Earnings Summary for ServisFirst Bancshares, Inc. (NYSE: SFBS) - Q3 2024
ServisFirst Bancshares, Inc. has released its earnings for the third quarter of 2024, showcasing significant growth and strategic management strides in a challenging environment.
Key Financial Metrics
| Metrics | Q3 2024 | Q2 2024 | Q3 2023 | YoY Change | QoQ Change | Wall Street Consensus |
|---|---|---|---|---|---|---|
| Net Income | $59.9 million | $52.1 million | $53.3 million | +12% | +15% | N/A |
| Diluted EPS | $1.10 | $0.95 | $0.98 | +12% | +16% | $0.97 |
| Net Interest Income | $115.1 million | $105.9 million | $99.7 million | +15.5% | +8.7% | N/A |
| Net Interest Margin | 2.84% | 2.79% | 2.64% | +20 bps | +5 bps | N/A |
The third quarter performance was robust, with net income climbing 12% year-over-year, and EPS exceeding expectations against consensus estimates. This growth highlights the bank's strategic focus on increasing its net interest margin, which rose by 5 basis points compared to the previous quarter.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | YoY Change | QoQ Change |
|---|---|---|---|
| Loans | $12.34 billion | +6.0% | +0.2% |
| Average Total Deposits | $13.52 billion | +6.6% | +20.2% |
The performance across major segments displayed steady growth, with loans increasing by 6% year-over-year, supported by strong demand in existing markets. Total deposits surged by 20.2% quarter-over-quarter, underscoring the bank's effective deposit growth strategies.
Key Developments and Operational Highlights
- Non-interest-bearing deposits increased significantly by $101 million sequentially, translating to a 16% annualized growth.
- Strong liquidity profile maintained with over $1.76 billion in cash and no FHLB advances.
- Book value per share escalated to $28.79, representing a 12% increase year-over-year.
Management Commentary
Tom Broughton, Chairman, President, and CEO, expressed optimism about the bank’s outlook, highlighting a solid loan pipeline and improved margins. Kirk Pressley, CFO, emphasized the company's focus on controlling expenses and driving efficiency, with a reduction in the efficiency ratio to 36.9% for the quarter.
Dividends and Share Repurchase Program
No information regarding dividends or share repurchase program was provided in the release.
Forward Guidance
The company did not provide specific forward-looking guidance but reiterated a positive outlook driven by robust financial health and strategic management moves.
Stock Price Reaction
Following the earnings announcement, ServisFirst Bancshares' stock experienced a decline, with a post-event percentage change of -3.19%.
The results manifest ServisFirst Bancshares' ongoing commitment to strategic growth, efficiency, and market resilience, despite macroeconomic challenges. The bank’s strong liquidity and credit quality provide a solid foundation for continued success.
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