ServisFirst Bancshares Inc. has started making preparations for the Dodd-Frank Act Stress Test as the Birmingham, Ala.-based company nears the $10 billion threshold, which it anticipates to cross sometime in either 2019 or 2020.
By mid-2018, the company will need to start in earnest preparing for the DFAST assuming there has been no regulatory reform, President and CEO Thomas Broughton III said during the company's third-quarter earnings call. The company had $6.71 billion in assets as of Sept. 30.
"I don't think there's a lot of congressmen laying in bed at night worrying about America's commercial banks," Broughton said, according to a transcript. "I'm certainly not assuming we'll get any regulatory relief."
The company added "some significant people" and a number of resources to ensure its regulatory compliance, the CEO said. "[P]robably over the last 12 months, we've had the largest growth in nonproduction personnel that we've ever had as a percentage of the total," he said.
ServisFirst reported third-quarter net income available to common stockholders of $25.3 million, or 47 cents per share, an increase of 21% year over year, according to its earnings release.