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ServisFirst Bancshares, Inc. Announces Results For Second Quarter of 2024

ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended June 30, 2024.

Second Quarter 2024 Highlights:

  • Diluted EPS grew from $0.92 in the first quarter of 2024 to $0.95 in the second quarter of 2024.
  • Net interest margin increased 13 basis points from the first quarter of 2024.
  • Deposits grew by 16% annualized from the first quarter of 2024 and 8% year-over-year.
  • Loans grew by 15% annualized from the first quarter of 2024 and 6% year-over-year.
  • Credit quality continues to be strong with non-performing assets to total assets of 0.23%.
  • Liquidity remains strong with over $1.3 billion in cash and no FHLB advances or brokered deposits.
  • Book value per share of $27.71, up 11% year-over-year.
  • Entered the Auburn-Opelika, Alabama market.

Tom Broughton, Chairman, President, and CEO, said, “We were pleased to add a strong banking team and enter the Auburn-Opelika, Alabama market during the quarter, and believe it should become one of our top community banking markets. Loan and deposit growth were strong throughout our footprint with the addition of new bankers and serving new and expanded customer relationships.”

Kirk Pressley, CFO, said, “We are happy with the margin progression and momentum. Our dollar margin increased by $3.4 million from the first quarter, a 13% annualized linked quarter increase. The net interest margin percentage increased an impressive 13 basis points to 2.79%.”

FINANCIAL SUMMARY (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in Thousands except share and per share amounts)

 

Period Ending

June 30, 2024

 

Period Ending

March 31, 2024

 

% Change

From

Period Ending

March 31, 2024

to Period Ending

June 30, 2024

 

Period Ending

June 30, 2023

 

% Change

From

Period Ending

June 30, 2023

to Period Ending

June 30, 2024

 

QUARTERLY OPERATING RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

52,136

 

 

$

50,026

 

 

4.2

%

 

$

53,468

 

 

(2.5

)%

 

Net Income Available to Common Stockholders

 

$

52,105

 

 

$

50,026

 

 

4.2

%

 

$

53,437

 

 

(2.5

)%

 

Diluted Earnings Per Share

 

$

0.95

 

 

$

0.92

 

 

3.7

%

 

$

0.98

 

 

(3.1

)%

 

Return on Average Assets

 

 

1.34

%

 

 

1.26

%

 

 

 

 

1.50

%

 

 

 

Return on Average Common Stockholders' Equity

 

 

14.08

%

 

 

13.82

%

 

 

 

 

15.85

%

 

 

 

Average Diluted Shares Outstanding

 

 

54,638,118

 

 

 

54,595,384

 

 

 

 

 

54,527,317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income, net of tax*

 

$

52,136

 

 

$

51,373

 

 

1.5

%

 

$

53,468

 

 

(2.5

)%

 

Adjusted Net Income Available to Common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders, net of tax*

 

$

52,105

 

 

$

51,373

 

 

1.4

%

 

$

53,437

 

 

(2.5

)%

 

Adjusted Diluted Earnings Per Share, net of tax*

 

$

0.95

 

 

$

0.94

 

 

1.1

%

 

$

0.98

 

 

(3.1

)%

 

Adjusted Return on Average Assets, net of tax*

 

 

1.34

%

 

 

1.29

%

 

 

 

 

1.50

%

 

 

 

Adjusted Return on Average Common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity, net of tax*

 

 

14.08

%

 

 

14.19

%

 

 

 

 

15.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YEAR-TO-DATE OPERATING RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

102,162

 

 

 

 

 

 

 

 

$

111,439

 

 

(8.3

)%

 

Net Income Available to Common Stockholders

 

$

102,131

 

 

 

 

 

 

 

 

$

111,408

 

 

(8.3

)%

 

Diluted Earnings Per Share

 

$

1.87

 

 

 

 

 

 

 

 

$

2.04

 

 

(8.5

)%

 

Return on Average Assets

 

 

1.30

%

 

 

 

 

 

 

 

 

1.57

%

 

 

 

Return on Average Common Stockholders' Equity

 

 

13.96

%

 

 

 

 

 

 

 

 

16.83

%

 

 

 

Average Diluted Shares Outstanding

 

 

54,616,751

 

 

 

 

 

 

 

 

 

54,520,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income, net of tax*

 

$

103,509

 

 

 

 

 

 

 

 

$

111,439

 

 

(7.1

)%

 

Adjusted Net Income Available to Common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders, net of tax*

 

$

103,478

 

 

 

 

 

 

 

 

$

111,408

 

 

(7.1

)%

 

Adjusted Diluted Earnings Per Share, net of tax*

 

$

1.89

 

 

 

 

 

 

 

 

$

2.04

 

 

 

 

Adjusted Return on Average Assets, net of tax*

 

 

1.31

%

 

 

 

 

 

 

 

 

1.57

%

 

 

 

Adjusted Return on Average Common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity, net of tax*

 

 

14.15

%

 

 

 

 

 

 

 

 

16.83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

16,049,814

 

 

$

15,721,630

 

 

2.1

%

 

$

15,072,808

 

 

6.5

%

 

Loans

 

 

12,332,780

 

 

 

11,880,696

 

 

3.8

%

 

 

11,604,894

 

 

6.3

%

 

Non-interest-bearing Demand Deposits

 

 

2,475,415

 

 

 

2,627,639

 

 

(5.8

)%

 

 

2,855,102

 

 

(13.3

)%

 

Total Deposits

 

 

13,259,392

 

 

 

12,751,448

 

 

4.0

%

 

 

12,288,219

 

 

7.9

%

 

Stockholders' Equity

 

 

1,510,578

 

 

 

1,476,036

 

 

2.3

%

 

 

1,363,471

 

 

10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* This press release includes certain non-GAAP financial measures: adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity, adjusted efficiency ratio, tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $52.1 million for the quarter ended June 30, 2024, compared to net income and net income available to common stockholders of $50.0 million for the first quarter of 2024 and net income of $53.5 million and net income available to common stockholders of $53.4 million for the second quarter of 2023. Basic and diluted earnings per common share were $0.96 and $0.95, respectively, in the second quarter of 2024, compared to $0.92 for both in the first quarter of 2024 and $0.98 for both in the second quarter of 2023.

Annualized return on average assets was 1.34% and annualized return on average common stockholders’ equity was 14.08% for the second quarter of 2024, compared to 1.50% and 15.85%, respectively, for the second quarter of 2023.

Net interest income was $105.9 million for the second quarter of 2024, compared to $102.5 million for the first quarter of 2024 and $101.3 million for the second quarter of 2023. The net interest margin in the second quarter of 2024 was 2.79% compared to 2.66% in the first quarter of 2024 and 2.93% in the second quarter of 2023. Loan yields were 6.48% during the second quarter of 2024 compared to 6.40% during the first quarter of 2024 and 5.94% during the second quarter of 2023. Investment yields were 3.32% during the second quarter of 2024 compared to 3.16% during the first quarter of 2024 and 2.64% during the second quarter of 2023. Average interest-bearing deposit rates were 4.08% during the second quarter of 2024, compared to 4.04% during the first quarter of 2024 and 3.32% during the second quarter of 2023. Average federal funds purchased rates were 5.50% during second quarter of 2024, compared to 5.50% during the first quarter of 2024 and 5.14% during the second quarter of 2023.

Average loans for the second quarter of 2024 were $12.06 billion, an increase of $322.0 million, or 11.0% annualized, from average loans of $11.74 billion for the first quarter of 2024, and an increase of $463.7 million, or 4.0%, from average loans of $11.60 billion for the second quarter of 2023. Ending total loans for the second quarter of 2024 were $12.33 billion, an increase of $452.1 million, or 15.3% annualized, from $11.88 billion for the first quarter of 2024, and an increase of $727.9 million, or 6.3%, from $11.60 billion for the second quarter of 2023.

Average total deposits for the second quarter of 2024 were $12.86 billion, a decrease of $61.0 million, or 1.9% annualized, from average total deposits of $12.92 billion for the first quarter of 2024, and an increase of $1.28 billion, or 11.0%, from average total deposits of $11.58 billion for the second quarter of 2023. Ending total deposits for the second quarter of 2024 were $13.26 billion, an increase of $507.9 million, or 16.0% annualized, from $12.75 billion for the first quarter of 2024, and an increase of $971.2 million, or 7.9%, from $12.29 billion for the second quarter of 2023.

Non-performing assets to total assets were 0.23% for the second quarter of 2024, compared to 0.22% for the first quarter of 2024 and 0.16% for the second quarter of 2023. The increase in non-performing assets to total assets can be attributed to a single relationship that moved to non-accrual status during the first quarter of 2024. This loan has been closely monitored and is well-collateralized. Annualized net charge-offs to average loans were 0.10% for the second quarter of 2024, compared to 0.06% for the first quarter of 2024 and 0.11% for the second quarter of 2023. The allowance for credit losses as a percentage of total loans at June 30, 2024, March 31, 2024, and June 30, 2023, was 1.28%, 1.31%, and 1.31%, respectively. We recorded a $5.4 million provision for credit losses in the second quarter of 2024 compared to $4.4 million in the first quarter of 2024, and $6.7 million in the second quarter of 2023.

Non-interest income increased $309,000, or 3.6%, to $8.9 million for the second quarter of 2024 from $8.6 million in the second quarter of 2023, and increased $78,000, or .9%, on a linked quarter basis. Service charges on deposit accounts increased $151,000, or 7.0%, to $2.3 million for the second quarter of 2024 from $2.1 million in the second quarter of 2023, and increased $143,000, or 6.7%, on a linked quarter basis. Mortgage banking revenue increased $683,000, or 98.1%, to $1.4 million for the second quarter of 2024 from $696,000 in the second quarter of 2023, and increased $701,000, or 103.4%, on a linked quarter basis. The increase in mortgage banking revenue was primarily attributed to a combination of favorable market conditions and increased staffing levels. Net credit card revenue decreased $73,000, or 3.0%, to $2.3 million for the second quarter of 2024 from $2.4 million in the second quarter of 2023, and increased $178,000, or 8.3%, on a linked quarter basis. Bank-owned life insurance (“BOLI”) income decreased $438,000, or 17.5%, to $2.1 million for the second quarter of 2024 from $2.5 million in the second quarter of 2023, and decreased $1.2 million, or 36.3%, on a linked quarter basis. We recognized $1.2 million of income attributed to a death benefit related to a former employee in our BOLI program during the first quarter of 2024, and $890,000 during the second quarter of 2023. Other operating income decreased $14,000, or 1.7%, to $828,000 for the second quarter of 2024 from $842,000 in the second quarter of 2023, and increased $229,000, or 38.2%, on a linked quarter basis.

Non-interest expense increased $4.4 million, or 11.3%, to $42.8 million for the second quarter of 2024 from $38.5 million in the second quarter of 2023, and decreased $3.5 million, or 7.5%, on a linked quarter basis. During the second quarter of 2024, the Company recorded the impact from election of the proportional amortization method to account for historical and new market tax credit investments made primarily for the purpose of receiving income tax credits due to our adoption of Accounting Standards Update 2023-02. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. Previously the amortization of the investment was included in other non-interest expenses. Salary and benefit expense increased $5.4 million, or 28.8%, to $24.2 million for the second quarter of 2024 from $18.8 million in the second quarter of 2023, and increased $1.2 million, or 5.3%, on a linked quarter basis. The number of FTE employees increased by 48, or 8.3%, to 625 at June 30, 2024 compared to 577 at June 30, 2023, and increased by 20, or 3.3%, from the end of the first quarter of 2024. The increase in salary and benefit expense year-over-year continues to be largely due to the normalization of incentives and increased salary expenses due to an increase in FTE employees. Incentives increased approximately $2.7 million, and salaries increased approximately $1.5 million from the second quarter of 2023. Equipment and occupancy expense increased $146,000, or 4.3%, to $3.6 million for the second quarter of 2024 from $3.4 million in the second quarter of 2023, and increased $10,000, or .3%, on a linked quarter basis. Third party processing and other services expense increased $1.3 million, or 20.4%, to $7.5 million for the second quarter of 2024 from $6.2 million in the second quarter of 2023, and increased $299,000, or 4.2%, on a linked quarter basis. Professional services expense increased $161,000, or 10.2%, to $1.7 million for the second quarter of 2024 from $1.6 million in the second quarter of 2023, and increased $277,000, or 18.9%, on a linked quarter basis. FDIC and other regulatory assessments decreased $40,000, or 1.8%, to $2.2 million for the second quarter of 2024 from $2.2 million in the second quarter of 2023, and decreased $1.7 million, or 43.6%, on a linked quarter basis. In the first quarter of 2024, the FDIC implemented a special assessment adjustment to recapitalize the Deposit Insurance Fund resulting in an expense of $1.8 million. See “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures”. Other operating expenses decreased $2.6 million, or 41.8%, to $3.6 million for the second quarter of 2024 from $6.2 million in the second quarter of 2023, and decreased $3.6 million, or 49.6%, on a linked quarter basis. The decrease in other operating expenses were largely due to the application of the proportional amortization method to account for historical and new market tax credit investments, discussed above. The efficiency ratio was 37.31% during the second quarter of 2024 compared to 35.02% during the second quarter of 2023 and 43.30% during the first quarter of 2024.

Income tax expense increased $3.2 million, or 28.6%, to $14.5 million in the second quarter of 2024, compared to $11.2 million in the second quarter of 2023. Our effective tax rate was 21.71% for the second quarter of 2024 compared to 17.38% for the second 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 second quarters of 2024 and 2023 of $396,000 and $138,000, 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 a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including, but not limited to: general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes as a result of our reclassification as a large financial institution by the FDIC; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; and increased competition from both banks and non-bank financial institutions. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K, in our Quarterly Reports on Form 10-Q for fiscal year 2024, and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.

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

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd quarter

2024

 

1st quarter

2024

 

4th quarter

2023

 

3rd quarter

2023

 

2nd quarter

2023

 

CONSOLIDATED STATEMENT OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

227,540

 

 

$

226,710

 

 

$

229,062

 

 

$

213,206

 

 

$

189,656

 

 

Interest expense

 

 

121,665

 

 

 

124,215

 

 

 

127,375

 

 

 

113,508

 

 

 

88,405

 

 

Net interest income

 

 

105,875

 

 

 

102,495

 

 

 

101,687

 

 

 

99,698

 

 

 

101,251

 

 

Provision for credit losses

 

 

5,353

 

 

 

4,368

 

 

 

3,582

 

 

 

4,282

 

 

 

6,654

 

 

Net interest income after provision for credit losses

 

 

100,522

 

 

 

98,127

 

 

 

98,105

 

 

 

95,416

 

 

 

94,597

 

 

Non-interest income

 

 

8,891

 

 

 

8,813

 

 

 

7,379

 

 

 

8,135

 

 

 

8,582

 

 

Non-interest expense

 

 

42,818

 

 

 

46,303

 

 

 

58,258

 

 

 

41,663

 

 

 

38,466

 

 

Income before income tax

 

 

66,595

 

 

 

60,637

 

 

 

47,226

 

 

 

61,888

 

 

 

64,713

 

 

Provision for income tax

 

 

14,459

 

 

 

10,611

 

 

 

5,152

 

 

 

8,548

 

 

 

11,245

 

 

Net income

 

 

52,136

 

 

 

50,026

 

 

 

42,074

 

 

 

53,340

 

 

 

53,468

 

 

Preferred stock dividends

 

 

31

 

 

 

-

 

 

 

31

 

 

 

-

 

 

 

31

 

 

Net income available to common stockholders

 

$

52,105

 

 

$

50,026

 

 

$

42,043

 

 

$

53,340

 

 

$

53,437

 

 

Earnings per share - basic

 

$

0.96

 

 

$

0.92

 

 

$

0.77

 

 

$

0.98

 

 

$

0.98

 

 

Earnings per share - diluted

 

$

0.95

 

 

$

0.92

 

 

$

0.77

 

 

$

0.98

 

 

$

0.98

 

 

Average diluted shares outstanding

 

 

54,638,118

 

 

 

54,595,384

 

 

 

54,548,719

 

 

 

54,530,635

 

 

 

54,527,317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

16,049,814

 

 

$

15,721,630

 

 

$

16,129,668

 

 

$

16,044,332

 

 

$

15,072,808

 

 

Loans

 

 

12,332,780

 

 

 

11,880,696

 

 

 

11,658,829

 

 

 

11,641,130

 

 

 

11,604,894

 

 

Debt securities

 

 

1,941,647

 

 

 

1,941,625

 

 

 

1,882,847

 

 

 

1,878,701

 

 

 

2,048,227

 

 

Non-interest-bearing demand deposits

 

 

2,475,415

 

 

 

2,627,639

 

 

 

2,643,101

 

 

 

2,621,072

 

 

 

2,855,102

 

 

Total deposits

 

 

13,259,392

 

 

 

12,751,448

 

 

 

13,273,511

 

 

 

13,142,376

 

 

 

12,288,219

 

 

Borrowings

 

 

64,739

 

 

 

64,737

 

 

 

64,735

 

 

 

64,751

 

 

 

64,737

 

 

Stockholders' equity

 

 

1,510,578

 

 

 

1,476,036

 

 

 

1,440,405

 

 

 

1,401,384

 

 

 

1,363,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

54,522,802

 

 

 

54,507,778

 

 

 

54,461,580

 

 

 

54,425,447

 

 

 

54,425,033

 

 

Book value per share

 

$

27.71

 

 

$

27.08

 

 

$

26.45

 

 

$

25.75

 

 

$

25.05

 

 

Tangible book value per share (1)

 

$

27.46

 

 

$

26.83

 

 

$

26.20

 

 

$

25.50

 

 

$

24.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED FINANCIAL RATIOS (Annualized)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

2.79

%

 

 

2.66

%

 

 

2.57

%

 

 

2.64

%

 

 

2.93

%

 

Return on average assets

 

 

1.34

%

 

 

1.26

%

 

 

1.04

%

 

 

1.37

%

 

 

1.50

%

 

Return on average common stockholders' equity

 

 

14.08

%

 

 

13.82

%

 

 

11.78

%

 

 

15.34

%

 

 

15.85

%

 

Efficiency ratio

 

 

37.31

%

 

 

43.30

%

 

 

55.23

%

 

 

38.64

%

 

 

35.02

%

 

Non-interest expense to average earning assets

 

 

1.13

%

 

 

1.20

%

 

 

1.47

%

 

 

1.10

%

 

 

1.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital to risk-weighted assets

 

 

10.93

%

 

 

11.07

%

 

 

10.91

%

 

 

10.69

%

 

 

10.37

%

 

Tier 1 capital to risk-weighted assets

 

 

10.93

%

 

 

11.08

%

 

 

10.92

%

 

 

10.69

%

 

 

10.38

%

 

Total capital to risk-weighted assets

 

 

12.43

%

 

 

12.61

%

 

 

12.45

%

 

 

12.25

%

 

 

11.94

%

 

Tier 1 capital to average assets

 

 

9.81

%

 

 

9.44

%

 

 

9.12

%

 

 

9.35

%

 

 

9.83

%

 

Tangible common equity to total tangible assets (1)

 

 

9.33

%

 

 

9.31

%

 

 

8.85

%

 

 

8.66

%

 

 

8.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) This press release contains certain non-GAAP financial measures. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

 

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

 

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, including adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity, and adjusted efficiency ratio. During the fourth quarter of 2023, we recorded a one-time expense of $7.2 million associated with the FDIC’s special assessment to recapitalize the Deposit Insurance Fund following bank failures in the spring of 2023. This assessment was updated in the first quarter of 2024 resulting in additional expense of $1.8 million. These expenses are unusual, or infrequent, in nature and not part of the noninterest expense run rate. Each of adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity and adjusted efficiency ratio excludes the impact of these items, net of tax, and are all considered non-GAAP financial measures. This press release also contains the non-GAAP financial measures of tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill associated with our acquisition of Metro Bancshares, Inc. in January 2015.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At June 30,

2024

 

At March 31,

2024

 

At December 31,

2023

 

At September 30,

2023

 

At June 30,

2023

 

Book value per share - GAAP

$

27.71

 

 

$

27.08

 

 

$

26.45

 

 

$

25.75

 

 

$

25.05

 

 

Total common stockholders' equity - GAAP

 

1,510,578

 

 

 

1,476,036

 

 

 

1,440,405

 

 

 

1,401,384

 

 

 

1,363,471

 

 

Adjustment for Goodwill

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

Tangible common stockholders' equity - non-GAAP

$

1,496,963

 

 

$

1,462,421

 

 

$

1,426,790

 

 

$

1,387,769

 

 

$

1,349,856

 

 

Tangible book value per share - non-GAAP

$

27.46

 

 

$

26.83

 

 

$

26.22

 

 

$

25.50

 

 

$

24.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity to total assets - GAAP

 

9.41

%

 

 

9.39

%

 

 

8.93

%

 

 

8.73

%

 

 

9.05

%

 

Total assets - GAAP

$

16,049,814

 

 

$

16,048,819

 

 

$

16,129,668

 

 

$

16,044,332

 

 

$

15,072,808

 

 

Adjustment for Goodwill

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

Total tangible assets - non-GAAP

$

16,036,199

 

 

$

16,035,204

 

 

$

16,116,053

 

 

$

16,030,717

 

 

$

15,059,193

 

 

Tangible common equity to total tangible assets - non-GAAP

 

9.33

%

 

 

9.33

%

 

 

8.85

%

 

 

8.66

%

 

 

8.96

%

 

 

 

Three Months

Ended

June 30, 2024

 

Three Months

Ended

March 31, 2024

 

Three Months

Ended

June 30, 2023

 

Six Months

Ended

June 30, 2024

 

Six Months

Ended

June 30, 2023

Net income - GAAP

 

$

52,136

 

 

$

50,026

 

 

$

53,468

 

 

$

102,162

 

 

$

111,439

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

-

 

 

 

1,799

 

 

 

-

 

 

 

1,799

 

 

 

-

 

Tax on adjustments

 

 

-

 

 

 

(452

)

 

 

-

 

 

 

(452

)

 

 

-

 

Adjusted net income - non-GAAP

 

$

52,136

 

 

$

51,373

 

 

$

53,468

 

 

$

103,509

 

 

$

111,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders - GAAP

 

$

52,105

 

 

$

50,026

 

 

$

53,437

 

 

$

102,131

 

 

$

111,408

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

-

 

 

 

1,799

 

 

 

-

 

 

 

1,799

 

 

 

-

 

Tax on adjustments

 

 

-

 

 

 

(452

)

 

 

-

 

 

 

(452

)

 

 

-

 

Adjusted net income available to common stockholders -non-GAAP

 

$

52,105

 

 

$

51,373

 

 

$

53,437

 

 

$

103,478

 

 

$

111,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share - GAAP

 

$

0.95

 

 

$

0.92

 

 

$

0.98

 

 

$

1.87

 

 

$

2.04

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

-

 

 

 

0.03

 

 

 

-

 

 

 

0.03

 

 

 

-

 

Tax on adjustments

 

 

-

 

 

 

(0.01

)

 

 

-

 

 

 

(0.01

)

 

 

-

 

Adjusted diluted earnings per share - non-GAAP

 

$

0.95

 

 

$

0.94

 

 

$

0.98

 

 

$

1.89

 

 

$

2.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets - GAAP

 

 

1.34

%

 

 

1.26

%

 

 

1.50

%

 

 

1.30

%

 

 

1.57

%

Net income available to common stockholders - GAAP

 

$

52,105

 

 

$

50,026

 

 

$

53,437

 

 

$

102,131

 

 

$

111,408

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

-

 

 

 

1,799

 

 

 

-

 

 

 

1,799

 

 

 

-

 

Tax on adjustments

 

 

-

 

 

 

(452

)

 

 

-

 

 

 

(452

)

 

 

-

 

Adjusted net income available to common stockholders -non-GAAP

 

$

52,105

 

 

$

51,373

 

 

$

53,437

 

 

$

103,478

 

 

$

111,408

 

Average assets - GAAP

 

$

15,697,538

 

 

$

15,957,579

 

 

$

14,291,873

 

 

$

15,827,894

 

 

$

14,344,749

 

Adjusted return on average assets - non-GAAP

 

 

1.34

%

 

 

1.29

%

 

 

1.50

%

 

 

1.31

%

 

 

1.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common stockholders' equity - GAAP

 

 

14.08

%

 

 

13.82

%

 

 

15.85

%

 

 

13.96

%

 

 

16.83

%

Net income available to common stockholders - GAAP

 

$

52,105

 

 

$

50,026

 

 

$

53,437

 

 

$

102,131

 

 

$

111,408

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

-

 

 

 

1,799

 

 

 

-

 

 

 

1,799

 

 

 

-

 

Tax on adjustments

 

 

-

 

 

 

(452

)

 

 

-

 

 

 

(452

)

 

 

-

 

Adjusted diluted earnings per share - non-GAAP

 

$

52,105

 

 

$

51,373

 

 

$

53,437

 

 

$

103,478

 

 

$

111,408

 

Average common stockholders' equity - GAAP

 

$

1,488,429

 

 

$

1,455,938

 

 

$

1,351,944

 

 

$

1,471,048

 

 

$

1,335,267

 

Adjusted return on average common stockholders' equity non-GAAP

 

 

14.08

%

 

 

14.19

%

 

 

15.85

%

 

 

14.15

%

 

 

16.83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

37.31

%

 

 

55.23

%

 

 

35.02

%

 

 

39.42

%

 

 

34.81

%

Non-interest expense - GAAP

 

$

42,818

 

 

$

46,303

 

 

$

38,466

 

 

$

89,121

 

 

$

78,130

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

-

 

 

 

1,799

 

 

 

-

 

 

 

1,799

 

 

 

-

 

Adjusted non-interest expense

 

$

42,818

 

 

$

44,504

 

 

$

38,466

 

 

$

87,322

 

 

$

78,130

 

Net interest income plus non-interest income - GAAP

 

$

114,766

 

 

$

111,308

 

 

$

109,833

 

 

$

226,074

 

 

$

224,455

 

Adjusted efficiency ratio - non-GAAP

 

 

37.31

%

 

 

39.98

%

 

 

35.02

%

 

 

38.63

%

 

 

34.81

%

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

June 30, 2024

 

June 30, 2023

 

% Change

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

135,711

 

 

$

107,251

 

 

27

%

 

Interest-bearing balances due from depository institutions

 

 

1,129,922

 

 

 

852,483

 

 

33

%

 

Federal funds sold

 

 

11,132

 

 

 

17,958

 

 

(38

)%

 

Cash and cash equivalents

 

 

1,276,765

 

 

 

977,692

 

 

31

%

 

Available for sale debt securities, at fair value

 

 

1,174,389

 

 

 

990,921

 

 

19

%

 

Held to maturity debt securities (fair value of $684,235 and $963,843, respectively)

 

 

767,258

 

 

 

1,057,306

 

 

(27

)%

 

Restricted equity securities

 

 

11,300

 

 

 

7,307

 

 

55

%

 

Mortgage loans held for sale

 

 

11,174

 

 

 

3,981

 

 

181

%

 

Loans

 

 

12,332,780

 

 

 

11,604,894

 

 

6

%

 

Less allowance for credit losses

 

 

(158,092

)

 

 

(152,272

)

 

4

%

 

Loans, net

 

 

12,174,688

 

 

 

11,452,622

 

 

6

%

 

Premises and equipment, net

 

 

59,200

 

 

 

59,655

 

 

(1

)%

 

Goodwill

 

 

13,615

 

 

 

13,615

 

 

-

%

 

Other assets

 

 

561,425

 

 

 

509,709

 

 

10

%

 

Total assets

 

$

16,049,814

 

 

$

15,072,808

 

 

6

%

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

$

2,475,415

 

 

$

2,855,102

 

 

(13

)%

 

Interest-bearing

 

 

10,783,977

 

 

 

9,433,117

 

 

14

%

 

Total deposits

 

 

13,259,392

 

 

 

12,288,219

 

 

8

%

 

Federal funds purchased

 

 

1,097,154

 

 

 

1,298,066

 

 

(15

)%

 

Other borrowings

 

 

64,739

 

 

 

64,737

 

 

-

%

 

Other liabilities

 

 

117,951

 

 

 

58,315

 

 

102

%

 

Total liabilities

 

 

14,539,236

 

 

 

13,709,337

 

 

6

%

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at June 30, 2024 and June 30, 2023

 

 

-

 

 

 

-

 

 

-

%

 

Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,522,802 shares issued and outstanding at June 30, 2024, and 54,398,025 shares issued and outstanding at June 30, 2023

 

 

54

 

 

 

54

 

 

-

%

 

Additional paid-in capital

 

 

234,495

 

 

 

230,659

 

 

2

%

 

Retained earnings

 

 

1,322,049

 

 

 

1,190,920

 

 

11

%

 

Accumulated other comprehensive loss

 

 

(46,520

)

 

 

(58,662

)

 

(21

)%

 

Total stockholders' equity attributable to ServisFirst Bancshares, Inc.

 

 

1,510,078

 

 

 

1,362,971

 

 

11

%

 

Noncontrolling interest

 

 

500

 

 

 

500

 

 

-

%

 

Total stockholders' equity

 

 

1,510,578

 

 

 

1,363,471

 

 

11

%

 

Total liabilities and stockholders' equity

 

$

16,049,814

 

 

$

15,072,808

 

 

6

%

 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

(In thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

 

2024

 

2023

 

2024

 

2023

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

194,300

 

$

171,718

 

$

381,278

 

$

335,450

 

Taxable securities

 

 

16,158

 

 

11,570

 

 

32,137

 

 

22,465

 

Nontaxable securities

 

 

9

 

 

17

 

 

18

 

 

38

 

Federal funds sold

 

 

538

 

 

227

 

 

1,079

 

 

841

 

Other interest and dividends

 

 

16,535

 

 

6,124

 

 

39,738

 

 

12,184

 

Total interest income

 

 

227,540

 

 

189,656

 

 

454,250

 

 

370,978

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

104,671

 

 

71,971

 

 

208,737

 

 

127,684

 

Borrowed funds

 

 

16,994

 

 

16,434

 

 

37,143

 

 

33,742

 

Total interest expense

 

 

121,665

 

 

88,405

 

 

245,880

 

 

161,426

 

Net interest income

 

 

105,875

 

 

101,251

 

 

208,370

 

 

209,552

 

Provision for credit losses

 

 

5,353

 

 

6,654

 

 

9,721

 

 

10,851

 

Net interest income after provision for credit losses

 

 

100,522

 

 

94,597

 

 

198,649

 

 

198,701

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

2,293

 

 

2,142

 

 

4,443

 

 

4,076

 

Mortgage banking

 

 

1,379

 

 

696

 

 

2,057

 

 

1,138

 

Credit card income

 

 

2,333

 

 

2,406

 

 

4,488

 

 

4,095

 

Bank-owned life insurance income

 

 

2,058

 

 

2,496

 

 

5,289

 

 

4,117

 

Other operating income

 

 

828

 

 

842

 

 

1,427

 

 

1,477

 

Total non-interest income

 

 

8,891

 

 

8,582

 

 

17,704

 

 

14,903

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

24,213

 

 

18,795

 

 

47,199

 

 

37,861

 

Equipment and occupancy expense

 

 

3,567

 

 

3,421

 

 

7,124

 

 

6,856

 

Third party processing and other services

 

 

7,465

 

 

6,198

 

 

14,631

 

 

13,482

 

Professional services

 

 

1,741

 

 

1,580

 

 

3,205

 

 

3,234

 

FDIC and other regulatory assessments

 

 

2,202

 

 

2,242

 

 

6,107

 

 

3,759

 

Other real estate owned expense

 

 

7

 

 

6

 

 

37

 

 

12

 

Other operating expense

 

 

3,623

 

 

6,224

 

 

10,818

 

 

12,926

 

Total non-interest expense

 

 

42,818

 

 

38,466

 

 

89,121

 

 

78,130

 

Income before income tax

 

 

66,595

 

 

64,713

 

 

127,232

 

 

135,474

 

Provision for income tax

 

 

14,459

 

 

11,245

 

 

25,070

 

 

24,035

 

Net income

 

 

52,136

 

 

53,468

 

 

102,162

 

 

111,439

 

Dividends on preferred stock

 

 

31

 

 

-

 

 

31

 

 

31

 

Net income available to common stockholders

 

$

52,105

 

$

53,437

 

$

102,131

 

$

111,408

 

Basic earnings per common share

 

$

0.96

 

$

0.98

 

$

1.87

 

$

2.05

 

Diluted earnings per common share

 

$

0.95

 

$

0.98

 

$

1.87

 

$

2.04

 

LOANS BY TYPE (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2024

 

1st Quarter 2024

 

4th Quarter 2023

 

3rd Quarter 2023

 

2nd Quarter 2023

Commercial, financial and agricultural

 

$

2,935,577

 

$

2,834,102

 

$

2,823,986

 

$

2,890,535

 

$

2,986,453

Real estate - construction

 

 

1,510,677

 

 

1,546,716

 

 

1,519,619

 

 

1,509,937

 

 

1,397,732

Real estate - mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner-occupied commercial

 

 

2,399,644

 

 

2,377,042

 

 

2,257,163

 

 

2,237,684

 

 

2,294,002

1-4 family mortgage

 

 

1,350,428

 

 

1,284,888

 

 

1,249,938

 

 

1,170,099

 

 

1,167,238

Other mortgage

 

 

4,072,007

 

 

3,777,758

 

 

3,744,346

 

 

3,766,124

 

 

3,686,434

Subtotal: Real estate - mortgage

 

 

7,822,079

 

 

7,439,688

 

 

7,251,447

 

 

7,173,907

 

 

7,147,674

Consumer

 

 

64,447

 

 

60,190

 

 

63,777

 

 

66,751

 

 

73,035

Total loans

 

$

12,332,780

 

$

11,880,696

 

$

11,658,829

 

$

11,641,130

 

$

11,604,894

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter

2024

 

1st Quarter

2024

 

4th Quarter

2023

 

3rd Quarter

2023

 

2nd Quarter

2023

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

155,892

 

 

$

153,317

 

 

$

152,247

 

 

$

152,272

 

 

$

148,965

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial financial and agricultural

 

3,355

 

 

 

1,842

 

 

 

2,831

 

 

 

4,783

 

 

 

4,358

 

Real estate - construction

 

-

 

 

 

-

 

 

 

89

 

 

 

19

 

 

 

-

 

Real estate - mortgage

 

119

 

 

 

67

 

 

 

14

 

 

 

-

 

 

 

131

 

Consumer

 

108

 

 

 

98

 

 

 

231

 

 

 

341

 

 

 

111

 

Total charge offs

 

3,582

 

 

 

2,007

 

 

 

3,165

 

 

 

5,143

 

 

 

4,600

 

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial financial and agricultural

 

406

 

 

 

199

 

 

 

614

 

 

 

825

 

 

 

1,233

 

Real estate - construction

 

8

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Real estate - mortgage

 

-

 

 

 

6

 

 

 

-

 

 

 

-

 

 

 

-

 

Consumer

 

15

 

 

 

9

 

 

 

39

 

 

 

11

 

 

 

21

 

Total recoveries

 

429

 

 

 

214

 

 

 

653

 

 

 

836

 

 

 

1,254

 

Net charge-offs

 

3,153

 

 

 

1,793

 

 

 

2,512

 

 

 

4,307

 

 

 

3,346

 

Provision for credit losses

 

5,353

 

 

 

4,368

 

 

 

3,582

 

 

 

4,282

 

 

 

6,654

 

Ending balance

$

158,092

 

 

$

155,892

 

 

$

153,317

 

 

$

152,247

 

 

$

152,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to total loans

 

1.28

%

 

 

1.31

%

 

 

1.32

%

 

 

1.31

%

 

 

1.31

%

Allowance for credit losses to total average loans

 

1.31

%

 

 

1.33

%

 

 

1.32

%

 

 

1.31

%

 

 

1.31

%

Net charge-offs to total average loans

 

0.10

%

 

 

0.06

%

 

 

0.09

%

 

 

0.15

%

 

 

0.11

%

Provision for credit losses to total average loans

 

0.18

%

 

 

0.15

%

 

 

0.12

%

 

 

0.15

%

 

 

0.23

%

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

33,454

 

 

$

34,457

 

 

$

19,349

 

 

$

20,912

 

 

$

16,897

 

Loans 90+ days past due and accruing

 

1,482

 

 

 

380

 

 

 

2,184

 

 

 

1,692

 

 

 

5,947

 

Other real estate owned and repossessed assets

 

1,458

 

 

 

490

 

 

 

995

 

 

 

690

 

 

 

832

 

Total

$

36,394

 

 

$

35,327

 

 

$

22,528

 

 

$

23,294

 

 

$

23,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

0.28

%

 

 

0.29

%

 

 

0.18

%

 

 

0.19

%

 

 

0.20

%

Nonperforming assets to total assets

 

0.23

%

 

 

0.22

%

 

 

0.14

%

 

 

0.15

%

 

 

0.16

%

Nonperforming assets to earning assets

 

0.23

%

 

 

0.23

%

 

 

0.14

%

 

 

0.16

%

 

 

0.16

%

Allowance for credit losses to nonaccrual loans

 

472.57

%

 

 

452.42

%

 

 

795.17

%

 

 

731.74

%

 

 

901.18

%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

(In thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

2nd quarter

2024

 

1st quarter

2024

 

4th quarter

2023

 

3rd quarter

2023

 

2nd quarter

2023

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

194,300

 

$

186,978

 

$

184,897

 

$

178,754

 

$

171,718

 

Taxable securities

 

 

16,158

 

 

15,979

 

 

15,512

 

 

15,522

 

 

11,570

 

Nontaxable securities

 

 

9

 

 

9

 

 

12

 

 

15

 

 

17

 

Federal funds sold

 

 

538

 

 

541

 

 

1,018

 

 

985

 

 

227

 

Other interest and dividends

 

 

16,535

 

 

23,203

 

 

27,623

 

 

17,930

 

 

6,124

 

Total interest income

 

 

227,540

 

 

226,710

 

 

229,062

 

 

213,206

 

 

189,656

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

104,671

 

 

104,066

 

 

108,155

 

 

95,901

 

 

71,971

 

Borrowed funds

 

 

16,994

 

 

20,149

 

 

19,220

 

 

17,607

 

 

16,434

 

Total interest expense

 

 

121,665

 

 

124,215

 

 

127,375

 

 

113,508

 

 

88,405

 

Net interest income

 

 

105,875

 

 

102,495

 

 

101,687

 

 

99,698

 

 

101,251

 

Provision for credit losses

 

 

5,353

 

 

4,368

 

 

3,582

 

 

4,282

 

 

6,654

 

Net interest income after provision for credit losses

 

 

100,522

 

 

98,127

 

 

98,105

 

 

95,416

 

 

94,597

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

2,293

 

 

2,150

 

 

2,181

 

 

2,163

 

 

2,142

 

Mortgage banking

 

 

1,379

 

 

678

 

 

792

 

 

825

 

 

696

 

Credit card income

 

 

2,333

 

 

2,155

 

 

2,004

 

 

2,532

 

 

2,406

 

Bank-owned life insurance income

 

 

2,058

 

 

3,231

 

 

1,639

 

 

1,818

 

 

2,496

 

Other operating income

 

 

828

 

 

599

 

 

763

 

 

797

 

 

842

 

Total non-interest income

 

 

8,891

 

 

8,813

 

 

7,379

 

 

8,135

 

 

8,582

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

24,213

 

 

22,986

 

 

23,024

 

 

20,080

 

 

18,795

 

Equipment and occupancy expense

 

 

3,567

 

 

3,557

 

 

3,860

 

 

3,579

 

 

3,421

 

Third party processing and other services

 

 

7,465

 

 

7,166

 

 

7,841

 

 

6,549

 

 

6,198

 

Professional services

 

 

1,741

 

 

1,464

 

 

1,417

 

 

1,265

 

 

1,580

 

FDIC and other regulatory assessments

 

 

2,202

 

 

3,905

 

 

9,509

 

 

2,346

 

 

2,242

 

Other real estate owned expense

 

 

7

 

 

30

 

 

17

 

 

18

 

 

6

 

Other operating expense

 

 

3,623

 

 

7,195

 

 

12,590

 

 

7,826

 

 

6,224

 

Total non-interest expense

 

 

42,818

 

 

46,303

 

 

58,258

 

 

41,663

 

 

38,466

 

Income before income tax

 

 

66,595

 

 

60,637

 

 

47,226

 

 

61,888

 

 

64,713

 

Provision for income tax

 

 

14,459

 

 

10,611

 

 

5,152

 

 

8,548

 

 

11,245

 

Net income

 

 

52,136

 

 

50,026

 

 

42,074

 

 

53,340

 

 

53,468

 

Dividends on preferred stock

 

 

31

 

 

-

 

 

31

 

 

-

 

 

31

 

Net income available to common stockholders

 

$

52,105

 

$

50,026

 

$

42,043

 

$

53,340

 

$

53,437

 

Basic earnings per common share

 

$

0.96

 

$

0.92

 

$

0.77

 

$

0.98

 

$

0.98

 

Diluted earnings per common share

 

$

0.95

 

$

0.92

 

$

0.77

 

$

0.98

 

$

0.98

 

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)

 

ON A FULLY TAXABLE-EQUIVALENT BASIS

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd quarter 2024

 

1st quarter 2024

 

4th quarter 2023

 

3rd quarter 2023

 

2nd 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

 

$

12,045,743

 

 

6.48

%

 

$

11,723,391

 

 

6.41

%

 

$

11,580,716

 

 

6.33

%

 

$

11,545,003

 

 

6.13

%

 

$

11,581,008

 

 

5.94

%

 

Tax-exempt (2)

 

 

17,230

 

 

2.08

 

 

 

17,605

 

 

5.00

 

 

 

17,787

 

 

4.71

 

 

 

18,023

 

 

4.71

 

 

 

18,312

 

 

4.82

 

 

Total loans, net of unearned income

 

 

12,062,973

 

 

6.48

 

 

 

11,740,996

 

 

6.40

 

 

 

11,598,503

 

 

6.32

 

 

 

11,563,026

 

 

6.13

 

 

 

11,599,320

 

 

5.94

 

 

Mortgage loans held for sale

 

 

6,761

 

 

6.13

 

 

 

4,770

 

 

5.57

 

 

 

5,105

 

 

6.22

 

 

 

5,476

 

 

6.67

 

 

 

5,014

 

 

5.12

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,936,818

 

 

3.33

 

 

 

2,013,295

 

 

3.16

 

 

 

2,007,636

 

 

3.08

 

 

 

2,029,995

 

 

3.07

 

 

 

1,757,397

 

 

2.64

 

 

Tax-exempt (2)

 

 

1,209

 

 

1.99

 

 

 

1,296

 

 

3.40

 

 

 

1,739

 

 

2.30

 

 

 

2,408

 

 

2.49

 

 

 

2,960

 

 

2.43

 

 

Total securities (3)

 

 

1,938,027

 

 

3.32

 

 

 

2,014,591

 

 

3.16

 

 

 

2,009,375

 

 

3.08

 

 

 

2,032,403

 

 

3.07

 

 

 

1,760,357

 

 

2.64

 

 

Federal funds sold

 

 

38,475

 

 

5.62

 

 

 

37,298

 

 

5.83

 

 

 

72,178

 

 

5.60

 

 

 

74,424

 

 

5.25

 

 

 

15,908

 

 

5.72

��

 

Restricted equity securities

 

 

11,290

 

 

7.16

 

 

 

10,417

 

 

7.57

 

 

 

10,216

 

 

8.74

 

 

 

8,471

 

 

5.90

 

 

 

8,834

 

 

6.08

 

 

Interest-bearing balances with banks

 

 

1,183,482

 

 

5.57

 

 

 

1,687,977

 

 

5.48

 

 

 

1,981,411

 

 

5.49

 

 

 

1,293,243

 

 

5.45

 

 

 

460,893

 

 

5.21

 

 

Total interest-earning assets

 

$

15,241,008

 

 

6.01

 

 

$

15,496,049

 

 

5.88

 

 

$

15,676,788

 

 

5.80

 

 

$

14,977,043

 

 

5.65

 

 

$

13,850,326

 

 

5.49

 

 

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

96,646

 

 

 

 

 

 

98,813

 

 

 

 

 

 

101,741

 

 

 

 

 

 

111,566

 

 

 

 

 

 

101,188

 

 

 

 

 

Net premises and equipment

 

 

59,653

 

 

 

 

 

 

60,126

 

 

 

 

 

 

60,110

 

 

 

 

 

 

60,121

 

 

 

 

 

 

60,499

 

 

 

 

 

Allowance for credit losses, accrued interest and other assets

 

 

300,231

 

 

 

 

 

 

302,592

 

 

 

 

 

 

283,435

 

 

 

 

 

 

283,357

 

 

 

 

 

 

279,860

 

 

 

 

 

Total assets

 

$

15,697,538

 

 

 

 

 

$

15,957,580

 

 

 

 

 

$

16,122,074

 

 

 

 

 

$

15,432,087

 

 

 

 

 

$

14,291,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

2,232,460

 

 

2.84

%

 

$

2,339,548

 

 

2.69

%

 

$

2,245,431

 

 

2.91

%

 

$

2,153,973

 

 

2.72

%

 

$

1,628,936

 

 

1.69

%

 

Savings

 

 

105,955

 

 

1.71

 

 

 

106,924

 

 

1.76

 

 

 

107,035

 

 

1.72

 

 

 

112,814

 

 

1.61

 

 

 

122,050

 

 

1.38

 

 

Money market

 

 

6,810,799

 

 

4.46

 

 

 

6,761,495

 

 

4.48

 

 

 

7,106,190

 

 

4.44

 

 

 

6,538,426

 

 

4.24

 

 

 

5,971,639

 

 

3.78

 

 

Time deposits

 

 

1,157,528

 

 

4.47

 

 

 

1,164,204

 

 

4.37

 

 

 

1,111,350

 

 

4.18

 

 

 

1,093,388

 

 

3.89

 

 

 

983,582

 

 

3.44

 

 

Total interest-bearing deposits

 

 

10,306,742

 

 

4.08

 

 

 

10,372,171

 

 

4.04

 

 

 

10,570,006

 

 

4.06

 

 

 

9,898,601

 

 

3.84

 

 

 

8,706,207

 

 

3.32

 

 

Federal funds purchased

 

 

1,193,190

 

 

5.50

 

 

 

1,422,828

 

 

5.50

 

 

 

1,338,110

 

 

5.49

 

 

 

1,237,721

 

 

5.43

 

 

 

1,191,582

 

 

5.14

 

 

Other borrowings

 

 

64,736

 

 

4.26

 

 

 

64,736

 

 

4.26

 

 

 

64,734

 

 

4.23

 

 

 

64,734

 

 

4.23

 

 

 

100,998

 

 

4.62

 

 

Total interest-bearing liabilities

 

$

11,564,668

 

 

4.23

%

 

$

11,859,735

 

 

4.21

%

 

$

11,972,850

 

 

4.22

%

 

$

11,201,056

 

 

4.02

%

 

$

9,998,787

 

 

3.55

%

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing checking

 

 

2,555,312

 

 

 

 

 

 

2,550,841

 

 

 

 

 

 

2,656,504

 

 

 

 

 

 

2,778,858

 

 

 

 

 

 

2,876,225

 

 

 

 

 

Other liabilities

 

 

89,130

 

 

 

 

 

 

91,066

 

 

 

 

 

 

76,651

 

 

 

 

 

 

72,924

 

 

 

 

 

 

64,917

 

 

 

 

 

Stockholders' equity

 

 

1,536,013

 

 

 

 

 

 

1,503,240

 

 

 

 

 

 

1,475,366

 

 

 

 

 

 

1,437,766

 

 

 

 

 

 

1,399,578

 

 

 

 

 

Accumulated other comprehensive

loss

 

 

(47,584

)

 

 

 

 

 

(47,302

)

 

 

 

 

 

(59,297

)

 

 

 

 

 

(58,517

)

 

 

 

 

 

(47,634

)

 

 

 

 

Total liabilities and stockholders' equity

 

$

15,697,538

 

 

 

 

 

$

15,957,580

 

 

 

 

 

$

16,122,074

 

 

 

 

 

$

15,432,087

 

 

 

 

 

$

14,291,873

 

 

 

 

 

Net interest spread

 

 

 

 

1.78

%

 

 

 

 

1.67

%

 

 

 

 

1.58

%

 

 

 

 

1.63

%

 

 

 

 

1.94

%

 

Net interest margin

 

 

 

 

2.79

%

 

 

 

 

2.66

%

 

 

 

 

2.57

%

 

 

 

 

2.64

%

 

 

 

 

2.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Average loans include nonaccrual loans in all periods. Loan fees of $3,317, $3,655, $4,175, $2,996, and $3,318 are included in interest income in the second quarter of 2024, first quarter of 2024, fourth quarter of 2023, third quarter of 2023, and second 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 $(67,823), $(68,162), $(84,647), $(83,815), and $(69,498) for the second quarter of 2024, first quarter of 2024, fourth quarter of 2023, third quarter of 2023, and second quarter of 2023, respectively, are excluded from the yield calculation.

 

 

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