July 19, 2021 16:02 ET | Source: ServisFirst Bancshares, Inc. ServisFirst Bancshares, Inc.
Birmingham, Alabama, July 19, 2021 (Global News Agency)-ServisFirst Bancshares, Inc. (NYSE: SFBS) today announced its earnings and operating results for the quarter ended June 30, 2021.
Chairman, President and Chief Executive Officer Tom Broughton said: "The strong loan growth and continued robust loan channels prove that as customers and potential customers return to a more normal operating environment, we are able to meet their needs. Financial needs."
Chief Financial Officer Bud Foshee said: "Our credit quality and low-cost structure have withstood the pandemic, and we remain optimistic about the future."
ServisFirst Bancshares, Inc. reported that for the quarter ended June 30, 2021, the net income and net profit available to common shareholders was US$50 million, while the net profit and net profit available to common shareholders in the same quarter of 2020 For 40.4 million U.S. dollars. Diluted earnings per common share in the second quarter of 2021 was US$0.92, compared to US$0.75 in the second quarter of 2020.
In the second quarter of 2021, the average annualized return on assets was 1.56%, and the average annualized return on common equity shareholders' equity was 18.98%, compared to 1.55% and 18.40% in the second quarter of 2020.
Net interest income in the second quarter of 2021 was US$94.7 million, compared with US$92.4 million in the first quarter of 2021 and US$83.2 million in the second quarter of 2020. The net interest margins for the second quarter of 2021 are 3.06% and 3.20%, and 3.32% for the first quarter of 2021 and the second quarter of 2020. The net cost of PPP loans of US$8 million in the second quarter of 2021 increased the loan yield by 37 basis points, while the PPP loan cost increased by US$9.1 million in the first quarter of 2021, or 43 basis points of the loan yield.
The average loan in the second quarter of 2021 was US$8.64 billion, a year-on-year increase of US$132.4 million, a year-on-year increase of 6%, and the average loan in the first quarter of 2021 was US$8.51 billion, a year-on-year increase of US$311.3 million, a year-on-year increase of 4%. The second quarter of 2020 was 83.3 One hundred million U.S. dollars. In the second quarter of 2021, the total amount of the second round of PPP loan disbursement was 28 million U.S. dollars, and the total amount of the first round of PPP loan exemptions in the second quarter of 2021 was 400.6 million U.S. dollars.
The average total deposits in the second quarter of 2021 was US$10.73 billion, an increase of US$554.8 million, or 22% year-on-year, and the average total deposits in the first quarter of 2021 were US$10.18 billion, an increase of US$1.86 billion, or 21%. The second quarter of 2020 The average total deposit is 8.87 billion U.S. dollars.
The ratio of non-performing assets to total assets in the second quarter of 2021 was 0.15%, a decrease of one basis point from 0.16% in the first quarter of 2021, and a decrease of 11 basis points from 0.26% in the second quarter of 2020. Average loans in the second quarter of 2021 The annualized net recovery rate is 0.01%, while the annualized net write-offs for the first quarter of 2021 and the second quarter of 2020 are 0.02% and 0.20%, respectively. The credit loss provisions for the quarters ending June 30, 2021, March 31, 2021, and December 31, 2020 are calculated according to the CECL method and accounted for 1.21%, 1.12%, and 1.04% of total loans, respectively. The other quarter-end periods that are prepared for loan losses are not restated for the use of CECL, but are calculated based on the incurred loss method. As of June 30, 2020, loan loss provisions accounted for 1.10% of total loans. Excluding PPP loans, during all discussion periods, the credit loss provisions under the CECL method as a percentage of total loans on June 30, 2021 and under the incurred loss model were 1.30% and 1.26% on March 31, 2021, respectively. This compares to 1.26% on June 30, 2020. We recorded a credit loss reserve of US$9.7 million in the second quarter of 2021, compared to US$7.5 million in the first quarter of 2021 and US$10.3 million in the second quarter of 2020. The quarterly-related increase in credit loss reserves of $2.2 million was mainly due to loan growth and qualitative factors that reflected the economic uncertainty associated with the termination of PPP.
Non-interest income in the second quarter of 2021 increased by US$2.6 million, or 37%, from US$7 million in the second quarter of 2020, reaching US$9.6 million. Mortgage banking revenue increased by US$592,000, or 28%, from the second quarter of 2020, reaching US$2.7 million by the second quarter of 2021. Margin pricing for mortgage loans was raised in the third quarter of 2020, which increased revenue per loan by approximately 18%. Compared with the US$1.4 million in the second quarter of 2020, net credit card revenue in the second quarter of 2021 increased by US$514,000, or 37%, to US$1.9 million. The number of credit card accounts has increased by approximately 36%, and the total expenditure amount has increased. Compared with the second quarter of 2020, the number of credit card accounts in the second quarter of 2021 has increased by 47%. The cash surrender value of life insurance increased by US$219,000, or 15%, to US$1.7 million in the second quarter of 2021, compared to US$1.5 million in the second quarter of 2020. Other income in the second quarter of 2021 increased by US$536,000, or 222%, to US$777,000 from US$241,000 in the second quarter of 2020. In the second quarter of 2020, we used other means to write down the value of the interest rate cap by $252,000 in revenue. Merchant service revenue increased from US$134,000 in the second quarter of 2020 to US$289,000 in the second quarter of 2021, or 15%.
Non-interest expenses in the second quarter of 2021 increased by US$2.5 million or 9% from US$28.8 million in the second quarter of 2020 to US$31.3 million, and increased by US$2.4 million or 8% on the basis of the relevant quarter. Salary and welfare expenditures in the second quarter of 2021 increased by US$1.1 million, or 7%, to US$16.9 million from US$15.8 million in the second quarter of 2020, and increased by US$1.3 million on the basis of the relevant quarter, or 9 %. Compared with the second quarter of 2020, the salary expenditure in the second quarter of 2021 only increased by only US$326,000. In the second quarter of 2020, the higher loan issuance cost delays associated with the issuance of the first round of PPP loans reduced wages and welfare expenses to lower than expected levels otherwise in that quarter. Compared with the 492 employees on June 30, 2020, the number of FTE employees on June 30, 2021 has increased by 35 to 527, and is an increase of 36 employees from the end of the first quarter of 2021. Equipment and occupancy expenses increased by US$410,000, or 17%, to US$2.8 million in the second quarter of 2021, up from US$2.4 million in the second quarter of 2020, and an increase of US$190,000 on the basis of the associated quarter. The cost of third-party processing and other services increased from US$3.6 million in the second quarter of 2020 to US$3.9 million in the second quarter of 2021, an increase of US$324,000, or 9%, a month-on-month increase of US$530,000. The FDIC and other regulators’ assessments increased from US$595,000 in the second quarter of 2020 to US$830,000 to US$1.4 million in the second quarter of 2021, and decreased by US$157,000 or 10% on a related quarter basis. The lower asset growth in the second quarter of 2020 has caused us to adjust the assessment accruals for the quarter. Expenses related to other real estate ownership decreased from US$1.3 million in the second quarter of 2020 to US$763,000 to US$540,000 in the second quarter of 2021, and increased by US$383,000 in the relevant quarter. The amount for the second quarter of 2020 includes the write-down of the value of two foreclosed properties in our Birmingham area. The increase in the relevant quarter was due to a write-down of a property in the Nashville area in the second quarter of 2021. Other operating expenses in the second quarter of 2021 increased by US$581,000, or 15%, from US$4 million in the second quarter of 2021, to US$4.6 million. In the second quarter of 2020, there was a decrease of 79,000 USD from the previous quarter. In the second quarter of 2021, we increased the credit loss reserve for unfunded loan commitments by $500,000 and included other operating expenses. The efficiency ratio in the second quarter of 2021 was 30.03%, compared with 31.92% in the second quarter of 2020 and 28.68% in the first quarter of 2021.
Compared with the US$10.7 million in the second quarter of 2020, the income tax expense for the second quarter of 2021 increased by US$2.6 million, or 24%, to US$13.3 million. Our effective tax rate in the second quarter of 2021 was 20.97%, compared to 20.95% in the second quarter of 2021. The second quarter of 2020. We confirmed that the excess tax benefits resulting from the exercise and vesting of stock options and restricted stock in the second quarter of 2021 and 2020 resulted in a reduction in income tax reserves of US$724,000 and US$136,000, respectively.
GAAP reconciliation and management instructions for non-GAAP financial measures
This press release contains certain non-GAAP financial metrics, including tangible common stock shareholders’ equity, total tangible assets, tangible book value per share and total tangible common stock’s total tangible assets, each of which excludes goodwill related to our acquisition And the core deposit intangible asset Metro Bancshares, Inc. in January 2015. We also include total loans excluding PPP loans. We believe that these non-GAAP financial measures provide management and investors with useful information. This information supplements our GAAP calculations of financial condition, operating performance and cash flow; however, we acknowledge that these non-GAAP financial measures have many limit. Therefore, you should not treat these disclosures as a substitute for results determined under GAAP, and they are not necessarily comparable to non-GAAP financial measures used by other companies, including companies in our industry. The following reconciliation table provides a more detailed analysis of non-GAAP financial measures as of the comparison period provided in this press release. U.S. dollars are in thousands, except for stock and per share data.
ServisFirst Bancshares, Inc. is a bank holding company located in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. operates in Birmingham, Huntsville, Mobile, Montgomery and Dothan, Alabama, Northwest Florida, Midwest Florida, Nashville, Tennessee, Atlanta, Georgia and Charleston provide commercial and personal financial services, South Carolina.
ServisFirst Bancshares, Inc. submits periodic reports to the US Securities and Exchange Commission (SEC). Copies of its documents can be obtained through the US Securities and Exchange Commission's website www.sec.gov or www.servisfirstbancshares.com.
Statements in this press release that are not historical facts, including but not limited to statements about future operations, results, or performance, are hereby deemed "forward-looking statements" to achieve the safe harbor required by Article 21E. Section 27A of the Securities Exchange Act of 1934 and the Securities Act of 1933. "Believe", "anticipate", "anticipate", "project", "plan", "intend", "will", "may", "will", "may" and similar expressions generally indicate forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, no matter where they appear in this press release or other ServisFirst Bancshares, Inc. statements, are estimates that reflect the judgments of ServisFirst Bancshares, Inc.’s senior management, and There are many risks and uncertainties that may cause actual results to differ materially from those suggested in the forward-looking statements. Therefore, such forward-looking statements should be considered based on various factors that may affect the accuracy of such forward-looking statements, including but not limited to: the global health and economic crisis caused by the COVID-19 outbreak; general economic conditions, especially the credit market and Southeastern region; capital market performance; changes in interest rates, yield curves, and spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes in our loan portfolio and deposit base; The economic crisis and related credit issues in the industries most severely affected by the COVID-19 epidemic, including but not limited to restaurants, hotels, and retail industries; possible changes in laws and regulations and government monetary and fiscal policies, including but not limited to economic stimulus measures; laws and The cost and other impacts of administrative cases and similar emergencies; possible changes in customer creditworthiness and possible impairment of loan recoverability and collateral value; the impact of natural disasters such as hurricanes and tornadoes on our regional markets; from banks and non-banks Competition among financial institutions has intensified. The above list of factors is not exhaustive. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the "Notes Regarding Forward-Looking Statements" and "Risk Factors" in our latest annual report on Form 10-K in our quarterly report. Form 10-Q for the year and other SEC documents we filed. If one or more factors affecting our forward-looking information and statements prove to be incorrect, then our actual results, performance or achievements may be materially related to the content expressed or implied in the forward-looking information and statements contained herein. difference. Therefore, you should not place undue reliance on any forward-looking statements made only on the date of publication. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements made from time to time.
For more information about ServisFirst Bancshares, Inc., please visit www.servisfirstbancshares.com or call (205) 949-0302.
Contact: ServisFirst Bank Davis Mange (205) 949-3420 dmange@servisfirstbank.com