ServisFirst Bancshares (NYSE:SFBS) Posts Earnings Results, Beats Expectations By $0.01 EPS

ServisFirst Bancshares (NYSE:SFBS) issued its quarterly earnings data on Monday, April 20th. The financial services provider reported $1.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.53 by $0.01, Zacks reports. ServisFirst Bancshares had a return on equity of 16.95% and a net margin of 28.80%.The company had revenue of $158.99 million during the quarter, compared to analysts’ expectations of $162.07 million.

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

• Reported Q1 net income of $83 million (EPS $1.52, +33% YoY), with net interest margin expanding to 3.53%, return on assets ~1.89%, and an efficiency ratio below 30%.
• Loan growth was solid at 7% annualized, loan payoffs have diminished, and management highlights a roughly $2 billion near-term repricing opportunity plus $2.9 billion of low-rate loans maturing over the next three years.
• Deposits grew about 8% annualized while average interest-bearing deposit cost fell to 2.79%, and liquidity is strong with $1.84 billion in cash and no FHLB or brokered funding.
• Credit saw net charge-offs of roughly $8.3 million largely tied to one troubled borrower, allowance-to-loans remained at 1.25%, NPAs rose slightly to 1.00% but management expects about $17 million of near-term NPA reductions.
• Efficiency remains best-in-class below 30%, however salary expense rose from Texas hiring and payroll seasonality as the firm builds a Texas franchise (leased 26,000 sq ft; 18 bankers onboard), with management forecasting mid- to high-single-digit expense growth as investments scale.

ServisFirst Bancshares Trading Up 1.0%

Shares of SFBS stock opened at $78.18 on Wednesday. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 0.02. The stock has a market cap of $4.27 billion, a P/E ratio of 14.42 and a beta of 0.90. The stock has a 50 day simple moving average of $76.34 and a 200 day simple moving average of $76.71. ServisFirst Bancshares has a 1 year low of $67.20 and a 1 year high of $90.64.

ServisFirst Bancshares Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, April 13th. Stockholders of record on Wednesday, April 1st were given a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Wednesday, April 1st. ServisFirst Bancshares’s payout ratio is presently 28.04%.

Analysts Set New Price Targets

SFBS has been the subject of several research reports. Zacks Research cut ServisFirst Bancshares from a “strong-buy” rating to a “hold” rating in a report on Monday, March 23rd. Piper Sandler upped their price objective on ServisFirst Bancshares from $89.00 to $91.00 and gave the company an “overweight” rating in a report on Tuesday, April 21st. Weiss Ratings reiterated a “hold (c+)” rating on shares of ServisFirst Bancshares in a research report on Friday, April 10th. Hovde Group increased their price objective on ServisFirst Bancshares from $92.00 to $97.00 and gave the stock an “outperform” rating in a research report on Friday, February 27th. Finally, Wall Street Zen raised ServisFirst Bancshares from a “sell” rating to a “hold” rating in a report on Saturday, March 7th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $94.33.

Hedge Funds Weigh In On ServisFirst Bancshares

Hedge funds have recently added to or reduced their stakes in the stock. State of Wyoming acquired a new position in ServisFirst Bancshares in the 2nd quarter valued at $29,000. Danske Bank A S acquired a new stake in shares of ServisFirst Bancshares during the 3rd quarter worth $32,000. Empowered Funds LLC acquired a new stake in shares of ServisFirst Bancshares during the 4th quarter worth $115,000. Advisory Services Network LLC bought a new position in shares of ServisFirst Bancshares in the third quarter worth $144,000. Finally, Northwestern Mutual Wealth Management Co. increased its position 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 purchasing an additional 125 shares during the period. Institutional investors own 67.31% of the company’s stock.

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.