ServisFirst Bancshares, Inc. (NASDAQ:SFBS) Q3 2019 Earnings Conference Call - Final Transcript
Oct 21, 2019 • 05:15 pm ET
William M. Foshee
fee on the commitment. These were loans that would have otherwise not met the banks' lending criteria. Thus the credit enhancement entice the bank to lend in this situation. Taxes, year-to-date tax rate for 2019 is 22%, 21.04% without stock option credits of $1.2 million. The tax rate for 2018 was 18.9%, is 20.9% without stock option credits of $2.4 million.
Third quarter rate 2019 was 20.2%, 20.7% without stock option credits of $231,000. Third quarter of 2018, the rate was 19%. 20.3% without stock option credits of $539,000. For the remainder of 2019, projected tax rate is 21.3%. Shareholder value, book value excluding unrealized gain on AFS securities is up 16% year-over-year, and book value, including the unrealized gain is up 19% year-over-year. This concludes my comments and I will turn the program back over to Tom.
Thomas Ashford Broughton
Thank you, Bud. We certainly, from an economic outlook standpoint, we don't see a recession on the horizon, but obviously that's all the focus is. It seems to be from certainly the immediate. Our thought is, if there is a recession coming, we are well prepared for a recession. We have a very strong balance sheet. We have very strong profitability. I've always -- I've argued with the regulators over the years. Regulators argue that capital is the best defense against losses and I've always argued that's not true. The best defense against loss is to have a strong stream of income to offset any potential losses. Our nonperforming assets, our balance sheet, our credit quality is pristine, our nonperforming assets are 1.5% or 1% of assets. So we like where we are, if we see a recession, there is a recession coming, we're as well prepared as any bank in the United States. So with that, we'll open it up for questions.