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

1. EPS rose to $1.19, up 31% year-over-year. 2. Net interest income increased by $8 million, 28% annualized. 3. Deposits grew by $397 million, 12% annualized, indicating strong liquidity. 4. Credit quality remains strong with non-performing assets at just 0.26%.

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Strong earnings growth and improved credit quality support a bullish outlook for SFBS.

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BIRMINGHAM, Ala.--(BUSINESS WIRE)--ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended December 31, 2024. Fourth Quarter 2024 Highlights: Diluted earnings per share of $1.19 for the quarter. Diluted earnings per share increased 8% from the third quarter of 2024, and 31% from the year-ago quarter on an adjusted basis*. Net interest margin increased 12 basis points from the third quarter of 2024. Net interest income increased by $8.0 million, or 28% annualized, during the quarter. Deposits grew by $397 million, or 12% annualized, during the quarter. Loans grew by $268 million, or 9% annualized, during the quarter. Cash dividend increased from $0.30 to $0.335 per share, a 12% increase. Book value per share of $29.63, up 12.0% from the fourth quarter of 2023 and 11.6% annualized, from the third quarter of 2024. Liquidity remains solid with $2.4 billion in cash on hand and no FHLB advances or brokered deposits. Consolidated common equity tier 1 capital to risk-weighted assets increased from 10.91% to 11.42% year-over-year. Credit quality continues to be strong with non-performing assets to total assets of 0.26%. Tom Broughton, Chairman, President, and CEO, said, “With a solid loan pipeline, an improving margin, strong liquidity and strong credit quality, we are optimistic about the outlook for the bank for 2025.” Ed Woodie, Interim CFO, said, “We continue to enjoy higher net interest income. Our margin expanded $8.0 million, a 28% annualized linked quarter increase. Operating efficiency remains a focus for us as we enter 2025.” * 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.” FINANCIAL SUMMARY (UNAUDITED) (in Thousands except share and per share amounts) Period Ending December 31, 2024 Period Ending September 30, 2024 % Change From Period Ending September 30, 2024 to Period Ending December 31, 2024 Period Ending December 31, 2023 % Change From Period Ending December 31, 2023 to Period Ending December 31, 2024 QUARTERLY OPERATING RESULTS Net Income $ 65,173 $ 59,907 8.8 % $ 42,074 54.9 % Net Income Available to Common Stockholders $ 65,142 $ 59,907 8.7 % $ 42,043 54.9 % Diluted Earnings Per Share $ 1.19 $ 1.10 8.2 % $ 0.77 54.5 % Return on Average Assets 1.52 % 1.43 % 1.04 % Return on Average Common Stockholders' Equity 16.29 % 15.55 % 11.78 % Average Diluted Shares Outstanding 54,649,808 54,642,582 54,548,719 Adjusted Net Income, net of tax* $ 65,173 $ 59,907 8.8 % $ 49,891 30.6 % Adjusted Net Income Available to Common Stockholders, net of tax* $ 65,142 $ 59,907 8.7 % $ 49,860 30.6 % Adjusted Diluted Earnings Per Share, net of tax* $ 1.19 $ 1.10 8.2 % $ 0.91 30.8 % Adjusted Return on Average Assets, net of tax* 1.52 % 1.43 % 1.23 % Adjusted Return on Average Common Stockholders' Equity, net of tax* 16.29 % 15.55 % 13.98 % YEAR-TO-DATE OPERATING RESULTS Net Income $ 227,242 $ 206,853 9.9 % Net Income Available to Common Stockholders $ 227,180 $ 206,791 9.9 % Diluted Earnings Per Share $ 4.16 $ 3.79 9.8 % Return on Average Assets 1.39 % 1.37 % Return on Average Common Stockholders' Equity 14.98 % 15.13 % Average Diluted Shares Outstanding 54,624,234 54,530,797 Adjusted Net Income, net of tax* $ 228,589 $ 214,670 6.5 % Adjusted Net Income Available to Common Stockholders, net of tax* $ 228,527 $ 214,608 6.5 % Adjusted Diluted Earnings Per Share, net of tax* $ 4.18 $ 3.94 Adjusted Return on Average Assets, net of tax* 1.40 % 1.42 % Adjusted Return on Average Common Stockholders' Equity, net of tax* 15.07 % 15.71 % BALANCE SHEET Total Assets $ 17,351,643 $ 16,449,178 5.5 % $ 16,129,668 7.6 % Loans 12,605,836 12,338,226 2.2 % 11,658,829 8.1 % Non-interest-bearing Demand Deposits 2,619,687 2,576,329 1.7 % 2,643,101 (0.9) % Total Deposits 13,543,459 13,146,529 3.0 % 13,273,511 2.0 % Stockholders' Equity 1,616,772 1,570,269 3.0 % 1,440,405 12.2 % * 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 of $65.2 million and net income available to common stockholders of $65.1 million for the quarter ended December 31, 2024, compared to net income and net income available to common stockholders of $59.9 million for the third quarter of 2024 and net income of $42.1 million and net income available to common stockholders of $42.0 million for the fourth quarter of 2023. Basic and diluted earnings per common share were both $1.19 in the fourth quarter of 2024, compared to $1.10 for both in the third quarter of 2024 and $0.77 for both in the fourth quarter of 2023. Annualized return on average assets was 1.52% and annualized return on average common stockholders’ equity was 16.29% for the fourth quarter of 2024, compared to 1.04% and 11.78%, respectively, for the fourth quarter of 2023. Net interest income was $123.2 million for the fourth quarter of 2024, compared to $115.1 million for the third quarter of 2024 and $101.7 million for the fourth quarter of 2023. The net interest margin in the fourth quarter of 2024 was 2.96% compared to 2.84% in the third quarter of 2024 and 2.57% in the fourth quarter of 2023. Loan yields were 6.43% during the fourth quarter of 2024 compared to 6.62% during the third quarter of 2024 and 6.32% during the fourth quarter of 2023. Investment yields were 3.49% during the fourth quarter of 2024 compared to 3.57% during the third quarter of 2024 and 3.08% during the fourth quarter of 2023. Average interest-bearing deposit rates were 3.63% during the fourth quarter of 2024, compared to 4.12% during the third quarter of 2024 and 4.06% during the fourth quarter of 2023. Average federal funds purchased rates were 4.80% during fourth quarter of 2024, compared to 5.42% during the third quarter of 2024 and 5.49% during the fourth quarter of 2023. Average loans for the fourth quarter of 2024 were $12.43 billion, an increase of $60.6 million, or 1.9% annualized, from average loans of $12.37 billion for the third quarter of 2024, and an increase of $828.8 million, or 7.1%, from average loans of $11.60 billion for the fourth quarter of 2023. Ending total loans for the fourth quarter of 2024 were $12.61 billion, an increase of $267.6 million, or 8.7% annualized, from $12.34 billion for the third quarter of 2024, and an increase of $947.0 million, or 8.1%, from $11.66 billion for the fourth quarter of 2023. Average total deposits for the fourth quarter of 2024 were $13.48 billion, a decrease of $32.6 million, or 1.0% annualized, from average total deposits of $13.52 billion for the third quarter of 2024, and an increase of $256.7 million, or 1.9%, from average total deposits of $13.23 billion for the fourth quarter of 2023. Ending total deposits for the fourth quarter of 2024 were $13.54 billion, an increase of $396.9 million, or 12.1% annualized, from $13.15 billion for the third quarter of 2024, and an increase of $269.9 million, or 2.0%, from $13.27 billion for the fourth quarter of 2023. Non-performing assets to total assets were 0.26% for the fourth quarter of 2024, compared to 0.25% for the third quarter of 2024 and 0.14% for the fourth quarter of 2023. The increase in non-performing assets to total assets year-over-year can primarily be attributed to a single relationship that moved to non-accrual status during the first quarter of 2024. Annualized net charge-offs to average loans were 0.09% for the fourth quarter of 2024, compared to 0.09% for the third quarter of 2024 and 0.09% for the fourth quarter of 2023. The allowance for credit losses as a percentage of total loans at December 31, 2024, September 30, 2024, and December 31, 2023, was 1.30%, 1.30%, and 1.32%, respectively. We recorded a $6.4 million provision for credit losses in the fourth quarter of 2024 and $5.4 million in the third quarter of 2024, $2.7 million of which is a provision for the potential impact of Hurricane Helene and Milton during the third quarter of 2024. Management is still assessing the effects of both hurricanes and has decided to leave the current provision unchanged while determining if additional provisions are warranted. We recorded provisions for credit losses of $3.6 million in the fourth quarter of 2023. Non-interest income increased $1.4 million, or 19.3%, to $8.8 million for the fourth quarter of 2024 from $7.4 million in the fourth quarter of 2023, and increased $254,000, or 3.0%, on a linked quarter basis. Service charges on deposit accounts increased $469,000, or 21.5%, to $2.7 million for the fourth quarter of 2024 from $2.2 million in the fourth quarter of 2023, and increased $309,000, or 13.2%, on a linked quarter basis. Mortgage banking revenue increased $721,000, or 91.0%, to $1.5 million for the fourth quarter of 2024 from $792,000 in the fourth quarter of 2023, and increased $161,000, or 11.9%, on a linked quarter basis. Closed loans increased 55% during the fourth quarter of 2024 compared to the fourth quarter of 2023. Net credit card income decreased $137,000, or 6.8%, to $1.9 million for the fourth quarter of 2024 from $2.0 million in the fourth quarter of 2023, and decreased $58,000, or 3.0%, on a linked quarter basis. Bank-owned life insurance (“BOLI”) income increased $492,000, or 30.0%, to $2.1 million for the fourth quarter of 2024 from $1.6 million in the fourth quarter of 2023, and increased $18,000, or 0.9%, on a linked quarter basis. Other operating income decreased $121,000, or 15.9%, to $642,000 for the fourth quarter of 2024 from $763,000 in the fourth quarter of 2023, and decreased $176,000, or 21.5%, on a linked quarter basis. Non-interest expense decreased $11.4 million, or 19.5%, to $46.9 million for the fourth quarter of 2024 from $58.3 million in the fourth quarter of 2023, and increased $1.3 million, or 2.8%, on a linked quarter basis. Salary and benefit expense increased $1.0 million, or 4.5%, to $24.1 million for the fourth quarter of 2024 from $23.0 million in the fourth quarter of 2023, and decreased $995,000, or 4.0%, on a linked quarter basis. The number of full-time equivalent (“FTE”) employees increased by 39, or 6.60% to 630 at December 31, 2024 compared to 591 at December 31, 2023, and increased by 10, or 1.61%, from the end of the third quarter of 2024. Equipment and occupancy expense decreased $260,000, or 6.7%, to $3.6 million for the fourth quarter of 2024 from $3.9 million in the fourth quarter of 2023, and decreased $195,000, or 5.1%, on a linked quarter basis. Third party processing and other services expense increased $674,000, or 8.6%, to $8.5 million for the fourth quarter of 2024 from $7.8 million in the fourth quarter of 2023, and increased $480,000, or 6.0%, on a linked quarter basis. Professional services expense increased $564,000, or 39.8%, to $2.0 million for the fourth quarter of 2024 from $1.4 million in the fourth quarter of 2023, and increased $266,000, or 15.5%, on a linked quarter basis. FDIC and other regulatory assessments decreased $7.3 million, or 76.6%, to $2.2 million for the fourth quarter of 2024 from $9.5 million in the fourth quarter of 2023, and decreased $130,000, or 5.5%, on a linked quarter basis. In the first quarter of 2024 and fourth quarter of 2023, the FDIC implemented a special assessment adjustment to recapitalize the Deposit Insurance Fund, see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” for more discussion. Other operating expenses decreased $6.1 million, or 48.7%, to $6.5 million for the fourth quarter of 2024 from $12.6 million in the fourth quarter of 2023, and increased $1.9 million, or 41.2%, on a linked quarter basis. An incremental expense in the fourth quarter of 2023 related to tax credit investments of $3.3 million, contributed to the decrease in other operating expenses year-over-year. 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 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 35.54% during the fourth quarter of 2024 compared to 55.23% during the fourth quarter of 2023 and 36.90% during the third quarter of 2024. Income tax expense increased $9.0 million, or 175.6%, to $14.2 million in the fourth quarter of 2024, compared to $5.2 million in the fourth quarter of 2023. Our effective tax rate was 17.89% for the fourth quarter of 2024 compared to 10.91% for the fourth quarter of 2023. 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 fourth quarters of 2024 and 2023 of $624,000 and $252,000, 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 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 or re-emerging 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. 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 assumption forming the basis of 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) 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024 1st Quarter 2024 4th Quarter 2023 CONSOLIDATED STATEMENT OF INCOME Interest income $ 243,892 $ 247,979 $ 227,540 $ 226,710 $ 229,062 Interest expense 120,724 132,858 121,665 124,215 127,375 Net interest income 123,168 115,121 105,875 102,495 101,687 Provision for credit losses 5,704 5,659 5,353 4,368 3,582 Net interest income after provision for credit losses 117,464 109,462 100,522 98,127 98,105 Non-interest income 8,803 8,549 8,891 8,813 7,379 Non-interest expense 46,896 45,632 42,818 46,303 58,258 Income before income tax 79,371 72,379 66,595 60,637 47,226 Provision for income tax 14,198 12,472 14,459 10,611 5,152 Net income 65,173 59,907 52,136 50,026 42,074 Preferred stock dividends 31 - 31 - 31 Net income available to common stockholders $ 65,142 $ 59,907 $ 52,105 $ 50,026 $ 42,043 Earnings per share - basic $ 1.19 $ 1.10 $ 0.96 $ 0.92 $ 0.77 Earnings per share - diluted $ 1.19 $ 1.10 $ 0.95 $ 0.92 $ 0.77 Average diluted shares outstanding 54,649,808 54,642,582 54,608,679 54,595,384 54,548,719 CONSOLIDATED BALANCE SHEET DATA Total assets $ 17,351,643 $ 16,449,178 $ 16,049,812 $ 15,721,630 $ 16,129,668 Loans 12,605,836 12,338,226 12,332,780 11,880,696 11,658,829 Debt securities 1,876,253 1,867,587 1,941,641 1,941,625 1,882,847 Non-interest-bearing demand deposits 2,619,687 2,576,329 2,475,415 2,627,639 2,643,101 Total deposits 13,543,459 13,146,529 13,259,392 12,751,448 13,273,511 Borrowings 64,743 64,741 64,739 64,737 64,735 Stockholders' equity 1,616,772 1,570,269 1,510,576 1,476,036 1,440,405 Shares outstanding 54,570,138 54,551,543 54,521,479 54,507,778 54,461,580 Book value per share $ 29.63 $ 28.79 $ 27.71 $ 27.08 $ 26.45 Tangible book value per share (1) $ 29.38 $ 28.54 $ 27.46 $ 26.83 $ 26.20 SELECTED FINANCIAL RATIOS (Annualized) Net interest margin 2.96 % 2.84 % 2.79 % 2.66 % 2.57 % Return on average assets 1.52 % 1.43 % 1.34 % 1.26 % 1.04 % Return on average common stockholders' equity 16.29 % 15.55 % 14.08 % 13.82 % 11.78 % Efficiency ratio 35.54 % 36.90 % 37.31 % 43.30 % 55.23 % Non-interest expense to average earning assets 1.13 % 1.13 % 1.13 % 1.20 % 1.47 % CAPITAL RATIOS (2) Common equity tier 1 capital to risk-weighted assets 11.42 % 11.25 % 10.93 % 11.07 % 10.91 % Tier 1 capital to risk-weighted assets 11.42 % 11.25 % 10.93 % 11.08 % 10.92 % Total capital to risk-weighted assets 12.90 % 12.77 % 12.43 % 12.61 % 12.45 % Tier 1 capital to average assets 9.59 % 9.54 % 9.81 % 9.44 % 9.12 % Tangible common equity to total tangible assets (1) 9.25 % 9.47 % 9.33 % 9.31 % 8.85 % (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, during the fourth quarter of 2023 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. We can continue to provide best-in-class products with our current service provider. 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.     At December 31, 2024 At September 30, 2024 At June 30, 2024 At March 31, 2024 At December 31, 2023 Book value per share - GAAP   $ 29.63 $ 28.79 $ 27.71 $ 27.08 $ 26.45 Total common stockholders' equity - GAAP   1,616,772 1,570,269 1,570,994 1,476,036 1,440,405 Adjustment for Goodwill   (13,615 ) (13,615 ) (13,615 ) (13,615 ) (13,615 ) Tangible common stockholders' equity - non-GAAP   $ 1,603,157 $ 1,556,654 $ 1,557,379 $ 1,462,421 $ 1,426,790 Tangible book value per share - non-GAAP   $ 29.38 $ 28.54 $ 27.46 $ 26.83 $ 26.22   Stockholders' equity to total assets - GAAP   9.32 % 9.55 % 9.55 % 9.39 % 8.93 % Total assets - GAAP   $ 17,351,643 $ 16,449,178 $ 16,448,582 $ 16,048,819 $ 16,129,668 Adjustment for Goodwill   (13,615 ) (13,615 ) (13,615 ) (13,615 ) (13,615 ) Total tangible assets - non-GAAP   $ 17,338,028 $ 16,435,563 $ 16,434,967 $ 16,035,204 $ 16,116,053 Tangible common equity to total tangible assets - non-GAAP   9.25 % 9.47 % 9.48 % 9.33 % 8.85 %   Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Year Ended December 31, 2024 Year Ended December 31, 2023 Net income - GAAP $ 65,173 $ 42,074 $ 227,242 $ 206,853 Adjustments: FDIC special assessment - 7,152 1,799 7,152 Privilege tax expense - 2,150 - 2,150 EDP contract termination expense - 1,134 - 1,134 Tax on adjustments - (2,619 ) (452 ) (2,619 ) Adjusted net income - non-GAAP $ 65,173 $ 49,891 $ 228,589 $ 214,670 Net income available to common stockholders - GAAP $ 65,142 $ 42,043 $ 227,180 $ 206,791 Adjustments: FDIC special assessment - 7,152 1,799 7,152 Privilege tax expense - 2,150 - 2,150 EDP contract termination expense - 1,134 - 1,134 Tax on adjustments - (2,619 ) (452 ) (2,619 ) Adjusted net income available to common stockholders - non-GAAP $ 65,142 $ 49,860 $ 228,527 $ 214,608 Diluted earnings per share - GAAP $ 1.19 $ 0.77 $ 4.16 $ 3.79 Adjustments: FDIC special assessment - 0.13 0.03 0.13 Privilege tax expense - 0.04 - 0.04 EDP contract termination expense - 0.02 - 0.02 Tax on adjustments - (0.05 ) (0.01 ) (0.05 ) Adjusted diluted earnings per share - non-GAAP $ 1.19 $ 0.91 $ 4.18 $ 3.94 Return on average assets - GAAP 1.52 % 1.04 % 1.39 % 1.37 % Net income available to common stockholders - GAAP $ 65,142 $ 42,074 $ 227,180 $ 206,853 Adjustments: FDIC special assessment - 7,152 1,799 7,152 Privilege tax expense - 2,150 - 2,150 EDP contract termination expense - 1,134 - 1,134 Tax on adjustments - (2,619 ) (452 ) (2,619 ) Adjusted net income available to common stockholders - non-GAAP $ 65,142 $ 49,891 $ 228,527 $ 214,670 Average assets - GAAP $ 17,037,383 $ 16,122,074 $ 16,333,383 $ 15,066,716 Adjusted return on average assets - non-GAAP 1.52 % 1.23 % 1.40 % 1.42 % Return on average common stockholders' equity - GAAP 16.29 % 11.78 % 14.98 % 15.13 % Net income available to common stockholders - GAAP $ 65,142 $ 42,074 $ 227,180 $ 206,853 Adjustments: FDIC special assessment - 7,152 1,799 7,152 Privilege tax expense - 2,150 - 2,150 EDP contract termination expense - 1,134 - 1,134 Tax on adjustments - (2,619 ) (452 ) (2,619 ) Adjusted diluted earnings per share - non-GAAP $ 65,142 $ 49,891 $ 228,527 $ 214,670 Average common stockholders' equity - GAAP $ 1,591,248 $ 1,415,866 $ 1,516,855 $ 1,366,708 Adjusted return on average common stockholders' equity non-GAAP 16.29 % 13.98 % 15.07 % 15.71 % Efficiency ratio 35.54 % 55.23 % 37.71 % 40.67 % Non-interest expense - GAAP $ 46,896 $ 56,480 $ 181,146 $ 176,273 Adjustments: FDIC special assessment - 7,152 1,799 7,152 Privilege tax expense - 2,150 - 2,150 EDP contract termination expense - 1,134 - 1,134 Adjusted non-interest expense $ 46,896 $ 46,044 $ 179,347 $ 165,837 Net interest income plus non-interest income - GAAP $ 131,971 $ 109,066 $ 481,715 $ 441,354 Adjusted efficiency ratio - non-GAAP 35.54 % 42.22 % 37.23 % 37.57 % CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands) December 31, 2024 December 31, 2023 % Change ASSETS Cash and due from banks $ 116,394 $ 123,430 (6 ) % Interest-bearing balances due from depository institutions 2,259,195 1,907,083 18 % Federal funds sold 1,045 100,575 (99 ) % Cash and cash equivalents 2,376,634 2,131,088 12 % Available for sale debt securities, at fair value 1,161,400 900,183 29 % Held to maturity debt securities (fair value of $639,496 and $907,191, respectively) 714,853 982,664 (27 ) % Restricted equity securities 11,300 10,226 11 % Mortgage loans held for sale 9,211 5,074 82 % Loans 12,605,836 11,658,829 8 % Less allowance for credit losses (164,458 ) (153,317 ) 7 % Loans, net 12,441,378 11,505,512 8 % Premises and equipment, net 59,185 59,324 - % Goodwill 13,615 13,615 - % Other assets 564,067 521,982 8 % Total assets $ 17,351,643 $ 16,129,668 8 % LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest-bearing demand $ 2,619,687 $ 2,643,101 (1 ) % Interest-bearing 10,923,772 10,630,410 3 % Total deposits 13,543,459 13,273,511 2 % Federal funds purchased 1,993,728 1,256,724 59 % Other borrowings 64,743 64,735 - % Other liabilities 132,941 94,293 41 % Total liabilities 15,734,871 14,689,263 7 % Stockholders' equity: Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at December 31, 2024 and December 31, 2023 - - - % Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,570,138 shares issued and outstanding at December 31, 2024, and 54,425,447 shares issued and outstanding at December 31, 2023 54 54 - % Additional paid-in capital 235,781 232,605 1 % Retained earnings 1,412,616 1,254,841 13 % Accumulated other comprehensive loss (32,179 ) (47,595 ) (32 ) % Total stockholders' equity attributable to ServisFirst Bancshares, Inc. 1,616,272 1,439,905 12 % Noncontrolling interest 500 500 - % Total stockholders' equity 1,616,772 1,440,405 12 % Total liabilities and stockholders' equity $ 17,351,643 $ 16,129,668 8 % CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Interest income: Interest and fees on loans $ 200,875 $ 184,897 $ 788,105 $ 699,101 Taxable securities 16,905 15,512 66,535 53,499 Nontaxable securities 6 12 31 65 Federal funds sold 18 1,018 1,128 2,844 Other interest and dividends 26,088 27,623 90,322 57,737 Total interest income 243,892 229,062 946,121 813,246 Interest expense: Deposits 98,702 108,155 420,650 331,740 Borrowed funds 22,022 19,220 78,812 70,569 Total interest expense 120,724 127,375 499,462 402,309 Net interest income 123,168 101,687 446,659 410,937 Provision for credit losses 5,704 3,582 21,587 18,715 Net interest income after provision for credit losses 117,464 98,105 425,072 392,222 Non-interest income: Service charges on deposit accounts 2,650 2,181 9,434 8,420 Mortgage banking 1,513 792 4,922 2,755 Credit card income 1,867 2,004 8,280 8,631 Bank-owned life insurance income 2,131 1,639 9,533 7,574 Other operating income 642 763 2,887 3,037 Total non-interest income 8,803 7,379 35,056 30,417 Non-interest expense: Salaries and employee benefits 24,062 23,024 96,318 80,965 Equipment and occupancy expense 3,600 3,860 14,519 14,295 Third party processing and other services 8,515 7,841 31,181 27,872 Professional services 1,981 1,417 6,901 5,916 FDIC and other regulatory assessments 2,225 9,509 10,687 15,614 Other real estate owned expense 58 17 199 47 Other operating expense 6,455 12,590 21,341 33,342 Total non-interest expense 46,896 58,258 181,146 178,051 Income before income tax 79,371 47,226 278,982 244,588 Provision for income tax 14,198 5,152 51,740 37,735 Net income 65,173 42,074 227,242 206,853 Dividends on preferred stock 31 31 62 62 Net income available to common stockholders $ 65,142 $ 42,043 $ 227,180 $ 206,791 Basic earnings per common share $ 1.19 $ 0.77 $ 4.17 $ 3.80 Diluted earnings per common share $ 1.19 $ 0.77 $ 4.16 $ 3.79 LOANS BY TYPE (UNAUDITED) (In thousands) 4th quarter 2024 3rd quarter 2024 2nd quarter 2024 1st quarter 2024 4th quarter 2023 Commercial, financial and agricultural $ 2,869,894 $ 2,793,989 $ 2,935,577 $ 2,834,102 $ 2,823,986 Real estate - construction 1,489,306 1,439,648 1,510,677 1,546,716 1,519,619 Real estate - mortgage: Owner-occupied commercial 2,547,143 2,441,687 2,399,644 2,377,042 2,257,163 1-4 family mortgage 1,444,623 1,409,981 1,350,428 1,284,888 1,249,938 Non-owner occupied commercial 4,181,243 4,190,935 4,072,007 3,777,758 3,744,346 Subtotal: Real estate - mortgage 8,173,009 8,042,603 7,822,079 7,439,688 7,251,447 Consumer 73,627 61,986 64,447 60,190 63,777 Total loans $ 12,605,836 $ 12,338,226 $ 12,332,780 $ 11,880,696 $ 11,658,829 SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED) (Dollars in thousands)   4th quarter 2024 3rd quarter 2024 2nd quarter 2024 1st quarter 2024 4th quarter 2023 Allowance for credit losses:   Beginning balance   $ 160,755 $ 158,092 $ 155,892 $ 153,317 $ 152,247 Loans charged off:   Commercial, financial and agricultural   3,899 3,020 3,355 1,842 2,831 Real estate - construction   - - - - 89 Real estate - mortgage   560 252 119 67 14 Consumer   211 155 108 98 231 Total charge offs   4,670 3,427 3,582 2,007 3,165 Recoveries:   Commercial, financial and agricultural   1,801 616 406 199 614 Real estate - construction   - - 8 - - Real estate - mortgage   23 2 - 6 - Consumer   151 37 15 9 39 Total recoveries   1,975 655 429 214 653 Net charge-offs   2,695 2,772 3,153 1,793 2,512 Provision for credit losses   6,398 5,435 5,353 4,368 3,582 Ending balance   $ 164,458 $ 160,755 $ 158,092 $ 155,892 $ 153,317   Allowance for credit losses to total loans   1.30 % 1.30 % 1.28 % 1.31 % 1.32 %   Allowance for credit losses to total average loans   1.32 % 1.30 % 1.31 % 1.33 % 1.32 % Net charge-offs to total average loans   0.09 % 0.09 % 0.10 % 0.06 % 0.09 %   Provision for credit losses to total average loans   0.20 % 0.17 % 0.18 % 0.15 % 0.12 % Nonperforming assets:   Nonaccrual loans   $ 39,500 $ 37,075 $ 33,454 $ 34,457 $ 19,349 Loans 90+ days past due and accruing   2,965 2,093 1,482 380 2,184 Other real estate owned and   repossessed assets   2,531 2,723 1,458 490 995 Total   $ 44,996 $ 41,891 $ 36,394 $ 35,327 $ 22,528   Nonperforming loans to total loans   0.34 % 0.32 % 0.28 % 0.29 % 0.18 % Nonperforming assets to total assets   0.26 % 0.25 % 0.23 % 0.22 % 0.14 % Nonperforming assets to earning assets   0.26 % 0.26 % 0.23 % 0.23 % 0.14 % Allowance for credit losses to nonaccrual loans   416.35 % 433.59 % 472.57 % 452.42 % 795.17 %   CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024 1st Quarter 2024 4th Quarter 2023 Interest income: Interest and fees on loans $ 200,875 $ 205,952 $ 194,300 $ 186,978 $ 184,897 Taxable securities 16,905 17,493 16,158 15,979 15,512 Nontaxable securities 6 7 9 9 12 Federal funds sold 18 31 538 541 1,018 Other interest and dividends 26,088 24,496 16,535 23,203 27,623 Total interest income 243,892 247,979 227,540 226,710 229,062 Interest expense: Deposits 98,702 113,211 104,671 104,066 108,155 Borrowed funds 22,022 19,647 16,994 20,149 19,220 Total interest expense 120,724 132,858 121,665 124,215 127,375 Net interest income 123,168 115,121 105,875 102,495 101,687 Provision for credit losses 5,704 5,659 5,353 4,368 3,582 Net interest income after provision for credit losses 117,464 109,462 100,522 98,127 98,105 Non-interest income: Service charges on deposit accounts 2,650 2,341 2,293 2,150 2,181 Mortgage banking 1,513 1,352 1,379 678 792 Credit card income 1,867 1,925 2,333 2,155 2,004 Bank-owned life insurance income 2,131 2,113 2,058 3,231 1,639 Other operating income 642 818 828 599 763 Total non-interest income 8,803 8,549 8,891 8,813 7,379 Non-interest expense: Salaries and employee benefits 24,062 25,057 24,213 22,986 23,024 Equipment and occupancy expense 3,600 3,795 3,567 3,557 3,860 Third party processing and other services 8,515 8,035 7,465 7,166 7,841 Professional services 1,981 1,715 1,741 1,464 1,417 FDIC and other regulatory assessments 2,225 2,355 2,202 3,905 9,509 Other real estate owned expense 58 103 7 30 17 Other operating expense 6,455 4,572 3,623 7,195 12,590 Total non-interest expense 46,896 45,632 42,818 46,303 58,258 Income before income tax 79,371 72,379 66,595 60,637 47,226 Provision for income tax 14,198 12,472 14,459 10,611 5,152 Net income 65,173 59,907 52,136 50,026 42,074 Dividends on preferred stock 31 - 31 - 31 Net income available to common stockholders $ 65,142 $ 59,907 $ 52,105 $ 50,026 $ 42,043 Basic earnings per common share $ 1.19 $ 1.10 $ 0.96 $ 0.92 $ 0.77 Diluted earnings per common share $ 1.19 $ 1.10 $ 0.95 $ 0.92 $ 0.77 AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) ON A FULLY TAXABLE-EQUIVALENT BASIS (Dollars in thousands) 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024 1st Quarter 2024 4th 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 $ 12,414,065 6.43 % $ 12,351,073 6.63 % $ 12,045,743 6.48 % $ 11,723,391 6.41 % $ 11,580,716 6.33 % Tax-exempt (2) 13,198 1.57 15,584 1.86 17,230 2.08 17,605 5.00 17,787 4.71 Total loans, net of unearned income 12,427,263 6.43 12,366,657 6.62 12,062,973 6.48 11,740,996 6.40 11,598,503 6.32 Mortgage loans held for sale 9,642 5.36 10,674 3.80 6,761 6.13 4,770 5.57 5,105 6.22 Debt securities: Taxable 1,932,547 3.49 1,955,632 3.57 1,936,818 3.33 2,013,295 3.16 2,007,636 3.08 Tax-exempt (2) 606 5.28 815 4.42 1,209 3.64 1,296 3.40 1,739 2.30 Total securities (3) 1,933,153 3.49 1,956,447 3.57 1,938,027 3.33 2,014,591 3.16 2,009,375 3.08 Federal funds sold 1,596 4.49 2,106 5.86 38,475 5.62 37,298 5.83 72,178 5.60 Restricted equity securities 11,290 6.80 11,290 7.36 11,290 7.16 10,417 7.57 10,216 8.74 Interest-bearing balances with banks 2,143,474 4.81 1,775,192 5.46 1,183,482 5.57 1,687,977 5.48 1,981,411 5.49 Total interest-earning assets $ 16,526,418 5.87 % $ 16,122,366 6.12 % $ 15,241,008 6.01 % $ 15,496,049 5.88 % $ 15,676,788 5.80 % Non-interest-earning assets: Cash and due from banks 103,494 103,539 96,646 98,813 101,741 Net premises and equipment 60,708 60,607 59,653 60,126 60,110 Allowance for credit losses, accrued interest and other assets 346,763 340,621 300,521 302,592 283,435 Total assets $ 17,037,383 $ 16,627,133 $ 15,697,828 $ 15,957,580 $ 16,122,074 Interest-bearing liabilities: Interest-bearing deposits: Checking $ 2,353,439 2.61 % $ 2,318,384 2.97 % $ 2,227,527 2.85 % $ 2,339,548 2.69 % $ 2,245,431 2.91 % Savings 102,858 1.52 102,627 1.76 105,955 1.71 106,924 1.76 107,035 1.72 Money market 7,067,265 3.86 7,321,503 4.45 6,810,799 4.46 6,761,495 4.48 7,106,190 4.44 Time deposits 1,286,754 4.45 1,197,650 4.52 1,157,528 4.47 1,164,204 4.37 1,111,350 4.18 Total interest-bearing deposits 10,810,316 3.63 10,940,164 4.12 10,301,809 4.09 10,372,171 4.04 10,570,006 4.06 Federal funds purchased 1,767,749 4.80 1,391,118 5.42 1,193,190 5.50 1,422,828 5.50 1,338,110 5.49 Other borrowings 64,738 4.22 64,738 4.22 64,738 4.27 64,736 4.26 64,734 4.23 Total interest-bearing liabilities $ 12,642,803 3.80 % $ 12,396,020 4.26 % $ 11,559,737 4.23 % $ 11,859,735 4.21 % $ 11,972,850 4.22 % Non-interest-bearing liabilities: Non-interest-bearing checking 2,672,875 2,575,575 2,560,245 2,550,841 2,656,504 Other liabilities 130,457 122,455 89,418 91,066 76,651 Stockholders' equity 1,624,084 1,574,902 1,536,013 1,503,240 1,475,366 Accumulated other comprehensive loss (32,836 ) (41,819 ) (47,584 ) (47,302 ) (59,297 ) Total liabilities and stockholders' equity $ 17,037,383 $ 16,627,133 $ 15,697,828 $ 15,957,580 $ 16,122,074 Net interest spread 2.07 % 1.86 % 1.78 % 1.67 % 1.58 % Net interest margin 2.96 % 2.84 % 2.79 % 2.66 % 2.57 % (1) Average loans include nonaccrual loans in all periods. Loan fees of $4,460, $3,949, $3,317, $3,655, and $4,175 are included in interest income in the fourth quarter of 2024, third quarter of 2024, second quarter of 2024, first quarter of 2024, and fourth 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 $(44,073), $(48,770, $(67,823), $(68,162), and $(84,647) for the fourth quarter of 2024, third quarter of 2024, second quarter of 2024, first quarter of 2024, and fourth quarter of 2023, respectively, are excluded from the yield calculation.

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