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ServisFirst Bancshares, Inc. Announces Results For First Quarter of 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 Period Ending % Change From Period Ending % Change From
March 31, 2024 December 31, Period Ending March 31, 2023 Period Ending
2023 December 31, March 31, 2023
2023 to Period to Period Ending
Ending March March 31, 2024
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
$ 51,373 $ 49,860 3.0 % $ 57,971 (11.4 )%
Stockholders, net of tax*
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
14.19 % 13.98 % 17.83 %
Stockholders' Equity, net of tax*
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 %
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."
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 Three Months Three Months
Ended March 31, Ended December Ended March 31,
2024 31, 2023 2023
-------------------------------------------------- -------------------------------------------------- -------------------- --------------------------------------------------
Net income - GAAP $ 50,026 $ 42,074 $ 57,971
Adjustments:
1,799 7,152 -
FDIC special assessment
- 2,150 -
Privilege tax expense
- 1,134 -
EDP contract termination expense
(452 ) (2,619 ) -
Tax on adjustments
-------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
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:
1,799 7,152 -
FDIC special assessment
- 2,150 -
Privilege tax expense
- 1,134 -
EDP contract termination expense
(452 ) (2,619 ) -
Tax on adjustments
-------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
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:
0.03 0.13 -
FDIC special assessment
- 0.04 -
Privilege tax expense
- 0.02 -
EDP contract termination expense
(0.01 ) (0.05 ) -
Tax on adjustments
-------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
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:
1,799 7,152 -
FDIC special assessment
- 2,150 -
Privilege tax expense
- 1,134 -
EDP contract termination expense
(452 ) (2,619 ) -
Tax on adjustments
-------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
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:
1,799 7,152 -
FDIC special assessment
- 2,150 -
Privilege tax expense
- 1,134 -
EDP contract termination expense
(452 ) (2,619 ) -
Tax on adjustments
-------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
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:
1,799 7,152 -
FDIC special assessment
- 2,150 -
Privilege tax expense
- 1,134 -
EDP contract termination expense
-------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
Adjusted non-interest expense $ 43,751 $ 46,044 $ 39,664
-------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
Net interest income plus non-interest income - GAAP $ 111,308 $ 109,066 $ 114,622
-------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
At March 31, At December 31, At September 30, At June 30, At March 31,
2024 2023 2023 2023 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
(13,615 ) (13,615 ) (13,615 ) (13,615 ) (13,615 )
Adjustment for Goodwill
-------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
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
(13,615 ) (13,615 ) (13,615 ) (13,615 ) (13,615 )
Adjustment for Goodwill
-------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
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, March 31, %
2024 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 %
-------------------- ---------- -------------------- -------------------- ---------- --------------------
1,450,899 870,971 67 %
Cash and cash equivalents
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 %
-------------------- ---------- -------------------- -------------------- ---------- --------------------
11,724,804 11,480,837 2 %
Loans, net
Premises and equipment, net 59,302 60,093 (1 )%
Goodwill 13,615 13,615 - %
Other assets 512,493 485,148 6 %
-------------------- ---------- -------------------- -------------------- ---------- --------------------
$ 15,721,630 $ 14,566,559 8 %
Total assets
==================== ========== ==================== ==================== ========== ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
$ 2,627,639 $ 2,898,736 (9 )%
Non-interest-bearing demand
10,123,809 8,716,581 16 %
Interest-bearing
-------------------- ---------- -------------------- -------------------- ---------- --------------------
12,751,448 11,615,317 10 %
Total deposits
Federal funds purchased 1,345,328 1,480,160 (9 )%
Other borrowings 64,737 65,417 (1 )%
Other liabilities 84,081 65,848 28 %
-------------------- ---------- -------------------- -------------------- ---------- --------------------
14,245,594 13,226,742 8 %
Total liabilities
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
54 54 - %
shares issued and outstanding at March 31, 2023
233,560 229,631 2 %
Additional paid-in capital
1,288,514 1,152,681 12 %
Retained earnings
(46,592 ) (43,049 ) 8 %
Accumulated other comprehensive loss
-------------------- ---------- -------------------- -------------------- ---------- --------------------
1,475,536 1,339,317 10 %
Total stockholders' equity attributable to ServisFirst Bancshares, Inc.
500 500 - %
Noncontrolling interest
-------------------- ---------- -------------------- -------------------- ---------- --------------------
1,476,036 1,339,817 10 %
Total stockholders' equity
-------------------- ---------- -------------------- -------------------- ---------- --------------------
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
Three Months Ended March 31,
2024 2023
---------------------------------------- ----------------------------------------
Interest income:
$ 186,978 $ 163,732
Interest and fees on loans
15,979 10,895
Taxable securities
9 21
Nontaxable securities
541 614
Federal funds sold
23,203 6,060
Other interest and dividends
-------------------- -------------------- -------------------- --------------------
226,710 181,322
Total interest income
-------------------- -------------------- -------------------- --------------------
Interest expense:
104,066 55,713
Deposits
20,149 17,308
Borrowed funds
-------------------- -------------------- -------------------- --------------------
124,215 73,021
Total interest expense
-------------------- -----------------