Interest-bearing demand  $426,659   $235  0.07 % $400,776   $198  0.07 %
 Savings and money market   741,074    2,447  0.44 %  535,801    1,331  0.33 %
 Time deposits - core   683,302    3,670  0.72 %  462,353    1,938  0.56 %
 Brokered deposits   141,009    926  0.88 %  137,726    538  0.52 %
  Total interest-bearing deposits   1,992,044    7,278  0.49 %  1,536,656    4,005  0.35 %
 Short-term borrowings   197,043    890  0.60 %  155,641    241  0.21 %
 Long-term debt   53,364    1,229  3.08 %  54,304    394  0.97 %
 Subordinated debt   33,098    1,437  5.80 %  23,835    1,027  5.76 %
  Total borrowed funds   283,505    3,556  1.68 %  233,780    1,662  0.95 %
                             
  Total interest-bearing liabilities   2,275,549    10,834  0.64 %  1,770,436    5,667  0.43 %
                            
Net interest rate spread        78,470  3.54 %       61,406  3.65 %
                            
Noninterest-bearing demand deposits   480,772            339,250          
Other liabilities   42,396            31,267          
Shareholders' equity   352,897            280,444          
                            
Total liabilities and shareholders' equity  $3,151,614           $2,421,397          
                            
Net interest margin           3.67 %          3.73 %
                            
(1) Nonaccrual loans are included in the average loan balances.  
(2) Interest income and yields for the nine months ended September 30, 2016 and 2015 include accretion from acquisition accounting adjustments associated with acquired loans.  
(3) Yield/ rate calculated on Actual/Actual day count basis, except for yield on investments which is calculated on a 30/360 day count basis.  
  
 
PARK STERLING CORPORATION
SELECTED RATIOS
($ in thousands, except per share amounts)  September 30,  June 30,  March 31,  December 31,  September 30,
   2016  2016  2016  2015  2015
   Unaudited  Unaudited  Unaudited  Unaudited  Unaudited
ASSET QUALITY               
 Nonaccrual loans  $8,623   $5,185   $6,595   $4,326   $5,342  
 Troubled debt restructuring (and still accruing)   2,549    2,582    2,696    2,774    3,090  
 Past due 90 days plus (and still accruing)   293    -    293    1,151    47  
 Nonperforming loans   11,465    7,767    9,584    8,251    8,479  
 OREO   2,730    3,246    4,410    5,451    8,143  
 Nonperforming assets   14,195    11,013    13,994    13,702    16,622  
 Past due 30-59 days (and still accruing)   1,104    985    217    1,222    1,790  
 Past due 60-89 days (and still accruing)   2,558    5,800    499    1,340    3,753  
                            
 Nonperforming loans to total loans   0.48 %  0.33 %  0.42 %  0.47 %  0.50 %
 Nonperforming assets to total assets   0.44 %  0.35 %  0.44 %  0.54 %  0.67 %
 Allowance to total loans   0.49 %  0.47 %  0.43 %  0.52 %  0.51 %
 Allowance to nonperforming loans   101.28 %  139.99 %  102.59 %  109.85 %  103.10 %
 Allowance to nonperforming assets   81.80 %  98.73 %  70.26 %  66.15 %  52.59 %
 Past due 30-89 days (accruing) to total loans   0.15 %  0.29 %  0.03 %  0.15 %  0.33 %
 Net charge-offs (recoveries) to average loans   -0.02 %  -0.03 %  -0.04 %  0.02 %  -0.07 %
  (annualized)                          
                           
CAPITAL                          
 Book value per common share  $6.84   $6.77   $6.69   $6.49   $6.47  
 Tangible book value per common share**  $5.41   $5.33   $5.22   $5.60   $5.58  
 Common shares outstanding   53,305,834    53,332,369    53,038,020    44,854,509    44,909,447  
 Weighted average dilutive common shares outstanding   52,743,928    52,704,537    52,599,584    44,322,428    44,287,019  
                            
 Common Equity Tier 1 (CET1) capital  $287,518   $282,721   $275,490   $251,807   $249,289  
 Tier 1 capital   312,781    307,736    300,354    268,605    265,917  
 Tier 2 capital   11,615    10,914    9,832    9,064    8,742  
 Total risk based capital   324,396    318,650    310,186    277,669    274,659  
 Risk weighted assets   2,596,463    2,538,461    2,478,547    1,939,417    1,887,065  
 Average assets for leverage ratio   3,108,707    3,058,742    3,076,505    2,441,811    2,434,376  
                            
 Common Equity Tier 1 (CET1) ratio   11.07 %  11.14 %  11.11 %  12.98 %  13.21 %
 Tier 1 ratio   12.05 %  12.12 %  12.12 %  13.85 %  14.09 %
 Total risk based capital ratio   12.49 %  12.55 %  12.51 %  14.32 %  14.55 %
 Tier 1 leverage ratio   10.06 %  10.06 %  9.76 %  11.00 %  10.92 %
 Tangible common equity to tangible assets**   9.00 %  9.00 %  8.87 %  9.93 %  10.02 %
                           
LIQUIDITY                          
 Net loans to total deposits   94.89 %  93.64 %  90.85 %  88.74 %  86.88 %
 Reliance on wholesale funding   17.65 %  16.25 %  15.50 %  16.77 %  16.02 %
                           
INCOME STATEMENT (THREE MONTH RESULTS; ANNUALIZED)                          
 Return on Average Assets   0.79 %  0.71 %  0.35 %  0.60 %  0.77 %
 Return on Average Common Equity   7.04 %  6.33 %  3.16 %  5.26 %  6.71 %
 Net interest margin (non-tax equivalent)   3.54 %  3.69 %  3.78 %  3.52 %  3.58 %
                           
** Non-GAAP financial measure  
  

Non-GAAP Financial Measures
Tangible assets, tangible common equity, tangible book value, adjusted average tangible common equity, adjusted net income, adjusted noninterest income, adjusted operating revenues, adjusted noninterest expense, adjusted operating expenses, adjusted allowance for loan losses, and related ratios and per share measures, including adjusted return on average assets and adjusted return on average equity, as used throughout this release, are non-GAAP financial measures. Management uses (i) tangible assets, tangible common equity and tangible book value (which exclude goodwill and other intangibles from equity and assets), and related ratios, to evaluate the adequacy of shareholders' equity and to facilitate comparisons with peers; (ii) adjusted allowance for loan losses (which includes net FMV adjustments related to acquired loans) as supplemental information for comparing the combined allowance and fair market value adjustments to the combined acquired and non-acquired loan portfolios (fair market value adjustments are available only for losses on acquired loans); and (iii) adjusted net income and adjusted noninterest income (which exclude merger-related expenses and gain or loss on sale of securities, as applicable), adjusted noninterest expense (which excludes merger-related expenses), adjusted operating expense (which excludes merger-related expenses and amortization of intangibles) and adjusted operating revenues (which includes net interest income and noninterest income and excludes gain or loss on sale of securities, as applicable) to evaluate core earnings and to facilitate comparisons with peers.

 
PARK STERLING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands, except per share amounts)
(as of or for the three month period ended)  September 30,  June 30,  March 31,  December 31,  September 30,
   2016  2016  2016  2015  2015
   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
Adjusted net income               
 Pretax income (as reported)  $9,516   $8,597   $4,615   $5,727   $6,870  
 Plus: merger-related expenses   1,487    1,268    5,193    1,396    31  
   (gain) loss on sale of securities   -    87    6    -    (54 )
  Adjusted pretax income   11,003    9,952    9,814    7,123    6,847  
 Tax expense   3,691    3,509    3,646    2,332    2,085  
  Adjusted net income  $7,312   $6,443   $6,168   $4,791   $4,762  
                            
 Divided by: weighted average diluted shares   52,743,928    52,704,537    52,599,584    44,322,428    44,287,019  
  Adjusted net income per share   0.14    0.12    0.12   $0.11   $0.11  
 Estimated tax rate for adjustment   33.54 %  34.26 %  34.09 %  32.75 %  32.56 %
                           
Adjusted noninterest income                          
 Noninterest income (as reported)  $5,447   $5,375   $4,727   $4,523   $4,927  
 Less: (gain) loss on sale of securities   -    87    6    -    (54 )
  Adjusted noninterest income  $5,447   $5,462   $4,733   $4,523   $4,873  
                           
Adjusted noninterest expenses                          
 Noninterest expenses (as reported)  $21,112   $21,946   $26,153   $18,362   $18,419  
 Less: merger-related expenses   (1,487 )  (1,268 )  (5,193 )  (1,396 )  (31 )
  Adjusted noninterest expenses  $19,625   $20,678   $20,960   $16,966   $18,388  
                           
Adjusted operating expense                          
 Noninterest expenses (as reported)  $21,112   $21,946   $26,153   $18,362   $18,419  
 Less: merger-related expenses   (1,487 )  (1,268 )  (5,193 )  (1,396 )  (31 )
 Less: amortization of intangibles   (458 )  (458 )  (458 )  (347 )  (347 )
  Adjusted operating expense  $19,167   $20,220   $20,502   $16,619   $18,041  
                           
Adjusted operating revenues                          
 Net Interest Income (as reported)  $25,823   $26,050   $26,597   $19,975   $20,362  
 Plus: noninterest income (as reported)   5,447    5,375    4,727    4,523    4,927  
 Less: (gain) loss on sale of securities   -    87    6    -    (54 )
  Adjusted operating revenues  $31,270   $31,512   $31,330   $24,498   $25,235  
                           
Adjusted operating expense to adjusted operating revenues                          
 Adjusted operating expense  $19,167   $20,220   $20,502   $16,619   $18,041  
 Divided by: adjusted operating revenues   31,270    31,512    31,330    24,498    25,235  
  Adjusted operating expense to adjusted operating revenues   61.30 %  64.17 %  65.44 %  67.84 %  71.49 %
  Noninterest expenses to net interest income plus noninterest income   67.52 %  69.84 %  83.49 %  74.95 %  72.83 %
                           
Adjusted return on average assets                          
 Adjusted net income  $7,312   $6,443   $6,168   $4,791   $4,762  
 Divided by: average assets   3,186,799    3,135,031    3,132,625    2,480,983    2,473,034  
 Multiplied by: annualization factor   3.98    4.02    4.02    3.97    3.97  
  Adjusted return on average assets   0.91 %  0.83 %  0.79 %  0.77 %  0.76 %
  Return on average assets   0.79 %  0.71 %  0.35 %  0.60 %  0.77 %
                           
                           
PARK STERLING CORPORATION  
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES  
($ in thousands, except per share amounts)  
(as of or for the three month period ended)   September 30,    June 30,    March 31,    December 31,    September 30,  
    2016    2016    2016    2015    2015  
    (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)  
Adjusted return on average equity                          
 Adjusted net income  $7,312   $6,443   $6,168   $4,791   $4,762  
 Divided by: average common equity   357,577    352,505    348,556    284,671    282,426  
 Multiplied by: annualization factor   3.98    4.02    4.02    3.97    3.97  
  Adjusted return on average equity   8.14 %  7.35 %  7.12 %  6.68 %  6.69 %
  Return on average equity   7.04 %  6.33 %  3.16 %  5.26 %  6.71 %
                           
Tangible common equity to tangible assets                          
 Total assets  $3,226,938   $3,174,075   $3,153,737   $2,514,264   $2,485,134  
 Less: intangible assets   (74,926 )  (75,551 )  (76,520 )  (38,768 )  (39,115 )
  Tangible assets  $3,152,012   $3,098,524   $3,077,217   $2,475,496   $2,446,019  
                           
 Total common equity  $358,696   $354,450   $349,511   $284,704   $284,205  
 Less: intangible assets   (74,926 )  (75,551 )  (76,520 )  (38,768 )  (39,115 )
  Tangible common equity  $283,770   $278,899   $272,991   $245,936   $245,090  
                            
 Tangible common equity  $283,770   $278,899   $272,991   $245,936   $245,090  
 Divided by: tangible assets   3,152,012    3,098,524    3,077,217    2,475,496    2,446,019  
  Tangible common equity to tangible assets   9.00 %  9.00 %  8.87 %  9.93 %  10.02 %
  Common equity to assets   11.12 %  11.17 %  11.08 %  11.32 %  11.44 %
                           
Tangible book value per share                          
 Issued and outstanding shares   53,305,834    53,332,369    53,038,020    44,854,509    44,909,447  
 Less: nondilutive restricted stock awards   (837,561 )  (969,991 )  (785,658 )  (959,305 )  (974,183 )
  Period end dilutive shares   52,468,273    52,362,378    52,252,362    43,895,204    43,935,264  
                            
 Tangible common equity  $283,770   $278,899   $272,991   $245,936   $245,090  
 Divided by: period end dilutive shares   52,468,273    52,362,378    52,252,362    43,895,204    43,935,264  
  Tangible common book value per share  $5.41   $5.33   $5.22   $5.60   $5.58  
  Common book value per share  $6.84   $6.77   $6.69   $6.49   $6.47  
                           
Adjusted return on average tangible common equity                          
 Average common equity  $357,577   $352,505   $348,556   $284,671   $282,426  
 Less: average intangible assets   (75,196 )  (76,083 )  (74,773 )  (38,934 )  (39,284 )
  Average tangible common equity  $282,381   $276,422   $273,783   $245,737   $243,142  
                           
 Net income  $6,324   $5,552   $2,741   $3,775   $4,778  
 Divided by: average tangible common equity   282,381    276,422    273,783    245,737    243,142  
 Multiplied by: annualization factor   3.98    4.02    4.02    3.97    3.97  
  Return on average tangible common equity   8.91 %  8.08 %  4.03 %  6.09 %  7.80 %
                            
 Adjusted net income  $7,312   $6,443   $6,168   $4,791   $4,762  
 Divided by: average tangible common equity   282,381    276,422    273,783    245,737    243,142  
 Multiplied by: annualization factor   3.98    4.02    4.02    3.97    3.97  
  Adjusted return on average tangible common equity   10.30 %  9.37 %  9.06 %  7.74 %  7.77 %
                           
Adjusted allowance for loan losses                          
 Allowance for loan losses  $11,612   $10,873   $9,832   $9,064   $8,742  
 Plus: acquisition accounting FMV adjustments to acquired loans   29,325    31,277    33,589    28,173    29,548  
  Adjusted allowance for loan losses  $40,937   $42,150   $43,421   $37,237   $38,290  
 Divided by: total loans (excluding LHFS before FMV adjustments)  $2,398,275   $2,358,174   $2,312,732   $1,769,988   $1,729,672  
  Adjusted allowance for loan losses to total loans   1.71 %  1.79 %  1.88 %  2.10 %  2.21 %
  Allowance for loan losses to total loans   0.49 %  0.47 %  0.43 %  0.52 %  0.51 %

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