ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced
earnings and operating results for the quarter ended December 31,
2024.
Fourth Quarter 2024 Highlights:
- Diluted earnings per share of $1.19 for the
quarter.
- Diluted earnings per share increased 8% from the third
quarter of 2024, and 31% from the year-ago quarter on an adjusted
basis*.
- Net interest margin increased 12 basis points from the third
quarter of 2024.
- Net interest income increased by $8.0 million, or 28%
annualized, during the quarter.
- Deposits grew by $397 million, or 12% annualized, during the
quarter.
- Loans grew by $268 million, or 9% annualized, during the
quarter.
- Cash dividend increased from $0.30 to $0.335 per share, a
12% increase.
- Book value per share of $29.63, up 12.0% from the fourth
quarter of 2023 and 11.6% annualized, from the third quarter of
2024.
- Liquidity remains solid with $2.4 billion in cash on hand
and no FHLB advances or brokered deposits.
- Consolidated common equity tier 1 capital to risk-weighted
assets increased from 10.91% to 11.42% year-over-year.
- Credit quality continues to be strong with non-performing
assets to total assets of 0.26%.
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
for 2025.”
Ed Woodie, Interim CFO, said, “We continue to enjoy higher net
interest income. Our margin expanded $8.0 million, a 28% annualized
linked quarter increase. Operating efficiency remains a focus for
us as we enter 2025.”
* 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.”
FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share
amounts)
Period Ending December 31,
2024
Period Ending September 30,
2024
% Change From Period Ending
September 30, 2024 to Period Ending December 31, 2024
Period Ending December 31,
2023
% Change From Period Ending
December 31, 2023 to Period Ending December 31, 2024
QUARTERLY OPERATING RESULTS
Net Income
$
65,173
$
59,907
8.8
%
$
42,074
54.9
%
Net Income Available to Common
Stockholders
$
65,142
$
59,907
8.7
%
$
42,043
54.9
%
Diluted Earnings Per Share
$
1.19
$
1.10
8.2
%
$
0.77
54.5
%
Return on Average Assets
1.52
%
1.43
%
1.04
%
Return on Average Common Stockholders'
Equity
16.29
%
15.55
%
11.78
%
Average Diluted Shares Outstanding
54,649,808
54,642,582
54,548,719
Adjusted Net Income, net of tax*
$
65,173
$
59,907
8.8
%
$
49,891
30.6
%
Adjusted Net Income Available to
Common
Stockholders, net of tax*
$
65,142
$
59,907
8.7
%
$
49,860
30.6
%
Adjusted Diluted Earnings Per Share, net
of tax*
$
1.19
$
1.10
8.2
%
$
0.91
30.8
%
Adjusted Return on Average Assets, net of
tax*
1.52
%
1.43
%
1.23
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
16.29
%
15.55
%
13.98
%
YEAR-TO-DATE OPERATING RESULTS
Net Income
$
227,242
$
206,853
9.9
%
Net Income Available to Common
Stockholders
$
227,180
$
206,791
9.9
%
Diluted Earnings Per Share
$
4.16
$
3.79
9.8
%
Return on Average Assets
1.39
%
1.37
%
Return on Average Common Stockholders'
Equity
14.98
%
15.13
%
Average Diluted Shares Outstanding
54,624,234
54,530,797
Adjusted Net Income, net of tax*
$
228,589
$
214,670
6.5
%
Adjusted Net Income Available to
Common
Stockholders, net of tax*
$
228,527
$
214,608
6.5
%
Adjusted Diluted Earnings Per Share, net
of tax*
$
4.18
$
3.94
Adjusted Return on Average Assets, net of
tax*
1.40
%
1.42
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
15.07
%
15.71
%
BALANCE SHEET
Total Assets
$
17,351,643
$
16,449,178
5.5
%
$
16,129,668
7.6
%
Loans
12,605,836
12,338,226
2.2
%
11,658,829
8.1
%
Non-interest-bearing Demand Deposits
2,619,687
2,576,329
1.7
%
2,643,101
(0.9)
%
Total Deposits
13,543,459
13,146,529
3.0
%
13,273,511
2.0
%
Stockholders' Equity
1,616,772
1,570,269
3.0
%
1,440,405
12.2
%
* This press release includes certain
non-GAAP financial measures: adjusted net income, adjusted net
income available to common stockholders, adjusted diluted earnings
per share, adjusted return on average assets, adjusted return on
average common stockholders’ equity, adjusted efficiency ratio,
tangible common stockholders' equity, total tangible assets,
tangible book value per share, and tangible common equity to total
tangible assets. Please see “GAAP Reconciliation and Management
Explanation of Non-GAAP Financial Measures.”
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income of $65.2
million and net income available to common stockholders of $65.1
million for the quarter ended December 31, 2024, compared to net
income and net income available to common stockholders of $59.9
million for the third quarter of 2024 and net income of $42.1
million and net income available to common stockholders of $42.0
million for the fourth quarter of 2023. Basic and diluted earnings
per common share were both $1.19 in the fourth quarter of 2024,
compared to $1.10 for both in the third quarter of 2024 and $0.77
for both in the fourth quarter of 2023.
Annualized return on average assets was 1.52% and annualized
return on average common stockholders’ equity was 16.29% for the
fourth quarter of 2024, compared to 1.04% and 11.78%, respectively,
for the fourth quarter of 2023.
Net interest income was $123.2 million for the fourth quarter of
2024, compared to $115.1 million for the third quarter of 2024 and
$101.7 million for the fourth quarter of 2023. The net interest
margin in the fourth quarter of 2024 was 2.96% compared to 2.84% in
the third quarter of 2024 and 2.57% in the fourth quarter of 2023.
Loan yields were 6.43% during the fourth quarter of 2024 compared
to 6.62% during the third quarter of 2024 and 6.32% during the
fourth quarter of 2023. Investment yields were 3.49% during the
fourth quarter of 2024 compared to 3.57% during the third quarter
of 2024 and 3.08% during the fourth quarter of 2023. Average
interest-bearing deposit rates were 3.63% during the fourth quarter
of 2024, compared to 4.12% during the third quarter of 2024 and
4.06% during the fourth quarter of 2023. Average federal funds
purchased rates were 4.80% during fourth quarter of 2024, compared
to 5.42% during the third quarter of 2024 and 5.49% during the
fourth quarter of 2023.
Average loans for the fourth quarter of 2024 were $12.43
billion, an increase of $60.6 million, or 1.9% annualized, from
average loans of $12.37 billion for the third quarter of 2024, and
an increase of $828.8 million, or 7.1%, from average loans of
$11.60 billion for the fourth quarter of 2023. Ending total loans
for the fourth quarter of 2024 were $12.61 billion, an increase of
$267.6 million, or 8.7% annualized, from $12.34 billion for the
third quarter of 2024, and an increase of $947.0 million, or 8.1%,
from $11.66 billion for the fourth quarter of 2023.
Average total deposits for the fourth quarter of 2024 were
$13.48 billion, a decrease of $32.6 million, or 1.0% annualized,
from average total deposits of $13.52 billion for the third quarter
of 2024, and an increase of $256.7 million, or 1.9%, from average
total deposits of $13.23 billion for the fourth quarter of 2023.
Ending total deposits for the fourth quarter of 2024 were $13.54
billion, an increase of $396.9 million, or 12.1% annualized, from
$13.15 billion for the third quarter of 2024, and an increase of
$269.9 million, or 2.0%, from $13.27 billion for the fourth quarter
of 2023.
Non-performing assets to total assets were 0.26% for the fourth
quarter of 2024, compared to 0.25% for the third quarter of 2024
and 0.14% for the fourth quarter of 2023. The increase in
non-performing assets to total assets year-over-year 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 fourth quarter of 2024,
compared to 0.09% for the third quarter of 2024 and 0.09% for the
fourth quarter of 2023. The allowance for credit losses as a
percentage of total loans at December 31, 2024, September 30, 2024,
and December 31, 2023, was 1.30%, 1.30%, and 1.32%, respectively.
We recorded a $6.4 million provision for credit losses in the
fourth quarter of 2024 and $5.4 million in the third quarter of
2024, $2.7 million of which is a provision for the potential impact
of Hurricane Helene and Milton during the third quarter of 2024.
Management is still assessing the effects of both hurricanes and
has decided to leave the current provision unchanged while
determining if additional provisions are warranted. We recorded
provisions for credit losses of $3.6 million in the fourth quarter
of 2023.
Non-interest income increased $1.4 million, or 19.3%, to $8.8
million for the fourth quarter of 2024 from $7.4 million in the
fourth quarter of 2023, and increased $254,000, or 3.0%, on a
linked quarter basis. Service charges on deposit accounts increased
$469,000, or 21.5%, to $2.7 million for the fourth quarter of 2024
from $2.2 million in the fourth quarter of 2023, and increased
$309,000, or 13.2%, on a linked quarter basis. Mortgage banking
revenue increased $721,000, or 91.0%, to $1.5 million for the
fourth quarter of 2024 from $792,000 in the fourth quarter of 2023,
and increased $161,000, or 11.9%, on a linked quarter basis. Closed
loans increased 55% during the fourth quarter of 2024 compared to
the fourth quarter of 2023. Net credit card income decreased
$137,000, or 6.8%, to $1.9 million for the fourth quarter of 2024
from $2.0 million in the fourth quarter of 2023, and decreased
$58,000, or 3.0%, on a linked quarter basis. Bank-owned life
insurance (“BOLI”) income increased $492,000, or 30.0%, to $2.1
million for the fourth quarter of 2024 from $1.6 million in the
fourth quarter of 2023, and increased $18,000, or 0.9%, on a linked
quarter basis. Other operating income decreased $121,000, or 15.9%,
to $642,000 for the fourth quarter of 2024 from $763,000 in the
fourth quarter of 2023, and decreased $176,000, or 21.5%, on a
linked quarter basis.
Non-interest expense decreased $11.4 million, or 19.5%, to $46.9
million for the fourth quarter of 2024 from $58.3 million in the
fourth quarter of 2023, and increased $1.3 million, or 2.8%, on a
linked quarter basis. Salary and benefit expense increased $1.0
million, or 4.5%, to $24.1 million for the fourth quarter of 2024
from $23.0 million in the fourth quarter of 2023, and decreased
$995,000, or 4.0%, on a linked quarter basis. The number of
full-time equivalent (“FTE”) employees increased by 39, or 6.60% to
630 at December 31, 2024 compared to 591 at December 31, 2023, and
increased by 10, or 1.61%, from the end of the third quarter of
2024. Equipment and occupancy expense decreased $260,000, or 6.7%,
to $3.6 million for the fourth quarter of 2024 from $3.9 million in
the fourth quarter of 2023, and decreased $195,000, or 5.1%, on a
linked quarter basis. Third party processing and other services
expense increased $674,000, or 8.6%, to $8.5 million for the fourth
quarter of 2024 from $7.8 million in the fourth quarter of 2023,
and increased $480,000, or 6.0%, on a linked quarter basis.
Professional services expense increased $564,000, or 39.8%, to $2.0
million for the fourth quarter of 2024 from $1.4 million in the
fourth quarter of 2023, and increased $266,000, or 15.5%, on a
linked quarter basis. FDIC and other regulatory assessments
decreased $7.3 million, or 76.6%, to $2.2 million for the fourth
quarter of 2024 from $9.5 million in the fourth quarter of 2023,
and decreased $130,000, or 5.5%, on a linked quarter basis. In the
first quarter of 2024 and fourth quarter of 2023, the FDIC
implemented a special assessment adjustment to recapitalize the
Deposit Insurance Fund, see “GAAP Reconciliation and Management
Explanation of Non-GAAP Financial Measures” for more discussion.
Other operating expenses decreased $6.1 million, or 48.7%, to $6.5
million for the fourth quarter of 2024 from $12.6 million in the
fourth quarter of 2023, and increased $1.9 million, or 41.2%, on a
linked quarter basis. An incremental expense in the fourth quarter
of 2023 related to tax credit investments of $3.3 million,
contributed to the decrease in other operating expenses
year-over-year. 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
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 35.54% during the fourth quarter
of 2024 compared to 55.23% during the fourth quarter of 2023 and
36.90% during the third quarter of 2024.
Income tax expense increased $9.0 million, or 175.6%, to $14.2
million in the fourth quarter of 2024, compared to $5.2 million in
the fourth quarter of 2023. Our effective tax rate was 17.89% for
the fourth quarter of 2024 compared to 10.91% for the fourth
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 fourth
quarters of 2024 and 2023 of $624,000 and $252,000,
respectively.
About ServisFirst Bancshares, Inc.
ServisFirst Bancshares, Inc. is a bank holding company based in
Birmingham, Alabama. Through its subsidiary ServisFirst Bank,
ServisFirst Bancshares, Inc. provides business and personal
financial services from locations in Alabama, Florida, Georgia,
North and South Carolina, Tennessee, and Virginia. We also operate
loan production offices in Florida and Tennessee. Through the
ServisFirst Bank, we originate commercial, consumer and other loans
and accept deposits, provide electronic banking services, such as
online and mobile banking, including remote deposit capture,
deliver treasury and cash management services and provide
correspondent banking services to other financial institutions.
ServisFirst Bancshares, Inc. files periodic reports with the
U.S. Securities and Exchange Commission (SEC). Copies of its
filings may be obtained through the SEC’s website at www.sec.gov or
at www.servisfirstbancshares.com.
Statements in this press release that are not historical facts,
including, but not limited to, statements concerning future
operations, results or performance, are hereby identified as
"forward-looking statements" for the purpose of the safe harbor
provided by Section 21E of the Securities Exchange Act of 1934 and
Section 27A of the Securities Act of 1933. The words "believe,"
"expect," "anticipate," "project," “plan,” “intend,” “will,”
“could,” “would,” “might” and similar expressions often signify
forward-looking statements. Such statements involve inherent risks
and uncertainties. ServisFirst Bancshares, Inc. cautions that such
forward-looking statements, wherever they occur in this press
release or in other statements attributable to ServisFirst
Bancshares, Inc., are necessarily estimates reflecting the judgment
of ServisFirst Bancshares, Inc.’s senior management and involve
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 assumption forming the basis of
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)
4th Quarter 2024
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
4th Quarter 2023
CONSOLIDATED STATEMENT OF INCOME
Interest income
$
243,892
$
247,979
$
227,540
$
226,710
$
229,062
Interest expense
120,724
132,858
121,665
124,215
127,375
Net interest income
123,168
115,121
105,875
102,495
101,687
Provision for credit losses
5,704
5,659
5,353
4,368
3,582
Net interest income after provision for
credit losses
117,464
109,462
100,522
98,127
98,105
Non-interest income
8,803
8,549
8,891
8,813
7,379
Non-interest expense
46,896
45,632
42,818
46,303
58,258
Income before income tax
79,371
72,379
66,595
60,637
47,226
Provision for income tax
14,198
12,472
14,459
10,611
5,152
Net income
65,173
59,907
52,136
50,026
42,074
Preferred stock dividends
31
-
31
-
31
Net income available to common
stockholders
$
65,142
$
59,907
$
52,105
$
50,026
$
42,043
Earnings per share - basic
$
1.19
$
1.10
$
0.96
$
0.92
$
0.77
Earnings per share - diluted
$
1.19
$
1.10
$
0.95
$
0.92
$
0.77
Average diluted shares outstanding
54,649,808
54,642,582
54,608,679
54,595,384
54,548,719
CONSOLIDATED BALANCE SHEET DATA
Total assets
$
17,351,643
$
16,449,178
$
16,049,812
$
15,721,630
$
16,129,668
Loans
12,605,836
12,338,226
12,332,780
11,880,696
11,658,829
Debt securities
1,876,253
1,867,587
1,941,641
1,941,625
1,882,847
Non-interest-bearing demand deposits
2,619,687
2,576,329
2,475,415
2,627,639
2,643,101
Total deposits
13,543,459
13,146,529
13,259,392
12,751,448
13,273,511
Borrowings
64,743
64,741
64,739
64,737
64,735
Stockholders' equity
1,616,772
1,570,269
1,510,576
1,476,036
1,440,405
Shares outstanding
54,570,138
54,551,543
54,521,479
54,507,778
54,461,580
Book value per share
$
29.63
$
28.79
$
27.71
$
27.08
$
26.45
Tangible book value per share (1)
$
29.38
$
28.54
$
27.46
$
26.83
$
26.20
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin
2.96
%
2.84
%
2.79
%
2.66
%
2.57
%
Return on average assets
1.52
%
1.43
%
1.34
%
1.26
%
1.04
%
Return on average common stockholders'
equity
16.29
%
15.55
%
14.08
%
13.82
%
11.78
%
Efficiency ratio
35.54
%
36.90
%
37.31
%
43.30
%
55.23
%
Non-interest expense to average earning
assets
1.13
%
1.13
%
1.13
%
1.20
%
1.47
%
CAPITAL RATIOS (2)
Common equity tier 1 capital to
risk-weighted assets
11.42
%
11.25
%
10.93
%
11.07
%
10.91
%
Tier 1 capital to risk-weighted assets
11.42
%
11.25
%
10.93
%
11.08
%
10.92
%
Total capital to risk-weighted assets
12.90
%
12.77
%
12.43
%
12.61
%
12.45
%
Tier 1 capital to average assets
9.59
%
9.54
%
9.81
%
9.44
%
9.12
%
Tangible common equity to total tangible
assets (1)
9.25
%
9.47
%
9.33
%
9.31
%
8.85
%
(1) This press release contains certain
non-GAAP financial measures. Please see “GAAP Reconciliation and
Management Explanation of Non-GAAP Financial Measures.”
(2) Regulatory capital ratios for most
recent period are preliminary.
GAAP Reconciliation and Management Explanation of Non-GAAP
Financial Measures
This press release contains certain non-GAAP financial measures,
including adjusted net income, adjusted net income available to
common stockholders, adjusted diluted earnings per share, adjusted
return on average assets, adjusted return on average common
stockholders’ equity, and adjusted efficiency ratio. During the
fourth quarter of 2023, we recorded a one-time expense of $7.2
million associated with the FDIC’s special assessment to
recapitalize the Deposit Insurance Fund following bank failures in
the spring of 2023. This assessment was updated in the first
quarter of 2024 resulting in additional expense of $1.8 million.
Additionally, during the fourth quarter of 2023 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. We can continue to provide best-in-class
products with our current service provider. 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.
At December 31, 2024
At September 30, 2024
At June 30, 2024
At March 31, 2024
At December 31, 2023
Book value per share - GAAP
$
29.63
$
28.79
$
27.71
$
27.08
$
26.45
Total common stockholders' equity -
GAAP
1,616,772
1,570,269
1,570,994
1,476,036
1,440,405
Adjustment for Goodwill
(13,615
)
(13,615
)
(13,615
)
(13,615
)
(13,615
)
Tangible common stockholders' equity -
non-GAAP
$
1,603,157
$
1,556,654
$
1,557,379
$
1,462,421
$
1,426,790
Tangible book value per share -
non-GAAP
$
29.38
$
28.54
$
27.46
$
26.83
$
26.22
Stockholders' equity to total assets -
GAAP
9.32
%
9.55
%
9.55
%
9.39
%
8.93
%
Total assets - GAAP
$
17,351,643
$
16,449,178
$
16,448,582
$
16,048,819
$
16,129,668
Adjustment for Goodwill
(13,615
)
(13,615
)
(13,615
)
(13,615
)
(13,615
)
Total tangible assets - non-GAAP
$
17,338,028
$
16,435,563
$
16,434,967
$
16,035,204
$
16,116,053
Tangible common equity to total tangible
assets - non-GAAP
9.25
%
9.47
%
9.48
%
9.33
%
8.85
%
Three Months Ended December 31,
2024
Three Months Ended December 31,
2023
Year Ended December 31, 2024
Year Ended December 31, 2023
Net income - GAAP
$
65,173
$
42,074
$
227,242
$
206,853
Adjustments:
FDIC special assessment
-
7,152
1,799
7,152
Privilege tax expense
-
2,150
-
2,150
EDP contract termination expense
-
1,134
-
1,134
Tax on adjustments
-
(2,619
)
(452
)
(2,619
)
Adjusted net income - non-GAAP
$
65,173
$
49,891
$
228,589
$
214,670
Net income available to common
stockholders - GAAP
$
65,142
$
42,043
$
227,180
$
206,791
Adjustments:
FDIC special assessment
-
7,152
1,799
7,152
Privilege tax expense
-
2,150
-
2,150
EDP contract termination expense
-
1,134
-
1,134
Tax on adjustments
-
(2,619
)
(452
)
(2,619
)
Adjusted net income available to common
stockholders - non-GAAP
$
65,142
$
49,860
$
228,527
$
214,608
Diluted earnings per share - GAAP
$
1.19
$
0.77
$
4.16
$
3.79
Adjustments:
FDIC special assessment
-
0.13
0.03
0.13
Privilege tax expense
-
0.04
-
0.04
EDP contract termination expense
-
0.02
-
0.02
Tax on adjustments
-
(0.05
)
(0.01
)
(0.05
)
Adjusted diluted earnings per share -
non-GAAP
$
1.19
$
0.91
$
4.18
$
3.94
Return on average assets - GAAP
1.52
%
1.04
%
1.39
%
1.37
%
Net income available to common
stockholders - GAAP
$
65,142
$
42,074
$
227,180
$
206,853
Adjustments:
FDIC special assessment
-
7,152
1,799
7,152
Privilege tax expense
-
2,150
-
2,150
EDP contract termination expense
-
1,134
-
1,134
Tax on adjustments
-
(2,619
)
(452
)
(2,619
)
Adjusted net income available to common
stockholders - non-GAAP
$
65,142
$
49,891
$
228,527
$
214,670
Average assets - GAAP
$
17,037,383
$
16,122,074
$
16,333,383
$
15,066,716
Adjusted return on average assets -
non-GAAP
1.52
%
1.23
%
1.40
%
1.42
%
Return on average common stockholders'
equity - GAAP
16.29
%
11.78
%
14.98
%
15.13
%
Net income available to common
stockholders - GAAP
$
65,142
$
42,074
$
227,180
$
206,853
Adjustments:
FDIC special assessment
-
7,152
1,799
7,152
Privilege tax expense
-
2,150
-
2,150
EDP contract termination expense
-
1,134
-
1,134
Tax on adjustments
-
(2,619
)
(452
)
(2,619
)
Adjusted diluted earnings per share -
non-GAAP
$
65,142
$
49,891
$
228,527
$
214,670
Average common stockholders' equity -
GAAP
$
1,591,248
$
1,415,866
$
1,516,855
$
1,366,708
Adjusted return on average common
stockholders' equity non-GAAP
16.29
%
13.98
%
15.07
%
15.71
%
Efficiency ratio
35.54
%
55.23
%
37.71
%
40.67
%
Non-interest expense - GAAP
$
46,896
$
56,480
$
181,146
$
176,273
Adjustments:
FDIC special assessment
-
7,152
1,799
7,152
Privilege tax expense
-
2,150
-
2,150
EDP contract termination expense
-
1,134
-
1,134
Adjusted non-interest expense
$
46,896
$
46,044
$
179,347
$
165,837
Net interest income plus non-interest
income - GAAP
$
131,971
$
109,066
$
481,715
$
441,354
Adjusted efficiency ratio - non-GAAP
35.54
%
42.22
%
37.23
%
37.57
%
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands)
December 31, 2024
December 31, 2023
% Change
ASSETS
Cash and due from banks
$
116,394
$
123,430
(6
)
%
Interest-bearing balances due from
depository institutions
2,259,195
1,907,083
18
%
Federal funds sold
1,045
100,575
(99
)
%
Cash and cash equivalents
2,376,634
2,131,088
12
%
Available for sale debt securities, at
fair value
1,161,400
900,183
29
%
Held to maturity debt securities (fair
value of $639,496 and $907,191, respectively)
714,853
982,664
(27
)
%
Restricted equity securities
11,300
10,226
11
%
Mortgage loans held for sale
9,211
5,074
82
%
Loans
12,605,836
11,658,829
8
%
Less allowance for credit losses
(164,458
)
(153,317
)
7
%
Loans, net
12,441,378
11,505,512
8
%
Premises and equipment, net
59,185
59,324
-
%
Goodwill
13,615
13,615
-
%
Other assets
564,067
521,982
8
%
Total assets
$
17,351,643
$
16,129,668
8
%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing demand
$
2,619,687
$
2,643,101
(1
)
%
Interest-bearing
10,923,772
10,630,410
3
%
Total deposits
13,543,459
13,273,511
2
%
Federal funds purchased
1,993,728
1,256,724
59
%
Other borrowings
64,743
64,735
-
%
Other liabilities
132,941
94,293
41
%
Total liabilities
15,734,871
14,689,263
7
%
Stockholders' equity:
Preferred stock, par value $0.001 per
share; 1,000,000 authorized and undesignated at December 31, 2024
and December 31, 2023
-
-
-
%
Common stock, par value $0.001 per share;
200,000,000 shares authorized; 54,570,138 shares issued and
outstanding at December 31, 2024, and 54,425,447 shares issued and
outstanding at December 31, 2023
54
54
-
%
Additional paid-in capital
235,781
232,605
1
%
Retained earnings
1,412,616
1,254,841
13
%
Accumulated other comprehensive loss
(32,179
)
(47,595
)
(32
)
%
Total stockholders' equity attributable to
ServisFirst Bancshares, Inc.
1,616,272
1,439,905
12
%
Noncontrolling interest
500
500
-
%
Total stockholders' equity
1,616,772
1,440,405
12
%
Total liabilities and stockholders'
equity
$
17,351,643
$
16,129,668
8
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
Three Months Ended December
31,
Year Ended December 31,
2024
2023
2024
2023
Interest income:
Interest and fees on loans
$
200,875
$
184,897
$
788,105
$
699,101
Taxable securities
16,905
15,512
66,535
53,499
Nontaxable securities
6
12
31
65
Federal funds sold
18
1,018
1,128
2,844
Other interest and dividends
26,088
27,623
90,322
57,737
Total interest income
243,892
229,062
946,121
813,246
Interest expense:
Deposits
98,702
108,155
420,650
331,740
Borrowed funds
22,022
19,220
78,812
70,569
Total interest expense
120,724
127,375
499,462
402,309
Net interest income
123,168
101,687
446,659
410,937
Provision for credit losses
5,704
3,582
21,587
18,715
Net interest income after provision for
credit losses
117,464
98,105
425,072
392,222
Non-interest income:
Service charges on deposit accounts
2,650
2,181
9,434
8,420
Mortgage banking
1,513
792
4,922
2,755
Credit card income
1,867
2,004
8,280
8,631
Bank-owned life insurance income
2,131
1,639
9,533
7,574
Other operating income
642
763
2,887
3,037
Total non-interest income
8,803
7,379
35,056
30,417
Non-interest expense:
Salaries and employee benefits
24,062
23,024
96,318
80,965
Equipment and occupancy expense
3,600
3,860
14,519
14,295
Third party processing and other
services
8,515
7,841
31,181
27,872
Professional services
1,981
1,417
6,901
5,916
FDIC and other regulatory assessments
2,225
9,509
10,687
15,614
Other real estate owned expense
58
17
199
47
Other operating expense
6,455
12,590
21,341
33,342
Total non-interest expense
46,896
58,258
181,146
178,051
Income before income tax
79,371
47,226
278,982
244,588
Provision for income tax
14,198
5,152
51,740
37,735
Net income
65,173
42,074
227,242
206,853
Dividends on preferred stock
31
31
62
62
Net income available to common
stockholders
$
65,142
$
42,043
$
227,180
$
206,791
Basic earnings per common share
$
1.19
$
0.77
$
4.17
$
3.80
Diluted earnings per common share
$
1.19
$
0.77
$
4.16
$
3.79
LOANS BY TYPE (UNAUDITED)
(In thousands)
4th quarter 2024
3rd quarter 2024
2nd quarter 2024
1st quarter 2024
4th quarter 2023
Commercial, financial and agricultural
$
2,869,894
$
2,793,989
$
2,935,577
$
2,834,102
$
2,823,986
Real estate - construction
1,489,306
1,439,648
1,510,677
1,546,716
1,519,619
Real estate - mortgage:
Owner-occupied commercial
2,547,143
2,441,687
2,399,644
2,377,042
2,257,163
1-4 family mortgage
1,444,623
1,409,981
1,350,428
1,284,888
1,249,938
Non-owner occupied commercial
4,181,243
4,190,935
4,072,007
3,777,758
3,744,346
Subtotal: Real estate - mortgage
8,173,009
8,042,603
7,822,079
7,439,688
7,251,447
Consumer
73,627
61,986
64,447
60,190
63,777
Total loans
$
12,605,836
$
12,338,226
$
12,332,780
$
11,880,696
$
11,658,829
SUMMARY OF CREDIT LOSS EXPERIENCE
(UNAUDITED)
(Dollars in thousands)
4th quarter 2024
3rd quarter 2024
2nd quarter 2024
1st quarter 2024
4th quarter 2023
Allowance for credit losses:
Beginning balance
$
160,755
$
158,092
$
155,892
$
153,317
$
152,247
Loans charged off:
Commercial, financial and agricultural
3,899
3,020
3,355
1,842
2,831
Real estate - construction
-
-
-
-
89
Real estate - mortgage
560
252
119
67
14
Consumer
211
155
108
98
231
Total charge offs
4,670
3,427
3,582
2,007
3,165
Recoveries:
Commercial, financial and agricultural
1,801
616
406
199
614
Real estate - construction
-
-
8
-
-
Real estate - mortgage
23
2
-
6
-
Consumer
151
37
15
9
39
Total recoveries
1,975
655
429
214
653
Net charge-offs
2,695
2,772
3,153
1,793
2,512
Provision for credit losses
6,398
5,435
5,353
4,368
3,582
Ending balance
$
164,458
$
160,755
$
158,092
$
155,892
$
153,317
Allowance for credit losses to total
loans
1.30
%
1.30
%
1.28
%
1.31
%
1.32
%
Allowance for credit losses to total
average loans
1.32
%
1.30
%
1.31
%
1.33
%
1.32
%
Net charge-offs to total average loans
0.09
%
0.09
%
0.10
%
0.06
%
0.09
%
Provision for credit losses to total
average loans
0.20
%
0.17
%
0.18
%
0.15
%
0.12
%
Nonperforming assets:
Nonaccrual loans
$
39,500
$
37,075
$
33,454
$
34,457
$
19,349
Loans 90+ days past due and accruing
2,965
2,093
1,482
380
2,184
Other real estate owned and
repossessed assets
2,531
2,723
1,458
490
995
Total
$
44,996
$
41,891
$
36,394
$
35,327
$
22,528
Nonperforming loans to total loans
0.34
%
0.32
%
0.28
%
0.29
%
0.18
%
Nonperforming assets to total assets
0.26
%
0.25
%
0.23
%
0.22
%
0.14
%
Nonperforming assets to earning assets
0.26
%
0.26
%
0.23
%
0.23
%
0.14
%
Allowance for credit losses to nonaccrual
loans
416.35
%
433.59
%
472.57
%
452.42
%
795.17
%
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands except per share data)
4th Quarter 2024
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
4th Quarter 2023
Interest income:
Interest and fees on loans
$
200,875
$
205,952
$
194,300
$
186,978
$
184,897
Taxable securities
16,905
17,493
16,158
15,979
15,512
Nontaxable securities
6
7
9
9
12
Federal funds sold
18
31
538
541
1,018
Other interest and dividends
26,088
24,496
16,535
23,203
27,623
Total interest income
243,892
247,979
227,540
226,710
229,062
Interest expense:
Deposits
98,702
113,211
104,671
104,066
108,155
Borrowed funds
22,022
19,647
16,994
20,149
19,220
Total interest expense
120,724
132,858
121,665
124,215
127,375
Net interest income
123,168
115,121
105,875
102,495
101,687
Provision for credit losses
5,704
5,659
5,353
4,368
3,582
Net interest income after provision for
credit losses
117,464
109,462
100,522
98,127
98,105
Non-interest income:
Service charges on deposit accounts
2,650
2,341
2,293
2,150
2,181
Mortgage banking
1,513
1,352
1,379
678
792
Credit card income
1,867
1,925
2,333
2,155
2,004
Bank-owned life insurance income
2,131
2,113
2,058
3,231
1,639
Other operating income
642
818
828
599
763
Total non-interest income
8,803
8,549
8,891
8,813
7,379
Non-interest expense:
Salaries and employee benefits
24,062
25,057
24,213
22,986
23,024
Equipment and occupancy expense
3,600
3,795
3,567
3,557
3,860
Third party processing and other
services
8,515
8,035
7,465
7,166
7,841
Professional services
1,981
1,715
1,741
1,464
1,417
FDIC and other regulatory assessments
2,225
2,355
2,202
3,905
9,509
Other real estate owned expense
58
103
7
30
17
Other operating expense
6,455
4,572
3,623
7,195
12,590
Total non-interest expense
46,896
45,632
42,818
46,303
58,258
Income before income tax
79,371
72,379
66,595
60,637
47,226
Provision for income tax
14,198
12,472
14,459
10,611
5,152
Net income
65,173
59,907
52,136
50,026
42,074
Dividends on preferred stock
31
-
31
-
31
Net income available to common
stockholders
$
65,142
$
59,907
$
52,105
$
50,026
$
42,043
Basic earnings per common share
$
1.19
$
1.10
$
0.96
$
0.92
$
0.77
Diluted earnings per common share
$
1.19
$
1.10
$
0.95
$
0.92
$
0.77
AVERAGE BALANCE SHEETS AND NET INTEREST
ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
4th Quarter 2024
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
4th 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
$
12,414,065
6.43
%
$
12,351,073
6.63
%
$
12,045,743
6.48
%
$
11,723,391
6.41
%
$
11,580,716
6.33
%
Tax-exempt (2)
13,198
1.57
15,584
1.86
17,230
2.08
17,605
5.00
17,787
4.71
Total loans, net of unearned income
12,427,263
6.43
12,366,657
6.62
12,062,973
6.48
11,740,996
6.40
11,598,503
6.32
Mortgage loans held for sale
9,642
5.36
10,674
3.80
6,761
6.13
4,770
5.57
5,105
6.22
Debt securities:
Taxable
1,932,547
3.49
1,955,632
3.57
1,936,818
3.33
2,013,295
3.16
2,007,636
3.08
Tax-exempt (2)
606
5.28
815
4.42
1,209
3.64
1,296
3.40
1,739
2.30
Total securities (3)
1,933,153
3.49
1,956,447
3.57
1,938,027
3.33
2,014,591
3.16
2,009,375
3.08
Federal funds sold
1,596
4.49
2,106
5.86
38,475
5.62
37,298
5.83
72,178
5.60
Restricted equity securities
11,290
6.80
11,290
7.36
11,290
7.16
10,417
7.57
10,216
8.74
Interest-bearing balances with banks
2,143,474
4.81
1,775,192
5.46
1,183,482
5.57
1,687,977
5.48
1,981,411
5.49
Total interest-earning assets
$
16,526,418
5.87
%
$
16,122,366
6.12
%
$
15,241,008
6.01
%
$
15,496,049
5.88
%
$
15,676,788
5.80
%
Non-interest-earning assets:
Cash and due from banks
103,494
103,539
96,646
98,813
101,741
Net premises and equipment
60,708
60,607
59,653
60,126
60,110
Allowance for credit losses, accrued
interest and other assets
346,763
340,621
300,521
302,592
283,435
Total assets
$
17,037,383
$
16,627,133
$
15,697,828
$
15,957,580
$
16,122,074
Interest-bearing liabilities:
Interest-bearing deposits:
Checking
$
2,353,439
2.61
%
$
2,318,384
2.97
%
$
2,227,527
2.85
%
$
2,339,548
2.69
%
$
2,245,431
2.91
%
Savings
102,858
1.52
102,627
1.76
105,955
1.71
106,924
1.76
107,035
1.72
Money market
7,067,265
3.86
7,321,503
4.45
6,810,799
4.46
6,761,495
4.48
7,106,190
4.44
Time deposits
1,286,754
4.45
1,197,650
4.52
1,157,528
4.47
1,164,204
4.37
1,111,350
4.18
Total interest-bearing deposits
10,810,316
3.63
10,940,164
4.12
10,301,809
4.09
10,372,171
4.04
10,570,006
4.06
Federal funds purchased
1,767,749
4.80
1,391,118
5.42
1,193,190
5.50
1,422,828
5.50
1,338,110
5.49
Other borrowings
64,738
4.22
64,738
4.22
64,738
4.27
64,736
4.26
64,734
4.23
Total interest-bearing liabilities
$
12,642,803
3.80
%
$
12,396,020
4.26
%
$
11,559,737
4.23
%
$
11,859,735
4.21
%
$
11,972,850
4.22
%
Non-interest-bearing liabilities:
Non-interest-bearing checking
2,672,875
2,575,575
2,560,245
2,550,841
2,656,504
Other liabilities
130,457
122,455
89,418
91,066
76,651
Stockholders' equity
1,624,084
1,574,902
1,536,013
1,503,240
1,475,366
Accumulated other comprehensive loss
(32,836
)
(41,819
)
(47,584
)
(47,302
)
(59,297
)
Total liabilities and stockholders'
equity
$
17,037,383
$
16,627,133
$
15,697,828
$
15,957,580
$
16,122,074
Net interest spread
2.07
%
1.86
%
1.78
%
1.67
%
1.58
%
Net interest margin
2.96
%
2.84
%
2.79
%
2.66
%
2.57
%
(1) Average loans include nonaccrual loans
in all periods. Loan fees of $4,460, $3,949, $3,317, $3,655, and
$4,175 are included in interest income in the fourth quarter of
2024, third quarter of 2024, second quarter of 2024, first quarter
of 2024, and fourth 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 $(44,073), $(48,770, $(67,823), $(68,162), and $(84,647) for the
fourth quarter of 2024, third quarter of 2024, second quarter of
2024, first quarter of 2024, and fourth quarter of 2023,
respectively, are excluded from the yield calculation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250127119594/en/
ServisFirst Bank Davis Mange (205) 949-3420
dmange@servisfirstbank.com
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