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

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

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.)