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ServisFirst Bancshares, Inc.
850 Shades Creek Parkway Suite 200
Birmingham, AL 35209-4510

 

(205) 949-0302

Investor Relations Contact
Mr. Davis S. Mange
(205) 949-3420
dmange@servisfirstbank.com

Transfer Agent
By Regular Mail
Computershare
P.O. BOX 30170
College Station, TX 77842

 

By Overnight Delivery
Computershare
211 Quality Circle Suite 210
College Station, TX 77845

 

(800) 368-5948

 

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Press Releases

ServisFirst Bancshares, Inc. Announces Results For Fourth Quarter And Year Ended December 31, 2014

Jan 20, 2015

BIRMINGHAM, Ala., Jan. 20, 2015 /PRNewswire/ -- ServisFirst Bancshares, Inc. ("ServisFirst") (NASDAQ: SFBS), the holding company for ServisFirst Bank, today announced earnings and operating results for the quarter and the year ended December 31, 2014.

2014 AND FOURTH QUARTER HIGHLIGHTS:

  • Net income for the quarter increased 27% year over year
  • Full year core diluted earnings per share increased 14% year over year
  • Full year diluted earnings per share increased 10% year over year, including the impact of a 14% increase in average diluted shares outstanding
  • Loans increased 18% year over year, all organic growth
  • Deposits increased 13% year over year, all organic growth
  • All regulatory approvals for the Metro Bank merger have been received and closing is scheduled for the end of January 2015
  • Added 13 new commercial and private bankers in 2014 for a total of 91 commercial and private bankers
  • Entry into Charleston, South Carolina with hire of a new regional CEO

Tom Broughton, President and CEO, said, "We are looking forward to the upcoming closing of the Metro Bank merger and are also pleased to welcome our new team of bankers at ServisFirst Bank of South Carolina, led by Tom Trouche.  We will apply for a bank branch application for Charleston."  Bud Foshee, CFO, stated, "2014 was another year with strong earnings growth coupled with continued quality in our balance sheet."

ServisFirst announces the hiring of Tom Trouche as Executive Vice President and Regional CEO of Charleston, South Carolina.  Mr. Trouche will be establishing a banking presence for us in Charleston by hiring a staff of experienced bankers and locating office space.  Mr. Trouche has more than 25 years of experience in the banking industry, with his most recent position being EVP for the coastal division of First Citizens Bank.  He has served in many leadership positions and has extensive experience in new business development, relationship management and portfolio management to maximize overall growth and revenue.  Mr. Trouche holds a BA in history from the College of Charleston and serves on the board of the American Red Cross and the Charleston Symphony Orchestra.

 

FINANCIAL SUMMARY



(in Thousands except share and per share amounts)








Period Ending
December 31,
2014


Period Ending
September 30,
2014


% Change
From Period
Ending
September 30,
2014 to Period
Ending
December 31,
2014


Period Ending
December 31,
2013


% Change
From Period
Ending
December 31,
2013 to Period
Ending
December 31,
2014

QUARTERLY OPERATING RESULTS



















Net Income


$

15,032



$

14,002



7

%


$

11,868



27

%

Net Income Available to Common Stockholders


$

14,917



$

13,902



7

%


$

11,768



27

%

Diluted Earnings Per Share


$

0.58



$

0.54



7

%


$

0.53



9

%

Return on Average Assets



1.47

%



1.45

%






1.36

%




Return on Average Common Stockholders' Equity



16.39

%



15.89

%






18.86

%




Average Diluted Shares Outstanding



25,697,531




25,726,313







22,359,351


























YEAR-TO-DATE OPERATING RESULTS



















Net Income


$

52,377










$

41,617



26

%

Net Income Available to Common Stockholders


$

51,946










$

41,201



26

%

Diluted Earnings Per Share


$

2.09










$

1.90



10

%

Return on Average Assets



1.39

%










1.31

%




Return on Average Common Stockholders' Equity



16.23

%










18.30

%




Average Diluted Shares Outstanding



24,818,221











21,806,025


























Core Net Income*


$

53,989










$

41,617



30

%

Core Net Income Available to Common Stockholders*


$

53,558










$

41,201



30

%

Core Diluted Earnings Per Share*


$

2.16










$

1.90



14

%

Core Return on Average Assets*



1.44

%










1.31

%




Core Return on Average Common Stockholders' Equity*



16.74

%










18.30

%

























BALANCE SHEET



















Total Assets


$

4,098,679



$

3,952,799



4

%


$

3,520,699



16

%

Loans



3,359,858




3,159,772



6

%



2,858,868



18

%

Non-interest-bearing Demand Deposits



810,460




794,553



2

%



650,456



25

%

Total Deposits



3,398,160




3,352,766



1

%



3,019,642



13

%

Stockholders' Equity



407,213




393,136



4

%



297,192



37

%






















* Core measures exclude non-routine expenses in the first and second 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 $15.0 million and net income available to common stockholders of $14.9 million for the quarter ended December 31, 2014, compared to net income of $11.9 million and net income available to common stockholders of $11.8 million for the same quarter in 2013.  Basic and diluted earnings per common share were $0.60 and $0.58, respectively, for the fourth quarter of 2014, compared to $0.55 and $0.53, respectively, for the fourth quarter of 2013.

Return on average assets was 1.47% and return on average common stockholders' equity was 16.39% for the  fourth quarter of 2014, compared to 1.36% and 18.86%, respectively, for the fourth quarter of 2013.

Net interest income was $34.5 million for the fourth quarter of 2014, compared to $33.3 million for the third quarter of 2014 and $30.1 million for the fourth quarter of 2013.  The net interest margin in the fourth quarter of 2014 was 3.56%, a 9 basis point decrease from the third quarter of 2014 and 11 basis point decrease from the fourth quarter of 2013.  The increase in net interest income on a linked quarter basis is attributable to a $132.3 million increase in average loans outstanding, a $71.9 million increase in average non-interest-bearing deposits and a $14.1 million increase in average stockholders' equity, all resulting in a positive mix change in our balance sheet.  The lower net interest margin is driven in part by increasing balances in federal funds at other banks and higher balances at the Federal Reserve, which earn a nominal interest rate. 

Average loans for the fourth quarter of 2014 were $3.23 billion, an increase of $132.3 million, or 4%, over average loans of $3.09 billion for the third quarter of 2014, and an increase of $465.1 million, or 17%, over average loans of $2.76 billion for the fourth quarter of 2013.

Average total deposits for the fourth quarter of 2014 were $3.41 billion, an increase of $193.2 million, or 6%, over average total deposits of $3.21 billion for the third quarter of 2014, and an increase of $437.1 million, or 15%, over average total deposits of $2.97 billion for the fourth quarter of 2013.

The Company's asset quality remained strong in the fourth quarter of 2014.  At December 31, 2014, non-performing assets to total assets were 0.41%, compared to 0.61% for the third quarter of 2014 and 0.64% compared to the fourth quarter of 2013.   Net credit charge-offs to average loans were 0.19%, a 0.02% increase compared to 0.17% for the third quarter of 2014 and an increase of 0.10% compared to 0.09% for the fourth quarter of 2013.  We recorded a $2.7 million provision for loan losses in the fourth quarter of 2014, compared to $2.8 million in the third quarter of 2014 and an increase of $0.4 million compared to $2.4 million in the fourth quarter of 2013.  Growth in loans and improving credit quality has resulted in our loan loss reserve as a percent of loans remaining relatively stable, decreasing three basis points to 1.06% at December 31, 2014, as compared to 1.09% for September 30, 2014 and a decrease of one basis point as compared to 1.07% for December 31, 2013 .  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 $739,000 in the fourth quarter of 2014, or 31%, compared to the fourth quarter of 2013.  Deposit service charges increased by $331,000, or 40%, resulting from an increase in the number of accounts and transactions.  Increases in the cash surrender value of our life insurance contracts resulted from added investments in contracts during the third quarter of 2014.

Non-interest expense for the fourth quarter of 2014 increased $845,000, or 7%, to $13.1 million from $12.3 million in the fourth quarter of 2013.  Salary and benefit expense for the fourth quarter of 2014 decreased $209,000, or 3%, to $6.3 million from $6.5 million in the fourth quarter of 2013, and decreased $1.6 million, or 25%, on a linked quarter basis.  Other operating expense for the fourth quarter of 2014 increased $1.0 million, or 34%, to $3.9 million from $2.9 million in the fourth quarter of 2013.  This was in part due to tax credit partnership related expenses of $631,000 for the fourth quarter of 2014 compared to $198,000 in the same quarter in 2013.  We recognized tax credits of $666,000 during the fourth quarter of 2014 from these investments.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

As discussed in more detail in the section titled "Detailed Financials," 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, and we recorded a non-routine expense of $1.8 million for the second quarter of 2014 resulting from a correction of our accounting for vested stock options previously granted to members of our advisory boards in our Mobile, Alabama and Pensacola, Florida 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 fourth quarter and full year of 2014 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 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 this correction.

"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 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 year ended December 31, 2014.  Dollars are in thousands, except share and per share data.

 

(Dollars in Thousands)








For the Year Ended
December 31, 2014

Provision for income taxes - GAAP


$

21,601



Adjustments:






Adjustment for non-routine expense



865


Core provision for income taxes


$

22,466








Return on average assets - GAAP



1.39

%

Net income - GAAP


$

52,377



Adjustments:






Adjustment for non-routine expense



1,612


Core net income


$

53,989


Average assets


$

3,757,932


Core return on average assets



1.44

%







Return on average common stockholders' equity



16.23

%

Net income available to common stockholders - GAAP


$

51,946



Adjustments:






Adjustment for non-routine expense



1,612


Core net income available to common stockholders


$

53,558


Average common stockholders' equity


$

320,005


Core return on average common stockholders' equity



16.74

%







Earnings per share - diluted - GAAP


$

2.09


Weighted average shares outstanding, diluted



24,818,221


Core diluted earnings per share


$

2.16


 

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 and Nashville, Tennessee.

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 http://servisfirstbancshares.investorroom.com/.

Webcast

As previously announced, ServisFirst will host a live audio webcast to discuss fourth quarter and year-end results beginning at 9:30 a.m. ET on January 21, 2015. The webcast can be accessed at www.servisfirstbancshares.com in the "Events and Webcasts" section. A replay of the call will be available until January 31, 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/A 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 Bank
Davis Mange (205) 949-3420
dmange@servisfirstbank.com

 


SELECTED FINANCIAL HIGHLIGHTS
(UNAUDITED)




(In thousands except share and per share data)











4th Quarter 2014


3rd Quarter 2014


2nd Quarter 2014


1st Quarter 2014


4th Quarter 2013

CONSOLIDATED STATEMENT OF INCOME




















Interest income

$

38,163



$

36,857



$

35,424



$

34,281



$

33,725


Interest expense


3,703




3,538




3,446




3,432




3,610


Net interest income


34,460




33,319




31,978




30,849




30,115


Provision for loan losses


2,759




2,748




2,438




2,314




2,356


Net interest income after provision for loan losses


31,701




30,571




29,540




28,535




27,759


Non-interest income


3,110




3,006




2,938




2,175




2,371


Non-interest expense


13,143




15,315




15,417




13,723




12,298


Income before income tax


21,668




18,262




17,061




16,987




17,832


Provision for income tax


6,636




4,260




5,476




5,229




5,964


Net income


15,032




14,002




11,585




11,758




11,868


Preferred stock dividends


115




100




116




100




116


Net income available to common stockholders

$

14,917



$

13,902



$

11,469



$

11,658



$

11,752


Earnings per share - basic

$

0.60



$

0.56



$

0.49



$

0.53



$

0.55


Earnings per share - diluted

$

0.58



$

0.54



$

0.46



$

0.51



$

0.53


Average diluted shares outstanding


25,697,531




25,726,313




24,823,590




22,985,670




22,359,351






















CONSOLIDATED BALANCE SHEET DATA




















Total assets

$

4,098,679



$

3,952,799



$

3,762,684



$

3,572,914



$

3,520,699


Loans


3,359,858




3,159,772




3,053,989




2,937,797




2,858,868


Debt securities


328,168




332,351




325,432




309,475




298,494


Non-interest-bearing demand deposits


810,460




794,553




729,163




662,834




650,456


Total deposits


3,398,160




3,352,766




3,157,642




3,031,041




3,019,642


Borrowings


19,973




19,965




19,957




19,949




19,940


Stockholders' equity

$

407,213



$

393,136



$

380,074



$

312,283



$

297,192






















Shares outstanding


24,801,518




24,791,436




24,749,436




22,574,436




22,050,036


Book value per share

$

14.81



$

14.25



$

13.74



$

12.06



$

11.67


Tangible book value per share (1)

$

14.81



$

14.25



$

13.74



$

12.06



$

11.67






















SELECTED FINANCIAL RATIOS




















Net interest margin


3.56

%



3.65

%



3.74

%



3.80

%



3.67

%

Return on average assets


1.47

%



1.45

%



1.28

%



1.36

%



1.36

%

Return on average common stockholders' equity


16.39

%



15.89

%



15.03

%



17.83

%



18.86

%

Efficiency ratio


34.98

%



42.16

%



44.15

%



41.55

%



37.86

%

Non-interest expense to average earning assets


1.34

%



1.66

%



1.78

%



1.66

%



1.48

%

Tangible common equity to total tangible assets (1)


8.96

%



8.93

%



9.04

%



7.62

%



7.31

%





















CAPITAL RATIOS




















Total Capital to Risk-Weighted Assets:


13.38

%



13.70

%



13.74

%



11.94

%



11.73

%

Tier 1 Capital to Risk-Weighted Assets:


11.75

%



12.02

%



12.04

%



10.22

%



10.00

%

Tier 1 Capital to Average Assets:


9.91

%



10.18

%



10.32

%



8.81

%



8.48

%





















(1) Non-GAAP financial measures.  "Tangible book value per share" and "tangible common equity to total tangible assets" are not measures of financial performance recognized by generally accepted accounting principles in the United States, or GAAP;   However, because the Company has no intangible assets, there is no reconciliation of these non-GAAP financial measures.

 


CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands)





December 31, 2014


December 31, 2013


% Change

ASSETS









Cash and cash equivalents


297,464



258,415


15

%

Available for sale debt securities, at fair value


298,813



266,220


12

%

Held to maturity debt securities (fair value of $31,697 and $31,315 at December 31, 2014 and 2013, respectively)










29,355



32,274


(9)

%

Restricted equity securities


3,418



3,738


(9)

%

Mortgage loans held for sale


5,984



8,134


(26)

%

Loans


3,359,858



2,858,868


18

%

Less allowance for loan losses


(35,629)



(30,663)


16

%


Loans, net


3,324,229



2,828,205


18

%

Premises and equipment, net


7,815



8,351


(6)

%

Other assets


131,601



115,362


14

%


Total assets

$

4,098,679


$

3,520,699


16

%

LIABILITIES AND STOCKHOLDERS' EQUITY









Liabilities:









Deposits:










Non-interest-bearing

$

810,460


$

650,456


25

%


Interest-bearing


2,587,700



2,369,186


9

%



Total deposits


3,398,160



3,019,642


13

%

Federal funds purchased


264,315



174,380


52

%

Other borrowings


19,973



19,940


0

%

Other liabilities


9,018



9,545


(6)

%


Total liabilities


3,691,466



3,223,507


15

%

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 December 31, 2014 and 2013




















39,958



39,958


-

%


Common stock, par value $0.0003 per share; 50,000,000 shares authorized; 24,801,518 shares issued and outstanding at December 31, 2014 and 22,050,036 shares issued and outstanding at December 31, 2013




















25



22


14

%


Additional paid-in capital


185,397



123,325


50

%


Retained earnings


177,091



130,011


36

%


Accumulated other comprehensive income


4,490



3,891


15

%


Noncontrolling interest


252



-


100

%



Total stockholders' equity


407,213



297,192


37

%


Total liabilities and stockholders' equity

$

4,098,679


$

3,520,699


16

%

 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)





Three Months Ended December 31,


Year Ended December 31,




2014


2013


2014


2013

Interest income:













Interest and fees on loans

$

35,902


$

31,618


$

136,066


$

118,285


Taxable securities


1,143



1,037



4,497



3,888


Nontaxable securities


871



870



3,489



3,407


Federal funds sold


41



51



159



128


Other interest and dividends


206



149



514



373


   Total interest income


38,163



33,725



144,725



126,081

Interest expense:













Deposits


3,256



3,202



12,420



11,830


Borrowed funds


447



408



1,699



1,789


   Total interest expense


3,703



3,610



14,119



13,619


   Net interest income


34,460



30,115



130,606



112,462

Provision for loan losses


2,759



2,356



10,259



13,008


   Net interest income after

   provision for loan losses


31,701



27,759



120,347



99,454

Non-interest income:













Service charges on deposit accounts


1,168



837



4,265



3,228


Mortgage banking


507



359



2,047



2,513


Securities gains


-



-



3



131


Increase in cash surrender value life insurance


649



548



2,280



1,994


Other operating income


786



627



2,634



2,144


   Total non-interest income


3,110



2,371



11,229



10,010

Non-interest expense:













Salaries and employee benefits


6,332



6,541



31,017



26,324


Equipment and occupancy expense


1,335



1,350



5,547



5,202


Professional services


558



468



2,435



1,809


FDIC and other regulatory assessments


516



536



2,094



1,799


Other real estate owned expense


528



475



1,533



1,426


Other operating expense


3,874



2,928



14,972



10,929


   Total non-interest expense


13,143



12,298



57,598



47,489


   Income before income tax


21,668



17,832



73,978



61,975

Provision for income tax


6,636



5,964



21,601



20,358


         Net income


15,032



11,868



52,377



41,617


Dividends on preferred stock


115



116



431



416


         Net income available to

         common stockholders

$

14,917


$

11,752


$

51,946


$

41,201

Basic earnings per common share

$

0.60


$

0.55


$

2.18


$

2.00

Diluted earnings per common share

$

0.58


$

0.53


$

2.09


$

1.90

 


LOANS BY TYPE










(UNAUDITED)















(In thousands)

















4th Quarter 2014


3rd Quarter 2014


2nd Quarter 2014


1st Quarter 2014


4th Quarter 2013

Commercial, financial and agricultural

$

1,495,092


$

1,382,607


$

1,362,757


$

1,306,058


$

1,278,649

Real estate - construction


208,769



194,506



178,033



157,127



151,868

Real estate - mortgage:
















Owner-occupied commercial


793,917



773,432



708,294



711,067



710,372


1-4 family mortgage


333,455



314,778



296,220



285,368



278,621


Other mortgage


471,363



443,245



457,845



428,391



391,396

Subtotal: Real estate - mortgage


1,598,735



1,531,455



1,462,359



1,424,826



1,380,389

Consumer


57,262



51,204



50,840



49,786



47,962

Total loans

$

3,359,858


$

3,159,772


$

3,053,989


$

2,937,797


$

2,858,868

 

SUMMARY OF LOAN LOSS EXPERIENCE





(Dollars in thousands)
























4th Quarter 2014


3rd Quarter 2014


2nd Quarter 2014


1st Quarter 2014


4th Quarter 2013

Reserve for loan losses:




















Beginning balance

$

34,442



$

32,984



$

31,728



$

30,663



$

28,927


Loans charged off:





















Commercial financial and agricultural


416




531




142




1,222




95



Real estate - construction


309




610




325




23




557



Real estate - mortgage:


922




149




890




4




25



Consumer


21




131




18




58




38




Total charge off


1,668




1,421




1,375




1,307




715


Recoveries:





















Commercial financial and agricultural


2




-




1




45




16



Real estate - construction


37




97




180




8




70



Real estate - mortgage:


46




14




10




4




9



Consumer


11




20




2




1




-




Total recoveries


96




131




193




58




95



Net charge-off


1,572




1,290




1,182




1,249




620



Provision for loan losses


2,759




2,748




2,438




2,314




2,356



Ending balance

$

35,629



$

34,442



$

32,984



$

31,728



$

30,663


























Reserve for loan losses to total loans


1.06

%



1.09

%



1.08

%



1.08

%



1.07

%


Reserve for loan losses to total average loans


1.10

%



1.11

%



1.10

%



1.09

%



1.11

%


Net charge-offs to total average loans


0.19

%



0.17

%



0.16

%



0.17

%



0.09

%


Provision for loan losses to total average loans






















0.34

%



0.35

%



0.33

%



0.32

%



0.34

%


Nonperforming assets:






















Nonaccrual loans

$

9,125



$

16,078



$

13,193



$

9,084



$

9,621




Loans 90+ days past due and accruing


925




1,190




-




110




115




Other real estate owned and repossessed assets























6,840




6,940




6,739




9,752




12,861



Total

$

16,890



$

24,208



$

19,932



$

18,946



$

22,597


























Nonperforming loans to total loans


0.30

%



0.55

%



0.43

%



0.31

%



0.35

%


Nonperforming assets to total assets


0.41

%



0.61

%



0.53

%



0.53

%



0.64

%


Nonperforming assets to earning assets


0.42

%



0.62

%



0.54

%



0.55

%



0.66

%


Reserve for loan losses to nonaccrual loans


390.45

%



214.22

%



250.01

%



349.27

%



318.71

%

























Restructured accruing loans

$

8,295



$

2,067



$

7,030



$

9,411



$

9,689


























Restructured accruing loans to total loans


0.25

%



0.07

%



0.23

%



0.32

%



0.35

%



TROUBLED DEBT RESTRUCTURINGS (TDRs)

(In thousands)












































4th Quarter 2014


3rd Quarter 2014


2nd Quarter 2014


1st Quarter 2014


4th Quarter 2013

Beginning balance:

$

7,932



$

9,217



$

13,478



$

14,168



$

8,433



Additions


6,250




-




1,409




-




7,996



Net (paydowns) / advances


(4,492)




(802)




(5,080)




235




(2,261)



Charge-offs


(698)




(483)




(590)




(925)




-






$

8,992



$

7,932



$

9,217



$

13,478



$

14,168


 


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)





















4th Quarter
2014


3rd Quarter
2014


2nd Quarter
2014


1st Quarter
2014


4th Quarter
2013

Interest income:
















Interest and fees on loans

$

35,902


$

34,662


$

33,250


$

32,252


$

31,618


Taxable securities


1,143



1,131



1,126



1,097



1,052


Nontaxable securities


871



877



870



871



870


Federal funds sold


41



38



43



42



51


Other interest and dividends


206



149



135



19



134


   Total interest income


38,163



36,857



35,424



34,281



33,725


Deposits


3,256



3,123



3,027



3,014



3,202


Borrowed funds


447



415



419



418



408


   Total interest expense


3,703



3,538



3,446



3,432



3,610


   Net interest income


34,460



33,319



31,978



30,849



30,115

Provision for loan losses


2,759



2,748



2,438



2,314



2,356


   Net interest income after provision for loan losses


31,701



30,571



29,540



28,535



27,759

Non-interest income:
















Service charges on deposit accounts


1,168



1,172



1,057



868



837


Mortgage banking


507



582



674



284



344


Securities gains


-



3



-



-



-


Increase in cash surrender value life insurance


649



549



546



536



548


Other operating income


786



700



661



487



642


   Total non-interest income


3,110



3,006



2,938



2,175



2,371


Salaries and employee benefits


6,332



7,890



9,098



7,697



6,541


Equipment and occupancy expense


1,335



1,437



1,409



1,366



1,350


Professional services


558



829



532



516



480


FDIC and other regulatory assessments


516



533



528



517



536


Other real estate owned expense


528



220



298



487



475


Other operating expense


3,874



4,406



3,552



3,140



2,916


   Total non-interest expense


13,142



15,315



15,417



13,723



12,298


   Income before income tax


21,668



18,262



17,061



16,987



17,832

Provision for income tax


6,636



4,260



5,476



5,229



5,964


       Net income


15,032



14,002



11,585



11,758



11,868


Dividends on preferred stock


115



100



116



100



116


         Net income available to common stockholders

$

14,917


$

13,902


$

11,469


$

11,658


$

11,752

Basic earnings per common share

$

0.60


$

0.56


$

0.49


$

0.53


$

0.55

Diluted earnings per common share

$

0.58


$

0.54


$

0.46


$

0.51


$

0.53

 

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS - UNAUDITED

ON A FULLY TAXABLE-EQUIVALENT BASIS

(Dollars in thousands)









































4th Quarter 2014


3rd Quarter 2014


2nd Quarter 2014


1st Quarter 2014


4th Quarter 2013






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

$

3,215,400


4.41

%


$

3,081,435


4.44

%


$

2,978,631


4.46

%


$

2,892,433


4.52

%


$

2,754,955


4.54

%



Tax-exempt (2)


10,367


4.98




12,043


4.95




15,803


3.24




14,550


3.30




5,669


4.37



Mortgage loans held for sale


3,410


6.05




6,861


3.64




8,048


3.24




4,496


2.80




5,956


3.66



Debt securities:
































Taxable


195,533


2.32




195,220


2.29




188,148


2.40




174,842


2.54




166,027


2.49




Tax-exempt (2)


127,909


4.19




126,512


4.05




123,897


4.11




122,686


4.13




120,161


4.11





Total securities (3)


323,442


3.06




321,732


2.98




312,045


3.08




297,528


3.20




286,188


3.17



Federal funds sold


68,640


0.24




57,625


0.27




41,388


0.37




54,895


0.31




68,710


0.25



Restricted equity securities


3,418


3.95




3,418


3.83




3,446


7.57




3,738


-




3,738


2.55



Interest-bearing balances with banks


273,496


0.26




185,716


0.25




121,532


0.25




82,279


0.09




173,521


0.29



Total interest-earning assets


3,898,173


3.94

%



3,668,830


4.03

%



3,480,893


4.13

%



3,349,919


4.21

%



3,298,737


4.11

%

Non-interest-earning assets:































Cash and due from banks


58,973






58,340






57,387






56,082






53,062





Net premises and equipment


8,315






8,310






8,377






8,724






8,944





Allowance for loan losses,
































accrued interest and
































other assets


101,831






86,901






88,849






85,532






98,586







Total assets

$

4,067,292





$

3,822,381





$

3,635,506





$

3,500,257





$

3,459,329






































Interest-bearing liabilities:































Interest-bearing deposits:































Checking

$

511,451


0.26

%


$

484,291


0.26

%


$

482,115


0.27

%


$

478,678


0.27

%


$

472,751


0.27

%


Savings


28,806


0.29




26,584


0.28




25,406


0.28




25,081


0.27




21,755


0.27



Money market


1,645,533


0.45




1,555,091


0.44




1,472,346


0.44




1,416,645


0.45




1,420,771


0.47



Time deposits


395,598


1.03




394,158


1.05




402,613


1.08




412,622


1.10




412,254


1.13



Federal funds purchased


231,135


0.28




187,629


0.28




195,809


0.28




195,967


0.28




176,967


0.28



Other borrowings


19,969


5.62




19,961


5.62




19,953


5.69




19,945


5.75




19,936


5.63



Total interest-bearing liabilities


2,832,492


0.52

%



2,667,714


0.53

%



2,598,242


0.53

%



2,548,938


0.55

%



2,524,434


0.57

%

Non-interest-bearing liabilities:































Non-interest-bearing
































demand


823,738






751,831






675,098






641,450






640,476





Other liabilities


9,969






15,838






16,158






4,724






7,226





Stockholders' equity


395,981






382,025






341,120






300,512






282,549





Unrealized gains on securities and
































derivatives


5,112






4,973






4,888






4,634






4,644







Total liabilities and


































stockholders' equity

$

4,067,292





$

3,822,381





$

3,635,506





$

3,500,257





$

3,459,329




Net interest spread




3.42

%





3.51

%





3.60

%





3.67

%





3.54

%

Net interest margin




3.56

%





3.65

%





3.74

%





3.80

%





3.67

%



































(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.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/servisfirst-bancshares-inc-announces-results-for-fourth-quarter-and-year-ended-december-31-2014-300022994.html

SOURCE ServisFirst Bancshares, Inc.


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