Overview

• ServisFirst Q3 adjusted EPS grows 18.2% yr/yr, reflecting strong earnings growth

• Company net interest margin rises 25 bps yr/yr despite impact from non-accrual relationship

• ServisFirst sells $83.4 mln of low-yielding bonds, reinvests in higher-yield securities

Outlook

• Company did not provide specific guidance for future quarters or full year in press release.

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co reports loans grew by $973.7 mln, or 7.9%, and deposits grew by $960.4 mln, or 7.3%, yr/yr

• NET INTEREST MARGIN EXPANSION - CFO David Sparacio highlights expansion of net interest margin and pricing discipline on loans and deposits

• PORTFOLIO RESTRUCTURING - Co sold $83.4 mln of low-yielding bonds at a loss, reinvested in higher-yield securities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "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 $91.00, about 17.4% above its October 17 closing price of $75.21

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX7wrQWC

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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.)