ServisFirst Bancshares, Inc. Reports Second Quarter 2008 Earnings
BIRMINGHAM, Ala.--(BUSINESS WIRE)--
ServisFirst Bancshares, Inc. today reported earnings for the quarter ending June 30, 2008.
SECOND QUARTER 2008 HIGHLIGHTS:
-- Net Income of $1.75 million: 35% increase year/year
-- Deposit growth: 31% year/year
-- Total Asset growth: 39% year/year
ServisFirst Bancshares, Inc. announced today that its net income for the second quarter of 2008 was $1.75 million compared to $1.3 million for the second quarter of 2007. Fully diluted earnings per share were $.33 in the second quarter of 2008 compared to $.29 in the second quarter of 2007.
Tom Broughton, President and CEO, stated, "We continue to focus on our customers while many competitors are distracted by problems some banks within our industry are facing. We have sophisticated customers who know our bankers and have confidence in our performance."
Bud Foshee, Chief Financial Officer, stated, "We are pleased with our increasing profitability and growth in our three markets of Birmingham, Huntsville and Montgomery. Additionally, our credit quality is well above the industry peer group with no exposure to subprime mortgages or troubled investment securities and have no brokered deposits or indirect loans."
ABOUT SERVISFIRST:
ServisFirst Bancshares, Inc. became a holding company in the fourth quarter of 2007 when it acquired all the shares of ServisFirst Bank. ServisFirst Bank was formed in Birmingham in May 2005, opened ServisFirst Bank Huntsville in August 2006, and opened ServisFirst Bank Montgomery in June 2007.
ServisFirst Bancshares, Inc. registered with the U.S. Securities and Exchange Commission (SEC) as a filing company during the second quarter and its filings are published on the SEC's website at www.sec.gov.
Statements in this document 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. ServisFirst Bancshares, Inc. cautions that such "forward looking statements," wherever they occur in this document 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 important factors set forth from time to time in ServisFirst Bancshares, Inc.'s reports and registration statements filed with the SEC. While it is impossible to list all such factors that could affect the accuracy of such "forward looking statements," some of those factors include: 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 the competitive environment in the markets served by ServisFirst Bancshares, Inc.; changes in the loan portfolio and the deposit base of ServisFirst Bancshares, Inc..
More information about ServisFirst Bancshares may be obtained over the internet at http://www.servisfirstbancshares.com or by calling (205) 949-0302.
SERVISFIRST BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT SHARES AND PER SHARE DATA)
Three
Three Months Ended months
June 30, ended
March 31,
2008 2007 2008
------------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
------------- ----------- -----------
Total Interest Income $ 13,341 $ 12,130 $ 13,835
------------- ----------- -----------
Total interest expense $ 4,647 $ 6,133 $ 5,748
------------- ----------- -----------
Net interest income before
provision $ 8,694 $ 5,997 $ 8,087
Provision for loan losses $ 2,137 $ 816 $ 1,383
------------- ----------- -----------
Net interest income $ 6,557 $ 5,181 $ 6,704
------------- ----------- -----------
Total Noninterest Income $ 695 $ 302 $ 544
------------- ----------- -----------
Salaries and employee benefits $ 2,400 $ 2,116 $ 2,826
Other $ 2,130 $ 1,287 $ 2,004
------------- ----------- -----------
Total Noninterest Expenses $ 4,530 $ 3,403 $ 4,830
------------- ----------- -----------
Income before taxes $ 2,722 $ 2,080 $ 2,418
------------- ----------- -----------
Income taxes $ 972 $ 783 $ 848
------------- ----------- -----------
Net Income $ 1,750 $ 1,297 $ 1,570
============= =========== ===========
Basic earnings per share $ 0.34 $ 0.29 $ 0.31
============= =========== ===========
Fully diluted earnings per share $ 0.33 $ 0.29 $ 0.30
============= =========== ===========
Average basic shares 5,113,482 4,463,606 5,113,482
============= =========== ===========
Average fully diluted shares 5,324,185 4,512,999 5,283,917
============= =========== ===========
Six Months Ended June 30,
2008 2007
------------- -----------
(Unaudited) (Unaudited)
------------- -----------
Total Interest Income $ 27,176 $ 22,955
------------- -----------
Total interest expense $ 10,395 $ 11,359
------------- -----------
Net interest income before
provision $ 16,781 $ 11,596
Provision for loan losses $ 3,519 $ 1,460
------------- -----------
Net interest income $ 13,262 $ 10,136
------------- -----------
Total Noninterest Income $ 1,238 $ 565
------------- -----------
Salaries and employee benefits $ 5,227 $ 3,982
Other $ 4,133 $ 2,325
------------- -----------
Total Noninterest Expenses $ 9,360 $ 6,307
------------- -----------
Income before taxes $ 5,140 $ 4,394
------------- -----------
Income taxes $ 1,820 $ 1,590
------------- -----------
Net Income $ 3,320 $ 2,804
============= ===========
Basic earnings per share $ 0.65 $ 0.63
============= ===========
Fully diluted earnings per share $ 0.63 $ 0.61
============= ===========
Average basic shares 5,113,482 4,463,606
============= ===========
Average fully diluted shares 5,299,333 4,624,968
============= ===========
SERVISFIRST BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
ACTUAL ACTUAL ACTUAL
----------- ----------- -----------
6/30/2008 3/31/2008 6/30/2007
----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
----------- ----------- -----------
Cash and due from banks $ 27,049 $ 19,239 $ 20,274
Investment securities $ 91,772 $ 88,974 $ 50,193
Restricted equity securities $ 2,659 $ 2,659 $ 1,202
Federal funds sold and other
investments $ 72 $ 83,455 $ 95,518
Mortgage loans held for sale $ 3,869 $ 4,768 $ 3,159
Loans $ 836,520 $ 755,534 $ 527,476
Reserve for loan losses $ (9,438) $ (8,852) $ (6,825)
Net loans $ 827,082 $ 746,682 $ 520,651
Foreclosed real estate $ 8,202 $ 3,443 $ 371
Other assets $ 12,405 $ 10,995 $ 10,557
Total Assets $ 973,110 $ 960,215 $ 701,925
=========== =========== ===========
Noninterest-bearing $ 97,066 $ 88,613 $ 90,631
Interest bearing $ 750,360 $ 774,158 $ 554,277
Total deposits $ 847,426 $ 862,771 $ 644,908
----------- ----------- -----------
Borrowings $ 46,622 $ 20,275 $ -
Interest payable $ 1,336 $ 900 $ 705
Other liabilities $ 2,855 $ 1,626 $ 1,799
----------- ----------- -----------
Total liabilities $ 898,239 $ 885,572 $ 647,412
----------- ----------- -----------
Stockholders' equity $ 74,871 $ 74,643 $ 54,513
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 973,110 $ 960,215 $ 701,925
=========== =========== ===========
SERVISFIRST BANCSHARES, INC.
KEY RATIOS
(Unaudited)
----------------------------------------------------------------------
Three months ended Three months
June 30, ended March 31,
2008 2007 2008
---------- --------- ----------------
Return on average assets 0.74% 0.80% 0.72%
Return on average equity 9.31% 9.51% 8.58%
Net interest margin 3.84% 3.82% 3.81%
Efficiency ratio 48.25% 54.02% 55.96%
Six months ended
June 30,
2008 2007
---------- ---------
Return on average assets 0.73% 0.87%
Return on average equity 8.95% 10.34%
Net interest margin 3.77% 3.94%
Net charge offs annualized to
average loans 0.48% 0.02%
Efficiency ratio 51.94% 51.86%
6/30/2008 6/30/2007 3/31/2008
---------- --------- ----------------
Book value per share $14.65 $12.39 $ 14.27
Tangible book value per share $14.65 $12.39 $ 14.27
% of reserve for loan losses to
total loans 1.13% 1.29% 1.17%
Nonperforming assets to total
loans plus foreclosed real
estate 1.57% 0.54% 0.82%
Source: ServisFirst Bancshares, Inc.
Released July 21, 2008