ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 

By Reuters News


Overview

  • U.S. regional bank's Q3 diluted EPS rose 33% yr/yr, adjusted EPS up 23% yr/yr

  • Company loans grew 11% yr/yr

  • Company completed two-for-one stock split and announced after quarter-end a program to repurchase up to 2 mln shares


Outlook

  • ServisFirst Bancshares did not provide specific financial guidance for future quarters or the full year in its press release


Result Drivers

  • LOAN GROWTH - Co said higher loan balances supported revenue and earnings growth

  • NET INTEREST MARGIN - Wider net interest margin contributed to improved profitability

  • NONINTEREST INCOME - Higher bank-owned life insurance income and service charges supported noninterest income


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.80

Q3 Net Income

$87.31 mln

Q3 Net Interest Income

$159.81 mln

Q3 Credit Loss Provision

$15.25 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for ServisFirst Bancshares Inc is $48.50, about 23.2% above its October 16 closing price of $39.36

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 6 three months ago


Reuters Recommended Reads

  • Oct 19 - Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition

  • Oct 19 - Peoples Bancorp of North Carolina Q3 net earnings rise on loan growth

  • Oct 16 - Hingham Institution for Savings Q3 net income falls; net interest margin increases


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.