ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

Overview

• U.S. regional bank's Q2 diluted EPS rose 40% yr/yr, adjusted EPS up nearly 30%

• Net income for Q2 climbed nearly 40% from a year earlier

• Company cites strong loan growth and higher net interest margin for improved results

Outlook

• Company did not provide specific guidance or forecasts for the upcoming qtr or full yr

Result Drivers

• LOAN GROWTH - Loans grew $533 mln, or 15% annualized, during the qtr, supporting higher interest income

• NET INTEREST MARGIN - Net interest margin rose to 3.63%, up 10 bps from Q1 and 53 bps yr/yr, aided by lower deposit costs and a recovery from a previously nonaccrual loan

• NON-INTEREST INCOME - Non-interest income increased, driven by higher service charges, mortgage banking revenue, and bank-owned life insurance income

Company press release: ID:nGNX8vnnFZ

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 $95.00, about 9.3% above its July 17 closing price of $86.94

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 20 - MainStreet Bancshares Q2 profit rises on higher interest margin

• July 20 - Peoples Bancorp of North Carolina Q2 net interest income rises

• July 17 - Hingham Institution for Savings Q2 net income more than doubles on higher loan yields, lower funding costs

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(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.)