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ServisFirst Bancshares, Inc. Announces Results For Fourth Quarter of 2021

GlobeNewswire Inc.

BIRMINGHAM, Ala., Jan. 24, 2022 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter and year ended December 31, 2021.

Fourth Quarter 2021 Highlights:

  • Diluted earnings per share were $0.99 for the fourth quarter of 2021, a 5% increase over the fourth quarter of 2020. Excluding the impact of core system conversion expenses recognized during the fourth quarter of 2021, diluted earnings per share were $1.03, an increase of 10% over the fourth quarter of 2020

  • Diluted earnings per share were $3.82 for 2021, a 22% increase over 2020. Excluding the impact of core system conversion expenses, diluted earnings per share were $3.86 for 2021, a 23% increase over 2020

  • Total loans grew from $8.5 billion to $9.5 billion, or by 13%, during 2021, and grew $720.1 million, or 32%, annualized, on a linked-quarter basis. Total loans, excluding the impact of Paycheck Protection Program (“PPP”) loan forgiveness, grew $877.7 million, or 41% annualized, during the quarter

  • Deposits grew from $9.98 billion to $12.45 billion year-over-year, or 25%, and grew $374 million on a linked-quarter basis, or 12%, annualized

  • Book value per share increased to $21.24, a 15% increase year-over-year

  • Cash dividend increased from $0.20 to $0.23 per quarter, a 15% increase

Tom Broughton, Chairman, President and CEO, said, “Our strong business development initiatives continue to result in record loan growth and a strong loan pipeline.”

Bud Foshee, CFO, said, “Excellent credit quality and low levels of loan losses are evidence that we will be able to leverage our excess liquidity in a profitable manner. Operating efficiency will continue to be a focus in 2022.”

FINANCIAL SUMMARY (UNAUDITED)

(in Thousands except share and per share amounts)

Period Ending
December 31, 2021

Period Ending
September 30, 2021

% Change From
Period Ending
September 30, 2021
to Period Ending
December 31, 2021

Period Ending
December 31, 2020

% Change From
Period Ending
December 31, 2020
to Period Ending December 31, 2021

QUARTERLY OPERATING RESULTS

Net Income

$

53,753

$

52,499

2

%

$

50,981

5

%

Net Income Available to Common Stockholders

$

53,722

$

52,499

2

%

$

50,949

5

%

Diluted Earnings Per Share

$

0.99

$

0.96

3

%

$

0.94

5

%

Return on Average Assets

1.40

%

1.50

%

1.74

%

Return on Average Common Stockholders' Equity

18.75

%

18.93

%

20.78

%

Average Diluted Shares Outstanding

54,493,959

54,477,740

54,273,944

Net income - adjusted for core system conversion

expenses, net of tax*

$

56,004

$

52,499

7

%

$

50,981

10

%

Net Income Available to Common Stockholders -

adjusted for core system conversion expenses,

net of tax*

$

55,973

$

52,499

7

%

$

50,949

10

%

Diluted Earnings Per Share - adjusted for core

system conversion expenses, net of tax*

$

1.03

$

0.96

7

%

$

0.94

10

%

Return on Average Assets - adjusted for core

system conversion expenses, net of tax*

1.46

%

1.50

%

1.74

%

Return on Average Common Stockholders' Equity -

adjusted for core system conversion expenses,

net of tax*

19.54

%

18.93

%

20.78

%

YEAR-TO-DATE OPERATING RESULTS

Net Income

$

207,734

$

169,569

23

%

Net Income Available to Common Stockholders

$

207,672

$

169,506

23

%

Diluted Earnings Per Share

$

3.82

$

3.13

22

%

Return on Average Assets

1.53

%

1.59

%

Return on Average Common Stockholders' Equity

19.26

%

18.55

%

Average Diluted Shares Outstanding

54,434,573

54,219,037

Net income - adjusted for core system conversion

expenses, net of tax*

$

209,985

$

169,569

24

%

Net Income Available to Common Stockholders -

adjusted for core system conversion expenses,

net of tax*

$

209,923

$

169,506

24

%

Diluted Earnings Per Share - adjusted for core system

conversion expenses, net of tax*

$

3.86

$

3.13

23

%

Return on Average Assets - adjusted for core

system conversion expenses, net of tax*

1.55

%

1.59

%

Return on Average Common Stockholders' Equity -

adjusted for core system conversion expenses,

net of tax*

19.47

%

18.55

%

BALANCE SHEET

Total Assets

$

15,448,806

$

14,602,228

6

%

$

11,932,654

29

%

Loans

9,532,934

8,812,811

8

%

8,465,688

13

%

Non-interest-bearing Demand Deposits

4,799,767

4,366,654

10

%

2,788,772

72

%

Total Deposits

12,452,836

12,078,670

3

%

9,975,724

25

%

Stockholders' Equity

1,152,015

1,114,293

3

%

992,852

16

%

* The adjustment for the core system conversion expenses included in the comparative periods presented in this press release are more fully described in "Detailed Financials" and in "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below.

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income of $53.8 million and net income available to common stockholders of $53.7 million for the quarter ended December 31, 2021, compared to net income and net income available to common stockholders of $51.0 million and $50.9 million, respectively, for the same quarter in 2020. Basic and diluted earnings per common share were $0.99 for the fourth quarter of 2021, compared to $0.94 for the fourth quarter of 2020.

Annualized return on average assets was 1.40% and annualized return on average common stockholders’ equity was 18.75% for the fourth quarter of 2021, compared to 1.74% and 20.78%, respectively, for the fourth quarter of 2020.

Net interest income was $101.2 million for the fourth quarter of 2021, compared to $96.3 million for the third quarter of 2021 and $92.1 million for the fourth quarter of 2020. The net interest margin in the fourth quarter of 2021 was 2.71% compared to 2.85% in the third quarter of 2021 and 3.27% in the fourth quarter of 2020. Accretion of net fees on PPP loans of $5.1 million during the fourth quarter of 2021 contributed 22 basis points of the loan yield, compared to $5.2 million of PPP loan fee accretion during the third quarter of 2021, or 24 basis points of the loan yield and $7.5 million during the fourth quarter of 2020, or 35 basis points of the loan yield.

Average loans for the fourth quarter of 2021 were $9.06 billion, an increase of $378.9 million, or 17.3% annualized, over average loans of $8.68 billion for the third quarter of 2021, and an increase of $594.4 million, or 7.0%, over average loans of $8.46 billion for the fourth quarter of 2020. Forgiveness of PPP loans during the fourth quarter of 2021 totaled $157.8 million. PPP loans outstanding as of December 31, 2021 were $230.2 million.

Average total deposits for the fourth quarter of 2021 were $12.39 billion, an increase of $897.5 million, or 31.0%, annualized, over average total deposits of $11.49 billion for the third quarter of 2021, and an increase of $2.55 billion, or 25.9%, over average total deposits of $9.84 billion for the fourth quarter of 2020.

Non-performing assets to total assets were 0.09% for the fourth quarter of 2021, a decrease of two basis points compared to 0.11% for the third quarter of 2021 and a decrease of 12 basis points compared to 0.21% for the fourth quarter of 2020. Annualized net charge-offs to average loans were 0.03% for the fourth quarter of 2021, compared to 0.08% and 0.41% for the third quarter of 2021 and fourth quarter of 2020, respectively. The allowance for credit losses for each quarter-end period presented was calculated under the CECL methodology. The allowance for credit losses as a percentage of total loans at December 31, 2021, September 30, 2021 and December 30, 2020 was 1.22%, 1.24% and 1.04%, respectively. Excluding PPP loans, the allowance for credit losses as a percentage of total loans at December 31, 2021, September 30, 2021 and December 31, 2020 was 1.25%, 1.29%, and 1.16%, respectively. We recorded an $8.5 million provision for credit losses in the fourth quarter of 2021 compared to $6.0 million in the third quarter of 2021 and $6.3 million in the fourth quarter of 2020.

Non-interest income decreased $872,000, or 10.6%, to $7.4 million for the fourth quarter of 2021 from $8.2 million in the fourth quarter of 2020. Service charges on deposit accounts decreased $674,000, or 34.2%, to $1.3 million from the fourth quarter of 2020 to the fourth quarter of 2021. Mortgage banking revenue decreased $2.6 million, or 84.6%, to $471,000 from the fourth quarter of 2020 to the fourth quarter of 2021. We started retaining our mortgage loans in the second quarter of 2021 to increase earning assets and use excess liquidity. As of December 31, 2021, we had retained a total of 202 1-4 family mortgages for an aggregate balance of $76.9 million. Net credit card revenue increased $1.3 million, or 141.0%, to $2.2 million during the fourth quarter of 2021, compared to $913,000 during the fourth quarter of 2020. The number of credit card accounts increased approximately 6.4% and the aggregate amount of spend on all credit card accounts increased 36% during the fourth quarter of 2021 compared to the fourth quarter of 2020. Other operating income for the fourth quarter of 2021 increased $1.1 million, or 174.8%, to $1.8 million from $643,000 in the fourth quarter of 2020. We wrote up the value of our interest rate cap by $839,000 during the fourth quarter of 2021 through other income compared to a write down of $61,000 during the fourth quarter of 2020. Increased probabilities of Fed rate increases contributed to the recovery in the fair value of our interest rate cap during the fourth quarter of 2021. Merchant service revenue increased from $168,000 during the fourth quarter of 2020 to $376,000, or 124.1%, during the fourth quarter of 2021.

Non-interest expense for the fourth quarter of 2021 increased $10.3 million, or 36.5%, to $38.5 million from $28.2 million in the fourth quarter of 2020, and increased $4.1 million, or 12.0%, on a linked quarter basis. Salary and benefit expense for the fourth quarter of 2021 increased $2.3 million, or 15.6%, to $17.3 million from $15.0 million in the fourth quarter of 2020, and decreased $692,000, or 3.8%, on a linked quarter basis. Salary expense alone increased 6.2% year over year. We increased our annual incentive accrual based on the increased loan production in 2021 and on final anticipated payouts for 2021 PPP loan originations. Total incentive accruals increased $2.4 million to $4.4 million for the fourth quarter of 2021 compared the same quarter in 2020. The number of FTE employees increased by 9 to 502 at December 31, 2021 compared to 493 at December 31, 2020, and decreased by 16 from the end of the third quarter of 2021. Equipment and occupancy expense increased $230,000, or 8.6%, to $2.9 million in the fourth quarter of 2021, from $2.7 million in the fourth quarter of 2020, and decreased $86,000, or 2.9% on a linked-quarter basis. We moved our office in Nashville, Tennessee in early 2021 to expand our space and improve visibility and we opened our new office in Orlando, Florida in the third quarter of 2021. The linked-quarter decrease is primarily attributable to adjustments of accrued property taxes. Third party processing and other services expense increased $1.4 million, or 42.1%, to $4.9 million in the fourth quarter of 2021, from $3.4 million in the fourth quarter of 2020 and increased $712,000, or 17.2%, on a linked-quarter basis. We increased the number of correspondent banks for which we are processing transactions through the Federal Reserve Bank. Professional services expense decreased $335,000, or 26.8%, to $913,000 in the fourth quarter of 2021, from $1.2 million in the fourth quarter of 2020, primarily due to adjustments in accrued professional services fees during the fourth quarter of 2021. FDIC and other regulatory assessments decreased $324,000 to $1.0 million in the fourth quarter of 2021, from $1.4 million in the fourth quarter of 2020, and decreased $588,000, or 36.1%, on a linked quarter basis. ServisFirst Bank was reclassified as a large financial institution by the FDIC as of September 30, 2021. Other operating expenses for the fourth quarter of 2021 increased $7 million, or 160.7%, to $11.4 million from $4.4 million in the fourth quarter of 2020, and increased $4.9 million on a linked-quarter basis. This increase in other operating expenses includes a $3.0 million charge for expenses associated with the conversion to a new core operating system scheduled to take place in the third quarter of 2022. See “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below for more discussion of these expenses. We invested $24.5 million in a new market tax credit during the fourth quarter of 2021. We wrote down the investment by $3.1 million during the fourth quarter of 2021 as we recognize the tax credits. We decreased our reserve for credit losses on unfunded loan commitments by $1.7 million in the fourth quarter of 2021. The efficiency ratio was 35.47% during the fourth quarter of 2021 compared to 28.11% during the fourth quarter of 2020 and compared to 32.95% during the third quarter of 2021. The efficiency ratio was 32.70% when adjusted for the core system conversion costs discussed above.

Income tax expense decreased $7.0 million, or 47.3%, to $7.8 million in the fourth quarter of 2021, compared to $14.9 million in the fourth quarter of 2020. Our effective tax rate was 12.70% for the fourth quarter of 2021 compared to 22.56% for the fourth quarter of 2020. We recognized an aggregate of $7.4 million in credits during the fourth quarter of 2021 related to investments in new market tax credits. 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 2021 and 2020 of $363,000 and $170,000, respectively.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

During the fourth quarter of 2021, we recorded $3.0 million of expenses associated with our core operating system conversion scheduled to be completed during the third quarter of 2022. The expenses relate to negotiated liquidated damages of our existing system contracts and the procurement of our data from those providers. Financial measures included in this press release that are presented adjusted for these expenses are net income, net income available to common stockholders, diluted earnings per share, return on average assets, return on average common stockholders’ equity and efficiency ratio. Each of these six financial measures excludes the impact of this item, net of tax, and are all considered non-GAAP financial measures. This press release also contains certain non-GAAP financial measures, including tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill and core deposit intangibles associated with our acquisition of Metro Bancshares, Inc. in January 2015. We also include total loans adjusted for the impact of PPP loan activities. 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 December 31, 2021

Year Ended
December 31, 2021

Net income - GAAP

$

53,753

$

207,734

Adjustments:

Core system conversion expenses

3,007

3,007

Tax on adjustment

(756

)

(756

)

Adjusted net income - non-GAAP

$

56,004

$

209,985

Net income available to common stockholders - GAAP

$

53,722

$

207,672

Adjustments:

Core system conversion expenses

3,007

3,007

Tax on adjustment

(756

)

(756

)

Adjusted net income available to common stockholders -

non-GAAP

$

55,973

$

209,923

Diluted earnings per share - GAAP

$

0.99

3.82

Adjustments:

Core system conversion expenses

0.05

0.05

Tax on adjustment

(0.01

)

(0.01

)

Adjusted diluted earnings per share - non-GAAP

$

1.03

$

3.86

Return on average assets - GAAP

1.40

%

1.53

%

Net income - GAAP

$

53,753

$

207,734

Adjustments:

Core system conversion expenses

3,007

3,007

Tax on adjustment

(756

)

(756

)

Adjusted net income - non-GAAP

$

56,004

$

209,985

Average assets - GAAP

$

15,250,671

$

13,555,221

Adjusted return on average assets - non-GAAP

1.46

%

1.55

%

Return on average common stockholders' equity - GAAP

18.75

%

19.26

%

Net income available to common stockholders - GAAP

$

53,722

$

207,672

Adjustments:

Core system conversion expenses

3,007

3,007

Tax on adjustment

(756

)

(756

)

Adjusted net income available to common stockholders -

non-GAAP

$

55,973

$

209,923

Average common stockholders' equity - GAAP

$

1,136,610

$

1,078,075

Adjusted return on average common stockholders' equity -

19.54

%

19.47

%

non-GAAP

Efficiency ratio

35.47

%

Non-interest expense - GAAP

$

38,489

Adjustments:

Core system conversion expenses

3,007

Adjusted non-interest expense

35,482

Net interest income plus non-interest income - GAAP

$

108,515

Adjusted efficiency ratio - non-GAAP

32.70

%

At December 31,
2021

At September 30,
2021

At June 30,
2021

At March 31,
2021

At December 31,
2020

Book value per share - GAAP

$

21.24

$

20.56

$

19.80

$

19.03

$

18.41

Total common stockholders' equity - GAAP

1,152,015

1,114,293

1,073,284

1,030,485

992,852

Adjustments:

Adjusted for goodwill and core deposit intangible asset

(13,638

)

(13,705

)

(13,773

)

(13,841

)

(13,908

)

Tangible common stockholders' equity - non-GAAP

$

1,138,377

$

1,100,588

$

1,059,511

$

1,016,644

$

978,944

Tangible book value per share - non-GAAP

$

20.99

$

20.30

$

19.55

$

18.78

$

18.15

Stockholders' equity to total assets - GAAP

7.46

%

7.63

%

8.13

%

8.15

%

8.32

%

Total assets - GAAP

$

15,448,806

$

14,602,228

$

13,207,319

$

12,647,374

$

11,932,654

Adjustments:

Adjusted for goodwill and core deposit intangible asset

(13,638

)

(13,705

)

(13,773

)

(13,841

)

(13,908

)

Total tangible assets - non-GAAP

$

15,435,168

$

14,588,523

$

13,193,546

$

12,633,533

$

11,918,746

Tangible common equity to total tangible assets - non-GAAP

7.38

%

7.54

%

8.03

%

8.05

%

8.21

%

Total loans - GAAP

$

9,532,934

$

8,812,811

$

8,649,694

$

8,504,980

$

8,465,688

Adjustments:

Adjusted to exclude PPP loans

(230,184

)

(387,725

)

(595,017

)

(967,641

)

(900,493

)

Loans, excluding PPP loans - non-GAAP

$

9,302,750

$

8,425,086

$

8,054,677

$

7,537,339

$

7,565,195

About ServisFirst Bancshares, Inc.

ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Birmingham, Huntsville, Mobile, Montgomery and Dothan, Alabama, Northwest Florida, West Central Florida, Nashville, Tennessee, Atlanta, Georgia, and Charleston, South Carolina.

ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbancshares.com.

Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. The words "believe," "expect," "anticipate," "project," “plan,” “intend,” “will,” “could,” “would,” “might” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.’s senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including, but not limited to: the global health and economic crisis precipitated by the COVID-19 outbreak; general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes as a result of our reclassification as a large financial institution by the FDIC; changes in our loan portfolio and the deposit base; economic crisis and associated credit issues in industries most impacted by the COVID-19 outbreak, including but not limited to, the restaurant, hospitality and retail sectors; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic stimulus initiatives and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; and increased competition from both banks and non-bank financial institutions. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K, in our Quarterly Reports on Form 10-Q for fiscal year 2021, and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.

More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling (205) 949-0302.

Contact: ServisFirst Bank
Davis Mange (205) 949-3420
dmange@servisfirstbank.com

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

(In thousands except share and per share data)

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

1st Quarter 2021

4th Quarter 2020

CONSOLIDATED STATEMENT OF INCOME

Interest income

$

108,954

$

104,236

$

102,719

$

100,396

$

101,065

Interest expense

7,804

7,916

8,051

8,031

8,984

Net interest income

101,150

96,320

94,668

92,365

92,081

Provision for credit losses

8,451

5,963

9,652

7,451

6,283

Net interest income after provision for credit losses

92,699

90,357

85,016

84,914

85,798

Non-interest income

7,365

8,026

9,598

8,463

8,237

Non-interest expense

38,489

34,377

31,309

28,914

28,202

Income before income tax

61,575

64,006

63,305

64,463

65,833

Provision for income tax

7,822

11,507

13,278

13,008

14,852

Net income

53,753

52,499

50,027

51,455

50,981

Preferred stock dividends

31

-

31

-

32

Net income available to common stockholders

$

53,722

$

52,499

$

49,996

$

51,455

$

50,949

Earnings per share - basic

$

0.99

$

0.97

$

0.92

$

0.95

$

0.94

Earnings per share - diluted

$

0.99

$

0.96

$

0.92

$

0.95

$

0.94

Average diluted shares outstanding

54,493,959

54,477,740

54,460,230

54,381,991

54,273,944

CONSOLIDATED BALANCE SHEET DATA

Total assets

$

15,448,806

$

14,602,228

$

13,207,319

$

12,647,374

$

11,932,654

Loans

9,532,934

8,812,811

8,649,694

8,504,980

8,465,688

Debt securities

1,305,527

984,600

1,013,783

962,129

886,938

Non-interest-bearing demand deposits

4,799,767

4,366,654

3,296,429

3,044,611

2,788,772

Total deposits

12,452,836

12,078,670

10,958,236

10,577,610

9,975,724

Borrowings

64,706

64,701

64,696

64,691

64,748

Stockholders' equity

1,152,015

1,114,293

1,073,284

1,030,485

992,852

Shares outstanding

54,227,060

54,207,147

54,201,204

54,137,650

53,943,751

Book value per share

$

21.24

$

20.56

$

19.80

$

19.03

$

18.41

Tangible book value per share (1)

$

20.99

$

20.30

$

19.55

$

18.78

$

18.15

SELECTED FINANCIAL RATIOS (Annualized)

Net interest margin

2.71

%

2.85

%

3.06

%

3.20

%

3.27

%

Return on average assets

1.40

%

1.50

%

1.56

%

1.72

%

1.74

%

Return on average common stockholders' equity

18.75

%

18.93

%

18.98

%

19.83

%

20.78

%

Efficiency ratio

35.47

%

32.95

%

30.03

%

28.68

%

28.11

%

Non-interest expense to average earning assets

1.03

%

1.01

%

1.01

%

1.00

%

1.00

%

CAPITAL RATIOS (2)

Common equity tier 1 capital to risk-weighted assets

9.95

%

10.46

%

10.60

%

10.73

%

10.50

%

Tier 1 capital to risk-weighted assets

9.96

%

10.47

%

10.60

%

10.73

%

10.50

%

Total capital to risk-weighted assets

11.58

%

12.18

%

12.36

%

12.48

%

12.20

%

Tier 1 capital to average assets

7.39

%

7.80

%

8.10

%

8.25

%

8.23

%

Tangible common equity to total tangible assets (1)

7.38

%

7.54

%

8.03

%

8.05

%

8.22

%

(1) See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for a discussion of these Non-GAAP financial measures.

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


CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

December 31, 2021

December 31, 2020

% Change

ASSETS

Cash and due from banks

$

56,934

$

93,655

(39

)

%

Interest-bearing balances due from depository institutions

4,106,790

2,115,985

94

%

Federal funds sold

58,372

1,771

3,196

%

Cash and cash equivalents

4,222,096

2,211,411

91

%

Available for sale debt securities, at fair value

842,570

886,688

(5

)

%

Held to maturity debt securities (fair value of $466,286 at December 31, 2021 and $250 at December 31, 2020)

462,957

250

NM

Restricted equity securities

7,311

-

Mortgage loans held for sale

1,114

14,425

(92

)

%

Loans

9,532,934

8,465,688

13

%

Less allowance for credit losses

(116,660

)

(87,942

)

33

%

Loans, net

9,416,274

8,377,746

12

%

Premises and equipment, net

60,300

54,969

10

%

Goodwill and other identifiable intangible assets

13,638

13,908

(2

)

%

Other assets

429,859

373,256

15

%

Total assets

$

15,448,806

$

11,932,654

29

%

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing

$

4,799,767

$

2,788,772

72

%

Interest-bearing

7,653,069

7,186,952

6

%

Total deposits

12,452,836

9,975,724

25

%

Federal funds purchased

1,711,777

851,545

101

%

Other borrowings

64,706

64,748

-

%

Other liabilities

67,472

47,785

41

%

Total liabilities

14,296,791

10,939,802

31

%

Stockholders' equity:

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

December 31, 2021 and December 31, 2020

-

-

Common stock, par value $0.001 per share; 100,000,000 shares authorized; 54,227,060 shares

issued and outstanding at December 31, 2021, and 53,943,751 shares issued and outstanding

at December 31, 2020

54

54

-

%

Additional paid-in capital

226,397

223,856

1

%

Retained earnings

911,008

748,224

22

%

Accumulated other comprehensive income

14,056

20,218

(30

)

%

Total stockholders' equity attributable to ServisFirst Bancshares, Inc.

1,151,515

992,352

16

%

Noncontrolling interest

500

500

-

%

Total stockholders' equity

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