Press Releases

ServisFirst Bancshares, Inc. Announces Results For Third Quarter of 2015

BIRMINGHAM, Ala., Oct. 19, 2015 /PRNewswire/ -- ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the quarter and nine months ended September 30, 2015.

Third Quarter 2015 Highlights:

  • Net income increased 16% year over year
  • Diluted earnings per share of $0.61 for the quarter, a 13% increase year over year
  • Third quarter annualized loan and deposit growth of 19% and 34%, respectively, on a linked quarter basis
  • Added five new producers in the third quarter for a total of 117 at the end of the quarter, a 29% increase from the end of 2014

Tom Broughton, President and CEO, said, "We are pleased to report strong growth in loans, deposits and net income for the third quarter of 2015 with continued strong credit quality."  Bud Foshee, CFO, stated, "We are pleased with the consistent growth in net interest income and consistent loan yields despite the flat interest rate environment."

FINANCIAL SUMMARY (UNAUDITED)













(in Thousands except share and per share amounts)


































Period Ending
September 30,
2015


Period Ending
June 30,
2015


% Change
From Period
Ending June
30, 2015 to
Period Ending
September 30,
2015


Period Ending
September 30,
2014


% Change
From Period
Ending September
30, 2014 to
Period Ending
September 30,
2015

QUARTERLY OPERATING RESULTS


















Net Income

$

16,266



$

14,469



12

%


$

14,002



16

%

Net Income Available to Common Stockholders

$

16,233



$

14,346



13

%


$

13,902



17

%

Diluted Earnings Per Share

$

0.61



$

0.54



13

%


$

0.54



13

%

Return on Average Assets


1.38

%



1.31

%






1.45

%




Return on Average Common Stockholders' Equity


15.52

%



14.06

%






15.89

%




Average Diluted Shares Outstanding


26,506,334




26,426,036







25,726,313


























Core Net Income*

$

16,266



$

14,469



12

%


$

14,002



16

%

Core Net Income Available to Common Stockholders*

$

16,233



$

14,346



13

%


$

13,902



17

%

Core Diluted Earnings Per Share*

$

0.61



$

0.54



13

%


$

0.54



13

%

Core Return on Average Assets*


1.38

%



1.31

%






1.45

%




Core Return on Average Common Stockholders' Equity*


15.52

%



14.06

%






15.89

%






















YEAR-TO-DATE OPERATING RESULTS


















Net Income

$

43,790










$

37,345



17

%

Net Income Available to Common Stockholders

$

43,534










$

37,029



18

%

Diluted Earnings Per Share

$

1.65










$

1.51



9

%

Return on Average Assets


1.32

%










1.37

%




Return on Average Common Stockholders' Equity


14.40

%










16.17

%




Average Diluted Shares Outstanding


26,391,100











24,598,250























Core Net Income*

$

45,557










$

38,957



17

%

Core Net Income Available to Common Stockholders*

$

45,301










$

38,641



17

%

Core Diluted Earnings Per Share*

$

1.72










$

1.57



9

%

Core Return on Average Assets*


1.37

%










1.43

%




Core Return on Average Common Stockholders' Equity*


14.99

%










16.88

%






















BALANCE SHEET


















Total Assets

$

4,772,601



$

4,492,539



6

%


$

3,952,799



21

%

Loans


4,044,242




3,863,734



5

%



3,159,772



28

%

Non-interest-bearing Demand Deposits


1,029,354




926,577



11

%



794,553



30

%

Total Deposits


4,044,634




3,729,132



8

%



3,352,766



21

%

Stockholders' Equity


431,194




454,487



(5)

%



393,136



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 $16.3 million and net income available to common stockholders of $16.2 million for the quarter ended September 30, 2015, compared to net income of $14.0 million and net income available to common stockholders of $13.9 million for the same quarter in 2014.  Basic and diluted earnings per common share were $0.63 and $0.61, respectively, for the third quarter of 2015, compared to $0.56 and $0.54, respectively, for the third quarter of 2014.

Return on average assets was 1.38% and return on average common stockholders' equity was 15.52% for the third quarter of 2015, compared to 1.45% and 15.89%, respectively, for the third quarter of 2014.

Net interest income was $41.9 million for the third quarter of 2015, compared to $40.2 million for the second quarter of 2015 and $33.3 million for the third quarter of 2014.  The net interest margin in the third quarter of 2015 was 3.77%, an 11 basis point decrease from the second quarter of 2015 and 12 basis point increase from the third quarter of 2014.  The increase in net interest income on a linked quarter basis is attributable to a $183.9 million increase in average loans outstanding and a $80.7 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 average yield on loans decreased 3 basis points to 4.48% on a linked quarter basis.  Two basis points of this decrease are attributable to a $176,000 decrease in the accretion on acquired loans.  Excluding accretion on acquired loans, the net interest margin decreased nine basis points from the second quarter to the third quarter of 2015.  Average rates paid on interest-bearing liabilities increased from 0.53% in the second quarter to 0.57% in the third quarter of 2015.  Half of this increase is attributable to the rate paid on the subordinated notes issued during the third quarter.

Average loans for the third quarter of 2015 were $3.93 billion, an increase of $183.9 million, or 5%, over average loans of $3.74 billion for the second quarter of 2015, and an increase of $832.1 million, or 27%, over average loans of $3.09 billion for the third quarter of 2014.

Average total deposits for the third quarter of 2015 were $4.17 billion, an increase of $233.8 million, or 6%, over average total deposits of $3.94 billion for the second quarter of 2015, and an increase of $769.3 million, or 23%, over average total deposits of $3.40 billion for the third quarter of 2014.

Non-performing assets to total assets were 0.34% for the third quarter of 2015, a decrease of four basis points compared to 0.38% for the second quarter of 2015 and a decrease of 27 basis points compared to 0.61% for the third quarter of 2014.  Net credit charge-offs to average loans  were 0.05%, a 10 basis point decrease compared to 0.15% for the second quarter of 2015 and a 12 basis point decrease compared to 0.17% for the third quarter of 2014.  We recorded a $3.1 million provision for loan losses in the third quarter of 2015 compared to $4.1 million in the second quarter of 2015 and $2.7 million in the third quarter of 2014.  The allowance for loan loss as a percentage of total loans was 1.05% at September 30, 2015, an increase of one basis point compared to 1.04% at June 30, 2015 and a decrease of four basis points compared to 1.09% at September 30, 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 $816,000 during the third quarter of 2015, or 27%, compared to the third quarter of 2014.  Mortgage banking revenue increased $291,000, or 50%, resulting from a 22% increase in the number of loans originated and sold, and improved pricing on loans originated.  Increases in the cash surrender value of our life insurance contracts resulted from added investments in contracts during the third quarter of 2014.

Non-interest expense for the third quarter of 2015 increased $3.0 million, or 20%, to $18.3 million from $15.3 million in the third quarter of 2014, and increased $119,000, or less than 1%, on a linked quarter basis.  Salary and benefit expense for the third quarter of 2015 increased $2.7 million, or 34%, to $10.6 million from $7.9 million in the third quarter of 2014, and increased $169,000, or 2%, 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.

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 of 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 nine month comparative periods ended September 30, 2015 and 2014 included in this press release.  Dollars are in thousands, except share and per share data.



For the Nine Months
Ended
September 30, 2015


For the Nine Months
Ended
September 30, 2014

Provision for income taxes - GAAP

$

20,889



$

14,965



Adjustments:









Adjustment for non-routine expense


829




865


Core provision for income taxes

$

21,718



$

15,830











Return on average assets - GAAP


1.32

%



1.37

%

Net income - GAAP

$

43,790



$

37,345



Adjustments:









Adjustment for non-routine expense


1,767




1,612


Core net income

$

45,557



$

38,957


Average assets

$

4,430,226



$

3,653,763


Core return on average assets


1.37

%



1.43

%










Return on average common stockholders' equity


14.40

%



16.17

%

Net income available to common stockholders - GAAP

$

43,534



$

37,029



Adjustments:









Adjustment for non-routine expense


1,767




1,612


Core net income available to common stockholders

$

45,301



$

38,641


Average common stockholders' equity

$

404,177



$

306,144


Core return on average common stockholders' equity


14.99

%



16.88

%










Earnings per share - diluted - GAAP

$

1.65



$

1.51


Weighted average shares outstanding, diluted


26,391,100




24,598,250


Core diluted earnings per share

$

1.72



$

1.57











Book value per share

$

16.65



$

14.25


Total common stockholders' equity - GAAP


431,194




353,178



Adjustments:









Adjusted for goodwill and other identifiable intangible assets


17,756




-


Tangible common stockholders' equity

$

413,438



$

353,178


Tangible book value per share

$

15.96



$

14.25











Common stockholders' equity to total assets


9.03

%



8.93

%

Total assets - GAAP

$

4,772,601



$

3,952,799



Adjustments:









Adjusted for goodwill and other identifiable intangible assets


17,756




-


Total tangible assets


4,754,845




3,952,799


Tangible common equity to total tangible assets


8.70

%



8.93

%

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 the 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 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 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)






























3rd Quarter 2015


2nd Quarter 2015


1st Quarter 2015


4th Quarter 2014


3rd Quarter 2014

CONSOLIDATED STATEMENT OF INCOME




















Interest income

$

46,532



$

44,209



$

40,783



$

38,163



$

36,857


Interest expense


4,670




3,998




3,746




3,703




3,538


Net interest income


41,862




40,211




37,037




34,460




33,319


Provision for loan losses


3,072




4,062




2,405




2,759




2,748


Net interest income after provision for loan losses


38,790




36,149




34,632




31,701




30,571


Non-interest income


3,822




3,505




3,077




3,110




3,006


Non-interest expense


18,332




18,213




18,751




13,143




15,315


Income before income tax


24,280




21,441




18,958




21,668




18,262


Provision for income tax


8,014




6,972




5,903




6,636




4,260


Net income


16,266




14,469




13,055




15,032




14,002


Preferred stock dividends


33




123




100




115




100


Net income available to common stockholders

$

16,233



$

14,346



$

12,955



$

14,917



$

13,902


Earnings per share - basic

$

0.63



$

0.56



$

0.51



$

0.60



$

0.56


Earnings per share - diluted

$

0.61



$

0.54



$

0.49



$

0.58



$

0.54


Average diluted shares outstanding


26,506,334




26,426,036




26,237,980




25,697,531




25,726,313























CONSOLIDATED BALANCE SHEET DATA




















Total assets

$

4,772,601



$

4,492,539



$

4,393,342



$

4,098,679



$

3,952,799


Loans


4,044,242




3,863,734




3,607,852




3,359,858




3,159,772


Debt securities


334,635




335,008




336,505




327,665




332,351


Non-interest-bearing demand deposits


1,029,354




926,577




866,743




810,460




794,553


Total deposits


4,044,634




3,729,132




3,638,763




3,398,160




3,352,766


Borrowings


55,728




21,016




21,278




19,973




19,965


Stockholders' equity

$

431,194



$

454,487



$

441,458



$

407,213



$

393,136























Shares outstanding


25,903,698




25,826,198




25,653,610




24,801,518




24,791,436


Book value per share

$

16.65



$

16.05



$

15.65



$

14.81



$

14.25


Tangible book value per share (1)

$

15.96



$

15.35



$

14.95



$

14.81



$

14.25























SELECTED FINANCIAL RATIOS




















Net interest margin


3.77

%



3.88

%



3.80

%



3.56

%



3.65

%

Return on average assets


1.38

%



1.31

%



1.26

%



1.47

%



1.45

%

Return on average common stockholders' equity


15.52

%



14.06

%



13.55

%



16.39

%



15.89

%

Efficiency ratio


40.13

%



41.66

%



46.74

%



34.98

%



42.16

%

Non-interest expense to average earning assets


1.63

%



1.73

%



1.90

%



1.34

%



1.66

%






















CAPITAL RATIOS (2)




















Common equity tier 1 capital to risk-weighted assets (3)


9.59

%



9.60

%



9.93

%



N/A




N/A


Tier 1 capital to risk-weighted assets


9.60

%



10.58

%



10.98

%



11.75

%



12.02

%

Total capital to risk-weighted assets


11.89

%



12.05

%



12.49

%



13.38

%



13.70

%

Tier 1 capital to average assets


8.83

%



9.88

%



10.07

%



9.91

%



10.18

%

Tangible common equity to total tangible assets (1)


8.70

%



8.86

%



8.76

%



8.96

%



8.93

%






















(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)





















September 30,
2015


September 30,
2014


% Change

ASSETS









Cash and due from banks

$

50,481


$

59,483


(15)

%

Interest-bearing balances due from depository institutions


165,982



277,984


(40)

%

Federal funds sold


26,229



6,566


299

%


Cash and cash equivalents


242,692



344,033


(29)

%

Available for sale debt securities, at fair value


306,666



302,303


1

%

Held to maturity debt securities (fair value of $28,511 and $30,248 at










September 30, 2015 and 2014, respectively)


27,969



30,048


(7)

%

Restricted equity securities


4,954



3,418


45

%

Mortgage loans held for sale


5,387



9,037


(40)

%

Loans


4,044,242



3,159,772


28

%

Less allowance for loan losses


(42,574)



(34,442)


24

%


Loans, net


4,001,668



3,125,330


28

%

Premises and equipment, net


18,989



7,958


139

%

Goodwill and other identifiable intangible assets


17,756



-




Other assets


146,520



130,672


12

%


Total assets

$

4,772,601


$

3,952,799


21

%

LIABILITIES AND STOCKHOLDERS' EQUITY









Liabilities:









Deposits:










Non-interest-bearing

$

1,029,354


$

794,553


30

%


Interest-bearing


3,015,280



2,558,213


18

%



Total deposits


4,044,634



3,352,766


21

%

Federal funds purchased


228,415



178,230


28

%

Other borrowings


55,728



19,965


179

%

Other liabilities


12,630



8,702


45

%


Total liabilities


4,341,407



3,559,663


22

%

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 September 30, 2015, and











40,000 shares issued and outstanding at September 30, 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 $0.0003 per share; 50,000,000 shares authorized;











25,903,698 shares issued and outstanding at September 30, 2015 and











24,791,436 shares issued and outstanding at September 30, 2014


26



25


4

%


Additional paid-in capital


210,331



184,797


14

%


Retained earnings


215,982



163,414


32

%


Accumulated other comprehensive income


4,478



4,690


(5)

%


Noncontrolling interest


377



252


50

%



Total stockholders' equity


431,194



393,136


10

%


Total liabilities and stockholders' equity

$

4,772,601


$

3,952,799


21

%

 

 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)






(In thousands except per share data)

















Three Months Ended
September 30,


Nine Months Ended
September 30,




2015


2014


2015


2014

Interest income:













Interest and fees on loans

$

44,401


$

34,662


$

125,152


$

100,164


Taxable securities


1,041



1,131



3,273



3,354


Nontaxable securities


890



877



2,624



2,618


Federal funds sold


32



38



81



118


Other interest and dividends


168



149



394



308


   Total interest income


46,532



36,857



131,524



106,562

Interest expense:













Deposits


3,818



3,123



10,600



9,164


Borrowed funds


852



415



1,814



1,252


   Total interest expense


4,670



3,538



12,414



10,416


   Net interest income


41,862



33,319



119,110



96,146

Provision for loan losses


3,072



2,748



9,539



7,500


   Net interest income after provision for loan losses


38,790



30,571



109,571



88,646

Non-interest income:













Service charges on deposit accounts


1,279



1,172



3,762



3,097


Mortgage banking


873



582



2,062



1,540


Securities gains


-



3



29



3


Increase in cash surrender value life insurance


683



549



1,991



1,631


Other operating income


987



700



2,560



1,848


   Total non-interest income


3,822



3,006



10,404



8,119

Non-interest expense:













Salaries and employee benefits


10,595



7,890



30,029



24,685


Equipment and occupancy expense


1,575



1,437



4,870



4,212


Professional services


668



829



1,901



1,877


FDIC and other regulatory assessments


681



533



1,927



1,578


Other real estate owned expense


400



220



903



1,005


Merger expense


-



-



2,100



-


Other operating expense


4,413



4,406



13,566



11,098


   Total non-interest expense


18,332



15,315



55,296



44,455


   Income before income tax


24,280



18,262



64,679



52,310

Provision for income tax


8,014



4,260



20,889



14,965


         Net income


16,266



14,002



43,790



37,345


Dividends on preferred stock


33



100



256



316


         Net income available to common stockholders

$

16,233


$

13,902


$

43,534


$

37,029

Basic earnings per common share

$

0.63


$

0.56


$

1.70


$

1.57

Diluted earnings per common share

$

0.61


$

0.54


$

1.65


$

1.51

 

 


LOANS BY TYPE (UNAUDITED)











(In thousands)































3rd Quarter
2015


2nd Quarter
2015


1st Quarter
2015


4th Quarter
2014


3rd Quarter
2014

Commercial, financial and agricultural

$

1,671,014


$

1,630,134


$

1,543,531


$

1,495,092


$

1,382,607

Real estate - construction


232,895



219,607



219,005



208,769



194,506

Real estate - mortgage:
















Owner-occupied commercial


978,721



930,719



869,724



793,917



773,432


1-4 family mortgage


417,012



392,245



375,770



333,455



314,778


Other mortgage


677,822



627,099



545,668



471,363



443,245

Subtotal: Real estate - mortgage


2,073,555



1,950,063



1,791,162



1,598,735



1,531,455

Consumer


66,778



63,930



54,154



57,262



51,204

Total loans

$

4,044,242


$

3,863,734


$

3,607,852


$

3,359,858


$

3,159,772

 

 


SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED)














(Dollars in thousands)









































3rd Quarter
2015


2nd Quarter
2015


1st Quarter
2015


4th Quarter
2014


3rd Quarter
2014

Allowance for loan losses:




















Beginning balance

$

40,020



$

37,356



$

35,629



$

34,442



$

32,984


Loans charged off:





















Commercial financial and agricultural


388




1,151




77




416




531



Real estate - construction


31




93




382




309




610



Real estate - mortgage


-




208




433




922




149



Consumer


126




19




5




21




131




Total charge offs


545




1,471




897




1,668




1,421


Recoveries:





















Commercial financial and agricultural


13




6




19




2




-



Real estate - construction


13




65




99




37




97



Real estate - mortgage


1




2




101




46




14



Consumer



-




-




-




11




20




Total recoveries


27




73




219




96




131



Net charge-offs


518




1,398




678




1,572




1,290



Provision for loan losses


3,072




4,062




2,405




2,759




2,748



Ending balance

$

42,574



$

40,020



$

37,356



$

35,629



$

34,442



























Allowance for loan losses to total loans


1.05

%



1.04

%



1.04

%



1.06

%



1.09

%


Allowance for loan losses to total average






















loans


1.08

%



1.07

%



1.07

%



1.10

%



1.11

%


Net charge-offs to total average loans


0.05

%



0.15

%



0.08

%



0.19

%



0.17

%


Provision for loan losses to total average






















loans


0.31

%



0.44

%



0.28

%



0.34

%



0.35

%


Nonperforming assets:






















Nonaccrual loans

$

9,850



$

8,194



$

8,361



$

9,125



$

16,078




Loans 90+ days past due and accruing


524




470




553




925




1,190




Other real estate owned and






















repossessed assets


6,068




8,235




8,638




6,840




6,940



Total


$

16,442



$

16,899



$

17,552



$

16,890



$

24,208



























Nonperforming loans to total loans


0.26

%



0.22

%



0.25

%



0.30

%



0.55

%


Nonperforming assets to total assets


0.34

%



0.38

%



0.40

%



0.41

%



0.61

%


Nonperforming assets to earning assets


0.35

%



0.38

%



0.41

%



0.42

%



0.62

%


Reserve for loan losses to nonaccrual loans


432.22

%



488.41

%



446.79

%



390.45

%



214.22

%


























Restructured accruing loans

$

8,266



$

8,279



$

8,280



$

8,295



$

2,067



























Restructured accruing loans to total loans


0.20

%



0.21

%



0.23

%



0.25

%



0.07

%


























TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)













(In thousands)






















3rd Quarter
2015


2nd Quarter
2015


1st Quarter
2015


4th Quarter
2014


3rd Quarter
2014


Beginning balance:

$

8,279



$

8,280



$

8,992



$

7,932



$

9,217




Additions


-




-




-




6,250




-




Net (paydowns) / advances


(13)




(1)




(381)




(4,492)




(802)




Charge-offs


-




-




(331)




(698)




(483)







$

8,266



$

8,279



$

8,280



$

8,992



$

7,932


 

 


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)







(In thousands except per share data)
























3rd Quarter
2015


2nd Quarter
2015


1st Quarter
2015


4th Quarter
2014


3rd Quarter
2014

Interest income:
















Interest and fees on loans

$

44,401


$

42,105


$

38,646


$

35,902


$

34,662


Taxable securities


1,041



1,104



1,128



1,143



1,131


Nontaxable securities


890



874



860



871



877


Federal funds sold


32



24



77



41



38


Other interest and dividends


168



102



72



206



149


   Total interest income


46,532



44,209



40,783



38,163



36,857

Interest expense:
















Deposits


3,818



3,512



3,270



3,256



3,123


Borrowed funds


852



486



476



447



415


   Total interest expense


4,670



3,998



3,746



3,703



3,538


   Net interest income


41,862



40,211



37,037



34,460



33,319

Provision for loan losses


3,072



4,062



2,405



2,759



2,748


   Net interest income after provision for loan losses


38,790



36,149



34,632



31,701



30,571

Non-interest income:
















Service charges on deposit accounts


1,279



1,276



1,207



1,168



1,172


Mortgage banking


873



735



454



507



582


Securities gains


-



-



29



-



3


Increase in cash surrender value life insurance


683



660



648



649



549


Other operating income


987



834



739



786



700


   Total non-interest income


3,822



3,505



3,077



3,110



3,006

Non-interest expense:
















Salaries and employee benefits


10,595



10,426



9,008



6,332



7,890


Equipment and occupancy expense


1,575



1,634



1,661



1,335



1,437


Professional services


668



665



568



558



829


FDIC and other regulatory assessments


681



626



620



516



533


Other real estate owned expense


400



289



214



528



220


Merger expense


-



-



2,096



-



-


Other operating expense


4,413



4,573



4,584



3,874



4,406


   Total non-interest expense


18,332



18,213



18,751



13,142



15,315


   Income before income tax


24,280



21,441



18,958



21,668



18,262

Provision for income tax


8,014



6,972



5,903



6,636



4,260


       Net income


16,266



14,469



13,055



15,032



14,002


Dividends on preferred stock


33



123



100



115



100


         Net income available to common stockholders

$

16,233


$

14,346


$

12,955


$

14,917


$

13,902

Basic earnings per common share

$

0.63


$

0.56


$

0.51


$

0.60


$

0.56

Diluted earnings per common share

$

0.61


$

0.54


$

0.49


$

0.58


$

0.54

 

 

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)

ON A FULLY TAXABLE-EQUIVALENT BASIS

(Dollars in thousands)











































3rd Quarter 2015


2nd Quarter 2015



1st Quarter 2015


4th Quarter 2014


3rd Quarter 2014







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

$

3,915,778


4.48

%


$

3,731,699


4.51

%


$

3,492,363


4.47

%


$

3,215,400


4.41

%


$

3,081,435


4.44

%



Tax-exempt (2)


9,802


4.94




10,005


5.01




10,180


5.10




10,367


4.94




12,043


4.25



Mortgage loans held for sale


7,714


4.32




12,718


2.21




6,884


2.12




3,410


6.05




6,861


3.64



Debt securities:
































Taxable


189,941


2.19




193,848


2.28




198,104


2.28




195,533


2.32




195,220


2.31




Tax-exempt (2)


139,543


3.95




136,104


3.93




129,525


4.02




127,909


4.19




126,512


4.08





Total securities (3)


329,484


2.94




329,952


2.96




327,629


2.97




323,442


3.06




321,732


3.01



Federal funds sold


24,860


0.51




26,638


0.36




39,438


0.27




68,640


0.24




57,625


0.27



Restricted equity securities


4,954


4.16




4,953


3.16




4,354


3.63




3,418


3.95




3,418


3.83



Interest-bearing balances with banks


168,548


0.27




97,482


0.26




119,195


0.28




273,496


0.26




185,716


0.25



Total interest-earning assets


4,461,140


4.18

%



4,213,447


4.26

%



4,000,043


4.18

%



3,898,173


3.94

%



3,668,830


4.03

%

Non-interest-earning assets:































Cash and due from banks


63,259






58,347






61,911






58,973






58,340





Net premises and equipment


18,961






16,323






13,847






8,315






8,310





Allowance for loan losses,
































accrued interest and
































other assets


127,778






129,233






117,612






101,831






86,901







Total assets

$

4,671,136





$

4,417,350





$

4,193,413





$

4,067,292





$

3,822,381







































Interest-bearing liabilities:































Interest-bearing deposits:































Checking

$

593,550


0.28

%


$

579,650


0.27

%


$

553,569


0.26

%


$

511,451


0.26

%


$

484,291


0.26

%


Savings


37,281


0.30




37,697


0.28




36,128


0.28




28,806


0.29




26,584


0.28



Money market


1,817,997


0.47




1,653,708


0.45




1,618,715


0.44




1,645,533


0.45




1,555,091


0.44



Time deposits


485,137


0.99




480,140


1.05




446,084


1.05




395,598


1.03




394,158


1.05



Federal funds purchased


246,168


0.31




275,888


0.29




270,549


0.28




231,135


0.28




187,629


0.28



Other borrowings


50,509


5.18




21,238


5.40




20,455


5.65




19,969


5.62




19,961


5.62



Total interest-bearing liabilities


3,230,642


0.57

%



3,048,321


0.53

%



2,925,500


0.52

%



2,832,492


0.52

%



2,667,714


0.53

%

Non-interest-bearing liabilities:































Non-interest-bearing
































demand


988,756






908,020






813,340






823,738






751,831





Other liabilities


23,738






11,793






6,745






9,969






15,838





Stockholders' equity


424,113






444,302






422,847






395,981






382,025





Unrealized gains on securities and
































derivatives


3,911






4,914






4,981






5,112






4,973







Total liabilities and


































stockholders' equity

$

4,671,136





$

4,417,350





$

4,193,413





$

4,067,292





$

3,822,381




Net interest spread




3.61

%





3.73

%





3.66

%





3.42

%





3.50

%

Net interest margin




3.77

%





3.88

%





3.80

%





3.56

%





3.65

%




































(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-third-quarter-of-2015-300162242.html

SOURCE ServisFirst Bancshares, Inc.