ServisFirst Bancshares, Inc. Announces Results For Third Quarter of 2022

BIRMINGHAM, Ala.--()--ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended September 30, 2022.

Third Quarter 2022 Highlights:

  • Diluted earnings per share were $1.17 for the third quarter of 2022, a 22% increase over the third quarter of 2021 and a 3% increase on a linked-quarter basis
  • Preliminary settlement of litigation and write-down of a private investment resulting in charges of $2.4 million, net of income taxes, or $0.05 per diluted share
  • Total loans grew $661.3 million during the third quarter of 2022, or 25% annualized
  • Entered the Piedmont, North Carolina market and expanded our presence in Northwest Florida and Nashville.
  • Book value per share increased 11% year-over-year
  • Return on average common stockholders’ equity was 20.49% for the quarter
  • Efficiency ratio was 31.54% for the quarter, including the charges above

Tom Broughton, Chairman, President and CEO, said, “We were pleased to add some exceptional bankers during the quarter who will help in the continued growth and expansion of our company.”

Bud Foshee, CFO, said, “Excess funds have returned to normal levels. Our net interest margins should remain relatively stable going forward.”

FINANCIAL SUMMARY (UNAUDITED)

(in Thousands except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period Ending
September 30,
2022

 

Period Ending
June 30, 2022

 

% Change
From Period
Ending
June 30, 2022
to Period Ending
September 30,
2022

 

Period Ending
September 30,
2021

 

% Change
From Period
Ending
September 30,
2021 to
Period Ending
September 30,
2022

 

QUARTERLY OPERATING RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

64,031

 

 

$

62,136

 

 

3

%

 

$

52,499

 

 

22

%

 

Net Income Available to Common Stockholders

 

$

64,031

 

 

$

62,105

 

 

3

%

 

$

52,499

 

 

22

%

 

Diluted Earnings Per Share

 

$

1.17

 

 

$

1.14

 

 

3

%

 

$

0.96

 

 

22

%

 

Return on Average Assets

 

 

1.77

%

 

 

1.67

%

 

 

 

 

 

1.50

%

 

 

 

 

Return on Average Common Stockholders' Equity

 

 

20.49

%

 

 

20.93

%

 

 

 

 

 

18.93

%

 

 

 

 

Average Diluted Shares Outstanding

 

 

54,546,682

 

 

 

54,532,385

 

 

 

 

 

 

54,477,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YEAR-TO-DATE OPERATING RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

183,780

 

 

 

 

 

 

 

 

 

$

153,981

 

 

19

%

 

Net Income Available to Common Stockholders

 

$

183,749

 

 

 

 

 

 

 

 

 

$

153,950

 

 

19

%

 

Diluted Earnings Per Share

 

$

3.37

 

 

 

 

 

 

 

 

 

$

2.83

 

 

19

%

 

Return on Average Assets

 

 

1.64

%

 

 

 

 

 

 

 

 

 

1.63

%

 

 

 

 

Return on Average Common Stockholders' Equity

 

 

20.43

%

 

 

 

 

 

 

 

 

 

19.73

%

 

 

 

 

Average Diluted Shares Outstanding

 

 

54,533,793

 

 

 

 

 

 

 

 

 

 

54,440,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

13,890,030

 

 

$

14,494,317

 

 

(4)

%

 

$

14,602,228

 

 

(5)

%

 

Loans

 

 

11,278,614

 

 

 

10,617,320

 

 

6

%

 

 

8,812,811

 

 

28

%

 

Non-interest-bearing Demand Deposits

 

 

3,661,936

 

 

 

4,686,511

 

 

(22)

%

 

 

4,366,654

 

 

(16)

%

 

Total Deposits

 

 

11,051,915

 

 

 

11,772,337

 

 

(6)

%

 

 

12,078,670

 

 

(9)

%

 

Stockholders' Equity

 

 

1,242,589

 

 

 

1,211,918

 

 

3

%

 

 

1,114,293

 

 

12

%

 

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $64.0 million for the quarter ended September 30, 2022, compared to net income and net income available to common stockholders of $62.1 million for the second quarter of 2022 and $52.5 million for the third quarter of 2021. Basic and diluted earnings per common share were $1.18 and $1.17, respectively, for the third quarter of 2022, compared to $1.14 for both in the second quarter of 2022 and $0.97 and $0.96, respectively, for the third quarter of 2021.

Annualized return on average assets was 1.77% and annualized return on average common stockholders’ equity was 20.49% for the third quarter of 2022, compared to 1.50% and 18.93%, respectively, for the third quarter of 2021.

Net interest income was $126.4 million for the third quarter of 2022, compared to $116.4 million for the second quarter of 2022 and $96.3 million for the third quarter of 2021. The net interest margin in the third quarter of 2022 was 3.64% compared to 3.26% in the second quarter of 2022 and 2.85% in the third quarter of 2021. Loan yields were 4.77% during the third quarter of 2022 compared to 4.38% during the second quarter of 2022 and 4.39% during the third quarter of 2021. Fees on Paycheck Protection Program ("PPP") loans of $400,000 during the third quarter of 2022 contributed one basis point of the loan yield, compared to $2.8 million of PPP loan fee accretion during the second quarter of 2022, or 11 basis points of the loan yield, and $5.2 million during the third quarter of 2021, or 24 basis points of the loan yield. Investment yields were 2.47% during the third quarter of 2022 compared to 2.37% during the second quarter of 2022 and 2.70% during the third quarter of 2021. Amortization of mortgage-backed securities decreased by $203,000 from the second quarter to the third quarter of 2022.

Average loans for the third quarter of 2022 were $10.92 billion, an increase of $730.9 million, or 28.5% annualized, over average loans of $10.19 billion for the second quarter of 2022, and an increase of $2.24 billion, or 25.8%, over average loans of $8.68 billion for the third quarter of 2021.

Average total deposits for the third quarter of 2022 were $11.53 billion, a decrease of $510.6 million, or 16.8%, annualized, over average total deposits of $12.04 billion for the second quarter of 2022, and an increase of $41.9 million, or 0.4%, over average total deposits of $11.49 billion for the third quarter of 2021.

Non-performing assets to total assets were 0.13% for the third quarter of 2022, an increase of one basis point compared to 0.12% for the second quarter of 2022 and an increase of two basis points compared to 0.11% for the third quarter of 2021. Annualized net charge-offs to average loans were 0.11% for the third quarter of 2022, compared to 0.02% and 0.08% for the second quarter of 2022 and third quarter of 2021, respectively. The allowance for credit losses as a percentage of total loans at September 30, 2022, June 30, 2022 and September 30, 2021 was 1.25%, 1.21%, and 1.24%, respectively. We recorded a $15.6 million provision for credit losses in the third quarter of 2022 compared to $9.5 million in the second quarter of 2022 and $6.0 million in the third quarter of 2021. A less optimistic outlook for unemployment and GDP is driving the increase in provision for credit losses during the third quarter of 2022.

Non-interest income increased $913,000, or 11.4%, to $8.9 million for the third quarter of 2022 from $8.0 million in the third quarter of 2021. Service charges on deposit accounts increased $165,000, or 9.6%, to $1.9 million from the third quarter of 2021 to the third quarter of 2022. Mortgage banking revenue decreased $639,000, or 44.9%, to $784,000 from the third quarter of 2021 to the third quarter of 2022. Net credit card revenue increased $569,000, or 27.9%, to $2.6 million during the third quarter of 2022, compared to $2.0 million during the third quarter of 2021. The aggregate amount of spend on all credit card accounts increased 27.2% during the third quarter of 2022 compared to the third quarter of 2021. Cash surrender value life insurance decreased $34,000, or 2.0%, to $1.6 million during the third quarter of 2022, compared to $1.7 million during the third quarter of 2021. Other operating income for the third quarter of 2022 increased $852,000, or 73.3%, to $2.0 million from $1.2 million in the third quarter of 2021. We recognized $1.3 million of income related to our interest rate cap during the third quarter 2022 compared to write down of $98,000 during the third quarter of 2021. Merchant service revenue increased by $93,000, or 25%, to $468,000, or 25%, during the third quarter of 2022, from $375,000 during the third quarter of 2021.

Non-interest expense for the third quarter of 2022 increased $8.3 million, or 24.2%, to $42.7 million from $34.4 million in the third quarter of 2021, and increased $2.9 million, or 7.2%, on a linked quarter basis. Salary and benefit expense for the third quarter of 2022 increased $1.7 million, or 9.4%, to $19.7 million from $18.0 million in the third quarter of 2021, and decreased $1.0 million, or 5.0%, on a linked quarter basis. The number of FTE employees increased by 40 to 558 at September 30, 2022 compared to 518 at September 30, 2021, and increased by 18 from the end of the second quarter of 2022. Equipment and occupancy expense increased $144,000, or 4.8%, to $3.1 million in the third quarter of 2022, from $3.0 million in the third quarter of 2021, and increased $157,000, or 5.3% on a linked-quarter basis. Third party processing and other services expense increased $3.1 million, or 74.1%, to $7.2 million in the third quarter of 2022, from $4.1 million in the third quarter of 2021, and increased $868,000, or 13.7%, on a linked-quarter basis. This increase in third party processing also includes Federal Reserve Bank charges related to correspondent bank settlement activities, which increased by $3.0 million year-over-year to $3.7 million during the third quarter of 2022. Professional services expense increased $88,000, or 9.3%, to $1.0 million in the third quarter of 2022, from $948,000 in the third quarter of 2021. FDIC and other regulatory assessments decreased $655,000 to $975,000 in the third quarter of 2022, from $1.6 million in the third quarter of 2021, and decreased $172,000, or 15.0%, on a linked quarter basis. Other operating expenses for the third quarter of 2022 increased $4.1 million, or 62.3%, to $10.6 million from $6.5 million in the third quarter of 2021, and increased $3.4 million on a linked-quarter basis. During the third quarter of 2022 we reached a preliminary settlement on a lawsuit and wrote down the value of a private investment resulting in charges of $3.1 million, or $2.4 million net of income tax. The efficiency ratio was 31.54% during the third quarter of 2022 compared to 32.95% during the third quarter of 2021 and compared to 31.64% during the second quarter of 2022.

Income tax expense increased $1.5 million, or 13.3%, to $13.0 million in the third quarter of 2022, compared to $11.5 million in the third quarter of 2021. Our effective tax rate was 16.92% for the third quarter of 2022 compared to 17.98% for the third quarter of 2021. We recognized an aggregate of $3.4 million in credits during the third quarter of 2022 related to investments in tax credit partnerships. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the third quarters of 2022 and 2021 of $370,000 and $78,000, respectively.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

This press release 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 and core deposit intangibles associated with our acquisition of Metro Bancshares, Inc. in January 2015. We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data.

 

 

At September 30,
2022

 

At June 30,
2022

 

At March 31,
2022

 

At December 31,
2021

 

At September 30,
2021

 

Book value per share - GAAP

 

$

22.87

 

 

$

22.32

 

 

$

21.61

 

 

$

21.24

 

 

$

20.56

 

 

Total common stockholders' equity - GAAP

 

 

1,242,589

 

 

 

1,211,949

 

 

 

1,172,975

 

 

 

1,152,015

 

 

 

1,114,293

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted for goodwill and core deposit intangible asset

 

 

(13,615)

 

 

 

(13,615)

 

 

 

(13,615)

 

 

 

(13,638)

 

 

 

(13,705)

 

 

Tangible common stockholders' equity - non-GAAP

 

$

1,228,974

 

 

$

1,198,334

 

 

$

1,159,360

 

 

$

1,138,377

 

 

$

1,100,588

 

 

Tangible book value per share - non-GAAP

 

$

22.62

 

 

$

22.07

 

 

$

21.36

 

 

$

20.99

 

 

$

20.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity to total assets - GAAP

 

 

8.95

%

 

 

8.36

%

 

 

7.65

%

 

 

7.46

%

 

 

7.63

%

 

Total assets - GAAP

 

$

13,890,030

 

 

$

14,494,348

 

 

$

15,339,419

 

 

$

15,448,806

 

 

$

14,602,228

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted for goodwill and core deposit intangible asset

 

 

(13,615)

 

 

 

(13,615)

 

 

 

(13,615)

 

 

 

(13,638)

 

 

 

(13,705)

 

 

Total tangible assets - non-GAAP

 

$

13,876,415

 

 

$

14,480,733

 

 

$

15,325,804

 

 

$

15,435,168

 

 

$

14,588,523

 

 

Tangible common equity to total tangible assets - non-GAAP

 

 

8.86

%

 

 

8.28

%

 

 

7.56

%

 

 

7.38

%

 

 

7.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, and Tennessee. We also operate loan production offices in Florida. Through the 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: 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 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; economic crisis and associated credit issues in industries most impacted by the COVID-19 outbreak, including but not limited to, the restaurant, hospitality and retail sectors; 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 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 2022, and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.

More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling (205) 949-0302.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

(In thousands except share and per share data)

 

 

3rd Quarter 2022

 

2nd Quarter 2022

 

1st Quarter 2022

 

4th Quarter 2021

 

3rd Quarter 2021

 

CONSOLIDATED STATEMENT OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

149,299

 

 

$

126,555

 

 

$

113,188

 

 

$

108,954

 

 

$

104,236

 

 

Interest expense

 

 

22,881

 

 

 

10,187

 

 

 

7,466

 

 

 

7,804

 

 

 

7,916

 

 

Net interest income

 

 

126,418

 

 

 

116,368

 

 

 

105,722

 

 

 

101,150

 

 

 

96,320

 

 

Provision for credit losses

 

 

15,603

 

 

 

9,507

 

 

 

5,362

 

 

 

8,451

 

 

 

5,963

 

 

Net interest income after provision for credit losses

 

 

110,815

 

 

 

106,861

 

 

 

100,360

 

 

 

92,699

 

 

 

90,357

 

 

Non-interest income

 

 

8,939

 

 

 

9,506

 

 

 

7,948

 

 

 

7,365

 

 

 

8,026

 

 

Non-interest expense

 

 

42,685

 

 

 

39,821

 

 

 

37,218

 

 

 

38,489

 

 

 

34,377

 

 

Income before income tax

 

 

77,069

 

 

 

76,546

 

 

 

71,090

 

 

 

61,575

 

 

 

64,006

 

 

Provision for income tax

 

 

13,038

 

 

 

14,410

 

 

 

13,477

 

 

 

7,822

 

 

 

11,507

 

 

Net income

 

 

64,031

 

 

 

62,136

 

 

 

57,613

 

 

 

53,753

 

 

 

52,499

 

 

Preferred stock dividends

 

 

-

 

 

 

31

 

 

 

-

 

 

 

31

 

 

 

-

 

 

Net income available to common stockholders

 

$

64,031

 

 

$

62,105

 

 

$

57,613

 

 

$

53,722

 

 

$

52,499

 

 

Earnings per share - basic

 

$

1.18

 

 

$

1.14

 

 

$

1.06

 

 

$

0.99

 

 

$

0.97

 

 

Earnings per share - diluted

 

$

1.17

 

 

$

1.14

 

 

$

1.06

 

 

$

0.99

 

 

$

0.96

 

 

Average diluted shares outstanding

 

 

54,546,682

 

 

 

54,532,385

 

 

 

54,522,042

 

 

 

54,493,959

 

 

 

54,477,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

13,890,030

 

 

$

14,494,317

 

 

$

15,339,419

 

 

$

15,448,806

 

 

$

14,602,228

 

 

Loans

 

 

11,278,614

 

 

 

10,617,320

 

 

 

9,898,957

 

 

 

9,532,934

 

 

 

8,812,811

 

 

Debt securities

 

 

1,714,603

 

 

 

1,790,218

 

 

 

1,617,977

 

 

 

1,305,527

 

 

 

984,600

 

 

Non-interest-bearing demand deposits

 

 

3,661,936

 

 

 

4,686,511

 

 

 

4,889,495

 

 

 

4,799,767

 

 

 

4,366,654

 

 

Total deposits

 

 

11,051,915

 

 

 

11,772,337

 

 

 

12,408,755

 

 

 

12,452,836

 

 

 

12,078,670

 

 

Borrowings

 

 

65,406

 

 

 

64,716

 

 

 

64,711

 

 

 

64,706

 

 

 

64,701

 

 

Stockholders' equity

 

 

1,242,589

 

 

 

1,211,918

 

 

 

1,172,975

 

 

 

1,152,015

 

 

 

1,114,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

54,324,007

 

 

 

54,306,875

 

 

 

54,282,132

 

 

 

54,227,060

 

 

 

54,207,147

 

 

Book value per share

 

$

22.87

 

 

$

22.32

 

 

$

21.61

 

 

$

21.24

 

 

$

20.56

 

 

Tangible book value per share (1)

 

$

22.62

 

 

$

22.07

 

 

$

21.36

 

 

$

20.99

 

 

$

20.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED FINANCIAL RATIOS (Annualized)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

3.64

%

 

 

3.26

%

 

 

2.89

%

 

 

2.71

%

 

 

2.85

%

 

Return on average assets

 

 

1.77

%

 

 

1.67

%

 

 

1.53

%

 

 

1.40

%

 

 

1.50

%

 

Return on average common stockholders' equity

 

 

20.49

%

 

 

20.93

%

 

 

20.09

%

 

 

18.75

%

 

 

18.93

%

 

Efficiency ratio

 

 

31.54

%

 

 

31.64

%

 

 

32.74

%

 

 

35.47

%

 

 

32.95

%

 

Non-interest expense to average earning assets

 

 

1.23

%

 

 

1.11

%

 

 

1.02

%

 

 

1.03

%

 

 

1.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital to risk-weighted assets

 

 

9.37

%

 

 

9.59

%

 

 

9.86

%

 

 

9.95

%

 

 

10.46

%

 

Tier 1 capital to risk-weighted assets

 

 

9.37

%

 

 

9.59

%

 

 

9.87

%

 

 

9.96

%

 

 

10.47

%

 

Total capital to risk-weighted assets

 

 

10.91

%

 

 

11.12

%

 

 

11.43

%

 

 

11.58

%

 

 

12.18

%

 

Tier 1 capital to average assets

 

 

8.84

%

 

 

8.19

%

 

 

7.67

%

 

 

7.39

%

 

 

7.80

%

 

Tangible common equity to total tangible assets (1)

 

 

8.86

%

 

 

8.28

%

 

 

7.56

%

 

 

7.38

%

 

 

7.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for a discussion of these Non-GAAP financial measures.

 

(2) Regulatory capital ratios for most recent period are preliminary.

 

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

September 30,
2022

 

September 30,
2021

 

% Change

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

249,051

 

 

$

102,313

 

 

143

%

 

Interest-bearing balances due from depository institutions

 

 

156,959

 

 

 

4,297,473

 

 

(96

)%

 

Federal funds sold

 

 

82,316

 

 

 

44,700

 

 

84

%

 

Cash and cash equivalents

 

 

488,326

 

 

 

4,444,486

 

 

(89

)%

 

Available for sale debt securities, at fair value

 

 

665,763

 

 

 

723,324

 

 

(8

)%

 

Held to maturity debt securities (fair value of $942,282 at September 30, 2022 and $261,276 at September 30, 2021)

 

 

1,048,840

 

 

 

261,276

 

 

301

%

 

Restricted equity securities

 

 

7,734

 

 

 

-

 

 

NM

 

 

Mortgage loans held for sale

 

 

2,003

 

 

 

578

 

 

247

%

 

Loans

 

 

11,278,614

 

 

 

8,812,811

 

 

28

%

 

Less allowance for credit losses

 

 

(140,967

)

 

 

(108,950

)

 

29

%

 

Loans, net

 

 

11,137,647

 

 

 

8,703,861

 

 

28

%

 

Premises and equipment, net

 

 

59,080

 

 

 

60,953

 

 

(3

)%

 

Goodwill and other identifiable intangible assets

 

 

13,615

 

 

 

13,705

 

 

(1

)%

 

Other assets

 

 

467,022

 

 

 

394,045

 

 

19

%

 

Total assets

 

$

13,890,030

 

 

$

14,602,228

 

 

(5

)%

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Non-interest-bearing

 

$

3,661,936

 

 

$

4,366,654

 

 

(16

)%

 

Interest-bearing

 

 

7,389,979

 

 

 

7,712,016

 

 

(4

)%

 

Total deposits

 

 

11,051,915

 

 

 

12,078,670

 

 

(9

)%

 

Federal funds purchased

 

 

1,466,322

 

 

 

1,286,756

 

 

14

%

 

Other borrowings

 

 

65,406

 

 

 

64,701

 

 

1

%

 

Other liabilities

 

 

63,798

 

 

 

57,808

 

 

10

%

 

Total liabilities

 

 

12,647,441

 

 

 

13,487,935

 

 

(6

)%

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at

 

 

 

 

 

 

 

 

 

September 30, 2022 and September 30, 2021

 

 

-

 

 

 

-

 

 

-

%

 

Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,324,007 shares

 

 

 

 

 

 

 

 

 

issued and outstanding at September 30, 2022, and 100,000,000 shares authorized; 54,207,147

 

 

 

 

 

 

 

 

 

shares issued and outstanding at September 30, 2021

 

 

54

 

 

 

54

 

 

-

%

 

Additional paid-in capital

 

 

228,738

 

 

 

225,648

 

 

1

%

 

Retained earnings

 

 

1,057,387

 

 

 

869,731

 

 

22

%

 

Accumulated other comprehensive (loss) income

 

 

(44,090

)

 

 

18,360

 

 

NM

 

 

Total stockholders' equity attributable to ServisFirst Bancshares, Inc.

 

 

1,242,089

 

 

 

1,113,793

 

 

12

%

 

Noncontrolling interest

 

 

500

 

 

 

500

 

 

-

%

 

Total stockholders' equity

 

 

1,242,589

 

 

 

1,114,293

 

 

12

%

 

Total liabilities and stockholders' equity

 

$

13,890,030

 

 

$

14,602,228

 

 

(5

)%

 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

(In thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2022

 

2021

 

2022

 

2021

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

131,375

 

$

96,119

 

$

345,767

 

$

285,373

 

Taxable securities

 

 

11,089

 

 

6,544

 

 

29,827

 

 

18,666

 

Nontaxable securities

 

 

30

 

 

62

 

 

110

 

 

255

 

Federal funds sold

 

 

632

 

 

4

 

 

738

 

 

11

 

Other interest and dividends

 

 

6,173

 

 

1,507

 

 

12,600

 

 

3,046

 

Total interest income

 

 

149,299

 

 

104,236

 

 

389,042

 

 

307,351

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,655

 

 

6,581

 

 

25,925

 

 

20,298

 

Borrowed funds

 

 

9,226

 

 

1,335

 

 

14,609

 

 

3,700

 

Total interest expense

 

 

22,881

 

 

7,916

 

 

40,534

 

 

23,998

 

Net interest income

 

 

126,418

 

 

96,320

 

 

348,508

 

 

283,353

 

Provision for credit losses

 

 

15,603

 

 

5,963

 

 

30,472

 

 

23,066

 

Net interest income after provision for credit losses

 

 

110,815

 

 

90,357

 

 

318,036

 

 

260,287

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

1,892

 

 

1,727

 

 

6,167

 

 

5,542

 

Mortgage banking

 

 

784

 

 

1,423

 

 

1,924

 

 

6,869

 

Credit card income

 

 

2,612

 

 

2,043

 

 

7,656

 

 

5,147

 

Securities (losses) gains

 

 

-

 

 

-

 

 

(6,168)

 

 

620

 

Increase in cash surrender value life insurance

 

 

1,637

 

 

1,671

 

 

4,878

 

 

5,012

 

Other operating income

 

 

2,014

 

 

1,162

 

 

11,936

 

 

2,897

 

Total non-interest income

 

 

8,939

 

 

8,026

 

 

26,393

 

 

26,087

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

19,687

 

 

17,995

 

 

58,722

 

 

50,425

 

Equipment and occupancy expense

 

 

3,140

 

 

2,996

 

 

9,056

 

 

8,494

 

Third party processing and other services

 

 

7,213

 

 

4,144

 

 

19,163

 

 

11,506

 

Professional services

 

 

1,036

 

 

948

 

 

3,355

 

 

2,978

 

FDIC and other regulatory assessments

 

 

975

 

 

1,630

 

 

3,254

 

 

4,637

 

Other real estate owned expense

 

 

21

 

 

123

 

 

56

 

 

820

 

Other operating expense

 

 

10,613

 

 

6,541

 

 

26,118

 

 

15,740

 

Total non-interest expense

 

 

42,685

 

 

34,377

 

 

119,724

 

 

94,600

 

Income before income tax

 

 

77,069

 

 

64,006

 

 

224,705

 

 

191,774

 

Provision for income tax

 

 

13,038

 

 

11,507

 

 

40,925

 

 

37,793

 

Net income

 

 

64,031

 

 

52,499

 

 

183,780

 

 

153,981

 

Dividends on preferred stock

 

 

-

 

 

-

 

 

31

 

 

31

 

Net income available to common stockholders

 

$

64,031

 

$

52,499

 

$

183,749

 

$

153,950

 

Basic earnings per common share

 

$

1.18

 

$

0.97

 

$

3.38

 

$

2.84

 

Diluted earnings per common share

 

$

1.17

 

$

0.96

 

$

3.37

 

$

2.83

 

LOANS BY TYPE (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2022

 

2nd Quarter 2022

 

1st Quarter 2022

 

4th Quarter 2021

 

3rd Quarter 2021

Commercial, financial and agricultural

 

$

3,104,155

 

$

2,966,040

 

$

2,955,927

 

$

2,984,053

 

$

2,927,845

Real estate - construction

 

 

1,433,698

 

 

1,383,155

 

 

1,164,690

 

 

1,103,076

 

 

887,938

Real estate - mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner-occupied commercial

 

 

2,145,621

 

 

2,026,807

 

 

1,919,811

 

 

1,874,103

 

 

1,809,840

1-4 family mortgage

 

 

1,089,826

 

 

1,015,698

 

 

926,697

 

 

826,765

 

 

765,102

Other mortgage

 

 

3,438,762

 

 

3,160,510

 

 

2,869,158

 

 

2,678,084

 

 

2,357,812

Subtotal: Real estate - mortgage

 

 

6,674,209

 

 

6,203,015

 

 

5,715,666

 

 

5,378,952

 

 

4,932,754

Consumer

 

 

66,552

 

 

65,110

 

 

62,674

 

 

66,853

 

 

64,274

Total loans

 

$

11,278,614

 

$

10,617,320

 

$

9,898,957

 

$

9,532,934

 

$

8,812,811

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2022

 

2nd Quarter 2022

 

1st Quarter 2022

 

4th Quarter 2021

 

3rd Quarter 2021

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

128,387

 

 

$

119,463

 

 

$

116,660

 

 

$

108,950

 

 

$

104,670

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial financial and agricultural

 

 

2,902

 

 

 

1,667

 

 

 

2,574

 

 

 

1,285

 

 

 

1,541

 

Real estate - construction

 

 

-

 

 

 

-

 

 

 

-

 

 

 

14

 

 

 

-

 

Real estate - mortgage

 

 

170

 

 

 

23

 

 

 

27

 

 

 

-

 

 

 

208

 

Consumer

 

 

261

 

 

 

123

 

 

 

75

 

 

 

141

 

 

 

86

 

Total charge offs

 

 

3,333

 

 

 

1,813

 

 

 

2,676

 

 

 

1,440

 

 

 

1,835

 

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial financial and agricultural

 

 

297

 

 

 

1,217

 

 

 

105

 

 

 

671

 

 

 

140

 

Real estate - construction

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Real estate - mortgage

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18

 

 

 

4

 

Consumer

 

 

12

 

 

 

13

 

 

 

12

 

 

 

10

 

 

 

8

 

Total recoveries

 

 

309

 

 

 

1,230

 

 

 

117

 

 

 

699

 

 

 

152

 

Net charge-offs

 

 

3,024

 

 

 

583

 

 

 

2,559

 

 

 

741

 

 

 

1,683

 

Provision for credit losses

 

 

15,604

 

 

 

9,507

 

 

 

5,362

 

 

 

8,451

 

 

 

5,963

 

Ending balance

 

$

140,967

 

 

$

128,387

 

 

$

119,463

 

 

$

116,660

 

 

$

108,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to total loans

 

 

1.25

%

 

 

1.21

%

 

 

1.21

%

 

 

1.22

%

 

 

1.24

%

Allowance for credit losses to total average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loans

 

 

1.32

%

 

 

1.26

%

 

 

1.24

%

 

 

1.29

%

 

 

1.26

%

Net charge-offs (recoveries) to total average loans

0.11

%

 

 

0.02

%

 

 

0.11

%

 

 

0.03

%

 

 

0.08

%

Provision for credit losses to total average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loans

 

 

0.58

%

 

 

0.37

%

 

 

0.23

%

 

 

0.37

%

 

 

0.27

%

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

11,655

 

 

$

10,540

 

 

$

14,738

 

 

$

6,762

 

 

$

9,145

 

Loans 90+ days past due and accruing

 

 

4,803

 

 

 

4,991

 

 

 

4,686

 

 

 

5,335

 

 

 

5,326

 

Other real estate owned and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

repossessed assets

 

 

1,245

 

 

 

1,207

 

 

 

1,989

 

 

 

1,208

 

 

 

2,068

 

Total

 

$

17,703

 

 

$

16,738

 

 

$

21,413

 

 

$

13,305

 

 

$

16,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.15

%

 

 

0.15

%

 

 

0.20

%

 

 

0.13

%

 

 

0.16

%

Nonperforming assets to total assets

 

 

0.13

%

 

 

0.12

%

 

 

0.14

%

 

 

0.09

%

 

 

0.11

%

Nonperforming assets to earning assets

 

 

0.13

%

 

 

0.12

%

 

 

0.14

%

 

 

0.09

%

 

 

0.11

%

Allowance for credit losses to nonaccrual loans

1,209.50

%

 

 

1,218.05

%

 

 

826.19

%

 

 

1,725.23

%

 

 

1,191.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructured accruing loans

 

$

236

 

 

$

421

 

 

$

426

 

 

$

431

 

 

$

437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructured accruing loans to total loans

 

 

-

%

 

 

-

%

 

 

-

%

 

 

-

%

 

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2022

 

2nd Quarter 2022

 

1st Quarter 2022

 

4th Quarter 2021

 

3rd Quarter 2021

Beginning balance:

 

$

2,403

 

 

$

2,482

 

 

$

2,576

 

 

$

2,893

 

 

$

2,918

 

Additions

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net (paydowns) / advances

 

 

(362

)

 

 

(79

)

 

 

(94

)

 

 

(303

)

 

 

(25

)

Charge-offs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(14

)

 

 

-

 

Ending balance

 

$

2,041

 

 

$

2,403

 

 

$

2,482

 

 

$

2,576

 

 

$

2,893

 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

(In thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter
2022

 

2nd Quarter
2022

 

1st Quarter
2022

 

4th Quarter
2021

 

3rd Quarter
2021

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

131,375

 

$

111,287

 

$

103,105

 

$

100,348

 

$

96,119

 

Taxable securities

 

 

11,089

 

 

10,515

 

 

8,223

 

 

6,747

 

 

6,544

 

Nontaxable securities

 

 

30

 

 

37

 

 

43

 

 

47

 

 

62

 

Federal funds sold

 

 

632

 

 

93

 

 

13

 

 

18

 

 

4

 

Other interest and dividends

 

 

6,173

 

 

4,623

 

 

1,804

 

 

1,794

 

 

1,507

 

Total interest income

 

 

149,299

 

 

126,555

 

 

113,188

 

 

108,954

 

 

104,236

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,655

 

 

6,427

 

 

5,843

 

 

6,271

 

 

6,581

 

Borrowed funds

 

 

9,226

 

 

3,760

 

 

1,623

 

 

1,533

 

 

1,335

 

Total interest expense

 

 

22,881

 

 

10,187

 

 

7,466

 

 

7,804

 

 

7,916

 

Net interest income

 

 

126,418

 

 

116,368

 

 

105,722

 

 

101,150

 

 

96,320

 

Provision for credit losses

 

 

15,603

 

 

9,507

 

 

5,362

 

 

8,451

 

 

5,963

 

Net interest income after provision for credit losses

 

 

110,815

 

 

106,861

 

 

100,360

 

 

92,699

 

 

90,357

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

1,892

 

 

2,133

 

 

2,142

 

 

1,297

 

 

1,727

 

Mortgage banking

 

 

784

 

 

614

 

 

526

 

 

471

 

 

1,423

 

Credit card income

 

 

2,612

 

 

2,672

 

 

2,372

 

 

2,200

 

 

2,043

 

Securities losses

 

 

-

 

 

(2,833)

 

 

(3,335)

 

 

-

 

 

-

 

Increase in cash surrender value life insurance

 

 

1,637

 

 

1,633

 

 

1,608

 

 

1,630

 

 

1,671

 

Other operating income

 

 

2,014

 

 

5,287

 

 

4,635

 

 

1,767

 

 

1,162

 

Total non-interest income

 

 

8,939

 

 

9,506

 

 

7,948

 

 

7,365

 

 

8,026

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

19,687

 

 

20,734

 

 

18,301

 

 

17,303

 

 

17,995

 

Equipment and occupancy expense

 

 

3,140

 

 

2,983

 

 

2,933

 

 

2,910

 

 

2,996

 

Third party processing and other services

 

 

7,213

 

 

6,345

 

 

5,605

 

 

4,856

 

 

4,144

 

Professional services

 

 

1,036

 

 

1,327

 

 

992

 

 

913

 

 

948

 

FDIC and other regulatory assessments

 

 

975

 

 

1,147

 

 

1,132

 

 

1,042

 

 

1,630

 

Other real estate owned expense

 

 

21

 

 

32

 

 

3

 

 

48

 

 

123

 

Other operating expense

 

 

10,613

 

 

7,253

 

 

8,252

 

 

11,417

 

 

6,541

 

Total non-interest expense

 

 

42,685

 

 

39,821

 

 

37,218

 

 

38,489

 

 

34,377

 

Income before income tax

 

 

77,069

 

 

76,546

 

 

71,090

 

 

61,575

 

 

64,006

 

Provision for income tax

 

 

13,038

 

 

14,410

 

 

13,477

 

 

7,822

 

 

11,507

 

Net income

 

 

64,031

 

 

62,136

 

 

57,613

 

 

53,753

 

 

52,499

 

Dividends on preferred stock

 

 

-

 

 

31

 

 

-

 

 

31

 

 

-

 

Net income available to common stockholders

 

$

64,031

 

$

62,105

 

$

57,613

 

$

53,722

 

$

52,499

 

Basic earnings per common share

 

$

1.18

 

$

1.14

 

$

1.06

 

$

0.99

 

$

0.97

 

Diluted earnings per common share

 

$

1.17

 

$

1.14

 

$

1.06

 

$

0.99

 

$

0.96

 

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)

 

ON A FULLY TAXABLE-EQUIVALENT BASIS

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2022

 

2nd Quarter 2022

 

1st Quarter 2022

 

4th Quarter 2021

 

3rd Quarter 2021

 

 

 

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

 

$

10,900,105

 

4.77

%

 

$

10,165,470

 

4.38

%

 

$

9,621,484

 

4.29

%

 

$

9,032,914

 

4.40

%

 

$

8,653,632

 

4.40

%

 

Tax-exempt (2)

 

 

19,852

 

4.14

 

 

 

23,616

 

4.09

 

 

 

25,195

 

4.08

 

 

 

26,148

 

4.07

 

 

 

26,542

 

4.05

 

 

Total loans, net of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

unearned income

 

 

10,919,957

 

4.77

 

 

 

10,189,086

 

4.38

 

 

 

9,646,679

 

4.29

 

 

 

9,059,062

 

4.40

 

 

 

8,680,174

 

4.39

 

 

Mortgage loans held for sale

 

 

2,906

 

2.73

 

 

 

471

 

3.41

 

 

 

927

 

1.73

 

 

 

998

 

1.99

 

 

 

7,050

 

1.69

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,797,560

 

2.47

 

 

 

1,775,425

 

2.37

 

 

 

1,518,572

 

2.17

 

 

 

1,134,378

 

2.38

 

 

 

969,715

 

2.70

 

 

Tax-exempt (2)

 

 

5,863

 

2.39

 

 

 

7,148

 

2.35

 

 

 

8,812

 

2.36

 

 

 

9,823

 

2.36

 

 

 

12,382

 

2.39

 

 

Total securities (3)

 

 

1,803,423

 

2.47

 

 

 

1,782,573

 

2.37

 

 

 

1,527,384

 

2.17

 

 

 

1,144,201

 

2.38

 

 

 

982,097

 

2.70

 

 

Federal funds sold

 

 

102,028

 

2.46

 

 

 

30,721

 

1.21

 

 

 

16,639

 

0.31

 

 

 

39,445

 

0.18

 

 

 

8,551

 

0.19

 

 

Restricted equity securities

 

 

7,724

 

3.65

 

 

 

7,724

 

3.74

 

 

 

7,371

 

3.70

 

 

 

873

 

3.18

 

 

 

-

 

-

 

 

Interest-bearing balances with banks

 

 

945,142

 

2.56

 

 

 

2,332,412

 

0.80

 

 

 

3,637,882

 

0.20

 

 

 

4,561,662

 

0.16

 

 

 

3,761,652

 

0.16

 

 

Total interest-earning assets

 

$

13,781,180

 

4.30

 

 

$

14,342,987

 

3.54

 

 

$

14,836,882

 

3.06

 

 

$

14,806,241

 

2.92

 

 

$

13,439,524

 

3.08

 

 

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

256,607

 

 

 

 

 

204,994

 

 

 

 

 

74,534

 

 

 

 

 

79,293

 

 

 

 

 

90,034

 

 

 

 

Net premises and equipment

 

 

60,155

 

 

 

 

 

60,673

 

 

 

 

 

61,209

 

 

 

 

 

61,837

 

 

 

 

 

62,845

 

 

 

 

Allowance for credit losses, accrued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest and other assets

 

 

294,000

 

 

 

 

 

297,893

 

 

 

 

 

313,560

 

 

 

 

 

303,300

 

 

 

 

 

315,178

 

 

 

 

Total assets

 

$

14,391,942

 

 

 

 

$

14,906,547

 

 

 

 

$

15,286,185

 

 

 

 

$

15,250,671

 

 

 

 

$

13,907,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

1,722,926

 

0.28

%

 

$

1,699,602

 

0.21

%

 

$

1,594,645

 

0.20

%

 

$

1,499,918

 

0.19

%

 

$

1,431,420

 

0.19

%

 

Savings

 

 

144,368

 

0.21

 

 

 

134,469

 

0.18

 

 

 

135,545

 

0.17

 

 

 

123,179

 

0.18

 

 

 

122,579

 

0.17

 

 

Money market

 

 

4,444,583

 

0.89

 

 

 

4,617,021

 

0.33

 

 

 

4,985,224

 

0.26

 

 

 

5,100,192

 

0.26

 

 

 

5,328,291

 

0.26

 

 

Time deposits

 

 

809,057

 

1.16

 

 

 

766,225

 

0.86

 

 

 

792,930

 

0.91

 

 

 

807,342

 

1.05

 

 

 

806,108

 

1.15

 

 

Total interest-bearing deposits

 

 

7,120,934

 

0.76

 

 

 

7,217,317

 

0.36

 

 

 

7,508,344

 

0.31

 

 

 

7,530,631

 

0.33

 

 

 

7,688,398

 

0.34

 

 

Federal funds purchased

 

 

1,493,444

 

2.27

 

 

 

1,550,805

 

0.79

 

 

 

1,620,012

 

0.23

 

 

 

1,608,349

 

0.21

 

 

 

1,205,327

 

0.21

 

 

Other borrowings

 

 

65,406

 

4.19

 

 

 

64,713

 

4.28

 

 

 

64,708

 

4.28

 

 

 

64,704

 

4.23

 

 

 

64,694

 

4.23

 

 

Total interest-bearing liabilities

 

$

8,679,784

 

1.05

%

 

$

8,832,835

 

0.46

%

 

$

9,193,064

 

0.33

%

 

$

9,203,684

 

0.34

%

 

$

8,958,419

 

0.35

%

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

demand deposits

 

 

4,410,318

 

 

 

 

 

4,824,521

 

 

 

 

 

4,870,701

 

 

 

 

 

4,856,243

 

 

 

 

 

3,800,972

 

 

 

 

Other liabilities

 

 

62,087

 

 

 

 

 

58,784

 

 

 

 

 

59,619

 

 

 

 

 

54,134

 

 

 

 

 

48,060

 

 

 

 

Stockholders' equity

 

 

1,263,870

 

 

 

 

 

1,205,551

 

 

 

 

 

1,156,186

 

 

 

 

 

1,121,578

 

 

 

 

 

1,078,987

 

 

 

 

Accumulated other comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(loss) income

 

 

(24,117)

 

 

 

 

 

(15,144)

 

 

 

 

 

6,615

 

 

 

 

 

15,032

 

 

 

 

 

21,143

 

 

 

 

Total liabilities and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

stockholders' equity

 

$

14,391,942

 

 

 

 

$

14,906,547

 

 

 

 

$

15,286,185

 

 

 

 

$

15,250,671

 

 

 

 

$

13,907,581

 

 

 

 

Net interest spread

 

 

 

 

3.25

%

 

 

 

 

3.08

%

 

 

 

 

2.77

%

 

 

 

 

2.58

%

 

 

 

 

2.73

%

 

Net interest margin

 

 

 

 

3.64

%

 

 

 

 

3.26

%

 

 

 

 

2.89

%

 

 

 

 

2.71

%

 

 

 

 

2.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Average loans include nonaccrual loans in all periods. Loan fees of $3,849, $5,303, $6,823, $7,686, and $7,203 are included in interest income in the third quarter of 2022, the second quarter of 2022, first quarter of 2022, the fourth quarter of 2021, and the third quarter of 2021, 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 $(34,688), $(25,703), $8,245, $18,974, and $26,709 for the third quarter of 2022, second quarter of 2022, first quarter of 2022, fourth quarter of 2021, and third quarter of 2021, respectively, are excluded from the yield calculation.

 

Contacts

ServisFirst Bank
Davis Mange (205) 949-3420
dmange@servisfirstbank.com

Contacts

ServisFirst Bank
Davis Mange (205) 949-3420
dmange@servisfirstbank.com