ServisFirst Bancshares (NYSE:SFBS) Issues Earnings Results

ServisFirst Bancshares (NYSE:SFBS) released its quarterly earnings results on Monday. The financial services provider reported $1.57 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.57, FiscalAI reports. The company had revenue of $168.53 million during the quarter, compared to analysts’ expectations of $167.85 million. ServisFirst Bancshares had a return on equity of 17.73% and a net margin of 30.95%.

Here are the key takeaways from ServisFirst Bancshares’ conference call:

• ServisFirst posted strong Q2 results, with net income of $85.8 million and diluted EPS of $1.57, up 3.4% sequentially and 40% year over year. Return on average assets improved to 1.91% and return on average common equity remained strong at 17.71%.
• Loan growth accelerated sharply, with ending loans up 15.3% annualized from the prior quarter and the pipeline at a record level. Management said demand was broad-based across most regions, especially Florida, Tennessee, Houston and Texas.
• Net interest margin expanded to 3.63%, supported by higher loan yields, disciplined deposit pricing and the recovery of interest income from a paid-off nonaccrual credit. Management expects further margin expansion, though likely at a slower pace than earlier in the year.
• Credit quality remained solid, with NPAs down nearly $7 million net, modest charge-offs, and the allowance for loan losses essentially stable at 126 basis points of loans. Management said it does not see any systemic weakening in the portfolio.
• Capital and liquidity are strong, but growth is creating optionality, with CET1 at 11.83%, book value rising, and no FHLB advances or brokered deposits. Management said it is considering a range of uses for excess capital, including acquisitions or share repurchases, while continuing to invest in Houston.

ServisFirst Bancshares Stock Performance

SFBS opened at $87.61 on Wednesday. The firm has a market cap of $4.79 billion, a PE ratio of 14.93 and a beta of 0.86. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 0.02. The business has a fifty day simple moving average of $81.70 and a 200-day simple moving average of $79.76. ServisFirst Bancshares has a fifty-two week low of $67.20 and a fifty-two week high of $90.64.

Shares of ServisFirst Bancshares are going to split on Friday, August 21st. The 2-1 split was announced on Monday, July 20th. The newly minted shares will be payable to shareholders after the closing bell on Thursday, August 20th.

ServisFirst Bancshares Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Wednesday, July 1st were given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Wednesday, July 1st. ServisFirst Bancshares’s dividend payout ratio is 25.89%.

Trending Headlines about ServisFirst Bancshares

Here are the key news stories impacting ServisFirst Bancshares this week:

• Positive Sentiment: ServisFirst reported Q2 earnings of $1.57 per share, matching Wall Street expectations, while revenue of $168.53 million came in slightly above estimates. The results suggest steady operating performance and support the recent stock strength.
• Positive Sentiment: The company said net interest margin should expand 4% to 6% sequentially, helped by more than $2 billion in repricing opportunities, which could boost future profitability.
• Positive Sentiment: Piper Sandler raised its price target on SFBS from $91 to $94 and kept an overweight rating, signaling continued confidence in the bank’s outlook.
• Positive Sentiment: ServisFirst also announced a two-for-one stock split, which can improve trading accessibility and often adds positive sentiment around the shares. Article: ServisFirst Bancshares, Inc. Announces Two-for-One Stock Split
• Neutral Sentiment: Investors are also focused on the upcoming split timeline, with new shares payable on August 20 and the split effective before the market opens on August 21.

Institutional Investors Weigh In On ServisFirst Bancshares

Several hedge funds have recently modified their holdings of SFBS. State of Wyoming acquired a new position in shares of ServisFirst Bancshares in the 2nd quarter valued at $29,000. Danske Bank A S acquired a new stake in ServisFirst Bancshares during the 3rd quarter worth about $32,000. Empowered Funds LLC purchased a new stake in ServisFirst Bancshares during the fourth quarter valued at about $115,000. Advisory Services Network LLC purchased a new stake in ServisFirst Bancshares during the third quarter valued at about $144,000. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in shares of ServisFirst Bancshares by 6.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,094 shares of the financial services provider’s stock worth $162,000 after buying an additional 125 shares during the period. 67.31% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

SFBS has been the topic of a number of recent analyst reports. Piper Sandler lifted their price objective on shares of ServisFirst Bancshares from $91.00 to $94.00 and gave the company an “overweight” rating in a research note on Tuesday. Weiss Ratings upgraded shares of ServisFirst Bancshares from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $95.33.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc is a bank holding company headquartered in Birmingham, Alabama, and the parent of ServisFirst Bank. The company specializes in commercial banking services, catering primarily to small and mid-sized businesses, professionals and entrepreneurs. Its product portfolio encompasses commercial real estate lending, commercial and industrial loans, deposit accounts, treasury management and other ancillary banking products designed to meet the financial needs of its clients.

ServisFirst Bank offers a full suite of deposit products, including interest-bearing checking, money market accounts and certificates of deposit, as well as a variety of loan products.