ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced
earnings and operating results for the quarter ended March 31,
2023.
First Quarter 2023 Highlights:
- Diluted earnings per share were $1.06 for the first quarter
of 2023, unchanged from the first quarter of 2022. When adjusting
for income on Paycheck Protection Program (“PPP”) loans in 2022,
diluted earnings per share increased 7% over the first quarter of
2022. (1)
- An increase of 23% in new accounts opened
year-over-year.
- Deposit balances grew $69 million during the first quarter
of 2023 while the deposit pipeline increased by $244 million, or
51%.
- Available liquidity sources totaled $8.4 billion as of March
31, 2023.
- Return on assets increased from 1.53% to 1.63%
year-over-year.
- Book value per share grew from $21.61 to $24.63, or 14%,
year-over-year.
- No brokered deposits or FHLB borrowings as of March 31,
2023.
- Bank level Tier 1 capital to average assets increased from
8.08% to 9.91% year-over-year.
- Industry-leading credit quality measures.
Tom Broughton, Chairman, President and CEO, said, “Our business
model has proven itself over the past 18 years and we continue to
attract new customers with a 23% increase in new accounts opened
year-over-year due to our financial stability, our commitment to
customer service, and our team of responsive bankers.”
Bud Foshee, CFO, said, “We are pleased with a very good first
quarter of growth in profitability, liquidity, and capital while
maintaining pristine credit quality.”
(1) See "GAAP Reconciliation and Management Explanation of
Non-GAAP Financial Measures" for a discussion of these Non-GAAP
financial measures
FINANCIAL SUMMARY (UNAUDITED)
(In thousands except share and per share
amounts)
Period Ending March 31, 2023
Period Ending December 31,
2022
% Change From Period Ending
December 31, 2022 to Period Ending March 31, 2023
Period Ending March 31, 2022
% Change From Period Ending March
31, 2022 to Period Ending March 31, 2023
QUARTERLY OPERATING RESULTS
Net Income
$
57,971
$
67,724
(14)
%
$
57,613
1
%
Net Income Available to Common
Stockholders
$
57,971
$
67,693
(14)
%
$
57,613
1
%
Diluted Earnings Per Share
$
1.06
$
1.24
(15)
%
$
1.06
-
%
Return on Average Assets
1.63
%
1.89
%
1.53
%
Return on Average Common Stockholders'
Equity
17.83
%
21.27
%
20.09
%
Average Diluted Shares Outstanding
54,534,482
54,537,685
54,522,042
BALANCE SHEET
Total Assets
$
14,566,559
$
14,595,753
-
%
$
15,339,419
(5)
%
Loans
11,629,802
11,687,968
-
%
9,898,957
17
%
Non-interest-bearing Demand Deposits
2,898,736
3,321,347
(13)
%
4,889,495
(41)
%
Total Deposits
11,615,317
11,546,805
1
%
12,408,755
(6)
%
Stockholders' Equity
1,339,817
1,297,896
3
%
1,172,975
14
%
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income and net income
available to common stockholders of $58.0 million for the quarter
ended March 31, 2023, compared to net income and net income
available to common stockholders of $57.6 million for the same
quarter in 2022. Basic and diluted earnings per common share were
$1.07 and $1.06, respectively, for the first quarter of 2023,
compared to $1.06 for both in the first quarter of 2022.
Annualized return on average assets was 1.63% and annualized
return on average common stockholders’ equity was 17.83% for the
first quarter of 2023, compared to 1.53% and 20.09%, respectively,
for the first quarter of 2022.
Net interest income was $108.3 million for the first quarter of
2023, compared to $122.4 million for the fourth quarter of 2022 and
$105.7 million for the first quarter of 2022. The net interest
margin in the first quarter of 2023 was 3.15% compared to 3.52% in
the fourth quarter of 2022 and 2.89% in the first quarter of 2022.
Loan yields were 5.70% during the first quarter of 2023 compared to
5.32% during the fourth quarter of 2022 and 4.29% during the first
quarter of 2022. Investment yields were 2.54% during the first
quarter of 2023, compared to 2.49% during the fourth quarter of
2022 and 2.17% during the first quarter of 2022. Average
interest-bearing deposit rates were 2.68% during the first quarter
of 2023, compared to 1.70% during the fourth quarter of 2022 and
0.31% during the first quarter of 2022. Average federal funds
purchased rates were 4.67% during the first quarter of 2023,
compared to 3.75% during the fourth quarter of 2022 and 0.23%
during the first quarter of 2022.
Average loans for the first quarter of 2023 were $11.65 billion,
an increase of $166.4 million, or 5.9% annualized, over average
loans of $11.49 billion for the fourth quarter of 2022, and an
increase of $2.00 billion, or 20.8%, over average loans of $9.65
billion for the first quarter of 2022.
Average total deposits for the first quarter of 2023 were $11.50
billion, an increase of $118.9 million, or 4.2%, annualized, over
average total deposits of $11.39 billion for the fourth quarter of
2022, and a decrease of $875.0 million, or 7.1%, over average total
deposits of $12.38 billion for the first quarter of 2022.
Non-performing assets to total assets were 0.12% for the first
quarter of 2023, unchanged compared to 0.12% for the fourth quarter
of 2022, and a decrease of two basis points compared to 0.14% for
the first quarter of 2022. Annualized net charge-offs to average
loans were 0.05% for the first quarter of 2023, compared to 0.06%
and 0.11% for the fourth quarter of 2022 and first quarter of 2022,
respectively. The allowance for credit losses as a percentage of
total loans at March 31, 2023, December 31, 2022 and March 31,
2022, was 1.28%, 1.25%, and 1.21%, respectively. We recorded a $4.2
million provision for credit losses in the first quarter of 2023
compared to $7.1 million in the fourth quarter of 2022, and $5.4
million in the first quarter of 2022.
Non-interest income decreased $1.6 million, or 20.5%, to $6.3
million for the first quarter of 2023 from $7.9 million in the
first quarter of 2022, and decreased $645,000, or 9.3%, on a linked
quarter basis. Service charges on deposit accounts decreased
$208,000, or 9.7%, to $1.9 million from the first quarter of 2022
to the first quarter of 2023, and increased $68,000, or 3.6%, on a
linked quarter basis. Mortgage banking revenue decreased $84,000,
or 16.0%, to $442,000 from the first quarter of 2022 to the first
quarter of 2023, and decreased $72,000, or 14.0%, on a linked
quarter basis. Net credit card revenue decreased $683,000, or
28.8%, to $1.7 million during the first quarter of 2023, compared
to $2.4 million during the first quarter of 2022, and decreased
$572,000, or 25.3%, on a linked quarter basis. The number of credit
card accounts increased approximately 8.2% and the aggregate amount
of spend on all credit card accounts increased 14.7% during the
first quarter of 2023 compared to the first quarter of 2022. Cash
surrender value life insurance increased $13,000, or 0.8%, to $1.6
million during the first quarter of 2023, compared to $1.6 million
during the first quarter of 2022, and increased $21,000, or 1.3%,
on a linked quarter basis. Other operating income for the first
quarter of 2023 decreased $4.0 million, or 86.3%, to $635,000 from
$4.6 million in the first quarter of 2022, and decreased $90,000,
or 12.4%, on a linked quarter basis. Other income in the first
quarter of 2022 included $3.4 million of income on our interest
rate cap. We did not recognize any income on the cap during the
first quarter of 2023 and $162,000 during the fourth quarter of
2022. Merchant service revenue increased by $118,000, or 35.2%, to
$455,000, during the first quarter of 2023, from $336,000 during
the first quarter of 2022, and decreased $35,000, or 7.2%, on a
linked quarter basis.
Non-interest expense for the first quarter of 2023 increased
$2.4 million, or 6.6%, to $39.7 million from $37.2 million in the
first quarter of 2022, and increased $1.6 million, or 4.1%, on a
linked quarter basis. Salary and benefit expense for the first
quarter of 2023 increased $765,000, or 4.2%, to $19.1 million from
$18.3 million in the first quarter of 2022, and decreased $164,000,
or 0.9%, on a linked quarter basis. The number of FTE employees
increased by 62 to 573 at March 31, 2023 compared to 511 at March
31, 2022, and increased by 2 from the end of the fourth quarter of
2022. Equipment and occupancy expense increased $502,000, or 17.1%,
to $3.4 million in the first quarter of 2023, from $2.9 million in
the first quarter of 2022, and increased $172,000, or 5.3% on a
linked-quarter basis. Third party processing and other services
expense increased $1.7 million, or 30.0%, to $7.3 million in the
first quarter of 2023, from $5.6 million in the first quarter of
2022, and decreased $886,000, or 10.8%, on a linked-quarter basis.
The increase year-over-year in third party processing also includes
Federal Reserve Bank charges related to correspondent bank
settlement activities. Professional services expense increased
$662,000, or 66.7%, to $1.7 million in the first quarter of 2023,
from $992,000 in the first quarter of 2022, and increased $732,000,
or 79.4%, on a linked quarter basis. FDIC and other regulatory
assessments increased $385,000, or 34.0%, to $1.5 million in the
first quarter of 2023, from $1.1 million in the first quarter of
2022, and increased $206,000, or 15.7%, on a linked quarter basis.
Other operating expenses for the first quarter of 2023 decreased
$1.6 million, or 18.8%, to $6.7 million from $8.3 million in the
first quarter of 2022, and increased $1.7 million on a
linked-quarter basis. The efficiency ratio was 34.60% during the
first quarter of 2023 compared to 32.74% during the first quarter
of 2022 and compared to 29.45% during the fourth quarter of
2022.
Income tax expense decreased $687,000, or 5.1%, to $12.8 million
in the first quarter of 2023, compared to $13.5 million in the
first quarter of 2022. Our effective tax rate was 18.07% for the
first quarter of 2023 compared to 18.96% for the first quarter of
2022. We recognized an aggregate of $3.9 million in credits during
the first quarter of 2023 related to investments in tax credit
partnerships, compared to an aggregate of $3.3 million in credits
during the first quarter of 2022. 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 quarter of 2023 and 2022 of $1.1 million and
$572,000, respectively.
GAAP Reconciliation and Management Explanation of Non-GAAP
Financial Measures
We originated over 7,400 PPP loans with an aggregate balance of
approximately $1.5 billion during the COVID-19 pandemic. At March
31, 2022, we had outstanding PPP loans of $107.6 million. Financial
measures in this press release that are presented adjusted for our
PPP activities are net income available to common stockholders and
diluted earnings per share. These financial measures exclude the
impact of PPP loans, net of tax, and are considered non-GAAP
financial measures. 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,
2022
Net income - GAAP
$
57,613
Adjustments:
PPP loan income
(4,869
)
Tax on adjustment
1,222
Adjusted net income - non-GAAP
$
53,966
Diluted earnings per share - GAAP
$
1.06
Adjustments:
PPP loan income
(0.09
)
Tax on adjustment
0.02
Adjusted diluted earnings per share -
non-GAAP
$
0.99
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 Birmingham, Huntsville,
Mobile, Montgomery and Dothan, Alabama, Northwest Florida, West
Central Florida, Nashville, Tennessee, Atlanta, Georgia,
Charleston, South Carolina, and Charlotte and Asheville, North
Carolina.
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: the global health and economic crisis precipitated by
the COVID-19 outbreak; general economic conditions, especially in
the credit markets and in the Southeast; the performance of the
capital markets; changes in interest rates, yield curves, interest
rate spread relationships and inflation; 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; economic crisis
and associated credit issues in industries most impacted by the
COVID-19 outbreak; possible changes in laws and regulations and
governmental monetary and fiscal policies, including, but not
limited to, economic stimulus initiatives and the ability of the
U.S. Congress to increase the U.S. statutory debt limit as needed;
the cost and other effects of legal and administrative cases and
similar contingencies; possible changes in the credit worthiness 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; the
effect of data breaches, cyberattacks or other data security
issues; 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, 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 2023
4th Quarter 2022
3rd Quarter 2022
2nd Quarter 2022
1st Quarter 2022
CONSOLIDATED STATEMENT OF INCOME
Interest income
$
181,322
$
170,273
$
149,299
$
126,555
$
113,188
Interest expense
73,021
47,889
22,881
10,187
7,466
Net interest income
108,301
122,384
126,418
116,368
105,722
Provision for credit losses
4,197
7,135
15,603
9,507
5,362
Net interest income after provision for
credit losses
104,104
115,249
110,815
106,861
100,360
Non-interest income
6,321
6,966
8,939
9,506
7,948
Non-interest expense
39,664
38,092
42,685
39,821
37,218
Income before income tax
70,761
84,123
77,069
76,546
71,090
Provision for income tax
12,790
16,399
13,038
14,410
13,477
Net income
57,971
67,724
64,031
62,136
57,613
Preferred stock dividends
-
31
-
31
-
Net income available to common
stockholders
$
57,971
$
67,693
$
64,031
$
62,105
$
57,613
Earnings per share - basic
$
1.07
$
1.25
$
1.18
$
1.14
$
1.06
Earnings per share - diluted
$
1.06
$
1.24
$
1.17
$
1.14
$
1.06
Average diluted shares outstanding
54,534,482
54,537,716
54,528,554
54,532,385
54,522,042
CONSOLIDATED BALANCE SHEET DATA
Total assets
$
14,566,559
$
14,595,753
$
13,890,030
$
14,494,317
$
15,339,419
Loans
11,629,802
11,687,968
11,278,614
10,617,320
9,898,957
Debt securities
1,646,937
1,678,936
1,714,603
1,790,218
1,617,977
Non-interest-bearing demand deposits
2,898,736
3,321,347
3,661,936
4,686,511
4,889,495
Total deposits
11,615,317
11,546,805
11,051,915
11,772,337
12,408,755
Borrowings
65,417
64,726
64,721
64,716
64,711
Stockholders' equity
1,339,817
1,297,896
1,242,589
1,211,918
1,172,975
Shares outstanding
54,398,025
54,326,527
54,324,007
54,306,875
54,282,132
Book value per share
$
24.63
$
23.89
$
22.87
$
22.32
$
21.61
Tangible book value per share (1)
$
24.38
$
23.64
$
22.62
$
22.07
$
21.36
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin
3.15
%
3.52
%
3.64
%
3.26
%
2.89
%
Return on average assets
1.63
%
1.89
%
1.77
%
1.67
%
1.53
%
Return on average common stockholders'
equity
17.83
%
21.27
%
20.49
%
20.93
%
20.09
%
Efficiency ratio
34.60
%
29.45
%
31.54
%
31.64
%
32.74
%
Non-interest expense to average earning
assets
1.15
%
1.10
%
1.23
%
1.11
%
1.02
%
CAPITAL RATIOS (2)
Common equity tier 1 capital to
risk-weighted assets
10.01
%
9.54
%
9.37
%
9.59
%
9.86
%
Tier 1 capital to risk-weighted assets
10.02
%
9.54
%
9.37
%
9.59
%
9.87
%
Total capital to risk-weighted assets
11.54
%
11.06
%
10.91
%
11.12
%
11.43
%
Tier 1 capital to average assets
9.49
%
9.29
%
8.84
%
8.19
%
7.67
%
Tangible common equity to total tangible
assets (1)
9.11
%
8.81
%
8.86
%
8.28
%
7.56
%
(1) This press release also contains
certain non-GAAP financial measures, including 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.
(2) Regulatory capital ratios for most
recent period are preliminary.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands)
March 31, 2023
March 31, 2022
% Change
ASSETS
Cash and due from banks
$
139,175
$
103,439
35
%
Interest-bearing balances due from
depository institutions
725,318
3,315,312
(78
)
%
Federal funds sold
6,478
24,638
(74
)
%
Cash and cash equivalents
870,971
3,443,389
(75
)
%
Available for sale debt securities, at
fair value
624,948
784,673
(20
)
%
Held to maturity debt securities (fair
value of $937,960 at March 31, 2023 and $799,347 at March 31,
2022)
1,021,989
833,304
23
%
Restricted equity securities
7,307
7,734
(6
)
%
Mortgage loans held for sale
1,651
403
310
%
Loans
11,629,802
9,898,957
17
%
Less allowance for credit losses
(148,965
)
(119,463
)
25
%
Loans, net
11,480,837
9,779,494
17
%
Premises and equipment, net
60,093
59,908
-
%
Goodwill and other identifiable intangible
assets
13,615
13,615
-
%
Other assets
485,148
416,899
16
%
Total assets
$
14,566,559
$
15,339,419
(5
)
%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing
$
2,898,736
$
4,889,495
(41
)
%
Interest-bearing
8,716,581
7,519,260
16
%
Total deposits
11,615,317
12,408,755
(6
)
%
Federal funds purchased
1,480,160
1,639,238
(10
)
%
Other borrowings
65,417
64,711
1
%
Other liabilities
65,848
53,740
23
%
Total liabilities
13,226,742
14,166,444
(7
)
%
Stockholders' equity:
Preferred stock, par value $0.001 per
share; 1,000,000 authorized and undesignated at March 31, 2023 and
March 31, 2022
-
-
Common stock, par value $0.001 per share;
200,000,000 shares authorized; 54,398,025 shares issued and
outstanding at March 31, 2023, and 100,000,000 shares authorized;
54,282,132 shares issued and outstanding at March 31, 2022
54
54
-
%
Additional paid-in capital
229,631
227,127
1
%
Retained earnings
1,152,681
956,169
21
%
Accumulated other comprehensive loss
(43,049
)
(10,875
)
296
%
Total stockholders' equity attributable to
ServisFirst Bancshares, Inc.
1,339,317
1,172,475
14
%
Noncontrolling interest
500
500
-
%
Total stockholders' equity
1,339,817
1,172,975
14
%
Total liabilities and stockholders'
equity
$
14,566,559
$
15,339,419
(5
)
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
Three Months Ended March 31,
2023
2022
Interest income:
Interest and fees on loans
$
163,732
$
103,105
Taxable securities
10,895
8,223
Nontaxable securities
21
43
Federal funds sold
614
13
Other interest and dividends
6,060
1,804
Total interest income
181,322
113,188
Interest expense:
Deposits
55,713
5,843
Borrowed funds
17,308
1,623
Total interest expense
73,021
7,466
Net interest income
108,301
105,722
Provision for credit losses
4,197
5,362
Net interest income after provision for
credit losses
104,104
100,360
Non-interest income:
Service charges on deposit accounts
1,934
2,142
Mortgage banking
442
526
Credit card income
1,689
2,372
Securities losses
-
(3,335
)
Increase in cash surrender value life
insurance
1,621
1,608
Other operating income
635
4,635
Total non-interest income
6,321
7,948
Non-interest expense:
Salaries and employee benefits
19,066
18,301
Equipment and occupancy expense
3,435
2,933
Third party processing and other
services
7,284
5,605
Professional services
1,654
992
FDIC and other regulatory assessments
1,517
1,132
Other real estate owned expense
6
3
Other operating expense
6,702
8,252
Total non-interest expense
39,664
37,218
Income before income tax
70,761
71,090
Provision for income tax
12,790
13,477
Net income
57,971
57,613
Net income available to common
stockholders
$
57,971
$
57,613
Basic earnings per common share
$
1.07
$
1.06
Diluted earnings per common share
$
1.06
$
1.06
LOANS BY TYPE (UNAUDITED)
(In thousands)
1st Quarter 2023
4th Quarter 2022
3rd Quarter 2022
2nd Quarter 2022
1st Quarter 2022
Commercial, financial and agricultural
$
3,081,926
$
3,145,317
$
3,104,155
$
2,966,040
$
2,955,927
Real estate - construction
1,469,670
1,532,388
1,433,698
1,383,155
1,164,690
Real estate - mortgage:
Owner-occupied commercial
2,243,436
2,199,280
2,145,621
2,026,807
1,919,811
1-4 family mortgage
1,138,645
1,146,831
1,089,826
1,015,698
926,697
Other mortgage
3,624,071
3,597,750
3,438,762
3,160,510
2,869,158
Subtotal: Real estate - mortgage
7,006,152
6,943,861
6,674,209
6,203,015
5,715,666
Consumer
72,054
66,402
66,552
65,110
62,674
Total loans
$
11,629,802
$
11,687,968
$
11,278,614
$
10,617,320
$
9,898,957
SUMMARY OF CREDIT LOSS EXPERIENCE
(UNAUDITED)
(Dollars in thousands)
1st Quarter 2023
4th Quarter 2022
3rd Quarter 2022
2nd Quarter 2022
1st Quarter 2022
Allowance for credit losses:
Beginning balance
$
146,297
$
140,967
$
128,387
$
119,463
$
116,660
Loans charged off:
Commercial financial and agricultural
1,257
2,116
2,902
1,667
2,574
Real estate - construction
-
-
-
-
-
Real estate - mortgage
26
-
170
23
27
Consumer
390
200
261
123
75
Total charge offs
1,673
2,316
3,333
1,813
2,676
Recoveries:
Commercial financial and agricultural
128
393
297
1,217
105
Real estate - construction
3
-
-
-
-
Real estate - mortgage
1
-
-
-
-
Consumer
11
118
12
13
12
Total recoveries
143
511
309
1,230
117
Net charge-offs
1,530
1,805
3,024
583
2,559
Provision for credit losses
4,197
7,135
15,604
9,507
5,362
Ending balance
$
148,965
$
146,297
$
140,967
$
128,387
$
119,463
Allowance for credit losses to total
loans
1.28
%
1.25
%
1.25
%
1.21
%
1.21
%
Allowance for credit losses to total
average
loans
1.30
%
1.27
%
1.29
%
1.26
%
1.24
%
Net charge-offs to total average loans
0.05
%
0.06
%
0.11
%
0.02
%
0.11
%
Provision for credit losses to total
average loans
0.14
%
0.25
%
0.57
%
0.37
%
0.23
%
Nonperforming assets:
Nonaccrual loans
$
13,157
$
12,450
$
11,655
$
10,540
$
14,738
Loans 90+ days past due and accruing
4,683
5,391
4,803
4,991
4,686
Other real estate owned and repossessed
assets
248
248
1,245
1,207
1,989
Total
$
18,088
$
18,089
$
17,703
$
16,738
$
21,413
Nonperforming loans to total loans
0.15
%
0.15
%
0.15
%
0.15
%
0.20
%
Nonperforming assets to total assets
0.12
%
0.12
%
0.13
%
0.12
%
0.14
%
Nonperforming assets to earning assets
0.13
%
0.13
%
0.13
%
0.12
%
0.14
%
Allowance for credit losses to nonaccrual
loans
1,132.24
%
1,175.08
%
1,209.50
%
1,218.05
%
826.19
%
Restructured accruing loans
$
2,480
$
236
$
421
$
426
Restructured accruing loans to total
loans
0.02
%
-
%
-
%
-
%
TROUBLED DEBT RESTRUCTURINGS (TDRs)
(UNAUDITED)
(In thousands)
4th Quarter 2022
3rd Quarter 2022
2nd Quarter 2022
1st Quarter 2022
Beginning balance:
$
2,041
$
2,403
$
2,482
$
2,576
Additions
444
-
-
-
Net (paydowns) / advances
(5)
(362)
(79)
(94)
Charge-offs
-
-
-
-
Transfer to OREO
-
-
-
-
Ending balance
$
2,480
$
2,041
$
2,403
$
2,482
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
1st Quarter 2023
4th Quarter 2022
3rd Quarter 2022
2nd Quarter 2022
1st Quarter 2022
Interest income:
Interest and fees on loans
$
163,732
$
153,924
$
131,375
$
111,287
$
103,105
Taxable securities
10,895
10,895
11,089
10,515
8,223
Nontaxable securities
21
27
30
37
43
Federal funds sold
614
818
632
93
13
Other interest and dividends
6,060
4,609
6,173
4,623
1,804
Total interest income
181,322
170,273
149,299
126,555
113,188
Interest expense:
Deposits
55,713
33,471
13,655
6,427
5,843
Borrowed funds
17,308
14,418
9,226
3,760
1,623
Total interest expense
73,021
47,889
22,881
10,187
7,466
Net interest income
108,301
122,384
126,418
116,368
105,722
Provision for credit losses
4,197
7,135
15,603
9,507
5,362
Net interest income after provision for
credit losses
104,104
115,249
110,815
106,861
100,360
Non-interest income:
Service charges on deposit accounts
1,934
1,866
1,892
2,133
2,142
Mortgage banking
442
514
784
614
526
Credit card income
1,689
2,261
2,612
2,672
2,372
Securities losses
-
-
-
(2,833
)
(3,335
)
Increase in cash surrender value life
insurance
1,621
1,600
1,637
1,633
1,608
Other operating income
635
725
2,014
5,287
4,635
Total non-interest income
6,321
6,966
8,939
9,506
7,948
Non-interest expense:
Salaries and employee benefits
19,066
19,230
19,687
20,734
18,301
Equipment and occupancy expense
3,435
3,263
3,140
2,983
2,933
Third party processing and other
services
7,284
8,170
7,213
6,345
5,605
Professional services
1,654
922
1,036
1,327
992
FDIC and other regulatory assessments
1,517
1,311
975
1,147
1,132
Other real estate owned expense
6
239
21
32
3
Other operating expense
6,702
4,957
10,613
7,253
8,252
Total non-interest expense
39,664
38,092
42,685
39,821
37,218
Income before income tax
70,761
84,123
77,069
76,546
71,090
Provision for income tax
12,790
16,399
13,038
14,410
13,477
Net income
57,971
67,724
64,031
62,136
57,613
Dividends on preferred stock
-
31
-
31
-
Net income available to common
stockholders
$
57,971
$
67,693
$
64,031
$
62,105
$
57,613
Basic earnings per common share
$
1.07
$
1.25
$
1.18
$
1.14
$
1.06
Diluted earnings per common share
$
1.06
$
1.24
$
1.17
$
1.14
$
1.06
AVERAGE BALANCE SHEETS AND NET INTEREST
ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
1st Quarter 2023
4th Quarter 2022
3rd Quarter 2022
2nd Quarter 2022
1st Quarter 2022
Average Balance
Yield / Rate
Average Balance
Yield / Rate
Average Balance
Yield / Rate
Average Balance
Yield / Rate
Average Balance
Yield / Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)
Taxable
$
11,632,439
5.70
%
$
11,465,538
5.32
%
$
10,900,105
4.77
%
$
10,165,470
4.38
%
$
9,621,484
4.29
%
Tax-exempt (2)
18,978
3.36
19,526
6.60
19,852
4.14
23,616
4.09
25,195
4.08
Total loans, net of unearned income
11,651,417
5.70
11,485,064
5.32
10,919,957
4.77
10,189,086
4.38
9,646,679
4.29
Mortgage loans held for sale
1,522
6.40
1,515
3.67
2,906
2.73
471
3.41
927
1.73
Debt securities:
Taxable
1,724,523
2.54
1,755,764
2.49
1,797,560
2.47
1,775,425
2.37
1,518,572
2.17
Tax-exempt (2)
3,781
2.43
4,863
2.39
5,863
2.39
7,148
2.35
8,812
2.36
Total securities (3)
1,728,304
2.54
1,760,627
2.49
1,803,423
2.47
1,782,573
2.37
1,527,384
2.17
Federal funds sold
50,526
4.93
82,656
3.93
102,028
2.46
30,721
1.21
16,639
0.31
Restricted equity securities
9,919
7.69
7,724
7.35
7,724
3.65
7,724
3.74
7,371
3.70
Interest-bearing balances with banks
510,021
4.67
458,115
3.83
945,142
2.56
2,332,412
0.80
3,637,882
0.20
Total interest-earning assets
$
13,951,709
5.27
$
13,795,701
4.90
$
13,781,180
4.30
$
14,342,987
3.54
$
14,836,882
3.06
Non-interest-earning assets:
Cash and due from banks
106,448
113,823
256,607
204,994
74,534
Net premises and equipment
60,617
60,323
60,155
60,673
61,209
Allowance for credit losses, accrued
interest and other assets
279,775
273,964
294,006
297,893
313,560
Total assets
$
14,398,549
$
14,243,811
$
14,391,948
$
14,906,547
$
15,286,185
Interest-bearing liabilities:
Interest-bearing deposits:
Checking
$
1,675,355
1.25
%
$
1,763,622
0.73
%
$
1,722,926
0.28
%
$
1,699,602
0.21
%
$
1,594,645
0.20
%
Savings
134,671
0.94
141,163
0.64
144,368
0.21
134,469
0.18
135,545
0.17
Money market
5,756,642
3.17
5,047,133
2.07
4,444,583
0.89
4,617,021
0.33
4,985,224
0.26
Time deposits
850,639
2.51
860,336
1.69
809,057
1.16
766,225
0.86
792,930
0.91
Total interest-bearing deposits
8,417,307
2.68
7,812,254
1.70
7,120,934
0.76
7,217,317
0.36
7,508,344
0.31
Federal funds purchased
1,389,217
4.67
1,453,445
3.75
1,493,444
2.27
1,550,805
0.79
1,620,012
0.23
Other borrowings
114,726
4.61
64,726
4.23
65,406
4.19
64,713
4.28
64,708
4.28
Total interest-bearing liabilities
$
9,921,250
2.98
%
$
9,330,425
2.04
%
$
8,679,784
1.05
%
$
8,832,835
0.46
%
$
9,193,064
0.33
%
Non-interest-bearing liabilities:
Non-interest-bearing demand deposits
3,086,774
3,572,956
4,410,318
4,824,521
4,870,701
Other liabilities
72,121
77,544
62,093
58,784
59,619
Stockholders' equity
1,358,587
1,307,553
1,263,870
1,205,551
1,156,186
Accumulated other comprehensive (loss)
income
(40,183)
(44,667)
(24,117)
(15,144)
6,615
Total liabilities and stockholders'
equity
$
14,398,549
$
14,243,811
$
14,391,948
$
14,906,547
$
15,286,185
Net interest spread
2.29
%
2.86
%
3.25
%
3.08
%
2.77
%
Net interest margin
3.15
%
3.52
%
3.64
%
3.26
%
2.89
%
(1)
Average loans include nonaccrual loans in
all periods. Loan fees of $3,263, $3,630, $3,849, $5,303, and
$6,823 are included in interest income in the first quarter of
2023, fourth quarter of 2022, third quarter of 2022, second quarter
of 2022, and first quarter of 2022, respectively.
(2)
Interest income and yields are presented
on a fully taxable equivalent basis using a tax rate of 21%.
(3)
Unrealized (losses) gains on debt
securities of $(59,738), $(62,568), $(34,688), $(25,703), and
$8,245 for the first quarter of 2023, fourth quarter of 2022, third
quarter of 2022, second quarter of 2022, and first quarter of 2022,
respectively, are excluded from the yield calculation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230417005638/en/
ServisFirst Bank Davis Mange (205) 949-3420
dmange@servisfirstbank.com
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