ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced
earnings and operating results for the quarter ended December 31,
2023.
Fourth Quarter 2023 Highlights:
- Entering the Memphis, Tennessee market with the hiring of
Joel Smith as President.
- Deposits grew 15% year-over-year and new deposit accounts
opened increased 12% year-over-year.
- Diluted earnings per share of $0.77 for the
quarter.
- Adjusted* diluted earnings per share of $0.91 for the
quarter.
- $2.1 billion in cash on hand with no FHLB advances or
brokered deposits.
- Book value per share of $26.45, up 10.7% from the fourth
quarter of 2022 and 10.8% annualized, from the third quarter of
2023.
- Cash dividend increased from $0.28 per share to $0.30 per
share, a 7% increase.
- Credit quality continues to be strong with non-performing
assets to total assets of 0.14%.
- Consolidated Common Equity Tier 1 capital to risk-weighted
assets increased from 9.95% to 10.91% year-over-year.
Tom Broughton, Chairman, President, and CEO, said, “We are
pleased to announce our entrance into the Memphis, Tennessee market
with the addition of Joel Smith, who is an outstanding banker with
a commercial and industrial banking background.”
Bud Foshee, CFO, said, “We are well-positioned for growth in
2024, with strong liquidity in what we believe to be the best
footprint in the United States.”
* This press release includes certain non-GAAP financial
measures: adjusted net income, adjusted net income available to
common stockholders, adjusted diluted earnings per share, adjusted
return on average assets, adjusted return on average common
stockholders’ equity, adjusted efficiency ratio, tangible common
stockholders' equity, total tangible assets, tangible book value
per share, and tangible common equity to total tangible assets.
Please see “GAAP Reconciliation and Management Explanation of
Non-GAAP Financial Measures.”
FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share
amounts)
Period Ending December 31,
2023
Period Ending September 30,
2023
% Change From Period Ending
September 30, 2023 to Period Ending December 31, 2023
Period Ending December 31,
2022
% Change From Period Ending
December 31, 2022 to Period Ending December 31, 2023
QUARTERLY OPERATING RESULTS
Net Income
$
42,074
$
53,340
(21.1
)%
$
67,724
(37.9
)%
Net Income Available to Common
Stockholders
$
42,043
$
53,340
(21.2
)%
$
67,693
(37.9
)%
Diluted Earnings Per Share
$
0.77
$
0.98
(21.3
)%
$
1.24
(38.0
)%
Return on Average Assets
1.04
%
1.37
%
1.89
%
Return on Average Common Stockholders'
Equity
11.78
%
15.34
%
21.27
%
Average Diluted Shares Outstanding
54,548,719
54,530,635
54,537,685
Adjusted Net Income, net of tax*
$
49,891
$
53,340
(6.5
)%
$
67,724
(26.3
)%
Adjusted Net Income Available to
Common
Stockholders, net of tax*
$
49,860
$
53,340
(6.5
)%
$
67,693
(26.3
)%
Adjusted Diluted Earnings Per Share, net
of tax*
$
0.91
$
0.98
(6.6
)%
$
1.24
(26.4
)%
Adjusted Return on Average Assets, net of
tax*
1.23
%
1.37
%
1.89
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
13.98
%
15.34
%
21.27
%
YEAR-TO-DATE OPERATING RESULTS
Net Income
$
206,853
$
251,504
(17.8
)%
Net Income Available to Common
Stockholders
$
206,791
$
251,442
(17.8
)%
Diluted Earnings Per Share
$
3.79
$
4.61
(17.8
)%
Return on Average Assets
1.37
%
1.71
%
Return on Average Common Stockholders'
Equity
15.13
%
20.73
%
Average Diluted Shares Outstanding
54,535,315
54,534,774
Adjusted Net Income, net of tax*
$
214,670
$
251,504
(14.6
)%
Adjusted Net Income Available to
Common
Stockholders, net of tax*
$
214,608
$
251,442
(14.6
)%
Adjusted Diluted Earnings Per Share, net
of tax*
$
3.94
$
4.61
Adjusted Return on Average Assets, net of
tax*
1.42
%
1.71
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
15.71
%
20.73
%
BALANCE SHEET
Total Assets
$
16,129,668
$
16,044,332
0.5
%
$
14,595,753
10.5
%
Loans
11,658,829
11,641,130
0.2
%
11,687,968
(0.2
)%
Non-interest-bearing Demand Deposits
2,643,101
2,621,072
0.8
%
3,321,347
(20.4
)%
Total Deposits
13,273,511
13,142,376
1.0
%
11,546,805
15.0
%
Stockholders' Equity
1,440,405
1,401,384
2.8
%
1,297,896
11.0
%
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income of $42.1
million and net income available to common stockholders of $42.0
million for the quarter ended December 31, 2023, compared to net
income and net income available to common stockholders of $53.3
million for the third quarter of 2023 and net income and net income
available to common stockholders of $67.7 million for the fourth
quarter of 2022. Basic and diluted earnings per common share were
both $0.77 in the fourth quarter of 2023, compared to $0.98 for
both in the third quarter of 2023 and $1.25 and $1.24,
respectively, in the fourth quarter of 2022.
Annualized return on average assets was 1.04% and annualized
return on average common stockholders’ equity was 11.78% for the
fourth quarter of 2023, compared to 1.89% and 21.27%, respectively,
for the fourth quarter of 2022.
Net interest income was $101.7 million for the fourth quarter of
2023, compared to $99.7 million for the third quarter of 2023 and
$122.4 million for the fourth quarter of 2022. The net interest
margin in the fourth quarter of 2023 was 2.57% compared to 2.64% in
the third quarter of 2023 and 3.52% in the fourth quarter of 2022.
The Company significantly increased deposits and liquidity in the
form of interest-bearing balances with banks after the stress in
the banking system in March. Average interest-bearing balances with
banks increased by $1.5 billion, or 333%, from the fourth quarter
of 2022 to the fourth quarter of 2023. While the increased
liquidity had a benign impact on net interest income, it has had an
impact on our net interest margin. Loan yields were 6.32% during
the fourth quarter of 2023 compared to 6.13% during the third
quarter of 2023 and 5.32% during the fourth quarter of 2022.
Investment yields were 3.08% during the fourth quarter of 2023
compared to 3.07% during the third quarter of 2023 and 2.49% during
the fourth quarter of 2022. Average interest-bearing deposit rates
were 4.06% during the fourth quarter of 2023, compared to 3.84%
during the third quarter of 2023 and 1.70% during the fourth
quarter of 2022. Average federal funds purchased rates were 5.49%
during the fourth quarter of 2023, compared to 5.43% during the
third quarter of 2023 and 3.75% during the fourth quarter of
2022.
Average loans for the fourth quarter of 2023 were $11.60
billion, an increase of $35.5 million, or 1.2% annualized, from
average loans of $11.56 billion for the third quarter of 2023, and
an increase of $113.4 million, or 1.0%, from average loans of
$11.49 billion for the fourth quarter of 2022.
Average total deposits for the fourth quarter of 2023 were
$13.23 billion, an increase of $549.1 million, or 17.2% annualized,
over average total deposits of $12.68 billion for the third quarter
of 2023, and an increase of $1.84 billion, or 16.2%, from average
total deposits of $11.39 billion for the fourth quarter of
2022.
Non-performing assets to total assets were 0.14% for the fourth
quarter of 2023, compared to 0.15% for the third quarter of 2023
and 0.12% for the fourth quarter of 2022. Annualized net
charge-offs to average loans were 0.09% for the fourth quarter of
2023, compared to 0.15% for the third quarter of 2023 and 0.06%
fourth quarter of 2022. The allowance for credit losses as a
percentage of total loans at December 31, 2023, September 30, 2023,
and December 31, 2022, was 1.32%, 1.31%, and 1.25%, respectively.
We recorded a $3.6 million provision for credit losses in the
fourth quarter of 2023 compared to $4.3 million in the third
quarter of 2023, and $7.1 million in the fourth quarter of
2022.
Non-interest income increased $413,000, or 5.9%, to $7.4 million
for the fourth quarter of 2023 from $7.0 million in the fourth
quarter of 2022, and decreased $756,000, or 9.3%, on a linked
quarter basis. Service charges on deposit accounts increased
$315,000, or 16.9%, to $2.2 million from the fourth quarter of 2022
to the fourth quarter of 2023, and increased $18,000, or 0.8%, on a
linked quarter basis. Mortgage banking revenue increased $278,000,
or 54.1%, to $792,000 from the fourth quarter of 2022 to the fourth
quarter of 2023, and decreased $33,000, or 4.0%, on a linked
quarter basis. Net credit card revenue decreased $257,000, or
11.4%, to $2.0 million during the fourth quarter of 2023, compared
to $2.3 million during the fourth quarter of 2022, and decreased
$528,000, or 20.9%, on a linked quarter basis. Bank-owned life
insurance (“BOLI”) income increased $39,000, or 2.4%, to $1.6
million during the fourth quarter of 2023, compared to $1.6 million
during the fourth quarter of 2022, and decreased $179,000, or 9.8%,
on a linked quarter basis. Other operating income for the fourth
quarter of 2023 increased $38,000, or 5.2%, to $763,000 from
$725,000 in the fourth quarter of 2022, and decreased $34,000, or
4.3%, on a linked quarter basis. We recognized $162,000 of income
on an interest rate cap during the fourth quarter of 2022. The
interest rate cap matured during the second quarter of 2023.
Merchant service revenue increased $95,000, or 19.5%, to $585,000
for the fourth quarter of 2023 from $490,000 in the fourth quarter
of 2022.
Non-interest expense for the fourth quarter of 2023 increased
$20.2 million, or 52.9%, to $58.3 million from $38.1 million in the
fourth quarter of 2022, and increased $16.6 million, or 39.8%, on a
linked quarter basis. Salary and benefit expense for the fourth
quarter of 2023 increased $3.8 million, or 19.7%, to $23.0 million
from $19.2 million in the fourth quarter of 2022, and increased
$2.9 million, or 14.7%, on a linked quarter basis. The number of
FTE employees increased by 20 to 591 at December 31, 2023 compared
to 571 at December 31, 2022, and increased by 23 from the end of
the third quarter of 2023. Equipment and occupancy expense
increased $597,000, or 18.3%, to $3.9 million in the fourth quarter
of 2023, from $3.3 million in the fourth quarter of 2022, and
increased $281,000, or 7.9% on a linked-quarter basis. The
year-over-year increase was primarily attributed to new leases that
began after the fourth quarter of 2022. Third party processing and
other services expense decreased $329,000, or 4.0%, to $7.8 million
in the fourth quarter of 2023, from $8.2 million in the fourth
quarter of 2022, and increased $1.3 million, or 19.7%, on a
linked-quarter basis. Professional services expense increased
$495,000, or 53.7%, to $1.4 million in the fourth quarter of 2023,
from $922,000 in the fourth quarter of 2022, and increased
$152,000, or 12.0%, on a linked quarter basis. FDIC and other
regulatory assessments increased $8.2 million to $9.5 million in
the fourth quarter of 2023, from $1.3 million in the fourth quarter
of 2022, and increased $7.2 million, or 305.3%, on a linked quarter
basis. The FDIC increased the assessment rate by two basis points
beginning in the first quarter of 2023. Other operating expenses
for the fourth quarter of 2023 increased $7.6 million, or 154.0%,
to $12.6 million from $5.0 million in the fourth quarter of 2022,
and increased $4.8 million, or 60.9%, on a linked-quarter basis.
During the fourth quarter of 2023, an incremental expense related
to tax credit investments of $3.3 million, associated with the tax
benefit discussed below, contributed to the increase in other
operating expenses. In addition, the following items, which
management views as unusual, infrequent, and not reflective of
future normal operating expenses, contributed to the increase in
non-interest expense: the FDIC implemented a special assessment to
recapitalize the Deposit Insurance Fund resulting in an expense of
$7.2 million, an EDP contract termination and related capitalized
cost write-offs of $1.1 million to other operating expenses, and an
adjustment to a privilege tax accrual resulting in a $2.2 million
expense to other operating expenses. The EDP contract termination
costs were related to a planned systems conversion that was
canceled. We determined the benefits to our clients were less than
expected and the disruption outweighed the benefits. We can
continue to provide best-in-class products with our current service
provider. The adjustment to the privilege tax accrual was due to an
under-accrual in previous years, and the correction resulted in
duplicate expense for 2023. See “GAAP Reconciliation and Management
Explanation of Non-GAAP Financial Measures” below for more
discussion of these expenses. The efficiency ratio was 55.23%
during the fourth quarter of 2023 compared to 29.45% during the
fourth quarter of 2022 and 38.64% during the third quarter of 2023.
The adjusted efficiency ratio was 42.22%.
Income tax expense decreased $11.2 million, or 68.6%, to $5.2
million in the fourth quarter of 2023, compared to $16.4 million in
the fourth quarter of 2022. Our effective tax rate was 10.91% for
the fourth quarter of 2023 compared to 19.49% for the fourth
quarter of 2022. We recognized an aggregate of $6.7 million in
credits during the fourth quarter of 2023 related to investments in
tax credit partnerships, compared to $3.1 million during the fourth
quarter of 2022. During the fourth quarter of 2023, $4.1 million of
the recognized credits were related to the incremental expense for
tax credit investments discussed above. We recognize 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 fourth quarters of 2023 and 2022 of $252,000 and
$10,000, respectively.
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 Alabama, Florida, Georgia,
North and South Carolina, Tennessee, and Virginia. We also operate
loan production offices in Florida. Through the bank, we originate
commercial, consumer and other loans and accept deposits, provide
electronic banking services, such as online and mobile banking,
including remote deposit capture, deliver treasury and cash
management services and provide correspondent banking services to
other financial institutions.
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,”
“could,” “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, but not
limited to: 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 as a result of our reclassification as a
large financial institution by the FDIC; changes in our loan
portfolio and the deposit base; credit issues associated with the
efficacy of return to office policies; possible changes in laws and
regulations and governmental monetary and fiscal policies,
including, but not limited to, the Federal Reserve policies in
connection with continued inflationary pressures and the ability of
the U.S. Congress to increase the U.S. statutory debt limit as
needed; computer hacking or cyber-attacks resulting in unauthorized
access to confidential or proprietary information; substantial,
unexpected or prolonged changes in the level or cost of liquidity;
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, in our Quarterly Reports on
Form 10-Q for fiscal year 2023, 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.
SELECTED FINANCIAL HIGHLIGHTS
(UNAUDITED)
(In thousands except share and per share
data)
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
4th Quarter 2022
CONSOLIDATED STATEMENT OF INCOME
Interest income
$
229,062
$
213,206
$
189,656
$
181,322
$
170,273
Interest expense
127,375
113,508
88,405
73,021
47,889
Net interest income
101,687
99,698
101,251
108,301
122,384
Provision for credit losses
3,582
4,282
6,654
4,197
7,135
Net interest income after provision for
credit losses
98,105
95,416
94,597
104,104
115,249
Non-interest income
7,379
8,135
8,582
6,321
6,966
Non-interest expense
58,258
41,663
38,466
39,664
38,092
Income before income tax
47,226
61,888
64,713
70,761
84,123
Provision for income tax
5,152
8,548
11,245
12,790
16,399
Net income
42,074
53,340
53,468
57,971
67,724
Preferred stock dividends
31
-
31
-
31
Net income available to common
stockholders
$
42,043
$
53,340
$
53,437
$
57,971
$
67,693
Earnings per share - basic
$
0.77
$
0.98
$
0.98
$
1.07
$
1.25
Earnings per share - diluted
$
0.77
$
0.98
$
0.98
$
1.06
$
1.24
Average diluted shares outstanding
54,548,719
54,530,635
54,527,317
54,534,482
54,537,685
CONSOLIDATED BALANCE SHEET DATA
Total assets
$
16,129,668
$
16,044,332
$
15,072,808
$
14,566,559
$
14,595,753
Loans
11,658,829
11,641,130
11,604,894
11,629,802
11,687,968
Debt securities
1,882,847
1,878,701
2,048,227
1,646,937
1,678,936
Non-interest-bearing demand deposits
2,643,101
2,621,072
2,855,102
2,898,736
3,321,347
Total deposits
13,273,511
13,142,376
12,288,219
11,615,317
11,546,805
Borrowings
64,735
64,751
64,737
65,417
64,726
Stockholders' equity
1,440,405
1,401,384
1,363,471
1,339,817
1,297,896
Shares outstanding
54,461,580
54,425,447
54,425,033
54,398,025
54,326,527
Book value per share
$
26.45
$
25.75
$
25.05
$
24.63
$
23.89
Tangible book value per share (1)
$
26.20
$
25.50
$
24.80
$
24.38
$
23.64
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin
2.57
%
2.64
%
2.93
%
3.15
%
3.52
%
Return on average assets
1.04
%
1.37
%
1.50
%
1.63
%
1.89
%
Return on average common stockholders'
equity
11.78
%
15.34
%
15.85
%
17.83
%
21.27
%
Efficiency ratio
55.23
%
38.64
%
35.02
%
34.60
%
29.45
%
Non-interest expense to average earning
assets
1.47
%
1.10
%
1.11
%
1.15
%
1.10
%
CAPITAL RATIOS (2)
Common equity tier 1 capital to
risk-weighted assets
10.91
%
10.69
%
10.37
%
10.01
%
9.55
%
Tier 1 capital to risk-weighted assets
10.92
%
10.69
%
10.38
%
10.02
%
9.55
%
Total capital to risk-weighted assets
12.45
%
12.25
%
11.94
%
11.54
%
11.03
%
Tier 1 capital to average assets
9.12
%
9.35
%
9.83
%
9.49
%
9.29
%
Tangible common equity to total tangible
assets (1)
8.85
%
8.66
%
8.96
%
9.11
%
8.81
%
(1) This press release contains certain
non-GAAP financial measures. Please see “GAAP Reconciliation and
Management Explanation of Non-GAAP Financial Measures.”
(2) Regulatory capital ratios for the most
recent period are preliminary.
GAAP Reconciliation and Management Explanation of Non-GAAP
Financial Measures
This press release contains certain non-GAAP financial measures,
including adjusted net income, adjusted net income available to
common stockholders, adjusted diluted earnings per share, adjusted
return on average assets, adjusted return on average common
stockholders’ equity, and adjusted efficiency ratio. During the
fourth quarter of 2023, we recorded a one-time expense of $7.2
million associated with the FDIC’s special assessment to
recapitalize the Deposit Insurance Fund following bank failures in
the spring of 2023. Additionally, we experienced expenses for the
termination of an EDP contract and related capitalized cost
write-offs resulting in $1.1 million in expenses, and an adjustment
to a privilege tax accrual resulting in a $2.2 million expense. The
EDP contract termination costs were related to a planned systems
conversion that was canceled. We determined the benefits to our
clients were less than expected and the disruption outweighed the
benefits. We can continue to provide best-in-class products with
our current service provider. The adjustment to the privilege tax
accrual was due to an under-accrual in previous years, and the
correction resulted in duplicate expenses for 2023. These expenses
are unusual, or infrequent, in nature and not part of the
noninterest expense run rate. Each of adjusted net income, adjusted
net income available to common stockholders, adjusted diluted
earnings per share, adjusted return on average assets, adjusted
return on average common stockholders’ equity, and adjusted
efficiency ratio excludes the impact of these items, net of tax,
and are all considered non-GAAP financial measures.
This press release also contains the non-GAAP financial measures
of 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 associated with
our acquisition of Metro Bancshares, Inc. in January 2015.
We believe these non-GAAP financial measures provide useful
information to management and investors that is supplementary to
our financial condition, results of operations, and cash flows
computed in accordance with GAAP; however, we acknowledge that
these non-GAAP financial measures have a number of limitations. As
such, you should not view these disclosures as a substitute for
results determined in accordance with GAAP, and they are not
necessarily comparable to non-GAAP financial measures that other
companies, including those in our industry, use. The following
reconciliation table provides a more detailed analysis of the
non-GAAP financial measures as of and for the comparative periods
presented in this press release. Dollars are in thousands, except
share and per share data.
Three Months Ended December 31,
2023
Year Ended December 31, 2023
Net income - GAAP
$
42,074
$
206,853
Adjustments:
FDIC special assessment
7,152
7,152
Privilege tax expense
2,150
2,150
EDP contract termination expense
1,134
1,134
Tax on adjustments
(2,619
)
(2,619
)
Adjusted net income - non-GAAP
$
49,891
$
214,670
Net income available to common
stockholders - GAAP
$
42,043
$
206,791
Adjustments:
FDIC special assessment
7,152
7,152
Privilege tax expense
2,150
2,150
EDP contract termination expense
1,134
1,134
Tax on adjustments
(2,619
)
(2,619
)
Adjusted net income available to common
stockholders -non-GAAP
$
49,860
$
214,608
Diluted earnings per share - GAAP
$
0.77
$
3.79
Adjustments:
FDIC special assessment
0.13
0.13
Privilege tax expense
0.04
0.04
EDP contract termination expense
0.02
0.02
Tax on adjustments
(0.05
)
(0.05
)
Adjusted diluted earnings per share -
non-GAAP
$
0.91
$
3.94
Return on average assets - GAAP
1.04
%
1.37
%
Net income - GAAP
$
42,074
$
206,853
Adjustments:
FDIC special assessment
7,152
7,152
Privilege tax expense
2,150
2,150
EDP contract termination expense
1,134
1,134
Tax on adjustments
(2,619
)
(2,619
)
Adjusted net income available to common
stockholders -non-GAAP
$
49,891
$
214,670
Average assets - GAAP
$
16,122,146
$
15,066,716
Adjusted return on average assets -
non-GAAP
1.23
%
1.42
%
Return on average common stockholders'
equity - GAAP
11.78
%
15.13
%
Net income available to common
stockholders - GAAP
$
42,074
$
206,853
Adjustments:
FDIC special assessment
7,152
7,152
Privilege tax expense
2,150
2,150
EDP contract termination expense
1,134
1,134
Tax on adjustments
(2,619
)
(2,619
)
Adjusted diluted earnings per share -
non-GAAP
$
49,891
$
214,670
Average common stockholders' equity -
GAAP
$
1,415,866
$
1,366,708
Adjusted return on average common
stockholders' equity non-GAAP
13.98
%
15.71
%
Efficiency ratio
55.23
%
40.67
%
Non-interest expense - GAAP
$
56,480
$
176,273
Adjustments:
FDIC special assessment
7,152
7,152
Privilege tax expense
2,150
2,150
EDP contract termination expense
1,134
1,134
Adjusted non-interest expense
$
46,044
$
165,837
Net interest income plus non-interest
income - GAAP
$
109,066
$
441,354
Adjusted efficiency ratio - non-GAAP
42.22
%
37.57
%
At December 31, 2023
At September 30, 2023
At June 30, 2023
At March 31, 2023
At December 31, 2022
Book value per share - GAAP
$
26.45
$
25.75
$
25.05
$
24.63
$
23.89
Total common stockholders' equity -
GAAP
1,440,405
1,401,384
1,363,471
1,339,817
1,297,896
Adjustment for Goodwill
(13,615
)
(13,615
)
(13,615
)
(13,615
)
(13,615
)
Tangible common stockholders' equity -
non-GAAP
$
1,426,790
$
1,387,769
$
1,349,856
$
1,326,202
$
1,284,281
Tangible book value per share -
non-GAAP
$
26.22
$
25.50
$
24.80
$
24.38
$
23.64
Stockholders' equity to total assets -
GAAP
8.93
%
8.73
%
9.05
%
9.20
%
8.89
%
Total assets - GAAP
$
16,129,668
$
16,044,332
$
15,072,808
$
14,566,559
$
14,595,753
Adjustment for Goodwill
(13,615
)
(13,615
)
(13,615
)
(13,615
)
(13,615
)
Total tangible assets - non-GAAP
$
16,116,053
$
16,030,717
$
15,059,193
$
14,552,944
$
14,582,138
Tangible common equity to total tangible
assets - non-GAAP
8.85
%
8.66
%
8.96
%
9.11
%
8.81
%
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands)
December 31, 2023
December 31, 2022
% Change
ASSETS
Cash and due from banks
$
123,430
$
106,317
16
%
Interest-bearing balances due from
depository institutions
1,907,083
708,221
169
%
Federal funds sold
100,575
1,515
6,539
%
Cash and cash equivalents
2,131,088
816,053
161
%
Available for sale debt securities, at
fair value
900,183
644,815
40
%
Held to maturity debt securities (fair
value of $907,191 and $935,953, respectively)
982,664
1,034,121
(5
)%
Restricted equity securities
10,226
7,734
32
%
Mortgage loans held for sale
5,074
1,607
216
%
Loans
11,658,829
11,687,968
-
%
Less allowance for credit losses
(153,317
)
(146,297
)
5
%
Loans, net
11,505,512
11,541,671
-
%
Premises and equipment, net
59,324
59,850
(1
)%
Goodwill
13,615
13,615
-
%
Other assets
521,982
476,287
10
%
Total assets
$
16,129,668
$
14,595,753
11
%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing
$
2,643,101
$
3,321,347
(20
)%
Interest-bearing
10,630,410
8,225,458
29
%
Total deposits
13,273,511
11,546,805
15
%
Federal funds purchased
1,256,724
1,618,798
(22
)%
Other borrowings
64,735
64,726
-
%
Other liabilities
94,293
67,528
40
%
Total liabilities
14,689,263
13,297,857
10
%
Stockholders' equity:
Preferred stock, par value $0.001 per
share; 1,000,000 authorized and undesignated at
December 31, 2023 and December 31,
2022
-
-
-
%
Common stock, par value $0.001 per share;
200,000,000 shares authorized; 54,461,580 shares
issued and outstanding at December 31,
2023, and 54,326,527
shares issued and outstanding at December
31, 2022
54
54
-
%
Additional paid-in capital
232,605
229,693
1
%
Retained earnings
1,254,841
1,109,902
13
%
Accumulated other comprehensive loss
(47,595
)
(42,253
)
13
%
Total stockholders' equity attributable to
ServisFirst Bancshares, Inc.
1,439,905
1,297,396
11
%
Noncontrolling interest
500
500
-
%
Total stockholders' equity
1,440,405
1,297,896
11
%
Total liabilities and stockholders'
equity
$
16,129,668
$
14,595,753
11
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
Three Months Ended December
31,
Year Ended December 31,
2023
2022
2023
2022
Interest income:
Interest and fees on loans
$
184,897
$
153,924
$
699,101
$
499,691
Taxable securities
15,512
10,895
53,499
40,722
Nontaxable securities
12
27
65
137
Federal funds sold
1,018
818
2,844
1,556
Other interest and dividends
27,623
4,609
57,737
17,209
Total interest income
229,062
170,273
813,246
559,315
Interest expense:
Deposits
108,155
33,471
331,740
59,396
Borrowed funds
19,220
14,418
70,569
29,027
Total interest expense
127,375
47,889
402,309
88,423
Net interest income
101,687
122,384
410,937
470,892
Provision for credit losses
3,582
7,135
18,715
37,607
Net interest income after provision for
credit losses
98,105
115,249
392,222
433,285
Non-interest income:
Service charges on deposit accounts
2,181
1,866
8,420
8,033
Mortgage banking
792
514
2,755
2,438
Credit card income
2,004
2,261
8,631
9,917
Securities losses
-
-
-
(6,168
)
Bank-owned life insurance income
1,639
1,600
7,574
6,478
Other operating income
763
725
3,037
12,661
Total non-interest income
7,379
6,966
30,417
33,359
Non-interest expense:
Salaries and employee benefits
23,024
19,230
80,965
77,952
Equipment and occupancy expense
3,860
3,263
14,295
12,319
Third party processing and other
services
7,841
8,170
27,872
27,333
Professional services
1,417
922
5,916
4,277
FDIC and other regulatory assessments
9,509
1,311
15,614
4,565
Other real estate owned expense
17
239
47
295
Other operating expense
12,590
4,957
33,342
31,075
Total non-interest expense
58,258
38,092
178,051
157,816
Income before income tax
47,226
84,123
244,588
308,828
Provision for income tax
5,152
16,399
37,735
57,324
Net income
42,074
67,724
206,853
251,504
Dividends on preferred stock
31
-
62
62
Net income available to common
stockholders
$
42,043
$
67,693
$
206,791
$
251,442
Basic earnings per common share
$
0.77
$
1.25
$
3.80
$
4.63
Diluted earnings per common share
$
0.77
$
1.24
$
3.79
$
4.61
LOANS BY TYPE (UNAUDITED)
(In thousands)
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
4th Quarter 2022
Commercial, financial, and
agricultural
$
2,823,986
$
2,890,535
$
2,986,453
$
3,081,926
$
3,145,317
Real estate - construction
1,519,619
1,509,937
1,397,732
1,469,670
1,532,388
Real estate - mortgage:
Owner-occupied commercial
2,257,163
2,237,684
2,294,002
2,243,436
2,199,280
1-4 family mortgage
1,249,938
1,170,099
1,167,238
1,138,645
1,146,831
Other mortgage
3,744,346
3,766,124
3,686,434
3,624,071
3,597,750
Subtotal: Real estate - mortgage
7,251,447
7,173,907
7,147,674
7,006,152
6,943,861
Consumer
63,777
66,751
73,035
72,054
66,402
Total loans
$
11,658,829
$
11,641,130
$
11,604,894
$
11,629,802
$
11,687,968
SUMMARY OF CREDIT LOSS EXPERIENCE
(UNAUDITED)
(Dollars in thousands)
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
4th Quarter 2022
Allowance for credit losses:
Beginning balance
$
152,247
$
152,272
$
148,965
$
146,297
$
140,967
Loans charged off:
Commercial financial and agricultural
2,831
4,783
4,358
1,257
2,116
Real estate - construction
89
19
-
-
-
Real estate - mortgage
14
-
131
26
-
Consumer
231
341
111
390
200
Total charge offs
3,165
5,143
4,600
1,673
2,316
Recoveries:
Commercial financial and agricultural
614
825
1,233
128
393
Real estate - construction
-
-
-
3
-
Real estate - mortgage
-
-
-
1
-
Consumer
39
11
21
11
118
Total recoveries
653
836
1,254
143
511
Net charge-offs
2,512
4,307
3,346
1,530
1,805
Provision for credit losses
3,582
4,282
6,654
4,197
7,135
Ending balance
$
153,317
$
152,247
$
152,272
$
148,965
$
146,297
Allowance for credit losses to total
loans
1.32
%
1.31
%
1.31
%
1.28
%
1.25
%
Allowance for credit losses to total
average loans
1.32
%
1.31
%
1.31
%
1.28
%
1.27
%
Net charge-offs to total average loans
0.09
%
0.15
%
0.11
%
0.05
%
0.06
%
Provision for credit losses to total
average loans
0.12
%
0.15
%
0.23
%
0.14
%
0.25
%
Nonperforming assets:
Nonaccrual loans
$
19,349
$
20,912
$
16,897
$
13,157
$
12,450
Loans 90+ days past due and accruing
2,184
1,692
5,947
4,683
5,391
Other real estate owned and repossessed
assets
995
690
832
248
248
Total
$
22,528
$
23,294
$
23,676
$
18,088
$
18,089
Nonperforming loans to total loans
0.18
%
0.19
%
0.20
%
0.15
%
0.15
%
Nonperforming assets to total assets
0.14
%
0.15
%
0.16
%
0.12
%
0.12
%
Nonperforming assets to earning assets
0.14
%
0.16
%
0.16
%
0.13
%
0.13
%
Allowance for credit losses to nonaccrual
loans
795.17
%
731.74
%
901.18
%
1,132.24
%
1,175.08
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
4th Quarter 2022
Interest income:
Interest and fees on loans
$
184,897
$
178,754
$
171,718
$
163,732
$
153,924
Taxable securities
15,512
15,522
11,570
10,895
10,895
Nontaxable securities
12
15
17
21
27
Federal funds sold
1,018
985
227
614
818
Other interest and dividends
27,623
17,930
6,124
6,060
4,609
Total interest income
229,062
213,206
189,656
181,322
170,273
Interest expense:
Deposits
108,155
95,901
71,971
55,713
33,471
Borrowed funds
19,220
17,607
16,434
17,308
14,418
Total interest expense
127,375
113,508
88,405
73,021
47,889
Net interest income
101,687
99,698
101,251
108,301
122,384
Provision for credit losses
3,582
4,282
6,654
4,197
7,135
Net interest income after
provision for credit losses
98,105
95,416
94,597
104,104
115,249
Non-interest income:
Service charges on deposit accounts
2,181
2,163
2,142
1,934
1,866
Mortgage banking
792
825
696
442
514
Credit card income
2,004
2,532
2,406
1,689
2,261
Bank-owned life insurance income
1,639
1,818
2,496
1,621
1,600
Other operating income
763
797
842
635
725
Total non-interest income
7,379
8,135
8,582
6,321
6,966
Non-interest expense:
Salaries and employee benefits
23,024
20,080
18,795
19,066
19,230
Equipment and occupancy expense
3,860
3,579
3,421
3,435
3,263
Third party processing and other
services
7,841
6,549
6,198
7,284
8,170
Professional services
1,417
1,265
1,580
1,654
922
FDIC and other regulatory assessments
9,509
2,346
2,242
1,517
1,311
Other real estate owned expense
17
18
6
6
239
Other operating expense
12,590
7,826
6,224
6,702
4,957
Total non-interest expense
58,258
41,663
38,466
39,664
38,092
Income before income tax
47,226
61,888
64,713
70,761
84,123
Provision for income tax
5,152
8,548
11,245
12,790
16,399
Net income
42,074
53,340
53,468
57,971
67,724
Dividends on preferred stock
31
-
31
-
31
Net income available to common
stockholders
$
42,043
$
53,340
$
53,437
$
57,971
$
67,693
Basic earnings per common share
$
0.77
$
0.98
$
0.98
$
1.07
$
1.25
Diluted earnings per common share
$
0.77
$
0.98
$
0.98
$
1.06
$
1.24
AVERAGE BALANCE SHEETS AND NET INTEREST
ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
4th Quarter 2022
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
$
11,580,716
6.33
%
$
11,545,003
6.13
%
$
11,581,008
5.94
%
$
11,632,439
5.70
%
$
11,465,538
5.32
%
Tax-exempt (2)
17,787
4.71
18,023
4.71
18,312
4.82
18,978
3.36
19,526
6.60
Total loans, net of
unearned income
11,598,503
6.32
11,563,026
6.13
11,599,320
5.94
11,651,417
5.70
11,485,064
5.32
Mortgage loans held for sale
5,105
6.22
5,476
6.67
5,014
5.12
1,522
6.40
1,515
3.67
Debt securities:
Taxable
2,007,636
3.08
2,029,995
3.07
1,757,397
2.64
1,724,523
2.54
1,755,764
2.49
Tax-exempt (2)
1,739
2.30
2,408
2.49
2,960
2.43
3,781
2.43
4,863
2.39
Total securities (3)
2,009,375
3.08
2,032,403
3.07
1,760,357
2.64
1,728,304
2.54
1,760,627
2.49
Federal funds sold
72,178
5.60
74,424
5.25
15,908
5.72
50,526
4.93
82,656
3.93
Restricted equity securities
10,216
8.74
8,471
5.90
8,834
6.08
9,919
7.69
7,724
7.35
Interest-bearing balances with banks
1,981,411
5.49
1,293,243
5.45
460,893
5.21
510,021
4.67
458,115
3.83
Total interest-earning assets
$
15,676,788
5.80
$
14,977,043
5.65
$
13,850,326
5.49
$
13,951,709
5.27
$
13,795,701
4.90
Non-interest-earning assets:
Cash and due from banks
101,741
111,566
101,188
106,448
113,823
Net premises and equipment
60,110
60,121
60,499
60,617
60,323
Allowance for credit losses, accrued
interest and other assets
283,435
283,357
279,860
279,775
273,964
Total assets
$
16,122,074
$
15,432,087
$
14,291,873
$
14,398,549
$
14,243,811
Interest-bearing liabilities:
Interest-bearing deposits:
Checking
$
2,245,431
2.91
%
$
2,153,973
2.72
%
$
1,628,936
1.69
%
$
1,675,355
1.25
%
$
1,763,622
0.73
%
Savings
107,035
1.72
112,814
1.61
122,050
1.38
134,671
0.94
141,163
0.64
Money market
7,106,190
4.44
6,538,426
4.24
5,971,639
3.78
5,756,642
3.17
5,047,133
2.07
Time deposits
1,111,350
4.18
1,093,388
3.89
983,582
3.44
850,639
2.51
860,336
1.69
Total interest-bearing deposits
10,570,006
4.06
9,898,601
3.84
8,706,207
3.32
8,417,307
2.68
7,812,254
1.70
Federal funds purchased
1,338,110
5.49
1,237,721
5.43
1,191,582
5.14
1,389,217
4.67
1,453,445
3.75
Other borrowings
64,734
4.23
64,734
4.23
100,998
4.62
114,726
4.61
64,726
4.23
Total interest-bearing liabilities
$
11,972,850
4.22
%
$
11,201,056
4.02
%
$
9,998,787
3.55
%
$
9,921,250
2.98
%
$
9,330,425
2.04
%
Non-interest-bearing liabilities:
Non-interest-bearing
demand deposits
2,656,504
2,778,858
2,876,225
3,086,774
3,572,956
Other liabilities
76,651
72,924
64,917
72,121
77,544
Stockholders' equity
1,475,366
1,437,766
1,399,578
1,358,587
1,307,553
Accumulated other comprehensive
loss
(59,297
)
(58,517
)
(47,634
)
(40,183
)
(44,667
)
Total liabilities and
stockholders' equity
$
16,122,074
$
15,432,087
$
14,291,873
$
14,398,549
$
14,243,811
Net interest spread
1.58
%
1.63
%
1.94
%
2.29
%
2.86
%
Net interest margin
2.57
%
2.64
%
2.93
%
3.15
%
3.52
%
(1)
Average loans include nonaccrual loans in
all periods. Loan fees of $4,175, $2,996, $3,318 $3,263, and $3,630
are included in interest income in the fourth quarter of 2023,
third quarter of 2023, second quarter of 2023, first quarter of
2023, and fourth quarter of 2022, respectively.
(2)
Interest income and yields are presented
on a fully taxable equivalent basis using a tax rate of 21%.
(3)
Unrealized losses on debt securities of
$(84,647), $(83,815), $(69,498), $(59,738), and $(62,568) for the
fourth quarter of 2023, third quarter of 2023, second quarter of
2023, first quarter of 2023, and fourth quarter of 2022,
respectively, are excluded from the yield calculation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240129131808/en/
ServisFirst Bank Davis Mange (205) 949-3420
dmange@servisfirstbank.com
Grafico Azioni ServisFirst Bancshares (NYSE:SFBS)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni ServisFirst Bancshares (NYSE:SFBS)
Storico
Da Dic 2023 a Dic 2024
