SERVISFIRST BANCSHARES, INC. BIRMINGHAM, Ala., Jan. 25, 2016 /PRNewswire/ -- ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the quarter and year ended December 31, 2015.
Fourth Quarter 2015 Highlights:
-- Diluted earnings per share increased 28% from $0.58 to $0.74 year over
year
-- Diluted earnings per share increased 21% from $0.61 to $0.74 on a linked
quarter basis
-- Net income for the quarter increased 31% year over year
-- Organic loan and deposit growth for the year of 20% and 18%,
respectively
-- Fourth quarter annualized loan and deposit growth of 17% and 18%,
respectively, on a linked quarter basis
-- Entry into the Tampa Bay, Florida area with hire of a new regional CEO
Tom Broughton, President and CEO, said, "We are pleased to welcome our new banking team in the Tampa Bay area led by Greg Bryant, a highly experienced and well known banker in the area." Bud Foshee, CFO, stated, "2015 was a strong year in financial performance and growth."
ServisFirst announces the hiring of Greg Bryant as Executive Vice President and Regional CEO. A temporary loan production office will be opened in Pasco County, for up to a year before a permanent office is established in Tampa Bay, Florida. Greg was formerly the President & CEO of Bay Cities Bank prior to the sale of the bank.
FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share amounts)
Period Ending Period Ending % Change Period Ending
December 31, September 30, December 31, % Change
2015 2015 From Period 2014 From Period
Ending Ending
September 30, December 31,
2014 to Period
2015 to Period Ending
Ending December 31,
December 31, 2015
2015
----
QUARTERLY OPERATING RESULTS
---------------------------
Net Income $19,750 $16,266 21% $15,032 31%
Net Income Available to Common Stockholders $19,726 $16,233 22% $14,917 32%
Diluted Earnings Per Share $0.74 $0.61 21% $0.58 28%
Return on Average Assets 1.55% 1.38% 1.47%
Return on Average Common Stockholders' Equity 17.75% 15.52% 16.39%
Average Diluted Shares Outstanding 26,595,239 26,506,334 25,697,531
YEAR-TO-DATE OPERATING RESULTS
------------------------------
Net Income $63,540 $52,377 21%
Net Income Available to Common Stockholders $63,260 $51,946 22%
Diluted Earnings Per Share $2.39 $2.09 14%
Return on Average Assets 1.38% 1.39%
Return on Average Common Stockholders' Equity 15.30% 16.23%
Average Diluted Shares Outstanding 26,442,554 24,818,221
Core Net Income* $65,307 $53,989 21%
Core Net Income Available to Common Stockholders* $65,027 $53,558 21%
Core Diluted Earnings Per Share* $2.46 $2.16 14%
Core Return on Average Assets* 1.42% 1.44%
Core Return on Average Common Stockholders' Equity* 15.73% 16.74%
BALANCE SHEET
-------------
Total Assets $5,095,509 $4,772,601 7% $4,098,679 24%
Loans 4,216,375 4,044,242 4% 3,359,858 25%
Non-interest-bearing Demand Deposits 1,053,467 1,029,354 2% 810,460 30%
Total Deposits 4,223,888 4,044,634 4% 3,398,160 24%
Stockholders' Equity 449,147 431,194 4% 407,213 10%
* Core measures exclude non-routine expenses during the comparative periods presented in this press release as more fully described in "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below.
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income of $19.8 million and net income available to common stockholders of $19.7 million for the quarter ended December 31 2015, compared to net income of $15.0 million and net income available to common stockholders of $14.9 million for the same quarter in 2014. Basic and diluted earnings per common share were $0.76 and $0.74, respectively, for the fourth quarter of 2015, compared to $0.60 and $0.58, respectively, for the fourth quarter of 2014.
Return on average assets was 1.55% and return on average common stockholders' equity was 17.75% for the fourth quarter of 2015, compared to 1.47% and 16.39%, respectively, for the fourth quarter of 2014.
Net interest income was $43.2 million for the fourth quarter of 2015, compared to $41.9 million for the third quarter of 2015 and $34.5 million for the fourth quarter of 2014. The increase in net interest income on a linked quarter basis is attributable to a $197.1 million increase in average loans outstanding and a $74.0 million increase in non-interest-bearing deposits, both resulting in a positive mix change in our balance sheet. The Company completed a private placement of $34.75 million of its 5% Subordinated Notes due July 15, 2025 during the third quarter of 2015, which partially offset the positive mix change attributable to the increase in average loans and non-interest-bearing deposits. The net interest margin in the fourth quarter of 2015 was 3.56%, a 21 basis point decrease from the third quarter of 2015 and unchanged from the fourth quarter of 2014. Excess liquidity during the fourth quarters of 2015 and 2014 drives an unfavorable volume component change when compared to their respective comparable linked quarters. The average yield on loans decreased 9 basis points to 4.44% on a linked quarter basis. Three basis points of this decrease are attributable to a $318,000 decrease in the accretion on acquired loans. Excluding accretion on acquired loans, the net interest margin decreased 22 basis points from the third quarter to the fourth quarter of 2015. Average rates paid on interest-bearing liabilities increased from 0.58% in the third quarter to 0.60% in the fourth quarter of 2015. The higher rates paid on federal funds purchased from our correspondent banks was the result of the 0.25% increase in the Federal Reserve's targeted rate in early December 2015.
Average loans for the fourth quarter of 2015 were $4.12 billion, an increase of $197.1 million, or 5%, over average loans of $3.93 billion for the third quarter of 2015, and an increase of $896.9 million, or 28%, over average loans of $3.23 billion for the fourth quarter of 2014.
Average total deposits for the fourth quarter of 2015 were $4.21 billion, an increase of $288.1 million, or 7%, over average total deposits of $3.92 billion for the third quarter of 2015, and an increase of $805.7 million, or 24%, over average total deposits of $3.41 billion for the fourth quarter of 2014.
Non-performing assets to total assets were 0.26% for the fourth quarter of 2015, a decrease of 8 basis points compared to 0.34% for the third quarter of 2015 and a decrease of 15 basis points compared to 0.41% for the fourth quarter of 2014. Net credit charge-offs to average loans were 0.24%, a 19 basis point increase compared to 0.05% for the third quarter of 2015 and a 5 basis point increase compared to 0.19% for the fourth quarter of 2014. We recorded a $3.3 million provision for loan losses in the fourth quarter of 2015 compared to $3.1 million in the third quarter of 2015 and $2.8 million in the fourth quarter of 2014. The allowance for loan loss as a percentage of total loans was 1.03% at December 31, 2015, a decrease of 2 basis points compared to 1.05% at September 30, 2015 and a decrease of 3 basis points compared to 1.06% at December 31, 2014. In management's opinion, the allowance is adequate and was determined by consistent application of ServisFirst Bank's methodology for calculating its allowance for loan loss.
Non-interest income increased $449,000 during the fourth quarter of 2015, or 14%, compared to the fourth quarter of 2014. Service charges on deposit accounts increased $158,000, or 14%, compared to the fourth quarter of 2014, resulting from an increase in the number of accounts and transactions. Mortgage banking revenue increased $113,000, or 22%, compared to the fourth quarter of 2014. Interchange income on credit card transactions, included in other operating income, increased $140,000, or 25%, compared to the fourth quarter of 2014, resulting from an increase in the number of credit card accounts.
Non-interest expense for the fourth quarter of 2015 increased $5.9 million, or 45%, to $19.1 million from $13.1 million in the fourth quarter of 2014, and increased $754,000, or 4%, on a linked quarter basis. Salary and benefit expense for the fourth quarter of 2015 increased $2.6 million, or 41%, to $8.9 million from $6.3 million in the fourth quarter of 2014, and decreased $1.7 million, or 16%, on a linked quarter basis. We reversed $2.0 million of accrued incentive pay during the fourth quarter of 2015 and reversed $1.0 million of accrued incentive pay during the fourth quarter of 2014. Excluding these reversals, salary and benefit expenses increased $3.6 million year over year and increased $0.3 million on a linked quarter basis. The year-over-year increase is primarily the result of the Metro Bank employees coming on board in February 2015 and employee hires in our newer markets and Birmingham. Other operating expense for the fourth quarter of 2015 increased $3.0 million, or 79%, to $6.9 million from $3.9 million in the fourth quarter of 2014, and increased $2.5 million, or 57%, on a linked quarter basis. Included in these increases were $2.4 million of write-downs in equity investments in tax credit partnerships during the fourth quarter of 2015.
Tax expense for the fourth quarter of 2015 decreased $2.1 million compared to the fourth quarter of 2014, and decreased $3.4 million on a linked quarter basis. Effective tax rates for the fourth quarter of 2015, third quarter of 2015 and fourth quarter of 2014 were 18.81%, 33.00% and 30.63%, respectively. The lower rate in the fourth quarter of 2015 was primarily the result of recognition of federal historic tax credits.
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
We recorded expenses of $2.1 million for the first quarter of 2015 related to the acquisition of Metro Bancshares, Inc. and the merger of Metro Bank with and into the Bank, and recorded an expense of $500,000 resulting from the initial funding of reserves for unfunded loan commitments for the first quarter of 2015, consistent with guidance provided in the Federal Reserve Bank's Inter-agency Policy Statement SR 06-17. We recorded non-routine expenses of $2.5 million during the first half of 2014 resulting from a correction of our accounting for vested stock options and acceleration of vesting for unvested stock options previously granted to members of our advisory boards in our markets. This change in accounting treatment is a non-cash item and did not impact our operating activities or cash from operations. Core financial measures included in this press release are "core net income," "core net income available to common stockholders," "core diluted earnings per share," "core return on average assets" and "core return on average common stockholders' equity." Each of these five core financial measures excludes the impact of the non-routine expenses attributable to merger expenses, the initial funding of reserves for unfunded loan commitments, the correction of our accounting for vested stock options and the acceleration of vesting of unvested stock options, and are all considered non-GAAP financial measures. Other non-GAAP financial measures included in this press release are "tangible common stockholders' equity," "total tangible assets," "tangible book value per share," and "tangible common equity to total tangible assets." All non-GAAP financial measures are more fully explained below.
"Core net income" is defined as net income, adjusted by the net effect of the non-routine expense.
"Core net income available to common stockholders" is defined as net income available to common stockholders, adjusted by the net effect of the non-routine expense.
"Core diluted earnings per share" is defined as net income available to common stockholders, adjusted by the net effect of the non-routine expense, divided by weighted average diluted shares outstanding.
"Core return on average assets" is defined as net income, adjusted by the net effect of the non-routine expense, divided by average total assets.
"Core return on average common stockholders' equity" is defined as net income, adjusted by the net effect of the non-routine expense, divided by average common stockholders' equity.
"Tangible common stockholders' equity" is defined as common stockholders' equity, adjusted by the total of goodwill and other identifiable intangible assets.
"Total tangible assets" is defined as total assets, adjusted by the total of goodwill and other identifiable intangible assets.
"Tangible book value per share" is defined as tangible common stockholders' equity divided by the number of common shares outstanding.
"Tangible common equity to total tangible assets" is defined as tangible common equity divided by total tangible assets.
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 for the years ended December 31, 2015 and December 31, 2014 included in this press release. Dollars are in thousands, except share and per share data.
2015 2014
---- ----
Provision for income taxes -
GAAP $25,465 $21,601
Adjustments:
Adjustment for non-routine
expense 829 865
Core provision for income
taxes $26,294 $22,466
Return on average assets -
GAAP 1.38% 1.39%
Net income - GAAP $63,540 $52,377
Adjustments:
Adjustment for non-routine
expense 1,767 1,612
Core net income $65,307 $53,989
Average assets $4,591,860 $3,757,932
Core return on average
assets 1.42% 1.44%
Return on average common
stockholders' equity 15.30% 16.23%
Net income available to
common stockholders -GAAP $63,260 $51,946
Adjustments:
Adjustment for non-routine
expense 1,767 1,612
Core net income available to
common stockholders $65,027 $53,558
Average common stockholders'
equity $413,445 $320,005
Core return on average
common stockholders' equity 15.73% 16.74%
Earnings per share -diluted
-GAAP $2.39 $2.09
Weighted average shares
outstanding, diluted 26,442,554 24,818,221
Core diluted earnings per
share $2.46 $2.16
Book value per share $17.29 $14.81
Total common stockholders'
equity -GAAP 449,147 367,255
Adjustments:
Adjusted for goodwill and other
identifiable intangible assets 15,330 -
Tangible common
stockholders' equity $433,817 $367,255
Tangible book value per
share $16.70 $14.81
Common stockholders' equity
to total assets 8.81% 8.96%
Total assets - GAAP $5,095,509 $4,098,679
Adjustments:
Adjusted for goodwill and other
identifiable intangible assets 15,330 -
Total tangible assets 5,080,179 4,098,679
Tangible common equity to
total tangible assets 8.54% 8.96%
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, Florida, Atlanta, 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 http://servisfirstbancshares.investorroom.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," "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: 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 in our loan portfolio and deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic stimulus initiatives; 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 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. 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 http://servisfirstbancshares.investorroom.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)
4th Quarter 2015 3rd Quarter 2015 2nd Quarter 2015 1st Quarter 2015 4th Quarter 2014
---------------- ---------------- ---------------- ---------------- ----------------
CONSOLIDATED STATEMENT OF INCOME
Interest income $48,451 $46,532 $44,209 $40,783 $38,163
Interest expense 5,290 4,670 3,998 3,746 3,703
----- ----- ----- ----- -----
Net interest income 43,161 41,862 40,211 37,037 34,460
Provision for loan losses 3,308 3,072 4,062 2,405 2,759
----- ----- ----- ----- -----
Net interest income after provision for loan losses 39,853 38,790 36,149 34,632 31,701
Non-interest income 3,559 3,822 3,505 3,077 3,110
Non-interest expense 19,086 18,332 18,213 18,751 13,143
------ ------ ------ ------ ------
Income before income tax 24,326 24,280 21,441 18,958 21,668
Provision for income tax 4,576 8,014 6,972 5,903 6,636
----- ----- ----- ----- -----
Net income 19,750 16,266 14,469 13,055 15,032
Preferred stock dividends 24 33 123 100 115
--- --- --- --- ---
Net income available to common stockholders $19,726 $16,233 $14,346 $12,955 $14,917
======= ======= ======= ======= =======
Earnings per share - basic $0.76 $0.63 $0.56 $0.51 $0.60
Earnings per share - diluted $0.74 $0.61 $0.54 $0.49 $0.58
Average diluted shares outstanding 26,595,239 26,506,334 26,426,036 26,237,980 25,697,531
CONSOLIDATED BALANCE SHEET DATA
Total assets $5,095,509 $4,772,601 $4,492,539 $4,393,342 $4,098,679
Loans 4,216,375 4,044,242 3,863,734 3,607,852 3,359,858
Debt securities 370,364 334,635 335,008 336,505 327,665
Non-interest-bearing demand deposits 1,053,467 1,029,354 926,577 866,743 810,460
Total deposits 4,223,888 4,044,634 3,729,132 3,638,763 3,398,160
Borrowings 55,748 55,728 21,016 21,278 19,973
Stockholders' equity $449,147 $431,194 $454,487 $441,458 $407,213
Shares outstanding 25,972,698 25,903,698 25,826,198 25,653,610 24,801,518
Book value per share $17.29 $16.65 $16.05 $15.65 $14.81
Tangible book value per share (1) $16.70 $15.96 $15.35 $14.95 $14.81
SELECTED FINANCIAL RATIOS
Net interest margin 3.56% 3.77% 3.88% 3.80% 3.56%
Return on average assets 1.55% 1.38% 1.31% 1.26% 1.47%
Return on average common stockholders' equity 17.75% 15.52% 14.06% 13.55% 16.39%
Efficiency ratio 40.85% 40.13% 41.66% 46.74% 34.98%
Non-interest expense to average earning assets 1.56% 1.63% 1.73% 1.90% 1.34%
CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets (3) 9.72% 9.59% 9.60% 9.93% N/A
Tier 1 capital to risk-weighted assets 9.73% 9.60% 10.58% 10.98% 11.75%
Total capital to risk-weighted assets 11.95% 11.89% 12.05% 12.49% 13.38%
Tier 1 capital to average assets 8.55% 8.83% 9.88% 10.07% 9.91%
Tangible common equity to total tangible assets (1) 8.54% 8.70% 8.86% 8.76% 8.96%
(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.
(3) Basel III final capital rules, including the new Common Equity Tier 1 Capital to Risk-Weighted Assets ratio, became effective for the Company on January 1, 2015.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
December 31, 2015 December 31, 2014 % Change
----------------- ----------------- --------
ASSETS
Cash and due from banks $46,614 $48,519 (4)%
Interest-bearing balances due from depository institutions 270,836 248,054 9%
Federal funds sold 34,785 891 3,804%
------ ---
Cash and cash equivalents 352,235 297,464 18%
Available for sale debt securities, at fair value 342,938 298,310 15%
Held to maturity debt securities (fair value of $27,910 and $29,974 at
December 31, 2015 and 2014,
respectively) 27,426 29,355 (7)%
Restricted equity securities 4,954 3,921 26%
Mortgage loans held for sale 8,249 5,984 38%
Loans 4,216,375 3,359,858 25%
Less allowance for loan losses (43,419) (35,629) 22%
------- -------
Loans, net 4,172,956 3,324,229 26%
Premises and equipment, net 19,434 7,815 149%
Goodwill and other identifiable intangible assets 15,330 -
Other assets 151,987 131,601 15%
------- -------
Total assets $5,095,509 $4,098,679 24%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing $1,053,467 $810,460 30%
Interest-bearing 3,170,421 2,587,700 23%
Total deposits 4,223,888 3,398,160 24%
Federal funds purchased 352,360 264,315 33%
Other borrowings 55,748 19,973 179%
Other liabilities 14,366 9,018 59%
------ -----
Total liabilities 4,646,362 3,691,466 26%
Stockholders' equity:
Preferred stock, Series A Senior Non-
Cumulative Perpetual, par value $0.001
(liquidation preference $1,000), net of discount; 40,000 shares authorized,
no shares issued and outstanding at December 31, 2015, and
40,000 shares issued and outstanding at December 31, 2014 - 39,958 (100)%
Preferred stock, par value $0.001 per
share; 1,000,000 authorized and
960,000 currently undesignated - - - %
Common stock, par value $0.001 per
share; 50,000,000 shares authorized;
25,972,698 shares issued and outstanding at December 31, 2015 and
24,801,518 shares issued and outstanding at December 31, 2014 26 25 4%
Additional paid-in capital 211,546 185,397 14%
Retained earnings 234,150 177,091 32%
Accumulated other comprehensive income 3,048 4,490 (32)%
Noncontrolling interest 377 252 50%
Total stockholders' equity 449,147 407,213 10%
------- -------
Total liabilities and stockholders'
equity $5,095,509 $4,098,679 24%
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
Three Months Ended December
31, Year Ended December 31,
2015 2014 2015 2014
---- ---- ---- ----
Interest income:
Interest and fees on loans $46,150 $35,902 $171,302 $136,066
Taxable securities 1,058 1,143 4,331 4,497
Nontaxable securities 875 871 3,499 3,489
Federal funds sold 46 41 127 159
Other interest and dividends 322 206 716 514
Total interest income 48,451 38,163 179,975 144,725
Interest expense:
Deposits 4,294 3,256 14,894 12,420
Borrowed funds 996 447 2,810 1,699
Total interest expense 5,290 3,703 17,704 14,119
Net interest income 43,161 34,460 162,271 130,606
Provision for loan losses 3,308 2,759 12,847 10,259
----- ----- ------ ------
Net interest income after provision for loan
losses 39,853 31,701 149,424 120,347
Non-interest income:
Service charges on deposit accounts 1,326 1,168 5,088 4,265
Mortgage banking 620 507 2,682 2,047
Securities gains - - 29 3
Increase in cash surrender value life
insurance 630 649 2,621 2,280
Other operating income 983 786 3,543 2,634
Total non-interest income 3,559 3,110 13,963 11,229
Non-interest expense:
Salaries and employee benefits 8,884 6,332 38,913 31,017
Equipment and occupancy expense 1,519 1,335 6,389 5,547
Professional services 706 558 2,607 2,435
FDIC and other regulatory assessments 733 516 2,660 2,094
Other real estate owned expense 324 528 1,227 1,533
Merger expense - - 2,100 -
Other operating expense 6,920 3,874 20,486 14,972
Total non-interest expense 19,086 13,143 74,382 57,598
Income before income tax 24,326 21,668 89,005 73,978
Provision for income tax 4,576 6,636 25,465 21,601
----- ----- ------ ------
Net income 19,750 15,032 63,540 52,377
Dividends on preferred stock 24 115 280 431
Net income available to common stockholders $19,726 $14,917 $63,260 $51,946
Basic earnings per common share $0.76 $0.60 $2.46 $2.18
Diluted earnings per common share $0.74 $0.58 $2.39 $2.09
LOANS BY TYPE (UNAUDITED)
(In thousands)
4th Quarter 2015 3rd Quarter 2015 2nd Quarter 2015 1st Quarter 2015 4th Quarter 2014
---------------- ---------------- ---------------- ---------------- ----------------
Commercial, financial and agricultural $1,760,479 $1,683,819 $1,642,182 $1,554,020 $1,504,652
Real estate - construction 243,267 232,895 219,607 219,005 208,769
Real estate - mortgage:
Owner-occupied commercial 1,014,669 978,721 930,719 869,724 793,917
1-4 family mortgage 444,134 417,012 392,245 375,770 333,455
Other mortgage 698,779 677,822 627,099 545,668 471,363
Subtotal: Real estate - mortgage 2,157,582 2,073,555 1,950,063 1,791,162 1,598,735
Consumer 55,047 53,973 51,882 43,665 47,702
------ ------ ------ ------ ------
Total loans $4,216,375 $4,044,242 $3,863,734 $3,607,852 $3,359,858
========== ========== ========== ========== ==========
SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)
(Dollars in thousands)
4th Quarter 2015 3rd Quarter 2015 2nd Quarter 2015 1st Quarter 2015 4th Quarter 2014
---------------- ---------------- ---------------- ---------------- ----------------
Allowance for loan losses:
Beginning balance $42,574 $40,020 $37,356 $35,629 $34,442
Loans charged off:
Commercial financial and agricultural 2,186 388 1,151 77 416
Real estate - construction 161 31 93 382 309
Real estate - mortgage 463 - 208 433 922
Consumer 21 126 19 5 21
Total charge offs 2,831 545 1,471 897 1,668
Recoveries:
Commercial financial and agricultural 241 13 6 19 2
Real estate - construction 61 13 65 99 37
Real estate - mortgage 65 1 2 101 46
Consumer 1 - - - 11
Total recoveries 368 27 73 219 96
Net charge-offs 2,463 518 1,398 678 1,572
Provision for loan losses 3,308 3,072 4,062 2,405 2,759
Ending balance $43,419 $42,574 $40,020 $37,356 $35,629
Allowance for loan losses to total loans 1.03% 1.05% 1.04% 1.04% 1.06%
Allowance for loan losses to total average
loans 1.05% 1.08% 1.07% 1.07% 1.10%
Net charge-offs to total average loans 0.24% 0.05% 0.15% 0.08% 0.19%
Provision for loan losses to total average
loans 0.32% 0.31% 0.44% 0.28% 0.34%
Nonperforming assets:
Nonaccrual loans $7,767 $9,850 $8,194 $8,361 $9,125
Loans 90+ days past due and
accruing 1 524 470 553 925
Other real estate owned and
repossessed assets 5,392 6,068 8,235 8,638 6,840
----- ----- ----- ----- -----
Total $13,160 $16,442 $16,899 $17,552 $16,890
Nonperforming loans to total loans 0.18% 0.26% 0.22% 0.25% 0.30%
Nonperforming assets to total assets 0.26% 0.34% 0.38% 0.40% 0.41%
Nonperforming assets to earning assets 0.26% 0.35% 0.38% 0.41% 0.42%
Reserve for loan losses to nonaccrual loans 559.02% 432.22% 488.41% 446.79% 390.45%
Restructured accruing loans $6,782 $8,266 $8,279 $8,280 $8,292
Restructured accruing loans to total loans 0.16% 0.20% 0.21% 0.23% 0.25%
TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)
(In thousands)
4th Quarter 2015 3rd Quarter 2015 2nd Quarter 2015 1st Quarter 2015 4th Quarter 2014
---------------- ---------------- ---------------- ---------------- ----------------
Beginning balance: $8,266 $8,279 $8,280 $8,992 $7,932
Additions - - - - 6,250
Net (paydowns) / advances (83) (13) (1) (381) (4,492)
Charge-offs (447) - - (331) (698)
---- --- --- ---- ----
$7,736 $8,266 $8,279 $8,280 $8,992
====== ====== ====== ====== ======
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter
2015 2015 2015 2014
2015
----
Interest income:
Interest and fees on loans $46,150 $44,401 $42,105 $38,646 $35,902
Taxable securities 1,058 1,041 1,104 1,128 1,143
Nontaxable securities 875 890 874 860 871
Federal funds sold 46 32 24 77 41
Other interest and dividends 322 168 102 72 206
Total interest income 48,451 46,532 44,209 40,783 38,163
Interest expense:
Deposits 4,294 3,818 3,512 3,270 3,256
Borrowed funds 996 852 486 476 447
Total interest expense 5,290 4,670 3,998 3,746 3,703
Net interest income 43,161 41,862 40,211 37,037 34,460
Provision for loan losses 3,308 3,072 4,062 2,405 2,759
----- ----- ----- ----- -----
Net interest income after provision for
loan losses 39,853 38,790 36,149 34,632 31,701
Non-interest income:
Service charges on deposit accounts 1,326 1,279 1,276 1,207 1,168
Mortgage banking 620 873 735 454 507
Securities gains - - - 29 -
Increase in cash surrender value life
insurance 630 683 660 648 649
Other operating income 983 987 834 739 786
Total non-interest income 3,559 3,822 3,505 3,077 3,110
Non-interest expense:
Salaries and employee benefits 8,884 10,595 10,426 9,008 6,332
Equipment and occupancy expense 1,519 1,575 1,634 1,661 1,335
Professional services 706 668 665 568 558
FDIC and other regulatory assessments 733 681 626 620 516
Other real estate owned expense 324 400 289 214 528
Merger expense - - - 2,096 -
Other operating expense 6,920 4,413 4,573 4,584 3,874
Total non-interest expense 19,086 18,332 18,213 18,751 13,142
Income before income tax 24,326 24,280 21,441 18,958 21,668
Provision for income tax 4,576 8,014 6,972 5,903 6,636
----- ----- ----- ----- -----
Net income 19,750 16,266 14,469 13,055 15,032
Dividends on preferred stock 24 33 123 100 115
Net income available to common stockholders $19,726 $16,233 $14,346 $12,955 $14,917
Basic earnings per common share $0.76 $0.63 $0.56 $0.51 $0.60
Diluted earnings per common share $0.74 $0.61 $0.54 $0.49 $0.58
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
4th Quarter 2015 3rd Quarter 2015 2nd Quarter 2015 1st Quarter 2015 4th Quarter 2014
---------------- ---------------- ---------------- ---------------- ----------------
Average Balance Yield / Average Balance Yield / Average Balance Yield / Average Balance Yield / Average Balance Yield /
Rate Rate Rate Rate Rate
--------------- -------- --------------- -------- --------------- -------- --------------- -------- --------------- --------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)
Taxable $4,113,044 4.44% $3,915,778 4.48% $3,731,699 4.51% $3,492,363 4.47% $3,215,400 4.41%
Tax-exempt (2) 9,639 4.98 9,802 4.98 10,005 5.00 10,180 5.03 10,367 4.98
Mortgage loans held for sale 4,362 4.27 7,714 4.32 12,718 2.21 6,884 2.12 3,410 6.05
Debt securities:
Taxable 193,982 2.18 189,941 2.19 193,848 2.28 198,104 2.28 195,533 2.32
Tax-exempt (2) 139,435 3.88 139,543 3.95 136,104 3.93 129,525 4.02 127,909 4.19
------- ---- ------- ---- ------- ---- ------- ---- ------- ----
Total securities (3) 333,417 2.89 329,484 2.94 329,952 2.96 327,629 2.97 323,442 3.06
Federal funds sold 33,255 0.55 24,860 0.51 26,638 0.36 39,438 0.27 68,640 0.24
Restricted equity securities 4,954 4.24 4,954 4.16 4,953 3.16 4,354 3.63 3,418 3.95
Interest-bearing balances
with banks 366,771 0.29 168,548 0.27 97,482 0.26 119,195 0.28 273,496 0.26
Total interest-earning assets 4,865,442 3.99% 4,461,140 4.18% 4,213,447 4.26% 4,000,043 4.18% 3,898,173 3.94%
Non-interest-earning assets:
Cash and due from banks 62,037 63,259 58,347 61,911 58,973
Net premises and equipment 19,609 18,961 16,323 13,847 8,315
Allowance for loan losses,
accrued interest and
other assets 124,241 127,778 129,233 117,612 101,831
------- ------- ------- ------- -------
Total assets $5,071,329 $4,671,136 $4,417,350 $4,193,413 $4,067,292
========== ========== ========== ========== ==========
Interest-bearing liabilities:
Interest-bearing deposits:
Checking $611,521 0.30% $593,550 0.28% $579,650 0.27% $553,569 0.26% $511,451 0.26%
Savings 39,590 0.29 37,281 0.30 37,697 0.28 36,128 0.28 28,806 0.29
Money market 2,048,453 0.49 1,817,997 0.47 1,653,708 0.45 1,618,715 0.44 1,645,533 0.45
Time deposits 503,217 1.00 485,137 0.99 480,140 1.05 446,084 1.05 395,598 1.03
Federal funds purchased 295,530 0.37 246,168 0.31 275,888 0.29 270,549 0.28 231,135 0.28
Other borrowings 55,805 5.11 50,509 5.18 21,238 5.40 20,455 5.65 19,969 5.62
Total interest-bearing
liabilities 3,554,116 0.59% 3,230,642 0.57% 3,048,321 0.53% 2,925,500 0.52% 2,832,492 0.52%
Non-interest-bearing liabilities:
Non-interest-bearing
demand 1,062,795 988,756 908,020 813,340 823,738
Other liabilities 13,469 23,738 11,793 6,745 9,969
Stockholders' equity 436,928 424,113 444,302 422,847 395,981
Unrealized gains on securities
and
derivatives 4,021 3,911 4,914 4,981 5,112
Total liabilities and
stockholders' equity $5,071,329 $4,671,136 $4,417,350 $4,193,413 $4,067,292
========== ========== ========== ========== ==========
Net interest spread 3.40% 3.61% 3.73% 3.66% 3.42%
Net interest margin 3.56% 3.77% 3.88% 3.80% 3.56%
(1) Average loans include loans on which the accrual of interest has been discontinued.
(2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 35%.
(3) Unrealized gains on available-for-sale debt securities are excluded from the yield calculation.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/servisfirst-bancshares-inc-announces-results-for-fourth-quarter-of-2015-300209148.html
SOURCE ServisFirst Bancshares, Inc.
