ServisFirst Bancshares(US:SFBS)2024-11-06 21:47Financial Performance - Diluted earnings per common share for Q3 2024 were $1.10, a 12.2% increase from Q3 2023[121] - Net income for the quarter ended September 30, 2024, was $59.9 million, an increase from $53.3 million in the same quarter of 2023, primarily due to higher net interest income[169] - Basic and diluted earnings per common share for the quarter were both $1.10, compared to $0.98 in the corresponding period of 2023[170] - Net income for the nine months ended September 30, 2024, was $162.1 million, a decrease from $164.8 million in the same period of 2023, attributed to increased non-interest expenses and provision for income taxes[169] Loans and Deposits - Average loans for Q3 2024 were $12.37 billion, an increase of $803.6 million, or 7.0%, from Q3 2023[121] - Total loans outstanding as of September 30, 2024, were $12.34 billion, an increase from $11.64 billion at December 31, 2023, representing a growth of 5.9%[141] - Total loans were $12.34 billion as of September 30, 2024, an increase of $679.4 million, or 5.8%, from December 31, 2023[136] - Average deposits for Q3 2024 were $13.52 billion, an increase of $840 million, or 6.6%, from Q3 2023[121] - Total deposits as of September 30, 2024, were $13.15 billion, a decrease of $127 million, or 1.0%, from $13.27 billion at December 31, 2023[147] Interest Income and Margin - Net interest income for Q3 2024 was $115.1 million, an increase of $15.4 million, or 15.5%, from Q3 2023[121] - Taxable-equivalent net interest income increased by $15.4 million, or 15.5%, to $115.1 million for the three months ended September 30, 2024, compared to $99.7 million for the same period in 2023[172] - The yield on loans for the three months ended September 30, 2024, was 6.62%, compared to 6.13% for the same period in 2023[172] - Net interest margin for the three months ended September 30, 2024, was 2.84%, compared to 2.64% for the same period in 2023[176] Credit Quality - The allowance for credit losses is believed adequate to absorb all expected future losses over the contractual life of the loans in the portfolio[137] - Net charge-offs for the period were $2.77 million, down from $4.31 million in the previous year, indicating a decrease of 35.5%[144] - Total nonperforming loans increased to $39.17 million, up 81.9% from $21.53 million at December 31, 2023[144] - The provision for credit losses on loans was $5.44 million, compared to $4.28 million in the previous year, representing an increase of 27.1%[144] Capital and Assets - Total assets as of September 30, 2024, were $16.45 billion, an increase of $319.5 million, or 2.0%, from December 31, 2023[123] - Total stockholders' equity attributable to the company was $1.57 billion, representing 9.55% of total assets as of September 30, 2024, up from 8.93% at the end of 2023[155] - The company is categorized as well-capitalized under FDIC guidelines, meeting all required capital ratios as of September 30, 2024[156] Noninterest Income and Expenses - Noninterest income totaled $8.5 million for the three months ended September 30, 2024, an increase of $414,000, or 5.1%, compared to the same period in 2023[186] - Noninterest expense totaled $45.6 million for the three months ended September 30, 2024, an increase of $4.0 million, or 9.5%, compared to the same period in 2023[187] - Salaries and employee benefits increased $5.0 million, or 24.8%, to $25.1 million for the three months ended September 30, 2024, compared to $20.1 million for the same period in 2023[188] Regulatory and Accounting Policies - The Alabama Banking Department regulates the Bank's dividend payments, which are subject to statutory and regulatory limitations[160] - The company's accounting policies conform to U.S. GAAP, with significant impacts from the allowance for credit losses and income taxes[192] - There were no changes to the accounting policies for the allowance for credit losses or income taxes during the three and nine months ended September 30, 2024[192] Employee Metrics - The number of FTE employees increased by 52, or 9.2%, to 620 at September 30, 2024, compared to 568 at September 30, 2023[188]