ServisFirst Bancshares, Inc. Announces Results for First Quarter of 2022
BIRMINGHAM, Ala., April 18, 2022 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE:SFBS), today announced earnings and operating results for the quarter ended March 31, 2022.
First Quarter 2022 Highlights:
Diluted earnings per share were $1.06 for the first quarter, an increase of 12% over the first quarter of 2021. Excluding income on Paycheck Protection Program (“PPP”) loans, diluted earnings per share were $0.99 for the first quarter of 2022 compared to $0.79 for the first quarter of 2021, a 25% increase
Entered the Piedmont region of North Carolina and hired veteran banker Rick Manley as Regional CEO
Total loans grew $366.0 million during the first quarter of 2022. Total loans, excluding the impact of PPP loan forgiveness, grew $488.6 million, or 21% annualized, during the quarter
Deposits were $12.4 billion at March 31, 2022, a 17% increase year over year
Excess funds were $3.34 billion at March 31, 2022
Tangible book value per share increased 13.7% year over year
Return on equity exceeded 20% for the quarter
Tom Broughton, Chairman, President and CEO, said, “We continue to see strong economic activity in our southeastern footprint and saw the first improvement in commercial and industrial line utilization in the quarter since the beginning of the pandemic.”
Bud Foshee, CFO, said, “Liquidity continues to exceed $3.3 billion despite strong loan growth and continued securities purchases.”
FINANCIAL SUMMARY (UNAUDITED) | |||||||||||||||||||||
(in Thousands except share and per share amounts) | |||||||||||||||||||||
Period Ending | Period Ending | % Change From Period Ending December 31, 2021 to Period Ending March 31, 2022 | Period Ending | % Change From Period Ending March 31, 2021 to Period Ending March 31, 2022 | |||||||||||||||||
QUARTERLY OPERATING RESULTS | |||||||||||||||||||||
Net Income | $ | 57,613 | $ | 53,753 | 7 | % | $ | 51,455 | 12 | % | |||||||||||
Net Income Available to Common Stockholders | $ | 57,613 | $ | 53,722 | 7 | % | $ | 51,455 | 12 | % | |||||||||||
Diluted Earnings Per Share | $ | 1.06 | $ | 0.99 | 7 | % | $ | 0.95 | 12 | % | |||||||||||
Return on Average Assets | 1.53 | % | 1.40 | % | 1.72 | % | |||||||||||||||
Return on Average Common Stockholders' Equity | 20.09 | % | 18.75 | % | 19.83 | % | |||||||||||||||
Average Diluted Shares Outstanding | 54,522,042 | 54,493,959 | 54,381,991 | ||||||||||||||||||
BALANCE SHEET | |||||||||||||||||||||
Total Assets | $ | 15,339,419 | $ | 15,448,806 | (1 | ) | % | $ | 12,647,374 | 21 | % | ||||||||||
Loans | 9,898,957 | 9,532,934 | 4 | % | 8,504,980 | 16 | % | ||||||||||||||
Non-interest-bearing Demand Deposits | 4,889,495 | 4,799,767 | 2 | % | 3,044,611 | 61 | % | ||||||||||||||
Total Deposits | 12,408,755 | 12,452,836 | - | % | 10,577,610 | 17 | % | ||||||||||||||
Stockholders' Equity | 1,172,975 | 1,152,015 | 2 | % | 1,030,485 | 14 | % | ||||||||||||||
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $57.6 million for the quarter ended March 31, 2022, compared to net income and net income available to common stockholders of $51.5 million for the same quarter in 2021. Basic and diluted earnings per common share were $1.06 for the first quarter of 2022, compared to $0.95 for the first quarter of 2021. Excluding the impact of PPP, net income and net income available to common stockholders was $54.0 million for the quarter ended March 31, 2022, compared to net income and net income available to common stockholders of $42.9 million for the same quarter in 2021. Excluding the impact of PPP, basic and diluted earnings per common share were $0.99 for the first quarter of 2022, compared to $0.79 for the first quarter of 2021 (see GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures section).
Annualized return on average assets was 1.53% and annualized return on average common stockholders’ equity was 20.09% for the first quarter of 2022, compared to 1.72% and 19.83%, respectively, for the first quarter of 2021.
Net interest income was $105.7 million for the first quarter of 2022, compared to $101.2 million for the fourth quarter of 2021 and $92.4 million for the first quarter of 2021. The net interest margin improved to 2.89% in the first quarter of 2022 compared to 2.71% in the fourth quarter of 2021. The net interest margin was 3.20% in the first quarter of 2021. Accretion of net fees on PPP loans of $4.5 million during the first quarter of 2022 contributed 19 basis points of the loan yield, compared to $5.1 million during the fourth quarter of 2021, or 22 basis points and $9.1 million during the first quarter of 2021, or 43 basis points.
Average loans for the first quarter of 2022 were $9.65 billion, an increase of $587.6 million, or 25.7% annualized, with average loans of $9.06 billion for the fourth quarter of 2021, and an increase of $1.13 billion, or 13.3%, with average loans of $8.51 billion for the first quarter of 2021. Excluding PPP loans, average loans grew $730.7 million, or by 33.9% annualized, during the first quarter of 2022 and grew $1.92 billion, or by 25.5%, year-over-year.
Average total deposits for the first quarter of 2022 were $12.38 billion, a decrease of $7.8 million compared to average deposits for the fourth quarter of 2021, and an increase of $2.20 billion, or 21.6%, with average total deposits of $10.18 billion for the first quarter of 2021.
Non-performing assets to total assets were 0.14% for the first quarter of 2022, an increase of five basis points compared to 0.09% for the fourth quarter of 2021 and a decrease of two basis points compared to 0.16% for the first quarter of 2021. Annualized net charge-offs to average loans were 0.11%, an eight basis point increase compared to 0.03% for the fourth quarter of 2021 and an increase of nine basis points compared to 0.02% for the first quarter of 2021. The allowance for credit losses as a percentage of total loans was 1.21% at March 31, 2022, a decrease of one basis point compared to 1.22% at December 31, 2021, and an increase of nine basis points compared to 1.12% at March 31, 2021. Excluding PPP loans, the allowance for credit losses as a percentage of total loans at March 31, 2022, December 31, 2021, and March 31, 2021, was 1.22%, 1.25% and 1.26%, respectively. We recorded a $5.4 million provision for credit losses in the first quarter of 2022 compared to $8.5 million in the fourth quarter of 2021 and $7.5 million in the first quarter of 2021.
Non-interest income for the first quarter of 2022 decreased $515,000, or 6.1%, to $7.9 million from $8.5 million in the first quarter of 2021, and increased $583,000, or 7.93%, on a linked quarter basis. Service charges on deposit accounts increased $234,000, or 12.3%, to $2.1 million from the first quarter of 2021 to the first quarter of 2022. Mortgage banking revenue decreased $2.2 million to $526,000 from the first quarter of 2021 to the first quarter of 2022, and increased $55,000 or 11.7%, on a linked quarter basis. We started retaining our mortgage loans in the second quarter of 2021 to increase earning assets and use excess liquidity. As of March 31, 2022, we had retained a total of 313 1-4 family mortgages with an aggregate balance of $117.9 million. Net credit card revenue increased $1.2 million, or 99.0%, to $2.4 million during the first quarter of 2022, compared to $1.2 million during the first quarter of 2021, and increased $172,000, or 7.8%, on a linked quarter basis. The number of credit card accounts increased approximately 29% and the aggregate amount of spend on all credit card accounts increased 32% during the first quarter of 2022 compared to the first quarter of 2021. We recognized a $3.3 million loss on the sale of available for sale debt securities during the first quarter of 2022. We sold eight debt securities that were yielding less than 1.00%. Other income for the first quarter of 2022 increased $3.6 million when compared to the first quarter of 2021. The interest rate cap we bought in May of 2020 increased in value during the first quarter of 2022, contributing $3.4 million to the increase in other income. Merchant service revenue increased from $191,000 during the first quarter of 2021 to $336,000 during the first quarter of 2022.
Non-interest expense for the first quarter of 2022 increased $8.3 million, or 28.7%, to $37.2 million from $28.9 million in the first quarter of 2021, and decreased $1.3 million, or 3.3%, on a linked quarter basis. The efficiency ratio was 32.74% during the first quarter of 2022 compared to 28.68% during the first quarter of 2021 and compared to 35.47% during the fourth quarter of 2021. Salary and benefit expense for the first quarter of 2022 increased $2.8 million, or 17.7%, to $18.3 million from $15.6 million in the first quarter of 2021, and increased $998,000, or 5.8%, on a linked quarter basis. The number of FTE employees increased by 20 to 511 at March 31, 2022 compared to 491 at March 31, 2021 and increased by 9 from the end of the fourth quarter of 2021. Equipment and occupancy expense increased $279,000, or 10.5%, to $2.9 million in the first quarter of 2022, from $2.7 million in the first quarter of 2021 and increased $23,000 on a linked-quarter basis. Third party processing and other services expense increased $2.2 million, or 64.1%, to $5.6 million in the first quarter of 2022, from $3.4 million in the first quarter of 2021 and increased $749,000, on a linked-quarter basis. Professional services expense increased $69,000, or 7.5%, to $992,000 in the first quarter of 2022, from $923,000 in the first quarter of 2021 and increased $79,000 on a linked-quarter basis. FDIC and other regulatory assessments decreased $450,000 to $1.1 million in the first quarter of 2022, from $1.6 million in the first quarter of 2021, and increased $90,000, or 8.6%, on a linked quarter basis. Our assessment rate decreased when we started reporting as a large financial institution in the third quarter of 2021. Other operating expenses for the first quarter of 2022 increased $3.6 million, or 77.9%, to $8.3 million from $4.6 million in the first quarter of 2021, and decreased $3.2 million, on a linked-quarter basis. We recognized $874,000 of expenses during the first quarter of 2022 and $3.0 million of expenses during the fourth quarter of 2021 associated with the conversion to a new core operating system scheduled to take place in the fourth quarter of 2022. We wrote down investments in new market tax credit entities by $2.5 million during the first quarter of 2022 and by $6.0 million during the fourth quarter of 2021. We increased our reserve for unfunded loan commitments by $300,000 during the first quarter of 2022 compared to $600,000 during the first quarter of 2021 and decreased the reserve by $1.7 million during the fourth quarter of 2021.
Income tax expense increased $469,000, or 3.6%, to $13.5 million in the first quarter of 2022, compared to $13.0 million in the first quarter of 2021. Our effective tax rate was 18.96% for the first quarter of 2022 compared to 20.18% for the first quarter of 2021. We recognized an aggregate of $3.1 million in credits during the first quarter of 2022 related to investments in new market tax credits. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the first quarters of 2022 and 2021 of $571,000 and $1.6 million, respectively.
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
We originated over 7,400 Paycheck Protection Program (“PPP”) loans with an aggregate balance of approximately $1.5 billion during the COVID-19 pandemic. As of March 31, 2022, we had outstanding PPP loans of $107.6 million, compared to $967.7 million as of March 31, 2021. Financial measures in this press release that are presented adjusted for our PPP activities are net income available to common stockholders, basic and diluted earnings per share and total loans. These financial measures exclude the impact of PPP loans, net of tax, and are considered non-GAAP financial measures. This press release also contains certain non-GAAP financial measures, including tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill 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.
Three Months | Three Months | ||||||||||||||||||||||||||
Net income available to common stockholders - GAAP | $ | 57,613 | $ | 51,455 | |||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
PPP loan income | (4,869 | ) | (11,411 | ) | |||||||||||||||||||||||
Tax on adjustment | 1,222 | 2,864 | |||||||||||||||||||||||||
Adjusted net income available to common stockholders - | |||||||||||||||||||||||||||
non-GAAP | $ | 53,966 | $ | 42,908 | |||||||||||||||||||||||
Diluted earnings per share - GAAP | $ | 1.06 | 0.95 | ||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
PPP loan income | (0.09 | ) | (0.21 | ) | |||||||||||||||||||||||
Tax on adjustment | 0.02 | 0.05 | |||||||||||||||||||||||||
Adjusted diluted earnings per share - non-GAAP | $ | 0.99 | $ | 0.79 | |||||||||||||||||||||||
At March 31, | At December 31, | At September 30, | At June 30, | At March 31, | |||||||||||||||||||||||
Book value per share - GAAP | $ | 21.61 | $ | 21.24 | $ | 20.56 | $ | 19.80 | $ | 19.03 | |||||||||||||||||
Total common stockholders' equity - GAAP | 1,172,975 | 1,152,015 | 1,114,293 | 1,073,284 | 1,030,485 | ||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
Adjusted for goodwill and core deposit intangible asset | (13,615 | ) | (13,638 | ) | (13,705 | ) | (13,773 | ) | (13,841 | ) | |||||||||||||||||
Tangible common stockholders' equity - non-GAAP | $ | 1,159,360 | $ | 1,138,377 | $ | 1,100,588 | $ | 1,059,511 | $ | 1,016,644 | |||||||||||||||||
Tangible book value per share - non-GAAP | $ | 21.36 | $ | 20.99 | $ | 20.30 | $ | 19.55 | $ | 18.78 | |||||||||||||||||
Stockholders' equity to total assets - GAAP | 7.65 | % | 7.46 | % | 7.63 | % | 8.13 | % | 8.15 | % | |||||||||||||||||
Total assets - GAAP | $ | 15,339,419 | $ | 15,448,806 | $ | 14,602,228 | $ | 13,207,319 | $ | 12,647,374 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
Adjusted for goodwill and core deposit intangible asset | (13,615 | ) | (13,638 | ) | (13,705 | ) | (13,773 | ) | (13,841 | ) | |||||||||||||||||
Total tangible assets - non-GAAP | $ | 15,325,804 | $ | 15,435,168 | $ | 14,588,523 | $ | 13,193,546 | $ | 12,633,533 | |||||||||||||||||
Tangible common equity to total tangible assets - non-GAAP | 7.56 | % | 7.38 | % | 7.54 | % | 8.03 | % | 8.05 | % | |||||||||||||||||
Total loans - GAAP | $ | 9,898,957 | $ | 9,532,934 | $ | 8,812,811 | $ | 8,649,694 | $ | 8,504,980 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
Adjusted to exclude PPP loans | (107,565 | ) | (230,184 | ) | (387,725 | ) | (595,017 | ) | (967,641 | ) | |||||||||||||||||
Loans, excluding PPP loans - non-GAAP | $ | 9,791,392 | $ | 9,302,750 | $ | 8,425,086 | $ | 8,054,677 | $ | 7,537,339 | |||||||||||||||||
About ServisFirst Bancshares, Inc.
ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Birmingham, Huntsville, Montgomery, Mobile and Dothan, Alabama, Pensacola, Sarasota and Tampa Bay, Florida, Atlanta and Columbus, Georgia, Charleston, South Carolina and Nashville, Tennessee.
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, including in light of the continuing high rate of domestic inflation; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes in our loan portfolio and the deposit base; economic crisis and associated credit issues in industries most impacted by the COVID-19 outbreak; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic measures intended to curb rising inflation; 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 2021, 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.
Contact: ServisFirst Bank
Davis Mange (205) 949-3420
dmange@servisfirstbank.com
SELECTED FINANCIAL HIGHLIGHTS (Unaudited) | ||||||||||||||||||||
(In thousands except share and per share data) | ||||||||||||||||||||
1st Quarter 2022 | 4th Quarter 2021 | 3rd Quarter 2021 | 2nd Quarter 2021 | 1st Quarter 2021 | ||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||
Interest income | $ | 113,188 | $ | 108,954 | $ | 104,236 | $ | 102,719 | $ | 100,396 | ||||||||||
Interest expense | 7,466 | 7,804 | 7,916 | 8,051 | 8,031 | |||||||||||||||
Net interest income | 105,722 | 101,150 | 96,320 | 94,668 | 92,365 | |||||||||||||||
Provision for credit losses | 5,362 | 8,451 | 5,963 | 9,652 | 7,451 | |||||||||||||||
Net interest income after provision for credit losses | 100,360 | 92,699 | 90,357 | 85,016 | 84,914 | |||||||||||||||
Non-interest income | 7,948 | 7,365 | 8,026 | 9,598 | 8,463 | |||||||||||||||
Non-interest expense | 37,218 | 38,489 | 34,377 | 31,309 | 28,914 | |||||||||||||||
Income before income tax | 71,090 | 61,575 | 64,006 | 63,305 | 64,463 | |||||||||||||||
Provision for income tax | 13,477 | 7,822 | 11,507 | 13,278 | 13,008 | |||||||||||||||
Net income | 57,613 | 53,753 | 52,499 | 50,027 | 51,455 | |||||||||||||||
Preferred stock dividends | - | 31 | - | 31 | - | |||||||||||||||
Net income available to common stockholders | $ | 57,613 | $ | 53,722 | $ | 52,499 | $ | 49,996 | $ | 51,455 | ||||||||||
Earnings per share - basic | $ | 1.06 | $ | 0.99 | $ | 0.97 | $ | 0.92 | $ | 0.95 | ||||||||||
Earnings per share - diluted | $ | 1.06 | $ | 0.99 | $ | 0.96 | $ | 0.92 | $ | 0.95 | ||||||||||
Average diluted shares outstanding | 54,522,042 | 54,493,959 | 54,477,740 | 54,460,230 | 54,381,991 | |||||||||||||||
CONSOLIDATED BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 15,339,419 | $ | 15,448,806 | $ | 14,602,228 | $ | 13,207,319 | $ | 12,647,374 | ||||||||||
Loans | 9,898,957 | 9,532,934 | 8,812,811 | 8,649,694 | 8,504,980 | |||||||||||||||
Debt securities | 1,617,977 | 1,305,527 | 984,600 | 1,013,783 | 962,129 | |||||||||||||||
Non-interest-bearing demand deposits | 4,889,495 | 4,799,767 | 4,366,654 | 3,296,429 | 3,044,611 | |||||||||||||||
Total deposits | 12,408,755 | 12,452,836 | 12,078,670 | 10,958,236 | 10,577,610 | |||||||||||||||
Borrowings | 64,711 | 64,706 | 64,701 | 64,696 | 64,691 | |||||||||||||||
Stockholders' equity | $ | 1,172,975 | $ | 1,152,015 | $ | 1,114,293 | $ | 1,073,284 | $ | 1,030,485 | ||||||||||
Shares outstanding | 54,282,132 | 54,227,060 | 54,207,147 | 54,201,204 | 54,137,650 | |||||||||||||||
Book value per share | $ | 21.61 | $ | 21.24 | $ | 20.56 | $ | 19.80 | $ | 19.03 | ||||||||||
Tangible book value per share (1) | $ | 21.36 | $ | 20.99 | $ | 20.30 | $ | 19.55 | $ | 18.78 | ||||||||||
SELECTED FINANCIAL RATIOS (Annualized) | ||||||||||||||||||||
Net interest margin | 2.89 | % | 2.71 | % | 2.85 | % | 3.06 | % | 3.20 | % | ||||||||||
Return on average assets | 1.53 | % | 1.40 | % | 1.50 | % | 1.56 | % | 1.72 | % | ||||||||||
Return on average common stockholders' equity | 20.09 | % | 18.75 | % | 18.93 | % | 18.98 | % | 19.83 | % | ||||||||||
Efficiency ratio | 32.74 | % | 35.47 | % | 32.95 | % | 30.03 | % | 28.68 | % | ||||||||||
Non-interest expense to average earning assets | 1.02 | % | 1.03 | % | 1.01 | % | 1.01 | % | 1.00 | % | ||||||||||
CAPITAL RATIOS (2) | ||||||||||||||||||||
Common equity tier 1 capital to risk-weighted assets | 9.86 | % | 9.95 | % | 10.46 | % | 10.60 | % | 10.73 | % | ||||||||||
Tier 1 capital to risk-weighted assets | 9.87 | % | 9.96 | % | 10.47 | % | 10.60 | % | 10.73 | % | ||||||||||
Total capital to risk-weighted assets | 11.43 | % | 11.58 | % | 12.18 | % | 12.36 | % | 12.48 | % | ||||||||||
Tier 1 capital to average assets | 7.67 | % | 7.39 | % | 7.80 | % | 8.10 | % | 8.25 | % | ||||||||||
Tangible common equity to total tangible assets (1) | 7.56 | % | 7.38 | % | 7.54 | % | 8.03 | % | 8.05 | % | ||||||||||
(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) | ||||||||||||||
March 31, | March 31, | % Change | ||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 103,439 | $ | 70,107 | 48 | % | ||||||||
Interest-bearing balances due from depository institutions | 3,315,312 | 2,738,046 | 21 | % | ||||||||||
Federal funds sold | 24,638 | 1,577 | 1,462 | % | ||||||||||
Cash and cash equivalents | 3,443,389 | 2,809,730 | 23 | % | ||||||||||
Available for sale debt securities, at fair value | 784,673 | 961,879 | (18 | ) | % | |||||||||
Held to maturity debt securities (fair value of $799,347 at March 31, 2022 and $250 at March 31, 2021) | 833,304 | 250 | N/M | |||||||||||
Restricted equity securities | 7,734 | - | N/M | |||||||||||
Mortgage loans held for sale | 403 | 15,834 | (97 | ) | % | |||||||||
Loans | 9,898,957 | 8,504,980 | 16 | % | ||||||||||
Less allowance for credit losses | (119,463 | ) | (94,906 | ) | 26 | % | ||||||||
Loans, net | 9,779,494 | 8,410,074 | 16 | % | ||||||||||
Premises and equipment, net | 59,908 | 56,472 | 6 | % | ||||||||||
Goodwill and other identifiable intangible assets | 13,615 | 13,841 | (2 | ) | % | |||||||||
Other assets | 416,898 | 379,294 | 10 | % | ||||||||||
Total assets | $ | 15,339,419 | $ | 12,647,374 | 21 | % | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Deposits: | ||||||||||||||
Non-interest-bearing | $ | 4,889,495 | $ | 3,044,611 | 61 | % | ||||||||
Interest-bearing | 7,519,260 | 7,532,999 | - | % | ||||||||||
Total deposits | 12,408,755 | 10,577,610 | 17 | % | ||||||||||
Federal funds purchased | 1,639,238 | 911,558 | 80 | % | ||||||||||
Other borrowings | 64,711 | 64,691 | - | % | ||||||||||
Other liabilities | 53,740 | 63,030 | (15 | ) | % | |||||||||
Total liabilities | 14,166,444 | 11,616,889 | 22 | % | ||||||||||
Stockholders' equity: | ||||||||||||||
Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at | ||||||||||||||
March 31, 2022 and March 31, 2021 | - | - | - | % | ||||||||||
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 54,282,132 shares | ||||||||||||||
issued and outstanding at March 31, 2022, and 54,137,650 shares issued and outstanding | ||||||||||||||
at March 31, 2021 | 54 | 54 | - | % | ||||||||||
Additional paid-in capital | 227,127 | 224,302 | 1 | % | ||||||||||
Retained earnings | 956,169 | 788,875 | 21 | % | ||||||||||
Accumulated other comprehensive (loss) income | (10,875 | ) | 16,754 | N/M | ||||||||||
Total stockholders' equity attributable to ServisFirst Bancshares, Inc. | 1,172,475 | 1,029,985 | 14 | % | ||||||||||
Noncontrolling interest | 500 | 500 | - | % | ||||||||||
Total stockholders' equity | 1,172,975 | 1,030,485 | 14 | % | ||||||||||
Total liabilities and stockholders' equity | $ | 15,339,419 | $ | 12,647,374 | 21 | % | ||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||
(In thousands except per share data) | |||||||||
Three Months Ended March 31, | |||||||||
2022 | 2021 | ||||||||
Interest income: | |||||||||
Interest and fees on loans | $ | 103,105 | $ | 93,803 | |||||
Taxable securities | 8,223 | 5,807 | |||||||
Nontaxable securities | 43 | 107 | |||||||
Federal funds sold | 13 | 3 | |||||||
Other interest and dividends | 1,804 | 676 | |||||||
Total interest income | 113,188 | 100,396 | |||||||
Interest expense: | |||||||||
Deposits | 5,843 | 6,881 | |||||||
Borrowed funds | 1,623 | 1,150 | |||||||
Total interest expense | 7,466 | 8,031 | |||||||
Net interest income | 105,722 | 92,365 | |||||||
Provision for credit losses | 5,362 | 7,451 | |||||||
Net interest income after provision for credit losses | 100,360 | 84,914 | |||||||
Non-interest income: | |||||||||
Service charges on deposit accounts | 2,142 | 1,908 | |||||||
Mortgage banking | 526 | 2,747 | |||||||
Credit card income | 2,372 | 1,192 | |||||||
(Loss) on sale of debt securities | (3,335 | ) | - | ||||||
Increase in cash surrender value life insurance | 1,608 | 1,658 | |||||||
Other operating income | 4,635 | 958 | |||||||
Total non-interest income | 7,948 | 8,463 | |||||||
Non-interest expense: | |||||||||
Salaries and employee benefits | 18,301 | 15,543 | |||||||
Equipment and occupancy expense | 2,933 | 2,654 | |||||||
Third party processing and other services | 5,605 | 3,416 | |||||||
Professional services | 992 | 923 | |||||||
FDIC and other regulatory assessments | 1,132 | 1,582 | |||||||
Other real estate owned expense | 3 | 157 | |||||||
Other operating expense | 8,252 | 4,639 | |||||||
Total non-interest expense | 37,218 | 28,914 | |||||||
Income before income tax | 71,090 | 64,463 | |||||||
Provision for income tax | 13,477 | 13,008 | |||||||
Net income | 57,613 | 51,455 | |||||||
Dividends on preferred stock | - | - | |||||||
Net income available to common stockholders | $ | 57,613 | $ | 51,455 | |||||
Basic earnings per common share | $ | 1.06 | $ | 0.95 | |||||
Diluted earnings per common share | $ | 1.06 | $ | 0.95 | |||||
LOANS BY TYPE (UNAUDITED) | ||||||||||||||||
(In thousands) | ||||||||||||||||
1st Quarter 2022 | 4th Quarter 2021 | 3rd Quarter 2021 | 2nd Quarter 2021 | 1st Quarter 2021 | ||||||||||||
Commercial, financial and agricultural | $ | 2,955,927 | $ | 2,984,053 | $ | 2,927,845 | $ | 3,105,243 | $ | 3,323,093 | ||||||
Real estate - construction | 1,164,690 | 1,103,076 | 887,938 | 782,305 | 666,592 | |||||||||||
Real estate - mortgage: | ||||||||||||||||
