BIRMINGHAM, Ala., Jan. 22, 2019 (GLOBE NEWSWIRE) — ServisFirst Bancshares, Inc. (NASDAQ: SFBS), today announced earnings and operating results for the quarter and year ended December 31, 2018.
Fourth Quarter 2018 Highlights:
- Assets exceed $8 billion at year end 2018
- Diluted EPS increased 47% from $1.72 to $2.53 year over year
- Deposits increased 25% on an annualized basis for the quarter and 14% year over year
- Increased dividend to $0.15 per share, a 36% increase
- Loans increased 12% year over year
Tom Broughton, President and CEO, said, “Our strong organic growth continues for the 13th year, with assets now exceeding $8 billion.” Bud Foshee, CFO, added, “Our strong organic growth continued in the fourth quarter as a result of our bank’s focus on developing new and existing relationships.”
FINANCIAL SUMMARY (UNAUDITED) | |||||||||||||||||||
(in Thousands except share and per share amounts) | |||||||||||||||||||
Period Ending December 31, 2018 |
Period Ending September 30, 2018 |
% Change From Period Ending September 30, 2018 to Period Ending December 31, 2018 |
Period Ending December 31, 2017 |
% Change From Period Ending December 31, 2017 to Period Ending December 31, 2018 |
|||||||||||||||
QUARTERLY OPERATING RESULTS | |||||||||||||||||||
Net Income | $ | 36,237 | $ | 34,560 | 5 | % | $ | 21,150 | 71 | % | |||||||||
Net Income Available to Common Stockholders | $ | 36,205 | $ | 34,560 | 5 | % | $ | 21,119 | 71 | % | |||||||||
Diluted Earnings Per Share | $ | 0.67 | $ | 0.64 | 5 | % | $ | 0.39 | 72 | % | |||||||||
Return on Average Assets | 1.85 | % | 1.87 | % | 1.20 | % | |||||||||||||
Return on Average Common Stockholders’ Equity | 21.13 | % | 20.42 | % | 13.97 | % | |||||||||||||
Average Diluted Shares Outstanding | 54,109,450 | 54,191,222 | 54,161,788 | ||||||||||||||||
Net Income – adjusted for non-routine expenses * | $ | 36,237 | $ | 24,424 | 48 | % | |||||||||||||
Net Income Available to Common Stockholders – adjusted for | |||||||||||||||||||
non-routine expenses* | $ | 36,205 | $ | 24,393 | 48 | % | |||||||||||||
Diluted Earnings Per Share – adjusted for non-routine expenses * | $ | 0.67 | $ | 0.45 | 49 | % | |||||||||||||
Return on Average Assets – adjusted for non-routine expenses * | 1.85 | % | 1.39 | % | |||||||||||||||
Return on Average Common Stockholders’ Equity – adjusted for | |||||||||||||||||||
non-routine expenses* | 21.13 | % | 16.13 | % | |||||||||||||||
YEAR-TO-DATE OPERATING RESULTS | |||||||||||||||||||
Net Income | $ | 136,940 | $ | 93,092 | 47 | % | |||||||||||||
Net Income Available to Common Stockholders | $ | 136,877 | $ | 93,030 | 47 | % | |||||||||||||
Diluted Earnings Per Share | $ | 2.53 | $ | 1.72 | 47 | % | |||||||||||||
Return on Average Assets | 1.88 | % | 1.43 | % | |||||||||||||||
Return on Average Common Stockholders’ Equity | 20.95 | % | 16.37 | % | |||||||||||||||
Average Diluted Shares Outstanding | 54,169,879 | 54,123,957 | |||||||||||||||||
Net Income – adjusted for non-routine expenses * | $ | 136,940 | $ | 96,366 | 42 | % | |||||||||||||
Net Income Available to Common Stockholders – adjusted for | |||||||||||||||||||
non-routine expenses* | $ | 136,877 | $ | 96,304 | 42 | % | |||||||||||||
Diluted Earnings Per Share – adjusted for non-routine expenses * | $ | 2.53 | $ | 1.78 | 42 | % | |||||||||||||
Return on Average Assets – adjusted for non-routine expenses * | 1.88 | % | 1.48 | % | |||||||||||||||
Return on Average Common Stockholders’ Equity – adjusted for | |||||||||||||||||||
non-routine expenses* | 20.95 | % | 16.95 | % | |||||||||||||||
BALANCE SHEET | |||||||||||||||||||
Total Assets | $ | 8,007,382 | $ | 7,517,833 | 7 | % | $ | 7,082,384 | 13 | % | |||||||||
Loans | 6,533,499 | 6,363,531 | 3 | % | 5,851,261 | 12 | % | ||||||||||||
Non-interest-bearing Demand Deposits | 1,557,341 | 1,504,447 | 4 | % | 1,440,326 | 8 | % | ||||||||||||
Total Deposits | 6,915,708 | 6,505,351 | 6 | % | 6,091,674 | 14 | % | ||||||||||||
Stockholders’ Equity | 715,203 | 681,510 | 5 | % | 607,604 | 18 | % | ||||||||||||
* Non-routine expenses during the comparative periods presented in this press release as more fully described in “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below. | |||||||||||||||||||
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $36.2 million for the quarter ended December 31, 2018, compared to net income of $21.2 million and net income available to common stockholders of $21.1 million for the same quarter in 2017. Basic and diluted earnings per common share were $0.68 and $0.67, respectively, for the fourth quarter of 2018, compared to $0.40 and $0.39, respectively, for the fourth quarter of 2017.
Return on average assets was 1.85% and return on average common stockholders’ equity was 21.13 for the fourth quarter of 2018, compared to 1.20% and 13.97%, respectively, for the fourth quarter of 2017.
Net interest income was $68.9 million for the fourth quarter of 2018, compared to $66.9 million for the third quarter of 2018 and $61.4 million for the fourth quarter of 2017. The net interest margin in the fourth quarter of 2018 was 3.63% compared to 3.77% in the third quarter of 2018 and 3.66% in the fourth quarter of 2017. Loans of $16.7 million were added to nonaccrual status during the fourth quarter of 2018 resulting in the reversal of $390,000 in interest income. Linked quarter increases in average rates paid on deposits in excess of increased average yields on loans drove unfavorable mix change, while increases in average balances in loans, non-interest bearing deposits and equity drove favorable volume change and overall change.
Average loans for the fourth quarter of 2018 were $6.43 billion, an increase of $199.4 million, or 3%, over average loans of $6.23 billion for the third quarter of 2018, and an increase of $715.6 million, or 13%, over average loans of $5.72 billion for the fourth quarter of 2017.
Average total deposits for the fourth quarter of 2018 were $6.74 billion, an increase of $403.5 million, or 6%, over average total deposits of $6.33 billion for the third quarter of 2018, and an increase of $702.4 million, or 12%, over average total deposits of $6.03 billion for the fourth quarter of 2017.
Non-performing assets to total assets were 0.41% for the fourth quarter of 2018, an increase of 14 basis points compared to 0.27% for the third quarter of 2018 and an increase of 16 basis points compared to 0.25% for the fourth quarter of 2017. $10.4 million of the previously mentioned $16.7 million of loans added to nonaccrual status were classified as accruing TDRs at September 30, 2018. Net credit charge-offs to average loans were 0.30%, a five basis point increase compared to 0.25% for the third quarter of 2018 and a decrease of 26 basis points compared to 0.56% for the fourth quarter of 2017. Year-to-date net credit charge-offs to average loans were 0.20%, a nine basis point decrease compared to 0.29% for the same period in 2017. We recorded a $6.5 million provision for loan losses in the fourth quarter of 2018 compared to $6.6 million in the third quarter of 2018 and $9.1 million in the fourth quarter of 2017. The allowance for loan loss as a percentage of total loans was 1.05% at December 31, 2018 compared to 1.05% at September 30, 2018 and 1.02% at December 31, 2017. In management’s opinion, the allowance is adequate and was determined by consistent application of ServisFirst Bank’s methodology for calculating its allowance for loan losses.
Non-interest income increased $712,000 during the fourth quarter of 2018, or 15%, compared to the fourth quarter of 2017. Deposit service charges increased $215,000 in the fourth quarter of 2018, or 14%, compared to the fourth quarter of 2017. The number of transaction deposit accounts increased approximately 8% from December 31, 2017 to December 31, 2018, and the amount of overdraft fees increased $175,000, or 24%, from the fourth quarter of 2017 to the fourth quarter of 2018. Mortgage banking revenue decreased $206,000, or 23%, from the fourth quarter of 2017 to the fourth quarter of 2018. Increases in market rates have slowed originations and refinancing activity during 2018. Credit card revenue increased $695,000, or 54%, to $2.0 million during the fourth quarter of 2018, compared to $1.3 million during the fourth quarter of 2017, driven by increased numbers of accounts and increased purchases per account.
Non-interest expense for the fourth quarter of 2018 increased $2.0 million, or 9%, to $23.3 million from $21.3 million in the fourth quarter of 2017, and increased $149,000, or 1%, on a linked quarter basis. Salary and benefit expense for the fourth quarter of 2018 increased $953,000, or 8%, to $12.4 million from $11.4 million in the fourth quarter of 2017, and decreased $685,000, or 5%, on a linked quarter basis. The linked-quarter decrease resulted from a $815,000 reversal of incentive bonuses in December 2018 that were accrued during the first eleven months of 2018. The number of FTE employees increased from 428 at December 31, 2017 to 468 at December 31, 2018, or 9%. Equipment and occupancy expense increased $597,000, or 38%, to $2.2 million in the fourth quarter of 2018, from $1.6 million in the fourth quarter of 2017, and decreased $30,000 on a linked-quarter basis. Other operating expense for the fourth quarter of 2018 increased $526,000, or 8%, to $6.8 million from $6.2 million in the fourth quarter of 2017, and increased $690,000, or 11%, on a linked-quarter basis. During the fourth quarter of 2018 we recognized a $250,000 charge related to a wire fraud. The efficiency ratio improved to 31.28% during the fourth quarter of 2018 from 32.05% during the fourth quarter of 2017 and from 31.95% on a linked quarter basis.
Income tax expense decreased $6.4 million, or 43%, to $8.4 million in the fourth quarter of 2018, compared to $14.9 million in the fourth quarter of 2017. We recognized $3.1 million of additional tax expense during the fourth quarter of 2017 as a result of revaluing our net deferred tax assets as of December 31, 2017 in connection with the Tax Cuts and Jobs Act passed into law in December 2017. Lower corporate income tax rates resulting from the passage of this law have resulted in lower effective tax rates starting in 2018. We also 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 fourth quarters of 2018 and 2017 of $1.5 million and $351,000, respectively.
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
We recorded $3.1 million of additional tax expense as a result of revaluing our net deferred tax assets at December 31, 2017 due to lower corporate income tax rates provided by the Tax Cuts and Jobs Act passed into law in December 2017. During the fourth quarter of 2017 we also recorded expenses of $347,000 related to terminating the lease agreement on our previous headquarters building in Birmingham, Alabama and expenses of moving into our new headquarters building. Financial measures included in this press release that are presented adjusted for these non-routine expenses are net income, net income available to common stockholders, diluted earnings per share, return on average assets and return on average common stockholders’ equity. Each of these five financial measures excludes the impact of the non-routine expenses attributable to our net deferred tax asset revaluation, lease termination and moving expenses, and are all considered non-GAAP financial measures. In addition to these financial measures adjusted for non-routine expenses, 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 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.
Three Months ended December 31, 2017 |
Year ended December 31, 2017 |
||||||||||||||||||||
Return on average assets – GAAP | 1.20 | % | 1.43 | % | |||||||||||||||||
Net income – GAAP | $ | 21,150 | $ | 93,092 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||
Revaluation of net deferred tax assets | 3,059 | 3,059 | |||||||||||||||||||
Lease termination and moving expenses | 347 | 347 | |||||||||||||||||||
Tax (benefit) of adjustments | (132 | ) | (132 | ) | |||||||||||||||||
Net income adjusted for non-routine expenses, net of tax | |||||||||||||||||||||
benefit – non-GAAP | $ | 24,424 | $ | 96,366 | |||||||||||||||||
Average assets | $ | 6,988,731 | $ | 6,495,067 | |||||||||||||||||
Return on average assets adjusted for non-routine | |||||||||||||||||||||
expenses – non-GAAP | 1.39 | % | 1.48 | % | |||||||||||||||||
Return on average common stockholders’ equity – GAAP | 13.97 | % | 16.37 | % | |||||||||||||||||
Net income available to common stockholders – GAAP | $ | 21,119 | $ | 93,030 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||
Revaluation of net deferred tax assets | 3,059 | 3,059 | |||||||||||||||||||
Lease termination and moving expenses | 347 | 347 | |||||||||||||||||||
Tax (benefit) of adjustments | (132 | ) | (132 | ) | |||||||||||||||||
Net income available to common stockholders – adjusted for | |||||||||||||||||||||
non-routine expenses – non-GAAP | $ | 24,393 | $ | 96,304 | |||||||||||||||||
Average common stockholders’ equity | $ | 599,947 | $ | 568,228 | |||||||||||||||||
Return on average common stockholders’ equity – adjusted | |||||||||||||||||||||
for non-routine expenses – non-GAAP | 16.13 | % | 16.95 | % | |||||||||||||||||
Diluted earnings per share | $ | 0.39 | $ | 1.72 | |||||||||||||||||
Weighted average shares outstanding, diluted – GAAP | 54,161,788 | 54,123,957 | |||||||||||||||||||
Diluted earnings per share – adjusted for non-routine | |||||||||||||||||||||
expenses – non-GAAP | $ | 0.45 | $ | 1.78 | |||||||||||||||||
At December 31, 2018 |
At September 30, 2018 |
At June 30, 2018 |
At March 31, 2018 |
At December 31, 2017 |
|||||||||||||||||
Book value per share – GAAP | $ | 13.40 | $ | 12.81 | $ | 12.33 | $ | 11.84 | $ | 11.47 | |||||||||||
Total common stockholders’ equity – GAAP | 715,203 | 681,510 | 655,114 | 629,297 | 607,604 | ||||||||||||||||
Adjustments: | |||||||||||||||||||||
Adjusted for goodwill and core deposit intangible asset | 14,449 | 14,517 | 14,584 | 14,652 | 14,719 | ||||||||||||||||
Tangible common stockholders’ equity – non-GAAP | $ | 700,754 | $ | 666,993 | $ | 640,530 | $ | 614,645 | $ | 592,885 | |||||||||||
Tangible book value per share – non-GAAP | $ | 13.13 | $ | 12.54 | $ | 12.05 | $ | 11.56 | $ | 11.19 | |||||||||||
Stockholders’ equity to total assets – GAAP | 8.93 | % | 9.07 | % | 9.25 | % | 8.98 | % | 8.58 | % | |||||||||||
Total assets – GAAP | $ | 8,007,382 | $ | 7,517,833 | $ | 7,084,562 | $ | 7,011,735 | $ | 7,082,384 | |||||||||||
Adjustments: | |||||||||||||||||||||
Adjusted for goodwill and core deposit intangible asset | 14,449 | 14,517 | 14,584 | 14,652 | 14,719 | ||||||||||||||||
Total tangible assets – non-GAAP | $ | 7,992,933 | $ | 7,503,316 | $ | 7,069,978 | $ | 6,997,083 | $ | 7,067,665 | |||||||||||
Tangible common equity to total tangible assets – non-GAAP | 8.77 | % | 8.89 | % | 9.06 | % | 8.78 | % | 8.39 | % | |||||||||||
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, Montgomery, Mobile and Dothan, Alabama, Pensacola and Tampa Bay, Florida, Atlanta, Georgia, Charleston, South Carolina 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
Davis Mange (205) 949-3420
dmange@servisfirstbank.com
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) | ||||||||||||||||||||
(In thousands except share and per share data) | ||||||||||||||||||||
4th Quarter 2018 | 3rd Quarter 2018 | 2nd Quarter 2018 | 1st Quarter 2018 | 4th Quarter 2017 | ||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||
Interest income | $ | 90,164 | $ | 84,058 | $ | 78,396 | $ | 74,009 | $ | 72,060 | ||||||||||
Interest expense | 21,306 | 17,195 | 13,874 | 11,573 | 10,652 | |||||||||||||||
Net interest income | 68,858 | 66,863 | 64,522 | 62,436 | 61,408 | |||||||||||||||
Provision for loan losses | 6,518 | 6,624 | 4,121 | 4,139 | 9,055 | |||||||||||||||
Net interest income after provision for loan losses | 62,340 | 60,239 | 60,401 | 58,297 | 52,353 | |||||||||||||||
Non-interest income | 5,617 | 5,591 | 5,459 | 4,869 | 4,905 | |||||||||||||||
Non-interest expense | 23,299 | 23,150 | 24,010 | 23,512 | 21,255 | |||||||||||||||
Income before income tax | 44,658 | 42,680 | 41,850 | 39,654 | 36,003 | |||||||||||||||
Provision for income tax | 8,421 | 8,120 | 8,310 | 7,051 | 14,853 | |||||||||||||||
Net income | 36,237 | 34,560 | 33,540 | 32,603 | 21,150 | |||||||||||||||
Preferred stock dividends | 32 | – | 31 | – | 31 | |||||||||||||||
Net income available to common stockholders | $ | 36,205 | $ | 34,560 | $ | 33,509 | $ | 32,603 | $ | 21,119 | ||||||||||
Earnings per share – basic | $ | 0.68 | $ | 0.65 | $ | 0.63 | $ | 0.61 | $ | 0.40 | ||||||||||
Earnings per share – diluted | $ | 0.67 | $ | 0.64 | $ | 0.62 | $ | 0.60 | $ | 0.39 | ||||||||||
Average diluted shares outstanding | 54,109,450 | 54,191,222 | 54,196,023 | 54,183,400 | 54,161,788 | |||||||||||||||
CONSOLIDATED BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 8,007,382 | $ | 7,517,833 | $ | 7,084,562 | $ | 7,011,735 | $ | 7,082,384 | ||||||||||
Loans | 6,533,499 | 6,363,531 | 6,129,649 | 5,928,327 | 5,851,261 | |||||||||||||||
Debt securities | 590,184 | 578,271 | 583,799 | 560,885 | 538,330 | |||||||||||||||
Non-interest-bearing demand deposits | 1,557,341 | 1,504,447 | 1,481,447 | 1,407,592 | 1,440,326 | |||||||||||||||
Total deposits | 6,915,708 | 6,505,351 | 6,085,682 | 5,977,387 | 6,091,674 | |||||||||||||||
Borrowings | 64,666 | 64,657 | 64,648 | 64,739 | 64,832 | |||||||||||||||
Stockholders’ equity | $ | 715,203 | $ | 681,510 | $ | 655,114 | $ | 629,297 | $ | 607,604 | ||||||||||
Shares outstanding | 53,375,195 | 53,197,807 | 53,150,733 | 53,147,169 | 52,992,586 | |||||||||||||||
Book value per share | $ | 13.40 | $ | 12.81 | $ | 12.33 | $ | 11.84 | $ | 11.47 | ||||||||||
Tangible book value per share (1) | $ | 13.13 | $ | 12.54 | $ | 12.05 | $ | 11.56 | $ | 11.19 | ||||||||||
SELECTED FINANCIAL RATIOS | ||||||||||||||||||||
Net interest margin | 3.63 | % | 3.77 | % | 3.82 | % | 3.81 | % | 3.66 | % | ||||||||||
Return on average assets | 1.85 | % | 1.87 | % | 1.91 | % | 1.91 | % | 1.20 | % | ||||||||||
Return on average common stockholders’ equity | 21.13 | % | 20.42 | % | 20.89 | % | 21.40 | % | 13.97 | % | ||||||||||
Efficiency ratio | 31.28 | % | 31.95 | % | 34.31 | % | 34.93 | % | 32.05 | % | ||||||||||
Non-interest expense to average earning assets | 1.23 | % | 1.30 | % | 1.42 | % | 1.43 | % | 1.26 | % | ||||||||||
CAPITAL RATIOS (2) | ||||||||||||||||||||
Common equity tier 1 capital to risk-weighted assets | 10.12 | % | 10.08 | % | 10.08 | % | 9.88 | % | 9.51 | % | ||||||||||
Tier 1 capital to risk-weighted assets | 10.13 | % | 10.09 | % | 10.08 | % | 9.88 | % | 9.52 | % | ||||||||||
Total capital to risk-weighted assets | 12.05 | % | 12.05 | % | 12.10 | % | 11.91 | % | 11.52 | % | ||||||||||
Tier 1 capital to average assets | 9.07 | % | 9.28 | % | 9.21 | % | 8.95 | % | 8.51 | % | ||||||||||
Tangible common equity to total tangible assets (1) | 8.77 | % | 8.89 | % | 9.06 | % | 8.78 | % | 8.39 | % | ||||||||||
(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) | |||||||||||||
December 31, 2018 | December 31, 2017 | ||||||||||||
% Change | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 206,434 | $ | 86,213 | 139 | % | |||||||
Interest-bearing balances due from depository institutions | 251,616 | 151,849 | 66 | % | |||||||||
Federal funds sold | 223,845 | 239,524 | (7 | ) | % | ||||||||
Cash and cash equivalents | 681,895 | 477,586 | 43 | % | |||||||||
Available for sale debt securities, at fair value | 590,184 | 538,080 | 10 | % | |||||||||
Held to maturity debt securities (fair value of $250 at December 31, 2017) | – | 250 | NM | ||||||||||
Restricted equity securities | 894 | 1,034 | (14 | ) | % | ||||||||
Mortgage loans held for sale | 120 | 4,459 | (97 | ) | % | ||||||||
Loans | 6,533,499 | 5,851,261 | 12 | % | |||||||||
Less allowance for loan losses | (68,600 | ) | (59,406 | ) | 15 | % | |||||||
Loans, net | 6,464,899 | 5,791,855 | 12 | % | |||||||||
Premises and equipment, net | 57,822 | 58,900 | (2 | ) | % | ||||||||
Goodwill and other identifiable intangible assets | 14,449 | 14,719 | (2 | ) | % | ||||||||
Other assets | 197,119 | 195,501 | 1 | % | |||||||||
Total assets | $ | 8,007,382 | $ | 7,082,384 | 13 | % | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Liabilities: | |||||||||||||
Deposits: | |||||||||||||
Non-interest-bearing | $ | 1,557,341 | $ | 1,440,326 | 8 | % | |||||||
Interest-bearing | 5,358,367 | 4,651,348 | 15 | % | |||||||||
Total deposits | 6,915,708 | 6,091,674 | 14 | % | |||||||||
Federal funds purchased | 288,725 | 301,797 | (4 | ) | % | ||||||||
Other borrowings | 64,666 | 64,832 | – | % | |||||||||
Other liabilities | 23,080 | 16,477 | 40 | % | |||||||||
Total liabilities | 7,292,179 | 6,474,780 | 13 | % | |||||||||
Stockholders’ equity: | |||||||||||||
Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at | |||||||||||||
December 31, 2018 and December 31, 2017 | – | – | – | % | |||||||||
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 53,375,195 shares | |||||||||||||
issued and outstanding at December 31, 2018, and 52,992,586 shares issued and outstanding | |||||||||||||
at December 31, 2017 | 53 | 53 | – | % | |||||||||
Additional paid-in capital | 218,521 | 217,693 | – | % | |||||||||
Retained earnings | 500,868 | 389,554 | 29 | % | |||||||||
Accumulated other comprehensive loss | (4,741 | ) | (198 | ) | N/M | ||||||||
Total stockholders’ equity attributable to ServisFirst Bancshares, Inc. | 714,701 | 607,102 | 18 | % | |||||||||
Noncontrolling interest | 502 | 502 | – | % | |||||||||
Total stockholders’ equity | 715,203 | 607,604 | 18 | % | |||||||||
Total liabilities and stockholders’ equity | $ | 8,007,382 | $ | 7,082,384 | 13 | % | |||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||
(In thousands except per share data) | ||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
Interest income: | ||||||||||||||
Interest and fees on loans | $ | 83,085 | $ | 67,357 | $ | 305,370 | $ | 246,682 | ||||||
Taxable securities | 3,506 | 2,468 | 12,654 | 9,117 | ||||||||||
Nontaxable securities | 544 | 702 | 2,406 | 2,948 | ||||||||||
Federal funds sold | 966 | 508 | 3,103 | 1,693 | ||||||||||
Other interest and dividends | 2,063 | 1,025 | 3,094 | 2,316 | ||||||||||
Total interest income | 90,164 | 72,060 | 326,627 | 262,756 | ||||||||||
Interest expense: | ||||||||||||||
Deposits | 18,957 | 8,954 | 55,502 | 28,831 | ||||||||||
Borrowed funds | 2,349 | 1,698 | 8,446 | 6,502 | ||||||||||
Total interest expense | 21,306 | 10,652 | 63,948 | 35,333 | ||||||||||
Net interest income | 68,858 | 61,408 | 262,679 | 227,423 | ||||||||||
Provision for loan losses | 6,518 | 9,055 | 21,402 | 23,225 | ||||||||||
Net interest income after provision for loan losses | 62,340 | 52,353 | 241,277 | 204,198 | ||||||||||
Non-interest income: | ||||||||||||||
Service charges on deposit accounts | 1,714 | 1,499 | 6,547 | 5,702 | ||||||||||
Mortgage banking | 688 | 894 | 2,784 | 3,835 | ||||||||||
Credit card income | 1,993 | 1,298 | 7,165 | 4,815 | ||||||||||
Securities gains | – | – | 190 | – | ||||||||||
Increase in cash surrender value life insurance | 780 | 797 | 3,130 | 3,131 | ||||||||||
Other operating income | 442 | 417 | 1,720 | 1,563 | ||||||||||
Total non-interest income | 5,617 | 4,905 | 21,536 | 19,046 | ||||||||||
Non-interest expense: | ||||||||||||||
Salaries and employee benefits | 12,385 | 11,432 | 51,849 | 47,604 | ||||||||||
Equipment and occupancy expense | 2,163 | 1,566 | 8,423 | 8,018 | ||||||||||
Professional services | 1,064 | 833 | 3,646 | 3,217 | ||||||||||
FDIC and other regulatory assessments | 902 | 1,030 | 3,869 | 3,918 | ||||||||||
Other real estate owned expense | 25 | 160 | 790 | 323 | ||||||||||
Other operating expense | 6,760 | 6,234 | 25,394 | 22,814 | ||||||||||
Total non-interest expense | 23,299 | 21,255 | 93,971 | 85,894 | ||||||||||
Income before income tax | 44,658 | 36,003 | 168,842 | 137,350 | ||||||||||
Provision for income tax | 8,421 | 14,853 | 31,902 | 44,258 | ||||||||||
Net income | 36,237 | 21,150 | 136,940 | 93,092 | ||||||||||
Dividends on preferred stock | 32 | 31 | 63 | 62 | ||||||||||
Net income available to common stockholders | $ | 36,205 | $ | 21,119 | $ | 136,877 | $ | 93,030 | ||||||
Basic earnings per common share | $ | 0.68 | $ | 0.40 | $ | 2.57 | $ | 1.76 | ||||||
Diluted earnings per common share | $ | 0.67 | $ | 0.39 | $ | 2.53 | $ | 1.72 |
LOANS BY TYPE (UNAUDITED) | ||||||||||||||||
(In thousands) | ||||||||||||||||
4th Quarter 2018 | 3rd Quarter 2018 | 2nd Quarter 2018 | 1st Quarter 2018 | 4th Quarter 2017 | ||||||||||||
Commercial, financial and agricultural | $ | 2,513,225 | $ | 2,478,788 | $ | 2,345,879 | $ | 2,329,904 | $ | 2,279,366 | ||||||
Real estate – construction | 533,192 | 543,611 | 522,788 | 506,050 | 580,874 | |||||||||||
Real estate – mortgage: | ||||||||||||||||
Owner-occupied commercial | 1,463,887 | 1,430,111 | 1,383,882 | 1,349,679 | 1,328,666 | |||||||||||
1-4 family mortgage | 621,634 | 610,460 | 584,133 | 581,498 | 603,063 | |||||||||||
Other mortgage | 1,337,068 | 1,236,954 | 1,225,906 | 1,099,482 | 997,079 | |||||||||||
Subtotal: Real estate – mortgage | 3,422,589 | 3,277,525 | 3,193,921 | 3,030,659 | 2,928,808 | |||||||||||
Consumer | 64,493 | 63,607 | 67,061 | 61,714 | 62,213 | |||||||||||
Total loans | $ | 6,533,499 | $ | 6,363,531 | $ | 6,129,649 | $ | 5,928,327 | $ | 5,851,261 |
SUMMARY OF LOAN LOSS EXPERIENCE (UNAUDITED) | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
4th Quarter 2018 | 3rd Quarter 2018 | 2nd Quarter 2018 | 1st Quarter 2018 | 4th Quarter 2017 | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 66,879 | $ | 64,239 | $ | 62,050 | $ | 59,406 | $ | 58,459 | ||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||
Commercial, financial and agricultural | 4,685 | 3,923 | 1,732 | 1,088 | 7,064 | |||||||||||||||||||||
Real estate – construction | – | – | – | – | – | |||||||||||||||||||||
Real estate – mortgage | 173 | 48 | 440 | 381 | 1,134 | |||||||||||||||||||||
Consumer | 72 | 76 | 47 | 88 | 137 | |||||||||||||||||||||
Total charge offs | 4,930 | 4,047 | 2,219 | 1,557 | 8,335 | |||||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||
Commercial, financial and agricultural | 120 | 52 | 173 | 4 | 64 | |||||||||||||||||||||
Real estate – construction | 4 | 4 | 97 | 7 | 126 | |||||||||||||||||||||
Real estate – mortgage | 1 | 1 | 2 | 42 | 26 | |||||||||||||||||||||
Consumer | 8 | 6 | 15 | 9 | 11 | |||||||||||||||||||||
Total recoveries | 133 | 63 | 287 | 62 | 227 | |||||||||||||||||||||
Net charge-offs | 4,797 | 3,984 | 1,932 | 1,495 | 8,108 | |||||||||||||||||||||
Provision for loan losses | 6,518 | 6,624 | 4,121 | 4,139 | 9,055 | |||||||||||||||||||||
Ending balance | $ | 68,600 | $ | 66,879 | $ | 64,239 | $ | 62,050 | $ | 59,406 | ||||||||||||||||
Allowance for loan losses to total loans | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % | 1.02 | % | ||||||||||||||||
Allowance for loan losses to total average | ||||||||||||||||||||||||||
loans | 1.07 | % | 1.07 | % | 1.07 | % | 1.05 | % | 1.04 | % | ||||||||||||||||
Net charge-offs to total average loans | 0.30 | % | 0.25 | % | 0.13 | % | 0.10 | % | 0.56 | % | ||||||||||||||||
Provision for loan losses to total average | ||||||||||||||||||||||||||
loans | 0.40 | % | 0.42 | % | 0.28 | % | 0.29 | % | 0.63 | % | ||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||||||||
Nonaccrual loans | $ | 21,926 | $ | 9,153 | $ | 8,022 | $ | 9,271 | $ | 10,765 | ||||||||||||||||
Loans 90+ days past due and accruing | 5,844 | 5,714 | 6,081 | 678 | 60 | |||||||||||||||||||||
Other real estate owned and | ||||||||||||||||||||||||||
repossessed assets | 5,169 | 5,714 | 5,937 | 5,748 | 6,701 | |||||||||||||||||||||
Total | $ | 32,939 | $ | 20,581 | $ | 20,040 | $ | 15,697 | $ | 17,526 | ||||||||||||||||
Nonperforming loans to total loans | 0.43 | % | 0.23 | % | 0.23 | % | 0.17 | % | 0.19 | % | ||||||||||||||||
Nonperforming assets to total assets | 0.41 | % | 0.27 | % | 0.28 | % | 0.22 | % | 0.25 | % | ||||||||||||||||
Nonperforming assets to earning assets | 0.43 | % | 0.28 | % | 0.29 | % | 0.23 | % | 0.25 | % | ||||||||||||||||
Reserve for loan losses to nonaccrual loans | 312.87 | % | 730.68 | % | 800.79 | % | 669.29 | % | 551.84 | % | ||||||||||||||||
Restructured accruing loans | $ | 3,073 | $ | 15,495 | $ | 15,572 | $ | 15,838 | $ | 16,919 | ||||||||||||||||
Restructured accruing loans to total loans | 0.04 | % | 0.24 | % | 0.25 | % | 0.27 | % | 0.29 | % | ||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED) | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
4th Quarter 2018 | 3rd Quarter 2018 | 2nd Quarter 2018 | 1st Quarter 2018 | 4th Quarter 2017 | ||||||||||||||||||||||
Beginning balance: | $ | 16,584 | $ | 17,257 | $ | 18,792 | $ | 20,572 | $ | 16,354 | ||||||||||||||||
Additions | – | 100 | – | – | 4,233 | |||||||||||||||||||||
Net (paydowns) / advances | (11 | ) | (177 | ) | (267 | ) | (1,080 | ) | (15 | ) | ||||||||||||||||
Charge-offs | (2,018 | ) | (596 | ) | (1,268 | ) | (700 | ) | – | |||||||||||||||||
$ | 14,555 | $ | 16,584 | $ | 17,257 | $ | 18,792 | $ | 20,572 |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||
(In thousands except per share data) | ||||||||||||||||||
4th Quarter 2018 | 3rd Quarter 2018 | 2nd Quarter 2018 | 1st Quarter 2018 | 4th Quarter 2017 | ||||||||||||||
Interest income: | ||||||||||||||||||
Interest and fees on loans | $ | 83,085 | $ | 78,991 | $ | 73,620 | $ | 69,674 | $ | 67,357 | ||||||||
Taxable securities | 3,506 | 3,276 | 3,127 | 2,745 | 2,468 | |||||||||||||
Nontaxable securities | 544 | 583 | 623 | 656 | 702 | |||||||||||||
Federal funds sold | 966 | 892 | 694 | 551 | 508 | |||||||||||||
Other interest and dividends | 2,063 | 316 | 332 | 383 | 1,025 | |||||||||||||
Total interest income | 90,164 | 84,058 | 78,396 | 74,009 | 72,060 | |||||||||||||
Interest expense: | ||||||||||||||||||
Deposits | 18,957 | 15,210 | 11,714 | 9,621 | 8,954 | |||||||||||||
Borrowed funds | 2,349 | 1,985 | 2,160 | 1,952 | 1,698 | |||||||||||||
Total interest expense | 21,306 | 17,195 | 13,874 | 11,573 | 10,652 | |||||||||||||
Net interest income | 68,858 | 66,863 | 64,522 | 62,436 | 61,408 | |||||||||||||
Provision for loan losses | 6,518 | 6,624 | 4,121 | 4,139 | 9,055 | |||||||||||||
Net interest income after provision for loan losses | 62,340 | 60,239 | 60,401 | 58,297 | 52,353 | |||||||||||||
Non-interest income: | ||||||||||||||||||
Service charges on deposit accounts | 1,714 | 1,595 | 1,653 | 1,585 | 1,499 | |||||||||||||
Mortgage banking | 688 | 789 | 789 | 518 | 894 | |||||||||||||
Credit card income | 1,993 | 1,838 | 1,756 | 1,578 | 1,298 | |||||||||||||
Securities gains | – | 186 | – | 4 | – | |||||||||||||
Increase in cash surrender value life insurance | 780 | 787 | 786 | 777 | 797 | |||||||||||||
Other operating income | 442 | 396 | 475 | 407 | 417 | |||||||||||||
Total non-interest income | 5,617 | 5,591 | 5,459 | 4,869 | 4,905 | |||||||||||||
Non-interest expense: | ||||||||||||||||||
Salaries and employee benefits | 12,385 | 13,070 | 13,098 | 13,296 | 11,432 | |||||||||||||
Equipment and occupancy expense | 2,163 | 2,193 | 2,113 | 1,954 | 1,566 | |||||||||||||
Professional services | 1,064 | 853 | 924 | 805 | 833 | |||||||||||||
FDIC and other regulatory assessments | 902 | 675 | 1,159 | 1,133 | 1,030 | |||||||||||||
Other real estate owned expense | 25 | 289 | 160 | 316 | 160 | |||||||||||||
Other operating expense | 6,760 | 6,070 | 6,556 | 6,008 | 6,234 | |||||||||||||
Total non-interest expense | 23,299 | 23,150 | 24,010 | 23,512 | 21,255 | |||||||||||||
Income before income tax | 44,658 | 42,680 | 41,850 | 39,654 | 36,003 | |||||||||||||
Provision for income tax | 8,421 | 8,120 | 8,310 | 7,051 | 14,853 | |||||||||||||
Net income | 36,237 | 34,560 | 33,540 | 32,603 | 21,150 | |||||||||||||
Dividends on preferred stock | 32 | – | 31 | – | 31 | |||||||||||||
Net income available to common stockholders | $ | 36,205 | $ | 34,560 | $ | 33,509 | $ | 32,603 | $ | 21,119 | ||||||||
Basic earnings per common share | $ | 0.68 | $ | 0.65 | $ | 0.63 | $ | 0.61 | $ | 0.40 | ||||||||
Diluted earnings per common share | $ | 0.67 | $ | 0.64 | $ | 0.62 | $ | 0.60 | $ | 0.39 |
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) | |||||||||||||||||||||||||||||||||||||||
ON A FULLY TAXABLE-EQUIVALENT BASIS | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
4th Quarter 2018 | 3rd Quarter 2018 | 2nd Quarter 2018 | 1st Quarter 2018 | 4th Quarter 2017 | |||||||||||||||||||||||||||||||||||
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 | $ | 6,403,139 | 5.13 | % | $ | 6,203,372 | 5.03 | % | $ | 5,958,377 | 4.94 | % | $ | 5,847,443 | 4.81 | % | $ | 5,680,227 | 4.68 | % | |||||||||||||||||||
Tax-exempt (2) | 29,656 | 3.26 | 30,005 | 3.94 | 30,246 | 3.94 | 36,357 | 4.06 | 36,992 | 4.95 | |||||||||||||||||||||||||||||
Total loans, net of | |||||||||||||||||||||||||||||||||||||||
unearned income | 6,432,795 | 5.12 | 6,233,377 | 5.03 | 5,988,623 | 4.93 | 5,883,800 | 4.80 | 5,717,219 | 4.68 | |||||||||||||||||||||||||||||
Mortgage loans held for sale | 3,364 | 3.30 | 3,538 | 4.15 | 3,770 | 4.26 | 3,698 | 4.50 | 6,199 | 3.52 | |||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||||||||
Taxable | 498,138 | 2.82 | 482,571 | 2.72 | 475,777 | 2.63 | 435,747 | 2.52 | 406,488 | 2.43 | |||||||||||||||||||||||||||||
Tax-exempt (2) | 98,027 | 2.34 | 105,592 | 2.45 | 112,145 | 2.60 | 120,270 | 2.56 | 128,201 | 3.27 | |||||||||||||||||||||||||||||
Total securities (3) | 596,165 | 2.74 | 588,163 | 2.67 | 587,922 | 2.62 | 556,017 | 2.53 | 534,689 | 2.63 | |||||||||||||||||||||||||||||
Federal funds sold | 156,884 | 2.44 | 163,453 | 2.17 | 141,915 | 1.96 | 131,472 | 1.70 | 143,905 | 1.40 | |||||||||||||||||||||||||||||
Restricted equity securities | 879 | 1.35 | 993 | 2.80 | 1,022 | 1.18 | 1,030 | 1.57 | 1,030 | 1.93 | |||||||||||||||||||||||||||||
Interest-bearing balances with banks | 334,065 | 2.45 | 61,867 | 1.98 | 73,714 | 1.79 | 96,012 | 1.60 | 310,289 | 1.31 | |||||||||||||||||||||||||||||
Total interest-earning assets | $ | 7,524,152 | 4.76 | % | $ | 7,051,391 | 4.74 | % | $ | 6,796,966 | 4.64 | % | $ | 6,672,029 | 4.51 | % | $ | 6,713,331 | 4.29 | % | |||||||||||||||||||
Non-interest-earning assets: | |||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 74,272 | 76,800 | 68,190 | 68,309 | 68,444 | ||||||||||||||||||||||||||||||||||
Net premises and equipment | 58,521 | 58,873 | 59,262 | 59,709 | 57,320 | ||||||||||||||||||||||||||||||||||
Allowance for loan losses, accrued | |||||||||||||||||||||||||||||||||||||||
interest and other assets | 128,054 | 127,850 | 129,585 | 140,558 | 149,636 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 7,784,999 | $ | 7,314,914 | $ | 7,054,003 | $ | 6,940,605 | $ | 6,988,731 | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||||||
Checking | $ | 908,416 | 0.74 | % | $ | 819,807 | 0.67 | % | $ | 827,540 | 0.56 | % | $ | 899,311 | 0.52 | % | $ | 899,334 | 0.46 | % | |||||||||||||||||||
Savings | 52,443 | 0.54 | 53,835 | 0.52 | 54,842 | 0.34 | 53,269 | 0.31 | 49,697 | 0.31 | |||||||||||||||||||||||||||||
Money market | 3,537,522 | 1.56 | 3,305,293 | 1.33 | 3,089,595 | 1.10 | 3,027,176 | 0.90 | 3,065,298 | 0.80 | |||||||||||||||||||||||||||||
Time deposits | 687,361 | 1.92 | 643,260 | 1.65 | 596,450 | 1.36 | 576,857 | 1.21 | 576,010 | 1.16 | |||||||||||||||||||||||||||||
Total interest-bearing deposits | 5,185,742 | 1.45 | 4,822,195 | 1.25 | 4,568,427 | 1.03 | 4,556,613 | 0.86 | 4,590,339 | 0.77 | |||||||||||||||||||||||||||||
Federal funds purchased | 263,125 | 2.36 | 229,016 | 2.09 | 295,309 | 1.87 | 297,051 | 1.60 | 271,248 | 1.37 | |||||||||||||||||||||||||||||
Other borrowings | 64,665 | 4.79 | 64,652 | 4.79 | 64,699 | 4.85 | 64,805 | 4.89 | 60,829 | 4.98 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 5,513,532 | 1.53 | % | $ | 5,115,863 | 1.33 | % | $ | 4,928,435 | 1.13 | % | $ | 4,918,469 | 0.95 | % | $ | 4,922,416 | 0.86 | % | |||||||||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||
Non-interest-bearing | |||||||||||||||||||||||||||||||||||||||
demand | 1,551,366 | 1,511,410 | 1,469,194 | 1,389,217 | 1,444,338 | ||||||||||||||||||||||||||||||||||
Other liabilities | 40,185 | 16,333 | 13,079 | 15,007 | 22,029 | ||||||||||||||||||||||||||||||||||
Stockholders’ equity | 689,525 | 678,839 | 650,641 | 621,004 | 599,754 | ||||||||||||||||||||||||||||||||||
Accumulated other comprehensive | |||||||||||||||||||||||||||||||||||||||
(loss) income | (9,609 | ) | (7,531 | ) | (7,346 | ) | (3,092 | ) | 194 | ||||||||||||||||||||||||||||||
Total liabilities and | |||||||||||||||||||||||||||||||||||||||
stockholders’ equity | $ | 7,784,999 | $ | 7,314,914 | $ | 7,054,003 | $ | 6,940,605 | $ | 6,988,731 | |||||||||||||||||||||||||||||
Net interest spread | 3.23 | % | 3.41 | % | 3.51 | % | 3.56 | % | 3.43 | % | |||||||||||||||||||||||||||||
Net interest margin | 3.63 | % | 3.77 | % | 3.82 | % | 3.81 | % | 3.66 | % | |||||||||||||||||||||||||||||
(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% for the quarters in 2018 and 35% for the quarter in 2017. | |||||||||||||||||||||||||||||||||||||
(3 | ) | Unrealized (losses) gains on available-for-sale debt securities are excluded from the yield calculation. |