ServisFirst Bancshares (SFBS +14.58%) jumped on Wednesday after the Alabama-based bank holding company announced strong fourth-quarter results.
By the close of trading, ServisFirst's stock price was up more than 14%.
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ServisFirst's solid operating performance
ServisFirst's deposits rose by 5% year over year to $675.6 million, while its loans increased by 12% to $384.9 million.
The bank's net interest margin, an important profitability metric for lenders, increased by 42 basis points to 3.38%, as interest rates declined.
ServisFirst's earnings per share, in turn, surged by 33% to $1.58.
NYSE: SFBS
Key Data Points
Management is focused on disciplined execution
Impressively, the financial services provider's efficiency ratio, which measures non-interest expenses relative to revenue, improved to 29% from 36% in the year-ago quarter.
"We continued our focus on net interest margin expansion, which was enhanced by a reduction in benchmark interest rates, and we remain disciplined on expense controls," chief financial officer David Sparacio said in a press release.
Delivering handsome returns to shareowners
This strong operating performance helped to drive ServisFirst's return on average common stockholders' equity to 18.9% from 16.3% in the prior-year period.
The well-run bank, in turn, was able to reward its shareholders with a 13% dividend raise to $0.38 per share.
