ServisFirst Bancshares, Inc. Reports Record Earnings for Fourth Quarter 2009
BIRMINGHAM, Ala., Jan. 19 /PRNewswire/ -- ServisFirst Bancshares, Inc. today reported earnings for the quarter and year ended December 31, 2009.
2009 and Fourth Quarter Highlights:
-- Fourth quarter record net income of $2.5 million, a 27% increase
year/year
-- Profitable all four full years of operation
-- Deposit growth of 38% year/year
-- Achieved profitability in all four regions in the fourth quarter
Tom Broughton, President and CEO, stated, "We are pleased to report record earnings for the fourth quarter of 2009, with continued strong growth in core deposits. We continue to be pleased with our asset quality, which is significantly better than our peer group." Bud Foshee, Chief Financial Officer said, "The Company was profitable in all four regions for the fourth quarter, the first quarter all four regions have achieved this benchmark."
ABOUT SERVISFIRST:
ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst provides business and personal financial services through locations in Birmingham, Huntsville, Montgomery and Dothan, Alabama.
ServisFirst 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," "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 and so-called "bailout" 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, 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 "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 may be obtained over the internet at www.servisfirstbancshares.com or by calling (205) 949-0302.
Contact: ServisFirst Bank Bud Foshee (205) 949-0307 BFoshee@servisfirstbank.com
SERVISFIRST BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except shares and per share data)
Three Months Ended
December 31, September 30,
2009 2008 2009
(Unaudited) (Unaudited) (Unaudited)
Total interest income $ 17,190 $ 14,393 $ 16,092
Total interest expense 4,320 5,075 4,648
Net interest income before provision 12,870 9,318 11,444
Provision for loan losses 2,408 1,373 3,209
Net interest income after provisions
for loan losses 10,462 7,945 8,235
Total noninterest income 1,244 792 967
Salaries and employee benefits 3,227 2,642 3,398
Other noninterest expense 4,616 3,113 3,574
Total noninterest expense 7,843 5,755 6,972
Income before taxes 3,863 2,982 2,230
Income taxes 1,367 1,021 622
Net income $ 2,496 $ 1,961 $ 1,608
Basic earnings per share $ 0.45 $ 0.38 $ 0.29
Diluted earnings per share $ 0.43 $ 0.36 $ 0.28
Average basic shares 5,513,482 5,116,314 5,513,482
Average fully diluted shares 5,828,763 5,391,259 5,821,331
Year Ended December 31,
2009 2008
(Unaudited) (Audited)
Total interest income $ 62,197 $ 55,450
Total interest expense 18,337 20,474
Net interest income before provision 43,860 34,976
Provision for loan losses 10,685 6,274
Net interest income after provisions for loan
losses 33,175 28,702
Total noninterest income 4,413 2,704
Salaries and employee benefits 13,581 10,552
Other noninterest expense 14,549 10,024
Total noninterest expense 28,130 20,576
Income before taxes 9,458 10,830
Income taxes 3,075 3,825
Net income $ 6,383 $ 7,005
Basic earnings per share $ 1.16 $ 1.37
Diluted earnings per share $ 1.08 $ 1.31
Average basic shares 5,485,972 5,114,194
Average fully diluted shares 5,912,861 5,338,883
SERVISFIRST BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, 2009 December 31, 2008
(Unaudited) (Audited)
ASSETS
Cash and due from banks $ 75,526 $ 53,618
Investment securities 256,098 102,339
Restricted equity securities 3,241 2,659
Federal funds sold and other investments 680 19,300
Mortgage loans held for sale 6,202 3,320
Loans 1,203,584 968,233
Reserve for loan losses (14,736) (10,602)
Net loans 1,188,848 957,631
Foreclosed real estate 12,525 10,473
Other assets 30,349 12,932
Total assets $ 1,573,469 $ 1,162,272
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
Noninterest-bearing $ 211,348 $ 121,459
Interest-bearing 1,221,048 915,860
Total deposits 1,432,396 1,037,319
Borrowings 40,150 35,087
Interest payable 1,026 1,280
Other liabilities 1,770 1,803
Total liabilities 1,475,342 1,075,489
Stockholders' equity 98,127 86,783
Total liabilities and stockholders'
equity $ 1,573,469 $ 1,162,272
SERVISFIRST BANCSHARES, INC.
Key Ratios
Three Months Ended
December 31, September 30,
2009 2008 2009
(Unaudited) (Unaudited) (Unaudited)
Return on average assets 0.62% 0.70% 0.45%
Return on average equity 10.10% 8.50% 6.75%
Net interest margin (fully tax
equivalent) 3.33% 3.50% 3.36%
Efficiency ratio 55.57% 56.92% 56.18%
Year Ended December 31,
2009 2008
(Unaudited) (Audited)
Return on average assets 0.46% 0.71%
Return on average equity 6.87% 9.28%
Net interest margin (fully tax equivalent) 3.31% 3.70%
Efficiency ratio 58.27% 54.61%
December 31, 2009 December 31, 2008 September 30, 2009
(Unaudited) (Audited) (Unaudited)
Book value per share $ 17.80 $ 16.15 $ 17.68
Tangible book value
per share $ 17.80 $ 16.15 $ 17.68
% of reserve for loan
losses to total loans 1.22% 1.09% 1.26%
Nonperforming assets
to total loans plus
foreclosed real
estate 2.03% 2.06% 2.51%
SOURCE ServisFirst Bancshares, Inc.
Released January 19, 2010