ServisFirst Bancshares, Inc. Announces Results For First Quarter 2015
BIRMINGHAM, Ala., April 20, 2015 /PRNewswire/ -- ServisFirst Bancshares, Inc. ("ServisFirst") (NASDAQ: SFBS), the holding company for ServisFirst Bank, today announced earnings and operating results for the quarter ended March 31, 2015.
FIRST QUARTER 2015 HIGHLIGHTS:
- Core net income of $14.8 million, a 21% increase year over year
- Core EPS of $0.56 for the first quarter, excluding merger-related charges, a 6% increase year over year
- Loans and deposits increased 23% and 20%, respectively, year over year, led by organic growth
- Closed the acquisition of Metro Bancshares, Inc. in Atlanta on January 31, 2015
- Production team (excluding mortgage origination) increased from 91 to 110 in the first quarter, with eight added through the Metro Bank acquisition
Tom Broughton, President and CEO, said, "We are pleased to welcome our new bankers, as we had the largest increase in our production team during a period in our ten year history. We continue to believe that ServisFirst Bank is the best place for commercial and private bankers to provide service to their clients." Bud Foshee, CFO, stated, "Our focus for 2015 will be on improved net interest margins and continued quality customer service."
|
FINANCIAL SUMMARY | ||||||||||||||||||||
|
(in Thousands except share and per share amounts) |
||||||||||||||||||||
|
Period Ending March 31, 2015 |
Period EndingDecember 31, 2014 |
% Change From PeriodEnding December 31, 2014 to Period Ending March 31, 2015 |
Period EndingMarch 31, 2014 |
% ChangeFrom PeriodEnding March 31, 2014 toPeriod Ending March 31, 2015 | ||||||||||||||||
|
QUARTERLY OPERATING RESULTS |
||||||||||||||||||||
|
Net Income |
$ |
13,055 |
$ |
15,032 |
(13) |
% |
$ |
11,758 |
11 |
% | ||||||||||
|
Net Income Available to Common Stockholders |
$ |
12,955 |
$ |
14,917 |
(13) |
% |
$ |
11,658 |
11 |
% | ||||||||||
|
Diluted Earnings Per Share |
$ |
0.49 |
$ |
0.58 |
(16) |
% |
$ |
0.51 |
(4) |
% | ||||||||||
|
Return on Average Assets |
1.26 |
% |
1.47 |
% |
1.35 |
% |
||||||||||||||
|
Return on Average Common Stockholders' Equity |
13.55 |
% |
16.39 |
% |
17.83 |
% |
||||||||||||||
|
Average Diluted Shares Outstanding |
26,237,980 |
25,697,531 |
22,985,670 |
|||||||||||||||||
|
Core Net Income* |
$ |
14,822 |
$ |
15,032 |
(1) |
% |
$ |
12,215 |
21 |
% | ||||||||||
|
Core Net Income Available to Common Stockholders* |
$ |
14,722 |
$ |
14,917 |
(1) |
% |
$ |
12,115 |
22 |
% | ||||||||||
|
Core Diluted Earnings Per Share* |
$ |
0.56 |
$ |
0.58 |
(3) |
% |
$ |
0.53 |
6 |
% | ||||||||||
|
Core Return on Average Assets* |
1.43 |
% |
1.47 |
% |
1.42 |
% |
||||||||||||||
|
Core Return on Average Common Stockholders' Equity* |
15.39 |
% |
16.39 |
% |
18.53 |
% |
||||||||||||||
|
BALANCE SHEET |
||||||||||||||||||||
|
Total Assets |
$ |
4,393,342 |
$ |
4,098,679 |
7 |
% |
$ |
3,572,914 |
23 |
% | ||||||||||
|
Loans |
3,607,852 |
3,359,858 |
7 |
% |
2,937,797 |
23 |
% | |||||||||||||
|
Non-interest-bearing Demand Deposits |
866,743 |
810,460 |
7 |
% |
662,834 |
31 |
% | |||||||||||||
|
Total Deposits |
3,638,763 |
3,398,160 |
7 |
% |
3,031,041 |
20 |
% | |||||||||||||
|
Stockholders' Equity |
441,458 |
407,213 |
8 |
% |
312,283 |
41 |
% | |||||||||||||
|
* Core measures in the first quarter of 2015 exclude merger expenses related to the acquisition of Metro Bancshares, Inc. and reserves for losses in unfunded loan commitments and letters of credit resulting from our change in methodology for estimating such losses, and in the first quarter of 2014 resulting from a correction of our accounting for vested stock options previously granted to members of our advisory boards in our markets. For a reconciliation of these non-GAAP measures to the most comparable GAAP measure, see "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below. | ||||||||||||||||||||
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income of $13.1 million and net income available to common stockholders of $13.0 million for the quarter ended March 31, 2015, compared to net income of $11.8 million and net income available to common stockholders of $11.7 million for the same quarter in 2014. Net income for the quarter ended March 31, 2015 was impacted by $2.1 million in merger expenses related to the acquisition of Metro Bancshares, Inc. ("Metro"). Basic and diluted earnings per common share were $0.51 and $0.49, respectively, for the first quarter of 2015, compared to $0.53 and $0.51, respectively, for the first quarter of 2014. Excluding merger expenses and the initial funding of reserves for unfunded loan commitments, net of tax, basic and diluted earnings per common share were $0.58 and $0.56, respectively.
Return on average assets was 1.26% and return on average common stockholders' equity was 13.55% for the first quarter of 2015, compared to 1.35% and 17.83%, respectively, for the first quarter of 2014.
Net interest income was $37.0 million for the first quarter of 2015, compared to $34.5 million for the fourth quarter of 2014 and $30.8 million for the first quarter of 2014. The net interest margin in the first quarter of 2015 was 3.80%, a 24 basis point increase from the fourth quarter of 2014 and the same as the first quarter of 2014. Net accretion resulting from the fair value adjustments on acquired assets and assumed liabilities contributed 4 basis points to the net interest margin in the first quarter of 2015. The increase in net interest income on a linked quarter basis is attributable to a $276.8 million increase in average loans outstanding and a $26.8 million increase in average stockholders' equity, all resulting in a positive mix change in our balance sheet. The increase in net interest margin is the result of improved loan yields and lower average balances in federal funds at other banks and at the Federal Reserve, which earn a nominal interest rate.
Average loans for the first quarter of 2015 were $3.50 billion, an increase of $276.8 million, or 9%, over average loans of $3.23 billion for the fourth quarter of 2014, and an increase of $595.6 million, or 20%, over average loans of $2.91 billion for the first quarter of 2014. The increase in loans included approximately $152.9 million of loans acquired in the Metro acquisition.
Average total deposits for the first quarter of 2015 were $3.47 billion, an increase of $63.0 million, or 1.9%, over average total deposits of $3.41 billion for the fourth quarter of 2014, and an increase of $493.7 million, or 17%, over average total deposits of $2.97 billion for the first quarter of 2014. The increase in total average deposits included approximately $178.3 million of deposits acquired in the Metro acquisition as of February 1, 2015.
At March 31, 2015, non-performing assets to total assets were 0.40%, a decrease of one basis point compared to 0.41% for the fourth quarter of 2014 and a decrease of thirteen basis points compared to 0.53% for the first quarter of 2014. The amount of non-performing assets to total assets attributable to the acquisition of Metro was 0.08% for the first quarter of 2015. Net credit charge-offs to average loans were 0.08%, an eleven basis point decrease compared to 0.19% for the fourth quarter of 2014 and a nine basis point decrease compared to 0.17% for the first quarter of 2014. We recorded a $2.4 million provision for loan losses in the first quarter of 2015, a decrease of $0.4 million compared to $2.8 million in the fourth quarter of 2014 and an increase of $0.1 million compared to $2.3 million in the first quarter of 2014. The loan loss reserve as a percentage of total loans decreased two basis points to 1.04% at March 31, 2015, compared to 1.06% at December 31, 2014 and a decrease of four basis points compared to 1.08% at March 31, 2014. The decrease in loan loss reserve as a percentage of loans related to the acquisition of Metro was 0.03% for the first quarter of 2015. In management's opinion, the reserve is adequate and was determined by consistent application of ServisFirst Bank's methodology for calculating its reserve for loan losses.
Non-interest income increased $902,000 in the first quarter of 2015, or 41%, compared to the first quarter of 2014. Deposit service charges increased by $339,000, or 39%. Approximately 1,900 checking accounts were acquired in the Metro acquisition. Mortgage banking income increased $170,000, or 60%, as a result of increases in refinancing activity. Increases in the cash surrender value of our life insurance contracts resulted from added investments in contracts during the third quarter of 2014 and the addition of $2.7 million in contracts as a result of the Metro acquisition.
Non-interest expense for the first quarter of 2015 increased $5.1 million, or 37%, to $18.8 million from $13.7 million in the first quarter of 2014. Salary and benefit expense for the first quarter of 2015 increased $1.3 million, or 17%, to $9.0 million from $7.7 million in the first quarter of 2014, and increased $2.7 million, or 43%, on a linked quarter basis. Thirty-eight Metro employees came over as part of the acquisition on February 1, 2015 and 32 remain employed by the Company as of March 31, 2015. Eleven new sales officers, in addition to those from Metro, were added during the first quarter of 2015. Salary and benefit expense for the first quarter of 2014 includes a non-routine expense of $703,000 resulting from a correction of our accounting for vested stock options previously granted to members of our advisory boards in our Dothan, Huntsville and Montgomery, Alabama markets. Merger expenses related to the acquisition of Metro were $2.1 million in the first quarter of 2015. Other operating expense for the first quarter of 2015 increased $1.4 million, or 45%, to $4.6 million from $3.1 million in the first quarter of 2014. This increase was primarily attributable to $500,000 in expense for the initial funding of reserves for unfunded loan commitments as of March 31, 2015, consistent with guidance provided in the Federal Reserve Bank's Inter-agency Policy Statement SR 06-17, $140,000 of increased charges from the Federal Reserve Bank as part of our increased clearing services for correspondent bank clients, and $121,000 of other operating expenses in our Atlanta region.
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
As discussed in more detail in the section titled "Detailed Financials," we recorded expenses of $2.1 million for the first quarter of 2015 related to the acquisition of Metro Bancshares, Inc. and the merger of Metro Bank with and into the Bank, and recorded an expense of $500,000 resulting from the initial funding of reserves for unfunded loan commitments as of March 31, 2015, consistent with guidance provided in the Federal Reserve Bank's Inter-agency Policy Statement SR 06-17. We recorded a non-routine expense of $703,000 for the first quarter of 2014 resulting from the correction of our accounting for vested stock options previously granted to members of our advisory boards in our Dothan, Huntsville and Montgomery, Alabama markets. This change in accounting treatment is a non-cash item and does not impact our operating activities or cash from operations. The non-GAAP financial measures included in this press release of our results for the first quarter of 2015 are "core net income," "core net income available to common stockholders," "core diluted earnings per share," "core return on average assets" and "core return on average common stockholders' equity." Each of these five core financial measures excludes the impact of the merger expenses, the initial funding of a reserve for unfunded loan commitments, and the non-routine expense attributable to the correction of our accounting for vested stock options. None of the other periods included in this press release are affected by such non-routine expenses.
"Core net income" is defined as net income, adjusted by the net effect of the non-routine expense.
"Core net income available to common stockholders" is defined as net income available to common stockholders, adjusted by the net effect of the non-routine expense.
"Core diluted earnings per share" is defined as net income available to common stockholders, adjusted by the net effect of the non-routine expense, divided by weighted average diluted shares outstanding.
"Core return on average assets" is defined as net income, adjusted by the net effect of the non-routine expense, divided by average total assets.
"Core return on average common stockholders' equity" is defined as net income, adjusted by the net effect of the non-routine expense, divided by average common stockholders' equity.
We present tangible book value per share and the ratio of tangible common equity to total tangible assets in our Selected Financial Highlights table. Our acquisition of Metro resulted in goodwill and other identifiable intangible assets, which are subtracted from equity and assets in the computation of tangible book value per share and tangible common equity to total tangible assets.
We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures for the first quarter of 2015 and the first quarter of 2014. Dollars are in thousands, except share and per share data.
|
For the Period Ended March 31,2015 |
For the Period Ended March 31, 2014 |
|||||||||
|
Provision for income taxes - GAAP |
$ |
5,903 |
$ |
5,229 |
||||||
|
Adjustments: |
||||||||||
|
Adjustment for non-routine expense |
829 |
246 |
||||||||
|
Core provision for income taxes |
$ |
6,732 |
$ |
5,475 |
||||||
|
Return on average assets - GAAP |
1.26 |
% |
1.35 |
% |
||||||
|
Net income - GAAP |
$ |
13,055 |
$ |
11,758 |
||||||
|
Adjustments: |
||||||||||
|
Adjustment for non-routine expense |
1,767 |
457 |
||||||||
|
Core net income |
$ |
14,822 |
$ |
12,215 |
||||||
|
Average assets |
$ |
4,193,413 |
$ |
3,500,257 |
||||||
|
Core return on average assets |
1.43 |
% |
1.42 |
% |
||||||
|
Return on average common stockholders' equity |
13.55 |
% |
17.83 |
% |
||||||
|
Net income available to common stockholders - GAAP |
$ |
12,955 |
$ |
11,658 |
||||||
|
Adjustments: |
||||||||||
|
Adjustment for non-routine expense |
1,767 |
457 |
||||||||
|
Core net income available to common stockholders |
$ |
14,722 |
$ |
12,115 |
||||||
|
Average common stockholders' equity |
$ |
387,870 |
$ |
265,188 |
||||||
|
Core return on average common stockholders' equity |
15.39 |
% |
18.53 |
% |
||||||
|
Earnings per share - diluted - GAAP |
$ |
0.49 |
$ |
0.51 |
||||||
|
Weighted average shares outstanding, diluted |
26,237,980 |
22,985,670 |
||||||||
|
Core diluted earnings per share |
$ |
0.56 |
$ |
0.53 |
||||||
|
Book value per share |
$ |
15.65 |
||||||||
|
Total common stockholders' equity - GAAP |
401,500 |
|||||||||
|
Adjustments: |
||||||||||
|
Adjusted for goodwill and other identifiable intangible assets |
18,069 |
|||||||||
|
Tangible common stockholders' equity |
$ |
383,431 |
||||||||
|
Tangible bookvalue per share |
$ |
14.95 |
||||||||
|
Stockholders' equity to total assets |
10.05 |
% |
||||||||
|
Total assets - GAAP |
$ |
4,393,342 |
||||||||
|
Adjustments: |
||||||||||
|
Adjusted for goodwill and other identifiable intangible assets |
18,069 |
|||||||||
|
Total tangible assets |
$ |
4,375,273 |
||||||||
|
Tangible common equity to total tangible assets |
8.76 |
% |
||||||||
About ServisFirst Bancshares, Inc.
ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Birmingham, Huntsville, Montgomery, Mobile and Dothan, Alabama, Pensacola, Florida, Nashville, Tennessee, Atlanta, Georgia, and Charleston, South Carolina.
ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC's website at www.sec.gov or at www.servisfirstbank.com.
Webcast
As previously announced, ServisFirst will host a live audio webcast to discuss first quarter earnings and results beginning at 9:30 a.m. ET on April 21, 2015. The webcast can be accessed at www.servisfirstbank.com on the "Investor Relations" page in the "Events and Webcasts" section. A replay of the call will be available until April 30, 2015.
Additional Information
This release contains, and the remarks by ServisFirst's management on the live audio webcast may contain, forward-looking statements within the meaning of the securities laws giving ServisFirst's expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," "positions," "prospects" or "potential," by future conditional verbs such as "will," "would," "should," "could" or "may", or by variations of such words or by similar expressions. These forward-looking statements are not guarantees of future performance and are subject to numerous assumptions, risks and uncertainties, many of which are outside of ServisFirst's control and which may change over time and cause actual results to differ materially from those expressed or implied by the forward-looking statements. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to "Cautionary Note Regarding Forward-looking Statements" and "Risk Factors" in our most recent Annual Report on Form 10-K and to our other filings with the U.S. Securities and Exchange Commission ("SEC"). Forward-looking statements speak only as of the date they are made, and ServisFirst assumes no duty to update forward-looking statements.
CONTACT: ServisFirst BankDavis Mange (205) 949-3420[email protected]
|
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) |
||||||||||||||||||||
|
(In thousands except share and per share data) |
||||||||||||||||||||
|
1st Quarter 2015 |
4th Quarter 2014 |
3rd Quarter 2014 |
2nd Quarter 2014 |
1st Quarter 2014 | ||||||||||||||||
|
CONSOLIDATED STATEMENT OF INCOME |
||||||||||||||||||||
|
Interest income |
$ |
40,783 |
$ |
38,163 |
$ |
36,857 |
$ |
35,424 |
$ |
34,281 |
||||||||||
|
Interest expense |
3,746 |
3,703 |
3,538 |
3,446 |
3,432 |
|||||||||||||||
|
Net interest income |
37,037 |
34,460 |
33,319 |
31,978 |
30,849 |
|||||||||||||||
|
Provision for loan losses |
2,405 |
2,759 |
2,748 |
2,438 |
2,314 |
|||||||||||||||
|
Net interest income after provision for loan losses |
34,632 |
31,701 |
30,571 |
29,540 |
28,535 |
|||||||||||||||
|
Non-interest income |
3,077 |
3,110 |
3,006 |
2,938 |
2,175 |
|||||||||||||||
|
Non-interest expense |
18,751 |
13,143 |
15,315 |
15,417 |
13,723 |
|||||||||||||||
|
Income before income tax |
18,958 |
21,668 |
18,262 |
17,061 |
16,987 |
|||||||||||||||
|
Provision for income tax |
5,903 |
6,636 |
4,260 |
5,476 |
5,229 |
|||||||||||||||
|
Net income |
13,055 |
15,032 |
14,002 |
11,585 |
11,758 |
|||||||||||||||
|
Preferred stock dividends |
100 |
115 |
100 |
116 |
100 |
|||||||||||||||
|
Net income available to common stockholders |
$ |
12,955 |
$ |
14,917 |
$ |
13,902 |
$ |
11,469 |
$ |
11,658 |
||||||||||
|
Earnings per share - basic |
$ |
0.51 |
$ |
0.60 |
$ |
0.56 |
$ |
0.49 |
$ |
0.53 |
||||||||||
|
Earnings per share - diluted |
$ |
0.49 |
$ |
0.58 |
$ |
0.54 |
$ |
0.46 |
$ |
0.51 |
||||||||||
|
Average diluted shares outstanding |
26,237,980 |
25,697,531 |
25,726,313 |
24,823,590 |
22,985,670 |
|||||||||||||||
|
CONSOLIDATED BALANCE SHEET DATA |
||||||||||||||||||||
|
Total assets |
$ |
4,393,342 |
$ |
4,098,679 |
$ |
3,952,799 |
$ |
3,762,684 |
$ |
3,572,914 |
||||||||||
|
Loans |
3,607,852 |
3,359,858 |
3,159,772 |
3,053,989 |
2,937,797 |
|||||||||||||||
|
Debt securities |
336,505 |
327,665 |
332,351 |
325,432 |
309,475 |
|||||||||||||||
|
Non-interest-bearing demand deposits |
866,743 |
810,460 |
794,553 |
729,163 |
662,834 |
|||||||||||||||
|
Total deposits |
3,638,763 |
3,398,160 |
3,352,766 |
3,157,642 |
3,031,041 |
|||||||||||||||
|
Borrowings |
21,278 |
19,973 |
19,965 |
19,957 |
19,949 |
|||||||||||||||
|
Stockholders' equity |
$ |
441,458 |
$ |
407,213 |
$ |
393,136 |
$ |
380,074 |
$ |
312,283 |
||||||||||
|
Shares outstanding |
25,653,610 |
24,801,518 |
24,791,436 |
24,749,436 |
22,574,436 |
|||||||||||||||
|
Book value per share |
$ |
15.65 |
$ |
14.81 |
$ |
14.25 |
$ |
13.74 |
$ |
12.06 |
||||||||||
|
Tangible book value per share (1) |
$ |
14.95 |
$ |
14.81 |
$ |
14.25 |
$ |
13.74 |
$ |
12.06 |
||||||||||
|
SELECTED FINANCIAL RATIOS |
||||||||||||||||||||
|
Net interest margin |
3.80 |
% |
3.56 |
% |
3.65 |
% |
3.74 |
% |
3.80 |
% | ||||||||||
|
Return on average assets |
1.26 |
% |
1.47 |
% |
1.45 |
% |
1.28 |
% |
1.36 |
% | ||||||||||
|
Return on average common stockholders' equity |
13.55 |
% |
16.39 |
% |
15.89 |
% |
15.03 |
% |
17.83 |
% | ||||||||||
|
Efficiency ratio |
46.74 |
% |
34.98 |
% |
42.16 |
% |
44.15 |
% |
41.55 |
% | ||||||||||
|
Non-interest expense to average earning assets |
1.90 |
% |
1.34 |
% |
1.66 |
% |
1.78 |
% |
1.66 |
% | ||||||||||
|
Tangible common equity to total tangible assets (1) |
8.76 |
% |
8.96 |
% |
8.93 |
% |
9.04 |
% |
7.62 |
% | ||||||||||
|
CAPITAL RATIOS |
||||||||||||||||||||
|
Total Capital to Risk-Weighted Assets: |
13.09 |
% |
13.38 |
% |
13.70 |
% |
13.74 |
% |
11.94 |
% | ||||||||||
|
Tier 1 Capital to Risk-Weighted Assets: |
11.51 |
% |
11.75 |
% |
12.02 |
% |
12.04 |
% |
10.22 |
% | ||||||||||
|
Tier 1 Capital to Average Assets: |
10.06 |
% |
9.91 |
% |
10.18 |
% |
10.32 |
% |
8.81 |
% | ||||||||||
|
Common Equity Tier 1 Capital to Risk-Weighted Assets (2): |
10.41 |
% |
N/A |
N/A |
N/A |
N/A |
||||||||||||||
|
(1) See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for a discussion of these Non-GAAP financial measures. | ||||||||||||||||||||
|
(2) Basel III final capital rules, including the new Common Equity Tier I Capital to Risk-Weighted Assets ratio, became effective for the Company on January 1, 2015. | ||||||||||||||||||||
|
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||||||
|
(In thousands) |
||||||||||||
|
March 31, 2015 |
March 31, 2014 |
% Change |
||||||||||
|
ASSETS |
||||||||||||
|
Cash and cash equivalents |
299,679 |
222,492 |
34 |
% |
||||||||
|
Available for sale debt securities, at fair value |
307,379 |
277,501 |
11 |
% |
||||||||
|
Held to maturity debt securities (fair value of $29,886 and $31,559 at |
||||||||||||
|
March 31, 2015 and 2014, respectively) |
29,126 |
31,974 |
(9) |
% |
||||||||
|
Restricted equity securities |
4,853 |
3,738 |
30 |
% |
||||||||
|
Mortgage loans held for sale |
12,384 |
6,704 |
85 |
% |
||||||||
|
Loans |
3,607,852 |
2,937,797 |
23 |
% |
||||||||
|
Less allowance for loan losses |
(37,356) |
(31,728) |
18 |
% |
||||||||
|
Loans, net |
3,570,496 |
2,906,069 |
23 |
% |
||||||||
|
Premises and equipment, net |
16,082 |
8,015 |
101 |
% |
||||||||
|
Goodwill and other identifiable intangible assets |
18,069 |
- |
||||||||||
|
Other assets |
135,274 |
116,421 |
32 |
% |
||||||||
|
Total assets |
$ |
4,393,342 |
$ |
3,572,914 |
23 |
% |
||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||||
|
Liabilities: |
||||||||||||
|
Deposits: |
||||||||||||
|
Non-interest-bearing |
$ |
866,743 |
$ |
662,834 |
31 |
% |
||||||
|
Interest-bearing |
2,772,020 |
2,368,207 |
17 |
% |
||||||||
|
Total deposits |
3,638,763 |
3,031,041 |
20 |
% |
||||||||
|
Federal funds purchased |
280,900 |
195,762 |
43 |
% |
||||||||
|
Other borrowings |
21,278 |
19,949 |
7 |
% |
||||||||
|
Other liabilities |
10,943 |
13,879 |
(21) |
% |
||||||||
|
Total liabilities |
3,951,884 |
3,260,631 |
21 |
% |
||||||||
|
Stockholders' equity: |
||||||||||||
|
Preferred stock, Series A Senior Non-Cumulative Perpetual, par value $0.001 |
||||||||||||
|
(liquidation preference $1,000), net of discount; 40,000 shares authorized, |
||||||||||||
|
40,000 shares issued and outstanding at March 31, 2015 and 2014 |
39,958 |
39,958 |
- |
% |
||||||||
|
Common stock, par value $0.0001 per share; 50,000,000 shares authorized; |
||||||||||||
|
25,653,610 shares issued and outstanding at March 31, 2015 and |
||||||||||||
|
22,574,436 shares issued and outstanding at March 31, 2014 |
26 |
8 |
225 |
% |
||||||||
|
Additional paid-in capital |
207,374 |
127,218 |
63 |
% |
||||||||
|
Retained earnings |
188,507 |
140,538 |
34 |
% |
||||||||
|
Accumulated other comprehensive income |
5,216 |
4,309 |
21 |
% |
||||||||
|
Noncontrolling interest |
377 |
252 |
50 |
% |
||||||||
|
Total stockholders' equity |
441,458 |
312,283 |
41 |
% |
||||||||
|
Total liabilities and stockholders' equity |
$ |
4,393,342 |
$ |
3,572,914 |
23 |
% |
||||||
|
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||
|
(In thousands except per share data) | ||||||||
|
Three Months Ended March 31, | ||||||||
|
2015 |
2014 | |||||||
|
Interest income: |
||||||||
|
Interest and fees on loans |
$ |
38,646 |
$ |
32,252 | ||||
|
Taxable securities |
1,128 |
1,097 | ||||||
|
Nontaxable securities |
860 |
871 | ||||||
|
Federal funds sold |
77 |
42 | ||||||
|
Other interest and dividends |
72 |
19 | ||||||
|
Total interest income |
40,783 |
34,281 | ||||||
|
Interest expense: |
||||||||
|
Deposits |
3,270 |
3,014 | ||||||
|
Borrowed funds |
476 |
418 | ||||||
|
Total interest expense |
3,746 |
3,432 | ||||||
|
Net interest income |
37,037 |
30,849 | ||||||
|
Provision for loan losses |
2,405 |
2,314 | ||||||
|
Net interest income after provision for loan losses |
34,632 |
28,535 | ||||||
|
Non-interest income: |
||||||||
|
Service charges on deposit accounts |
1,207 |
868 | ||||||
|
Mortgage banking |
454 |
284 | ||||||
|
Securities gains |
29 |
- | ||||||
|
Increase in cash surrender value life insurance |
648 |
536 | ||||||
|
Other operating income |
739 |
487 | ||||||
|
Total non-interest income |
3,077 |
2,175 | ||||||
|
Non-interest expense: |
||||||||
|
Salaries and employee benefits |
9,008 |
7,697 | ||||||
|
Equipment and occupancy expense |
1,661 |
1,366 | ||||||
|
Professional services |
568 |
516 | ||||||
|
FDIC and other regulatory assessments |
620 |
517 | ||||||
|
Other real estate owned expense |
214 |
487 | ||||||
|
Merger expenses |
2,096 |
- | ||||||
|
Other operating expense |
4,584 |
3,140 | ||||||
|
Total non-interest expense |
18,751 |
13,723 | ||||||
|
Income before income tax |
18,958 |
16,987 | ||||||
|
Provision for income tax |
5,903 |
5,229 | ||||||
|
Net income |
13,055 |
11,758 | ||||||
|
Dividends on preferred stock |
100 |
100 | ||||||
|
Net income available to common stockholders |
$ |
12,955 |
$ |
11,658 | ||||
|
Basic earnings per common share |
$ |
0.51 |
$ |
0.53 | ||||
|
Diluted earnings per common share |
$ |
0.49 |
$ |
0.51 | ||||
|
LOANS BY TYPE |
|||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||
|
(In thousands) |
|||||||||||||||||
|
1st Quarter 2015 |
4th Quarter 2014 |
3rd Quarter 2014 |
2nd Quarter 2014 |
1st Quarter 2014 |
|||||||||||||
|
Commercial, financial and agricultural |
$ |
1,543,531 |
$ |
1,495,092 |
$ |
1,382,607 |
$ |
1,362,757 |
$ |
1,306,058 |
|||||||
|
Real estate - construction |
219,005 |
208,769 |
194,506 |
178,033 |
157,127 |
||||||||||||
|
Real estate - mortgage: |
|||||||||||||||||
|
Owner-occupied commercial |
869,724 |
793,917 |
773,432 |
708,294 |
711,067 |
||||||||||||
|
1-4 family mortgage |
375,770 |
333,455 |
314,778 |
296,220 |
285,368 |
||||||||||||
|
Other mortgage |
545,668 |
471,363 |
443,245 |
457,845 |
428,391 |
||||||||||||
|
Subtotal: Real estate - mortgage |
1,791,162 |
1,598,735 |
1,531,455 |
1,462,359 |
1,424,826 |
||||||||||||
|
Consumer |
54,154 |
57,262 |
51,204 |
50,840 |
49,786 |
||||||||||||
|
Total loans |
$ |
3,607,852 |
$ |
3,359,858 |
$ |
3,159,772 |
$ |
3,053,989 |
$ |
2,937,797 |
|||||||
|
SUMMARY OF LON LOSS EXPERIENCE |
||||||||||||||||||||||||
|
(Dollars in thousands) |
||||||||||||||||||||||||
|
1st Quarter 2015 |
4th Quarter 2014 |
3rd Quarter 2014 |
2nd Quarter 2014 |
1st Quarter 2014 |
||||||||||||||||||||
|
Reserve for loan losses: |
||||||||||||||||||||||||
|
Beginning balance |
$ |
35,629 |
$ |
34,442 |
$ |
32,984 |
$ |
31,728 |
$ |
30,663 |
||||||||||||||
|
Loans charged off: |
||||||||||||||||||||||||
|
Commercial financial and agricultural |
77 |
416 |
531 |
142 |
1,222 |
|||||||||||||||||||
|
Real estate - construction |
382 |
309 |
610 |
325 |
23 |
|||||||||||||||||||
|
Real estate - mortgage: |
433 |
922 |
149 |
890 |
4 |
|||||||||||||||||||
|
Consumer |
5 |
21 |
131 |
18 |
58 |
|||||||||||||||||||
|
Total charge offs |
897 |
1,668 |
1,421 |
1,375 |
1,307 |
|||||||||||||||||||
|
Recoveries: |
||||||||||||||||||||||||
|
Commercial financial and agricultural |
19 |
2 |
- |
1 |
45 |
|||||||||||||||||||
|
Real estate - construction |
99 |
37 |
97 |
180 |
8 |
|||||||||||||||||||
|
Real estate - mortgage: |
101 |
46 |
14 |
10 |
4 |
|||||||||||||||||||
|
Consumer |
- |
11 |
20 |
2 |
1 |
|||||||||||||||||||
|
Total recoveries |
219 |
96 |
131 |
193 |
58 |
|||||||||||||||||||
|
Net charge-offs |
678 |
1,572 |
1,290 |
1,182 |
1,249 |
|||||||||||||||||||
|
Provision for loan losses |
2,405 |
2,759 |
2,748 |
2,438 |
2,314 |
|||||||||||||||||||
|
Ending balance |
$ |
37,356 |
$ |
35,629 |
$ |
34,442 |
$ |
32,984 |
$ |
31,728 |
||||||||||||||
|
Reserve for loan losses to total loans |
1.04 |
% |
1.06 |
% |
1.09 |
% |
1.08 |
% |
1.08 |
% |
||||||||||||||
|
Reserve for loan losses to total average |
||||||||||||||||||||||||
|
loans |
1.07 |
% |
1.10 |
% |
1.11 |
% |
1.10 |
% |
1.09 |
% |
||||||||||||||
|
Net charge-offs to total average loans |
0.08 |
% |
0.19 |
% |
0.17 |
% |
0.16 |
% |
0.17 |
% |
||||||||||||||
|
Provision for loan losses to total average |
||||||||||||||||||||||||
|
loans |
0.28 |
% |
0.34 |
% |
0.35 |
% |
0.33 |
% |
0.32 |
% |
||||||||||||||
|
Nonperforming assets: |
||||||||||||||||||||||||
|
Nonaccrual loans |
$ |
8,361 |
$ |
9,125 |
$ |
16,078 |
$ |
13,193 |
$ |
9,084 |
||||||||||||||
|
Loans 90+ days past due and accruing |
553 |
925 |
1,190 |
- |
110 |
|||||||||||||||||||
|
Other real estate owned and |
||||||||||||||||||||||||
|
repossessed assets |
8,638 |
6,840 |
6,940 |
6,739 |
9,752 |
|||||||||||||||||||
|
Total |
$ |
17,552 |
$ |
16,890 |
$ |
24,208 |
$ |
19,932 |
$ |
18,946 |
||||||||||||||
|
Nonperforming loans to total loans |
0.25 |
% |
0.30 |
% |
0.55 |
% |
0.43 |
% |
0.31 |
% |
||||||||||||||
|
Nonperforming assets to total assets |
0.40 |
% |
0.41 |
% |
0.61 |
% |
0.53 |
% |
0.53 |
% |
||||||||||||||
|
Nonperforming assets to earning assets |
0.41 |
% |
0.42 |
% |
0.62 |
% |
0.54 |
% |
0.55 |
% |
||||||||||||||
|
Reserve for loan losses to nonaccrual loans |
446.79 |
% |
390.45 |
% |
214.22 |
% |
250.01 |
% |
349.27 |
% |
||||||||||||||
|
Restructured accruing loans |
$ |
8,280 |
$ |
8,295 |
$ |
2,067 |
$ |
7,030 |
$ |
9,411 |
||||||||||||||
|
Restructured accruing loans to total loans |
0.23 |
% |
0.25 |
% |
0.07 |
% |
0.23 |
% |
0.32 |
% |
||||||||||||||
|
TROUBLED DEBT RESTRUCTURINGS (TDRs) |
||||||||||||||||||||||||
|
(In thousands) |
||||||||||||||||||||||||
|
1st Quarter 2015 |
4th Quarter 2014 |
3rd Quarter 2014 |
2nd Quarter 2014 |
1st Quarter 2014 |
||||||||||||||||||||
|
Beginning balance: |
$ |
8,992 |
$ |
7,932 |
$ |
9,217 |
$ |
13,478 |
$ |
14,168 |
||||||||||||||
|
Additions |
- |
6,250 |
- |
1,409 |
- |
|||||||||||||||||||
|
Net (paydowns) / advances |
(381) |
(4,492) |
(802) |
(5,080) |
235 |
|||||||||||||||||||
|
Charge-offs |
(331) |
(698) |
(483) |
(590) |
(925) |
|||||||||||||||||||
|
$ |
8,280 |
$ |
8,992 |
$ |
7,932 |
$ |
9,217 |
$ |
13,478 |
|||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|||||||||||||||||
|
(In thousands except per share data) |
|||||||||||||||||
|
1st Quarter2015 |
4th Quarter2014 |
3rd Quarter2014 |
2nd Quarter2014 |
1st Quarter 2014 | |||||||||||||
|
Interest income: |
|||||||||||||||||
|
Interest and fees on loans |
$ |
38,646 |
$ |
35,902 |
$ |
34,662 |
$ |
33,250 |
$ |
32,252 | |||||||
|
Taxable securities |
1,128 |
1,143 |
1,131 |
1,126 |
1,097 | ||||||||||||
|
Nontaxable securities |
860 |
871 |
877 |
870 |
871 | ||||||||||||
|
Federal funds sold |
77 |
41 |
38 |
43 |
42 | ||||||||||||
|
Other interest and dividends |
72 |
206 |
149 |
135 |
19 | ||||||||||||
|
Total interest income |
40,783 |
38,163 |
36,857 |
35,424 |
34,281 | ||||||||||||
|
Interest expense: |
|||||||||||||||||
|
Deposits |
3,270 |
3,256 |
3,123 |
3,027 |
3,014 | ||||||||||||
|
Borrowed funds |
476 |
447 |
415 |
419 |
418 | ||||||||||||
|
Total interest expense |
3,746 |
3,703 |
3,538 |
3,446 |
3,432 | ||||||||||||
|
Net interest income |
37,037 |
34,460 |
33,319 |
31,978 |
30,849 | ||||||||||||
|
Provision for loan losses |
2,405 |
2,759 |
2,748 |
2,438 |
2,314 | ||||||||||||
|
Net interest income after provision for loan losses |
34,632 |
31,701 |
30,571 |
29,540 |
28,535 | ||||||||||||
|
Non-interest income: |
|||||||||||||||||
|
Service charges on deposit accounts |
1,207 |
1,168 |
1,172 |
1,057 |
868 | ||||||||||||
|
Mortgage banking |
454 |
507 |
582 |
674 |
284 | ||||||||||||
|
Securities gains |
29 |
- |
3 |
- |
- | ||||||||||||
|
Increase in cash surrender value life insurance |
648 |
649 |
549 |
546 |
536 | ||||||||||||
|
Other operating income |
739 |
786 |
700 |
661 |
487 | ||||||||||||
|
Total non-interest income |
3,077 |
3,110 |
3,006 |
2,938 |
2,175 | ||||||||||||
|
Non-interest expense: |
|||||||||||||||||
|
Salaries and employee benefits |
9,008 |
6,332 |
7,890 |
9,098 |
7,697 | ||||||||||||
|
Equipment and occupancy expense |
1,661 |
1,335 |
1,437 |
1,409 |
1,366 | ||||||||||||
|
Professional services |
568 |
558 |
829 |
532 |
516 | ||||||||||||
|
FDIC and other regulatory assessments |
620 |
516 |
533 |
528 |
517 | ||||||||||||
|
Other real estate owned expense |
214 |
528 |
220 |
298 |
487 | ||||||||||||
|
Merger expense |
2,096 |
- |
- |
- |
- | ||||||||||||
|
Other operating expense |
4,584 |
3,874 |
4,406 |
3,552 |
3,140 | ||||||||||||
|
Total non-interest expense |
18,751 |
13,142 |
15,315 |
15,417 |
13,723 | ||||||||||||
|
Income before income tax |
18,958 |
21,668 |
18,262 |
17,061 |
16,987 | ||||||||||||
|
Provision for income tax |
5,903 |
6,636 |
4,260 |
5,476 |
5,229 | ||||||||||||
|
Net income |
13,055 |
15,032 |
14,002 |
11,585 |
11,758 | ||||||||||||
|
Dividends on preferred stock |
100 |
115 |
100 |
116 |
100 | ||||||||||||
|
Net income available to common stockholders |
$ |
12,955 |
$ |
14,917 |
$ |
13,902 |
$ |
11,469 |
$ |
11,658 | |||||||
|
Basic earnings per common share |
$ |
0.51 |
$ |
0.60 |
$ |
0.56 |
$ |
0.49 |
$ |
0.53 | |||||||
|
Diluted earnings per common share |
$ |
0.49 |
$ |
0.58 |
$ |
0.54 |
$ |
0.46 |
$ |
0.51 | |||||||
|
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS - UNAUDITED |
|||||||||||||||||||||||||||||||||||
|
ON A FULLY TAXABLE-EQUIVALENT BASIS |
|||||||||||||||||||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||||||||||||||||||
|
1st Quarter 2015 |
4th Quarter 2014 |
3rd Quarter 2014 |
2nd Quarter 2014 |
1st Quarter 2014 |
|||||||||||||||||||||||||||||||
|
Average Balance |
Yield / Rate |
Average Balance |
Yield / Rate |
Average Balance |
Yield / Rate |
Average Balance |
Yield / Rate |
Average Balance |
Yield / Rate |
||||||||||||||||||||||||||
|
Assets: |
|||||||||||||||||||||||||||||||||||
|
Interest-earning assets: |
|||||||||||||||||||||||||||||||||||
|
Loans, net of unearned income (1) (4) |
|||||||||||||||||||||||||||||||||||
|
Taxable |
$ |
3,492,363 |
4.47 |
% |
$ |
3,215,400 |
4.41 |
% |
$ |
3,081,435 |
4.44 |
% |
$ |
2,978,631 |
4.46 |
% |
$ |
2,892,433 |
4.52 |
% |
|||||||||||||||
|
Tax-exempt (2) |
10,180 |
5.03 |
10,367 |
4.98 |
12,043 |
4.95 |
15,803 |
3.24 |
14,550 |
3.30 |
|||||||||||||||||||||||||
|
Mortgage loans held for sale |
6,884 |
2.12 |
3,410 |
6.05 |
6,861 |
3.64 |
8,048 |
3.24 |
4,496 |
2.80 |
|||||||||||||||||||||||||
|
Debt securities: |
|||||||||||||||||||||||||||||||||||
|
Taxable |
198,104 |
2.28 |
195,533 |
2.30 |
195,220 |
2.29 |
188,148 |
2.40 |
174,842 |
2.54 |
|||||||||||||||||||||||||
|
Tax-exempt (2) |
129,525 |
4.02 |
127,909 |
4.16 |
126,512 |
4.05 |
123,897 |
4.11 |
122,686 |
4.13 |
|||||||||||||||||||||||||
|
Total securities (3) |
327,629 |
2.97 |
323,442 |
3.03 |
321,732 |
2.98 |
312,045 |
3.08 |
297,528 |
3.20 |
|||||||||||||||||||||||||
|
Federal funds sold |
39,438 |
0.27 |
68,640 |
0.24 |
57,625 |
0.27 |
41,388 |
0.37 |
54,895 |
0.31 |
|||||||||||||||||||||||||
|
Restricted equity securities |
4,354 |
3.63 |
3,418 |
3.95 |
3,418 |
3.83 |
3,446 |
7.57 |
3,738 |
- |
|||||||||||||||||||||||||
|
Interest-bearing balances with banks |
119,195 |
0.28 |
273,496 |
0.26 |
185,716 |
0.25 |
121,532 |
0.25 |
82,279 |
0.09 |
|||||||||||||||||||||||||
|
Total interest-earning assets |
4,000,043 |
4.18 |
% |
3,898,173 |
3.94 |
% |
3,668,830 |
4.03 |
% |
3,480,893 |
4.13 |
% |
3,349,919 |
4.21 |
% |
||||||||||||||||||||
|
Non-interest-earning assets: |
|||||||||||||||||||||||||||||||||||
|
Cash and due from banks |
61,911 |
58,973 |
58,340 |
57,387 |
56,082 |
||||||||||||||||||||||||||||||
|
Net premises and equipment |
13,847 |
8,315 |
8,310 |
8,377 |
8,724 |
||||||||||||||||||||||||||||||
|
Allowance for loan losses, |
|||||||||||||||||||||||||||||||||||
|
accrued interest and |
|||||||||||||||||||||||||||||||||||
|
other assets |
117,612 |
101,831 |
86,901 |
88,849 |
85,532 |
||||||||||||||||||||||||||||||
|
Total assets |
$ |
4,193,413 |
$ |
4,067,292 |
$ |
3,822,381 |
$ |
3,635,506 |
$ |
3,500,257 |
|||||||||||||||||||||||||
|
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||||||||
|
Interest-bearing deposits: |
|||||||||||||||||||||||||||||||||||
|
Checking |
$ |
553,569 |
0.26 |
% |
$ |
511,451 |
0.26 |
% |
$ |
484,291 |
0.26 |
% |
$ |
482,115 |
0.27 |
% |
$ |
478,678 |
0.27 |
% |
|||||||||||||||
|
Savings |
36,128 |
0.28 |
28,806 |
0.29 |
26,584 |
0.28 |
25,406 |
0.28 |
25,081 |
0.27 |
|||||||||||||||||||||||||
|
Money market |
1,618,715 |
0.44 |
1,645,533 |
0.45 |
1,555,091 |
0.44 |
1,472,346 |
0.44 |
1,416,645 |
0.45 |
|||||||||||||||||||||||||
|
Time deposits (5) |
446,084 |
1.05 |
395,598 |
1.03 |
394,158 |
1.05 |
402,613 |
1.08 |
412,622 |
1.10 |
|||||||||||||||||||||||||
|
Federal funds purchased |
270,549 |
0.28 |
231,135 |
0.28 |
187,629 |
0.28 |
195,809 |
0.28 |
195,967 |
0.28 |
|||||||||||||||||||||||||
|
Other borrowings |
20,455 |
5.67 |
19,969 |
5.62 |
19,961 |
5.62 |
19,953 |
5.69 |
19,945 |
5.75 |
|||||||||||||||||||||||||
|
Total interest-bearing liabilities |
2,945,500 |
0.52 |
% |
2,832,492 |
0.52 |
% |
2,667,714 |
0.53 |
% |
2,598,242 |
0.53 |
% |
2,548,938 |
0.55 |
% |
||||||||||||||||||||
|
Non-interest-bearing liabilities: |
|||||||||||||||||||||||||||||||||||
|
Non-interest-bearing |
|||||||||||||||||||||||||||||||||||
|
demand |
813,340 |
823,738 |
751,831 |
675,098 |
641,450 |
||||||||||||||||||||||||||||||
|
Other liabilities |
6,745 |
9,969 |
15,838 |
16,158 |
4,724 |
||||||||||||||||||||||||||||||
|
Stockholders' equity |
422,847 |
395,981 |
382,025 |
341,120 |
300,512 |
||||||||||||||||||||||||||||||
|
Unrealized gains on securities and |
|||||||||||||||||||||||||||||||||||
|
derivatives |
4,981 |
5,112 |
4,973 |
4,888 |
4,634 |
||||||||||||||||||||||||||||||
|
Total liabilities and |
|||||||||||||||||||||||||||||||||||
|
stockholders' equity |
$ |
4,193,413 |
$ |
4,067,292 |
$ |
3,822,381 |
$ |
3,635,506 |
$ |
3,500,257 |
|||||||||||||||||||||||||
|
Net interest spread |
3.67 |
% |
3.42 |
% |
3.51 |
% |
3.60 |
% |
3.67 |
% |
|||||||||||||||||||||||||
|
Net interest margin |
3.80 |
% |
3.56 |
% |
3.65 |
% |
3.74 |
% |
3.80 |
% |
|||||||||||||||||||||||||
|
(1) |
Average loans include loans on which the accrual of interest has been discontinued. |
||||||||||||||||||||||||||||||||||
|
(2) |
Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 35%. |
||||||||||||||||||||||||||||||||||
|
(3) |
Unrealized gains on available-for-sale debt securities are excluded from the yield calculation. |
||||||||||||||||||||||||||||||||||
|
(4) |
Interest income in the first quarter of 2015 includes $369,000 of accretion on acquired loan discounts. |
||||||||||||||||||||||||||||||||||
|
(5) |
Interest expense in the first quarter of 2015 includes $63,000 of accretion on acquired CD premiums. |
||||||||||||||||||||||||||||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/servisfirst-bancshares-inc-announces-results-for-first-quarter-2015-300068860.html
SOURCE ServisFirst Bancshares, Inc.