Q2 2024 ServisFirst Bancshares Inc Earnings Call Transcript
Key Points
- Servisfirst Bancshares Inc (SFBS) reported strong deposit growth of 16% annualized for the quarter.
- Loan growth was robust at 15% annualized, with a significant increase in C&I loans.
- The company added 14 new bankers in the quarter, expanding its footprint in key markets like Florida and Auburn Opelika.
- Net income increased by 17% annualized, and the net interest margin rose by 13 basis points to 2.79%.
- Core noninterest income grew significantly, driven by strong mortgage fee income, credit card income, and deposit fees.
- Non-interest expenses increased more than expected due to higher healthcare costs and investments in new markets.
- The ALLL to total loans ratio decreased from 1.31% to 1.28%, driven by improved collateral values on substandard credits.
- There was a minor increase in the cost of deposits, which is expected to continue as deposits grow.
- The company experienced higher commissions related to strong mortgage activity, impacting non-interest expenses.
- Non-interest bearing deposits showed some pressure at the end of the quarter, although average balances remained stable.
Greetings and welcome to the ServisFirst Bancshares's second-quarter earnings call. (Operator Instructions)
And as a reminder, this conference is being recorded. It is now my pleasure to introduce your host, David Hayes, Director of Investor Relations. Thank you, Davis. You may begin.
Good afternoon and welcome to our second-quarter earnings call. Today speakers will cover some highlights from the quarter and then take your questions. We will have Tom Broughton, our CEO; Henry Abbott, our Chief Credit Officer; and Kirk Presley, our CFO.
I'll now cover our forward-looking statements disclosure. Some of the discussion in today's earnings call may include forward-looking statements. Actual results may differ from any projections shared today due to factors described in our most recent 10-K and 10-Q filings. Forward-looking statements speak only as of the date they are made and ServisFirst assumes no duty to update them.
With that, I'll turn the call over to Tom.
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