SERVISFIRST BANCSHARES, INC.

Announces Earnings for Fourth Quarter and Year Ended

December 31, 2013

 

Birmingham, Ala. – (PR Newswire) – January 28, 2014 – ServisFirst Bancshares, Inc. today announced earnings for the fourth quarter and the year ended December 31, 2013.

 

2013 and Fourth Quarter Highlights:

 

§Net income increased 21.2% year over year and 38.8% for the fourth quarter of 2013 compared to the same quarter in 2012. Net income for the fourth quarter of 2013 increased 10.3% over the third quarter of 2013.
§Diluted earnings per share increased 14.0% year over year and 28.5% for the fourth quarter of 2013 compared to the same quarter in 2012. Diluted earnings per share for the fourth quarter of 2013 increased 8.2% over the third quarter of 2013.
§Deposits increased 20.2% year over year.
§Loans increased 21.0% year over year.

 

“We are pleased with our growth in loans, deposits and earnings in 2013,” said Tom Broughton, President and CEO. “Our business model continues to attract new bankers that enable us to achieve these results.”

 

ABOUT SERVISFIRST:

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, Mobile, Montgomery 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 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; 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. 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 “Cautionary Note Regarding Forward-looking Statements” and “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, Inc. 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 
   December 31,   September 30, 
   2013   2012   2013 
Total interest income  $33,725   $29,055   $32,499 
Total interest expense   3,610    3,624    3,534 
Net interest income before provision for loan losses   30,115    25,431    28,965 
Provision for loan losses   2,356    2,449    3,034 
Net interest income after provision for loan losses   27,759    22,982    25,931 
Total noninterest income   2,371    2,586    2,269 
                
Salaries and employee benefits   6,541    6,477    7,048 
Other noninterest expense   5,757    6,426    5,019 
Total noninterest expense   12,298    12,903    12,067 
Income before taxes   17,832    12,665    16,133 
Income taxes   5,964    4,108    5,321 
Net income   11,868    8,557    10,812 
Preferred stock dividends   100    100    100 
Net income available to common stockholders  $11,768   $8,457   $10,712 
                
Basic earnings per common share  $1.64   $1.40   $1.53 
Diluted earnings per common share  $1.58   $1.23   $1.46 
Average basic common shares   7,159,382    6,052,570    7,019,069 
Average diluted common shares   7,453,117    6,971,752    7,321,911 
                
                
    Year Ended December 31,         
    2013    2012      
Total interest income  $126,081   $109,023      
Total interest expense   13,619    14,901      
Net interest income before provision for loan losses   112,462    94,122      
Provision for loan losses   13,008    9,100      
Net interest income after provision for loan losses   99,454    85,022      
Total noninterest income   10,010    9,643      
                
Salaries and employee benefits   26,324    22,587      
Other noninterest expense   21,165    20,513      
Total noninterest expense   47,489    43,100      
Income before taxes   61,975    51,565      
Income taxes   20,358    17,120      
Net income   41,617    34,445      
Preferred stock dividends   400    400      
Net income available to common stockholders  $41,217   $34,045      
                
Basic earnings per common share  $6.00   $5.68      
Diluted earnings per common share  $5.69   $4.99      
Average basic common shares   6,869,071    5,996,437      
Average diluted common shares   7,268,675    6,941,752      

  

 
 

 

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

   December 31, 2013   December 31, 2012   September 30, 2013 
ASSETS               
Cash and due from banks  $249,781   $177,454   $257,490 
Investment securities   298,494    259,844    289,515 
Restricted equity securities   3,738    3,941    3,738 
Federal funds sold and other investments   8,634    3,291    7,923 
Mortgage loans held for sale   8,134    25,826    11,592 
                
Loans   2,858,868    2,363,182    2,731,973 
Reserve for loan losses   (30,663)   (26,258)   (28,927)
Net loans   2,828,205    2,336,924    2,703,046 
Other real estate owned   12,672    9,685    14,258 
Bank owned life insurance contracts   69,008    57,014    68,460 
Other assets   40,751    32,335    40,131 
Total assets  $3,519,417   $2,906,314   $3,396,153 
                
LIABILITIES AND STOCKHOLDERS' EQUITY               
Liabilities:               
Noninterest-bearing  $650,456   $545,174   $635,153 
Interest-bearing   2,369,186    1,966,398    2,284,064 
Total deposits   3,019,642    2,511,572    2,919,217 
Federal funds purchased   174,380    117,065    170,090 
Borrowings   19,940    34,967    19,932 
Interest payable   769    942    4,553 
Other liabilities   7,494    8,511    6,061 
Total liabilities   3,222,225    2,673,057    3,119,853 
                
Stockholders' equity   297,192    233,257    276,300 
Total liabilities and stockholders' equity  $3,519,417   $2,906,314   $3,396,153 

 

 
 

 

SERVISFIRST BANCSHARES, INC.

Key Ratios

 

   Three Months Ended  
   December 31,   September 30, 
   2013   2012   2013 
Return on average assets   1.35%   1.18%   1.29%
Return on average common equity   16.26%   14.67%   15.75%
Net interest margin (fully taxable-equivalent)   3.67%   3.75%   3.71%
Efficiency ratio   37.86%   46.05%   38.63%
                
                
    Year Ended December 31,         
    2013    2012      
Return on average assets   1.31%   1.30%     
Return on average common equity   15.55%   15.81%     
Net interest margin (fully taxable-equivalent)   3.80%   3.80%     
Efficiency ratio   38.78%   41.54%     
                
                
    December 31,    September 30,         
    2013    2012    2013 
Book value per common share  $35.00   $30.84   $33.40 
Tangible book value per common share  $35.00   $30.84   $33.40 
% of reserve for loan losses to total loans   1.07%   1.11%   1.06%
Nonperforming assets to total loans               
plus foreclosed real estate   0.79%   0.85%   0.86%
Nonperforming assets to total assets   0.64%   0.69%   0.70%