ServisFirst Bancshares, Inc. ( NASDAQ: SFBS) stock rose over 3% on April 17th, 2018 (as of 2:06 PM GMT-4; Source: Google finance) on a decent first quarter of 2018 performance.
The group’s margin rose from 3.66 in the fourth quarter to 3.81 and first quarter and they had very minimal impact from their muni yield after tax reform. The group’s investment portfolio is only 8% of their total assets and tax exempt munis are only 21% of the total portfolio, so very minimal impact on their margin. Their excess liquidity decreased by $227 million in first quarter, which have a margin improvement.
From a loan yield standpoint, the group enhanced by 13 basis points, given the fed rate increase in December and in March. These two increases added $1.1 million to margin for the quarter. The group would have $866 million in loans that their rate would reset in April.
During the first quarter of 2018, the best deposit growth was in Correspondent in the Atlanta and Mobile markets year-to-date. From a pipeline standpoint, the pipeline is consistent with its slightly above year-end is consistent with where it has been the last several quarters, which is strong.
On the other hand, despite a decent C&I loan growth, they witnessed a reduction in real estate construction loan balances. That category declined by $75 million for the quarter. However, their best growth in loans was in the Tampa Bay and Huntsville markets for the quarter.
Meanwhile, the Credit, nonperforming loans to total loans reached .16 as compared to .19 at the end of 2017. Nonperforming assets to total assets improved to .22 at March and .25 at the end of 2017. First quarter net charge-offs annualized 10 basis points to average loans and that was up in the fourth quarter. That was 56 basis points. Nonperforming assets fell by $2 million from year-end, they’re $15.5 million at March.