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ServisFirst Bancshares, Inc. Announces Results For First Quarter of 2024

ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended March 31, 2024.

First Quarter 2024 Highlights:

  • Loans grew by 8% annualized for the first quarter of 2024.
  • Net interest margin increased to 2.66% for the first quarter of 2024 from 2.57% for the fourth quarter of 2023.
  • Credit quality continues to be strong with non-performing assets to total assets of 0.22%.
  • Deposits grew 10% year-over-year.
  • Book value per share of $27.08, up 10% from the first quarter of 2023.

Tom Broughton, Chairman, President, and CEO, said, “We hired nine new bankers during the first quarter after seven in the fourth quarter and we continue to attract the best talent in the industry in the Southeast.”

Kirk Pressley, CFO, said, “We are pleased to have stabilized our funding costs, which will continue to improve our net interest margin. Our expenses remain tightly controlled, as evidenced by our efficiency ratio, which we believe continues to be among the lowest of all commercial banks.”

FINANCIAL SUMMARY (UNAUDITED)

(in Thousands except share and per share amounts)

 

 

Period Ending

March 31, 2024

 

Period Ending

December 31,

2023

 

% Change From

Period Ending

December 31,

2023 to Period

Ending March

31, 2024

 

Period Ending

March 31, 2023

 

% Change From

Period Ending

March 31, 2023

to Period Ending

March 31, 2024

QUARTERLY OPERATING RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

50,026

 

 

$

42,074

 

 

18.9

%

 

$

57,971

 

 

(13.7

)%

Net Income Available to Common Stockholders

 

$

50,026

 

 

$

42,043

 

 

19.0

%

 

$

57,971

 

 

(13.7

)%

Diluted Earnings Per Share

 

$

0.92

 

 

$

0.77

 

 

19.4

%

 

$

1.06

 

 

(13.4

)%

Return on Average Assets

 

 

1.26

%

 

 

1.04

%

 

 

 

 

1.63

%

 

 

Return on Average Common Stockholders' Equity

 

 

13.82

%

 

 

11.78

%

 

 

 

 

17.83

%

 

 

Average Diluted Shares Outstanding

 

 

54,595,384

 

 

 

54,548,719

 

 

 

 

 

54,534,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income, net of tax*

 

$

51,373

 

 

$

49,891

 

 

3.0

%

 

$

57,971

 

 

(11.4

)%

Adjusted Net Income Available to Common

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders, net of tax*

 

$

51,373

 

 

$

49,860

 

 

3.0

%

 

$

57,971

 

 

(11.4

)%

Adjusted Diluted Earnings Per Share, net of tax*

 

$

0.94

 

 

$

0.91

 

 

2.7

%

 

$

1.06

 

 

(11.7

)%

Adjusted Return on Average Assets, net of tax*

 

 

1.29

%

 

 

1.23

%

 

 

 

 

1.63

%

 

 

Adjusted Return on Average Common

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity, net of tax*

 

 

14.19

%

 

 

13.98

%

 

 

 

 

17.83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

15,721,630

 

 

$

16,129,668

 

 

(2.5

)%

 

$

14,566,559

 

 

7.9

%

Loans

 

 

11,880,696

 

 

 

11,658,829

 

 

1.9

%

 

 

11,629,802

 

 

2.2

%

Non-interest-bearing Demand Deposits

 

 

2,627,639

 

 

 

2,643,101

 

 

(0.6

)%

 

 

2,898,736

 

 

(9.4

)%

Total Deposits

 

 

12,751,448

 

 

 

13,273,511

 

 

(3.9

)%

 

 

11,615,317

 

 

9.8

%

Stockholders' Equity

 

 

1,476,036

 

 

 

1,440,405

 

 

2.5

%

 

 

1,339,817

 

 

10.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* This press release includes certain non-GAAP financial measures: adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity, adjusted efficiency ratio, tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $50.0 million for the quarter ended March 31, 2024, compared to net income of $42.1 million and net income available to common stockholders of $42.0 million for the fourth quarter of 2023 and net income and net income available to common stockholders of $58.0 million for the first quarter of 2023. Basic and diluted earnings per common share were both $0.92 in the first quarter of 2024, compared to $0.77 for both in the fourth quarter of 2023 and $1.07 and $1.06, respectively, in the first quarter of 2023.

Annualized return on average assets was 1.26% and annualized return on average common stockholders’ equity was 13.82% for the first quarter of 2024, compared to 1.63% and 17.83%, respectively, for the first quarter of 2023.

Net interest income was $102.5 million for the first quarter of 2024, compared to $101.7 million for the fourth quarter of 2023 and $108.3 million for the first quarter of 2023. The net interest margin in the first quarter of 2024 was 2.66% compared to 2.57% in the fourth quarter of 2023 and 3.15% in the first quarter of 2023. Loan yields were 6.40% during the first quarter of 2024 compared to 6.32% during the fourth quarter of 2023 and 5.70% during the first quarter of 2023. Investment yields were 3.16% during the first quarter of 2024 compared to 3.08% during the fourth quarter of 2023 and 2.54% during the first quarter of 2023. Average interest-bearing deposit rates were 4.04% during the first quarter of 2024, compared to 4.06% during the fourth quarter of 2023 and 2.68% during the first quarter of 2023. Average federal funds purchased rates were 5.50% during first quarter of 2024, compared to 5.49% during the fourth quarter of 2023 and 4.67% during the first quarter of 2023.

Average loans for the first quarter of 2024 were $11.74 billion, an increase of $142.5 million, or 4.9% annualized, from average loans of $11.60 billion for the fourth quarter of 2023, and an increase of $89.6 million, or 0.8%, from average loans of $11.65 billion for the first quarter of 2023. Ending total loans for the first quarter of 2024 were $11.88 billion, an increase of $221.9 million, or 1.9%, from $11.66 billion for the fourth quarter of 2023, and an increase of $250.9 million, or 2.2%, from $11.63 billion for the first quarter of 2023.

Average total deposits for the first quarter of 2024 were $12.92 billion, a decrease of $0.30 billion, or 9.2% annualized, over average total deposits of $13.23 billion for the fourth quarter of 2023, and an increase of $1.42 billion, or 12.3%, from average total deposits of $11.50 billion for the first quarter of 2023. Ending total deposits for the first quarter of 2024 were $12.75 billion, a decrease of $522.1 million, or 3.9%, from $13.27 billion for the fourth quarter of 2023, and an increase of $1.1 billion, or 9.8%, from $11.62 billion for the first quarter of 2023. The decline in our deposits over the last quarter can be partly attributed to our strategic decision to move away from high-cost and non-core deposits.

Non-performing assets to total assets were 0.22% for the first quarter of 2024, compared to 0.14% for the fourth quarter of 2023 and 0.12% for the first quarter of 2023. The increase in non-performing assets to total assets can be attributed to a single relationship that moved to non-accrual status during the first quarter of 2024. This loan has been closely monitored and is well-collateralized. Annualized net charge-offs to average loans were 0.06% for the first quarter of 2024, compared to 0.09% for the fourth quarter of 2023 and 0.05% first quarter of 2023. The allowance for credit losses as a percentage of total loans at March 31, 2024, December 31, 2023, and March 31, 2023, was 1.31%, 1.32%, and 1.28%, respectively. We recorded a $4.4 million provision for credit losses in the first quarter of 2024 compared to $3.6 million in the fourth quarter of 2023, and $4.2 million in the first quarter of 2023.

Non-interest income increased $2.5 million, or 39.4%, to $8.8 million for the first quarter of 2024 from $6.3 million in the first quarter of 2023, and increased $1.4 million, or 19.4%, on a linked quarter basis. Service charges on deposit accounts increased $216,000, or 11.2%, to $2.2 million for the first quarter of 2024 from $1.9 million in the first quarter of 2023, and decreased $31,000, or 1.4%, on a linked quarter basis. Mortgage banking revenue increased $236,000, or 53.4%, to $678,000 for the first quarter of 2024 from $442,000 in the first quarter of 2023, and decreased $114,000, or 14.4%, on a linked quarter basis. Net credit card revenue increased $466,000, or 27.6%, to $2.2 million for the first quarter of 2024 from $1.7 million in the first quarter of 2023, and increased $151,000, or 7.5%, on a linked quarter basis. Bank-owned life insurance (“BOLI”) income increased $1.6 million, or 99.3%, to $3.2 million for the first quarter of 2024 from $1.6 million in the first quarter of 2023, and increased $1.6 million, or 97.1%, on a linked quarter basis. During the first quarter of 2024, we recognized $1.2 million of income attributed to a death benefit related to a former employee in our BOLI program. Other operating income decreased $36,000, or 5.7%, to $599,000 for the first quarter of 2024 from $635,000 in the first quarter of 2023, and decreased $164,000, or 21.5%, on a linked quarter basis. Merchant service revenue increased $53,000, or 11.7%, to $508,000 for the first quarter of 2024 from $455,000 in the first quarter of 2023.

Non-interest expense increased $6.6 million, or 16.7%, to $46.3 million for the first quarter of 2024 from $39.7 million in the first quarter of 2023, and decreased $12.0 million, or 20.5%, on a linked quarter basis. Salary and benefit expense increased $3.9 million, or 20.6%, to $23.0 million for the first quarter of 2024 from $19.1 million in the first quarter of 2023, and decreased $38,000, or 0.2%, on a linked quarter basis.. The number of FTE employees increased by 32, or 5.6%, to 605 at March 31, 2024 compared to 573 at March 31, 2023, and increased by 14, or 2.4%, from the end of the fourth quarter of 2023. The increase in salary and benefit expense from the first quarter of 2023 is largely due to the normalization of incentives and increased salary expenses due to an increase in FTE employees. Incentives increased approximately $2.8 million, and salaries increased approximately $1.0 million from the first quarter of 2023. Equipment and occupancy expense increased $122,000, or 3.6%, to $3.6 million for the first quarter of 2024 from $3.4 million in the first quarter of 2023, and decreased $303,000, or 7.8%, on a linked quarter basis. Third party processing and other services expense decreased $118,000, or 1.6%, to $7.2 million for the first quarter of 2024 from $7.3 million in the first quarter of 2023, and decreased $675,000, or 8.6%, on a linked quarter basis. Professional services expense decreased $190,000, or 11.5%, to $1.5 million for the first quarter of 2024 from $1.7 million in the first quarter of 2023, and increased $47,000, or 3.3%, on a linked quarter basis. FDIC and other regulatory assessments increased $2.4 million, or 157.4%, to $3.9 million for the first quarter of 2024 from $1.5 million in the first quarter of 2023, and decreased $5.6 million, or 58.9%, on a linked quarter basis. In the fourth quarter of 2023, the FDIC implemented a special assessment to recapitalize the Deposit Insurance Fund resulting in an expense of $7.2 million during the fourth quarter of 2023. The FDIC recapitalization estimate will be periodically adjusted as the FDIC sells assets, satisfies liabilities, and incurs expenses, which resulted in an additional expense of $1.8 million during the first quarter of 2024. See “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below for more discussion of these expenses. Other operating expenses increased $493,000, or 7.4%, to $7.2 million for the first quarter of 2024 from $6.7 million in the first quarter of 2023, and decreased $5.4 million, or 42.9%, on a linked quarter basis. During the fourth quarter of 2023, an incremental expense related to tax credit investments of $3.3 million, associated with the tax benefit discussed below, contributed to the increase in other operating expenses. In addition, the following items, which management viewed as unusual, infrequent, or not reflective of future normal operating expenses within the control of management, contributed to the increase in non-interest expense during the fourth quarter of 2023: the FDIC special assessment expense of $7.2 million, an EDP contract termination and related capitalized cost write-offs of $1.1 million to other operating expenses, and an adjustment to a privilege tax accrual resulting in a $2.2 million expense to other operating expenses. See “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below for more discussion of these expenses. The efficiency ratio was 43.30% during the first quarter of 2024 compared to 34.60% during the first quarter of 2023 and 55.23% during the fourth quarter of 2023. The adjusted efficiency ratio was 39.31%.

Income tax expense decreased $2.2 million, or 17.0%, to $10.6 million in the first quarter of 2024, compared to $12.8 million in the first quarter of 2023. Our effective tax rate was 17.5% for the first quarter of 2024 compared to 18.1% for the first quarter of 2023. We recognized an aggregate of $2.2 million in credits during the first quarter of 2024 related to investments in tax credit partnerships, compared to $2.7 million during the first quarter of 2023, and $6.7 million during the fourth quarter of 2023. During the fourth quarter of 2023, $4.1 million of the recognized credits were related to the incremental expense for tax credit investments discussed above. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the first quarters of 2024 and 2023 of $204,000 and $1.1 million, respectively.

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 Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia. We also operate loan production offices in Florida and Tennessee. Through the ServisFirst Bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions.

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: 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 as a result of our reclassification as a large financial institution by the FDIC; 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, the Federal Reserve policies in connection with continued inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; 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 2024, 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.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

(In thousands except share and per share data)

 

 

 

1st Quarter 2024

 

4th Quarter 2023

 

3rd Quarter 2023

 

2nd Quarter 2023

 

1st Quarter 2023

CONSOLIDATED STATEMENT OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

226,710

 

 

$

229,062

 

 

$

213,206

 

 

$

189,656

 

 

$

181,322

 

Interest expense

 

 

124,215

 

 

 

127,375

 

 

 

113,508

 

 

 

88,405

 

 

 

73,021

 

Net interest income

 

 

102,495

 

 

 

101,687

 

 

 

99,698

 

 

 

101,251

 

 

 

108,301

 

Provision for credit losses

 

 

4,368

 

 

 

3,582

 

 

 

4,282

 

 

 

6,654

 

 

 

4,197

 

Net interest income after provision for credit losses

 

 

98,127

 

 

 

98,105

 

 

 

95,416

 

 

 

94,597

 

 

 

104,104

 

Non-interest income

 

 

8,813

 

 

 

7,379

 

 

 

8,135

 

 

 

8,582

 

 

 

6,321

 

Non-interest expense

 

 

46,303

 

 

 

58,258

 

 

 

41,663

 

 

 

38,466

 

 

 

39,664

 

Income before income tax

 

 

60,637

 

 

 

47,226

 

 

 

61,888

 

 

 

64,713

 

 

 

70,761

 

Provision for income tax

 

 

10,611

 

 

 

5,152

 

 

 

8,548

 

 

 

11,245

 

 

 

12,790

 

Net income

 

 

50,026

 

 

 

42,074

 

 

 

53,340

 

 

 

53,468

 

 

 

57,971

 

Preferred stock dividends

 

 

-

 

 

 

31

 

 

 

-

 

 

 

31

 

 

 

-

 

Net income available to common stockholders

 

$

50,026

 

 

$

42,043

 

 

$

53,340

 

 

$

53,437

 

 

$

57,971

 

Earnings per share - basic

 

$

0.92

 

 

$

0.77

 

 

$

0.98

 

 

$

0.98

 

 

$

1.07

 

Earnings per share - diluted

 

$

0.92

 

 

$

0.77

 

 

$

0.98

 

 

$

0.98

 

 

$

1.06

 

Average diluted shares outstanding

 

 

54,595,384

 

 

 

54,548,719

 

 

 

54,530,635

 

 

 

54,527,317

 

 

 

54,534,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

15,721,630

 

 

$

16,129,668

 

 

$

16,044,332

 

 

$

15,072,808

 

 

$

14,566,559

 

Loans

 

 

11,880,696

 

 

 

11,658,829

 

 

 

11,641,130

 

 

 

11,604,894

 

 

 

11,629,802

 

Debt securities

 

 

1,941,625

 

 

 

1,882,847

 

 

 

1,878,701

 

 

 

2,048,227

 

 

 

1,646,937

 

Non-interest-bearing demand deposits

 

 

2,627,639

 

 

 

2,643,101

 

 

 

2,621,072

 

 

 

2,855,102

 

 

 

2,898,736

 

Total deposits

 

 

12,751,448

 

 

 

13,273,511

 

 

 

13,142,376

 

 

 

12,288,219

 

 

 

11,615,317

 

Borrowings

 

 

64,737

 

 

 

64,735

 

 

 

64,751

 

 

 

64,737

 

 

 

65,417

 

Stockholders' equity

 

 

1,476,036

 

 

 

1,440,405

 

 

 

1,401,384

 

 

 

1,363,471

 

 

 

1,339,817

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

54,507,778

 

 

 

54,461,580

 

 

 

54,425,447

 

 

 

54,425,033

 

 

 

54,398,025

 

Book value per share

 

$

27.08

 

 

$

26.45

 

 

$

25.75

 

 

$

25.05

 

 

$

24.63

 

Tangible book value per share (1)

 

$

26.83

 

 

$

26.20

 

 

$

25.50

 

 

$

24.80

 

 

$

24.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED FINANCIAL RATIOS (Annualized)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

2.66

%

 

 

2.57

%

 

 

2.64

%

 

 

2.93

%

 

 

3.15

%

Return on average assets

 

 

1.26

%

 

 

1.04

%

 

 

1.37

%

 

 

1.50

%

 

 

1.63

%

Return on average common stockholders' equity

 

 

13.82

%

 

 

11.78

%

 

 

15.34

%

 

 

15.85

%

 

 

17.83

%

Efficiency ratio

 

 

43.30

%

 

 

55.23

%

 

 

38.64

%

 

 

35.02

%

 

 

34.60

%

Non-interest expense to average earning assets

 

 

1.20

%

 

 

1.47

%

 

 

1.10

%

 

 

1.11

%

 

 

1.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital to risk-weighted assets

 

 

11.07

%

 

 

10.91

%

 

 

10.69

%

 

 

10.37

%

 

 

10.01

%

Tier 1 capital to risk-weighted assets

 

 

11.08

%

 

 

10.92

%

 

 

10.69

%

 

 

10.38

%

 

 

10.02

%

Total capital to risk-weighted assets

 

 

12.61

%

 

 

12.45

%

 

 

12.25

%

 

 

11.94

%

 

 

11.54

%

Tier 1 capital to average assets

 

 

9.44

%

 

 

9.12

%

 

 

9.35

%

 

 

9.83

%

 

 

9.49

%

Tangible common equity to total tangible assets (1)

 

 

9.31

%

 

 

8.85

%

 

 

8.66

%

 

 

8.96

%

 

 

9.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) This press release contains certain non-GAAP financial measures. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

(2) Regulatory capital ratios for most recent period are preliminary.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, including adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity, and adjusted efficiency ratio. During the fourth quarter of 2023, we recorded a one-time expense of $7.2 million associated with the FDIC’s special assessment to recapitalize the Deposit Insurance Fund following bank failures in the spring of 2023. This assessment was updated in the first quarter of 2024 resulting in additional expense of $1.8 million. Additionally, we experienced expenses for the termination of an EDP contract and related capitalized cost write-offs resulting in $1.1 million in expenses, and an adjustment to a privilege tax accrual resulting in a $2.2 million expense. The EDP contract termination costs were related to a planned systems conversion that was canceled. We determined the benefits to our clients were less than expected and the disruption outweighed the benefits. The adjustment to the privilege tax accrual was due to an under-accrual in previous years, and the correction resulted in duplicate expenses for 2023. These expenses are unusual, or infrequent, in nature and not part of the noninterest expense run rate. Each of adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity and adjusted efficiency ratio excludes the impact of these items, net of tax, and are all considered non-GAAP financial measures. This press release also contains the non-GAAP financial measures of 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 associated with our acquisition of Metro Bancshares, Inc. in January 2015.

We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data.

 

 

Three Months

Ended March 31,

2024

 

Three Months

Ended December

31, 2023

 

Three Months

Ended March 31,

2023

Net income - GAAP

 

$

50,026

 

 

$

42,074

 

 

$

57,971

 

Adjustments:

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

1,799

 

 

 

7,152

 

 

 

-

 

Privilege tax expense

 

 

-

 

 

 

2,150

 

 

 

-

 

EDP contract termination expense

 

 

-

 

 

 

1,134

 

 

 

-

 

Tax on adjustments

 

 

(452

)

 

 

(2,619

)

 

 

-

 

Adjusted net income - non-GAAP

 

$

51,373

 

 

$

49,891

 

 

$

57,971

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders - GAAP

 

$

50,026

 

 

$

42,043

 

 

$

57,971

 

Adjustments:

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

1,799

 

 

 

7,152

 

 

 

-

 

Privilege tax expense

 

 

-

 

 

 

2,150

 

 

 

-

 

EDP contract termination expense

 

 

-

 

 

 

1,134

 

 

 

-

 

Tax on adjustments

 

 

(452

)

 

 

(2,619

)

 

 

-

 

Adjusted net income available to common stockholders -non-GAAP

 

$

51,373

 

 

$

49,860

 

 

$

49,860

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share - GAAP

 

$

0.92

 

 

$

0.77

 

 

$

1.06

 

Adjustments:

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

0.03

 

 

 

0.13

 

 

 

-

 

Privilege tax expense

 

 

-

 

 

 

0.04

 

 

 

-

 

EDP contract termination expense

 

 

-

 

 

 

0.02

 

 

 

-

 

Tax on adjustments

 

 

(0.01

)

 

 

(0.05

)

 

 

-

 

Adjusted diluted earnings per share - non-GAAP

 

$

0.94

 

 

$

0.91

 

 

$

1.06

 

 

 

 

 

 

 

 

 

 

 

Return on average assets - GAAP

 

 

1.26

%

 

 

1.04

%

 

 

1.63

%

Net income - GAAP

 

$

50,026

 

 

$

42,074

 

 

$

57,971

 

Adjustments:

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

1,799

 

 

 

7,152

 

 

 

-

 

Privilege tax expense

 

 

-

 

 

 

2,150

 

 

 

-

 

EDP contract termination expense

 

 

-

 

 

 

1,134

 

 

 

-

 

Tax on adjustments

 

 

(452

)

 

 

(2,619

)

 

 

-

 

Adjusted net income available to common stockholders -non-GAAP

 

$

51,373

 

 

$

49,891

 

 

$

57,971

 

Average assets - GAAP

 

$

15,957,579

 

 

$

16,122,146

 

 

$

14,398,549

 

Adjusted return on average assets - non-GAAP

 

 

1.29

%

 

 

1.23

%

 

 

1.63

%

 

 

 

 

 

 

 

 

 

 

Return on average common stockholders' equity - GAAP

 

 

13.82

%

 

 

11.78

%

 

 

17.83

%

Net income available to common stockholders - GAAP

 

$

50,026

 

 

$

42,074

 

 

$

57,971

 

Adjustments:

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

1,799

 

 

 

7,152

 

 

 

-

 

Privilege tax expense

 

 

-

 

 

 

2,150

 

 

 

-

 

EDP contract termination expense

 

 

-

 

 

 

1,134

 

 

 

-

 

Tax on adjustments

 

 

(452

)

 

 

(2,619

)

 

 

-

 

Adjusted diluted earnings per share - non-GAAP

 

$

51,373

 

 

$

49,891

 

 

$

57,971

 

Average common stockholders' equity - GAAP

 

$

1,455,938

 

 

$

1,415,866

 

 

$

1,318,459

 

Adjusted return on average common stockholders' equity non-GAAP

 

 

14.19

%

 

 

13.98

%

 

 

17.83

%

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

43.30

%

 

 

55.23

%

 

 

55.23

%

Non-interest expense - GAAP

 

$

45,550

 

 

$

56,480

 

 

$

57,971

 

Adjustments:

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

1,799

 

 

 

7,152

 

 

 

-

 

Privilege tax expense

 

 

-

 

 

 

2,150

 

 

 

-

 

EDP contract termination expense

 

 

-

 

 

 

1,134

 

 

 

-

 

Adjusted non-interest expense

 

$

43,751

 

 

$

46,044

 

 

$

39,664

 

Net interest income plus non-interest income - GAAP

 

$

111,308

 

 

$

109,066

 

 

$

114,622

 

Adjusted efficiency ratio - non-GAAP

 

 

39.31

%

 

 

42.22

%

 

 

34.60

%

 

 

At March 31,

2024

 

At December 31,

2023

 

At September 30,

2023

 

At June 30,

2023

 

At March 31,

2023

Book value per share - GAAP

$

27.08

 

 

$

26.45

 

 

$

25.75

 

 

$

25.05

 

 

$

24.63

 

Total common stockholders' equity - GAAP

 

1,476,036

 

 

 

1,440,405

 

 

 

1,401,384

 

 

 

1,363,471

 

 

 

1,339,817

 

Adjustment for Goodwill

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

Tangible common stockholders' equity - non-GAAP

$

1,462,421

 

 

$

1,426,790

 

 

$

1,387,769

 

 

$

1,349,856

 

 

$

1,326,202

 

Tangible book value per share - non-GAAP

$

26.83

 

 

$

26.22

 

 

$

25.50

 

 

$

24.80

 

 

$

24.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity to total assets - GAAP

 

9.39

%

 

 

8.93

%

 

 

8.73

%

 

 

9.05

%

 

 

9.20

%

Total assets - GAAP

$

15,721,630

 

 

$

16,129,668

 

 

$

16,044,332

 

 

$

15,072,808

 

 

$

14,566,559

 

Adjustment for Goodwill

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

 

 

(13,615

)

Total tangible assets - non-GAAP

$

15,708,015

 

 

$

16,116,053

 

 

$

16,030,717

 

 

$

15,059,193

 

 

$

14,552,944

 

Tangible common equity to total tangible assets - non-GAAP

 

9.31

%

 

 

8.85

%

 

 

8.66

%

 

 

8.96

%

 

 

9.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

 

 

 

March 31,

2024

 

March 31,

2023

 

%

Change

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

78,708

 

 

$

139,175

 

 

(43

)%

Interest-bearing balances due from depository institutions

 

 

1,201,566

 

 

 

725,318

 

 

66

%

Federal funds sold

 

 

170,625

 

 

 

6,478

 

 

2,534

%

Cash and cash equivalents

 

 

1,450,899

 

 

 

870,971

 

 

67

%

Available for sale debt securities, at fair value

 

 

1,073,929

 

 

 

624,948

 

 

72

%

Held to maturity debt securities (fair value of $785,270 and $937,961, respectively)

 

 

867,696

 

 

 

1,021,989

 

 

(15

)%

Restricted equity securities

 

 

11,300

 

 

 

7,307

 

 

55

%

Mortgage loans held for sale

 

 

7,592

 

 

 

1,651

 

 

360

%

Loans

 

 

11,880,696

 

 

 

11,629,802

 

 

2

%

Less allowance for credit losses

 

 

(155,892

)

 

 

(148,965

)

 

5

%

Loans, net

 

 

11,724,804

 

 

 

11,480,837

 

 

2

%

Premises and equipment, net

 

 

59,302

 

 

 

60,093

 

 

(1

)%

Goodwill

 

 

13,615

 

 

 

13,615

 

 

-

%

Other assets

 

 

512,493

 

 

 

485,148

 

 

6

%

Total assets

 

$

15,721,630

 

 

$

14,566,559

 

 

8

%

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

$

2,627,639

 

 

$

2,898,736

 

 

(9

)%

Interest-bearing

 

 

10,123,809

 

 

 

8,716,581

 

 

16

%

Total deposits

 

 

12,751,448

 

 

 

11,615,317

 

 

10

%

Federal funds purchased

 

 

1,345,328

 

 

 

1,480,160

 

 

(9

)%

Other borrowings

 

 

64,737

 

 

 

65,417

 

 

(1

)%

Other liabilities

 

 

84,081

 

 

 

65,848

 

 

28

%

Total liabilities

 

 

14,245,594

 

 

 

13,226,742

 

 

8

%

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at

 

 

 

 

 

 

 

 

March 31, 2024 and March 31, 2023

 

 

-

 

 

 

-

 

 

-

%

Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,507,778 shares

 

 

 

 

 

 

 

 

issued and outstanding at March 31, 2024, and 54,398,025

 

 

 

 

 

 

 

 

shares issued and outstanding at March 31, 2023

 

 

54

 

 

 

54

 

 

-

%

Additional paid-in capital

 

 

233,560

 

 

 

229,631

 

 

2

%

Retained earnings

 

 

1,288,514

 

 

 

1,152,681

 

 

12

%

Accumulated other comprehensive loss

 

 

(46,592

)

 

 

(43,049

)

 

8

%

Total stockholders' equity attributable to ServisFirst Bancshares, Inc.

 

 

1,475,536

 

 

 

1,339,317

 

 

10

%

Noncontrolling interest

 

 

500

 

 

 

500

 

 

-

%

Total stockholders' equity

 

 

1,476,036

 

 

 

1,339,817

 

 

10

%

Total liabilities and stockholders' equity

 

$

15,721,630

 

 

$

14,566,559

 

 

8

%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

 

 

Three Months Ended March 31,

 

 

2024

 

2023

Interest income:

 

 

 

 

 

 

Interest and fees on loans

 

$

186,978

 

$

163,732

Taxable securities

 

 

15,979

 

 

10,895

Nontaxable securities

 

 

9

 

 

21

Federal funds sold

 

 

541

 

 

614

Other interest and dividends

 

 

23,203

 

 

6,060

Total interest income

 

 

226,710

 

 

181,322

Interest expense:

 

 

 

 

 

 

Deposits

 

 

104,066

 

 

55,713

Borrowed funds

 

 

20,149

 

 

17,308

Total interest expense

 

 

124,215

 

 

73,021

Net interest income

 

 

102,495

 

 

108,301

Provision for credit losses

 

 

4,368

 

 

4,197

Net interest income after provision for credit losses

 

 

98,127

 

 

104,104

Non-interest income:

 

 

 

 

 

 

Service charges on deposit accounts

 

 

2,150

 

 

1,934

Mortgage banking

 

 

678

 

 

442

Credit card income

 

 

2,155

 

 

1,689

Bank-owned life insurance income

 

 

3,231

 

 

1,621

Other operating income

 

 

599

 

 

635

Total non-interest income

 

 

8,813

 

 

6,321

Non-interest expense:

 

 

 

 

 

 

Salaries and employee benefits

 

 

22,986

 

 

19,066

Equipment and occupancy expense

 

 

3,557

 

 

3,435

Third party processing and other services

 

 

7,166

 

 

7,284

Professional services

 

 

1,464

 

 

1,654

FDIC and other regulatory assessments

 

 

3,905

 

 

1,517

Other real estate owned expense

 

 

30

 

 

6

Other operating expense

 

 

7,195

 

 

6,702

Total non-interest expense

 

 

46,303

 

 

39,664

Income before income tax

 

 

60,637

 

 

70,761

Provision for income tax

 

 

10,611

 

 

12,790

Net income

 

 

50,026

 

 

57,971

Dividends on preferred stock

 

 

-

 

 

-

Net income available to common stockholders

 

$

50,026

 

$

57,971

Basic earnings per common share

 

$

0.92

 

$

1.07

Diluted earnings per common share

 

$

0.92

 

$

1.06

LOANS BY TYPE (UNAUDITED)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter 2024

 

4th Quarter 2023

 

3rd Quarter 2023

 

2nd Quarter 2023

 

1st Quarter 2023

Commercial, financial and agricultural

 

$

2,834,102

 

$

2,823,986

 

$

2,890,535

 

$

2,986,453

 

$

3,081,926

Real estate - construction

 

 

1,546,716

 

 

1,519,619

 

 

1,509,937

 

 

1,397,732

 

 

1,469,670

Real estate - mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner-occupied commercial

 

 

2,377,042

 

 

2,257,163

 

 

2,237,684

 

 

2,294,002

 

 

2,243,436

1-4 family mortgage

 

 

1,284,888

 

 

1,249,938

 

 

1,170,099

 

 

1,167,238

 

 

1,138,645

Other mortgage

 

 

3,777,758

 

 

3,744,346

 

 

3,766,124

 

 

3,686,434

 

 

3,624,071

Subtotal: Real estate - mortgage

 

 

7,439,688

 

 

7,251,447

 

 

7,173,907

 

 

7,147,674

 

 

7,006,152

Consumer

 

 

60,190

 

 

63,777

 

 

66,751

 

 

73,035

 

 

72,054

Total loans

 

$

11,880,696

 

$

11,658,829

 

$

11,641,130

 

$

11,604,894

 

$

11,629,802

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)

(Dollars in thousands)

 

1st Quarter 2024

 

4th Quarter 2023

 

3rd Quarter 2023

 

2nd Quarter 2023

 

1st Quarter 2023

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

153,317

 

 

$

152,247

 

 

$

152,272

 

 

$

148,965

 

 

$

146,297

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial financial and agricultural

 

1,842

 

 

 

2,831

 

 

 

4,783

 

 

 

4,358

 

 

 

1,257

 

Real estate - construction

 

-

 

 

 

89

 

 

 

19

 

 

 

-

 

 

 

-

 

Real estate - mortgage

 

67

 

 

 

14

 

 

 

-

 

 

 

131

 

 

 

26

 

Consumer

 

98

 

 

 

231

 

 

 

341

 

 

 

111

 

 

 

390

 

Total charge offs

 

2,007

 

 

 

3,165

 

 

 

5,143

 

 

 

4,600

 

 

 

1,673

 

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial financial and agricultural

 

199

 

 

 

614

 

 

 

825

 

 

 

1,233

 

 

 

128

 

Real estate - construction

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3

 

Real estate - mortgage

 

6

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

Consumer

 

9

 

 

 

39

 

 

 

11

 

 

 

21

 

 

 

11

 

Total recoveries

 

214

 

 

 

653

 

 

 

836

 

 

 

1,254

 

 

 

143

 

Net charge-offs

 

1,793

 

 

 

2,512

 

 

 

4,307

 

 

 

3,346

 

 

 

1,530

 

Provision for credit losses

 

4,368

 

 

 

3,582

 

 

 

4,282

 

 

 

6,654

 

 

 

4,197

 

Ending balance

$

155,892

 

 

$

153,317

 

 

$

152,247

 

 

$

152,272

 

 

$

148,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to total loans

 

1.31

%

 

 

1.32

%

 

 

1.31

%

 

 

1.31

%

 

 

1.28

%

Allowance for credit losses to total average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loans

 

1.33

%

 

 

1.32

%

 

 

1.31

%

 

 

1.31

%

 

 

1.28

%

Net charge-offs to total average loans

 

0.06

%

 

 

0.09

%

 

 

0.15

%

 

 

0.11

%

 

 

0.05

%

Provision for credit losses to total average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loans

 

0.15

%

 

 

0.12

%

 

 

0.15

%

 

 

0.23

%

 

 

0.14

%

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

34,457

 

 

$

19,349

 

 

$

20,912

 

 

$

16,897

 

 

$

13,157

 

Loans 90+ days past due and accruing

 

380

 

 

 

2,184

 

 

 

1,692

 

 

 

5,947

 

 

 

4,683

 

Other real estate owned and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

repossessed assets

 

490

 

 

 

995

 

 

 

690

 

 

 

832

 

 

 

248

 

Total

$

35,327

 

 

$

22,528

 

 

$

23,294

 

 

$

23,676

 

 

$

18,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

0.29

%

 

 

0.18

%

 

 

0.19

%

 

 

0.20

%

 

 

0.15

%

Nonperforming assets to total assets

 

0.22

%

 

 

0.14

%

 

 

0.15

%

 

 

0.16

%

 

 

0.12

%

Nonperforming assets to earning assets

 

0.23

%

 

 

0.14

%

 

 

0.16

%

 

 

0.16

%

 

 

0.13

%

Allowance for credit losses to nonaccrual loans

 

452.42

%

 

 

795.17

%

 

 

731.74

%

 

 

901.18

%

 

 

1,132.24

%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

 

 

1st Quarter

2024

 

4th Quarter

2023

 

3rd Quarter

2023

 

2nd Quarter

2023

 

1st Quarter

2023

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

186,978

 

$

184,897

 

$

178,754

 

$

171,718

 

$

163,732

Taxable securities

 

 

15,979

 

 

15,512

 

 

15,522

 

 

11,570

 

 

10,895

Nontaxable securities

 

 

9

 

 

12

 

 

15

 

 

17

 

 

21

Federal funds sold

 

 

541

 

 

1,018

 

 

985

 

 

227

 

 

614

Other interest and dividends

 

 

23,203

 

 

27,623

 

 

17,930

 

 

6,124

 

 

6,060

Total interest income

 

 

226,710

 

 

229,062

 

 

213,206

 

 

189,656

 

 

181,322

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

104,066

 

 

108,155

 

 

95,901

 

 

71,971

 

 

55,713

Borrowed funds

 

 

20,149

 

 

19,220

 

 

17,607

 

 

16,434

 

 

17,308

Total interest expense

 

 

124,215

 

 

127,375

 

 

113,508

 

 

88,405

 

 

73,021

Net interest income

 

 

102,495

 

 

101,687

 

 

99,698

 

 

101,251

 

 

108,301

Provision for credit losses

 

 

4,368

 

 

3,582

 

 

4,282

 

 

6,654

 

 

4,197

Net interest income after provision for credit losses

 

 

98,127

 

 

98,105

 

 

95,416

 

 

94,597

 

 

104,104

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

2,150

 

 

2,181

 

 

2,163

 

 

2,142

 

 

1,934

Mortgage banking

 

 

678

 

 

792

 

 

825

 

 

696

 

 

442

Credit card income

 

 

2,155

 

 

2,004

 

 

2,532

 

 

2,406

 

 

1,689

Bank-owned life insurance income

 

 

3,231

 

 

1,639

 

 

1,818

 

 

2,496

 

 

1,621

Other operating income

 

 

599

 

 

763

 

 

797

 

 

842

 

 

635

Total non-interest income

 

 

8,813

 

 

7,379

 

 

8,135

 

 

8,582

 

 

6,321

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

22,986

 

 

23,024

 

 

20,080

 

 

18,795

 

 

19,066

Equipment and occupancy expense

 

 

3,557

 

 

3,860

 

 

3,579

 

 

3,421

 

 

3,435

Third party processing and other services

 

 

7,166

 

 

7,841

 

 

6,549

 

 

6,198

 

 

7,284

Professional services

 

 

1,464

 

 

1,417

 

 

1,265

 

 

1,580

 

 

1,654

FDIC and other regulatory assessments

 

 

3,905

 

 

9,509

 

 

2,346

 

 

2,242

 

 

1,517

Other real estate owned expense

 

 

30

 

 

17

 

 

18

 

 

6

 

 

6

Other operating expense

 

 

7,195

 

 

12,590

 

 

7,826

 

 

6,224

 

 

6,702

Total non-interest expense

 

 

46,303

 

 

58,258

 

 

41,663

 

 

38,466

 

 

39,664

Income before income tax

 

 

60,637

 

 

47,226

 

 

61,888

 

 

64,713

 

 

70,761

Provision for income tax

 

 

10,611

 

 

5,152

 

 

8,548

 

 

11,245

 

 

12,790

Net income

 

 

50,026

 

 

42,074

 

 

53,340

 

 

53,468

 

 

57,971

Dividends on preferred stock

 

 

-

 

 

31

 

 

-

 

 

31

 

 

-

Net income available to common stockholders

 

$

50,026

 

$

42,043

 

$

53,340

 

$

53,437

 

$

57,971

Basic earnings per common share

 

$

0.92

 

$

0.77

 

$

0.98

 

$

0.98

 

$

1.07

Diluted earnings per common share

 

$

0.92

 

$

0.77

 

$

0.98

 

$

0.98

 

$

1.06

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)

ON A FULLY TAXABLE-EQUIVALENT BASIS

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter 2024

 

4th Quarter 2023

 

3rd Quarter 2023

 

2nd Quarter 2023

 

1st Quarter 2023

 

 

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

 

$

11,723,391

 

 

6.41

%

 

$

11,580,716

 

 

6.33

%

 

$

11,545,003

 

 

6.13

%

 

$

11,581,008

 

 

5.94

%

 

$

11,632,439

 

 

5.70

%

Tax-exempt (2)

 

 

17,605

 

 

5.00

 

 

 

17,787

 

 

4.71

 

 

 

18,023

 

 

4.71

 

 

 

18,312

 

 

4.82

 

 

 

18,978

 

 

3.36

 

Total loans, net of unearned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income

 

 

11,740,996

 

 

6.40

 

 

 

11,598,503

 

 

6.32

 

 

 

11,563,026

 

 

6.13

 

 

 

11,599,320

 

 

5.94

 

 

 

11,651,417

 

 

5.70

 

Mortgage loans held for sale

 

 

4,770

 

 

5.57

 

 

 

5,105

 

 

6.22

 

 

 

5,476

 

 

6.67

 

 

 

5,014

 

 

5.12

 

 

 

1,522

 

 

6.40

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

2,013,295

 

 

3.16

 

 

 

2,007,636

 

 

3.08

 

 

 

2,029,995

 

 

3.07

 

 

 

1,757,397

 

 

2.64

 

 

 

1,724,523

 

 

2.54

 

Tax-exempt (2)

 

 

1,296

 

 

3.40

 

 

 

1,739

 

 

2.30

 

 

 

2,408

 

 

2.49

 

 

 

2,960

 

 

2.43

 

 

 

3,781

 

 

2.43

 

Total securities (3)

 

 

2,014,591

 

 

3.16

 

 

 

2,009,375

 

 

3.08

 

 

 

2,032,403

 

 

3.07

 

 

 

1,760,357

 

 

2.64

 

 

 

1,728,304

 

 

2.54

 

Federal funds sold

 

 

37,298

 

 

5.83

 

 

 

72,178

 

 

5.60

 

 

 

74,424

 

 

5.25

 

 

 

15,908

 

 

5.72

 

 

 

50,526

 

 

4.93

 

Restricted equity securities

 

 

10,417

 

 

7.57

 

 

 

10,216

 

 

8.74

 

 

 

8,471

 

 

5.90

 

 

 

8,834

 

 

6.08

 

 

 

9,919

 

 

7.69

 

Interest-bearing balances with banks

 

 

1,687,977

 

 

5.48

 

 

 

1,981,411

 

 

5.49

 

 

 

1,293,243

 

 

5.45

 

 

 

460,893

 

 

5.21

 

 

 

510,021

 

 

4.67

 

Total interest-earning assets

 

$

15,496,049

 

 

5.88

 

 

$

15,676,788

 

 

5.80

 

 

$

14,977,043

 

 

5.65

 

 

$

13,850,326

 

 

5.49

 

 

$

13,951,709

 

 

5.27

 

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

98,813

 

 

 

 

 

101,741

 

 

 

 

 

111,566

 

 

 

 

 

101,188

 

 

 

 

 

106,448

 

 

 

Net premises and equipment

 

 

60,126

 

 

 

 

 

60,110

 

 

 

 

��

60,121

 

 

 

 

 

60,499

 

 

 

 

 

60,617

 

 

 

Allowance for credit losses, accrued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest and other assets

 

 

302,591

 

 

 

 

 

283,435

 

 

 

 

 

283,357

 

 

 

 

 

279,860

 

 

 

 

 

279,775

 

 

 

Total assets

 

$

15,957,579

 

 

 

 

$

16,122,074

 

 

 

 

$

15,432,087

 

 

 

 

$

14,291,873

 

 

 

 

$

14,398,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

2,339,548

 

 

2.69

%

 

$

2,245,431

 

 

2.91

%

 

$

2,153,973

 

 

2.72

%

 

$

1,628,936

 

 

1.69

%

 

$

1,675,355

 

 

1.25

%

Savings

 

 

106,924

 

 

1.76

 

 

 

107,035

 

 

1.72

 

 

 

112,814

 

 

1.61

 

 

 

122,050

 

 

1.38

 

 

 

134,671

 

 

0.94

 

Money market

 

 

6,761,495

 

 

4.48

 

 

 

7,106,190

 

 

4.44

 

 

 

6,538,426

 

 

4.24

 

 

 

5,971,639

 

 

3.78

 

 

 

5,756,642

 

 

3.17

 

Time deposits

 

 

1,164,204

 

 

4.37

 

 

 

1,111,350

 

 

4.18

 

 

 

1,093,388

 

 

3.89

 

 

 

983,582

 

 

3.44

 

 

 

850,639

 

 

2.51

 

Total interest-bearing deposits

 

 

10,372,171

 

 

4.04

 

 

 

10,570,006

 

 

4.06

 

 

 

9,898,601

 

 

3.84

 

 

 

8,706,207

 

 

3.32

 

 

 

8,417,307

 

 

2.68

 

Federal funds purchased

 

 

1,422,828

 

 

5.50

 

 

 

1,338,110

 

 

5.49

 

 

 

1,237,721

 

 

5.43

 

 

 

1,191,582

 

 

5.14

 

 

 

1,389,217

 

 

4.67

 

Other borrowings

 

 

64,736

 

 

4.26

 

 

 

64,734

 

 

4.23

 

 

 

64,734

 

 

4.23

 

 

 

100,998

 

 

4.62

 

 

 

114,726

 

 

4.61

 

Total interest-bearing liabilities

 

$

11,859,735

 

 

4.21

%

 

$

11,972,850

 

 

4.22

%

 

$

11,201,056

 

 

4.02

%

 

$

9,998,787

 

 

3.55

%

 

$

9,921,250

 

 

2.98

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

checking

 

 

2,550,841

 

 

 

 

 

2,656,504

 

 

 

 

 

2,778,858

 

 

 

 

 

2,876,225

 

 

 

 

 

3,086,774

 

 

 

Other liabilities

 

 

91,064

 

 

 

 

 

76,651

 

 

 

 

 

72,924

 

 

 

 

 

64,917

 

 

 

 

 

72,121

 

 

 

Stockholders' equity

 

 

1,503,240

 

 

 

 

 

1,475,366

 

 

 

 

 

1,437,766

 

 

 

 

 

1,399,578

 

 

 

 

 

1,358,587

 

 

 

Accumulated other comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loss

 

 

(47,302

)

 

 

 

 

(59,297

)

 

 

 

 

(58,517

)

 

 

 

 

(47,634

)

 

 

 

 

(40,183

)

 

 

Total liabilities and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

stockholders' equity

 

$

15,957,579

 

 

 

 

$

16,122,074

 

 

 

 

$

15,432,087

 

 

 

 

$

14,291,873

 

 

 

 

$

14,398,549

 

 

 

Net interest spread

 

 

 

 

1.67

%

 

 

 

 

1.58

%

 

 

 

 

1.63

%

 

 

 

 

1.94

%

 

 

 

 

2.29

%

Net interest margin

 

 

 

 

2.66

%

 

 

 

 

2.57

%

 

 

 

 

2.64

%

 

 

 

 

2.93

%

 

 

 

 

3.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Average loans include nonaccrual loans in all periods. Loan fees of $3,655, $4,175, $2,996, $3,318, and $3,263 are included in interest income in the first quarter of 2024, fourth quarter of 2023, third quarter of 2023, second quarter of 2023, and first quarter of 2023, respectively.

(2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%.

(3) Unrealized losses on debt securities of $(68,162), $(84,647), $(83,815), $(69,498), and $(59,738) for the first quarter of 2024, fourth quarter of 2023, third quarter of 2023, second quarter of 2023, and first quarter of 2023, respectively, are excluded from the yield calculation.

 

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