ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced
earnings and operating results for the quarter ended September 30,
2024.
Third Quarter 2024 Highlights:
- Diluted EPS grew 16% from the second quarter of 2024, and
12% year-over-year.
- Net interest margin increased 5 basis points from the second
quarter of 2024.
- Net income grew by 15% from the second quarter of 2024 and
12% year-over-year.
- Non-interest-bearing deposits grew by $101 million, or 16%
annualized from the second quarter of 2024.
- Loans grew by 6.0% year-over-year.
- Credit quality continues to be strong with non-performing
assets to total assets of 0.25%.
- Liquidity remains solid with over $1.76 billion in cash and
no FHLB advances or brokered deposits.
- Book value per share of $28.79, up 12%
year-over-year.
Tom Broughton, Chairman, President, and CEO, said, “With a solid
loan pipeline, an improving margin, strong liquidity and strong
credit quality, we are optimistic about the outlook for the
bank.”
Kirk Pressley, CFO, said, “Margin expansion accelerated during
the quarter with dollar interest margin increasing by $9.2 million,
a 35% annualized linked quarter increase, and net interest margin
expanded five basis points to 2.84%. Noninterest bearing demand
deposits grew by 4% from the second quarter, a 16% annualized
linked quarter increase. Expenses remained well controlled with the
efficiency ratio dropping to 36.9% for the quarter.”
FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share
amounts)
Period Ending September 30,
2024
Period Ending June 30, 2024
% Change From Period Ending June
30, 2024 to Period Ending September 30, 2024
Period Ending September 30,
2023
% Change From Period Ending
September 30, 2023 to Period Ending September 30, 2024
QUARTERLY OPERATING RESULTS
Net Income
$
59,907
$
52,136
14.9
%
$
53,340
12.3
%
Net Income Available to Common
Stockholders
$
59,907
$
52,105
15.0
%
$
53,340
12.3
%
Diluted Earnings Per Share
$
1.10
$
0.95
15.8
%
$
0.98
12.2
%
Return on Average Assets
1.43
%
1.34
%
1.37
%
Return on Average Common Stockholders'
Equity
15.55
%
14.08
%
15.34
%
Average Diluted Shares Outstanding
54,642,582
54,608,679
54,530,635
YEAR-TO-DATE OPERATING RESULTS
Net Income
$
162,069
$
164,779
(1.6)
%
Net Income Available to Common
Stockholders
$
162,038
$
164,748
(1.6)
%
Diluted Earnings Per Share
$
2.97
$
3.02
(1.7)
%
Return on Average Assets
1.35
%
1.50
%
Return on Average Common Stockholders'
Equity
14.51
%
16.23
%
Average Diluted Shares Outstanding
54,615,647
54,530,797
Adjusted Net Income, net of tax*
$
163,416
$
164,779
(0.8)
%
Adjusted Net Income Available to
Common
Stockholders, net of tax*
$
163,385
$
164,748
(0.8)
%
Adjusted Diluted Earnings Per Share, net
of tax*
$
2.99
$
3.02
Adjusted Return on Average Assets, net of
tax*
1.36
%
1.50
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
14.63
%
16.23
%
BALANCE SHEET
Total Assets
$
16,447,876
$
16,049,812
2.5
%
$
16,044,332
2.5
%
Loans
12,338,226
12,332,780
-
%
11,641,130
6.0
%
Non-interest-bearing Demand Deposits
2,576,329
2,475,415
4.1
%
2,621,072
(1.7)
%
Total Deposits
13,146,529
13,259,392
(0.9)
%
13,142,376
-
%
Stockholders' Equity
1,570,269
1,510,576
4.0
%
1,401,384
12.1
%
* 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 $59.9 million for the quarter
ended September 30, 2024, compared to net income and net income
available to common stockholders of $52.1 million for the second
quarter of 2024 and net income and net income available to common
stockholders of $53.3 million for the third quarter of 2023. Basic
and diluted earnings per common share were both $1.10 in the third
quarter of 2024, compared to $0.96 and $0.95, respectively, in the
second quarter of 2024 and $0.98 for both in the third quarter of
2023.
Annualized return on average assets was 1.43% and annualized
return on average common stockholders’ equity was 15.55% for the
third quarter of 2024, compared to 1.37% and 15.34%, respectively,
for the third quarter of 2023.
Net interest income was $115.1 million for the third quarter of
2024, compared to $105.9 million for the second quarter of 2024 and
$99.7 million for the third quarter of 2023. The net interest
margin in the third quarter of 2024 was 2.84% compared to 2.79% in
the second quarter of 2024 and 2.64% in the third quarter of 2023.
Loan yields were 6.62% during the third quarter of 2024 compared to
6.48% during the second quarter of 2024 and 6.13% during the third
quarter of 2023. Investment yields were 3.57% during the third
quarter of 2024 compared to 3.33% during the second quarter of 2024
and 3.07% during the third quarter of 2023. Average
interest-bearing deposit rates were 4.12% during the third quarter
of 2024, compared to 4.09% during the second quarter of 2024 and
3.84% during the third quarter of 2023. Average federal funds
purchased rates were 5.42% during third quarter of 2024, compared
to 5.50% during the second quarter of 2024 and 5.43% during the
third quarter of 2023.
Average loans for the third quarter of 2024 were $12.37 billion,
an increase of $303.7 million, or 10.0% annualized, from average
loans of $12.06 billion for the second quarter of 2024, and an
increase of $803.6 million, or 7.0%, from average loans of $11.56
billion for the third quarter of 2023. Ending total loans for the
third quarter of 2024 were $12.34 billion, an increase of $5.4
million, or 0.2% annualized, from $12.33 billion for the second
quarter of 2024, and an increase of $697.1 million, or 6.0%, from
$11.64 billion for the third quarter of 2023.
Average total deposits for the third quarter of 2024 were $13.52
billion, an increase of $653.7 million, or 20.2% annualized, from
average total deposits of $12.86 billion for the second quarter of
2024, and an increase of $838.3 million, or 6.6%, from average
total deposits of $12.68 billion for the third quarter of 2023.
Ending total deposits for the third quarter of 2024 were $13.15
billion, a decrease of $112.9 million, or 3.4% annualized, from
$13.26 billion for the second quarter of 2024, and remained
unchanged from $13.14 billion for the third quarter of 2023.
Non-performing assets to total assets were 0.25% for the third
quarter of 2024, compared to 0.23% for the second quarter of 2024
and 0.15% for the third quarter of 2023. The increase in
non-performing assets to total assets can primarily be attributed
to a single relationship that moved to non-accrual status during
the first quarter of 2024. Annualized net charge-offs to average
loans were 0.09% for the third quarter of 2024, compared to 0.10%
for the second quarter of 2024 and 0.15% for the third quarter of
2023. The allowance for credit losses as a percent of total loans
at September 30, 2024, June 30, 2024, and September 30, 2023, was
1.31%, 1.28%, and 1.31%, respectively. We recorded a $5.7 million
provision for credit losses in the third quarter of 2024, $2.7
million of which is a provision for the potential impact of
Hurricane Helene, which struck the Florida coast on September 26th
and caused widespread damage from Florida to the Carolinas. In
early October Hurricane Milton struck the west coast of Florida and
tracked across the middle of the state. Management is assessing the
impact of both hurricanes to determine if additional provisions are
warranted. We recorded provision for credit losses of $5.4 million
in the second quarter of 2024, and $4.3 million in the third
quarter of 2023. During the third quarter of 2024, we reclassified
the Reserve for Unfunded Commitments from Other Liabilities and
Other Expenses to Allowance for Credit Losses and Provision for
Credit Losses, respectively.
Non-interest income increased $414,000, or 5.1%, to $8.5 million
for the third quarter of 2024 from $8.1 million in the third
quarter of 2023, and decreased $342,000, or 3.8%, on a linked
quarter basis. Service charges on deposit accounts increased
$178,000, or 8.2%, to $2.3 million for the third quarter of 2024
from $2.2 million in the third quarter of 2023, and increased
$48,000, or 2.1%, on a linked quarter basis. Mortgage banking
revenue increased $527,000, or 63.9%, to $1.4 million for the third
quarter of 2024 from $825,000 in the third quarter of 2023, and
decreased $27,000, or 2.0%, on a linked quarter basis. Net credit
card revenue decreased $607,000, or 24.0%, to $1.9 million for the
third quarter of 2024 from $2.5 million in the third quarter of
2023, and decreased $408,000, or 17.5%, on a linked quarter basis.
Bank-owned life insurance (“BOLI”) income increased $295,000, or
16.2%, to $2.1 million for the third quarter of 2024 from $1.8
million in the third quarter of 2023, and increased $55,000, or
2.7%, on a linked quarter basis. Other operating income increased
$21,000, or 2.6%, to $818,000 for the third quarter of 2024 from
$797,000 in the third quarter of 2023, and decreased $10,000, or
1.2%, on a linked quarter basis.
Non-interest expense increased $4.0 million, or 9.5%, to $45.6
million for the third quarter of 2024 from $41.7 million in the
third quarter of 2023, and increased $2.8 million, or 6.6%, 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 $5.0 million, or 24.8%, to $25.1 million for the third
quarter of 2024 from $20.1 million in the third quarter of 2023,
and increased $844,000, or 3.5%, on a linked quarter basis. The
number of full-time equivalent (“FTE”) employees increased by 52,
or 9.2%, to 620 at September 30, 2024 compared to 568 at September
30, 2023, and decreased by 5, or 0.8%, from the end of the second
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 $1.8 million, and
salaries increased approximately $2.1 million from the third
quarter of 2023. Equipment and occupancy expense increased
$216,000, or 6.0%, to $3.8 million for the third quarter of 2024
from $3.6 million in the third quarter of 2023, and increased
$228,000, or 6.4%, on a linked quarter basis. Third party
processing and other services expense increased $1.5 million, or
22.7%, to $8.0 million for the third quarter of 2024 from $6.5
million in the third quarter of 2023, and increased $570,000, or
7.6%, on a linked quarter basis. Professional services expense
increased $450,000, or 35.6%, to $1.7 million for the third quarter
of 2024 from $1.3 million in the third quarter of 2023, and
decreased $26,000, or 1.5%, on a linked quarter basis. FDIC and
other regulatory assessments increased $9,000, or 0.4%, to $2.4
million for the third quarter of 2024 from $2.3 million in the
third quarter of 2023, and increased $153,000, or 6.9%, 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 $3.3 million, or
41.6%, to $4.6 million for the third quarter of 2024 from $7.8
million in the third quarter of 2023, and increased $949,000, or
26.2%, 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
36.90% during the third quarter of 2024 compared to 38.64% during
the third quarter of 2023 and 37.31% during the second quarter of
2024.
Income tax expense increased $3.9 million, or 45.9%, to $12.5
million in the third quarter of 2024, compared to $8.5 million in
the third quarter of 2023. Our effective tax rate was 17.23% for
the third quarter of 2024 compared to 13.81% for the third 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 third quarters of
2024 and 2023 of $111,000 and $0, 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)
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
CONSOLIDATED STATEMENT OF INCOME
Interest income
$
247,979
$
227,540
$
226,710
$
229,062
$
213,206
Interest expense
132,858
121,665
124,215
127,375
113,508
Net interest income
115,121
105,875
102,495
101,687
99,698
Provision for credit losses
5,659
5,353
4,368
3,582
4,282
Net interest income after provision for
credit losses
109,462
100,522
98,127
98,105
95,416
Non-interest income
8,549
8,891
8,813
7,379
8,135
Non-interest expense
45,632
42,818
46,303
58,258
41,663
Income before income tax
72,379
66,595
60,637
47,226
61,888
Provision for income tax
12,472
14,459
10,611
5,152
8,548
Net income
59,907
52,136
50,026
42,074
53,340
Preferred stock dividends
-
31
-
31
-
Net income available to common
stockholders
$
59,907
$
52,105
$
50,026
$
42,043
$
53,340
Earnings per share - basic
$
1.10
$
0.96
$
0.92
$
0.77
$
0.98
Earnings per share - diluted
$
1.10
$
0.95
$
0.92
$
0.77
$
0.98
Average diluted shares outstanding
54,642,582
54,608,679
54,595,384
54,548,719
54,530,635
CONSOLIDATED BALANCE SHEET DATA
Total assets
$
16,447,876
$
16,049,812
$
15,721,630
$
16,129,668
$
16,044,332
Loans
12,338,226
12,332,780
11,880,696
11,658,829
11,641,130
Debt securities
1,867,587
1,941,641
1,941,625
1,882,847
1,878,701
Non-interest-bearing demand deposits
2,576,329
2,475,415
2,627,639
2,643,101
2,621,072
Total deposits
13,146,529
13,259,392
12,751,448
13,273,511
13,142,376
Borrowings
64,741
64,739
64,737
64,735
64,751
Stockholders' equity
1,570,269
1,510,576
1,476,036
1,440,405
1,401,384
Shares outstanding
54,551,543
54,521,479
54,507,778
54,461,580
54,425,447
Book value per share
$
28.79
$
27.71
$
27.08
$
26.45
$
25.75
Tangible book value per share (1)
$
28.54
$
27.46
$
26.83
$
26.20
$
25.50
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin
2.84
%
2.79
%
2.66
%
2.57
%
2.64
%
Return on average assets
1.43
%
1.34
%
1.26
%
1.04
%
1.37
%
Return on average common stockholders'
equity
15.55
%
14.08
%
13.82
%
11.78
%
15.34
%
Efficiency ratio
36.90
%
37.31
%
43.30
%
55.23
%
38.64
%
Non-interest expense to average earning
assets
1.13
%
1.13
%
1.20
%
1.47
%
1.10
%
CAPITAL RATIOS (2)
Common equity tier 1 capital to
risk-weighted assets
11.25
%
10.93
%
11.07
%
10.91
%
10.69
%
Tier 1 capital to risk-weighted assets
11.25
%
10.93
%
11.08
%
10.92
%
10.69
%
Total capital to risk-weighted assets
12.77
%
12.43
%
12.61
%
12.45
%
12.25
%
Tier 1 capital to average assets
9.54
%
9.81
%
9.44
%
9.12
%
9.35
%
Tangible common equity to total tangible
assets (1)
9.47
%
9.33
%
9.31
%
8.85
%
8.66
%
(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 September 30, 2024
At June 30, 2024
At March 31, 2024
At December 31, 2023
At September 30, 2023
Book value per share - GAAP
$
28.79
$
27.71
$
27.08
$
26.45
$
25.75
Total common stockholders' equity -
GAAP
1,570,269
1,570,994
1,476,036
1,440,405
1,401,384
Adjustment for Goodwill
(13,615)
(13,615)
(13,615)
(13,615)
(13,615)
Tangible common stockholders' equity -
non-GAAP
$
1,556,654
$
1,557,379
$
1,462,421
$
1,426,790
$
1,387,769
Tangible book value per share -
non-GAAP
$
28.54
$
27.46
$
26.83
$
26.22
$
25.50
Stockholders' equity to total assets -
GAAP
9.55
%
9.55
%
9.39
%
8.93
%
8.73
%
Total assets - GAAP
$
16,447,876
$
16,448,582
$
16,048,819
$
16,129,668
$
16,044,332
Adjustment for Goodwill
(13,615)
(13,615)
(13,615)
(13,615)
(13,615)
Total tangible assets - non-GAAP
$
16,434,261
$
16,434,967
$
16,035,204
$
16,116,053
$
16,030,717
Tangible common equity to total tangible
assets - non-GAAP
9.47
%
9.48
%
9.33
%
8.85
%
8.66
%
Nine Months Ended September 30,
2024
Nine Months Ended September 30,
2023
Net income - GAAP
$
162,069
$
164,779
Adjustments:
FDIC special assessment
1,799
-
Tax on adjustments
(452)
-
Adjusted net income - non-GAAP
$
163,416
$
164,779
Net income available to common
stockholders - GAAP
$
162,038
$
164,748
Adjustments:
FDIC special assessment
1,799
-
Tax on adjustments
(452)
-
Adjusted net income available to common
stockholders - non-GAAP
$
163,385
$
164,748
Diluted earnings per share - GAAP
$
2.97
$
3.02
Adjustments:
FDIC special assessment
0.03
-
Tax on adjustments
(0.01)
-
Adjusted diluted earnings per share -
non-GAAP
$
2.99
$
3.02
Return on average assets - GAAP
1.34
%
1.50
%
Net income available to common
stockholders - GAAP
$
162,038
$
164,748
Adjustments:
FDIC special assessment
1,799
-
Tax on adjustments
(452)
-
Adjusted net income available to common
stockholders - non-GAAP
$
163,385
$
164,748
Average assets - GAAP
$
16,095,859
$
14,711,108
Adjusted return on average assets -
non-GAAP
1.36
%
1.50
%
Return on average common stockholders'
equity - GAAP
14.51
%
16.23
%
Net income available to common
stockholders - GAAP
$
162,038
$
164,748
Adjustments:
FDIC special assessment
1,799
-
Tax on adjustments
(452)
-
Adjusted diluted earnings per share -
non-GAAP
$
163,385
$
164,748
Average common stockholders' equity -
GAAP
$
1,491,880
$
1,356,857
Adjusted return on average common
stockholders' equity non-GAAP
14.63
%
16.23
%
Efficiency ratio
38.53
%
36.05
%
Non-interest expense - GAAP
$
134,250
$
119,793
Adjustments:
FDIC special assessment
1,799
-
Adjusted non-interest expense
$
132,451
$
119,793
Net interest income plus non-interest
income - GAAP
$
349,744
$
332,288
Adjusted efficiency ratio - non-GAAP
37.87
%
36.05
%
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands)
September 30, 2024
September 30, 2023
% Change
ASSETS
Cash and due from banks
$
142,372
$
112,150
27
%
Interest-bearing balances due from
depository institutions
1,614,317
1,861,924
(13)
%
Federal funds sold
3,542
91,035
(96)
%
Cash and cash equivalents
1,760,231
2,065,109
(15)
%
Available for sale debt securities, at
fair value
1,139,007
834,802
36
%
Held to maturity debt securities (fair
value of $673,023 and $933,006, respectively)
728,580
1,043,899
(30)
%
Restricted equity securities
11,300
10,226
11
%
Mortgage loans held for sale
8,453
6,333
33
%
Loans
12,338,226
11,641,130
6
%
Less allowance for credit losses
(162,057)
(152,247)
6
%
Loans, net
12,176,169
11,488,883
6
%
Premises and equipment, net
61,328
59,516
3
%
Goodwill
13,615
13,615
-
%
Other assets
549,194
521,949
5
%
Total assets
$
16,447,876
$
16,044,332
3
%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing demand
$
2,576,329
$
2,621,072
(2)
%
Interest-bearing
10,570,200
10,521,304
-
%
Total deposits
13,146,529
13,142,376
-
%
Federal funds purchased
1,542,623
1,370,289
13
%
Other borrowings
64,741
64,751
-
%
Other liabilities
123,714
65,532
89
%
Total liabilities
14,877,607
14,642,948
2
%
Stockholders' equity:
Preferred stock, par value $0.001 per
share; 1,000,000 authorized and undesignated at September 30, 2024
and September 30, 2023
-
-
-
%
Common stock, par value $0.001 per share;
200,000,000 shares authorized; 54,551,543 shares issued and
outstanding at September 30, 2024, and 54,425,447 shares issued and
outstanding at September 30, 2023
54
54
-
%
Additional paid-in capital
235,649
231,588
2
%
Retained earnings
1,365,701
1,229,080
11
%
Accumulated other comprehensive loss
(31,635)
(59,838)
(47)
%
Total stockholders' equity attributable to
ServisFirst Bancshares, Inc.
1,569,769
1,400,884
12
%
Noncontrolling interest
500
500
-
%
Total stockholders' equity
1,570,269
1,401,384
12
%
Total liabilities and stockholders'
equity
$
16,447,876
$
16,044,332
3
%
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Interest income:
Interest and fees on loans
$
205,952
$
178,754
$
587,230
$
514,204
Taxable securities
17,493
15,522
49,630
37,987
Nontaxable securities
7
15
25
53
Federal funds sold
31
985
1,110
1,826
Other interest and dividends
24,496
17,930
64,234
30,114
Total interest income
247,979
213,206
702,229
584,184
Interest expense:
Deposits
113,211
95,901
321,948
223,585
Borrowed funds
19,647
17,607
56,790
51,349
Total interest expense
132,858
113,508
378,738
274,934
Net interest income
115,121
99,698
323,491
309,250
Provision for credit losses
5,659
4,282
15,883
15,133
Net interest income after provision for
credit losses
109,462
95,416
307,608
294,117
Non-interest income:
Service charges on deposit accounts
2,341
2,163
6,784
6,239
Mortgage banking
1,352
825
3,409
1,963
Credit card income
1,925
2,532
6,413
6,627
Bank-owned life insurance income
2,113
1,818
7,402
5,935
Other operating income
818
797
2,245
2,274
Total non-interest income
8,549
8,135
26,253
23,038
Non-interest expense:
Salaries and employee benefits
25,057
20,080
72,256
57,941
Equipment and occupancy expense
3,795
3,579
10,919
10,435
Third party processing and other
services
8,035
6,549
22,666
20,031
Professional services
1,715
1,265
4,920
4,499
FDIC and other regulatory assessments
2,355
2,346
8,462
6,105
Other real estate owned expense
103
18
141
30
Other operating expense
4,572
7,826
14,886
20,752
Total non-interest expense
45,632
41,663
134,250
119,793
Income before income tax
72,379
61,888
199,611
197,362
Provision for income tax
12,472
8,548
37,542
32,583
Net income
59,907
53,340
162,069
164,779
Dividends on preferred stock
-
-
31
31
Net income available to common
stockholders
$
59,907
$
53,340
$
162,038
$
164,748
Basic earnings per common share
$
1.10
$
0.98
$
2.97
$
3.03
Diluted earnings per common share
$
1.10
$
0.98
$
2.97
$
3.02
LOANS BY TYPE (UNAUDITED)
(In thousands)
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
Commercial, financial and agricultural
$
2,793,989
$
2,935,577
$
2,834,102
$
2,823,986
$
2,890,535
Real estate - construction
1,439,648
1,510,677
1,546,716
1,519,619
1,509,937
Real estate - mortgage:
Owner-occupied commercial
2,441,687
2,399,644
2,377,042
2,257,163
2,237,684
1-4 family mortgage
1,409,981
1,350,428
1,284,888
1,249,938
1,170,099
Other mortgage
4,190,935
4,072,007
3,777,758
3,744,346
3,766,124
Subtotal: Real estate - mortgage
8,042,603
7,822,079
7,439,688
7,251,447
7,173,907
Consumer
61,986
64,447
60,190
63,777
66,751
Total loans
$
12,338,226
$
12,332,780
$
11,880,696
$
11,658,829
$
11,641,130
SUMMARY OF CREDIT LOSS EXPERIENCE
(UNAUDITED)
(Dollars in thousands)
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
Allowance for credit losses:
Beginning balance
$
158,092
$
155,892
$
153,317
$
152,247
$
152,272
Loans charged off:
Commercial, financial and agricultural
3,020
3,355
1,842
2,831
4,783
Real estate - construction
-
-
-
89
19
Real estate - mortgage
252
119
67
14
-
Consumer
155
108
98
231
341
Total charge offs
3,427
3,582
2,007
3,165
5,143
Recoveries:
Commercial, financial and agricultural
616
406
199
614
825
Real estate - construction
-
8
-
-
-
Real estate - mortgage
2
-
6
-
-
Consumer
37
15
9
39
11
Total recoveries
655
429
214
653
836
Net charge-offs
2,772
3,153
1,793
2,512
4,307
Reclassification from other
liabilities
1,079
-
-
-
-
Provision for credit losses
5,658
5,353
4,368
3,582
4,282
Ending balance
$
162,057
158,092
155,892
153,317
152,247
Allowance for credit losses to total
loans
1.31
%
1.28
%
1.31
%
1.32
%
1.31
%
Allowance for credit losses to total
average loans
1.31
%
1.31
%
1.33
%
1.32
%
1.31
%
Net charge-offs to total average loans
0.09
%
0.10
%
0.06
%
0.09
%
0.15
%
Provision for credit losses to total
average loans
0.18
%
0.18
%
0.15
%
0.12
%
0.15
%
Nonperforming assets:
Nonaccrual loans
$
37,075
$
33,454
$
34,457
$
19,349
$
20,912
Loans 90+ days past due and accruing
2,093
1,482
380
2,184
1,692
Other real estate owned and repossessed
assets
2,723
1,458
490
995
690
Total
$
41,891
$
36,394
$
35,327
$
22,528
$
23,294
Nonperforming loans to total loans
0.32
%
0.28
%
0.29
%
0.18
%
0.19
%
Nonperforming assets to total assets
0.25
%
0.23
%
0.22
%
0.14
%
0.15
%
Nonperforming assets to earning assets
0.26
%
0.23
%
0.23
%
0.14
%
0.16
%
Allowance for credit losses to nonaccrual
loans
437.11
%
472.57
%
452.42
%
795.17
%
731.74
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
4th Quarter 2023
3rd Quarter 2023
Interest income:
Interest and fees on loans
$
205,952
$
194,300
$
186,978
$
184,897
$
178,754
Taxable securities
17,493
16,158
15,979
15,512
15,522
Nontaxable securities
7
9
9
12
15
Federal funds sold
31
538
541
1,018
985
Other interest and dividends
24,496
16,535
23,203
27,623
17,930
Total interest income
247,979
227,540
226,710
229,062
213,206
Interest expense:
Deposits
113,211
104,671
104,066
108,155
95,901
Borrowed funds
19,647
16,994
20,149
19,220
17,607
Total interest expense
132,858
121,665
124,215
127,375
113,508
Net interest income
115,121
105,875
102,495
101,687
99,698
Provision for credit losses
5,659
5,353
4,368
3,582
4,282
Net interest income after
provision for credit losses
109,462
100,522
98,127
98,105
95,416
Non-interest income:
Service charges on deposit accounts
2,341
2,293
2,150
2,181
2,163
Mortgage banking
1,352
1,379
678
792
825
Credit card income
1,925
2,333
2,155
2,004
2,532
Bank-owned life insurance income
2,113
2,058
3,231
1,639
1,818
Other operating income
818
828
599
763
797
Total non-interest income
8,549
8,891
8,813
7,379
8,135
Non-interest expense:
Salaries and employee benefits
25,057
24,213
22,986
23,024
20,080
Equipment and occupancy expense
3,795
3,567
3,557
3,860
3,579
Third party processing and other
services
8,035
7,465
7,166
7,841
6,549
Professional services
1,715
1,741
1,464
1,417
1,265
FDIC and other regulatory assessments
2,355
2,202
3,905
9,509
2,346
Other real estate owned expense
103
7
30
17
18
Other operating expense
4,572
3,623
7,195
12,590
7,826
Total non-interest expense
45,632
42,818
46,303
58,258
41,663
Income before income tax
72,379
66,595
60,637
47,226
61,888
Provision for income tax
12,472
14,459
10,611
5,152
8,548
Net income
59,907
52,136
50,026
42,074
53,340
Dividends on preferred stock
-
31
-
31
-
Net income available to common
stockholders
$
59,907
$
52,105
$
50,026
$
42,043
$
53,340
Basic earnings per common share
$
1.10
$
0.96
$
0.92
$
0.77
$
0.98
Diluted earnings per common share
$
1.10
$
0.95
$
0.92
$
0.77
$
0.98
AVERAGE BALANCE SHEETS AND NET INTEREST
ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
4th Quarter 2023
3rd 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
$
12,351,073
6.63
%
$
12,045,743
6.48
%
$
11,723,391
6.41
%
$
11,580,716
6.33
%
$
11,545,003
6.13
%
Tax-exempt (2)
15,584
1.86
17,230
2.08
17,605
5.00
17,787
4.71
18,023
4.71
Total loans, net of unearned income
12,366,657
6.62
12,062,973
6.48
11,740,996
6.40
11,598,503
6.32
11,563,026
6.13
Mortgage loans held for sale
10,674
3.80
6,761
6.13
4,770
5.57
5,105
6.22
5,476
6.67
Debt securities:
Taxable
1,955,632
3.57
1,936,818
3.33
2,013,295
3.16
2,007,636
3.08
2,029,995
3.07
Tax-exempt (2)
815
4.42
1,209
3.64
1,296
3.40
1,739
2.30
2,408
2.49
Total securities (3)
1,956,447
3.57
1,938,027
3.33
2,014,591
3.16
2,009,375
3.08
2,032,403
3.07
Federal funds sold
2,106
5.86
38,475
5.62
37,298
5.83
72,178
5.60
74,424
5.25
Restricted equity securities
11,290
7.36
11,290
7.16
10,417
7.57
10,216
8.74
8,471
5.90
Interest-bearing balances with banks
1,775,192
5.46
1,183,482
5.57
1,687,977
5.48
1,981,411
5.49
1,293,243
5.45
Total interest-earning assets
$
16,122,366
6.12
$
15,241,008
6.01
$
15,496,049
5.88
$
15,676,788
5.80
$
14,977,043
5.65
Non-interest-earning assets:
Cash and due from banks
103,539
96,646
98,813
101,741
111,566
Net premises and equipment
60,607
59,653
60,126
60,110
60,121
Allowance for credit losses, accrued
interest and other assets
340,621
300,521
302,592
283,435
283,357
Total assets
$
16,627,133
$
15,697,828
$
15,957,580
$
16,122,074
$
15,432,087
Interest-bearing liabilities:
Interest-bearing deposits:
Checking
$
2,318,384
2.97
%
$
2,227,527
2.85
%
$
2,339,548
2.69
%
$
2,245,431
2.91
%
$
2,153,973
2.72
%
Savings
102,627
1.76
105,955
1.71
106,924
1.76
107,035
1.72
112,814
1.61
Money market
7,321,503
4.45
6,810,799
4.46
6,761,495
4.48
7,106,190
4.44
6,538,426
4.24
Time deposits
1,197,650
4.52
1,157,528
4.47
1,164,204
4.37
1,111,350
4.18
1,093,388
3.89
Total interest-bearing deposits
10,940,164
4.12
10,301,809
4.09
10,372,171
4.04
10,570,006
4.06
9,898,601
3.84
Federal funds purchased
1,391,118
5.42
1,193,190
5.50
1,422,828
5.50
1,338,110
5.49
1,237,721
5.43
Other borrowings
64,738
4.22
64,738
4.27
64,736
4.26
64,734
4.23
64,734
4.23
Total interest-bearing liabilities
$
12,396,020
4.26
%
$
11,559,737
4.23
%
$
11,859,735
4.21
%
$
11,972,850
4.22
%
$
11,201,056
4.02
%
Non-interest-bearing liabilities:
Non-interest-bearing checking
2,575,575
2,560,245
2,550,841
2,656,504
2,778,858
Other liabilities
122,455
89,418
91,066
76,651
72,924
Stockholders' equity
1,574,902
1,536,013
1,503,240
1,475,366
1,437,766
Accumulated other comprehensive loss
(41,819)
(47,584)
(47,302)
(59,297)
(58,517)
Total liabilities and stockholders'
equity
$
16,627,133
$
15,697,828
$
15,957,580
$
16,122,074
$
15,432,087
Net interest spread
1.86
%
1.78
%
1.67
%
1.58
%
1.63
%
Net interest margin
2.84
%
2.79
%
2.66
%
2.57
%
2.64
%
(1) Average loans include nonaccrual loans
in all periods. Loan fees of $3,949, $3,317, $3,655, $4,175, and
$2,996 are included in interest income in the third quarter of
2024, second quarter of 2024, first quarter of 2024, fourth quarter
of 2023, and third 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 $(48,770), $(67,823), $(68,162), $(84,647), and $(83,815) for
the third quarter of 2024, second quarter of 2024, first quarter of
2024, fourth quarter of 2023, and third quarter of 2023,
respectively, are excluded from the yield calculation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241021376550/en/
ServisFirst Bank Davis Mange (205) 949-3420
dmange@servisfirstbank.com
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