SFBS 8-K

ServisFirst Bancshares, Inc. (SFBS)

8-K 2023-10-16 For: 2023-10-16

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Added on April 11, 2026

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Delaware	001-36452	26-0734029
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2500 Woodcrest Place, Birmingham, Alabama	35209
(Address of principal executive offices)	(Zip Code)

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class	Trading Symbol	Name of exchange on which registered
Common	SFBS	New York Stock Exchange

Exhibit No.		Description

99.1		Press Release dated October 16, 2023
99.2		Supplemental data table October 16, 2023

SFBS 8-K

ServisFirst Bancshares, Inc. Announces Results For Third Quarter of 2023

Contacts

	SERVISFIRST BANCSHARES, INC.

Dated: October 16, 2023	By:	/s/ Thomas A. Broughton, III
		Thomas A. Broughton, III
		Chairman, President and Chief Executive Officer

FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share amounts)	Period Ending September 30, 2023			Period Ending June 30, 2023			% Change From Period Ending June 30, 2023 to Period Ending September 30, 2023			Period Ending September 30, 2022			% Change From Period Ending September 30, 2022 to Period Ending September 30, 2023
QUARTERLY OPERATING RESULTS
Net Income	$	53,340		$	53,468		-		%	$	64,031		(17	)	%
Net Income Available to Common Stockholders	$	53,340		$	53,437		-		%	$	64,031		(17	)	%
Diluted Earnings Per Share	$	0.98		$	0.98		-		%	$	1.17		(17	)	%
Return on Average Assets		1.37	%		1.50	%					1.77	%
Return on Average Common Stockholders' Equity		15.12	%		15.85	%					20.49	%
Average Diluted Shares Outstanding		54,530,635			54,527,317						54,546,682

YEAR-TO-DATE OPERATING RESULTS
Net Income	$	164,779								$	183,780		(10	)	%
Net Income Available to Common Stockholders	$	164,748								$	183,749		(10	)	%
Diluted Earnings Per Share	$	3.02								$	3.37		(10	)	%
Return on Average Assets		1.50	%								1.64	%
Return on Average Common Stockholders' Equity		16.23	%								20.43	%
Average Diluted Shares Outstanding		54,530,797									54,533,793

BALANCE SHEET
Total Assets	$	16,044,332		$	15,072,808		6		%	$	13,890,030		16		%
Loans		11,641,130			11,604,894		-		%		11,278,614		3		%
Non-interest-bearing Demand Deposits		2,621,072			2,855,102		(8	)	%		3,661,936		(28	)	%
Total Deposits		13,142,376			12,288,219		7		%		11,051,915		19		%
Stockholders' Equity		1,401,384			1,363,471		3		%		1,242,589		13		%

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands except share and per share data)
	3rd Quarter 2023			2nd Quarter 2023			1st Quarter 2023			4th Quarter 2022			3rd Quarter 2022
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	213,206		$	189,656		$	181,322		$	170,273		$	149,299
Interest expense		113,508			88,405			73,021			47,889			22,881
Net interest income		99,698			101,251			108,301			122,384			126,418
Provision for credit losses		4,282			6,654			4,197			7,135			15,603
Net interest income after provision for credit losses		95,416			94,597			104,104			115,249			110,815
Non-interest income		8,135			8,582			6,321			6,966			8,939
Non-interest expense		41,663			38,466			39,664			38,092			42,685
Income before income tax		61,888			64,713			70,761			84,123			77,069
Provision for income tax		8,548			11,245			12,790			16,399			13,038
Net income		53,340			53,468			57,971			67,724			64,031
Preferred stock dividends		-			31			-			31			-
Net income available to common stockholders	$	53,340		$	53,437		$	57,971		$	67,693		$	64,031
Earnings per share - basic	$	0.98		$	0.98		$	1.07		$	1.25		$	1.18
Earnings per share - diluted	$	0.98		$	0.98		$	1.06		$	1.24		$	1.17
Average diluted shares outstanding		54,530,635			54,527,317			54,534,482			54,537,716			54,546,682

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	16,044,332		$	15,072,808		$	14,566,559		$	14,595,753		$	13,890,030
Loans		11,641,130			11,604,894			11,629,802			11,687,968			11,278,614
Debt securities		1,878,701			2,048,227			1,646,937			1,678,936			1,714,603
Non-interest-bearing demand deposits		2,621,072			2,855,102			2,898,736			3,321,347			3,661,936
Total deposits		13,142,376			12,288,219			11,615,317			11,546,805			11,051,915
Borrowings		64,751			64,737			65,417			64,726			64,721
Stockholders' equity		1,401,384			1,363,471			1,339,817			1,297,896			1,242,589

Shares outstanding		54,425,447			54,425,033			54,398,025			54,326,527			54,324,007
Book value per share	$	25.75		$	25.05		$	24.63		$	23.89		$	22.87
Tangible book value per share (1)	$	25.50		$	24.80		$	24.38		$	23.64		$	22.62

SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin		2.64	%		2.93	%		3.15	%		3.52	%		3.64	%
Return on average assets		1.37	%		1.50	%		1.63	%		1.89	%		1.77	%
Return on average common stockholders' equity		15.12	%		15.85	%		17.83	%		21.27	%		20.49	%
Efficiency ratio		38.64	%		35.02	%		34.60	%		29.45	%		31.54	%
Non-interest expense to average earning assets		1.10	%		1.11	%		1.15	%		1.10	%		1.23	%

CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets		10.69	%		10.37	%		10.01	%		9.55	%		9.42	%
Tier 1 capital to risk-weighted assets		10.69	%		10.38	%		10.02	%		9.55	%		9.43	%
Total capital to risk-weighted assets		12.25	%		11.94	%		11.54	%		11.03	%		10.96	%
Tier 1 capital to average assets		9.35	%		9.83	%		9.49	%		9.29	%		8.84	%
Tangible common equity to total tangible assets (1)		8.66	%		8.96	%		9.11	%		8.81	%		8.86	%

(1) 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 associated with our acquisition of Metro Bancshares, Inc. in January 2015.
(2) Regulatory capital ratios for most recent period are preliminary.

	At September 30, 2023				At June 30, 2023				At March 31, 2023				At December 31, 2022				At September 30, 2022
Book value per share - GAAP	$	25.75			$	25.05			$	24.63			$	23.89			$	22.87
Total common stockholders' equity - GAAP		1,401,384				1,363,471				1,339,817				1,297,896				1,242,589
Adjustment for Goodwill		(13,615	)			(13,615	)			(13,615	)			(13,615	)			(13,615	)
Tangible common stockholders' equity - non-GAAP	$	1,387,769			$	1,349,856			$	1,326,202			$	1,284,281			$	1,228,974
Tangible book value per share - non-GAAP	$	25.50			$	24.80			$	24.38			$	23.64			$	22.62

Stockholders' equity to total assets - GAAP		8.73		%		9.05		%		9.20		%		8.89		%		8.95		%
Total assets - GAAP	$	16,044,332			$	15,072,808			$	14,566,559			$	14,595,753			$	13,890,030
Adjustment for Goodwill		(13,615	)			(13,615	)			(13,615	)			(13,615	)			(13,615	)
Total tangible assets - non-GAAP	$	16,030,717			$	15,059,193			$	14,552,944			$	14,582,138			$	13,876,415
Tangible common equity to total tangible assets - non-GAAP		8.66		%		8.96		%		9.11		%		8.81		%		8.86		%

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
	September 30, 2023			September 30, 2022			% Change
ASSETS
Cash and due from banks	$	112,150		$	249,051		(55	)	%
Interest-bearing balances due from depository institutions		1,861,924			156,959		1,086		%
Federal funds sold		91,035			82,316		11		%
Cash and cash equivalents		2,065,109			488,326		323		%
Available for sale debt securities, at fair value		834,802			665,763		25		%
Held to maturity debt securities (fair value of $933,006 and $942,282, respectively)		1,043,899			1,048,840		-		%
Restricted equity securities		10,226			7,734		32		%
Mortgage loans held for sale		6,333			2,003		216		%
Loans		11,641,130			11,278,614		3		%
Less allowance for credit losses		(152,247	)		(140,967	)	8		%
Loans, net		11,488,883			11,137,647		3		%
Premises and equipment, net		59,516			59,080		1		%
Goodwill and other identifiable intangible assets		13,615			13,615		-		%
Other assets		521,949			467,022		12		%
Total assets	$	16,044,332		$	13,890,030		16		%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing	$	2,621,072		$	3,661,936		(28	)	%
Interest-bearing		10,521,304			7,389,979		42		%
Total deposits		13,142,376			11,051,915		19		%
Federal funds purchased		1,370,289			1,466,322		(7	)	%
Other borrowings		64,751			64,721		-		%
Other liabilities		65,532			64,483		2		%
Total liabilities		14,642,948			12,647,441		16		%
Stockholders' equity:
Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at
September 30, 2023 and September 30, 2022		-			-		-		%
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,425,447 shares
issued and outstanding at September 30, 2023, and 54,324,007
shares issued and outstanding at September 30, 2022		54			54		-		%
Additional paid-in capital		231,588			228,738		1		%
Retained earnings		1,229,080			1,057,387		16		%
Accumulated other comprehensive loss		(59,838	)		(44,090	)	36		%
Total stockholders' equity attributable to ServisFirst Bancshares, Inc.		1,400,884			1,242,089		13		%
Noncontrolling interest		500			500		-		%
Total stockholders' equity		1,401,384			1,242,589		13		%
Total liabilities and stockholders' equity	$	16,044,332		$	13,890,030		16		%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest income:
Interest and fees on loans	$	178,754	$	131,375	$	514,204	$	345,767
Taxable securities		15,522		11,089		37,987		29,827
Nontaxable securities		15		30		53		110
Federal funds sold		985		632		1,826		738
Other interest and dividends		17,930		6,173		30,114		12,600
Total interest income		213,206		149,299		584,184		389,042
Interest expense:
Deposits		95,901		13,655		223,585		25,925
Borrowed funds		17,607		9,226		51,349		14,609
Total interest expense		113,508		22,881		274,934		40,534
Net interest income		99,698		126,418		309,250		348,508
Provision for credit losses		4,282		15,603		15,133		30,472
Net interest income after provision for credit losses		95,416		110,815		294,117		318,036
Non-interest income:
Service charges on deposit accounts		2,163		1,892		6,239		6,167
Mortgage banking		825		784		1,963		1,924
Credit card income		2,532		2,612		6,627		7,656
Securities losses		-		-		-		(6,168	)
Bank-owned life insurance income		1,818		1,637		5,935		6,978
Other operating income		797		2,014		2,274		9,836
Total non-interest income		8,135		8,939		23,038		26,393
Non-interest expense:
Salaries and employee benefits		20,080		19,687		57,941		58,722
Equipment and occupancy expense		3,579		3,140		10,435		9,056
Third party processing and other services		6,549		7,213		20,031		19,163
Professional services		1,265		1,036		4,499		3,355
FDIC and other regulatory assessments		2,346		975		6,105		3,254
Other real estate owned expense		18		21		30		56
Other operating expense		7,826		10,613		20,752		26,118
Total non-interest expense		41,663		42,685		119,793		119,724
Income before income tax		61,888		77,069		197,362		224,705
Provision for income tax		8,548		13,038		32,583		40,925
Net income		53,340		64,031		164,779		183,780
Dividends on preferred stock		-		-		31		31
Net income available to common stockholders	$	53,340	$	64,031	$	164,748	$	183,749
Basic earnings per common share	$	0.98	$	1.18	$	3.03	$	3.38
Diluted earnings per common share	$	0.98	$	1.17	$	3.02	$	3.37

LOANS BY TYPE (UNAUDITED)
(In thousands)

	3rd Quarter 2023		2nd Quarter 2023		1st Quarter 2023		4th Quarter 2022		3rd Quarter 2022
Commercial, financial and agricultural	$	2,890,535	$	2,986,453	$	3,081,926	$	3,145,317	$	3,104,155
Real estate - construction		1,509,937		1,397,732		1,469,670		1,532,388		1,433,698
Real estate - mortgage:
Owner-occupied commercial		2,237,684		2,294,002		2,243,436		2,199,280		2,145,621
1-4 family mortgage		1,170,099		1,167,238		1,138,645		1,146,831		1,089,826
Other mortgage		3,766,124		3,686,434		3,624,071		3,597,750		3,438,762
Subtotal: Real estate - mortgage		7,173,907		7,147,674		7,006,152		6,943,861		6,674,209
Consumer		66,751		73,035		72,054		66,402		66,552
Total loans	$	11,641,130	$	11,604,894	$	11,629,802	$	11,687,968	$	11,278,614

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)
(Dollars in thousands)
	3rd Quarter 2023			2nd Quarter 2023			1st Quarter 2023			4th Quarter 2022			3rd Quarter 2022
Allowance for credit losses:
Beginning balance	$	152,272		$	148,965		$	146,297		$	140,967		$	128,387
Loans charged off:
Commercial financial and agricultural		4,784			4,358			1,257			2,116			2,902
Real estate - construction		19			-			-			-			-
Real estate - mortgage		-			131			26			-			170
Consumer		341			111			390			200			261
Total charge offs		5,144			4,600			1,673			2,316			3,333
Recoveries:
Commercial financial and agricultural		825			1,233			128			393			297
Real estate - construction		-			-			3			-			-
Real estate - mortgage		-			-			1			-			-
Consumer		11			21			11			118			12
Total recoveries		836			1,254			143			511			309
Net charge-offs		4,308			3,346			1,530			1,805			3,024
Provision for credit losses		4,282			6,654			4,197			7,135			15,604
Ending balance	$	152,247		$	152,272		$	148,965		$	146,297		$	140,967

Allowance for credit losses to total loans		1.31	%		1.31	%		1.28	%		1.25	%		1.25	%
Allowance for credit losses to total average
loans		1.31	%		1.31	%		1.28	%		1.27	%		1.29	%
Net charge-offs to total average loans		0.15	%		0.11	%		0.05	%		0.06	%		0.11	%
Provision for credit losses to total average
loans		0.15	%		0.23	%		0.14	%		0.25	%		0.57	%
Nonperforming assets:
Nonaccrual loans	$	20,911		$	16,897		$	13,157		$	12,450		$	11,655
Loans 90+ days past due and accruing		1,692			5,947			4,683			5,391			4,803
Other real estate owned and
repossessed assets		690			832			248			248			1,245
Total	$	23,293		$	23,676		$	18,088		$	18,089		$	17,703

Nonperforming loans to total loans		0.19	%		0.20	%		0.15	%		0.15	%		0.15	%
Nonperforming assets to total assets		0.15	%		0.16	%		0.12	%		0.12	%		0.13	%
Nonperforming assets to earning assets		0.16	%		0.16	%		0.13	%		0.13	%		0.13	%
Allowance for credit losses to nonaccrual loans		731.74	%		901.18	%		1,132.24	%		1,175.08	%		1,209.50	%

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)

	3rd Quarter 2023					2nd Quarter 2023					1st Quarter 2023					4th Quarter 2022					3rd Quarter 2022
	Average Balance			Yield / Rate		Average Balance			Yield / Rate		Average Balance			Yield / Rate		Average Balance			Yield / Rate		Average Balance			Yield / Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)
Taxable	$	11,545,003		6.13	%	$	11,581,008		5.94	%	$	11,632,439		5.70	%	$	11,465,538		5.32	%	$	10,900,105		4.77	%
Tax-exempt (2)		18,023		4.71			18,312		4.82			18,978		3.36			19,526		6.60			19,852		4.14
Total loans, net of
unearned income		11,563,026		6.13			11,599,320		5.94			11,651,417		5.70			11,485,064		5.32			10,919,957		4.77
Mortgage loans held for sale		5,476		6.67			5,014		5.12			1,522		6.40			1,515		3.67			2,906		2.73
Debt securities:
Taxable		2,029,995		3.07			1,757,397		2.64			1,724,523		2.54			1,755,764		2.49			1,797,560		2.47
Tax-exempt (2)		2,408		2.49			2,960		2.43			3,781		2.43			4,863		2.39			5,863		2.39
Total securities (3)		2,032,403		3.07			1,760,357		2.64			1,728,304		2.54			1,760,627		2.49			1,803,423		2.47
Federal funds sold		74,424		5.25			15,908		5.72			50,526		4.93			82,656		3.93			102,028		2.46
Restricted equity securities		8,471		5.90			8,834		6.08			9,919		7.69			7,724		7.35			7,724		3.65
Interest-bearing balances with banks		1,293,243		5.45			460,893		5.21			510,021		4.67			458,115		3.83			945,142		2.56
Total interest-earning assets	$	14,977,043		5.65		$	13,850,326		5.49		$	13,951,709		5.27		$	13,795,701		4.90		$	13,781,180		4.30
Non-interest-earning assets:
Cash and due from banks		111,566					101,188					106,448					113,823					256,607
Net premises and equipment		60,121					60,499					60,617					60,323					60,155
Allowance for credit losses, accrued
interest and other assets		283,357					279,860					279,775					273,964					294,006
Total assets	$	15,432,087				$	14,291,873				$	14,398,549				$	14,243,811				$	14,391,948

Interest-bearing liabilities:
Interest-bearing deposits:
Checking	$	2,153,973		2.72	%	$	1,628,936		1.69	%	$	1,675,355		1.25	%	$	1,763,622		0.73	%	$	1,722,926		0.28	%
Savings		112,814		1.61			122,050		1.38			134,671		0.94			141,163		0.64			144,368		0.21
Money market		6,538,426		4.24			5,971,639		3.78			5,756,642		3.17			5,047,133		2.07			4,444,583		0.89
Time deposits		1,093,388		3.89			983,582		3.44			850,639		2.51			860,336		1.69			809,057		1.16
Total interest-bearing deposits		9,898,601		3.84			8,706,207		3.32			8,417,307		2.68			7,812,254		1.70			7,120,934		0.76
Federal funds purchased		1,237,721		5.43			1,191,582		5.14			1,389,217		4.67			1,453,445		3.75			1,493,444		2.27
Other borrowings		64,734		4.23			100,998		4.62			114,726		4.61			64,726		4.23			65,406		4.19
Total interest-bearing liabilities	$	11,201,056		4.02	%	$	9,998,787		3.55	%	$	9,921,250		2.98	%	$	9,330,425		2.04	%	$	8,679,784		1.05	%
Non-interest-bearing liabilities:
Non-interest-bearing
demand deposits		2,778,858					2,876,225					3,086,774					3,572,956					4,410,318
Other liabilities		52,797					64,917					72,121					77,544					62,093
Stockholders' equity		1,457,893					1,399,578					1,358,587					1,307,553					1,263,870
Accumulated other comprehensive
loss		(58,517	)				(47,634	)				(40,183	)				(44,667	)				(24,117	)
Total liabilities and
stockholders' equity	$	15,432,087				$	14,291,873				$	14,398,549				$	14,243,811				$	14,391,948
Net interest spread				1.63	%				1.94	%				2.29	%				2.86	%				3.25	%
Net interest margin				2.64	%				2.93	%				3.15	%				3.52	%				3.64	%

⁽¹⁾	Average loans include nonaccrual loans in all periods. Loan fees of $2,996, $3,318 $3,263, $3,630, and $3,849 are included in interest income in the third quarter of 2023, second quarter of 2023, first quarter of 2023, fourth quarter of 2022, and third quarter of 2022, 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 $(83,815), $(69,498), $(59,738), $(62,567),and $(34,688) for the third quarter of 2023, second quarter of 2023, first quarter of 2023, fourth quarter of 2022, and third quarter of 2022, respectively, are excluded from the yield calculation.

Selected Financial Data (in thousands except number of employees)	9/30/2023			6/30/2023			9/30/20222
Scheduled CD maturities for subsequent quarter	$	186,477		$	152,562		$	198,908
Average rate scheduled CD maturities for subsequent quarter		3.65	%		3.00	%		0.96	%
Average loan rate - loan originations booked final month of Qtr (excludes fees)		8.35	%		7.99	%		5.98	%
Cost of total deposits, Qtr-End		3.17	%		2.76	%		0.50	%
Cost of interest-bearing DDAs, Qtr-End		4.01	%		3.62	%		0.85	%
Cost of interest-bearing deposits, Qtr-End		3.96	%		3.60	%		0.75	%
Noninterest bearing DDA balances, Qtr-End	$	2,621,072		$	2,855,102		$	3,661,936
Reserve for unfunded commitments, Qtr-End	$	575		$	575		$	1,929
Credit card spend QTD	$	268,986		$	277,822		$	274,517
Credit card net income QTD	$	2,532		$	2,406		$	2,612
Merchant services fees QTD	$	594		$	581		$	468
Mortgage banking income QTD	$	825		$	696		$	784
FDIC insurance QTD	$	2,100		$	2,000		$	975
Write down tax credit investment QTD	$	2,230		$	2,384		$	2,499
Salaries & employee benefits QTD	$	20,080		$	18,795		$	19,687
Other operating expense	$	7,826		$	6,224		$	10,613
Third party processing and other services QTD	$	6,549		$	6,198		$	7,213
Equipment and occupancy expense QTD	$	3,579		$	3,421		$	3,140
Earnings retention YTD		71	%		73	%		79	%
Number of employees		576			583			567
QTD tax rate		13.81	%		17.38	%		16.92	%
YTD tax rate		16.51	%		17.74	%		18.21	%