EXHIBIT 99.1
ServisFirst Bancshares, Inc. Announces Results For Second Quarter of 2021
BIRMINGHAM, Ala., July 19, 2021 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended June 30, 2021.
Second Quarter 2021 Highlights:
Tom Broughton, Chairman, President and CEO, said, “Strong loan growth and a continued robust loan pipeline are evidence that we are well positioned to meet the financial needs of our customers and prospects as they return to a more normal operating environment.”
Bud Foshee, CFO, said, “Our credit quality and low expense structure has weathered the pandemic and we remain optimistic about the future.”
| FINANCIAL SUMMARY (UNAUDITED) | |||||||||||||||||||||
| (in Thousands except share and per share amounts) | |||||||||||||||||||||
| Period Ending June 30, 2021 | Period Ending March 31, 2021 | % Change From Period Ending March 31, 2021 to Period Ending June 30, 2021 | Period Ending June 30, 2020 | % Change From Period Ending June 30, 2020 to Period Ending June 30, 2021 | |||||||||||||||||
| QUARTERLY OPERATING RESULTS | |||||||||||||||||||||
| Net Income | $ | 50,027 | $ | 51,455 | (3) | % | $ | 40,448 | 24 | % | |||||||||||
| Net Income Available to Common Stockholders | $ | 49,996 | $ | 51,455 | (3) | % | $ | 40,417 | 24 | % | |||||||||||
| Diluted Earnings Per Share | $ | 0.92 | $ | 0.95 | (3) | % | $ | 0.75 | 23 | % | |||||||||||
| Return on Average Assets | 1.56 | % | 1.72 | % | 1.55 | % | |||||||||||||||
| Return on Average Common Stockholders' Equity | 18.98 | % | 19.83 | % | 18.40 | % | |||||||||||||||
| Average Diluted Shares Outstanding | 54,460,230 | 54,381,991 | 54,194,506 | ||||||||||||||||||
| YEAR-TO-DATE OPERATING RESULTS | |||||||||||||||||||||
| Net Income | $ | 101,482 | $ | 75,226 | 35 | % | |||||||||||||||
| Net Income Available to Common Stockholders | $ | 101,451 | $ | 75,195 | 35 | % | |||||||||||||||
| Diluted Earnings Per Share | $ | 1.86 | $ | 1.39 | 34 | % | |||||||||||||||
| Return on Average Assets | 1.63 | % | 1.54 | % | |||||||||||||||||
| Return on Average Common Stockholders' Equity | 19.73 | % | 17.31 | % | |||||||||||||||||
| Average Diluted Shares Outstanding | 54,421,327 | 54,180,960 | |||||||||||||||||||
| BALANCE SHEET | |||||||||||||||||||||
| Total Assets | $ | 13,207,319 | $ | 12,647,374 | 4 | % | $ | 11,012,195 | 20 | % | |||||||||||
| Loans | 8,649,694 | 8,504,980 | 2 | % | 8,315,375 | 4 | % | ||||||||||||||
| Non-interest-bearing Demand Deposits | 3,296,429 | 3,044,611 | 8 | % | 2,678,893 | 23 | % | ||||||||||||||
| Total Deposits | 10,958,236 | 10,577,610 | 4 | % | 9,342,918 | 17 | % | ||||||||||||||
| Stockholders' Equity | 1,073,284 | 1,030,485 | 4 | % | 914,588 | 17 | % | ||||||||||||||
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $50.0 million for the quarter ended June 30, 2021, compared to net income and net income available to common stockholders of $40.4 million for the same quarter in 2020. Basic and diluted earnings per common share were $0.92 for the second quarter of 2021, compared to $0.75, for the second quarter of 2020.
Annualized return on average assets was 1.56% and annualized return on average common stockholders’ equity was 18.98% for the second quarter of 2021, compared to 1.55% and 18.40%, respectively, for the second quarter of 2020.
Net interest income was $94.7 million for the second quarter of 2021, compared to $92.4 million for the first quarter of 2021 and $83.2 million for the second quarter of 2020. The net interest margin in the second quarter of 2021 was 3.06% compared to 3.20% in the first quarter of 2021 and 3.32% in the second quarter of 2020. Accretion of net fees on PPP loans of $8.0 million during the second quarter of 2021 contributed 37 basis points of the loan yield, compared to $9.1 million of PPP loan fee accretion during the first quarter of 2021, or 43 basis points of the loan yield.
Average loans for the second quarter of 2021 were $8.64 billion, an increase of $132.4 million, or 6% annualized, with average loans of $8.51 billion for the first quarter of 2021, and an increase of $311.3 million, or 4%, with average loans of $8.33 billion for the second quarter of 2020. Origination of round-two PPP loans during the second quarter of 2021 totaled $28.0 million while forgiveness of round-one PPP loans during the second quarter of 2021 totaled $400.6 million.
Average total deposits for the second quarter of 2021 were $10.73 billion, an increase of $554.8 million, or 22% annualized, with average total deposits of $10.18 billion for the first quarter of 2021, and an increase of $1.86 billion, or 21%, with average total deposits of $8.87 billion for the second quarter of 2020.
Non-performing assets to total assets were 0.15% for the second quarter of 2021, a decrease of one basis point compared to 0.16% for the first quarter of 2021 and a decrease of 11 basis points compared to 0.26% for the second quarter of 2020. Annualized net recoveries to average loans were 0.01% for the second quarter of 2021, compared to annualized net charge-offs of 0.02% and 0.20% for the first quarter of 2021 and second quarter of 2020, respectively. The allowance for credit losses for the quarters ending June 30, 2021, March 31, 2021 and December 31, 2020 were calculated under the CECL methodology and as a percentage of total loans were 1.21%, 1.12% and 1.04%, respectively. Other quarter-end periods presented for the allowance for loan losses were not restated for CECL adoption and were calculated under the incurred loss methodology. The allowance for loan losses as a percentage of total loans was 1.10% at June 30, 2020. Excluding PPP loans, for all periods discussed, the allowance for credit losses as a percentage of total loans under the CECL methodology at June 30, 2021 and March 31, 2021 was 1.30% and 1.26%, respectively, compared to 1.26% at June 30, 2020, under the incurred loss model. We recorded a $9.7 million provision for credit losses in the second quarter of 2021 compared to $7.5 million in the first quarter of 2021 and $10.3 million in the second quarter of 2020. The $2.2 million linked-quarter increase in provision for credit losses is primarily due to loan growth and qualitative factors reflecting economic uncertainty related to the termination of the PPP.
Non-interest income for the second quarter of 2021 increased $2.6 million, or 37%, to $9.6 million from $7.0 million in the second quarter of 2020. Mortgage banking revenue increased $592,000, or 28%, to $2.7 million from the second quarter of 2020 to the second quarter of 2021. Margin pricing on mortgage loans was increased in the third quarter of 2020, increasing the per-loan revenue by approximately 18%. Net credit card revenue increased $514,000, or 37%, to $1.9 million during the second quarter of 2021, compared to $1.4 million during the second quarter of 2020. The number of credit card accounts increased approximately 36% and the aggregate amount of spend on all credit card accounts increased 47% during the second quarter of 2021 compared to the second quarter of 2020. Cash surrender value of life insurance increased $219,000, or 15%, to $1.7 million during the second quarter of 2021, compared to $1.5 million during the second quarter of 2020. Other income for the second quarter of 2021 increased $536,000, or 222%, to $777,000 from $241,000 in the second quarter of 2020. We wrote down the value of our interest rate cap by $252,000 during the second quarter of 2020 through other income. Merchant service revenue increased from $134,000 during the second quarter of 2020 to $289,000, or 15%, during the second quarter of 2021.
Non-interest expense for the second quarter of 2021 increased $2.5 million, or 9%, to $31.3 million from $28.8 million in the second quarter of 2020, and increased $2.4 million, or 8%, on a linked quarter basis. Salary and benefit expense for the second quarter of 2021 increased $1.1 million, or 7%, to $16.9 million from $15.8 million in the second quarter of 2020, and increased $1.3 million, or 9%, on a linked quarter basis. Salary expense alone only increased by $326,000 during the second quarter of 2021 compared to the second quarter of 2020. Higher loan origination cost deferrals during the second quarter of 2020 related to origination of round-one PPP loans decreased salary and benefits expenses below what they would have otherwise been during that quarter. The number of FTE employees increased by 35 to 527 at June 30, 2021 compared to 492 at June 30, 2020, and increased by 36 from the end of the first quarter of 2021. Equipment and occupancy expense increased $410,000, or 17%, to $2.8 million in the second quarter of 2021, from $2.4 million in the second quarter of 2020, and increased $190,000 on a linked-quarter basis. Third party processing and other services expense increased $324,000, or 9%, to $3.9 million in the second quarter of 2021, from $3.6 million in the second quarter of 2020 and increased $530,000 on a linked-quarter basis. FDIC and other regulatory assessments increased $830,000 to $1.4 million in the second quarter of 2021, from $595,000 in the second quarter of 2020, and decreased $157,000, or 10%, on a linked quarter basis. Lower asset growth during the second quarter of 2020 resulted in us adjusting our accrual for assessments in that quarter. Expenses associated with other real estate owned decreased $763,000 to $540,000 in the second quarter of 2021, from $1.3 million in the second quarter of 2020, and increased $383,000 on a linked quarter basis. The second quarter 2020 amount included write-downs in value of two foreclosed properties in our Birmingham region. The linked-quarter increase was due to the write-down of one property in our Nashville region during the second quarter of 2021. Other operating expenses for the second quarter of 2021 increased $581,000, or 15%, to $4.6 million from $4.0 million in the second quarter of 2020, and decreased $79,000 on a linked-quarter basis. We increased our reserve for credit losses on unfunded loan commitments by $500,000 in the second quarter of 2021 with a charge to other operating expenses. The efficiency ratio was 30.03% during the second quarter of 2021 compared to 31.92% during the second quarter of 2020 and compared to 28.68% during the first quarter of 2021.
Income tax expense increased $2.6 million, or 24%, to $13.3 million in the second quarter of 2021, compared to $10.7 million in the second quarter of 2020. Our effective tax rate was 20.97% for the second quarter of 2021 compared to 20.95% for the second quarter of 2020. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the second quarters of 2021 and 2020 of $724,000 and $136,000, respectively.
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
This press release 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 also include total loans excluding PPP loans. We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data.
| At June 30, 2021 | At March 31, 2021 | At December 31, 2020 | At September 30, 2020 | At June 30, 2020 | ||||||||||||||||||
| Book value per share - GAAP | $ | 19.80 | $ | 19.03 | $ | 18.41 | $ | 17.61 | $ | 16.98 | ||||||||||||
| Total common stockholders' equity - GAAP | 1,073,284 | 1,030,485 | 992,852 | 949,589 | 914,588 | |||||||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Adjusted for goodwill and core deposit intangible asset | 13,773 | 13,841 | 13,908 | 13,976 | 14,043 | |||||||||||||||||
| Tangible common stockholders' equity - non-GAAP | $ | 1,059,511 | $ | 1,016,644 | $ | 978,944 | $ | 935,613 | $ | 900,545 | ||||||||||||
| Tangible book value per share - non-GAAP | $ | 19.55 | $ | 18.78 | $ | 18.15 | $ | 17.35 | $ | 16.72 | ||||||||||||
| Stockholders' equity to total assets - GAAP | 8.13 | % | 8.15 | % | 8.32 | % | 8.33 | % | 8.31 | % | ||||||||||||
| Total assets - GAAP | $ | 13,207,319 | $ | 12,647,374 | $ | 11,932,654 | $ | 11,394,874 | $ | 11,012,195 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Adjusted for goodwill and core deposit intangible asset | 13,773 | 13,841 | 13,908 | 13,976 | 14,043 | |||||||||||||||||
| Total tangible assets - non-GAAP | $ | 13,193,546 | $ | 12,633,533 | $ | 11,918,746 | $ | 11,380,898 | $ | 10,998,152 | ||||||||||||
| Tangible common equity to total tangible assets - non-GAAP | 8.03 | % | 8.05 | % | 8.21 | % | 8.22 | % | 8.19 | % | ||||||||||||
| Total loans - GAAP | $ | 8,649,694 | $ | 8,504,980 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Adjusted to exclude PPP loans | 595,017 | 967,641 | ||||||||||||||||||||
| Loans, excluding PPP loans - non-GAAP | $ | 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, Mobile, Montgomery and Dothan, Alabama, Northwest Florida, West Central Florida, Nashville, Tennessee, Atlanta, Georgia, and Charleston, South Carolina.
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; 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, including but not limited to, the restaurant, hospitality and retail sectors; 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, 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) | |||||||||||||||||||||
| 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | 2nd Quarter 2020 | |||||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||||
| Interest income | $ | 102,719 | $ | 100,396 | $ | 101,065 | $ | 96,110 | $ | 95,080 | |||||||||||
| Interest expense | 8,051 | 8,031 | 8,984 | 11,028 | 11,846 | ||||||||||||||||
| Net interest income | 94,668 | 92,365 | 92,081 | 85,082 | 83,234 | ||||||||||||||||
| Provision for credit losses | 9,652 | 7,451 | 6,283 | 12,284 | 10,283 | ||||||||||||||||
| Net interest income after provision for credit losses | 85,016 | 84,914 | 85,798 | 72,798 | 72,951 | ||||||||||||||||
| Non-interest income | 9,598 | 8,463 | 8,237 | 8,172 | 7,033 | ||||||||||||||||
| Non-interest expense | 31,309 | 28,914 | 28,202 | 26,573 | 28,816 | ||||||||||||||||
| Income before income tax | 63,305 | 64,463 | 65,833 | 54,397 | 51,168 | ||||||||||||||||
| Provision for income tax | 13,278 | 13,008 | 14,852 | 11,035 | 10,720 | ||||||||||||||||
| Net income | 50,027 | 51,455 | 50,981 | 43,362 | 40,448 | ||||||||||||||||
| Preferred stock dividends | 31 | - | 32 | - | 31 | ||||||||||||||||
| Net income available to common stockholders | $ | 49,996 | $ | 51,455 | $ | 50,949 | $ | 43,362 | $ | 40,417 | |||||||||||
| Earnings per share - basic | $ | 0.92 | $ | 0.95 | $ | 0.94 | $ | 0.80 | $ | 0.75 | |||||||||||
| Earnings per share - diluted | $ | 0.92 | $ | 0.95 | $ | 0.94 | $ | 0.80 | $ | 0.75 | |||||||||||
| Average diluted shares outstanding | 54,460,230 | 54,381,991 | 54,273,944 | 54,232,965 | 54,194,506 | ||||||||||||||||
| CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||||||||
| Total assets | $ | 13,207,319 | $ | 12,647,374 | $ | 11,932,654 | $ | 11,394,874 | $ | 11,012,195 | |||||||||||
| Loans | 8,649,694 | 8,504,980 | 8,465,688 | 8,508,544 | 8,315,375 | ||||||||||||||||
| Debt securities | 1,013,783 | 962,129 | 886,938 | 913,299 | 856,378 | ||||||||||||||||
| Non-interest-bearing demand deposits | 3,296,429 | 3,044,611 | 2,788,772 | 2,762,814 | 2,678,893 | ||||||||||||||||
| Total deposits | 10,958,236 | 10,577,610 | 9,975,724 | 9,673,783 | 9,342,918 | ||||||||||||||||
| Borrowings | 64,696 | 64,691 | 64,748 | 64,719 | 64,715 | ||||||||||||||||
| Stockholders' equity | $ | 1,073,284 | $ | 1,030,485 | $ | 992,852 | $ | 949,589 | $ | 914,588 | |||||||||||
| Shares outstanding | 54,201,204 | 54,137,650 | 53,943,751 | 53,915,245 | 53,874,276 | ||||||||||||||||
| Book value per share | $ | 19.80 | $ | 19.03 | $ | 18.41 | $ | 17.61 | $ | 16.98 | |||||||||||
| Tangible book value per share (1) | $ | 19.55 | $ | 18.78 | $ | 18.15 | $ | 17.35 | $ | 16.72 | |||||||||||
| SELECTED FINANCIAL RATIOS (Annualized) | |||||||||||||||||||||
| Net interest margin | 3.06 | % | 3.20 | % | 3.27 | % | 3.14 | % | 3.32 | % | |||||||||||
| Return on average assets | 1.56 | % | 1.72 | % | 1.74 | % | 1.54 | % | 1.55 | % | |||||||||||
| Return on average common stockholders' equity | 18.98 | % | 19.83 | % | 20.78 | % | 18.43 | % | 18.40 | % | |||||||||||
| Efficiency ratio | 30.03 | % | 28.68 | % | 28.11 | % | 28.50 | % | 31.92 | % | |||||||||||
| Non-interest expense to average earning assets | 1.01 | % | 1.00 | % | 1.00 | % | 0.98 | % | 1.15 | % | |||||||||||
| CAPITAL RATIOS (2) | |||||||||||||||||||||
| Common equity tier 1 capital to risk-weighted assets | 10.60 | % | 10.73 | % | 10.50 | % | 11.24 | % | 11.26 | % | |||||||||||
| Tier 1 capital to risk-weighted assets | 10.60 | % | 10.73 | % | 10.50 | % | 11.25 | % | 11.27 | % | |||||||||||
| Total capital to risk-weighted assets | 12.36 | % | 12.48 | % | 12.20 | % | 13.10 | % | 13.27 | % | |||||||||||
| Tier 1 capital to average assets | 8.10 | % | 8.25 | % | 8.23 | % | 8.22 | % | 8.46 | % | |||||||||||
| Tangible common equity to total tangible assets (1) | 8.03 | % | 8.05 | % | 8.22 | % | 8.22 | % | 8.19 | % | |||||||||||
| (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) | |||||||||||||||
| June 30, 2021 | June 30, 2020 | % Change | |||||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 72,599 | $ | 102,282 | (29 | ) | % | ||||||||
| Interest-bearing balances due from depository institutions | 3,100,677 | 1,444,293 | 115 | % | |||||||||||
| Federal funds sold | 7,500 | 2,352 | 219 | % | |||||||||||
| Cash and cash equivalents | 3,180,776 | 1,548,927 | 105 | % | |||||||||||
| Available for sale debt securities, at fair value | 1,013,533 | 856,128 | 18 | % | |||||||||||
| Held to maturity debt securities (fair value of $250 at June 30, 2021 and 2020) | 250 | 250 | - | ||||||||||||
| Mortgage loans held for sale | 6,147 | 14,491 | (58 | ) | % | ||||||||||
| Loans | 8,649,694 | 8,315,375 | 4 | % | |||||||||||
| Less allowance for credit losses | (104,670 | ) | (91,507 | ) | 14 | % | |||||||||
| Loans, net | 8,545,024 | 8,223,868 | 4 | % | |||||||||||
| Premises and equipment, net | 67,738 | 55,588 | 22 | % | |||||||||||
| Goodwill and other identifiable intangible assets | 13,773 | 14,043 | (2 | ) | % | ||||||||||
| Other assets | 380,078 | 298,900 | 27 | % | |||||||||||
| Total assets | $ | 13,207,319 | $ | 11,012,195 | 20 | % | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
| Liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing | $ | 3,296,429 | $ | 2,678,893 | 23 | % | |||||||||
| Interest-bearing | 7,661,807 | 6,664,025 | 15 | % | |||||||||||
| Total deposits | 10,958,236 | 9,342,918 | 17 | % | |||||||||||
| Federal funds purchased | 1,059,474 | 635,606 | 67 | % | |||||||||||
| Other borrowings | 64,696 | 64,715 | - | % | |||||||||||
| Other liabilities | 51,629 | 54,368 | (5 | ) | % | ||||||||||
| Total liabilities | 12,134,035 | 10,097,607 | 20 | % | |||||||||||
| Stockholders' equity: | |||||||||||||||
| Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at | |||||||||||||||
| June 30, 2021 and June 30, 2020 | - | - | |||||||||||||
| Common stock, par value $0.001 per share; 100,000,000 shares authorized; 54,201,204 shares | |||||||||||||||
| issued and outstanding at June 30, 2021, and 53,874,276 shares issued and outstanding | |||||||||||||||
| at June 30, 2020 | 54 | 54 | - | % | |||||||||||
| Additional paid-in capital | 225,127 | 222,437 | 1 | % | |||||||||||
| Retained earnings | 828,048 | 672,984 | 23 | % | |||||||||||
| Accumulated other comprehensive income | 19,555 | 18,611 | 5 | % | |||||||||||
| Total stockholders' equity attributable to ServisFirst Bancshares, Inc. | 1,072,784 | 914,086 | 17 | % | |||||||||||
| Noncontrolling interest | 500 | 502 | - | % | |||||||||||
| Total stockholders' equity | 1,073,284 | 914,588 | 17 | % | |||||||||||
| Total liabilities and stockholders' equity | $ | 13,207,319 | $ | 11,012,195 | 20 | % | |||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
| (In thousands except per share data) | |||||||||||||||
| Three Months Ended June, 30 | Six Months Ended June, 30 | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Interest income: | |||||||||||||||
| Interest and fees on loans | $ | 95,451 | $ | 89,383 | $ | 189,254 | $ | 178,768 | |||||||
| Taxable securities | 6,315 | 5,092 | 12,122 | 10,246 | |||||||||||
| Nontaxable securities | 86 | 211 | 193 | 444 | |||||||||||
| Federal funds sold | 4 | 34 | 7 | 311 | |||||||||||
| Other interest and dividends | 863 | 360 | 1,539 | 2,078 | |||||||||||
| Total interest income | 102,719 | 95,080 | 203,115 | 191,847 | |||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 6,836 | 10,756 | 13,717 | 27,501 | |||||||||||
| Borrowed funds | 1,215 | 1,090 | 2,365 | 3,472 | |||||||||||
| Total interest expense | 8,051 | 11,846 | 16,082 | 30,973 | |||||||||||
| Net interest income | 94,668 | 83,234 | 187,033 | 160,874 | |||||||||||
| Provision for credit losses | 9,652 | 10,283 | 17,103 | 23,867 | |||||||||||
| Net interest income after provision for credit losses | 85,016 | 72,951 | 169,930 | 137,007 | |||||||||||
| Non-interest income: | |||||||||||||||
| Service charges on deposit accounts | 1,907 | 1,823 | 3,815 | 3,739 | |||||||||||
| Mortgage banking | 2,699 | 2,107 | 5,446 | 3,178 | |||||||||||
| Credit card income | 1,912 | 1,398 | 3,104 | 3,163 | |||||||||||
| Securities gains | 620 | - | 620 | - | |||||||||||
| Increase in cash surrender value life insurance | 1,683 | 1,464 | 3,341 | 2,917 | |||||||||||
| Other operating income | 777 | 241 | 1,735 | 710 | |||||||||||
| Total non-interest income | 9,598 | 7,033 | 18,061 | 13,707 | |||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and employee benefits | 16,887 | 15,792 | 32,430 | 31,450 | |||||||||||
| Equipment and occupancy expense | 2,844 | 2,434 | 5,498 | 4,834 | |||||||||||
| Third party processing and other services | 3,946 | 3,622 | 7,362 | 7,079 | |||||||||||
| Professional services | 1,107 | 1,091 | 2,030 | 2,039 | |||||||||||
| FDIC and other regulatory assessments | 1,425 | 595 | 3,007 | 1,927 | |||||||||||
| Other real estate owned expense | 540 | 1,303 | 697 | 1,904 | |||||||||||
| Other operating expense | 4,560 | 3,979 | 9,199 | 7,503 | |||||||||||
| Total non-interest expense | 31,309 | 28,816 | 60,223 | 56,736 | |||||||||||
| Income before income tax | 63,305 | 51,168 | 127,768 | 93,978 | |||||||||||
| Provision for income tax | 13,278 | 10,720 | 26,286 | 18,752 | |||||||||||
| Net income | 50,027 | 40,448 | 101,482 | 75,226 | |||||||||||
| Dividends on preferred stock | 31 | 31 | $ | 31 | $ | 31 | |||||||||
| Net income available to common stockholders | $ | 49,996 | $ | 40,417 | $ | 101,451 | $ | 75,195 | |||||||
| Basic earnings per common share | $ | 0.92 | $ | 0.75 | $ | 1.87 | $ | 1.40 | |||||||
| Diluted earnings per common share | $ | 0.92 | $ | 0.75 | $ | 1.86 | $ | 1.39 | |||||||
| LOANS BY TYPE (UNAUDITED) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | 2nd Quarter 2020 | ||||||||||||
| Commercial, financial and agricultural | $ | 3,105,243 | $ | 3,323,093 | $ | 3,295,900 | $ | 3,466,189 | $ | 3,498,627 | ||||||
| Real estate - construction | 782,305 | 666,592 | 593,614 | 530,919 | 544,586 | |||||||||||
| Real estate - mortgage: | ||||||||||||||||
| Owner-occupied commercial | 1,726,888 | 1,698,695 | 1,693,428 | 1,725,222 | 1,634,495 | |||||||||||
| 1-4 family mortgage | 707,546 | 685,840 | 711,692 | 671,841 | 665,883 | |||||||||||
| Other mortgage | 2,262,231 | 2,068,560 | 2,106,184 | 2,056,549 | 1,911,384 | |||||||||||
| Subtotal: Real estate - mortgage | 4,696,665 | 4,453,095 | 4,511,304 | 4,453,612 | 4,211,762 | |||||||||||
| Consumer | 65,481 | 62,200 | 64,870 | 57,834 | 60,400 | |||||||||||
| Total loans | $ | 8,649,694 | $ | 8,504,980 | $ | 8,465,688 | $ | 8,508,554 | $ | 8,315,375 | ||||||
| SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED) | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||
| 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | 2nd Quarter 2020 | |||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||
| Beginning balance | $ | 94,906 | $ | 87,942 | $ | 92,440 | $ | 91,507 | $ | 85,414 | |||||||||||||||||||||
| Impact of Adoption of ASC 326 | - | - | (2,000 | ) | - | - | |||||||||||||||||||||||||
| Loans charged off: | |||||||||||||||||||||||||||||||
| Commercial financial and agricultural | 150 | 477 | 8,792 | 11,146 | 1,358 | ||||||||||||||||||||||||||
| Real estate - construction | - | - | 202 | - | 376 | ||||||||||||||||||||||||||
| Real estate - mortgage | 59 | 12 | - | 200 | 2,520 | ||||||||||||||||||||||||||
| Consumer | 54 | 87 | 38 | 44 | 62 | ||||||||||||||||||||||||||
| Total charge offs | 263 | 576 | 9,032 | 11,390 | 4,316 | ||||||||||||||||||||||||||
| Recoveries: | |||||||||||||||||||||||||||||||
| Commercial financial and agricultural | 298 | 26 | 94 | 12 | 84 | ||||||||||||||||||||||||||
| Real estate - construction | 2 | 50 | 30 | - | 1 | ||||||||||||||||||||||||||
| Real estate - mortgage | 62 | 2 | 114 | 12 | 13 | ||||||||||||||||||||||||||
| Consumer | 13 | 11 | 13 | 15 | 28 | ||||||||||||||||||||||||||
| Total recoveries | 375 | 89 | 251 | 39 | 126 | ||||||||||||||||||||||||||
| Net charge-offs | (112 | ) | 487 | 8,781 | 11,351 | 4,190 | |||||||||||||||||||||||||
| Provision for credit losses | 9,652 | 7,451 | 6,283 | 12,284 | 10,283 | ||||||||||||||||||||||||||
| Ending balance | $ | 104,670 | $ | 94,906 | $ | 87,942 | $ | 92,440 | $ | 91,507 | |||||||||||||||||||||
| Allowance for credit losses to total loans | 1.21 | % | 1.12 | % | 1.04 | % | - | - | |||||||||||||||||||||||
| Allowance for credit losses to total average | |||||||||||||||||||||||||||||||
| loans | 1.21 | % | 1.11 | % | 1.04 | % | - | - | |||||||||||||||||||||||
| Allowance for loan losses to total loans | - | - | - | 1.09 | % | 1.10 | % | ||||||||||||||||||||||||
| Allowance for loan losses to total average | |||||||||||||||||||||||||||||||
| loans | - | - | - | 1.11 | % | 1.10 | % | ||||||||||||||||||||||||
| Net (recoveries) charge-offs to total average loans | (0.01 | ) | % | 0.02 | % | 0.41 | % | 0.54 | % | 0.20 | % | ||||||||||||||||||||
| Provision for credit losses to total average | |||||||||||||||||||||||||||||||
| loans | 0.45 | % | 0.35 | % | 0.30 | % | - | - | |||||||||||||||||||||||
| Provision for loan losses to total average | |||||||||||||||||||||||||||||||
| loans | - | - | - | 0.58 | % | 0.50 | % | ||||||||||||||||||||||||
| Nonperforming assets: | |||||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 12,301 | $ | 13,088 | $ | 13,973 | $ | 21,675 | $ | 16,881 | |||||||||||||||||||||
| Loans 90+ days past due and accruing | 4,888 | 4,804 | 4,981 | 4,898 | 5,133 | ||||||||||||||||||||||||||
| Other real estate owned and | |||||||||||||||||||||||||||||||
| repossessed assets | 2,039 | 2,067 | 6,497 | 6,976 | 6,537 | ||||||||||||||||||||||||||
| Total | $ | 19,228 | $ | 19,959 | $ | 25,451 | $ | 33,549 | $ | 28,551 | |||||||||||||||||||||
| Nonperforming loans to total loans | 0.20 | % | 0.21 | % | 0.22 | % | 0.31 | % | 0.26 | % | |||||||||||||||||||||
| Nonperforming assets to total assets | 0.15 | % | 0.16 | % | 0.21 | % | 0.29 | % | 0.26 | % | |||||||||||||||||||||
| Nonperforming assets to earning assets | 0.15 | % | 0.16 | % | 0.22 | % | 0.30 | % | 0.26 | % | |||||||||||||||||||||
| Allowance for credit losses to nonaccrual loans | 850.91 | % | 725.14 | % | 629.37 | % | - | - | |||||||||||||||||||||||
| Allowance for loan losses to nonaccrual loans | - | - | - | 426.48 | % | 542.07 | % | ||||||||||||||||||||||||
| Restructured accruing loans | $ | 441 | $ | 794 | $ | 818 | $ | 1,800 | $ | 975 | |||||||||||||||||||||
| Restructured accruing loans to total loans | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.01 | % | |||||||||||||||||||||
| TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED) | |||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||
| 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | 2nd Quarter 2020 | |||||||||||||||||||||||||||
| Beginning balance: | $ | 3,542 | $ | 1,433 | $ | 2,738 | $ | 1,568 | $ | 2,367 | |||||||||||||||||||||
| Additions | - | 2,146 | - | 1,182 | - | ||||||||||||||||||||||||||
| Net (paydowns) / advances | (624 | ) | (37 | ) | (619 | ) | (12 | ) | (12 | ) | |||||||||||||||||||||
| Charge-offs | - | - | (535 | ) | - | (412 | ) | ||||||||||||||||||||||||
| Transfer to OREO | - | - | (151 | ) | - | (375 | ) | ||||||||||||||||||||||||
| Ending balance | $ | 2,918 | $ | 3,542 | $ | 1,433 | $ | 2,738 | $ | 1,568 | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||
| (In thousands except per share data) | ||||||||||||||||||
| 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | 2nd Quarter 2020 | ||||||||||||||
| Interest income: | ||||||||||||||||||
| Interest and fees on loans | $ | 95,451 | $ | 93,803 | $ | 94,332 | $ | 89,564 | $ | 89,383 | ||||||||
| Taxable securities | 6,315 | 5,807 | 6,018 | 5,858 | 5,092 | |||||||||||||
| Nontaxable securities | 86 | 107 | 129 | 166 | 211 | |||||||||||||
| Federal funds sold | 4 | 3 | 5 | 16 | 34 | |||||||||||||
| Other interest and dividends | 863 | 676 | 581 | 506 | 360 | |||||||||||||
| Total interest income | 102,719 | 100,396 | 101,065 | 96,110 | 95,080 | |||||||||||||
| Interest expense: | ||||||||||||||||||
| Deposits | 6,836 | 6,881 | 7,853 | 9,876 | 10,756 | |||||||||||||
| Borrowed funds | 1,215 | 1,150 | 1,131 | 1,152 | 1,090 | |||||||||||||
| Total interest expense | 8,051 | 8,031 | 8,984 | 11,028 | 11,846 | |||||||||||||
| Net interest income | 94,668 | 92,365 | 92,081 | 85,082 | 83,234 | |||||||||||||
| Provision for credit losses | 9,652 | 7,451 | 6,283 | 12,284 | 10,283 | |||||||||||||
| Net interest income after provision for credit losses | 85,016 | 84,914 | 85,798 | 72,798 | 72,951 | |||||||||||||
| Non-interest income: | ||||||||||||||||||
| Service charges on deposit accounts | 1,907 | 1,908 | 1,971 | 1,818 | 1,823 | |||||||||||||
| Mortgage banking | 2,699 | 2,747 | 3,050 | 2,519 | 2,107 | |||||||||||||
| Credit card income | 1,912 | 1,192 | 913 | 1,840 | 1,398 | |||||||||||||
| Securities gains | 620 | - | - | - | - | |||||||||||||
| Increase in cash surrender value life insurance | 1,683 | 1,658 | 1,660 | 1,733 | 1,464 | |||||||||||||
| Other operating income | 777 | 958 | 643 | 262 | 241 | |||||||||||||
| Total non-interest income | 9,598 | 8,463 | 8,237 | 8,172 | 7,033 | |||||||||||||
| Non-interest expense: | ||||||||||||||||||
| Salaries and employee benefits | 16,887 | 15,543 | 14,970 | 14,994 | 15,792 | |||||||||||||
| Equipment and occupancy expense | 2,844 | 2,654 | 2,680 | 2,556 | 2,434 | |||||||||||||
| Third party processing and other services | 3,946 | 3,416 | 3,418 | 3,281 | 3,622 | |||||||||||||
| Professional services | 1,107 | 923 | 1,248 | 955 | 1,091 | |||||||||||||
| FDIC and other regulatory assessments | 1,425 | 1,582 | 1,366 | 1,061 | 595 | |||||||||||||
| Other real estate owned expense | 540 | 157 | 140 | 119 | 1,303 | |||||||||||||
| Other operating expense | 4,560 | 4,639 | 4,380 | 3,607 | 3,979 | |||||||||||||
| Total non-interest expense | 31,309 | 28,914 | 28,202 | 26,573 | 28,816 | |||||||||||||
| Income before income tax | 63,305 | 64,463 | 65,833 | 54,397 | 51,168 | |||||||||||||
| Provision for income tax | 13,278 | 13,008 | 14,852 | 11,035 | 10,720 | |||||||||||||
| Net income | 50,027 | 51,455 | 50,981 | 43,362 | 40,448 | |||||||||||||
| Dividends on preferred stock | 31 | - | 32 | - | 31 | |||||||||||||
| Net income available to common stockholders | $ | 49,996 | $ | 51,455 | $ | 50,949 | $ | 43,362 | $ | 40,417 | ||||||||
| Basic earnings per common share | $ | 0.92 | $ | 0.95 | $ | 0.94 | $ | 0.80 | $ | 0.75 | ||||||||
| Diluted earnings per common share | $ | 0.92 | $ | 0.95 | $ | 0.94 | $ | 0.80 | $ | 0.75 | ||||||||
| AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||||||
| ON A FULLY TAXABLE-EQUIVALENT BASIS | ||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | 2nd Quarter 2020 | ||||||||||||||||||||||||||||||||
| 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 | $ | 8,618,139 | 4.43 | % | $ | 8,484,914 | 4.47 | % | $ | 8,435,237 | 4.43 | % | $ | 8,335,087 | 4.26 | % | $ | 8,301,775 | 4.31 | % | ||||||||||||||||
| Tax-exempt (2) | 26,854 | 4.05 | 27,592 | 4.17 | 29,393 | 4.16 | 30,068 | 4.14 | 31,929 | 4.12 | ||||||||||||||||||||||||||
| Total loans, net of | ||||||||||||||||||||||||||||||||||||
| unearned income | 8,644,993 | 4.43 | 8,512,506 | 4.47 | 8,464,630 | 4.43 | 8,365,155 | 4.26 | 8,333,704 | 4.31 | ||||||||||||||||||||||||||
| Mortgage loans held for sale | 11,470 | 1.92 | 13,601 | 1.94 | 19,459 | 1.37 | 20,053 | 1.41 | 13,278 | 2.09 | ||||||||||||||||||||||||||
| Debt securities: | ||||||||||||||||||||||||||||||||||||
| Taxable | 936,863 | 2.70 | 878,118 | 2.65 | 862,333 | 2.79 | 820,526 | 2.86 | 761,575 | 2.67 | ||||||||||||||||||||||||||
| Tax-exempt (2) | 16,872 | 2.47 | 21,084 | 2.43 | 25,542 | 2.52 | 31,880 | 2.51 | 38,201 | 2.62 | ||||||||||||||||||||||||||
| Total securities (3) | 953,735 | 2.69 | 899,202 | 2.64 | 887,875 | 2.78 | 852,406 | 2.84 | 799,776 | 2.67 | ||||||||||||||||||||||||||
| Federal funds sold | 8,224 | 0.20 | 11,935 | 0.10 | 16,306 | 0.12 | 41,884 | 0.15 | 83,274 | 0.16 | ||||||||||||||||||||||||||
| Interest-bearing balances with banks | 2,790,524 | 0.12 | 2,262,233 | 0.12 | 1,837,249 | 0.13 | 1,500,563 | 0.13 | 849,549 | 0.17 | ||||||||||||||||||||||||||
| Total interest-earning assets | $ | 12,408,946 | 3.32 | % | $ | 11,699,477 | 3.48 | % | $ | 11,225,519 | 3.58 | % | $ | 10,780,061 | 3.55 | % | $ | 10,079,581 | 3.80 | % | ||||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 85,478 | 71,166 | 91,258 | 75,065 | 76,212 | |||||||||||||||||||||||||||||||
| Net premises and equipment | 61,240 | 57,198 | 56,315 | 56,799 | 57,446 | |||||||||||||||||||||||||||||||
| Allowance for credit losses, accrued | ||||||||||||||||||||||||||||||||||||
| interest and other assets | 320,729 | 320,407 | 308,746 | 281,196 | 248,702 | |||||||||||||||||||||||||||||||
| Total assets | $ | 12,876,393 | $ | 12,148,248 | $ | 11,681,838 | $ | 11,193,121 | $ | 10,461,941 | ||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||
| Checking | $ | 1,350,098 | 0.19 | % | $ | 1,294,614 | 0.19 | % | $ | 1,197,908 | 0.23 | % | $ | 1,077,595 | 0.31 | % | $ | 992,848 | 0.35 | % | ||||||||||||||||
| Savings | 104,283 | 0.18 | 93,375 | 0.18 | 86,259 | 0.18 | 82,671 | 0.36 | 72,139 | 0.42 | ||||||||||||||||||||||||||
| Money market | 5,321,338 | 0.26 | 5,057,828 | 0.27 | 4,933,285 | 0.31 | 4,739,566 | 0.44 | 4,285,907 | 0.52 | ||||||||||||||||||||||||||
| Time deposits | 801,928 | 1.33 | 808,561 | 1.44 | 810,675 | 1.59 | 841,378 | 1.78 | 877,448 | 1.95 | ||||||||||||||||||||||||||
| Total interest-bearing deposits | 7,577,647 | 0.36 | 7,254,378 | 0.38 | 7,028,127 | 0.44 | 6,741,210 | 0.58 | 6,228,342 | 0.69 | ||||||||||||||||||||||||||
| Federal funds purchased | 970,708 | 0.22 | 849,772 | 0.22 | 752,765 | 0.22 | 682,971 | 0.22 | 572,990 | 0.22 | ||||||||||||||||||||||||||
| Other borrowings | 64,694 | 4.28 | 64,689 | 4.33 | 64,701 | 4.41 | 64,717 | 4.78 | 64,711 | 4.85 | ||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 8,613,049 | 0.37 | % | $ | 8,168,839 | 0.40 | % | $ | 7,845,593 | 0.46 | % | $ | 7,488,898 | 0.59 | % | $ | 6,866,043 | 0.69 | % | ||||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Non-interest-bearing | ||||||||||||||||||||||||||||||||||||
| demand deposits | 3,154,605 | 2,923,041 | 2,812,254 | 2,728,513 | 2,646,030 | |||||||||||||||||||||||||||||||
| Other liabilities | 52,027 | 39,442 | 48,642 | 39,537 | 69,061 | |||||||||||||||||||||||||||||||
| Stockholders' equity | 1,038,012 | 996,741 | 956,847 | 917,626 | 862,500 | |||||||||||||||||||||||||||||||
| Accumulated other comprehensive | ||||||||||||||||||||||||||||||||||||
| income | 18,700 | 20,185 | 18,502 | 18,547 | 18,307 | |||||||||||||||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||||||||||||||||||
| stockholders' equity | $ | 12,876,393 | $ | 12,148,248 | $ | 11,681,838 | $ | 11,193,121 | $ | 10,461,941 | ||||||||||||||||||||||||||
| Net interest spread | 2.95 | % | 3.08 | % | 3.12 | % | 2.96 | % | 3.11 | % | ||||||||||||||||||||||||||
| Net interest margin | 3.06 | % | 3.20 | % | 3.27 | % | 3.14 | % | 3.32 | % | ||||||||||||||||||||||||||
| (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 21%. | ||||||||||||||||||||||||||||||||||
| (3 | ) | Unrealized losses on available-for-sale debt securities are excluded from the yield calculation. | ||||||||||||||||||||||||||||||||||