ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced
earnings and operating results for the quarter ended June 30,
2024.
Second Quarter 2024 Highlights:
- Diluted EPS grew from $0.92 in the first quarter of 2024 to
$0.95 in the second quarter of 2024.
- Net interest margin increased 13 basis points from the first
quarter of 2024.
- Deposits grew by 16% annualized from the first quarter of
2024 and 8% year-over-year.
- Loans grew by 15% annualized from the first quarter of 2024
and 6% year-over-year.
- Credit quality continues to be strong with non-performing
assets to total assets of 0.23%.
- Liquidity remains strong with over $1.3 billion in cash and
no FHLB advances or brokered deposits.
- Book value per share of $27.71, up 11%
year-over-year.
- Entered the Auburn-Opelika, Alabama market.
Tom Broughton, Chairman, President, and CEO, said, “We were
pleased to add a strong banking team and enter the Auburn-Opelika,
Alabama market during the quarter, and believe it should become one
of our top community banking markets. Loan and deposit growth were
strong throughout our footprint with the addition of new bankers
and serving new and expanded customer relationships.”
Kirk Pressley, CFO, said, “We are happy with the margin
progression and momentum. Our dollar margin increased by $3.4
million from the first quarter, a 13% annualized linked quarter
increase. The net interest margin percentage increased an
impressive 13 basis points to 2.79%.”
FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share
amounts)
Period Ending
June 30, 2024
Period Ending
March 31, 2024
% Change
From
Period Ending
March 31, 2024
to Period Ending
June 30, 2024
Period Ending
June 30, 2023
% Change
From
Period Ending
June 30, 2023
to Period Ending
June 30, 2024
QUARTERLY OPERATING RESULTS
Net Income
$
52,136
$
50,026
4.2
%
$
53,468
(2.5
)%
Net Income Available to Common
Stockholders
$
52,105
$
50,026
4.2
%
$
53,437
(2.5
)%
Diluted Earnings Per Share
$
0.95
$
0.92
3.7
%
$
0.98
(3.1
)%
Return on Average Assets
1.34
%
1.26
%
1.50
%
Return on Average Common Stockholders'
Equity
14.08
%
13.82
%
15.85
%
Average Diluted Shares Outstanding
54,638,118
54,595,384
54,527,317
Adjusted Net Income, net of tax*
$
52,136
$
51,373
1.5
%
$
53,468
(2.5
)%
Adjusted Net Income Available to
Common
Stockholders, net of tax*
$
52,105
$
51,373
1.4
%
$
53,437
(2.5
)%
Adjusted Diluted Earnings Per Share, net
of tax*
$
0.95
$
0.94
1.1
%
$
0.98
(3.1
)%
Adjusted Return on Average Assets, net of
tax*
1.34
%
1.29
%
1.50
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
14.08
%
14.19
%
15.85
%
YEAR-TO-DATE OPERATING RESULTS
Net Income
$
102,162
$
111,439
(8.3
)%
Net Income Available to Common
Stockholders
$
102,131
$
111,408
(8.3
)%
Diluted Earnings Per Share
$
1.87
$
2.04
(8.5
)%
Return on Average Assets
1.30
%
1.57
%
Return on Average Common Stockholders'
Equity
13.96
%
16.83
%
Average Diluted Shares Outstanding
54,616,751
54,520,025
Adjusted Net Income, net of tax*
$
103,509
$
111,439
(7.1
)%
Adjusted Net Income Available to
Common
Stockholders, net of tax*
$
103,478
$
111,408
(7.1
)%
Adjusted Diluted Earnings Per Share, net
of tax*
$
1.89
$
2.04
Adjusted Return on Average Assets, net of
tax*
1.31
%
1.57
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
14.15
%
16.83
%
BALANCE SHEET
Total Assets
$
16,049,814
$
15,721,630
2.1
%
$
15,072,808
6.5
%
Loans
12,332,780
11,880,696
3.8
%
11,604,894
6.3
%
Non-interest-bearing Demand Deposits
2,475,415
2,627,639
(5.8
)%
2,855,102
(13.3
)%
Total Deposits
13,259,392
12,751,448
4.0
%
12,288,219
7.9
%
Stockholders' Equity
1,510,578
1,476,036
2.3
%
1,363,471
10.8
%
* 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.”
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income and net income
available to common stockholders of $52.1 million for the quarter
ended June 30, 2024, compared to net income and net income
available to common stockholders of $50.0 million for the first
quarter of 2024 and net income of $53.5 million and net income
available to common stockholders of $53.4 million for the second
quarter of 2023. Basic and diluted earnings per common share were
$0.96 and $0.95, respectively, in the second quarter of 2024,
compared to $0.92 for both in the first quarter of 2024 and $0.98
for both in the second quarter of 2023.
Annualized return on average assets was 1.34% and annualized
return on average common stockholders’ equity was 14.08% for the
second quarter of 2024, compared to 1.50% and 15.85%, respectively,
for the second quarter of 2023.
Net interest income was $105.9 million for the second quarter of
2024, compared to $102.5 million for the first quarter of 2024 and
$101.3 million for the second quarter of 2023. The net interest
margin in the second quarter of 2024 was 2.79% compared to 2.66% in
the first quarter of 2024 and 2.93% in the second quarter of 2023.
Loan yields were 6.48% during the second quarter of 2024 compared
to 6.40% during the first quarter of 2024 and 5.94% during the
second quarter of 2023. Investment yields were 3.32% during the
second quarter of 2024 compared to 3.16% during the first quarter
of 2024 and 2.64% during the second quarter of 2023. Average
interest-bearing deposit rates were 4.08% during the second quarter
of 2024, compared to 4.04% during the first quarter of 2024 and
3.32% during the second quarter of 2023. Average federal funds
purchased rates were 5.50% during second quarter of 2024, compared
to 5.50% during the first quarter of 2024 and 5.14% during the
second quarter of 2023.
Average loans for the second quarter of 2024 were $12.06
billion, an increase of $322.0 million, or 11.0% annualized, from
average loans of $11.74 billion for the first quarter of 2024, and
an increase of $463.7 million, or 4.0%, from average loans of
$11.60 billion for the second quarter of 2023. Ending total loans
for the second quarter of 2024 were $12.33 billion, an increase of
$452.1 million, or 15.3% annualized, from $11.88 billion for the
first quarter of 2024, and an increase of $727.9 million, or 6.3%,
from $11.60 billion for the second quarter of 2023.
Average total deposits for the second quarter of 2024 were
$12.86 billion, a decrease of $61.0 million, or 1.9% annualized,
from average total deposits of $12.92 billion for the first quarter
of 2024, and an increase of $1.28 billion, or 11.0%, from average
total deposits of $11.58 billion for the second quarter of 2023.
Ending total deposits for the second quarter of 2024 were $13.26
billion, an increase of $507.9 million, or 16.0% annualized, from
$12.75 billion for the first quarter of 2024, and an increase of
$971.2 million, or 7.9%, from $12.29 billion for the second quarter
of 2023.
Non-performing assets to total assets were 0.23% for the second
quarter of 2024, compared to 0.22% for the first quarter of 2024
and 0.16% for the second quarter of 2023. The increase in
non-performing assets to total assets can be attributed to a single
relationship that moved to non-accrual status during the first
quarter of 2024. This loan has been closely monitored and is
well-collateralized. Annualized net charge-offs to average loans
were 0.10% for the second quarter of 2024, compared to 0.06% for
the first quarter of 2024 and 0.11% for the second quarter of 2023.
The allowance for credit losses as a percentage of total loans at
June 30, 2024, March 31, 2024, and June 30, 2023, was 1.28%, 1.31%,
and 1.31%, respectively. We recorded a $5.4 million provision for
credit losses in the second quarter of 2024 compared to $4.4
million in the first quarter of 2024, and $6.7 million in the
second quarter of 2023.
Non-interest income increased $309,000, or 3.6%, to $8.9 million
for the second quarter of 2024 from $8.6 million in the second
quarter of 2023, and increased $78,000, or .9%, on a linked quarter
basis. Service charges on deposit accounts increased $151,000, or
7.0%, to $2.3 million for the second quarter of 2024 from $2.1
million in the second quarter of 2023, and increased $143,000, or
6.7%, on a linked quarter basis. Mortgage banking revenue increased
$683,000, or 98.1%, to $1.4 million for the second quarter of 2024
from $696,000 in the second quarter of 2023, and increased
$701,000, or 103.4%, on a linked quarter basis. The increase in
mortgage banking revenue was primarily attributed to a combination
of favorable market conditions and increased staffing levels. Net
credit card revenue decreased $73,000, or 3.0%, to $2.3 million for
the second quarter of 2024 from $2.4 million in the second quarter
of 2023, and increased $178,000, or 8.3%, on a linked quarter
basis. Bank-owned life insurance (“BOLI”) income decreased
$438,000, or 17.5%, to $2.1 million for the second quarter of 2024
from $2.5 million in the second quarter of 2023, and decreased $1.2
million, or 36.3%, on a linked quarter basis. We recognized $1.2
million of income attributed to a death benefit related to a former
employee in our BOLI program during the first quarter of 2024, and
$890,000 during the second quarter of 2023. Other operating income
decreased $14,000, or 1.7%, to $828,000 for the second quarter of
2024 from $842,000 in the second quarter of 2023, and increased
$229,000, or 38.2%, on a linked quarter basis.
Non-interest expense increased $4.4 million, or 11.3%, to $42.8
million for the second quarter of 2024 from $38.5 million in the
second quarter of 2023, and decreased $3.5 million, or 7.5%, on a
linked quarter basis. During the second quarter of 2024, the
Company recorded the impact from election of the proportional
amortization method to account for historical and new market tax
credit investments made primarily for the purpose of receiving
income tax credits due to our adoption of Accounting Standards
Update 2023-02. The proportional amortization method results in the
cost of the investment being amortized in proportion to the income
tax credits and other income tax benefits received, with the
amortization of the investment and the income tax credits being
presented net in the income statement as a component of income tax
expense. Previously the amortization of the investment was included
in other non-interest expenses. Salary and benefit expense
increased $5.4 million, or 28.8%, to $24.2 million for the second
quarter of 2024 from $18.8 million in the second quarter of 2023,
and increased $1.2 million, or 5.3%, on a linked quarter basis. The
number of FTE employees increased by 48, or 8.3%, to 625 at June
30, 2024 compared to 577 at June 30, 2023, and increased by 20, or
3.3%, from the end of the first quarter of 2024. The increase in
salary and benefit expense year-over-year continues to be largely
due to the normalization of incentives and increased salary
expenses due to an increase in FTE employees. Incentives increased
approximately $2.7 million, and salaries increased approximately
$1.5 million from the second quarter of 2023. Equipment and
occupancy expense increased $146,000, or 4.3%, to $3.6 million for
the second quarter of 2024 from $3.4 million in the second quarter
of 2023, and increased $10,000, or .3%, on a linked quarter basis.
Third party processing and other services expense increased $1.3
million, or 20.4%, to $7.5 million for the second quarter of 2024
from $6.2 million in the second quarter of 2023, and increased
$299,000, or 4.2%, on a linked quarter basis. Professional services
expense increased $161,000, or 10.2%, to $1.7 million for the
second quarter of 2024 from $1.6 million in the second quarter of
2023, and increased $277,000, or 18.9%, on a linked quarter basis.
FDIC and other regulatory assessments decreased $40,000, or 1.8%,
to $2.2 million for the second quarter of 2024 from $2.2 million in
the second quarter of 2023, and decreased $1.7 million, or 43.6%,
on a linked quarter basis. In the first quarter of 2024, the FDIC
implemented a special assessment adjustment to recapitalize the
Deposit Insurance Fund resulting in an expense of $1.8 million. See
“GAAP Reconciliation and Management Explanation of Non-GAAP
Financial Measures”. Other operating expenses decreased $2.6
million, or 41.8%, to $3.6 million for the second quarter of 2024
from $6.2 million in the second quarter of 2023, and decreased $3.6
million, or 49.6%, on a linked quarter basis. The decrease in other
operating expenses were largely due to the application of the
proportional amortization method to account for historical and new
market tax credit investments, discussed above. The efficiency
ratio was 37.31% during the second quarter of 2024 compared to
35.02% during the second quarter of 2023 and 43.30% during the
first quarter of 2024.
Income tax expense increased $3.2 million, or 28.6%, to $14.5
million in the second quarter of 2024, compared to $11.2 million in
the second quarter of 2023. Our effective tax rate was 21.71% for
the second quarter of 2024 compared to 17.38% for the second
quarter of 2023. We recognized a reduction in provision for income
taxes resulting from excess tax benefits from the exercise and
vesting of stock options and restricted stock during the second
quarters of 2024 and 2023 of $396,000 and $138,000,
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 and Tennessee. Through the
ServisFirst 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; 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 or re-emerging 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. 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
2024, 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)
2nd quarter
2024
1st quarter
2024
4th quarter
2023
3rd quarter
2023
2nd quarter
2023
CONSOLIDATED STATEMENT OF INCOME
Interest income
$
227,540
$
226,710
$
229,062
$
213,206
$
189,656
Interest expense
121,665
124,215
127,375
113,508
88,405
Net interest income
105,875
102,495
101,687
99,698
101,251
Provision for credit losses
5,353
4,368
3,582
4,282
6,654
Net interest income after provision for
credit losses
100,522
98,127
98,105
95,416
94,597
Non-interest income
8,891
8,813
7,379
8,135
8,582
Non-interest expense
42,818
46,303
58,258
41,663
38,466
Income before income tax
66,595
60,637
47,226
61,888
64,713
Provision for income tax
14,459
10,611
5,152
8,548
11,245
Net income
52,136
50,026
42,074
53,340
53,468
Preferred stock dividends
31
-
31
-
31
Net income available to common
stockholders
$
52,105
$
50,026
$
42,043
$
53,340
$
53,437
Earnings per share - basic
$
0.96
$
0.92
$
0.77
$
0.98
$
0.98
Earnings per share - diluted
$
0.95
$
0.92
$
0.77
$
0.98
$
0.98
Average diluted shares outstanding
54,638,118
54,595,384
54,548,719
54,530,635
54,527,317
CONSOLIDATED BALANCE SHEET DATA
Total assets
$
16,049,814
$
15,721,630
$
16,129,668
$
16,044,332
$
15,072,808
Loans
12,332,780
11,880,696
11,658,829
11,641,130
11,604,894
Debt securities
1,941,647
1,941,625
1,882,847
1,878,701
2,048,227
Non-interest-bearing demand deposits
2,475,415
2,627,639
2,643,101
2,621,072
2,855,102
Total deposits
13,259,392
12,751,448
13,273,511
13,142,376
12,288,219
Borrowings
64,739
64,737
64,735
64,751
64,737
Stockholders' equity
1,510,578
1,476,036
1,440,405
1,401,384
1,363,471
Shares outstanding
54,522,802
54,507,778
54,461,580
54,425,447
54,425,033
Book value per share
$
27.71
$
27.08
$
26.45
$
25.75
$
25.05
Tangible book value per share (1)
$
27.46
$
26.83
$
26.20
$
25.50
$
24.80
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin
2.79
%
2.66
%
2.57
%
2.64
%
2.93
%
Return on average assets
1.34
%
1.26
%
1.04
%
1.37
%
1.50
%
Return on average common stockholders'
equity
14.08
%
13.82
%
11.78
%
15.34
%
15.85
%
Efficiency ratio
37.31
%
43.30
%
55.23
%
38.64
%
35.02
%
Non-interest expense to average earning
assets
1.13
%
1.20
%
1.47
%
1.10
%
1.11
%
CAPITAL RATIOS (2)
Common equity tier 1 capital to
risk-weighted assets
10.93
%
11.07
%
10.91
%
10.69
%
10.37
%
Tier 1 capital to risk-weighted assets
10.93
%
11.08
%
10.92
%
10.69
%
10.38
%
Total capital to risk-weighted assets
12.43
%
12.61
%
12.45
%
12.25
%
11.94
%
Tier 1 capital to average assets
9.81
%
9.44
%
9.12
%
9.35
%
9.83
%
Tangible common equity to total tangible
assets (1)
9.33
%
9.31
%
8.85
%
8.66
%
8.96
%
(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 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. This assessment was updated in the first
quarter of 2024 resulting in additional expense of $1.8 million.
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.
At June 30,
2024
At March 31,
2024
At December 31,
2023
At September 30,
2023
At June 30,
2023
Book value per share - GAAP
$
27.71
$
27.08
$
26.45
$
25.75
$
25.05
Total common stockholders' equity -
GAAP
1,510,578
1,476,036
1,440,405
1,401,384
1,363,471
Adjustment for Goodwill
(13,615
)
(13,615
)
(13,615
)
(13,615
)
(13,615
)
Tangible common stockholders' equity -
non-GAAP
$
1,496,963
$
1,462,421
$
1,426,790
$
1,387,769
$
1,349,856
Tangible book value per share -
non-GAAP
$
27.46
$
26.83
$
26.22
$
25.50
$
24.80
Stockholders' equity to total assets -
GAAP
9.41
%
9.39
%
8.93
%
8.73
%
9.05
%
Total assets - GAAP
$
16,049,814
$
16,048,819
$
16,129,668
$
16,044,332
$
15,072,808
Adjustment for Goodwill
(13,615
)
(13,615
)
(13,615
)
(13,615
)
(13,615
)
Total tangible assets - non-GAAP
$
16,036,199
$
16,035,204
$
16,116,053
$
16,030,717
$
15,059,193
Tangible common equity to total tangible
assets - non-GAAP
9.33
%
9.33
%
8.85
%
8.66
%
8.96
%
Three Months
Ended
June 30, 2024
Three Months
Ended
March 31, 2024
Three Months
Ended
June 30, 2023
Six Months
Ended
June 30, 2024
Six Months
Ended
June 30, 2023
Net income - GAAP
$
52,136
$
50,026
$
53,468
$
102,162
$
111,439
Adjustments:
FDIC special assessment
-
1,799
-
1,799
-
Tax on adjustments
-
(452
)
-
(452
)
-
Adjusted net income - non-GAAP
$
52,136
$
51,373
$
53,468
$
103,509
$
111,439
Net income available to common
stockholders - GAAP
$
52,105
$
50,026
$
53,437
$
102,131
$
111,408
Adjustments:
FDIC special assessment
-
1,799
-
1,799
-
Tax on adjustments
-
(452
)
-
(452
)
-
Adjusted net income available to common
stockholders -non-GAAP
$
52,105
$
51,373
$
53,437
$
103,478
$
111,408
Diluted earnings per share - GAAP
$
0.95
$
0.92
$
0.98
$
1.87
$
2.04
Adjustments:
FDIC special assessment
-
0.03
-
0.03
-
Tax on adjustments
-
(0.01
)
-
(0.01
)
-
Adjusted diluted earnings per share -
non-GAAP
$
0.95
$
0.94
$
0.98
$
1.89
$
2.04
Return on average assets - GAAP
1.34
%
1.26
%
1.50
%
1.30
%
1.57
%
Net income available to common
stockholders - GAAP
$
52,105
$
50,026
$
53,437
$
102,131
$
111,408
Adjustments:
FDIC special assessment
-
1,799
-
1,799
-
Tax on adjustments
-
(452
)
-
(452
)
-
Adjusted net income available to common
stockholders -non-GAAP
$
52,105
$
51,373
$
53,437
$
103,478
$
111,408
Average assets - GAAP
$
15,697,538
$
15,957,579
$
14,291,873
$
15,827,894
$
14,344,749
Adjusted return on average assets -
non-GAAP
1.34
%
1.29
%
1.50
%
1.31
%
1.57
%
Return on average common stockholders'
equity - GAAP
14.08
%
13.82
%
15.85
%
13.96
%
16.83
%
Net income available to common
stockholders - GAAP
$
52,105
$
50,026
$
53,437
$
102,131
$
111,408
Adjustments:
FDIC special assessment
-
1,799
-
1,799
-
Tax on adjustments
-
(452
)
-
(452
)
-
Adjusted diluted earnings per share -
non-GAAP
$
52,105
$
51,373
$
53,437
$
103,478
$
111,408
Average common stockholders' equity -
GAAP
$
1,488,429
$
1,455,938
$
1,351,944
$
1,471,048
$
1,335,267
Adjusted return on average common
stockholders' equity non-GAAP
14.08
%
14.19
%
15.85
%
14.15
%
16.83
%
Efficiency ratio
37.31
%
55.23
%
35.02
%
39.42
%
34.81
%
Non-interest expense - GAAP
$
42,818
$
46,303
$
38,466
$
89,121
$
78,130
Adjustments:
FDIC special assessment
-
1,799
-
1,799
-
Adjusted non-interest expense
$
42,818
$
44,504
$
38,466
$
87,322
$
78,130
Net interest income plus non-interest
income - GAAP
$
114,766
$
111,308
$
109,833
$
226,074
$
224,455
Adjusted efficiency ratio - non-GAAP
37.31
%
39.98
%
35.02
%
38.63
%
34.81
%
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands)
June 30, 2024
June 30, 2023
% Change
ASSETS
Cash and due from banks
$
135,711
$
107,251
27
%
Interest-bearing balances due from
depository institutions
1,129,922
852,483
33
%
Federal funds sold
11,132
17,958
(38
)%
Cash and cash equivalents
1,276,765
977,692
31
%
Available for sale debt securities, at
fair value
1,174,389
990,921
19
%
Held to maturity debt securities (fair
value of $684,235 and $963,843, respectively)
767,258
1,057,306
(27
)%
Restricted equity securities
11,300
7,307
55
%
Mortgage loans held for sale
11,174
3,981
181
%
Loans
12,332,780
11,604,894
6
%
Less allowance for credit losses
(158,092
)
(152,272
)
4
%
Loans, net
12,174,688
11,452,622
6
%
Premises and equipment, net
59,200
59,655
(1
)%
Goodwill
13,615
13,615
-
%
Other assets
561,425
509,709
10
%
Total assets
$
16,049,814
$
15,072,808
6
%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing demand
$
2,475,415
$
2,855,102
(13
)%
Interest-bearing
10,783,977
9,433,117
14
%
Total deposits
13,259,392
12,288,219
8
%
Federal funds purchased
1,097,154
1,298,066
(15
)%
Other borrowings
64,739
64,737
-
%
Other liabilities
117,951
58,315
102
%
Total liabilities
14,539,236
13,709,337
6
%
Stockholders' equity:
Preferred stock, par value $0.001 per
share; 1,000,000 authorized and undesignated at June 30, 2024 and
June 30, 2023
-
-
-
%
Common stock, par value $0.001 per share;
200,000,000 shares authorized; 54,522,802 shares issued and
outstanding at June 30, 2024, and 54,398,025 shares issued and
outstanding at June 30, 2023
54
54
-
%
Additional paid-in capital
234,495
230,659
2
%
Retained earnings
1,322,049
1,190,920
11
%
Accumulated other comprehensive loss
(46,520
)
(58,662
)
(21
)%
Total stockholders' equity attributable to
ServisFirst Bancshares, Inc.
1,510,078
1,362,971
11
%
Noncontrolling interest
500
500
-
%
Total stockholders' equity
1,510,578
1,363,471
11
%
Total liabilities and stockholders'
equity
$
16,049,814
$
15,072,808
6
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Interest income:
Interest and fees on loans
$
194,300
$
171,718
$
381,278
$
335,450
Taxable securities
16,158
11,570
32,137
22,465
Nontaxable securities
9
17
18
38
Federal funds sold
538
227
1,079
841
Other interest and dividends
16,535
6,124
39,738
12,184
Total interest income
227,540
189,656
454,250
370,978
Interest expense:
Deposits
104,671
71,971
208,737
127,684
Borrowed funds
16,994
16,434
37,143
33,742
Total interest expense
121,665
88,405
245,880
161,426
Net interest income
105,875
101,251
208,370
209,552
Provision for credit losses
5,353
6,654
9,721
10,851
Net interest income after provision for
credit losses
100,522
94,597
198,649
198,701
Non-interest income:
Service charges on deposit accounts
2,293
2,142
4,443
4,076
Mortgage banking
1,379
696
2,057
1,138
Credit card income
2,333
2,406
4,488
4,095
Bank-owned life insurance income
2,058
2,496
5,289
4,117
Other operating income
828
842
1,427
1,477
Total non-interest income
8,891
8,582
17,704
14,903
Non-interest expense:
Salaries and employee benefits
24,213
18,795
47,199
37,861
Equipment and occupancy expense
3,567
3,421
7,124
6,856
Third party processing and other
services
7,465
6,198
14,631
13,482
Professional services
1,741
1,580
3,205
3,234
FDIC and other regulatory assessments
2,202
2,242
6,107
3,759
Other real estate owned expense
7
6
37
12
Other operating expense
3,623
6,224
10,818
12,926
Total non-interest expense
42,818
38,466
89,121
78,130
Income before income tax
66,595
64,713
127,232
135,474
Provision for income tax
14,459
11,245
25,070
24,035
Net income
52,136
53,468
102,162
111,439
Dividends on preferred stock
31
-
31
31
Net income available to common
stockholders
$
52,105
$
53,437
$
102,131
$
111,408
Basic earnings per common share
$
0.96
$
0.98
$
1.87
$
2.05
Diluted earnings per common share
$
0.95
$
0.98
$
1.87
$
2.04
LOANS BY TYPE (UNAUDITED)
(In thousands)
2nd Quarter 2024
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
Commercial, financial and agricultural
$
2,935,577
$
2,834,102
$
2,823,986
$
2,890,535
$
2,986,453
Real estate - construction
1,510,677
1,546,716
1,519,619
1,509,937
1,397,732
Real estate - mortgage:
Owner-occupied commercial
2,399,644
2,377,042
2,257,163
2,237,684
2,294,002
1-4 family mortgage
1,350,428
1,284,888
1,249,938
1,170,099
1,167,238
Other mortgage
4,072,007
3,777,758
3,744,346
3,766,124
3,686,434
Subtotal: Real estate - mortgage
7,822,079
7,439,688
7,251,447
7,173,907
7,147,674
Consumer
64,447
60,190
63,777
66,751
73,035
Total loans
$
12,332,780
$
11,880,696
$
11,658,829
$
11,641,130
$
11,604,894
SUMMARY OF CREDIT LOSS EXPERIENCE
(UNAUDITED)
(Dollars in thousands)
2nd Quarter
2024
1st Quarter
2024
4th Quarter
2023
3rd Quarter
2023
2nd Quarter
2023
Allowance for credit losses:
Beginning balance
$
155,892
$
153,317
$
152,247
$
152,272
$
148,965
Loans charged off:
Commercial financial and agricultural
3,355
1,842
2,831
4,783
4,358
Real estate - construction
-
-
89
19
-
Real estate - mortgage
119
67
14
-
131
Consumer
108
98
231
341
111
Total charge offs
3,582
2,007
3,165
5,143
4,600
Recoveries:
Commercial financial and agricultural
406
199
614
825
1,233
Real estate - construction
8
-
-
-
-
Real estate - mortgage
-
6
-
-
-
Consumer
15
9
39
11
21
Total recoveries
429
214
653
836
1,254
Net charge-offs
3,153
1,793
2,512
4,307
3,346
Provision for credit losses
5,353
4,368
3,582
4,282
6,654
Ending balance
$
158,092
$
155,892
$
153,317
$
152,247
$
152,272
Allowance for credit losses to total
loans
1.28
%
1.31
%
1.32
%
1.31
%
1.31
%
Allowance for credit losses to total
average loans
1.31
%
1.33
%
1.32
%
1.31
%
1.31
%
Net charge-offs to total average loans
0.10
%
0.06
%
0.09
%
0.15
%
0.11
%
Provision for credit losses to total
average loans
0.18
%
0.15
%
0.12
%
0.15
%
0.23
%
Nonperforming assets:
Nonaccrual loans
$
33,454
$
34,457
$
19,349
$
20,912
$
16,897
Loans 90+ days past due and accruing
1,482
380
2,184
1,692
5,947
Other real estate owned and repossessed
assets
1,458
490
995
690
832
Total
$
36,394
$
35,327
$
22,528
$
23,294
$
23,676
Nonperforming loans to total loans
0.28
%
0.29
%
0.18
%
0.19
%
0.20
%
Nonperforming assets to total assets
0.23
%
0.22
%
0.14
%
0.15
%
0.16
%
Nonperforming assets to earning assets
0.23
%
0.23
%
0.14
%
0.16
%
0.16
%
Allowance for credit losses to nonaccrual
loans
472.57
%
452.42
%
795.17
%
731.74
%
901.18
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
2nd quarter
2024
1st quarter
2024
4th quarter
2023
3rd quarter
2023
2nd quarter
2023
Interest income:
Interest and fees on loans
$
194,300
$
186,978
$
184,897
$
178,754
$
171,718
Taxable securities
16,158
15,979
15,512
15,522
11,570
Nontaxable securities
9
9
12
15
17
Federal funds sold
538
541
1,018
985
227
Other interest and dividends
16,535
23,203
27,623
17,930
6,124
Total interest income
227,540
226,710
229,062
213,206
189,656
Interest expense:
Deposits
104,671
104,066
108,155
95,901
71,971
Borrowed funds
16,994
20,149
19,220
17,607
16,434
Total interest expense
121,665
124,215
127,375
113,508
88,405
Net interest income
105,875
102,495
101,687
99,698
101,251
Provision for credit losses
5,353
4,368
3,582
4,282
6,654
Net interest income after provision for
credit losses
100,522
98,127
98,105
95,416
94,597
Non-interest income:
Service charges on deposit accounts
2,293
2,150
2,181
2,163
2,142
Mortgage banking
1,379
678
792
825
696
Credit card income
2,333
2,155
2,004
2,532
2,406
Bank-owned life insurance income
2,058
3,231
1,639
1,818
2,496
Other operating income
828
599
763
797
842
Total non-interest income
8,891
8,813
7,379
8,135
8,582
Non-interest expense:
Salaries and employee benefits
24,213
22,986
23,024
20,080
18,795
Equipment and occupancy expense
3,567
3,557
3,860
3,579
3,421
Third party processing and other
services
7,465
7,166
7,841
6,549
6,198
Professional services
1,741
1,464
1,417
1,265
1,580
FDIC and other regulatory assessments
2,202
3,905
9,509
2,346
2,242
Other real estate owned expense
7
30
17
18
6
Other operating expense
3,623
7,195
12,590
7,826
6,224
Total non-interest expense
42,818
46,303
58,258
41,663
38,466
Income before income tax
66,595
60,637
47,226
61,888
64,713
Provision for income tax
14,459
10,611
5,152
8,548
11,245
Net income
52,136
50,026
42,074
53,340
53,468
Dividends on preferred stock
31
-
31
-
31
Net income available to common
stockholders
$
52,105
$
50,026
$
42,043
$
53,340
$
53,437
Basic earnings per common share
$
0.96
$
0.92
$
0.77
$
0.98
$
0.98
Diluted earnings per common share
$
0.95
$
0.92
$
0.77
$
0.98
$
0.98
AVERAGE BALANCE SHEETS AND NET INTEREST
ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
2nd quarter 2024
1st quarter 2024
4th quarter 2023
3rd quarter 2023
2nd quarter 2023
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
$
12,045,743
6.48
%
$
11,723,391
6.41
%
$
11,580,716
6.33
%
$
11,545,003
6.13
%
$
11,581,008
5.94
%
Tax-exempt (2)
17,230
2.08
17,605
5.00
17,787
4.71
18,023
4.71
18,312
4.82
Total loans, net of unearned income
12,062,973
6.48
11,740,996
6.40
11,598,503
6.32
11,563,026
6.13
11,599,320
5.94
Mortgage loans held for sale
6,761
6.13
4,770
5.57
5,105
6.22
5,476
6.67
5,014
5.12
Debt securities:
Taxable
1,936,818
3.33
2,013,295
3.16
2,007,636
3.08
2,029,995
3.07
1,757,397
2.64
Tax-exempt (2)
1,209
1.99
1,296
3.40
1,739
2.30
2,408
2.49
2,960
2.43
Total securities (3)
1,938,027
3.32
2,014,591
3.16
2,009,375
3.08
2,032,403
3.07
1,760,357
2.64
Federal funds sold
38,475
5.62
37,298
5.83
72,178
5.60
74,424
5.25
15,908
5.72
Restricted equity securities
11,290
7.16
10,417
7.57
10,216
8.74
8,471
5.90
8,834
6.08
Interest-bearing balances with banks
1,183,482
5.57
1,687,977
5.48
1,981,411
5.49
1,293,243
5.45
460,893
5.21
Total interest-earning assets
$
15,241,008
6.01
$
15,496,049
5.88
$
15,676,788
5.80
$
14,977,043
5.65
$
13,850,326
5.49
Non-interest-earning assets:
Cash and due from banks
96,646
98,813
101,741
111,566
101,188
Net premises and equipment
59,653
60,126
60,110
60,121
60,499
Allowance for credit losses, accrued
interest and other assets
300,231
302,592
283,435
283,357
279,860
Total assets
$
15,697,538
$
15,957,580
$
16,122,074
$
15,432,087
$
14,291,873
Interest-bearing liabilities:
Interest-bearing deposits:
Checking
$
2,232,460
2.84
%
$
2,339,548
2.69
%
$
2,245,431
2.91
%
$
2,153,973
2.72
%
$
1,628,936
1.69
%
Savings
105,955
1.71
106,924
1.76
107,035
1.72
112,814
1.61
122,050
1.38
Money market
6,810,799
4.46
6,761,495
4.48
7,106,190
4.44
6,538,426
4.24
5,971,639
3.78
Time deposits
1,157,528
4.47
1,164,204
4.37
1,111,350
4.18
1,093,388
3.89
983,582
3.44
Total interest-bearing deposits
10,306,742
4.08
10,372,171
4.04
10,570,006
4.06
9,898,601
3.84
8,706,207
3.32
Federal funds purchased
1,193,190
5.50
1,422,828
5.50
1,338,110
5.49
1,237,721
5.43
1,191,582
5.14
Other borrowings
64,736
4.26
64,736
4.26
64,734
4.23
64,734
4.23
100,998
4.62
Total interest-bearing liabilities
$
11,564,668
4.23
%
$
11,859,735
4.21
%
$
11,972,850
4.22
%
$
11,201,056
4.02
%
$
9,998,787
3.55
%
Non-interest-bearing liabilities:
Non-interest-bearing checking
2,555,312
2,550,841
2,656,504
2,778,858
2,876,225
Other liabilities
89,130
91,066
76,651
72,924
64,917
Stockholders' equity
1,536,013
1,503,240
1,475,366
1,437,766
1,399,578
Accumulated other comprehensive
loss
(47,584
)
(47,302
)
(59,297
)
(58,517
)
(47,634
)
Total liabilities and stockholders'
equity
$
15,697,538
$
15,957,580
$
16,122,074
$
15,432,087
$
14,291,873
Net interest spread
1.78
%
1.67
%
1.58
%
1.63
%
1.94
%
Net interest margin
2.79
%
2.66
%
2.57
%
2.64
%
2.93
%
(1) Average loans include nonaccrual loans
in all periods. Loan fees of $3,317, $3,655, $4,175, $2,996, and
$3,318 are included in interest income in the second quarter of
2024, first quarter of 2024, fourth quarter of 2023, third quarter
of 2023, and second quarter of 2023, 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 $(67,823), $(68,162), $(84,647), $(83,815), and $(69,498) for
the second quarter of 2024, first quarter of 2024, fourth quarter
of 2023, third quarter of 2023, and second quarter of 2023,
respectively, are excluded from the yield calculation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240715801485/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
