ServisFirst Bancshares, Inc., headquartered in Birmingham, Alabama, held its second-quarter earnings call on July 15, 2024. The call featured key company participants, including the Director of Investor Relations, CEO, Chief Credit Officer, and CFO. Various conference call participants from financial institutions engaged in discussions on the company’s performance and prospects for the future.
During the earnings call, the company’s CEO highlighted strong deposit and loan growth, with a 16% annualized increase in deposits and a 15% annualized growth in loans. The company saw significant loan demand from customers who had delayed projects following interest rate hikes. Additionally, ServisFirst Bancshares expanded its team by adding 14 new bankers in different markets to capitalize on growth opportunities.
The Chief Credit Officer emphasized the bank’s strong credit quality and stable non-performing assets. With solid loan growth and a decreasing AD&C as a percentage of capital, the bank showcased its prudent risk management strategies. The bank’s diversified loan portfolio and disciplined approach to new relationships contributed to its positive performance in the second quarter of 2024.
The CFO provided insights into the bank’s financial metrics, highlighting a 17% annualized increase in net income and a 13% increase in margin. The bank’s net interest margin percentage improved to 2.79%, driven by growth in interest-earning assets and controlled liabilities. The CFO also discussed core non-interest income growth and key drivers contributing to the bank’s overall financial health.
As the call progressed, questions from analysts focused on CD rates, loan repricings, and future growth strategies. The management team addressed inquiries regarding the bank’s deposit strategies, loan repricing opportunities, and trends in classified and criticized assets. Overall, the earnings call provided a comprehensive overview of ServisFirst Bancshares’ financial performance, strategic initiatives, and prospects for sustained growth in the future.
