On October 16, 2023, ServisFirst Bancshares Inc (SFBS, Financial) announced its earnings and operating results for the third quarter of 2023. Despite facing challenges, the company demonstrated robust growth in total assets and deposits, and maintained strong credit quality.
Financial Highlights
SFBS reported a net income of $53.3 million for the quarter ended September 30, 2023, a slight decrease from the second quarter of 2023 and a 17% decrease from the third quarter of 2022. The diluted earnings per share remained steady at $0.98 compared to the second quarter of 2023, but showed a 17% decrease from the third quarter of 2022.
Despite the decrease in net income, SFBS reached a milestone of $16.0 billion in total assets, a 9.9% increase year-to-date. Total deposits grew to $13.1 billion, a 7% increase from the second quarter of 2023 and a 13.8% increase year-to-date. The company also reported $2.0 billion in cash on hand with no FHLB advances or brokered deposits.
Commentary from the Management
Tom Broughton, Chairman, President and CEO, said, “We are proud to reach the $16 billion in assets milestone in the quarter, with current cash exceeding $2 billion and no FHLB advances or brokered deposits. We believe this gives our bank a significant competitive advantage.”
Bud Foshee, CFO, said, “We continue to see strong asset quality with record low past dues, while loan pipelines and activity are beginning to rebuild, which should improve profitability in coming quarters.”
Looking Ahead
While the company's net income has decreased, the strong growth in total assets and deposits, along with the robust credit quality, indicate a positive outlook for SFBS. The management's confidence in the company's competitive advantage and the potential for improved profitability in the coming quarters further underscore this outlook.
Investors and potential GuruFocus.com members interested in SFBS should keep an eye on the company's performance in the coming quarters to see if it can maintain its growth trajectory and improve its profitability.
