ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

ServisFirst Bancshares

Mon 21:14

Overview
U.S. regional bank's Q3 diluted EPS rose 33% yr/yr, adjusted EPS up 23% yr/yr
Company loans grew 11% yr/yr
Company completed two-for-one stock split and announced after quarter-end a program to repurchase up to 2 mln shares

Outlook
ServisFirst Bancshares did not provide specific financial guidance for future quarters or the full year in its press release

Result Drivers
LOAN GROWTH - Co said higher loan balances supported revenue and earnings growth
NET INTEREST MARGIN - Wider net interest margin contributed to improved profitability
NONINTEREST INCOME - Higher bank-owned life insurance income and service charges supported noninterest income

Company press release: ID:nGNXc5ZSJp

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.80
 
Q3 Net Income
 
$87.31 mln
 
Q3 Net Interest Income
 
$159.81 mln
 
Q3 Credit Loss Provision
 
$15.25 mln
 

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 $48.50, about 23.2% above its October 16 closing price of $39.36
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads
Oct 19 - Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition
Oct 19 - Peoples Bancorp of North Carolina Q3 net earnings rise on loan growth
Oct 16 - Hingham Institution for Savings Q3 net income falls; net interest margin increases

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)