Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, leveraging established price movements for profitable trades [1]. Company Overview: ServisFirst Bancshares (SFBS) - SFBS currently holds a Momentum Style Score of A, indicating strong momentum characteristics [1]. - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [2]. Performance Metrics - Over the past week, SFBS shares increased by 4.46%, outperforming the Zacks Financial - Savings and Loan industry, which rose by 1.91% [3]. - In a longer timeframe, SFBS shares have appreciated by 6.38% monthly, compared to the industry's 2.36% [3]. - Over the last quarter, SFBS shares rose by 4.91%, and over the past year, they gained 81.62%, while the S&P 500 increased by 4.71% and 39.26%, respectively [3]. Trading Volume - The average 20-day trading volume for SFBS is 166,172 shares, which serves as a bullish indicator when combined with rising stock prices [3]. Earnings Outlook - In the last two months, two earnings estimates for SFBS have been revised upwards, raising the consensus estimate from $3.82 to $4.09 [4]. - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [4]. Conclusion - Given the strong performance metrics and positive earnings outlook, SFBS is positioned as a solid momentum pick and is recommended for consideration in the near term [4].

Financial Data and Key Metrics - Net income increased by approximately 15% from the second quarter, with diluted EPS remaining stable [11] - Net interest margin (NIM) increased by 9% to $115 million in Q3, up from $106 million in Q2 [11] - Yield on interest-earning assets rose by 11 basis points, while the rate paid on interest-bearing liabilities increased by only 3 basis points [12] - The loan loss reserve increased by $4 million, bringing the reserve to total loans ratio to 1.31%, consistent with Q1 2024 and the same period in 2023 [9] - A special Hurricane Helene reserve of $2.7 million was created [9] Business Line Performance - Loan demand was robust in the hospitality segment, but exposure limits were maintained [4] - Early loan payoffs totaled $126 million at an average rate of 4.89%, benefiting shareholders [3] - Repricing of $105 million in low-rate fixed loans contributed to improved margins [3] - Deposit fees increased each quarter, with mortgage fee income also rising in Q3 [16] - Credit card net revenue decreased modestly but is expected to normalize in Q4 [16] Market Performance - Loan growth was strong in Q2 but stalled in Q3 due to election-related delays and uncertainty around Fed rate cuts [3][4] - The Memphis and Auburn markets showed progress, with four new bankers added in Q3, bringing the total to 155 frontline bankers [8] - Non-performing assets (NPA) to total assets remained low at 25 basis points [10] Strategic Direction and Industry Competition - The company is focused on disciplined loan pricing and avoiding broker deposits or Federal Home Loan Bank advances [5] - Competitors are increasing price investments, which is seen as a positive development [5] - The company is expanding into new markets, such as Memphis and Auburn, and expects contributions from recent hires to drive future growth [8][32] Management Commentary on Operating Environment and Future Outlook - Management expects loan demand to rebound in Q4, driven by year-end activity and potential Fed rate cuts [4][8] - The company anticipates higher loan losses in the future but remains optimistic about the economy [6] - The Federal Reserve's 50 basis point rate cut in September was seen as beneficial for customers with debt service challenges [10] Other Important Information - CFO Kirk Pressley announced his resignation for personal reasons, with Ed Woodie named as Interim CFO [14] - The company implemented a new accounting treatment for qualifying tax credits, resulting in some noise in non-interest expenses and income tax [17] - Core operating expenses are expected to remain around $45 million per quarter [41] Q&A Session Summary Question: Loan Pipeline and Growth Outlook - Management expects a decent closing amount in Q4, driven by year-end activity, but does not anticipate matching the exceptional Q2 performance [22][23] - Loan pricing remains consistent, with new loans priced around 8%, though the mix has shifted slightly towards fixed-rate loans [24][25] Question: Credit Quality and Special Mention Loans - A large borrower with a $97 million relationship was downgraded to special mention due to Hurricane Helene-related payment delays, but no significant loss content is expected [28][29][31] Question: Loan Yields and Pricing Trends - Loan yields increased significantly in Q3, driven by repricing and early payoffs, with no one-time factors influencing the results [34][36] - CD pricing is declining, with yields dropping from 5% to 4.25% for six-month CDs, reflecting more rational industry-wide pricing [37] Question: Liquidity and Funding Outlook - Short-term liquidity cash increased in Q3 due to a municipal outflow, but this is expected to normalize as loans are funded in Q4 [39][40] Question: Core Operating Expenses - Core operating expenses are expected to remain around $45 million per quarter, with potential adjustments for annual incentive accruals in Q4 [41]

Core Insights - ServisFirst Bancshares reported revenue of $123.67 million for Q3 2024, a 14.7% year-over-year increase, with EPS of $1.10 compared to $0.98 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $120.7 million by 2.46%, and the EPS surpassed the consensus estimate of $0.97 by 13.40% [1] Financial Performance Metrics - Efficiency Ratio stood at 36.9%, better than the average estimate of 37.6% from two analysts [2] - Net charge-offs to total average loans were 0.1%, matching the average estimate [2] - Net Interest Margin was 2.8%, in line with the average estimate [2] - Average Balance of Interest-earning Assets reached $16.12 billion, exceeding the average estimate of $15.71 billion [2] - Net Interest Income was reported at $115.12 million, above the average estimate of $112.22 million [2] - Total Non-interest income matched the average estimate at $8.55 million [2] - Cash surrender value life insurance income was $2.11 million, surpassing the estimated $1.87 million [2] - Service charges on deposit accounts were $2.34 million, exceeding the average estimate of $2.27 million [2] - Mortgage banking income was $1.35 million, above the estimated $1.11 million [2] - Other Operating Income was reported at $0.82 million, matching the average estimate [2] Stock Performance - Shares of ServisFirst have returned +1.4% over the past month, compared to the Zacks S&P 500 composite's +4.5% change [2] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [2]

Core Insights - ServisFirst Bancshares (SFBS) reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, and showing an increase from $0.98 per share a year ago, representing an earnings surprise of 13.40% [1] - The company generated revenues of $123.67 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.46% and increasing from $107.83 million year-over-year [1] - ServisFirst has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [1] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.04 on revenues of $126.85 million, while the estimate for the current fiscal year is $3.89 on revenues of $473.65 million [4] - The estimate revisions trend for ServisFirst is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - The Financial - Savings and Loan industry, to which ServisFirst belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - Southern Missouri Bancorp (SMBC), another company in the same industry, is expected to report quarterly earnings of $1.11 per share, reflecting a year-over-year decline of 4.3% [5]

Core Viewpoint - ServisFirst Bancshares (SFBS) is expected to report quarterly earnings of $0.97 per share, a 1% decline year-over-year, while revenues are projected to increase by 11.9% to $120.7 million [1] Group 1: Earnings and Revenue Estimates - Analysts have revised the consensus EPS estimate for the quarter 5.1% higher over the last 30 days, indicating a collective reevaluation of initial estimates [2] - The forecast for revenues stands at $120.7 million, reflecting an 11.9% increase compared to the same period last year [1] Group 2: Key Financial Metrics - The 'Efficiency Ratio' is estimated to reach 37.6%, down from 38.6% a year ago [4] - The estimated 'Average Balance - Interest-earning Assets' is projected at $15.71 billion, up from $14.98 billion in the same quarter last year [5] - The consensus estimate for 'Net Interest Income' is $112.22 million, compared to $99.70 million a year ago [5] - Analysts forecast 'Total Non-interest Income' to be $8.55 million, slightly up from $8.14 million a year ago [5] Group 3: Stock Performance and Outlook - Shares of ServisFirst have increased by 4.3% in the past month, outperforming the Zacks S&P 500 composite, which moved up by 3.5% [6] - With a Zacks Rank 1 (Strong Buy), SFBS is anticipated to outperform the overall market in the near future [6]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for ServisFirst Bancshares (SFBS) despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - ServisFirst is expected to report quarterly earnings of $0.97 per share, reflecting a -1% change year-over-year, while revenues are projected to be $120.7 million, an increase of 11.9% from the previous year [3]. - The consensus EPS estimate has been revised 5.08% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [10]. - ServisFirst holds a Zacks Rank of 1, but the combination of a 0% Earnings ESP makes it challenging to predict a positive surprise [10]. Historical Performance - In the last reported quarter, ServisFirst exceeded the expected earnings of $0.91 per share by delivering $0.95, resulting in a surprise of +4.40% [11]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [12]. Market Dynamics - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [13]. - While ServisFirst may not appear to be a strong candidate for an earnings beat, other considerations should be evaluated before making investment decisions [15].

Core Viewpoint - ServisFirst Bancshares (SFBS) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for ServisFirst for the fiscal year ending December 2024 is projected at $3.89 per share, reflecting a decrease of 1.3% from the previous year [9]. - Over the past three months, analysts have increased their earnings estimates for ServisFirst by 4.3% [9]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, which is a critical determinant of stock price movements [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - ServisFirst's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [11]. Market Dynamics - The correlation between earnings estimate revisions and near-term stock movements suggests that tracking these revisions can be beneficial for investment decisions [7]. - Institutional investors play a role in this dynamic, as they adjust their valuations based on earnings estimates, leading to significant stock price movements [5]. Business Outlook - The upgrade in ServisFirst's rating reflects an improvement in the company's underlying business, which is expected to drive buying pressure and increase its stock price [6].

Core Viewpoint - ServisFirst Bancshares (SFBS) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook for its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, which can drive stock price movements [4]. Recent Performance and Outlook - ServisFirst is projected to earn $3.82 per share for the fiscal year ending December 2024, reflecting a year-over-year decline of 3.1%. However, the Zacks Consensus Estimate has increased by 1.9% over the past three months, indicating a positive trend in earnings estimates [8]. - The upgrade to Zacks Rank 1 positions ServisFirst in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks are recognized for superior earnings estimate revisions [9][10].

Core Insights - ServisFirst Bancshares reported revenue of $114.77 million for the quarter ended June 2024, reflecting a year-over-year increase of 4.5% [5] - The company achieved an EPS of $0.95, slightly down from $0.98 a year ago, with a surprise of +4.40% compared to the consensus estimate of $0.91 [5][1] - The stock has returned +15.7% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change, but currently holds a Zacks Rank 4 (Sell) indicating potential underperformance in the near term [4] Financial Metrics - Efficiency Ratio stood at 37.3%, better than the average estimate of 40% based on two analysts [3] - Net Interest Margin was reported at 2.8%, slightly above the average estimate of 2.7% [3] - Average Balance of Interest-earning Assets was $15.24 billion, below the average estimate of $15.78 billion [3] - Net Interest Income was $105.88 million, compared to the average estimate of $106.99 million [3] - Total Non-interest income reached $8.89 million, exceeding the average estimate of $7.83 million [3] - Mortgage banking income was $1.38 million, significantly higher than the average estimate of $0.83 million [3] - Service charges on deposit accounts were $2.29 million, slightly above the average estimate of $2.20 million [3] - Credit card income was reported at $2.33 million, marginally higher than the average estimate of $2.29 million [3] - Increase in cash surrender value life insurance income was $2.06 million, surpassing the average estimate of $1.79 million [3]

ServisFirst Bancshares, Inc. (NYSE:SFBS) Earnings Conference Call July 15, 2024 5:15 PM ET Company Participants Davis Mange - Director of IR Tom Broughton - CEO Henry Abbott - CCO Kirk Pressley - CFO Rodney Rushing - EVP & COO Conference Call Participants Steven Moss - Raymond James David Bishop - Hovde Group Stephen Scouten - Piper Sandler Operator Greetings and welcome to the ServisFirst Bancshares Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and ...