COMMERCIAL BANK PERFORMANCE
A HISTORICAL & CURRENT PERSPECTIVE
PRESENTED BY:
THOMAS A. BROUGHTON III
President & CEO
Table of Contents
I.
About ServisFirst Business Model
II. Perspective on National Consolidations
III. Perspective on Bank Branching Expansion
IV. Perspective on Failed Institutions
V. Perspective on Alabama Performance
VI. Perspective on Comparative Current Indicators
a.
b.
c.
Financial Statement Indicators
Credit Quality Indicators
Operating Performance Indicators
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About ServisFirst Business Model
• Urban Bank
• Organic Growth Model
• Shareholder Centered
• Simple Business Model
• Branch Light
• Decentralized Model
• Target Businesses and Professionals
• Loan Portfolio Diversity
• Public, Non-Listed Company
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ServisFirst | Total Assets ($000’s)
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ServisFirst | Earnings ($000’s)
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ServisFirst | Tangible Book Value (per common share)
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Perspective on National Consolidations
• A look at the decline in the number of FDIC-insured
Financial Institutions in the U.S. from 1990 – 2012,
with a projection toward 2020.
• Data sourced from www.fdic.gov
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National Financial Institution Consolidation
Year End 1990
12,351
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National Financial Institution Consolidation
Year End 1990
12,351
Year End 2000
8,317
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National Financial Institution Consolidation
Year End 1990
12,351
Year End 2000
8,317
Year End 2012
6,112
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National Financial Institution Consolidation
Year End 1990
12,351
Year End 2000
8,317
Year End 2012
6,112
Projected 2020
3,500
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Perspective on Branch Banking Expansion
• A look at the growth in the number of Banking
Offices in the U.S. from 1985 – 2012.
• The changing dynamic of branch banking over the
last three decades shows growth in Banking Offices
while the number of Financial Institutions declines.
• Data sourced from www.fdic.gov
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Branch Banking Expansion (1985-2012)
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Perspective on Failed Institutions
• A look at the rate of Financial Institution failures
from 2007 – 2013.
• Measures the severity of the impact geographically
across the United States.
• 2013 data is current as of 10/30/2013.
• Data sourced from www.fdic.gov
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Financial Institution Failures (2007-2013)
2007
3 failures
$2.6 Billion in TA
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Financial Institution Failures (2007-2013)
2007
3 failures
$2.61 Billion in TA
2008
30 failures
$1.67 Trillion in TA
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Financial Institution Failures (2007-2013)
2007
3 failures
$2.61 Billion in TA
2008
30 failures
$1.67 Trillion in TA
2009
148 failures
$2.08 Trillion in TA
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Financial Institution Failures (2007-2013)
2007
3 failures
$2.61 Billion in TA
2008
30 failures
$1.67 Trillion in TA
2009
148 failures
$2.08 Trillion in TA
2010
154 failures
$73.15 Billion in TA
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Financial Institution Failures (2007-2013)
2007
3 failures
$2.61 Billion in TA
2008
30 failures
$1.67 Trillion in TA
2009
148 failures
$2.08 Trillion in TA
2010
154 failures
$73.15 Billion in TA
2011
92 failures
$34.92 Billion in TA
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Financial Institution Failures (2007-2013)
2007
3 failures
$2.61 Billion in TA
2008
30 failures
$1.67 Trillion in TA
2009
148 failures
$2.08 Trillion in TA
2010
154 failures
$73.15 Billion in TA
2011
92 failures
$34.92 Billion in TA
2012
51 failures
$11.61 Billion in TA
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Financial Institution Failures (2007-2013)
2007
3 failures
$2.61 Billion in TA
2008
30 failures
$1.67 Trillion in TA
2009
148 failures
$2.08 Trillion in TA
2010
154 failures
$73.15 Billion in TA
2011
92 failures
$34.92 Billion in TA
2012
51 failures
$11.61 Billion in TA
2013*
23 failures
$5.88 Billion in TA
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Financial Institution Failures (2007-2013)
2007
3 failures
$2.61 Billion in TA
17
2008
22
7
30 failures
$1.67 Trillion in TA
8
13
2009
7
8
13
148 failures
$2.08 Trillion in TA
56
7
41
9
9
2010
16
9
7
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$73.15 Billion in TA
8
15
Scale
1-6
7-14
15-24
25-34
35-49
50+
154 failures
2011
88
70
10
92 failures
$34.92 Billion in TA
2012
51 failures
$11.61 Billion in TA
2007 - 2013
501 bank failures
$3.89 trillion in Total Assets
2013*
23 failures
$5.88 Billion in TA
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Perspective on Alabama Performance
• A look at Alabama State Profile provided by the FDIC
for Third Quarter 2013.
• Data sourced from www.fdic.gov
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Perspective on Comparative Current Indicators
• A look at Key Performance Indicators and Ratios for
commercial banks, given the following assumptions:
• Performance Indicators are classified in three areas:
– Financial Statement Indicators
– Credit Quality Indicators
– Operating Performance Indicators
• Comparative Populations include:
– Alabama
– Regional (AL, FL, GA, MS, TN)
– National
• All Indicators are 3rd Quarter 2013 and represent the Median
Data sourced from Thompson Reuters BankInsight
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FINANCIAL STATEMENT INDICATORS
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Financial Statement Indicators
Return on Average Assets
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Financial Statement Indicators
Return on Average Equity
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Financial Statement Indicators
Net Interest Margin
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Financial Statement Indicators
Cost of Funds
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Financial Statement Indicators
Yield on Loans
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Financial Statement Indicators
Yield on Earning Assets
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Financial Statement Indicators
Yield on Securities
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Financial Statement Indicators
Net Interest Income to Average Assets
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Financial Statement Indicators
Total NonInterest Income to Average Assets
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Financial Statement Indicators
Total Loans to Total Deposits
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Financial Statement Indicators
Brokered Deposits to Total Deposits
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Financial Statement Indicators
Leverage Ratio
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Financial Statement Indicators
Tier1 Risk-Based Capital Ratio
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CREDIT QUALITY INDICATORS
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Credit Quality Indicators
NonPerforming Assets to Equity Capital and LLR
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Credit Quality Indicators
NonPerforming Assets to Total Assets
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Credit Quality Indicators
Net Charge Offs to Average Loans
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OPERATING PERFORMANCE INDICATORS
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Operating Performance Indicators
Total Assets to Average Employees
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Operating Performance Indicators
Total Loans to Average Employees
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Operating Performance Indicators
Efficiency Ratio
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