ServisFirst Bancshares, Inc. Reports Second Quarter 2009 Earnings
BIRMINGHAM, Ala., July 20 /PRNewswire/ -- ServisFirst Bancshares, Inc. today reported earnings for the quarter and six months ending June 30, 2009.
Second Quarter 2009 Highlights:
-- Net income up 116% over 1st quarter, to $1.56 million
-- Tier 2 capital in Bank exceeds $124 million
-- FDIC special assessment fully expensed in 2nd quarter
-- Net interest margin improved 18 basis points quarter/quarter
"We are reporting another profitable quarter, well above our results in the first quarter, despite the accrual of the FDIC special assessment," said Bud Foshee, CFO. "In addition, we completed a $5 million subordinated debenture issue in the quarter, which enhances our ability to continue our growth without diluting our shareholders," said Foshee.
Tom Broughton, President and CEO, said "We are pleased, but never satisfied, with our continued strong performance despite the well-publicized woes of some banks and thrifts. The changes we are seeing present more opportunities than I have seen in my 30-year banking career."
About ServisFirst:
ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst provides business and personal financial services through locations in Birmingham, Huntsville, Montgomery and Dothan, Alabama.
ServisFirst 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," "would," "might" and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc. are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.'s senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements including: 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 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, economic stimulus initiatives and so-called "bailout" initiatives; 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 collectibility of loans and the value of collateral; the effect of natural disasters, such as hurricanes, in our geographic markets; and increased competition from both banks and non-bank financial institutions. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to "Risk Factors" in our most recent Annual Report on Form 10-K and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.
More information about ServisFirst Bancshares may be obtained over the internet at www.servisfirstbancshares.com or by calling (205) 949-0302.
Contact: ServisFirst Bank
Bud Foshee (205) 949-0307
BFoshee@servisfirstbank.com
SERVISFIRST BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except shares and per share data)
Three Months Ended
June 30, March 31,
2009 2008 2009
(Unaudited) (Unaudited) (Unaudited)
Total interest income $14,979 $13,341 $13,937
Total interest expense 4,478 4,647 4,891
Net interest income before provision 10,501 8,694 9,046
Provision for loan losses 2,608 2,137 2,460
Net interest income 7,893 6,557 6,586
Total noninterest income 1,282 695 919
Salaries and employee benefits 3,590 2,400 3,367
Other noninterest expense 3,292 2,130 3,065
Total noninterest expense 6,882 4,530 6,432
Income before taxes 2,293 2,722 1,073
Income taxes 734 972 352
Net income $ 1,559 $ 1,750 $ 721
Basic earnings per share $ 0.28 $ 0.34 $ 0.13
Diluted earnings per share $ 0.27 $ 0.33 $ 0.13
Average basic shares 5,513,482 5,113,482 5,401,914
Average fully diluted shares 5,809,655 5,290,093 5,689,409
Six Months Ended June 30,
2009 2008
(Unaudited) (Unaudited)
Total interest income $28,915 $27,176
Total interest expense 9,369 10,395
Net interest income before provision 19,546 16,781
Provision for loan losses 5,068 3,519
Net interest income 14,478 13,262
Total noninterest income 2,202 1,238
Salaries and employee benefits 6,956 5,227
Other noninterest expense 6,359 4,133
Total noninterest expense 13,315 9,360
Income before taxes 3,365 5,140
Income taxes 1,086 1,820
Net income $ 2,279 $ 3,320
Basic earnings per share $ 0.42 $ 0.65
Diluted earnings per share $ 0.40 $ 0.63
Average basic shares 5,458,006 5,113,482
Average fully diluted shares 5,750,527 5,287,917
SERVISFIRST BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, June 30, December 31,
2009 2008 2008
(Unaudited) (Unaudited) (Audited)
ASSETS
Cash and due from banks $19,490 $27,049 $53,618
Investment securities 111,814 91,773 102,339
Restricted equity securities 3,241 2,658 2,659
Federal funds sold and other investments 76,978 72 19,300
Mortgage loans held for sale 8,023 3,869 3,320
Loans 1,111,744 836,520 968,233
Reserve for loan losses (13,567) (9,438) (10,602)
Net loans 1,098,177 827,082 957,631
Foreclosed real estate 9,239 8,202 10,473
Other assets 15,381 12,405 12,932
Total assets $1,342,343 $973,110 $1,162,272
LIABILITIES
Liabilities:
Noninterest-bearing $139,169 $97,066 $121,459
Interest-bearing 1,067,316 750,359 915,860
Total deposits 1,206,485 847,425 1,037,319
Borrowings 40,073 46,622 35,087
Interest payable 1,071 1,336 1,280
Other liabilities 1,822 2,857 1,803
Total liabilities 1,249,451 898,240 1,075,489
Stockholders' equity 92,892 74,870 86,783
Total liabilities and stockholders'
equity $1,342,343 $973,110 $1,162,272
SERVISFIRST BANCSHARES, INC.
Key Ratios
Three Months Ended
June 30, March 31,
2009 2008 2009
(Unaudited) (Unaudited) (Unaudited)
Return on average assets 0.48% 0.74% 0.25%
Return on average equity 6.77% 9.31% 3.27%
Net interest margin (fully tax equivalent) 3.39% 3.84% 3.21%
Efficiency ratio 58.41% 48.25% 64.55%
Six Months Ended June 30,
2009 2008
(Unaudited) (Unaudited)
Return on average assets 0.37% 0.73%
Return on average equity 5.10% 8.95%
Net interest margin (fully tax equivalent) 3.30% 3.77%
Efficiency ratio 61.22% 51.94%
6/30/2009 6/30/2008 3/31/2009
(unaudited) (unaudited) (unaudited)
Book value per share $ 16.85 $ 14.65 $ 16.55
Tangible book value per share $ 16.85 $ 14.65 $ 16.55
% of reserve for loan losses to total
loans 1.22% 1.13% 1.21%
Nonperforming assets to total loans
plus foreclosed real estate 2.18% 1.57% 2.25%
SOURCE ServisFirst Bancshares, Inc.
Released July 20, 2009