ServisFirst Bancshares(US:SFBS)2025-03-03 21:08Financial Performance - Net income available to common stockholders increased by 9.9% to $227.2 million in 2024 from $206.8 million in 2023[256] - Return on average assets improved to 1.39% in 2024 from 1.37% in 2023[259] - Return on average stockholders' equity decreased slightly to 14.98% in 2024 from 15.13% in 2023[259] - Stockholders' equity grew by $176.4 million to $1.62 billion in 2024, driven by net income of $227.2 million[315] Loan and Deposit Growth - Average loans rose by 4.7% to $12.15 billion in 2024, with an increase of $548.0 million[258] - Average deposits increased by 7.7% to $13.20 billion in 2024, reflecting a growth of $940.0 million[258] - Total loans outstanding reached $12,605,836 thousand, an increase from $11,658,829 thousand in 2023[299] - Commitments to extend credit increased to $3.55 billion in 2024 from $3.41 billion in 2023, reflecting a 4.2% rise[319] Interest Income and Margin - Net interest income grew by 8.7% to $446.7 million in 2024, driven by an increase in both the average balance and rate on interest-earning assets[258] - Net interest margin increased by one basis point to 2.82% in 2024[258] - Total interest-earning assets generated $946.1 million in interest income in 2024, compared to $813.4 million in 2023[274] - The increase in net interest income was primarily driven by a $88.8 million increase in interest earned from loans[273] Noninterest Income and Expenses - Noninterest income increased by 15.3% to $35.1 million in 2024, primarily due to higher mortgage banking income and bank-owned life insurance income[258] - Noninterest expense rose by 1.7% to $181.1 million in 2024, mainly due to higher salaries and third-party processing expenses[258] - Total noninterest expenses rose by $3.1 million, or 1.7%, to $181.1 million for the year ended December 31, 2024, primarily due to a 19.0% increase in salaries and employee benefits[282] Credit Losses and Nonperforming Loans - Provision for credit losses increased by 15.3% to $21.6 million in 2024 from $18.7 million in 2023[257] - Nonaccrual loans increased to $39,501 thousand, representing 0.31% of total loans, up from 0.17% in 2023[300] - Total nonperforming assets rose to $45.0 million in 2024, up 99% from $22.5 million in 2023[308] - The ratio of nonperforming loans to total loans increased to 0.34% in 2024 from 0.18% in 2023[308] Asset and Liability Management - Total assets increased by $1.22 billion, or 7.6%, to $17.35 billion as of December 31, 2024, with total loans rising by $947.0 million, or 8.1%[286] - The Bank's liquidity position included $2.73 billion in liquid assets as of December 31, 2024[329] - The interest rate sensitivity gap is monitored, with a requirement that net interest margins will not change more than 10% if interest rates change by 100 basis points[344] - The asset liability committee conducts quarterly analyses of rate sensitivity, reporting findings to the Board of Directors[351] Investment Portfolio - The investment portfolio's amortized cost totaled $1.92 billion at December 31, 2024, down from $1.95 billion at December 31, 2023[290] - The total amount of securities available for sale was $1.21 billion, with U.S. Treasury Securities comprising $617.35 million[291] - The company’s mortgage-backed securities had a weighted average yield of 2.25% for total securities available for sale[291] - The investment policy aims to balance market and credit risks while ensuring liquidity to meet loan demand[293] Economic Outlook - The company expects a more favorable economic outlook, including lower unemployment rates and projected GDP growth compared to 2023[300] - The Federal Reserve increased its targeted federal funds rate by 525 basis points, ending 2024 at 5.40%[347]