On July 15, 2024, Servisfirst Bancshares Inc (SFBS, Financial) released its 8-K filing announcing the financial results for the second quarter ended June 30, 2024. Servisfirst Bancshares Inc is a bank holding company that provides a range of banking services including commercial, consumer, and other loans, deposits, electronic banking, treasury and cash management services, and correspondent banking services.
Performance Overview
Servisfirst Bancshares Inc (SFBS, Financial) reported net income of $52.1 million for Q2 2024, a 4.2% increase from $50.0 million in Q1 2024 but a 2.5% decrease from $53.5 million in Q2 2023. The diluted earnings per share (EPS) for Q2 2024 was $0.95, surpassing the analyst estimate of $0.91. The company also reported a net interest income of $105.9 million, up from $102.5 million in Q1 2024 and $101.3 million in Q2 2023.
Key Financial Metrics
Here are some key financial metrics from the earnings report:
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $52.1 million | $50.0 million | $53.5 million |
| Diluted EPS | $0.95 | $0.92 | $0.98 |
| Net Interest Income | $105.9 million | $102.5 million | $101.3 million |
| Net Interest Margin | 2.79% | 2.66% | 2.93% |
| Total Assets | $16.05 billion | $15.72 billion | $15.07 billion |
| Total Deposits | $13.26 billion | $12.75 billion | $12.29 billion |
Financial Achievements and Challenges
Servisfirst Bancshares Inc (SFBS, Financial) demonstrated strong loan and deposit growth, with total loans increasing by 3.8% from Q1 2024 and 6.3% from Q2 2023. Total deposits grew by 4.0% from Q1 2024 and 7.9% from Q2 2023. The net interest margin improved to 2.79% in Q2 2024 from 2.66% in Q1 2024, reflecting better margin progression and momentum.
Tom Broughton, Chairman, President, and CEO, said, “We were pleased to add a strong banking team and enter the Auburn-Opelika, Alabama market during the quarter, and believe it should become one of our top community banking markets. Loan and deposit growth were strong throughout our footprint with the addition of new bankers and serving new and expanded customer relationships.”
However, the company faced challenges with non-performing assets, which increased to 0.23% of total assets in Q2 2024 from 0.22% in Q1 2024 and 0.16% in Q2 2023. This increase was attributed to a single relationship that moved to non-accrual status during Q1 2024. Despite this, the loan was well-collateralized and closely monitored.
Income Statement Highlights
Net interest income for Q2 2024 was $105.9 million, up from $102.5 million in Q1 2024 and $101.3 million in Q2 2023. Non-interest income increased by 3.6% year-over-year to $8.9 million, driven by higher service charges on deposit accounts and mortgage banking revenue. Non-interest expense rose by 11.3% year-over-year to $42.8 million, primarily due to increased salaries and benefits.
Balance Sheet and Cash Flow
Total assets reached $16.05 billion, a 2.1% increase from Q1 2024 and a 6.5% increase from Q2 2023. Total deposits grew to $13.26 billion, reflecting strong customer relationships and market expansion. The company's stockholders' equity increased by 2.3% from Q1 2024 and 10.8% from Q2 2023, reaching $1.51 billion.
Conclusion
Servisfirst Bancshares Inc (SFBS, Financial) delivered a solid performance in Q2 2024, exceeding analyst estimates for EPS and demonstrating strong loan and deposit growth. Despite challenges with non-performing assets, the company's financial health remains robust, supported by improved net interest margins and strategic market expansion.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Servisfirst Bancshares Inc for further details.
