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

SFBS

ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended December 31, 2024.

Fourth Quarter 2024 Highlights:

  • Diluted earnings per share of $1.19 for the quarter.
  • Diluted earnings per share increased 8% from the third quarter of 2024, and 31% from the year-ago quarter on an adjusted basis*.
  • Net interest margin increased 12 basis points from the third quarter of 2024.
  • Net interest income increased by $8.0 million, or 28% annualized, during the quarter.
  • Deposits grew by $397 million, or 12% annualized, during the quarter.
  • Loans grew by $268 million, or 9% annualized, during the quarter.
  • Cash dividend increased from $0.30 to $0.335 per share, a 12% increase.
  • Book value per share of $29.63, up 12.0% from the fourth quarter of 2023 and 11.6% annualized, from the third quarter of 2024.
  • Liquidity remains solid with $2.4 billion in cash on hand and no FHLB advances or brokered deposits.
  • Consolidated common equity tier 1 capital to risk-weighted assets increased from 10.91% to 11.42% year-over-year.
  • Credit quality continues to be strong with non-performing assets to total assets of 0.26%.

Tom Broughton, Chairman, President, and CEO, said, “With a solid loan pipeline, an improving margin, strong liquidity and strong credit quality, we are optimistic about the outlook for the bank for 2025.”

Ed Woodie, Interim CFO, said, “We continue to enjoy higher net interest income. Our margin expanded $8.0 million, a 28% annualized linked quarter increase. Operating efficiency remains a focus for us as we enter 2025.”

* This press release includes certain non-GAAP financial measures: adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity, adjusted efficiency ratio, tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

FINANCIAL SUMMARY (UNAUDITED)

(in Thousands except share and per share amounts)

Period Ending
December 31,
2024

Period Ending
September 30,
2024

% Change From
Period Ending
September 30,
2024 to Period
Ending
December 31,
2024

Period Ending
December 31,
2023

% Change From
Period Ending
December 31,
2023 to Period
Ending
December 31,
2024

QUARTERLY OPERATING RESULTS

Net Income

$

65,173

$

59,907

8.8

%

$

42,074

54.9

%

Net Income Available to Common Stockholders

$

65,142

$

59,907

8.7

%

$

42,043

54.9

%

Diluted Earnings Per Share

$

1.19

$

1.10

8.2

%

$

0.77

54.5

%

Return on Average Assets

1.52

%

1.43

%

1.04

%

Return on Average Common Stockholders' Equity

16.29

%

15.55

%

11.78

%

Average Diluted Shares Outstanding

54,649,808

54,642,582

54,548,719

Adjusted Net Income, net of tax*

$

65,173

$

59,907

8.8

%

$

49,891

30.6

%

Adjusted Net Income Available to Common

Stockholders, net of tax*

$

65,142

$

59,907

8.7

%

$

49,860

30.6

%

Adjusted Diluted Earnings Per Share, net of tax*

$

1.19

$

1.10

8.2

%

$

0.91

30.8

%

Adjusted Return on Average Assets, net of tax*

1.52

%

1.43

%

1.23

%

Adjusted Return on Average Common

Stockholders' Equity, net of tax*

16.29

%

15.55

%

13.98

%

YEAR-TO-DATE OPERATING RESULTS

Net Income

$

227,242

$

206,853

9.9

%

Net Income Available to Common Stockholders

$

227,180

$

206,791

9.9

%

Diluted Earnings Per Share

$

4.16

$

3.79

9.8

%

Return on Average Assets

1.39

%

1.37

%

Return on Average Common Stockholders' Equity

14.98

%

15.13

%

Average Diluted Shares Outstanding

54,624,234

54,530,797

Adjusted Net Income, net of tax*

$

228,589

$

214,670

6.5

%

Adjusted Net Income Available to Common

Stockholders, net of tax*

$

228,527

$

214,608

6.5

%

Adjusted Diluted Earnings Per Share, net of tax*

$

4.18

$

3.94

Adjusted Return on Average Assets, net of tax*

1.40

%

1.42

%

Adjusted Return on Average Common

Stockholders' Equity, net of tax*

15.07

%

15.71

%

BALANCE SHEET

Total Assets

$

17,351,643

$

16,449,178

5.5

%

$

16,129,668

7.6

%

Loans

12,605,836

12,338,226

2.2

%

11,658,829

8.1

%

Non-interest-bearing Demand Deposits

2,619,687

2,576,329

1.7

%

2,643,101

(0.9)

%

Total Deposits

13,543,459

13,146,529

3.0

%

13,273,511

2.0

%

Stockholders' Equity

1,616,772

1,570,269

3.0

%

1,440,405

12.2

%

* This press release includes certain non-GAAP financial measures: adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity, adjusted efficiency ratio, tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income of $65.2 million and net income available to common stockholders of $65.1 million for the quarter ended December 31, 2024, compared to net income and net income available to common stockholders of $59.9 million for the third quarter of 2024 and net income of $42.1 million and net income available to common stockholders of $42.0 million for the fourth quarter of 2023. Basic and diluted earnings per common share were both $1.19 in the fourth quarter of 2024, compared to $1.10 for both in the third quarter of 2024 and $0.77 for both in the fourth quarter of 2023.

Annualized return on average assets was 1.52% and annualized return on average common stockholders’ equity was 16.29% for the fourth quarter of 2024, compared to 1.04% and 11.78%, respectively, for the fourth quarter of 2023.

Net interest income was $123.2 million for the fourth quarter of 2024, compared to $115.1 million for the third quarter of 2024 and $101.7 million for the fourth quarter of 2023. The net interest margin in the fourth quarter of 2024 was 2.96% compared to 2.84% in the third quarter of 2024 and 2.57% in the fourth quarter of 2023. Loan yields were 6.43% during the fourth quarter of 2024 compared to 6.62% during the third quarter of 2024 and 6.32% during the fourth quarter of 2023. Investment yields were 3.49% during the fourth quarter of 2024 compared to 3.57% during the third quarter of 2024 and 3.08% during the fourth quarter of 2023. Average interest-bearing deposit rates were 3.63% during the fourth quarter of 2024, compared to 4.12% during the third quarter of 2024 and 4.06% during the fourth quarter of 2023. Average federal funds purchased rates were 4.80% during fourth quarter of 2024, compared to 5.42% during the third quarter of 2024 and 5.49% during the fourth quarter of 2023.

Average loans for the fourth quarter of 2024 were $12.43 billion, an increase of $60.6 million, or 1.9% annualized, from average loans of $12.37 billion for the third quarter of 2024, and an increase of $828.8 million, or 7.1%, from average loans of $11.60 billion for the fourth quarter of 2023. Ending total loans for the fourth quarter of 2024 were $12.61 billion, an increase of $267.6 million, or 8.7% annualized, from $12.34 billion for the third quarter of 2024, and an increase of $947.0 million, or 8.1%, from $11.66 billion for the fourth quarter of 2023.

Average total deposits for the fourth quarter of 2024 were $13.48 billion, a decrease of $32.6 million, or 1.0% annualized, from average total deposits of $13.52 billion for the third quarter of 2024, and an increase of $256.7 million, or 1.9%, from average total deposits of $13.23 billion for the fourth quarter of 2023. Ending total deposits for the fourth quarter of 2024 were $13.54 billion, an increase of $396.9 million, or 12.1% annualized, from $13.15 billion for the third quarter of 2024, and an increase of $269.9 million, or 2.0%, from $13.27 billion for the fourth quarter of 2023.

Non-performing assets to total assets were 0.26% for the fourth quarter of 2024, compared to 0.25% for the third quarter of 2024 and 0.14% for the fourth quarter of 2023. The increase in non-performing assets to total assets year-over-year can primarily be attributed to a single relationship that moved to non-accrual status during the first quarter of 2024. Annualized net charge-offs to average loans were 0.09% for the fourth quarter of 2024, compared to 0.09% for the third quarter of 2024 and 0.09% for the fourth quarter of 2023. The allowance for credit losses as a percentage of total loans at December 31, 2024, September 30, 2024, and December 31, 2023, was 1.30%, 1.30%, and 1.32%, respectively. We recorded a $6.4 million provision for credit losses in the fourth quarter of 2024 and $5.4 million in the third quarter of 2024, $2.7 million of which is a provision for the potential impact of Hurricane Helene and Milton during the third quarter of 2024. Management is still assessing the effects of both hurricanes and has decided to leave the current provision unchanged while determining if additional provisions are warranted. We recorded provisions for credit losses of $3.6 million in the fourth quarter of 2023.

Non-interest income increased $1.4 million, or 19.3%, to $8.8 million for the fourth quarter of 2024 from $7.4 million in the fourth quarter of 2023, and increased $254,000, or 3.0%, on a linked quarter basis. Service charges on deposit accounts increased $469,000, or 21.5%, to $2.7 million for the fourth quarter of 2024 from $2.2 million in the fourth quarter of 2023, and increased $309,000, or 13.2%, on a linked quarter basis. Mortgage banking revenue increased $721,000, or 91.0%, to $1.5 million for the fourth quarter of 2024 from $792,000 in the fourth quarter of 2023, and increased $161,000, or 11.9%, on a linked quarter basis. Closed loans increased 55% during the fourth quarter of 2024 compared to the fourth quarter of 2023. Net credit card income decreased $137,000, or 6.8%, to $1.9 million for the fourth quarter of 2024 from $2.0 million in the fourth quarter of 2023, and decreased $58,000, or 3.0%, on a linked quarter basis. Bank-owned life insurance (“BOLI”) income increased $492,000, or 30.0%, to $2.1 million for the fourth quarter of 2024 from $1.6 million in the fourth quarter of 2023, and increased $18,000, or 0.9%, on a linked quarter basis. Other operating income decreased $121,000, or 15.9%, to $642,000 for the fourth quarter of 2024 from $763,000 in the fourth quarter of 2023, and decreased $176,000, or 21.5%, on a linked quarter basis.

Non-interest expense decreased $11.4 million, or 19.5%, to $46.9 million for the fourth quarter of 2024 from $58.3 million in the fourth quarter of 2023, and increased $1.3 million, or 2.8%, on a linked quarter basis. Salary and benefit expense increased $1.0 million, or 4.5%, to $24.1 million for the fourth quarter of 2024 from $23.0 million in the fourth quarter of 2023, and decreased $995,000, or 4.0%, on a linked quarter basis. The number of full-time equivalent (“FTE”) employees increased by 39, or 6.60% to 630 at December 31, 2024 compared to 591 at December 31, 2023, and increased by 10, or 1.61%, from the end of the third quarter of 2024. Equipment and occupancy expense decreased $260,000, or 6.7%, to $3.6 million for the fourth quarter of 2024 from $3.9 million in the fourth quarter of 2023, and decreased $195,000, or 5.1%, on a linked quarter basis. Third party processing and other services expense increased $674,000, or 8.6%, to $8.5 million for the fourth quarter of 2024 from $7.8 million in the fourth quarter of 2023, and increased $480,000, or 6.0%, on a linked quarter basis. Professional services expense increased $564,000, or 39.8%, to $2.0 million for the fourth quarter of 2024 from $1.4 million in the fourth quarter of 2023, and increased $266,000, or 15.5%, on a linked quarter basis. FDIC and other regulatory assessments decreased $7.3 million, or 76.6%, to $2.2 million for the fourth quarter of 2024 from $9.5 million in the fourth quarter of 2023, and decreased $130,000, or 5.5%, on a linked quarter basis. In the first quarter of 2024 and fourth quarter of 2023, the FDIC implemented a special assessment adjustment to recapitalize the Deposit Insurance Fund, see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” for more discussion. Other operating expenses decreased $6.1 million, or 48.7%, to $6.5 million for the fourth quarter of 2024 from $12.6 million in the fourth quarter of 2023, and increased $1.9 million, or 41.2%, on a linked quarter basis. An incremental expense in the fourth quarter of 2023 related to tax credit investments of $3.3 million, contributed to the decrease in other operating expenses year-over-year. In addition, the following items, which management viewed as unusual, infrequent, or not reflective of future normal operating expenses within the control of management, contributed to non-interest expense during the fourth quarter of 2023: the FDIC special assessment expense of $7.2 million, an EDP contract termination and related capitalized cost write-offs of $1.1 million to other operating expenses, and an adjustment to a privilege tax accrual resulting in a $2.2 million expense to other operating expenses. See “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below for more discussion of these expenses. The efficiency ratio was 35.54% during the fourth quarter of 2024 compared to 55.23% during the fourth quarter of 2023 and 36.90% during the third quarter of 2024.

Income tax expense increased $9.0 million, or 175.6%, to $14.2 million in the fourth quarter of 2024, compared to $5.2 million in the fourth quarter of 2023. Our effective tax rate was 17.89% for the fourth quarter of 2024 compared to 10.91% for the fourth quarter of 2023. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the fourth quarters of 2024 and 2023 of $624,000 and $252,000, respectively.

About ServisFirst Bancshares, Inc.

ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia. We also operate loan production offices in Florida and Tennessee. Through the ServisFirst Bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions.

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

Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. The words "believe," "expect," "anticipate," "project," “plan,” “intend,” “will,” “could,” “would,” “might” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.’s senior management and involve risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including, but not limited to: general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes as a result of our reclassification as a large financial institution by the FDIC; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; and increased competition from both banks and non-bank financial institutions. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K, in our Quarterly Reports on Form 10-Q for fiscal year 2024, and our other SEC filings. If one or more of the assumption forming the basis of our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.

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

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

(In thousands except share and per share data)

4th Quarter 2024

3rd Quarter 2024

2nd Quarter 2024

1st Quarter 2024

4th Quarter 2023

CONSOLIDATED STATEMENT OF INCOME

Interest income

$

243,892

$

247,979

$

227,540

$

226,710

$

229,062

Interest expense

120,724

132,858

121,665

124,215

127,375

Net interest income

123,168

115,121

105,875

102,495

101,687

Provision for credit losses

5,704

5,659

5,353

4,368

3,582

Net interest income after provision for credit losses

117,464

109,462

100,522

98,127

98,105

Non-interest income

8,803

8,549

8,891

8,813

7,379

Non-interest expense

46,896

45,632

42,818

46,303

58,258

Income before income tax

79,371

72,379

66,595

60,637

47,226

Provision for income tax

14,198

12,472

14,459

10,611

5,152

Net income

65,173

59,907

52,136

50,026

42,074

Preferred stock dividends

31

-

31

-

31

Net income available to common stockholders

$

65,142

$

59,907

$

52,105

$

50,026

$

42,043

Earnings per share - basic

$

1.19

$

1.10

$

0.96

$

0.92

$

0.77

Earnings per share - diluted

$

1.19

$

1.10

$

0.95

$

0.92

$

0.77

Average diluted shares outstanding

54,649,808

54,642,582

54,608,679

54,595,384

54,548,719

CONSOLIDATED BALANCE SHEET DATA

Total assets

$

17,351,643

$

16,449,178

$

16,049,812

$

15,721,630

$

16,129,668

Loans

12,605,836

12,338,226

12,332,780

11,880,696

11,658,829

Debt securities

1,876,253

1,867,587

1,941,641

1,941,625

1,882,847

Non-interest-bearing demand deposits

2,619,687

2,576,329

2,475,415

2,627,639

2,643,101

Total deposits

13,543,459

13,146,529

13,259,392

12,751,448

13,273,511

Borrowings

64,743

64,741

64,739

64,737

64,735

Stockholders' equity

1,616,772

1,570,269

1,510,576

1,476,036

1,440,405

Shares outstanding

54,570,138

54,551,543

54,521,479

54,507,778

54,461,580

Book value per share

$

29.63

$

28.79

$

27.71

$

27.08

$

26.45

Tangible book value per share (1)

$

29.38

$

28.54

$

27.46

$

26.83

$

26.20

SELECTED FINANCIAL RATIOS (Annualized)

Net interest margin

2.96

%

2.84

%

2.79

%

2.66

%

2.57

%

Return on average assets

1.52

%

1.43

%

1.34

%

1.26

%

1.04

%

Return on average common stockholders' equity

16.29

%

15.55

%

14.08

%

13.82

%

11.78

%

Efficiency ratio

35.54

%

36.90

%

37.31

%

43.30

%

55.23

%

Non-interest expense to average earning assets

1.13

%

1.13

%

1.13

%

1.20

%

1.47

%

CAPITAL RATIOS (2)

Common equity tier 1 capital to risk-weighted assets

11.42

%

11.25

%

10.93

%

11.07

%

10.91

%

Tier 1 capital to risk-weighted assets

11.42

%

11.25

%

10.93

%

11.08

%

10.92

%

Total capital to risk-weighted assets

12.90

%

12.77

%

12.43

%

12.61

%

12.45

%

Tier 1 capital to average assets

9.59

%

9.54

%

9.81

%

9.44

%

9.12

%

Tangible common equity to total tangible assets (1)

9.25

%

9.47

%

9.33

%

9.31

%

8.85

%

(1) This press release contains certain non-GAAP financial measures. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

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

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, including adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity, and adjusted efficiency ratio. During the fourth quarter of 2023, we recorded a one-time expense of $7.2 million associated with the FDIC’s special assessment to recapitalize the Deposit Insurance Fund following bank failures in the spring of 2023. This assessment was updated in the first quarter of 2024 resulting in additional expense of $1.8 million. Additionally, during the fourth quarter of 2023 we experienced expenses for the termination of an EDP contract and related capitalized cost write-offs resulting in $1.1 million in expenses, and an adjustment to a privilege tax accrual resulting in a $2.2 million expense. The EDP contract termination costs were related to a planned systems conversion that was canceled. We determined the benefits to our clients were less than expected and the disruption outweighed the benefits. We can continue to provide best-in-class products with our current service provider. The adjustment to the privilege tax accrual was due to an under-accrual in previous years, and the correction resulted in duplicate expenses for 2023. These expenses are unusual, or infrequent, in nature and not part of the noninterest expense run rate. Each of adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity and adjusted efficiency ratio excludes the impact of these items, net of tax, and are all considered non-GAAP financial measures. This press release also contains the non-GAAP financial measures of tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill associated with our acquisition of Metro Bancshares, Inc. in January 2015.

We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data.

At December 31,
2024

At September 30,
2024

At June 30,
2024

At March 31,
2024

At December 31,
2023

Book value per share - GAAP

$

29.63

$

28.79

$

27.71

$

27.08

$

26.45

Total common stockholders' equity - GAAP

1,616,772

1,570,269

1,570,994

1,476,036

1,440,405

Adjustment for Goodwill

(13,615

)

(13,615

)

(13,615

)

(13,615

)

(13,615

)

Tangible common stockholders' equity - non-GAAP

$

1,603,157

$

1,556,654

$

1,557,379

$

1,462,421

$

1,426,790

Tangible book value per share - non-GAAP

$

29.38

$

28.54

$

27.46

$

26.83

$

26.22

Stockholders' equity to total assets - GAAP

9.32

%

9.55

%

9.55

%

9.39

%

8.93

%

Total assets - GAAP

$

17,351,643

$

16,449,178

$

16,448,582

$

16,048,819

$

16,129,668

Adjustment for Goodwill

(13,615

)

(13,615

)

(13,615

)

(13,615

)

(13,615

)

Total tangible assets - non-GAAP

$

17,338,028

$

16,435,563

$

16,434,967

$

16,035,204

$

16,116,053

Tangible common equity to total tangible assets - non-GAAP

9.25

%

9.47

%

9.48

%

9.33

%

8.85

%

Three Months
Ended December
31, 2024

Three Months
Ended December
31, 2023

Year Ended
December 31,
2024

Year Ended
December 31,
2023

Net income - GAAP

$

65,173

$

42,074

$

227,242

$

206,853

Adjustments:

FDIC special assessment

-

7,152

1,799

7,152

Privilege tax expense

-

2,150

-

2,150

EDP contract termination expense

-

1,134

-

1,134

Tax on adjustments

-

(2,619

)

(452

)

(2,619

)

Adjusted net income - non-GAAP

$

65,173

$

49,891

$

228,589

$

214,670

Net income available to common stockholders - GAAP

$

65,142

$

42,043

$

227,180

$

206,791

Adjustments:

FDIC special assessment

-

7,152

1,799

7,152

Privilege tax expense

-

2,150

-

2,150

EDP contract termination expense

-

1,134

-

1,134

Tax on adjustments

-

(2,619

)

(452

)

(2,619

)

Adjusted net income available to common stockholders - non-GAAP

$

65,142

$

49,860

$

228,527

$

214,608

Diluted earnings per share - GAAP

$

1.19

$

0.77

$

4.16

$

3.79

Adjustments:

FDIC special assessment

-

0.13

0.03

0.13

Privilege tax expense

-

0.04

-

0.04

EDP contract termination expense

-

0.02

-

0.02

Tax on adjustments

-

(0.05

)

(0.01

)

(0.05

)

Adjusted diluted earnings per share - non-GAAP

$

1.19

$

0.91

$

4.18

$

3.94

Return on average assets - GAAP

1.52

%

1.04

%

1.39

%

1.37

%

Net income available to common stockholders - GAAP

$

65,142

$

42,074

$

227,180

$

206,853

Adjustments:

FDIC special assessment

-

7,152

1,799

7,152

Privilege tax expense

-

2,150

-

2,150

EDP contract termination expense

-

1,134

-

1,134

Tax on adjustments

-

(2,619

)

(452

)

(2,619

)

Adjusted net income available to common stockholders - non-GAAP

$

65,142

$

49,891

$

228,527

$

214,670

Average assets - GAAP

$

17,037,383

$

16,122,074

$

16,333,383

$

15,066,716

Adjusted return on average assets - non-GAAP

1.52

%

1.23

%

1.40

%

1.42

%

Return on average common stockholders' equity - GAAP

16.29

%

11.78

%

14.98

%

15.13

%

Net income available to common stockholders - GAAP

$

65,142

$

42,074

$

227,180

$

206,853

Adjustments:

FDIC special assessment

-

7,152

1,799

7,152

Privilege tax expense

-

2,150

-

2,150

EDP contract termination expense

-

1,134

-

1,134

Tax on adjustments

-

(2,619

)

(452

)

(2,619

)

Adjusted diluted earnings per share - non-GAAP

$

65,142

$

49,891

$

228,527

$

214,670

Average common stockholders' equity - GAAP

$

1,591,248

$

1,415,866

$

1,516,855

$

1,366,708

Adjusted return on average common stockholders' equity non-GAAP

16.29

%

13.98

%

15.07

%

15.71

%

Efficiency ratio

35.54

%

55.23

%

37.71

%

40.67

%

Non-interest expense - GAAP

$

46,896

$

56,480

$

181,146

$

176,273

Adjustments:

FDIC special assessment

-

7,152

1,799

7,152

Privilege tax expense

-

2,150

-

2,150

EDP contract termination expense

-

1,134

-

1,134

Adjusted non-interest expense

$

46,896

$

46,044

$

179,347

$

165,837

Net interest income plus non-interest income - GAAP

$

131,971

$

109,066

$

481,715

$

441,354

Adjusted efficiency ratio - non-GAAP

35.54

%

42.22

%

37.23

%

37.57

%

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

December 31,
2024

December 31,
2023

%
Change

ASSETS

Cash and due from banks

$

116,394

$

123,430

(6

)

%

Interest-bearing balances due from depository institutions

2,259,195

1,907,083

18

%

Federal funds sold

1,045

100,575

(99

)

%

Cash and cash equivalents

2,376,634

2,131,088

12

%

Available for sale debt securities, at fair value

1,161,400

900,183

29

%

Held to maturity debt securities (fair value of $639,496 and $907,191, respectively)

714,853

982,664

(27

)

%

Restricted equity securities

11,300

10,226

11

%

Mortgage loans held for sale

9,211

5,074

82

%

Loans

12,605,836

11,658,829

8

%

Less allowance for credit losses

(164,458

)

(153,317

)

7

%

Loans, net

12,441,378

11,505,512

8

%

Premises and equipment, net

59,185

59,324

-

%

Goodwill

13,615

13,615

-

%

Other assets

564,067

521,982

8

%

Total assets

$

17,351,643

$

16,129,668

8

%

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing demand

$

2,619,687

$

2,643,101

(1

)

%

Interest-bearing

10,923,772

10,630,410

3

%

Total deposits

13,543,459

13,273,511

2

%

Federal funds purchased

1,993,728

1,256,724

59

%

Other borrowings

64,743

64,735

-

%

Other liabilities

132,941

94,293

41

%

Total liabilities

15,734,871

14,689,263

7

%

Stockholders' equity:

Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at December 31, 2024 and December 31, 2023

-

-

-

%

Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,570,138 shares issued and outstanding at December 31, 2024, and 54,425,447 shares issued and outstanding at December 31, 2023

54

54

-

%

Additional paid-in capital

235,781

232,605

1

%

Retained earnings

1,412,616

1,254,841

13

%

Accumulated other comprehensive loss

(32,179

)

(47,595

)

(32

)

%

Total stockholders' equity attributable to ServisFirst Bancshares, Inc.

1,616,272

1,439,905

12

%

Noncontrolling interest

500

500

-

%

Total stockholders' equity

1,616,772

1,440,405

12

%

Total liabilities and stockholders' equity

$

17,351,643

$

16,129,668

8

%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Interest income:

Interest and fees on loans

$

200,875

$

184,897

$

788,105

$

699,101

Taxable securities

16,905

15,512

66,535

53,499

Nontaxable securities

6

12

31

65

Federal funds sold

18

1,018

1,128

2,844

Other interest and dividends

26,088

27,623

90,322

57,737

Total interest income

243,892

229,062

946,121

813,246

Interest expense:

Deposits

98,702

108,155

420,650

331,740

Borrowed funds

22,022

19,220

78,812

70,569

Total interest expense

120,724

127,375

499,462

402,309

Net interest income

123,168

101,687

446,659

410,937

Provision for credit losses

5,704

3,582

21,587

18,715

Net interest income after provision for credit losses

117,464

98,105

425,072

392,222

Non-interest income:

Service charges on deposit accounts

2,650

2,181

9,434

8,420

Mortgage banking

1,513

792

4,922

2,755

Credit card income

1,867

2,004

8,280

8,631

Bank-owned life insurance income

2,131

1,639

9,533

7,574

Other operating income

642

763

2,887

3,037

Total non-interest income

8,803

7,379

35,056

30,417

Non-interest expense:

Salaries and employee benefits

24,062

23,024

96,318

80,965

Equipment and occupancy expense

3,600

3,860

14,519

14,295

Third party processing and other services

8,515

7,841

31,181

27,872

Professional services

1,981

1,417

6,901

5,916

FDIC and other regulatory assessments

2,225

9,509

10,687

15,614

Other real estate owned expense

58

17

199

47

Other operating expense

6,455

12,590

21,341

33,342

Total non-interest expense

46,896

58,258

181,146

178,051

Income before income tax

79,371

47,226

278,982

244,588

Provision for income tax

14,198

5,152

51,740

37,735

Net income

65,173

42,074

227,242

206,853

Dividends on preferred stock

31

31

62

62

Net income available to common stockholders

$

65,142

$

42,043

$

227,180

$

206,791

Basic earnings per common share

$

1.19

$

0.77

$

4.17

$

3.80

Diluted earnings per common share

$

1.19

$

0.77

$

4.16

$

3.79

LOANS BY TYPE (UNAUDITED)

(In thousands)

4th quarter 2024

3rd quarter 2024

2nd quarter 2024

1st quarter 2024

4th quarter 2023

Commercial, financial and agricultural

$

2,869,894

$

2,793,989

$

2,935,577

$

2,834,102

$

2,823,986

Real estate - construction

1,489,306

1,439,648

1,510,677

1,546,716

1,519,619

Real estate - mortgage:

Owner-occupied commercial

2,547,143

2,441,687

2,399,644

2,377,042

2,257,163

1-4 family mortgage

1,444,623

1,409,981

1,350,428

1,284,888

1,249,938

Non-owner occupied commercial

4,181,243

4,190,935

4,072,007

3,777,758

3,744,346

Subtotal: Real estate - mortgage

8,173,009

8,042,603

7,822,079

7,439,688

7,251,447

Consumer

73,627

61,986

64,447

60,190

63,777

Total loans

$

12,605,836

$

12,338,226

$

12,332,780

$

11,880,696

$

11,658,829

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)

(Dollars in thousands)

4th quarter 2024

3rd quarter 2024

2nd quarter 2024

1st quarter 2024

4th quarter 2023

Allowance for credit losses:

Beginning balance

$

160,755

$

158,092

$

155,892

$

153,317

$

152,247

Loans charged off:

Commercial, financial and agricultural

3,899

3,020

3,355

1,842

2,831

Real estate - construction

-

-

-

-

89

Real estate - mortgage

560

252

119

67

14

Consumer

211

155

108

98

231

Total charge offs

4,670

3,427

3,582

2,007

3,165

Recoveries:

Commercial, financial and agricultural

1,801

616

406

199

614

Real estate - construction

-

-

8

-

-

Real estate - mortgage

23

2

-

6

-

Consumer

151

37

15

9

39

Total recoveries

1,975

655

429

214

653

Net charge-offs

2,695

2,772

3,153

1,793

2,512

Provision for credit losses

6,398

5,435

5,353

4,368

3,582

Ending balance

$

164,458

$

160,755

$

158,092

$

155,892

$

153,317

Allowance for credit losses to total loans

1.30

%

1.30

%

1.28

%

1.31

%

1.32

%

Allowance for credit losses to total average loans

1.32

%

1.30

%

1.31

%

1.33

%

1.32

%

Net charge-offs to total average loans

0.09

%

0.09

%

0.10

%

0.06

%

0.09

%

Provision for credit losses to total average loans

0.20

%

0.17

%

0.18

%

0.15

%

0.12

%

Nonperforming assets:

Nonaccrual loans

$

39,500

$

37,075

$

33,454

$

34,457

$

19,349

Loans 90+ days past due and accruing

2,965

2,093

1,482

380

2,184

Other real estate owned and

repossessed assets

2,531

2,723

1,458

490

995

Total

$

44,996

$

41,891

$

36,394

$

35,327

$

22,528

Nonperforming loans to total loans

0.34

%

0.32

%

0.28

%

0.29

%

0.18

%

Nonperforming assets to total assets

0.26

%

0.25

%

0.23

%

0.22

%

0.14

%

Nonperforming assets to earning assets

0.26

%

0.26

%

0.23

%

0.23

%

0.14

%

Allowance for credit losses to nonaccrual loans

416.35

%

433.59

%

472.57

%

452.42

%

795.17

%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands except per share data)

4th Quarter
2024

3rd Quarter
2024

2nd Quarter
2024

1st Quarter
2024

4th Quarter
2023

Interest income:

Interest and fees on loans

$

200,875

$

205,952

$

194,300

$

186,978

$

184,897

Taxable securities

16,905

17,493

16,158

15,979

15,512

Nontaxable securities

6

7

9

9

12

Federal funds sold

18

31

538

541

1,018

Other interest and dividends

26,088

24,496

16,535

23,203

27,623

Total interest income

243,892

247,979

227,540

226,710

229,062

Interest expense:

Deposits

98,702

113,211

104,671

104,066

108,155

Borrowed funds

22,022

19,647

16,994

20,149

19,220

Total interest expense

120,724

132,858

121,665

124,215

127,375

Net interest income

123,168

115,121

105,875

102,495

101,687

Provision for credit losses

5,704

5,659

5,353

4,368

3,582

Net interest income after provision for credit losses

117,464

109,462

100,522

98,127

98,105

Non-interest income:

Service charges on deposit accounts

2,650

2,341

2,293

2,150

2,181

Mortgage banking

1,513

1,352

1,379

678

792

Credit card income

1,867

1,925

2,333

2,155

2,004

Bank-owned life insurance income

2,131

2,113

2,058

3,231

1,639

Other operating income

642

818

828

599

763

Total non-interest income

8,803

8,549

8,891

8,813

7,379

Non-interest expense:

Salaries and employee benefits

24,062

25,057

24,213

22,986

23,024

Equipment and occupancy expense

3,600

3,795

3,567

3,557

3,860

Third party processing and other services

8,515

8,035

7,465

7,166

7,841

Professional services

1,981

1,715

1,741

1,464

1,417

FDIC and other regulatory assessments

2,225

2,355

2,202

3,905

9,509

Other real estate owned expense

58

103

7

30

17

Other operating expense

6,455

4,572

3,623

7,195

12,590

Total non-interest expense

46,896

45,632

42,818

46,303

58,258

Income before income tax

79,371

72,379

66,595

60,637

47,226

Provision for income tax

14,198

12,472

14,459

10,611

5,152

Net income

65,173

59,907

52,136

50,026

42,074

Dividends on preferred stock

31

-

31

-

31

Net income available to common stockholders

$

65,142

$

59,907

$

52,105

$

50,026

$

42,043

Basic earnings per common share

$

1.19

$

1.10

$

0.96

$

0.92

$

0.77

Diluted earnings per common share

$

1.19

$

1.10

$

0.95

$

0.92

$

0.77

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)

ON A FULLY TAXABLE-EQUIVALENT BASIS

(Dollars in thousands)

4th Quarter 2024

3rd Quarter 2024

2nd Quarter 2024

1st Quarter 2024

4th Quarter 2023

Average
Balance

Yield /
Rate

Average
Balance

Yield /
Rate

Average
Balance

Yield /
Rate

Average
Balance

Yield /
Rate

Average
Balance

Yield /
Rate

Assets:

Interest-earning assets:

Loans, net of unearned income (1)

Taxable

$

12,414,065

6.43

%

$

12,351,073

6.63

%

$

12,045,743

6.48

%

$

11,723,391

6.41

%

$

11,580,716

6.33

%

Tax-exempt (2)

13,198

1.57

15,584

1.86

17,230

2.08

17,605

5.00

17,787

4.71

Total loans, net of unearned income

12,427,263

6.43

12,366,657

6.62

12,062,973

6.48

11,740,996

6.40

11,598,503

6.32

Mortgage loans held for sale

9,642

5.36

10,674

3.80

6,761

6.13

4,770

5.57

5,105

6.22

Debt securities:

Taxable

1,932,547

3.49

1,955,632

3.57

1,936,818

3.33

2,013,295

3.16

2,007,636

3.08

Tax-exempt (2)

606

5.28

815

4.42

1,209

3.64

1,296

3.40

1,739

2.30

Total securities (3)

1,933,153

3.49

1,956,447

3.57

1,938,027

3.33

2,014,591

3.16

2,009,375

3.08

Federal funds sold

1,596

4.49

2,106

5.86

38,475

5.62

37,298

5.83

72,178

5.60

Restricted equity securities

11,290

6.80

11,290

7.36

11,290

7.16

10,417

7.57

10,216

8.74

Interest-bearing balances with banks

2,143,474

4.81

1,775,192

5.46

1,183,482

5.57

1,687,977

5.48

1,981,411

5.49

Total interest-earning assets

$

16,526,418

5.87

%

$

16,122,366

6.12

%

$

15,241,008

6.01

%

$

15,496,049

5.88

%

$

15,676,788

5.80

%

Non-interest-earning assets:

Cash and due from banks

103,494

103,539

96,646

98,813

101,741

Net premises and equipment

60,708

60,607

59,653

60,126

60,110

Allowance for credit losses, accrued interest and other assets

346,763

340,621

300,521

302,592

283,435

Total assets

$

17,037,383

$

16,627,133

$

15,697,828

$

15,957,580

$

16,122,074

Interest-bearing liabilities:

Interest-bearing deposits:

Checking

$

2,353,439

2.61

%

$

2,318,384

2.97

%

$

2,227,527

2.85

%

$

2,339,548

2.69

%

$

2,245,431

2.91

%

Savings

102,858

1.52

102,627

1.76

105,955

1.71

106,924

1.76

107,035

1.72

Money market

7,067,265

3.86

7,321,503

4.45

6,810,799

4.46

6,761,495

4.48

7,106,190

4.44

Time deposits

1,286,754

4.45

1,197,650

4.52

1,157,528

4.47

1,164,204

4.37

1,111,350

4.18

Total interest-bearing deposits

10,810,316

3.63

10,940,164

4.12

10,301,809

4.09

10,372,171

4.04

10,570,006

4.06

Federal funds purchased

1,767,749

4.80

1,391,118

5.42

1,193,190

5.50

1,422,828

5.50

1,338,110

5.49

Other borrowings

64,738

4.22

64,738

4.22

64,738

4.27

64,736

4.26

64,734

4.23

Total interest-bearing liabilities

$

12,642,803

3.80

%

$

12,396,020

4.26

%

$

11,559,737

4.23

%

$

11,859,735

4.21

%

$

11,972,850

4.22

%

Non-interest-bearing liabilities:

Non-interest-bearing checking

2,672,875

2,575,575

2,560,245

2,550,841

2,656,504

Other liabilities

130,457

122,455

89,418

91,066

76,651

Stockholders' equity

1,624,084

1,574,902

1,536,013

1,503,240

1,475,366

Accumulated other comprehensive loss

(32,836

)

(41,819

)

(47,584

)

(47,302

)

(59,297

)

Total liabilities and stockholders' equity

$

17,037,383

$

16,627,133

$

15,697,828

$

15,957,580

$

16,122,074

Net interest spread

2.07

%

1.86

%

1.78

%

1.67

%

1.58

%

Net interest margin

2.96

%

2.84

%

2.79

%

2.66

%

2.57

%

(1) Average loans include nonaccrual loans in all periods. Loan fees of $4,460, $3,949, $3,317, $3,655, and $4,175 are included in interest income in the fourth quarter of 2024, third quarter of 2024, second quarter of 2024, first quarter of 2024, and fourth quarter of 2023, respectively.

(2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%.

(3) Unrealized losses on debt securities of $(44,073), $(48,770, $(67,823), $(68,162), and $(84,647) for the fourth quarter of 2024, third quarter of 2024, second quarter of 2024, first quarter of 2024, and fourth quarter of 2023, respectively, are excluded from the yield calculation.



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