Exhibit 99.1
ServisFirst Bancshares, Inc. Announces Results for Third Quarter of 2021
BIRMINGHAM, Ala., Oct. 18, 2021 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended September 30, 2021.
Third Quarter 2021 Highlights:
Tom Broughton, Chairman, President and CEO, said, “The economic recovery in the Southeast United States is resulting in very strong loan growth for our bank. Our bankers are winning in the marketplace.”
Bud Foshee, CFO, said, “Credit losses continue at historically low levels and credit quality remains very good. Operating efficiency is also very good.”
| FINANCIAL SUMMARY (UNAUDITED) | |||||||||||||||||||||
| (in Thousands except share and per share amounts) | |||||||||||||||||||||
| Period Ending September 30, 2021 | Period Ending June 30, 2021 | % Change From Period Ending June 30, 2021 to Period Ending September 30, 2021 | Period Ending September 30, 2020 | % Change From Period Ending September 30, 2020 to Period Ending September 30, 2021 | |||||||||||||||||
| QUARTERLY OPERATING RESULTS | |||||||||||||||||||||
| Net Income | $ | 52,499 | $ | 50,027 | 5 | % | $ | 43,362 | 21 | % | |||||||||||
| Net Income Available to Common Stockholders | $ | 52,499 | $ | 49,996 | 5 | % | $ | 43,362 | 21 | % | |||||||||||
| Diluted Earnings Per Share | $ | 0.96 | $ | 0.92 | 4 | % | $ | 0.80 | 20 | % | |||||||||||
| Return on Average Assets | 1.50 | % | 1.56 | % | 1.54 | % | |||||||||||||||
| Return on Average Common Stockholders' Equity | 18.93 | % | 18.98 | % | 18.43 | % | |||||||||||||||
| Average Diluted Shares Outstanding | 54,477,740 | 54,460,230 | 54,232,965 | ||||||||||||||||||
| YEAR-TO-DATE OPERATING RESULTS | |||||||||||||||||||||
| Net Income | $ | 153,981 | $ | 118,588 | 30 | % | |||||||||||||||
| Net Income Available to Common Stockholders | $ | 153,950 | $ | 118,557 | 30 | % | |||||||||||||||
| Diluted Earnings Per Share | $ | 2.83 | $ | 2.19 | 29 | % | |||||||||||||||
| Return on Average Assets | 1.63 | % | 1.54 | % | |||||||||||||||||
| Return on Average Common Stockholders' Equity | 19.73 | % | 17.73 | % | |||||||||||||||||
| Average Diluted Shares Outstanding | 54,440,004 | 54,198,422 | |||||||||||||||||||
| BALANCE SHEET | |||||||||||||||||||||
| Total Assets | $ | 14,602,228 | $ | 13,207,319 | 11 | % | $ | 11,394,874 | 28 | % | |||||||||||
| Loans | 8,812,811 | 8,649,694 | 2 | % | 8,508,554 | 4 | % | ||||||||||||||
| Non-interest-bearing Demand Deposits | 4,366,654 | 3,296,429 | 32 | % | 2,762,814 | 58 | % | ||||||||||||||
| Total Deposits | 12,078,670 | 10,958,236 | 10 | % | 9,673,783 | 25 | % | ||||||||||||||
| Stockholders' Equity | 1,114,293 | 1,073,284 | 4 | % | 949,589 | 17 | % | ||||||||||||||
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $52.5 million for the quarter ended September 30, 2021, compared to net income and net income available to common stockholders of $43.4 million for the same quarter in 2020. Basic and diluted earnings per common share were $0.97 and $0.96, respectively, for the third quarter of 2021, compared to $0.80 for the third quarter of 2020.
Annualized return on average assets was 1.50% and annualized return on average common stockholders’ equity was 18.93% for the third quarter of 2021, compared to 1.54% and 18.43%, respectively, for the third quarter of 2020.
Net interest income was $96.3 million for the third quarter of 2021, compared to $94.7 million for the second quarter of 2021 and $85.1 million for the third quarter of 2020. The net interest margin in the third quarter of 2021 was 2.85% compared to 3.06% in the second quarter of 2021 and 3.14% in the third quarter of 2020. Accretion of net fees on PPP loans of $5.2 million during the third quarter of 2021 contributed 24 basis points of the loan yield, compared to $8.0 million of PPP loan fee accretion during the second quarter of 2021, or 37 basis points of the loan yield and $4.0 million during the third quarter of 2020, or 19 basis points of the loan yield.
Average loans for the third quarter of 2021 were $8.68 billion, an increase of $35.2 million, or 1.6% annualized, over average loans of $8.64 billion for the second quarter of 2021, and an increase of $315.0 million, or 3.8%, over average loans of $8.37 billion for the third quarter of 2020. Forgiveness of PPP loans during the third quarter of 2021 totaled $207.4 million. PPP loans outstanding as of September 30, 2021 were $387.7 million.
Average total deposits for the third quarter of 2021 were $11.49 billion, an increase of $757.1 million, or 28.0%, annualized, over average total deposits of $10.73 billion for the second quarter of 2021, and an increase of $2.02 billion, or 21.3%, over average total deposits of $9.47 billion for the third quarter of 2020.
Non-performing assets to total assets were 0.11% for the third quarter of 2021, a decrease of 4 basis points compared to 0.15% for the second quarter of 2021 and a decrease of 18 basis points compared to 0.29% for the third quarter of 2020. Annualized net charge-offs to average loans were 0.08% for the third quarter of 2021, compared to -0.01% and 0.54% for the second quarter of 2021 and third quarter of 2020, respectively. The allowance for credit losses for the quarters ending September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020 were calculated under the CECL methodology and as a percentage of total loans were 1.24%, 1.21%, 1.12%, and 1.04%, respectively. Other quarter-end periods presented for the allowance for loan losses were not restated for CECL adoption and were calculated under the incurred loss methodology. The allowance for loan losses as a percentage of total loans was 1.09% at September 30, 2020. Excluding PPP loans, for all periods discussed, the allowance for credit losses as a percentage of total loans under the CECL methodology at September 30, 2021 and June 30, 2021 was 1.29% and 1.30%, respectively, compared to 1.24% at September 30, 2020, under the incurred loss model. We recorded a $6.0 million provision for credit losses in the third quarter of 2021 compared to $9.7 million in the second quarter of 2021 and $12.3 million in the third quarter of 2020.
Non-interest income for the third quarter of 2021 decreased $146,000, or 1.8%, to $8.0 million from $8.2 million in the third quarter of 2020. Mortgage banking revenue decreased $1.1 million, or 43.5%, to $1.4 million from the third quarter of 2020 to the third quarter of 2021. The number of mortgage loans originated during the third quarter of 2021 fell to 208, from 325 during the same quarter in 2020. Net credit card revenue increased $203,000, or 11.0%, to $2.0 million during the third quarter of 2021, compared to $1.8 million during the third quarter of 2020. The number of credit card accounts increased approximately 31% and the aggregate amount of spend on all credit card accounts increased 43% during the third quarter of 2021 compared to the third quarter of 2020. Increase in cash surrender value of life insurance decreased $62,000, or 3.6%, during the third quarter of 2021 compared the third quarter of 2020, due to decreases in crediting rates on policies. Other income for the third quarter of 2021 increased $900,000, or 343.5%, to $1.2 million from $262,000 in the third quarter of 2020. We wrote down the value of our interest rate cap by $98,000 during the third quarter of 2021 through other income compared to a write down of $343,000 during the third quarter of 2020. Merchant service revenue increased from $163,000 during the third quarter of 2020 to $375,000, or 30.1%, during the third quarter of 2021.
Non-interest expense for the third quarter of 2021 increased $7.8 million, or 29.4%, to $34.4 million from $26.6 million in the third quarter of 2020, and increased $3.1 million, or 9.8%, on a linked quarter basis. Salary and benefit expense for the third quarter of 2021 increased $3.0 million, or 20.0%, to $18.0 million from $15.0 million in the third quarter of 2020, and increased $1.1 million, or 6.6%, on a linked quarter basis. Salary expense alone increased 7.6% year over year. We increased our annual incentive accrual based on the increased loan production in 2021 and on final anticipated payouts for 2021 PPP loan originations. Total incentive accruals increased $2.2 million to $4.9 million for the third quarter of 2021 compared the same quarter in 2020. The number of FTE employees increased by 24 to 518 at September 30, 2021 compared to 494 at September 30, 2020, and decreased by 9 from the end of the second quarter of 2021. Equipment and occupancy expense increased $440,000, or 17.2%, to $3.0 million in the third quarter of 2021, from $2.6 million in the third quarter of 2020, and increased $152,000, or 5.3% on a linked-quarter basis. We moved our office in Nashville, Tennessee in early 2021 to expand our space and improve visibility and we opened our new office in Orlando, Florida in the third quarter of 2021. Third party processing and other services expense increased $863,000, or 26.3%, to $4.1 million in the third quarter of 2021, from $3.3 million in the third quarter of 2020 and increased $198,000, or 5.0%, on a linked-quarter basis. We increased the number of correspondent banks for which we are processing transactions through the Federal Reserve Bank. FDIC and other regulatory assessments increased $569,000 to $1.6 million in the third quarter of 2021, from $1.1 million in the third quarter of 2020, and increased $205,000, or 14.4%, on a linked quarter basis. Growth in total assets has increased our assessments. ServisFirst Bank was reclassified as a large financial institution by the FDIC as of September 30, 2021. Expenses associated with other real estate owned increased $4,000, to $123,000 in the third quarter of 2021, from $119,000 in the third quarter of 2020, and decreased $417,000 on a linked quarter basis. The third quarter of 2021 included a write-down in value of a property in our Atlanta region. The linked-quarter decrease was due to the write-down of one property in our Nashville region during the second quarter of 2021. Other operating expenses for the third quarter of 2021 increased $2.9 million, or 81.3%, to $6.5 million from $3.6 million in the third quarter of 2020, and increased $2.0 million on a linked-quarter basis. We invested in new market tax credits in July 2021 and wrote down the investments by $2.8 million during the third quarter of 2021 with a charge to other operating expenses. We decreased our reserve for credit losses on unfunded loan commitments by $300,000 in the third quarter of 2021. The efficiency ratio was 32.95% during the third quarter of 2021 compared to 28.50% during the third quarter of 2020 and compared to 30.03% during the second quarter of 2021.
Income tax expense increased $472,000, or 4.3%, to $11.5 million in the third quarter of 2021, compared to $11.0 million in the third quarter of 2020. Our effective tax rate was 17.98% for the third quarter of 2021 compared to 20.29% for the third quarter of 2020. We recognized $3.2 million in credits during the third quarter of 2021 related to the investment in new market tax credits in July 2021. 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 third quarters of 2021 and 2020 of $78,000 and $180,000, respectively.
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including 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 and core deposit intangibles associated with our acquisition of Metro Bancshares, Inc. in January 2015. We also include total loans adjusted for the impact of PPP loan activities. 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 September 30, 2021 | At June 30, 2021 | At March 31, 2021 | At December 31, 2020 | At September 30, 2020 | |||||||||||||||||
| Book value per share - GAAP | $ | 20.56 | $ | 19.80 | $ | 19.03 | $ | 18.41 | $ | 17.61 | |||||||||||
| Total common stockholders' equity - GAAP | 1,114,293 | 1,073,284 | 1,030,485 | 992,852 | 949,589 | ||||||||||||||||
| Adjustments: | |||||||||||||||||||||
| Adjusted for goodwill and core deposit intangible asset | 13,705 | 13,773 | 13,841 | 13,908 | 13,976 | ||||||||||||||||
| Tangible common stockholders' equity - non-GAAP | $ | 1,100,588 | $ | 1,059,511 | $ | 1,016,644 | $ | 978,944 | $ | 935,613 | |||||||||||
| Tangible book value per share - non-GAAP | $ | 20.30 | $ | 19.55 | $ | 18.78 | $ | 18.15 | $ | 17.35 | |||||||||||
| Stockholders' equity to total assets - GAAP | 7.63 | % | 8.13 | % | 8.15 | % | 8.32 | % | 8.33 | % | |||||||||||
| Total assets - GAAP | $ | 14,602,228 | $ | 13,207,319 | $ | 12,647,374 | $ | 11,932,654 | $ | 11,394,874 | |||||||||||
| Adjustments: | |||||||||||||||||||||
| Adjusted for goodwill and core deposit intangible asset | 13,705 | 13,773 | 13,841 | 13,908 | 13,976 | ||||||||||||||||
| Total tangible assets - non-GAAP | $ | 14,588,523 | $ | 13,193,546 | $ | 12,633,533 | $ | 11,918,746 | $ | 11,380,898 | |||||||||||
| Tangible common equity to total tangible assets - non-GAAP | 7.54 | % | 8.03 | % | 8.05 | % | 8.21 | % | 8.22 | % | |||||||||||
| Total loans - GAAP | $ | 8,812,811 | $ | 8,649,694 | $ | 8,504,980 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||
| Adjusted to exclude PPP loans | 387,725 | 595,017 | 967,641 | ||||||||||||||||||
| Loans, excluding PPP loans - non-GAAP | $ | 8,425,086 | $ | 8,054,677 | $ | 7,537,339 | |||||||||||||||
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, Mobile, Montgomery and Dothan, Alabama, Northwest Florida, West Central Florida, Nashville, Tennessee, Atlanta, Georgia, and Charleston, South Carolina.
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 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, but not limited to: the global health and economic crisis precipitated by the COVID-19 outbreak; 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; economic crisis and associated credit issues in industries most impacted by the COVID-19 outbreak, including but not limited to, the restaurant, hospitality and retail sectors; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic stimulus initiatives and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; 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, in our Quarterly Reports on Form 10-Q for fiscal year 2021, 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
Davis Mange (205) 949-3420
dmange@servisfirstbank.com
| SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||
| (In thousands except share and per share data) | |||||||||||||||||||||
| 3rd Quarter 2021 | 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | |||||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||||
| Interest income | $ | 104,236 | $ | 102,719 | $ | 100,396 | $ | 101,065 | $ | 96,110 | |||||||||||
| Interest expense | 7,916 | 8,051 | 8,031 | 8,984 | 11,028 | ||||||||||||||||
| Net interest income | 96,320 | 94,668 | 92,365 | 92,081 | 85,082 | ||||||||||||||||
| Provision for credit losses | 5,963 | 9,652 | 7,451 | 6,283 | 12,284 | ||||||||||||||||
| Net interest income after provision for credit losses | 90,357 | 85,016 | 84,914 | 85,798 | 72,798 | ||||||||||||||||
| Non-interest income | 8,026 | 9,598 | 8,463 | 8,237 | 8,172 | ||||||||||||||||
| Non-interest expense | 34,377 | 31,309 | 28,914 | 28,202 | 26,573 | ||||||||||||||||
| Income before income tax | 64,006 | 63,305 | 64,463 | 65,833 | 54,397 | ||||||||||||||||
| Provision for income tax | 11,507 | 13,278 | 13,008 | 14,852 | 11,035 | ||||||||||||||||
| Net income | 52,499 | 50,027 | 51,455 | 50,981 | 43,362 | ||||||||||||||||
| Preferred stock dividends | - | 31 | - | 32 | - | ||||||||||||||||
| Net income available to common stockholders | $ | 52,499 | $ | 49,996 | $ | 51,455 | $ | 50,949 | $ | 43,362 | |||||||||||
| Earnings per share - basic | $ | 0.97 | $ | 0.92 | $ | 0.95 | $ | 0.94 | $ | 0.80 | |||||||||||
| Earnings per share - diluted | $ | 0.96 | $ | 0.92 | $ | 0.95 | $ | 0.94 | $ | 0.80 | |||||||||||
| Average diluted shares outstanding | 54,477,740 | 54,381,991 | 54,273,944 | 54,232,965 | 54,194,506 | ||||||||||||||||
| CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||||||||
| Total assets | $ | 14,602,228 | $ | 13,207,319 | $ | 12,647,374 | $ | 11,932,654 | $ | 11,394,874 | |||||||||||
| Loans | 8,812,811 | 8,649,694 | 8,504,980 | 8,465,688 | 8,508,544 | ||||||||||||||||
| Debt securities | 984,600 | 1,013,783 | 962,129 | 886,938 | 913,299 | ||||||||||||||||
| Non-interest-bearing demand deposits | 4,366,654 | 3,296,429 | 3,044,611 | 2,788,772 | 2,762,814 | ||||||||||||||||
| Total deposits | 12,078,670 | 10,958,236 | 10,577,610 | 9,975,724 | 9,673,783 | ||||||||||||||||
| Borrowings | 64,701 | 64,696 | 64,691 | 64,748 | 64,719 | ||||||||||||||||
| Stockholders' equity | $ | 1,114,293 | $ | 1,073,284 | $ | 1,030,485 | $ | 992,852 | $ | 949,589 | |||||||||||
| Shares outstanding | 54,207,147 | 54,201,204 | 54,137,650 | 53,943,751 | 53,915,245 | ||||||||||||||||
| Book value per share | $ | 20.56 | $ | 19.80 | $ | 19.03 | $ | 18.41 | $ | 17.61 | |||||||||||
| Tangible book value per share (1) | $ | 20.30 | $ | 19.55 | $ | 18.78 | $ | 18.15 | $ | 17.35 | |||||||||||
| SELECTED FINANCIAL RATIOS (Annualized) | |||||||||||||||||||||
| Net interest margin | 2.85 | % | 3.06 | % | 3.20 | % | 3.27 | % | 3.14 | % | |||||||||||
| Return on average assets | 1.50 | % | 1.56 | % | 1.72 | % | 1.74 | % | 1.54 | % | |||||||||||
| Return on average common stockholders' equity | 18.93 | % | 18.98 | % | 19.83 | % | 20.78 | % | 18.43 | % | |||||||||||
| Efficiency ratio | 32.95 | % | 30.03 | % | 28.68 | % | 28.11 | % | 28.50 | % | |||||||||||
| Non-interest expense to average earning assets | 1.01 | % | 1.01 | % | 1.00 | % | 1.00 | % | 0.98 | % | |||||||||||
| CAPITAL RATIOS (2) | |||||||||||||||||||||
| Common equity tier 1 capital to risk-weighted assets | 10.46 | % | 10.60 | % | 10.73 | % | 10.50 | % | 11.24 | % | |||||||||||
| Tier 1 capital to risk-weighted assets | 10.47 | % | 10.60 | % | 10.73 | % | 10.50 | % | 11.25 | % | |||||||||||
| Total capital to risk-weighted assets | 12.18 | % | 12.36 | % | 12.48 | % | 12.20 | % | 13.10 | % | |||||||||||
| Tier 1 capital to average assets | 7.80 | % | 8.10 | % | 8.25 | % | 8.23 | % | 8.22 | % | |||||||||||
| Tangible common equity to total tangible assets (1) | 7.54 | % | 8.03 | % | 8.05 | % | 8.22 | % | 8.22 | % | |||||||||||
| (1) See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for a discussion of these Non-GAAP financial measures. | |||||||||||||||||||||
| (2) Regulatory capital ratios for most recent period are preliminary. | |||||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| September 30, 2021 | September 30, 2020 | % Change | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 102,313 | $ | 70,472 | 45 | % | ||||||
| Interest-bearing balances due from depository institutions | 4,297,473 | 1,551,597 | 177 | % | ||||||||
| Federal funds sold | 44,700 | 1,302 | 3,333 | % | ||||||||
| Cash and cash equivalents | 4,444,486 | 1,623,371 | 174 | % | ||||||||
| Available for sale debt securities, at fair value | 723,324 | 913,049 | (21 | )% | ||||||||
| Held to maturity debt securities (fair value of $261,276 at September 30, 2021 and $250 at September 30, 2020) | 261,276 | 250 | 104,410 | % | ||||||||
| Mortgage loans held for sale | 578 | 21,472 | (97 | )% | ||||||||
| Loans | 8,812,811 | 8,508,554 | 4 | % | ||||||||
| Less allowance for credit losses | (108,950 | ) | (92,440 | ) | 18 | % | ||||||
| Loans, net | 8,703,861 | 8,416,114 | 3 | % | ||||||||
| Premises and equipment, net | 60,953 | 55,273 | 10 | % | ||||||||
| Goodwill and other identifiable intangible assets | 13,705 | 13,976 | (2 | )% | ||||||||
| Other assets | 394,045 | 351,369 | 12 | % | ||||||||
| Total assets | $ | 14,602,228 | $ | 11,394,874 | 28 | % | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest-bearing | $ | 4,366,654 | $ | 2,762,814 | 58 | % | ||||||
| Interest-bearing | 7,712,016 | 6,910,969 | 12 | % | ||||||||
| Total deposits | 12,078,670 | 9,673,783 | 25 | % | ||||||||
| Federal funds purchased | 1,286,756 | 669,350 | 92 | % | ||||||||
| Other borrowings | 64,701 | 64,719 | - | % | ||||||||
| Other liabilities | 57,808 | 37,433 | 54 | % | ||||||||
| Total liabilities | 13,487,935 | 10,445,285 | 29 | % | ||||||||
| Stockholders' equity: | ||||||||||||
| Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at | ||||||||||||
| September 30, 2021 and September 30, 2020 | - | - | ||||||||||
| Common stock, par value $0.001 per share; 100,000,000 shares authorized; 54,207,147 shares | ||||||||||||
| issued and outstanding at September 30, 2021, and 53,915,245 shares issued and outstanding | ||||||||||||
| at September 30, 2020 | 54 | 54 | - | % | ||||||||
| Additional paid-in capital | 225,648 | 223,280 | 1 | % | ||||||||
| Retained earnings | 869,731 | 706,924 | 23 | % | ||||||||
| Accumulated other comprehensive income | 18,360 | 18,831 | (3 | )% | ||||||||
| Total stockholders' equity attributable to ServisFirst Bancshares, Inc. | 1,113,793 | 949,089 | 17 | % | ||||||||
| Noncontrolling interest | 500 | 500 | - | % | ||||||||
| Total stockholders' equity | 1,114,293 | 949,589 | 17 | % | ||||||||
| Total liabilities and stockholders' equity | $ | 14,602,228 | $ | 11,394,874 | 28 | % | ||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||
| (In thousands except per share data) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||
| Interest income: | ||||||||||||||
| Interest and fees on loans | $ | 96,119 | $ | 89,564 | $ | 285,373 | $ | 268,332 | ||||||
| Taxable securities | 6,544 | 5,858 | 18,666 | 16,104 | ||||||||||
| Nontaxable securities | 62 | 166 | 255 | 610 | ||||||||||
| Federal funds sold | 4 | 16 | 11 | 327 | ||||||||||
| Other interest and dividends | 1,507 | 506 | 3,046 | 2,584 | ||||||||||
| Total interest income | 104,236 | 96,110 | 307,351 | 287,957 | ||||||||||
| Interest expense: | ||||||||||||||
| Deposits | 6,581 | 9,876 | 20,298 | 37,377 | ||||||||||
| Borrowed funds | 1,335 | 1,152 | 3,700 | 4,624 | ||||||||||
| Total interest expense | 7,916 | 11,028 | 23,998 | 42,001 | ||||||||||
| Net interest income | 96,320 | 85,082 | 283,353 | 245,956 | ||||||||||
| Provision for credit losses | 5,963 | 12,284 | 23,066 | 36,151 | ||||||||||
| Net interest income after provision for credit losses | 90,357 | 72,798 | 260,287 | 209,805 | ||||||||||
| Non-interest income: | ||||||||||||||
| Service charges on deposit accounts | 1,727 | 1,818 | 5,542 | 5,557 | ||||||||||
| Mortgage banking | 1,423 | 2,519 | 6,869 | 5,697 | ||||||||||
| Credit card income | 2,043 | 1,840 | 5,147 | 5,003 | ||||||||||
| Securities gains | - | - | 620 | - | ||||||||||
| Increase in cash surrender value life insurance | 1,671 | 1,733 | 5,012 | 4,650 | ||||||||||
| Other operating income | 1,162 | 262 | 2,897 | 972 | ||||||||||
| Total non-interest income | 8,026 | 8,172 | 26,087 | 21,879 | ||||||||||
| Non-interest expense: | ||||||||||||||
| Salaries and employee benefits | 17,995 | 14,994 | 50,425 | 46,444 | ||||||||||
| Equipment and occupancy expense | 2,996 | 2,556 | 8,494 | 7,390 | ||||||||||
| Third party processing and other services | 4,144 | 3,281 | 11,506 | 10,360 | ||||||||||
| Professional services | 948 | 955 | 2,978 | 2,994 | ||||||||||
| FDIC and other regulatory assessments | 1,630 | 1,061 | 4,637 | 2,988 | ||||||||||
| Other real estate owned expense | 123 | 119 | 820 | 2,023 | ||||||||||
| Other operating expense | 6,541 | 3,607 | 15,740 | 11,110 | ||||||||||
| Total non-interest expense | 34,377 | 26,573 | 94,600 | 83,309 | ||||||||||
| Income before income tax | 64,006 | 54,397 | 191,774 | 148,375 | ||||||||||
| Provision for income tax | 11,507 | 11,035 | 37,793 | 29,787 | ||||||||||
| Net income | 52,499 | 43,362 | 153,981 | 118,588 | ||||||||||
| Dividends on preferred stock | - | - | 31 | 31 | ||||||||||
| Net income available to common stockholders | $ | 52,499 | $ | 43,362 | $ | 153,950 | $ | 118,557 | ||||||
| Basic earnings per common share | $ | 0.97 | $ | 0.80 | $ | 2.84 | $ | 2.20 | ||||||
| Diluted earnings per common share | $ | 0.96 | $ | 0.80 | $ | 2.83 | $ | 2.19 | ||||||
| LOANS BY TYPE (UNAUDITED) | |||||||||||||||
| (In thousands) | |||||||||||||||
| 3rd Quarter 2021 | 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | |||||||||||
| Commercial, financial and agricultural | $ | 2,927,845 | $ | 3,105,243 | $ | 3,323,093 | $ | 3,295,900 | $ | 3,466,189 | |||||
| Real estate - construction | 887,938 | 782,305 | 666,592 | 593,614 | 530,919 | ||||||||||
| Real estate - mortgage: | |||||||||||||||
| Owner-occupied commercial | 1,809,840 | 1,726,888 | 1,698,695 | 1,693,428 | 1,725,222 | ||||||||||
| 1-4 family mortgage | 765,102 | 707,546 | 685,840 | 711,692 | 671,841 | ||||||||||
| Other mortgage | 2,357,812 | 2,262,231 | 2,068,560 | 2,106,184 | 2,056,549 | ||||||||||
| Subtotal: Real estate - mortgage | 4,932,754 | 4,696,665 | 4,453,095 | 4,511,304 | 4,453,612 | ||||||||||
| Consumer | 64,274 | 65,481 | 62,200 | 64,870 | 57,834 | ||||||||||
| Total loans | $ | 8,812,811 | $ | 8,649,694 | $ | 8,504,980 | $ | 8,465,688 | $ | 8,508,554 | |||||
| SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| 3rd Quarter 2021 | 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | ||||||||||||||||
| Allowance for credit losses: | ||||||||||||||||||||
| Beginning balance | $ | 104,670 | $ | 94,906 | $ | 87,942 | $ | 92,440 | $ | 91,507 | ||||||||||
| Impact of Adoption of ASC 326 | - | - | - | (2,000 | ) | - | ||||||||||||||
| Loans charged off: | ||||||||||||||||||||
| Commercial financial and agricultural | 1,541 | 150 | 477 | 8,792 | 11,146 | |||||||||||||||
| Real estate - construction | - | - | - | 202 | - | |||||||||||||||
| Real estate - mortgage | 208 | 59 | 12 | - | 200 | |||||||||||||||
| Consumer | 86 | 54 | 87 | 38 | 44 | |||||||||||||||
| Total charge offs | 1,835 | 263 | 576 | 9,032 | 11,390 | |||||||||||||||
| Recoveries: | ||||||||||||||||||||
| Commercial financial and agricultural | 140 | 298 | 26 | 94 | 12 | |||||||||||||||
| Real estate - construction | - | 2 | 50 | 30 | - | |||||||||||||||
| Real estate - mortgage | 4 | 62 | 2 | 114 | 12 | |||||||||||||||
| Consumer | 8 | 13 | 11 | 13 | 15 | |||||||||||||||
| Total recoveries | 152 | 375 | 89 | 251 | 39 | |||||||||||||||
| Net charge-offs | 1,683 | (112 | ) | 487 | 8,781 | 11,351 | ||||||||||||||
| Provision for credit losses | 5,963 | 9,652 | 7,451 | 6,283 | 12,284 | |||||||||||||||
| Ending balance | $ | 108,950 | $ | 104,670 | $ | 94,906 | $ | 87,942 | $ | 92,440 | ||||||||||
| Allowance for credit losses to total loans | 1.24 | % | 1.21 | % | 1.12 | % | 1.04 | % | - | |||||||||||
| Allowance for credit losses to total average loans | 1.26 | % | 1.21 | % | 1.11 | % | 1.04 | % | - | |||||||||||
| Allowance for loan losses to total loans | - | - | - | - | 1.09 | % | ||||||||||||||
| Allowance for loan losses to total average loans | - | - | - | - | 1.11 | % | ||||||||||||||
| Net charge-offs (recoveries) to total average loans | 0.08 | % | (0.01 | )% | 0.02 | % | 0.41 | % | 0.54 | % | ||||||||||
| Provision for credit losses to total average loans | 0.27 | % | 0.45 | % | 0.35 | % | 0.30 | % | - | |||||||||||
| Provision for loan losses to total average loans | - | - | - | - | 0.58 | % | ||||||||||||||
| Nonperforming assets: | ||||||||||||||||||||
| Nonaccrual loans | $ | 9,145 | $ | 12,301 | $ | 13,088 | $ | 13,973 | $ | 21,675 | ||||||||||
| Loans 90+ days past due and accruing | 5,326 | 4,888 | 4,804 | 4,981 | 4,898 | |||||||||||||||
| Other real estate owned and repossessed assets | 2,068 | 2,039 | 2,067 | 6,497 | 6,976 | |||||||||||||||
| Total | $ | 16,539 | $ | 19,228 | $ | 19,959 | $ | 25,451 | $ | 33,549 | ||||||||||
| Nonperforming loans to total loans | 0.16 | % | 0.20 | % | 0.21 | % | 0.22 | % | 0.31 | % | ||||||||||
| Nonperforming assets to total assets | 0.11 | % | 0.15 | % | 0.16 | % | 0.21 | % | 0.29 | % | ||||||||||
| Nonperforming assets to earning assets | 0.11 | % | 0.15 | % | 0.16 | % | 0.22 | % | 0.30 | % | ||||||||||
| Allowance for credit losses to nonaccrual loans | 1,191.36 | % | 850.91 | % | 725.14 | % | 629.37 | % | - | |||||||||||
| Allowance for loan losses to nonaccrual loans | - | - | - | - | 426.48 | % | ||||||||||||||
| Restructured accruing loans | $ | 437 | $ | 441 | $ | 794 | $ | 818 | $ | 1,800 | ||||||||||
| Restructured accruing loans to total loans | - | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | ||||||||||
| TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED) | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| 3rd Quarter 2021 | 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | ||||||||||||||||
| Beginning balance: | $ | 2,918 | $ | 3,542 | $ | 1,433 | $ | 2,738 | $ | 1,568 | ||||||||||
| Additions | - | - | 2,146 | - | 1,182 | |||||||||||||||
| Net (paydowns) / advances | (25 | ) | (624 | ) | (37 | ) | (619 | ) | (12 | ) | ||||||||||
| Charge-offs | - | - | - | (535 | ) | - | ||||||||||||||
| Transfer to OREO | - | - | - | (151 | ) | - | ||||||||||||||
| Ending balance | $ | 2,893 | $ | 2,918 | $ | 3,542 | $ | 1,433 | $ | 2,738 | ||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||
| (In thousands except per share data) | ||||||||||||||||
| 3rd Quarter 2021 | 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | ||||||||||||
| Interest income: | ||||||||||||||||
| Interest and fees on loans | $ | 96,119 | $ | 95,451 | $ | 93,803 | $ | 94,332 | $ | 89,564 | ||||||
| Taxable securities | 6,544 | 6,315 | 5,807 | 6,018 | 5,858 | |||||||||||
| Nontaxable securities | 62 | 86 | 107 | 129 | 166 | |||||||||||
| Federal funds sold | 4 | 4 | 3 | 5 | 16 | |||||||||||
| Other interest and dividends | 1,507 | 863 | 676 | 581 | 506 | |||||||||||
| Total interest income | 104,236 | 102,719 | 100,396 | 101,065 | 96,110 | |||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 6,581 | 6,836 | 6,881 | 7,853 | 9,876 | |||||||||||
| Borrowed funds | 1,335 | 1,215 | 1,150 | 1,131 | 1,152 | |||||||||||
| Total interest expense | 7,916 | 8,051 | 8,031 | 8,984 | 11,028 | |||||||||||
| Net interest income | 96,320 | 94,668 | 92,365 | 92,081 | 85,082 | |||||||||||
| Provision for credit losses | 5,963 | 9,652 | 7,451 | 6,283 | 12,284 | |||||||||||
| Net interest income after provision for credit losses | 90,357 | 85,016 | 84,914 | 85,798 | 72,798 | |||||||||||
| Non-interest income: | ||||||||||||||||
| Service charges on deposit accounts | 1,727 | 1,907 | 1,908 | 1,971 | 1,818 | |||||||||||
| Mortgage banking | 1,423 | 2,699 | 2,747 | 3,050 | 2,519 | |||||||||||
| Credit card income | 2,043 | 1,912 | 1,192 | 913 | 1,840 | |||||||||||
| Securities gains | - | 620 | - | - | - | |||||||||||
| Increase in cash surrender value life insurance | 1,671 | 1,683 | 1,658 | 1,660 | 1,733 | |||||||||||
| Other operating income | 1,162 | 777 | 958 | 643 | 262 | |||||||||||
| Total non-interest income | 8,026 | 9,598 | 8,463 | 8,237 | 8,172 | |||||||||||
| Non-interest expense: | ||||||||||||||||
| Salaries and employee benefits | 17,995 | 16,887 | 15,543 | 14,970 | 14,994 | |||||||||||
| Equipment and occupancy expense | 2,996 | 2,844 | 2,654 | 2,680 | 2,556 | |||||||||||
| Third party processing and other services | 4,144 | 3,946 | 3,416 | 3,418 | 3,281 | |||||||||||
| Professional services | 948 | 1,107 | 923 | 1,248 | 955 | |||||||||||
| FDIC and other regulatory assessments | 1,630 | 1,425 | 1,582 | 1,366 | 1,061 | |||||||||||
| Other real estate owned expense | 123 | 540 | 157 | 140 | 119 | |||||||||||
| Other operating expense | 6,541 | 4,560 | 4,639 | 4,380 | 3,607 | |||||||||||
| Total non-interest expense | 34,377 | 31,309 | 28,914 | 28,202 | 26,573 | |||||||||||
| Income before income tax | 64,006 | 63,305 | 64,463 | 65,833 | 54,397 | |||||||||||
| Provision for income tax | 11,507 | 13,278 | 13,008 | 14,852 | 11,035 | |||||||||||
| Net income | 52,499 | 50,027 | 51,455 | 50,981 | 43,362 | |||||||||||
| Dividends on preferred stock | - | 31 | - | 32 | - | |||||||||||
| Net income available to common stockholders | $ | 52,499 | $ | 49,996 | $ | 51,455 | $ | 50,949 | $ | 43,362 | ||||||
| Basic earnings per common share | $ | 0.97 | $ | 0.92 | $ | 0.95 | $ | 0.94 | $ | 0.80 | ||||||
| Diluted earnings per common share | $ | 0.96 | $ | 0.92 | $ | 0.95 | $ | 0.94 | $ | 0.80 | ||||||
| AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) | |||||||||||||||||||||||||||||||||||
| ON A FULLY TAXABLE-EQUIVALENT BASIS | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| 3rd Quarter 2021 | 2nd Quarter 2021 | 1st Quarter 2021 | 4th Quarter 2020 | 3rd Quarter 2020 | |||||||||||||||||||||||||||||||
| 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 | $ | 8,653,632 | 4.40 | % | $ | 8,618,139 | 4.43 | % | $ | 8,484,914 | 4.47 | % | $ | 8,435,237 | 4.43 | % | $ | 8,335,087 | 4.26 | % | |||||||||||||||
| Tax-exempt (2) | 26,542 | 4.05 | 26,854 | 4.05 | 27,592 | 4.17 | 29,393 | 4.16 | 30,068 | 4.14 | |||||||||||||||||||||||||
| Total loans, net of | |||||||||||||||||||||||||||||||||||
| unearned income | 8,680,174 | 4.39 | 8,644,993 | 4.43 | 8,512,506 | 4.47 | 8,464,630 | 4.43 | 8,365,155 | 4.26 | |||||||||||||||||||||||||
| Mortgage loans held for sale | 7,050 | 1.69 | 11,470 | 1.92 | 13,601 | 1.94 | 19,459 | 1.37 | 20,053 | 1.41 | |||||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||||||||||||||
| Taxable | 969,715 | 2.70 | 936,863 | 2.70 | 878,118 | 2.65 | 862,333 | 2.79 | 820,526 | 2.86 | |||||||||||||||||||||||||
| Tax-exempt (2) | 12,382 | 2.39 | 16,872 | 2.47 | 21,084 | 2.43 | 25,542 | 2.52 | 31,880 | 2.51 | |||||||||||||||||||||||||
| Total securities (3) | 982,097 | 2.70 | 953,735 | 2.69 | 899,202 | 2.64 | 887,875 | 2.78 | 852,406 | 2.84 | |||||||||||||||||||||||||
| Federal funds sold | 8,551 | 0.19 | 8,224 | 0.20 | 11,935 | 0.10 | 16,306 | 0.12 | 41,884 | 0.15 | |||||||||||||||||||||||||
| Interest-bearing balances with banks | 3,761,652 | 0.16 | 2,790,524 | 0.12 | 2,262,233 | 0.12 | 1,837,249 | 0.13 | 1,500,563 | 0.13 | |||||||||||||||||||||||||
| Total interest-earning assets | $ | 13,439,524 | 3.08 | % | $ | 12,408,946 | 3.32 | % | $ | 11,699,477 | 3.48 | % | $ | 11,225,519 | 3.58 | % | $ | 10,780,061 | 3.55 | % | |||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||||||||||||||||
| Cash and due from banks | 90,034 | 85,478 | 71,166 | 91,258 | 75,065 | ||||||||||||||||||||||||||||||
| Net premises and equipment | 62,845 | 61,240 | 57,198 | 56,315 | 56,799 | ||||||||||||||||||||||||||||||
| Allowance for credit losses, accrued | |||||||||||||||||||||||||||||||||||
| interest and other assets | 315,178 | 320,729 | 320,407 | 308,746 | 281,196 | ||||||||||||||||||||||||||||||
| Total assets | $ | 13,907,581 | $ | 12,876,393 | $ | 12,148,248 | $ | 11,681,838 | $ | 11,193,121 | |||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
| Checking | $ | 1,431,420 | 0.19 | % | $ | 1,350,098 | 0.19 | % | $ | 1,294,614 | 0.19 | % | $ | 1,197,908 | 0.23 | % | $ | 1,077,595 | 0.31 | % | |||||||||||||||
| Savings | 122,579 | 0.17 | 104,283 | 0.18 | 93,375 | 0.18 | 86,259 | 0.18 | 82,671 | 0.36 | |||||||||||||||||||||||||
| Money market | 5,328,291 | 0.26 | 5,321,338 | 0.26 | 5,057,828 | 0.27 | 4,933,285 | 0.31 | 4,739,566 | 0.44 | |||||||||||||||||||||||||
| Time deposits | 806,108 | 1.15 | 801,928 | 1.33 | 808,561 | 1.44 | 810,675 | 1.59 | 841,378 | 1.78 | |||||||||||||||||||||||||
| Total interest-bearing deposits | 7,688,398 | 0.34 | 7,577,647 | 0.36 | 7,254,378 | 0.38 | 7,028,127 | 0.44 | 6,741,210 | 0.58 | |||||||||||||||||||||||||
| Federal funds purchased | 1,205,327 | 0.21 | 970,708 | 0.22 | 849,772 | 0.22 | 752,765 | 0.22 | 682,971 | 0.22 | |||||||||||||||||||||||||
| Other borrowings | 64,694 | 4.23 | 64,694 | 4.28 | 64,689 | 4.33 | 64,701 | 4.41 | 64,717 | 4.78 | |||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 8,958,419 | 0.35 | % | $ | 8,613,049 | 0.37 | % | $ | 8,168,839 | 0.40 | % | $ | 7,845,593 | 0.46 | % | $ | 7,488,898 | 0.59 | % | |||||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Non-interest-bearing | |||||||||||||||||||||||||||||||||||
| demand deposits | 3,800,972 | 3,154,605 | 2,923,041 | 2,812,254 | 2,728,513 | ||||||||||||||||||||||||||||||
| Other liabilities | 26,891 | 52,027 | 39,442 | 48,642 | 39,537 | ||||||||||||||||||||||||||||||
| Stockholders' equity | 1,100,156 | 1,038,012 | 996,741 | 956,847 | 917,626 | ||||||||||||||||||||||||||||||
| Accumulated other comprehensive | |||||||||||||||||||||||||||||||||||
| income | 21,143 | 18,700 | 20,185 | 18,502 | 18,547 | ||||||||||||||||||||||||||||||
| Total liabilities and | |||||||||||||||||||||||||||||||||||
| stockholders' equity | $ | 13,907,581 | $ | 12,876,393 | $ | 12,148,248 | $ | 11,681,838 | $ | 11,193,121 | |||||||||||||||||||||||||
| Net interest spread | 2.73 | % | 2.95 | % | 3.08 | % | 3.12 | % | 2.96 | % | |||||||||||||||||||||||||
| Net interest margin | 2.85 | % | 3.06 | % | 3.20 | % | 3.27 | % | 3.14 | % | |||||||||||||||||||||||||
| (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 21%. | |||||||||||||||||||||||||||||||||
| (3 | ) | Unrealized losses on available-for-sale debt securities are excluded from the yield calculation. | |||||||||||||||||||||||||||||||||