SFBS - Why did ServisFirst Bancshares stock surge today? Q2 earnings beat
2023-07-21 15:20:20 ET
- ServisFirst Bancshares ( NYSE: SFBS ) stock surged as much as 21% in Friday trading, representing the biggest intraday gain on record, after posting stronger than expected top and bottom lines for the second quarter.
- Perhaps the most notable highlight from the regional bank's earnings report was total deposits of $12.3B growing by 23.2% on an annualized basis.
- Loans came in at $11.6B, up 9% from $10.6B from the year-earlier quarter.
- The report wasn't perfect, though. Net interest income -- a key profitability metric for banks -- fell to $101.3M from $108.3M in Q1 and from $116.4M in Q2 2022. SFBS attributed the decline to "the continued narrowing in net interest spread due to Federal Reserve increases in interest rates over the last year."
- Similarly, net interest margin of 2.93% compared with 3.15% in Q1 and 3.26% a year before.
- Earlier on Friday, SA analyst Grassroots Trading laid out a Buy recommendation for SFBS, arguing the stock is undervalued as per its price-to-earnings ratio.
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Why did ServisFirst Bancshares stock surge today? Q2 earnings beat