-
Big banks can win on price, but small banks say commercial lending is too attractive to give up on. Some community bankers are hunting for customers that bigger banks might discount and for loan officers displaced by M&A.
November 22
Strong loan growth and improved efficiency powered ServisFirst Bancshares in Birmingham, Ala., to its 10th consecutive quarter of record earnings in the quarter that ended June 30.
The $2.6 billion-asset company said Tuesday that it earned $8.2 million in the quarter, up 41% from the same period last year. For the first six months of the year, earnings were up nearly 53%, to $16.4 million.
ServisFirst attributed the earnings growth to a 30% increase in total loans, to $2 billion, which helped boost its net interest income by almost 20%, to $19.8 million, Meanwhile, its efficiency ratio fell from 47.24% a year earlier to 39.06%, which is well below the industry average.
Credit quality was mixed. The company reported a 42% increase in foreclosed real estate, to $9.8 million. ServisFirst's provision for loan losses more than doubled, to $3.1 million, year over year. Still, the ratio of nonperforming assets to total loans fell to 1.08% from 1.79% a year earlier.