ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced
earnings and operating results for the quarter ended March 31,
2024.
First Quarter 2024 Highlights:
- Loans grew by 8% annualized for the first quarter of
2024.
- Net interest margin increased to 2.66% for the first quarter
of 2024 from 2.57% for the fourth quarter of 2023.
- Credit quality continues to be strong with non-performing
assets to total assets of 0.22%.
- Deposits grew 10% year-over-year.
- Book value per share of $27.08, up 10% from the first
quarter of 2023.
Tom Broughton, Chairman, President, and CEO, said, “We hired
nine new bankers during the first quarter after seven in the fourth
quarter and we continue to attract the best talent in the industry
in the Southeast.”
Kirk Pressley, CFO, said, “We are pleased to have stabilized our
funding costs, which will continue to improve our net interest
margin. Our expenses remain tightly controlled, as evidenced by our
efficiency ratio, which we believe continues to be among the lowest
of all commercial banks.”
FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share
amounts)
Period Ending March 31, 2024
Period Ending December 31,
2023
% Change From Period Ending
December 31, 2023 to Period Ending March 31, 2024
Period Ending March 31, 2023
% Change From Period Ending March
31, 2023 to Period Ending March 31, 2024
QUARTERLY OPERATING RESULTS
Net Income
$
50,026
$
42,074
18.9
%
$
57,971
(13.7
)%
Net Income Available to Common
Stockholders
$
50,026
$
42,043
19.0
%
$
57,971
(13.7
)%
Diluted Earnings Per Share
$
0.92
$
0.77
19.4
%
$
1.06
(13.4
)%
Return on Average Assets
1.26
%
1.04
%
1.63
%
Return on Average Common Stockholders'
Equity
13.82
%
11.78
%
17.83
%
Average Diluted Shares Outstanding
54,595,384
54,548,719
54,534,482
Adjusted Net Income, net of tax*
$
51,373
$
49,891
3.0
%
$
57,971
(11.4
)%
Adjusted Net Income Available to
Common
Stockholders, net of tax*
$
51,373
$
49,860
3.0
%
$
57,971
(11.4
)%
Adjusted Diluted Earnings Per Share, net
of tax*
$
0.94
$
0.91
2.7
%
$
1.06
(11.7
)%
Adjusted Return on Average Assets, net of
tax*
1.29
%
1.23
%
1.63
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
14.19
%
13.98
%
17.83
%
BALANCE SHEET
Total Assets
$
15,721,630
$
16,129,668
(2.5
)%
$
14,566,559
7.9
%
Loans
11,880,696
11,658,829
1.9
%
11,629,802
2.2
%
Non-interest-bearing Demand Deposits
2,627,639
2,643,101
(0.6
)%
2,898,736
(9.4
)%
Total Deposits
12,751,448
13,273,511
(3.9
)%
11,615,317
9.8
%
Stockholders' Equity
1,476,036
1,440,405
2.5
%
1,339,817
10.2
%
* 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 $50.0 million for the quarter
ended March 31, 2024, compared to net income of $42.1 million and
net income available to common stockholders of $42.0 million for
the fourth quarter of 2023 and net income and net income available
to common stockholders of $58.0 million for the first quarter of
2023. Basic and diluted earnings per common share were both $0.92
in the first quarter of 2024, compared to $0.77 for both in the
fourth quarter of 2023 and $1.07 and $1.06, respectively, in the
first quarter of 2023.
Annualized return on average assets was 1.26% and annualized
return on average common stockholders’ equity was 13.82% for the
first quarter of 2024, compared to 1.63% and 17.83%, respectively,
for the first quarter of 2023.
Net interest income was $102.5 million for the first quarter of
2024, compared to $101.7 million for the fourth quarter of 2023 and
$108.3 million for the first quarter of 2023. The net interest
margin in the first quarter of 2024 was 2.66% compared to 2.57% in
the fourth quarter of 2023 and 3.15% in the first quarter of 2023.
Loan yields were 6.40% during the first quarter of 2024 compared to
6.32% during the fourth quarter of 2023 and 5.70% during the first
quarter of 2023. Investment yields were 3.16% during the first
quarter of 2024 compared to 3.08% during the fourth quarter of 2023
and 2.54% during the first quarter of 2023. Average
interest-bearing deposit rates were 4.04% during the first quarter
of 2024, compared to 4.06% during the fourth quarter of 2023 and
2.68% during the first quarter of 2023. Average federal funds
purchased rates were 5.50% during first quarter of 2024, compared
to 5.49% during the fourth quarter of 2023 and 4.67% during the
first quarter of 2023.
Average loans for the first quarter of 2024 were $11.74 billion,
an increase of $142.5 million, or 4.9% annualized, from average
loans of $11.60 billion for the fourth quarter of 2023, and an
increase of $89.6 million, or 0.8%, from average loans of $11.65
billion for the first quarter of 2023. Ending total loans for the
first quarter of 2024 were $11.88 billion, an increase of $221.9
million, or 1.9%, from $11.66 billion for the fourth quarter of
2023, and an increase of $250.9 million, or 2.2%, from $11.63
billion for the first quarter of 2023.
Average total deposits for the first quarter of 2024 were $12.92
billion, a decrease of $0.30 billion, or 9.2% annualized, over
average total deposits of $13.23 billion for the fourth quarter of
2023, and an increase of $1.42 billion, or 12.3%, from average
total deposits of $11.50 billion for the first quarter of 2023.
Ending total deposits for the first quarter of 2024 were $12.75
billion, a decrease of $522.1 million, or 3.9%, from $13.27 billion
for the fourth quarter of 2023, and an increase of $1.1 billion, or
9.8%, from $11.62 billion for the first quarter of 2023. The
decline in our deposits over the last quarter can be partly
attributed to our strategic decision to move away from high-cost
and non-core deposits.
Non-performing assets to total assets were 0.22% for the first
quarter of 2024, compared to 0.14% for the fourth quarter of 2023
and 0.12% for the first 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 0.06% for the first quarter of 2024, compared to 0.09% for the
fourth quarter of 2023 and 0.05% first quarter of 2023. The
allowance for credit losses as a percentage of total loans at March
31, 2024, December 31, 2023, and March 31, 2023, was 1.31%, 1.32%,
and 1.28%, respectively. We recorded a $4.4 million provision for
credit losses in the first quarter of 2024 compared to $3.6 million
in the fourth quarter of 2023, and $4.2 million in the first
quarter of 2023.
Non-interest income increased $2.5 million, or 39.4%, to $8.8
million for the first quarter of 2024 from $6.3 million in the
first quarter of 2023, and increased $1.4 million, or 19.4%, on a
linked quarter basis. Service charges on deposit accounts increased
$216,000, or 11.2%, to $2.2 million for the first quarter of 2024
from $1.9 million in the first quarter of 2023, and decreased
$31,000, or 1.4%, on a linked quarter basis. Mortgage banking
revenue increased $236,000, or 53.4%, to $678,000 for the first
quarter of 2024 from $442,000 in the first quarter of 2023, and
decreased $114,000, or 14.4%, on a linked quarter basis. Net credit
card revenue increased $466,000, or 27.6%, to $2.2 million for the
first quarter of 2024 from $1.7 million in the first quarter of
2023, and increased $151,000, or 7.5%, on a linked quarter basis.
Bank-owned life insurance (“BOLI”) income increased $1.6 million,
or 99.3%, to $3.2 million for the first quarter of 2024 from $1.6
million in the first quarter of 2023, and increased $1.6 million,
or 97.1%, on a linked quarter basis. During the first quarter of
2024, we recognized $1.2 million of income attributed to a death
benefit related to a former employee in our BOLI program. Other
operating income decreased $36,000, or 5.7%, to $599,000 for the
first quarter of 2024 from $635,000 in the first quarter of 2023,
and decreased $164,000, or 21.5%, on a linked quarter basis.
Merchant service revenue increased $53,000, or 11.7%, to $508,000
for the first quarter of 2024 from $455,000 in the first quarter of
2023.
Non-interest expense increased $6.6 million, or 16.7%, to $46.3
million for the first quarter of 2024 from $39.7 million in the
first quarter of 2023, and decreased $12.0 million, or 20.5%, on a
linked quarter basis. Salary and benefit expense increased $3.9
million, or 20.6%, to $23.0 million for the first quarter of 2024
from $19.1 million in the first quarter of 2023, and decreased
$38,000, or 0.2%, on a linked quarter basis.. The number of FTE
employees increased by 32, or 5.6%, to 605 at March 31, 2024
compared to 573 at March 31, 2023, and increased by 14, or 2.4%,
from the end of the fourth quarter of 2023. The increase in salary
and benefit expense from the first quarter of 2023 is largely due
to the normalization of incentives and increased salary expenses
due to an increase in FTE employees. Incentives increased
approximately $2.8 million, and salaries increased approximately
$1.0 million from the first quarter of 2023. Equipment and
occupancy expense increased $122,000, or 3.6%, to $3.6 million for
the first quarter of 2024 from $3.4 million in the first quarter of
2023, and decreased $303,000, or 7.8%, on a linked quarter basis.
Third party processing and other services expense decreased
$118,000, or 1.6%, to $7.2 million for the first quarter of 2024
from $7.3 million in the first quarter of 2023, and decreased
$675,000, or 8.6%, on a linked quarter basis. Professional services
expense decreased $190,000, or 11.5%, to $1.5 million for the first
quarter of 2024 from $1.7 million in the first quarter of 2023, and
increased $47,000, or 3.3%, on a linked quarter basis. FDIC and
other regulatory assessments increased $2.4 million, or 157.4%, to
$3.9 million for the first quarter of 2024 from $1.5 million in the
first quarter of 2023, and decreased $5.6 million, or 58.9%, on a
linked quarter basis. In the fourth quarter of 2023, the FDIC
implemented a special assessment to recapitalize the Deposit
Insurance Fund resulting in an expense of $7.2 million during the
fourth quarter of 2023. The FDIC recapitalization estimate will be
periodically adjusted as the FDIC sells assets, satisfies
liabilities, and incurs expenses, which resulted in an additional
expense of $1.8 million during the first quarter of 2024. See “GAAP
Reconciliation and Management Explanation of Non-GAAP Financial
Measures” below for more discussion of these expenses. Other
operating expenses increased $493,000, or 7.4%, to $7.2 million for
the first quarter of 2024 from $6.7 million in the first quarter of
2023, and decreased $5.4 million, or 42.9%, 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 viewed as unusual, infrequent, or not reflective of
future normal operating expenses within the control of management,
contributed to the increase in non-interest expense during the
fourth quarter of 2023: the FDIC special assessment 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. See “GAAP Reconciliation and
Management Explanation of Non-GAAP Financial Measures” below for
more discussion of these expenses. The efficiency ratio was 43.30%
during the first quarter of 2024 compared to 34.60% during the
first quarter of 2023 and 55.23% during the fourth quarter of 2023.
The adjusted efficiency ratio was 39.31%.
Income tax expense decreased $2.2 million, or 17.0%, to $10.6
million in the first quarter of 2024, compared to $12.8 million in
the first quarter of 2023. Our effective tax rate was 17.5% for the
first quarter of 2024 compared to 18.1% for the first quarter of
2023. We recognized an aggregate of $2.2 million in credits during
the first quarter of 2024 related to investments in tax credit
partnerships, compared to $2.7 million during the first quarter of
2023, and $6.7 million during the fourth quarter of 2023. 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 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 first
quarters of 2024 and 2023 of $204,000 and $1.1 million,
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 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 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)
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
CONSOLIDATED STATEMENT OF INCOME
Interest income
$
226,710
$
229,062
$
213,206
$
189,656
$
181,322
Interest expense
124,215
127,375
113,508
88,405
73,021
Net interest income
102,495
101,687
99,698
101,251
108,301
Provision for credit losses
4,368
3,582
4,282
6,654
4,197
Net interest income after provision for
credit losses
98,127
98,105
95,416
94,597
104,104
Non-interest income
8,813
7,379
8,135
8,582
6,321
Non-interest expense
46,303
58,258
41,663
38,466
39,664
Income before income tax
60,637
47,226
61,888
64,713
70,761
Provision for income tax
10,611
5,152
8,548
11,245
12,790
Net income
50,026
42,074
53,340
53,468
57,971
Preferred stock dividends
-
31
-
31
-
Net income available to common
stockholders
$
50,026
$
42,043
$
53,340
$
53,437
$
57,971
Earnings per share - basic
$
0.92
$
0.77
$
0.98
$
0.98
$
1.07
Earnings per share - diluted
$
0.92
$
0.77
$
0.98
$
0.98
$
1.06
Average diluted shares outstanding
54,595,384
54,548,719
54,530,635
54,527,317
54,534,482
CONSOLIDATED BALANCE SHEET DATA
Total assets
$
15,721,630
$
16,129,668
$
16,044,332
$
15,072,808
$
14,566,559
Loans
11,880,696
11,658,829
11,641,130
11,604,894
11,629,802
Debt securities
1,941,625
1,882,847
1,878,701
2,048,227
1,646,937
Non-interest-bearing demand deposits
2,627,639
2,643,101
2,621,072
2,855,102
2,898,736
Total deposits
12,751,448
13,273,511
13,142,376
12,288,219
11,615,317
Borrowings
64,737
64,735
64,751
64,737
65,417
Stockholders' equity
1,476,036
1,440,405
1,401,384
1,363,471
1,339,817
Shares outstanding
54,507,778
54,461,580
54,425,447
54,425,033
54,398,025
Book value per share
$
27.08
$
26.45
$
25.75
$
25.05
$
24.63
Tangible book value per share (1)
$
26.83
$
26.20
$
25.50
$
24.80
$
24.38
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin
2.66
%
2.57
%
2.64
%
2.93
%
3.15
%
Return on average assets
1.26
%
1.04
%
1.37
%
1.50
%
1.63
%
Return on average common stockholders'
equity
13.82
%
11.78
%
15.34
%
15.85
%
17.83
%
Efficiency ratio
43.30
%
55.23
%
38.64
%
35.02
%
34.60
%
Non-interest expense to average earning
assets
1.20
%
1.47
%
1.10
%
1.11
%
1.15
%
CAPITAL RATIOS (2)
Common equity tier 1 capital to
risk-weighted assets
11.07
%
10.91
%
10.69
%
10.37
%
10.01
%
Tier 1 capital to risk-weighted assets
11.08
%
10.92
%
10.69
%
10.38
%
10.02
%
Total capital to risk-weighted assets
12.61
%
12.45
%
12.25
%
11.94
%
11.54
%
Tier 1 capital to average assets
9.44
%
9.12
%
9.35
%
9.83
%
9.49
%
Tangible common equity to total tangible
assets (1)
9.31
%
8.85
%
8.66
%
8.96
%
9.11
%
(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.
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. 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 March 31,
2024
Three Months Ended December 31,
2023
Three Months Ended March 31,
2023
Net income - GAAP
$
50,026
$
42,074
$
57,971
Adjustments:
FDIC special assessment
1,799
7,152
-
Privilege tax expense
-
2,150
-
EDP contract termination expense
-
1,134
-
Tax on adjustments
(452
)
(2,619
)
-
Adjusted net income - non-GAAP
$
51,373
$
49,891
$
57,971
Net income available to common
stockholders - GAAP
$
50,026
$
42,043
$
57,971
Adjustments:
FDIC special assessment
1,799
7,152
-
Privilege tax expense
-
2,150
-
EDP contract termination expense
-
1,134
-
Tax on adjustments
(452
)
(2,619
)
-
Adjusted net income available to common
stockholders -non-GAAP
$
51,373
$
49,860
$
49,860
Diluted earnings per share - GAAP
$
0.92
$
0.77
$
1.06
Adjustments:
FDIC special assessment
0.03
0.13
-
Privilege tax expense
-
0.04
-
EDP contract termination expense
-
0.02
-
Tax on adjustments
(0.01
)
(0.05
)
-
Adjusted diluted earnings per share -
non-GAAP
$
0.94
$
0.91
$
1.06
Return on average assets - GAAP
1.26
%
1.04
%
1.63
%
Net income - GAAP
$
50,026
$
42,074
$
57,971
Adjustments:
FDIC special assessment
1,799
7,152
-
Privilege tax expense
-
2,150
-
EDP contract termination expense
-
1,134
-
Tax on adjustments
(452
)
(2,619
)
-
Adjusted net income available to common
stockholders -non-GAAP
$
51,373
$
49,891
$
57,971
Average assets - GAAP
$
15,957,579
$
16,122,146
$
14,398,549
Adjusted return on average assets -
non-GAAP
1.29
%
1.23
%
1.63
%
Return on average common stockholders'
equity - GAAP
13.82
%
11.78
%
17.83
%
Net income available to common
stockholders - GAAP
$
50,026
$
42,074
$
57,971
Adjustments:
FDIC special assessment
1,799
7,152
-
Privilege tax expense
-
2,150
-
EDP contract termination expense
-
1,134
-
Tax on adjustments
(452
)
(2,619
)
-
Adjusted diluted earnings per share -
non-GAAP
$
51,373
$
49,891
$
57,971
Average common stockholders' equity -
GAAP
$
1,455,938
$
1,415,866
$
1,318,459
Adjusted return on average common
stockholders' equity non-GAAP
14.19
%
13.98
%
17.83
%
Efficiency ratio
43.30
%
55.23
%
55.23
%
Non-interest expense - GAAP
$
45,550
$
56,480
$
57,971
Adjustments:
FDIC special assessment
1,799
7,152
-
Privilege tax expense
-
2,150
-
EDP contract termination expense
-
1,134
-
Adjusted non-interest expense
$
43,751
$
46,044
$
39,664
Net interest income plus non-interest
income - GAAP
$
111,308
$
109,066
$
114,622
Adjusted efficiency ratio - non-GAAP
39.31
%
42.22
%
34.60
%
At March 31, 2024
At December 31, 2023
At September 30, 2023
At June 30, 2023
At March 31, 2023
Book value per share - GAAP
$
27.08
$
26.45
$
25.75
$
25.05
$
24.63
Total common stockholders' equity -
GAAP
1,476,036
1,440,405
1,401,384
1,363,471
1,339,817
Adjustment for Goodwill
(13,615
)
(13,615
)
(13,615
)
(13,615
)
(13,615
)
Tangible common stockholders' equity -
non-GAAP
$
1,462,421
$
1,426,790
$
1,387,769
$
1,349,856
$
1,326,202
Tangible book value per share -
non-GAAP
$
26.83
$
26.22
$
25.50
$
24.80
$
24.38
Stockholders' equity to total assets -
GAAP
9.39
%
8.93
%
8.73
%
9.05
%
9.20
%
Total assets - GAAP
$
15,721,630
$
16,129,668
$
16,044,332
$
15,072,808
$
14,566,559
Adjustment for Goodwill
(13,615
)
(13,615
)
(13,615
)
(13,615
)
(13,615
)
Total tangible assets - non-GAAP
$
15,708,015
$
16,116,053
$
16,030,717
$
15,059,193
$
14,552,944
Tangible common equity to total tangible
assets - non-GAAP
9.31
%
8.85
%
8.66
%
8.96
%
9.11
%
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands)
March 31, 2024
March 31, 2023
% Change
ASSETS
Cash and due from banks
$
78,708
$
139,175
(43
)%
Interest-bearing balances due from
depository institutions
1,201,566
725,318
66
%
Federal funds sold
170,625
6,478
2,534
%
Cash and cash equivalents
1,450,899
870,971
67
%
Available for sale debt securities, at
fair value
1,073,929
624,948
72
%
Held to maturity debt securities (fair
value of $785,270 and $937,961, respectively)
867,696
1,021,989
(15
)%
Restricted equity securities
11,300
7,307
55
%
Mortgage loans held for sale
7,592
1,651
360
%
Loans
11,880,696
11,629,802
2
%
Less allowance for credit losses
(155,892
)
(148,965
)
5
%
Loans, net
11,724,804
11,480,837
2
%
Premises and equipment, net
59,302
60,093
(1
)%
Goodwill
13,615
13,615
-
%
Other assets
512,493
485,148
6
%
Total assets
$
15,721,630
$
14,566,559
8
%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing demand
$
2,627,639
$
2,898,736
(9
)%
Interest-bearing
10,123,809
8,716,581
16
%
Total deposits
12,751,448
11,615,317
10
%
Federal funds purchased
1,345,328
1,480,160
(9
)%
Other borrowings
64,737
65,417
(1
)%
Other liabilities
84,081
65,848
28
%
Total liabilities
14,245,594
13,226,742
8
%
Stockholders' equity:
Preferred stock, par value $0.001 per
share; 1,000,000 authorized and undesignated at
March 31, 2024 and March 31, 2023
-
-
-
%
Common stock, par value $0.001 per share;
200,000,000 shares authorized; 54,507,778 shares
issued and outstanding at March 31, 2024,
and 54,398,025
shares issued and outstanding at March 31,
2023
54
54
-
%
Additional paid-in capital
233,560
229,631
2
%
Retained earnings
1,288,514
1,152,681
12
%
Accumulated other comprehensive loss
(46,592
)
(43,049
)
8
%
Total stockholders' equity attributable to
ServisFirst Bancshares, Inc.
1,475,536
1,339,317
10
%
Noncontrolling interest
500
500
-
%
Total stockholders' equity
1,476,036
1,339,817
10
%
Total liabilities and stockholders'
equity
$
15,721,630
$
14,566,559
8
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
Three Months Ended March 31,
2024
2023
Interest income:
Interest and fees on loans
$
186,978
$
163,732
Taxable securities
15,979
10,895
Nontaxable securities
9
21
Federal funds sold
541
614
Other interest and dividends
23,203
6,060
Total interest income
226,710
181,322
Interest expense:
Deposits
104,066
55,713
Borrowed funds
20,149
17,308
Total interest expense
124,215
73,021
Net interest income
102,495
108,301
Provision for credit losses
4,368
4,197
Net interest income after provision for
credit losses
98,127
104,104
Non-interest income:
Service charges on deposit accounts
2,150
1,934
Mortgage banking
678
442
Credit card income
2,155
1,689
Bank-owned life insurance income
3,231
1,621
Other operating income
599
635
Total non-interest income
8,813
6,321
Non-interest expense:
Salaries and employee benefits
22,986
19,066
Equipment and occupancy expense
3,557
3,435
Third party processing and other
services
7,166
7,284
Professional services
1,464
1,654
FDIC and other regulatory assessments
3,905
1,517
Other real estate owned expense
30
6
Other operating expense
7,195
6,702
Total non-interest expense
46,303
39,664
Income before income tax
60,637
70,761
Provision for income tax
10,611
12,790
Net income
50,026
57,971
Dividends on preferred stock
-
-
Net income available to common
stockholders
$
50,026
$
57,971
Basic earnings per common share
$
0.92
$
1.07
Diluted earnings per common share
$
0.92
$
1.06
LOANS BY TYPE (UNAUDITED)
(In thousands)
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
Commercial, financial and agricultural
$
2,834,102
$
2,823,986
$
2,890,535
$
2,986,453
$
3,081,926
Real estate - construction
1,546,716
1,519,619
1,509,937
1,397,732
1,469,670
Real estate - mortgage:
Owner-occupied commercial
2,377,042
2,257,163
2,237,684
2,294,002
2,243,436
1-4 family mortgage
1,284,888
1,249,938
1,170,099
1,167,238
1,138,645
Other mortgage
3,777,758
3,744,346
3,766,124
3,686,434
3,624,071
Subtotal: Real estate - mortgage
7,439,688
7,251,447
7,173,907
7,147,674
7,006,152
Consumer
60,190
63,777
66,751
73,035
72,054
Total loans
$
11,880,696
$
11,658,829
$
11,641,130
$
11,604,894
$
11,629,802
SUMMARY OF CREDIT LOSS EXPERIENCE
(UNAUDITED)
(Dollars in thousands)
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
Allowance for credit losses:
Beginning balance
$
153,317
$
152,247
$
152,272
$
148,965
$
146,297
Loans charged off:
Commercial financial and agricultural
1,842
2,831
4,783
4,358
1,257
Real estate - construction
-
89
19
-
-
Real estate - mortgage
67
14
-
131
26
Consumer
98
231
341
111
390
Total charge offs
2,007
3,165
5,143
4,600
1,673
Recoveries:
Commercial financial and agricultural
199
614
825
1,233
128
Real estate - construction
-
-
-
-
3
Real estate - mortgage
6
-
-
-
1
Consumer
9
39
11
21
11
Total recoveries
214
653
836
1,254
143
Net charge-offs
1,793
2,512
4,307
3,346
1,530
Provision for credit losses
4,368
3,582
4,282
6,654
4,197
Ending balance
$
155,892
$
153,317
$
152,247
$
152,272
$
148,965
Allowance for credit losses to total
loans
1.31
%
1.32
%
1.31
%
1.31
%
1.28
%
Allowance for credit losses to total
average
loans
1.33
%
1.32
%
1.31
%
1.31
%
1.28
%
Net charge-offs to total average loans
0.06
%
0.09
%
0.15
%
0.11
%
0.05
%
Provision for credit losses to total
average
loans
0.15
%
0.12
%
0.15
%
0.23
%
0.14
%
Nonperforming assets:
Nonaccrual loans
$
34,457
$
19,349
$
20,912
$
16,897
$
13,157
Loans 90+ days past due and accruing
380
2,184
1,692
5,947
4,683
Other real estate owned and
repossessed assets
490
995
690
832
248
Total
$
35,327
$
22,528
$
23,294
$
23,676
$
18,088
Nonperforming loans to total loans
0.29
%
0.18
%
0.19
%
0.20
%
0.15
%
Nonperforming assets to total assets
0.22
%
0.14
%
0.15
%
0.16
%
0.12
%
Nonperforming assets to earning assets
0.23
%
0.14
%
0.16
%
0.16
%
0.13
%
Allowance for credit losses to nonaccrual
loans
452.42
%
795.17
%
731.74
%
901.18
%
1,132.24
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
Interest income:
Interest and fees on loans
$
186,978
$
184,897
$
178,754
$
171,718
$
163,732
Taxable securities
15,979
15,512
15,522
11,570
10,895
Nontaxable securities
9
12
15
17
21
Federal funds sold
541
1,018
985
227
614
Other interest and dividends
23,203
27,623
17,930
6,124
6,060
Total interest income
226,710
229,062
213,206
189,656
181,322
Interest expense:
Deposits
104,066
108,155
95,901
71,971
55,713
Borrowed funds
20,149
19,220
17,607
16,434
17,308
Total interest expense
124,215
127,375
113,508
88,405
73,021
Net interest income
102,495
101,687
99,698
101,251
108,301
Provision for credit losses
4,368
3,582
4,282
6,654
4,197
Net interest income after provision for
credit losses
98,127
98,105
95,416
94,597
104,104
Non-interest income:
Service charges on deposit accounts
2,150
2,181
2,163
2,142
1,934
Mortgage banking
678
792
825
696
442
Credit card income
2,155
2,004
2,532
2,406
1,689
Bank-owned life insurance income
3,231
1,639
1,818
2,496
1,621
Other operating income
599
763
797
842
635
Total non-interest income
8,813
7,379
8,135
8,582
6,321
Non-interest expense:
Salaries and employee benefits
22,986
23,024
20,080
18,795
19,066
Equipment and occupancy expense
3,557
3,860
3,579
3,421
3,435
Third party processing and other
services
7,166
7,841
6,549
6,198
7,284
Professional services
1,464
1,417
1,265
1,580
1,654
FDIC and other regulatory assessments
3,905
9,509
2,346
2,242
1,517
Other real estate owned expense
30
17
18
6
6
Other operating expense
7,195
12,590
7,826
6,224
6,702
Total non-interest expense
46,303
58,258
41,663
38,466
39,664
Income before income tax
60,637
47,226
61,888
64,713
70,761
Provision for income tax
10,611
5,152
8,548
11,245
12,790
Net income
50,026
42,074
53,340
53,468
57,971
Dividends on preferred stock
-
31
-
31
-
Net income available to common
stockholders
$
50,026
$
42,043
$
53,340
$
53,437
$
57,971
Basic earnings per common share
$
0.92
$
0.77
$
0.98
$
0.98
$
1.07
Diluted earnings per common share
$
0.92
$
0.77
$
0.98
$
0.98
$
1.06
AVERAGE BALANCE SHEETS AND NET INTEREST
ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st 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
$
11,723,391
6.41
%
$
11,580,716
6.33
%
$
11,545,003
6.13
%
$
11,581,008
5.94
%
$
11,632,439
5.70
%
Tax-exempt (2)
17,605
5.00
17,787
4.71
18,023
4.71
18,312
4.82
18,978
3.36
Total loans, net of unearned
income
11,740,996
6.40
11,598,503
6.32
11,563,026
6.13
11,599,320
5.94
11,651,417
5.70
Mortgage loans held for sale
4,770
5.57
5,105
6.22
5,476
6.67
5,014
5.12
1,522
6.40
Debt securities:
Taxable
2,013,295
3.16
2,007,636
3.08
2,029,995
3.07
1,757,397
2.64
1,724,523
2.54
Tax-exempt (2)
1,296
3.40
1,739
2.30
2,408
2.49
2,960
2.43
3,781
2.43
Total securities (3)
2,014,591
3.16
2,009,375
3.08
2,032,403
3.07
1,760,357
2.64
1,728,304
2.54
Federal funds sold
37,298
5.83
72,178
5.60
74,424
5.25
15,908
5.72
50,526
4.93
Restricted equity securities
10,417
7.57
10,216
8.74
8,471
5.90
8,834
6.08
9,919
7.69
Interest-bearing balances with banks
1,687,977
5.48
1,981,411
5.49
1,293,243
5.45
460,893
5.21
510,021
4.67
Total interest-earning assets
$
15,496,049
5.88
$
15,676,788
5.80
$
14,977,043
5.65
$
13,850,326
5.49
$
13,951,709
5.27
Non-interest-earning assets:
Cash and due from banks
98,813
101,741
111,566
101,188
106,448
Net premises and equipment
60,126
60,110
60,121
60,499
60,617
Allowance for credit losses, accrued
interest and other assets
302,591
283,435
283,357
279,860
279,775
Total assets
$
15,957,579
$
16,122,074
$
15,432,087
$
14,291,873
$
14,398,549
Interest-bearing liabilities:
Interest-bearing deposits:
Checking
$
2,339,548
2.69
%
$
2,245,431
2.91
%
$
2,153,973
2.72
%
$
1,628,936
1.69
%
$
1,675,355
1.25
%
Savings
106,924
1.76
107,035
1.72
112,814
1.61
122,050
1.38
134,671
0.94
Money market
6,761,495
4.48
7,106,190
4.44
6,538,426
4.24
5,971,639
3.78
5,756,642
3.17
Time deposits
1,164,204
4.37
1,111,350
4.18
1,093,388
3.89
983,582
3.44
850,639
2.51
Total interest-bearing deposits
10,372,171
4.04
10,570,006
4.06
9,898,601
3.84
8,706,207
3.32
8,417,307
2.68
Federal funds purchased
1,422,828
5.50
1,338,110
5.49
1,237,721
5.43
1,191,582
5.14
1,389,217
4.67
Other borrowings
64,736
4.26
64,734
4.23
64,734
4.23
100,998
4.62
114,726
4.61
Total interest-bearing liabilities
$
11,859,735
4.21
%
$
11,972,850
4.22
%
$
11,201,056
4.02
%
$
9,998,787
3.55
%
$
9,921,250
2.98
%
Non-interest-bearing liabilities:
Non-interest-bearing
checking
2,550,841
2,656,504
2,778,858
2,876,225
3,086,774
Other liabilities
91,064
76,651
72,924
64,917
72,121
Stockholders' equity
1,503,240
1,475,366
1,437,766
1,399,578
1,358,587
Accumulated other comprehensive
loss
(47,302
)
(59,297
)
(58,517
)
(47,634
)
(40,183
)
Total liabilities and
stockholders' equity
$
15,957,579
$
16,122,074
$
15,432,087
$
14,291,873
$
14,398,549
Net interest spread
1.67
%
1.58
%
1.63
%
1.94
%
2.29
%
Net interest margin
2.66
%
2.57
%
2.64
%
2.93
%
3.15
%
(1) Average loans include nonaccrual loans
in all periods. Loan fees of $3,655, $4,175, $2,996, $3,318, and
$3,263 are included in interest income in the first quarter of
2024, fourth quarter of 2023, third quarter of 2023, second quarter
of 2023, and first 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 $(68,162), $(84,647), $(83,815), $(69,498), and $(59,738) for
the first quarter of 2024, fourth quarter of 2023, third quarter of
2023, second quarter of 2023, and first quarter of 2023,
respectively, are excluded from the yield calculation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240422205295/en/
ServisFirst Bank Davis Mange (205) 949-3420
dmange@servisfirstbank.com
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