Earnings call transcript Q1 2023

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Operator

Greetings and welcome to ServisFirst Bancshares First Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, David Mange, Director of Investor Relations.

David Mange

to quarter welcome call. and afternoon, our earnings first Good

Foshee, Rodney Broughton, Chief Chief We take some your Bud then Tom quarter, CEO; from Credit CFO Rushing, the highlights and questions. our will have we'll Abbott, our our and covering Henry Operating Officer; our Officer;

I'll now cover statements forward-looking our disclosure.

XX-K differ today's described shared projections today to factors discussion Some may forward-looking any of in the filings. statements. from include our and most recent in call earnings Actual XX-Q results may due

as date the only made are to assumes them. ServisFirst speak and statements Forward-looking of update they duty no

With that, I'll turn the call over to Tom.

Tom Broughton

banking David afternoon management start you people. we next few is and off Thank various we XXXX, pandemic, we did stress the of the of Thank have We you, during year well on in and over do the industry. time. various times has great a And as good for bank a the did the after during with you certainly opportunities us for review of bit significant we little and experienced joining our to The in those in We've this again minutes significant industry. growth first everybody. dislocation periods and from call. done reports the always recession during the quarter, expect to will XXXX time the

One So, you're asking are there thing, this? reasons. during we several do like why do times well

years XX since First is, opened XX had our we over model ago. in business years changed

we're industry leading to we do an capital. our ratio increasing XX% We and growth We capitalized. are of our stable, well fund highly net income financially retain We're and have profitable. efficiency and

to credit this quality. about in more We have a in talk few strong is detail Henry going minutes. very

like Federal broker Home any many deposits Advances have don't our competitors. We of Bank Loan for

banking like we'll recent Tallahassee, minutes which talk call of So, Carolina; was [our and in to that newest built community and our [ph] Asheville, afternoon. during quite you offices, most our were all great course a are this about well. bank to off a this – Florida, doing demonstrate few ones] expansions in the City to the North for times I our in are Panama is summary, start. going in and They're

process a We're Norman in the which in of the should office are with very many pleased the start in years. the another with office] core we had these building We're have a customers, Lake relationship North off in Piedmont area with [ph], are way opening new be our of [community the banking to also to. and Carolina, right them bankers,

in Rodney in our opened few is to month. we about going talk a minutes new Houston office last correspondent that

do apparent slowdown We certainly is of in going us to a some review plus. bank. that would lending Rodney? in deposit the to side franchise. a events. the a Rodney based It of give [indiscernible] our that's the focus So recent on on to cycle running deposit quick came mid-XXXX economic And lead anticipate Rushing

Rodney Rushing

Tom. you, Thank

deposit wholesale book wanted transactions. and some how metrics and no our details beginnings, relationships not in has brokered we our had I deposits been or on our and bank's for virtually bank to provide From noted You of to just dependence base. understanding always deposit our fundings, model have

ServisFirst. Excluding relationship correspondent have of credit XX% deposits banks, a our with

industry private no correspondent are banks. and There concentrations outside of households

and of it For there. deposit goes firms real and banking firms from our base, X.X% down [ph] a] X%, law example, X%, were [makes estate commercial were

in plus correspondent very can we relationships have with see, you XX correspondent concentrations. no just it As we granular over XXX XXX settlement and states to comes are When banks. banking, are

account or a fees are much through letters management corporate their Reserve are whose Settlement banks correspondent cleared like account. Federal cash us, downstream banks us banks settled cash are daily with working

bearing non-interest shift profitability. Because a have which on sweeping relationship, deposits there for are accounts rates But effect making we fundings settlement no you expense into keep by of very because will see settlement sticky. earnings, the bearing. As these is with risen, interest bearing compensating DDA into the from interest balances, pay we DDA the

are of XX% how deposits month these settlement fact, relationships proved total with In correspondent customers. past fundings and these This are. stable

with market large Tom office the the experience last opened of we years I XX mentioned, Don relationships our number was Texas the developed together As the addition Don previously. of perfect and to correspondent worked expand Dickerson. in with Texas of with a banking, Don Texas XX over years. And choice over

the wanted our provide, in stable More looking We're to the growth highlight will and are near conservative we just we forward details of this market should I that about some in base, details. plans that deposit have grow. slide we to where to realize provided future. deck growth the the

I'll turn Chief that, our to over With Henry Officer, Abbott. it Credit

Henry Abbott

with and points in NPAs quarter. XX you, start first of prior in points quarter XX With were we total strong historic XXXX. major and X points assets the pleased that got credit Thank basis well Rodney. year Annualized basis points I'm changes basis Bank with of no charge-offs of to lows. the for that below we're maintain basis near to continue in be XXXX the to to say, a fourth X NPAs off continued XXXX quality. ended able strong same period

X.XX can the versus any portfolio first session. loan, Won't at have during the some but end have go go Q&A steps and was of deck the information one This slide you XXXX. quarter, conservative of additional was loans of to points, bullet access our rather in the questions with through bank you each end over quarter. I should X.XX about total in CRE took our to associated the the the not any the ALLL but At

as income a of as estate XXX% real the also of a of for is to commercial handful percent customers outside dropped risk and [ph] projects the based in end highlights, projects our now The AD&C estate of XX% the from quarter. of followed our are where XXX% we dropped had the vast capital. in [Sunbelt] based Southeast. commercial And only of year-end have capital at risk real Total majority producing first quarter the total at we

roughly up X.X% traditional makes office loans or more loan These our million. total income loan average portfolio. The are $X.X locations size within in typically bucket and office lockups. space our are is two-storey producing one Office suburban of

We lot exposure, have and very minimal never CBD exposure. office [ph] to the family a has single [raw is and our bank our development Comparable big lender office land been minimal. exposure] residential

look our to continued and the ensure are stressed to have appropriately risks. at CRE portfolio we closely managing We

management. our new continue our client We to best-in-class loan company, due past In first quarter ServisFirst because of with mortgage be vendor. peer group servicing to with a prior issues the our residential within switched

an major they portfolio. We did in for increase of historic see near residential and was loans within a the in dues past our quarter, related still increase delays operational mortgage the lows component to changes past caused but due that are

showing correctly The now servicing this [ph] that how were this due majority where and were to caught of loans to past lot getting properly been set mortgage up. [ACH's] A companies. in change of make issues with and up have related the payments

originated that XX% new quarter Switching loans. gears variable more were in towards first the rate of than were loans pricing,

reprice existing by loans. an the existing efforts push existing in maturity, through yield their to $XXX efforts, on million of debt loans and we both first continue also prior roughly in and to new various average those begun able to We've increased We X.X% on quarter. to repricing were

portfolio. had our items also first down $XX rate fixed movement over two million fixed loan We million the pay early for roughly rate quarter. debt within $XXX in in These positive combined in

with results pleased very Bud Foshee. quarter summary, In it the hand the in and I’ll over to first

Bud Foshee

afternoon. Good Henry. you, Thank

kicked earnings, of XXXX earnings XXXX first in loans. off PPP increased continued on when first as capital to quarter compared share to X%, the liquidity. adjusting Diluted for quarter build strong For we we earnings with the and income per

is of XX% Our component is pass-through The investment and U.S. municipal, the portfolio The agency, managed bank holding treasury balance securities, assets. of XX% XX% components and sheet, portfolio, bank portfolio company a for and were our liquidity. subject. the mortgage-backed XX% X% total of portfolio small

average total billion] a group for X.X have CMO. peer greater We is group life [XX average total with assets is that years peer [ph]. is our X.X portfolio banks never the purchased years. and of life than XX The The

of of sub debt company's company sub the life is X.X and holding and on X.X the life bank years, is based treasury average bank portfolio debt average date. average call holding bank The and life is the years and of bank the our the

sub We company have the bank expertise to analyze debt. bank and holding

Liquidity, excess funds XXXX. March were XXX million,

first in of is were a growth of first to goal XXXX was Total sheet billion of this billion. XX,XXX million XXXX. was available and X.X quarter. versus average interest quarter loan PPP the March X.X fees liquidity, billion, liquidity first XXXX X.X the and for was total range. Our XXX million Margin balance income in $X increase quarter

four Fed by NIM since of the is December increases XX increases. XXXX XXX basis record period compression XXXX. We during of increased rate result of The had basis from have consecutive points point March a to December funds XXXX.

over largest point Fed cycle. basis from increase that February only increase second rate a points, XXXX that and during one-year XXX increase was was XXXX February time The to XXX frame basis occurred

quarter for We The loans first time. as improve loan margin portfolio average was in improving X.XX%. over a see deposit repriced. rate Having will rates stabilizing maturity new the short loans NIM are and

decreased fee to in income, our rate impacted Mortgage Our XXXX. continues card impacted been non-interest and by volume by conversion increases. be of income credit September has income

over the areas of course expect in XXXX. We both improvement

X.XX% non-interest at The in The my ratio first unrealized December sale as credits of held quarter write-down million of in versus to market Tier million losses adjusting increased of the available expenses, expansions, leverage tax for investment in ratio million X.XX% million at X.XX% credits maturity of versus Our X Tax for concludes XXXX. X.X related XXXX XXX,XXX. XXXX securities. XXXX XXXX. remarks. a That our above total benefits Capital salaries X.X the in March result the quarter versus first were net and to by and was XXXX. was the after X.X was X.X

I back program Tom. will turn to the

Tom Broughton

deposit seeing Thank and in about, you, did the we opened than very first pipeline. information summary, think this quarter we last record excited more slide positive. we we're it's One thing that the we afternoon all first a we’re quarter filed bank The should lot you more in deck In Bud. the about a accounts year. of give XX%

the So, pleased improvement we're there. with very

[fair properly. everything certainly this to the going sure close manage our make tightening] our of be vigilant and because we side [ph] think slowdown and We to watching we're portfolio certainly assets quality doing expect a be manage to we're We're on do correctly cycle. credit to other we'll loan

we in where like summary, do are So we today.

model any and might have. happy is business be simple you we'll paying to questions answer dividends Our

Operator

Brad from of And proceed. with Instructions] Piper the [Operator Sandler. Milsaps our question Please line first comes

Brad Milsaps

Hey, good afternoon.

Tom Broughton

Hey, good afternoon, Brad.

Brad Milsaps

outside of didn't maybe loan pandemic wanted to on growth, is where loans. this maybe you the the quarter start think Tom, I first grow

kind deposit lot about curious, high-single-digit last talked quarter of and loan Just has know changed. growth a you I double-digit growth.

numbers of Just kind of those here you curious sort think how sit today? as we would, about

Tom Broughton

know, had of of low they you unexpected, Brad, a during them fixed pleasant very We fair that off think, of we because some payoffs number the them rates were paid quarter. are but surprises a lot that

win-win that us customers. and a So was for our

detail And for payoffs. of So, trying when going I we can the lockstep amount they treasuries are slow the realized with on the going issues, increases. it's was had, you, to it XXXX you in but the that we trend fair rates were up going way middle to we rate down industry know Fed of in started loan give tightening pretty and up substantial leading

It us, first has this slowing showed started and was up a finally we result bit, – the concern in this down quarter. to in it a and

that surprise. of [Indiscernible] last loans. slower Brad. you year, loan in on unpleasant pleasant again, it increased fixed feel summer. to the started with a loan see the unexpected loans not Again, rate So, growing was it we in of of start because growth some very probably middle won't paydowns you'll of than was surprise, part of back sort things we'll we the Brad, like – but down an was And half probably part have

Brad Milsaps

you for tend assets growth as guys. to you has higher a, Yes. yielding of of a expect up in of pick well. I trajectory, decline? of know finish loans, obviously, you move and and your kind sort mind those you be you construction some similar kind the I Obviously, books, other big areas? Would but in that, to up know of to projects see off would continue mean, been growth those downward area those your want

Tom Broughton

We know robust loans. have pipeline construction of a fairly pretty good, you

So, they're million of in they're probably a a increase – on construction still monthly positive around month. loans a $XX basis

correct? last we the be that Henry Would number think has computed. I roughly

Henry Abbott

that. than more it's think I

closer think I to quarter $XXX loans. maybe in million funded maybe million $XX a new a month, construction

Tom Broughton

in is those Brad. so. month We're there payoffs questions see million we XX your about what way, like projects not of any or but about and it's Yes, concerned a to positive there stop other of any net still But projects, those I'll are.

Brad Milsaps

Maybe helpful. kind just, Bud. of to switching that's gears No, a second

the that kind to the your It be to soon I you if comments XXX% with loan from here that or $X get how with reprice, billion, improve parts moving quarter? your expecting NIM? back could continue kind understand a heard building improvement just around trying right challenge you up, expect think liquidity about that are NIM wanted like of comments sitting that I how on – there square think rates ratio? and, you up move as deposit the Also you to you second of all guys just as book around the to seems as the Feds loans are to

Bud Foshee

Sure. Yes. definitely at Fed’s the us to It May going second meeting like the for to going looks if impact rate quarter. increase that's

floating So, – gradual We're improvement. think if in that a got X about just and just got happens, – quarter total deposits you would funds take it of into third the billion it seeing before might Fed start you either – some purchased. you I rate

about between asset looking X Fed you’re at side, the loans On funds, and billion.

say, So, that you'll you coming needs keeps to it's hurt have way. stock it to compression, some put [indiscernible]. going that a while when or for really Fed what increasing, for it's

Brad Milsaps

about XXXX adjustments to know more looked kind quarter your growth. little were first loan expenses worth growth. wanted look maybe like back quarter. of that to kind few growth It there. but so know year-over-year. XX% to think how think me. expense rate your deposit And there of kind maybe a year, about incentives about Right, a I how like is up in a this about professional tied heavier think – It of out of this I think are know Is or final or you did just should to in right. we Anything that there's to I question noting? growth typically fees

Bud Foshee

unusual. don't anything on Let I think, me professional, remember

– and to comparing after let Are it. me at I look it Let you at I'll and don't highlighted, it. everybody. but look me call. email go at anything the back go I and back look I'll quarter? email you have the

Brad Milsaps

up at I then about total But just Both. the in XX%... totality was looking expenses

Bud Foshee

quarter, it to down a had because commitments, I'll Fourth there's was we [Technical sure make Difficulty] but just look at nothing. everything

Brad Milsaps

at up XXXX? that XQ of Yes, rate growth kind to, looking was XX% you about Is think XXXX, XXXX I XXXX as versus year-over-year. the about think versus about of more XQ kind

Bud Foshee

because had markets. me, I more different front wish had in expansion I I market know of detail we've in

I sense Let me just I'll answer. something and good look a that out it make at sure to on you give

Brad Milsaps

back in hop Okay. Thanks. I'll queue.

Operator

question Please line Davidson. next Fitzsimmons Our D.A. from comes with of the proceed. Kevin

Kevin Fitzsimmons

guys. afternoon good Hey,

Tom Broughton

Kevin. afternoon, Good

Kevin Fitzsimmons

the way, correspondent this it's on very business a and to like in. top of in maybe a to level the be ask deposits want good I sort detail appreciate obviously maybe I

that in are maybe your make of and Speakers] some in dealing it You guys guys right this it balance now Just to you helping the the on it it you your or pressure in deposits what probably the mix same with thing for trying terms is that and client is and wasn't, challenging shift but within that's really the of just on sheet? wouldn't pressure in exacerbate reflect network be you deposits with near-term going more this banks [Multiple if therefore on, correspondent is on going

Tom Broughton

what sensitivity? do what perspective, you from Kevin, mean, I interest mean…? [ph], [beta] rate Deposit,

Kevin Fitzsimmons

shift on on pressure and the guess. general, that just on grow mix mainly pressure and on mix shift I that's the deposits going in to guess I

Rodney Rushing

Well, this is Rodney Rushing.

your Fed. Let business And bank Fed we find then the they the to are clearing there, the been what small to we because We this you and downstream answered in relationship settlement signs. was, then we keep sweeps the I It usual business way account beneficial us see for and the of settlement answer in it in funds. and comments banking with can relationship. intermediary an the bank. me I've community in between explain And has compensating balance is get positive my as the their if correspondent act that, question. as What it tried

us moved And that of was, makes past amount. sticky. from any of those money Out relationships relationships, very month it have than XX was XXX amount we this a that just may plus – less it was that had material small

relationships those sticky. very So, are

In going best the in Alabama, accounts that. XX% a the in corresponding true grow all had we're and Tennessee. correspondent looked, banks same vast we to of get. we probably is have majority ratio We have we Alabama. Alabama, In something That Tennessee, XX Georgia, place Georgia, State to of had relationships

So to that's we look why Texas. grow in

correspondent big market and corresponded expect Dickerson, the to going year through Don at was for rest of be the I it's next Compass. a division of was an growth Texas And for area with when we me year. this

Tom Broughton

As Rodney and bank of bearing to purchased our profitability There's interest bearing said on from profitability. no the or call, as fed whatsoever. no deposits deterioration there's the in non-interest money the effect on shift DDA funds

It'll if and DDA. improve accounts. DDA just It'll more back It to not So in it show rates the our falling, moves, money will be it non-interest start moves profitability. the it same. bearing

Rodney Rushing

that Fed we That's right. their bills the And DDA those with fact pay simple earnings.

affect expenses then to accounts. rates, money Tom profitability. as we up And accounts, said, into if, us, go have less bring if doesn't when So, shifts with interest settlement in money more but see keep that rising corresponding on you'll it they bank

we're us relationship relationship, us is makes settlement of between a it where it. [indiscernible] relationship buying and instead liquidity the a true a What from transaction it just is, it does for

Tom Broughton

know to, Kevin, mention that when wanted of you not I there's couple corresponds the to little time in weeks didn't industry stress the during a asking of care borrow to I'm them. money, take not and competitors of but that question, our when that some wanted Just once a test,

Rodney Rushing

of was during number other do tried on or a this, And to correspondent test room had they the [telling] their and line We operation. they here correspondents to is draw in test [ph]. they manages able that, wanted our And he us Jordan that their other we that not and with to were their called banks upstream from that with David lines lines learned and so. did.

Kevin Fitzsimmons

it guess on was in the deposits? what's what follow-up But this, environment you on is to an to the like a, sell for one not and ask on better, I – an in I particularly to a I have as Yeah, as you is is guess to going that, it, it Does deposits on correspondent service know, them resource? your going the, it like, was focus better. it, easier this environment make a and uninsured network

Rodney Rushing

know, know it's not my lost in funds. don't fed a you easier, if I knowledge, money bank has to to another bank

party somebody selling maybe in has one I money. counter correct could bank you where case know, relationship don't know, where I is bank that a funds, another So, of don't know overnight bank me, but a lost

Fed prudency over only know, were with their to and capital us there banks in up of look million they've that that you weeks $XX who Difficulty] deposits bank downstream know, we're small million Alabama in look, be primary we funds. you some sold $XX that [Technical Now, and a community has and couple $XXX correspondent. may It they lost is in million the got

funds some we're to know, Rodney, we to amount our move called Fed. of that selling said at we, and going of They we're you, looked you the

than us. is fed. it that about, that that's rest important as leave and Don usual deposit Sure, eight the to that so XXx to we seven base. less don't, on of in was The going ahead. hope in only and was I relationships two-week or that with and know, your answers I'm you XXx question. it's the all why I saw business happened Texas move hiring And go you the period. And stress So, to that

Kevin Fitzsimmons

to Thanks you. guess Thank one, great. And Rodney. that's I Brad's just, question. follow on No, Yeah. a

decline to about because getting you in is not? could at bottom the some know, be you So, moves we but the not the is incremental ask more this pressure say, linked want that dollars trying be to of it to stabilizing the and know, look it, the whether NII,, size say? things maybe at of but to quarter fed linked the guess then, I and I point. or is the importantly, we're is in the it bridge, quarter comment better, way there margin decline Is pressure, the would to probably fair going – high fair not When

Tom Broughton

a to some going of we'll our close the we're don't the moving rate. portfolio, couple start we're margin add securities Bud, once to can their loan short that? think three I with It’ll and will any Fed seeing bottom. improvement anything good our And We start you pretty achieves – – up. answer quarters, but take peak if know

Bud Foshee

Fed No, you on side. I yes, the kind think see just, that's – of it's we're what

Kevin Fitzsimmons

servicer And I me. that first section like one restructuring in house-keeping was change was for that is due TDR omission that out is an XXXX, the of to – or more it that. to confused due about I in referenced? that you blanked last thing that the noticed just quarter seemed just was that for the was

Bud Foshee

is don't was we longer have we and due was to have under an but just no categories. any new something that within no guidance. there changes to It change material report, were that That something more report to accounting those

Kevin Fitzsimmons

Okay.

us for Okay. All right. having Thanks guys.

Tom Broughton

Thank you.

Operator

from Our line James. Steve the comes Moss next with proceed. of Please Raymond question

Steve Moss

afternoon. Good

Tom Broughton

Hi, Steve.

Steve Moss

that on Curious your up of about days? as following margin forward you aspect see can the to loans here. Maybe pricing repricing any loan portfolio on the where think are we going front And color these give just here?

Tom Broughton

in price the first quarter. [ph] what] the them [tell Bud, was

Bud Foshee

loan For the X.XX. at was quarter, new production first

Tom Broughton

floating. XX%

Bud Foshee

first at, variable in the quarter. we're XX% Yes, rate think, I

going just improve It's So, while I to that's time. rate margin definitely more take over We're progress. to improving. definitely a Yes. loans. that's a slow mean, putting variable on

Just…

Tom Broughton

how is floating in down. loans. is, rate and million and million mentioned on XXX we're off already loans either process in like or and me $XX the this quickly I already closed in Henry payoffs mean, quarter, the what's quarter fixed seeing in rate second paydowns paying paying surprised first quarter What

much it's more So, quickly. moving

it much have. flat, you gone rate up you have loans notice but We they in well. as quantify very the don't it really rates course, as You hard see potential are certainly in the when of – cash model, on fixed to flow natural when notice rates margin that is for are your improvement is substantial as

know pay You is billion like $X it over down. year, a natural

Steve Moss

the spot helpful. terms then in have curious kind a just That's on a Right. side, shook rate any of your on of just, at bearing And things deposits feel where for quarter-end, know chance out? you if you get deposit just interest by

Rodney Rushing

see. total the bearing X.XX, total at interest interest the DDAs deposits bearing quarter end cost X.XX, Yes, was of of X.XX. The and let's was deposits

Tom Broughton

Get all that.

Steve Moss

updated still thinking back I here? or to overall, as kind pristine, forward – how in ratio just thinking going the And about just Great. going it about any got terms and reserve credit costs credit of all just then to remains thoughts of that. you're

Tom Broughton

in as much as reserve reserve. keep in We can the we keep the

there’s we in X.XX% – most we've the and us the will in know have loss our Steve. going XXXX so reserve or XXXX, into That's that recession, You had X.XX% is reserve. the keep, loan let ever accounts the

that at we're better shape So, we in feel were time. loss than we much than reserve like loan today

a banks, know, you you know, everybody's and, you exposure, remember, are how to we you we debt you details know, what, pandemic feel good, industry's a where but bit, know, look to when on time had were hit, retail exposure and feel into good retail going and banks about worried know, we So, lose helps really But death our that office much – turned CECL we hadn't that filed obviously about the exposure know it you building probably non-event. you at. little know, the AD&C you and the to retail that

it earnings got know, money you they yeah, and big lost I banks malls, mean, had but of just some sort on some handled.

like it's but there. it too. don't that I is this any headlines. some I I put have different But think maybe just, will know, this just They So, out I exposures – but loan exposure, of that are know time exposure, CNBC a think office of building some of you just any We to are. banks that on out lot there have don't

Steve Moss

everything pretty And for that Right. appreciate I me. color. much That's

thanks call today. for all So, here the

Tom Broughton

you, Thank Steve.

Operator

from proceed. comes the question Bishop Please David with line Group. of next Our Hovde

David Bishop

Good opportunistic of maybe, good. of rate the able quick ahead done you the to but it been was have think decision? credit flow I there, been and Hey, repriced, variable you sort on the in was the maybe it or potential Bud of Yeah, preamble, with evening, that that Most maybe of mentioned a loans. gentlemen. know, for you've repricing pressures know, these of think you or Was cash nature of, think or question. that questions repricing was I Rodney a and answered, loans some what loans view getting just refinancing curious my I be repricing driven the impetus was certain,

Bud Foshee

will somebody the to fixed money. more it's a need time something They rate not need might has an No, be on those borrow that a fixed them. They or to loans the about it. some that, default us it to issue. average were would issue X% you those all not on And Henry, know, and, we're no, know, credit rate construction talking loans it's rate like a you of how so necessarily these of, loan might redo and are something just – often surprising finish were

the know, model So, know, and we're loans. have X.X commercial opportunities has repricing to you in opportunities again, repricing know, years, you loan portfolio when that of for, except, we going seeing you maturity your lot on of fixed rate have you a can't it capture we're a average

today XX know, you to we'd one for as Yeah, not like million what, rates coming paid-off. bad of be, are look more of start we when they of we on fixed – anyway, thing environment, we $XX days those but, have a fixed than like over repricing might loans again, reprised in have opportunities process a seeing lot But in the just do rate this loans as say, few being rate is or down, loans quarter, today. this I

anybody are doing couple they mini that's are know, any to always might you of of constantly – have permanent Freddie they us are had a We’ve assets, and multifamily is off. selling going to our going [indiscernible] firm – who to quickly financing, developers with a and Fannie as paying any companies sense project they – selling a or a, as on the people can sense going

So that's in certainly interest. their best

David Bishop

it. that we you think assume, expansion then, Texas the I into flow And year. expect about this see of as some Houston, to sheet balance Got the into

if any up of slide that in in the curious pipeline deck? you the deposit Just shows mentioned current

Bud Foshee

in any we have there. in pipeline right? don't anything don't have No, this We yet, not of that. It's

Henry Abbott

pipeline No, our the already three growth on coming. opened two Texas had don't. He’s probably banks, new came we and we, It's we before board. not accounts Don XX or in know, with you we total anticipate accounts

those So, current he's out meeting customers.

looking third in Texas that So, market. would and fourth expect for from growth the quarter I

David Bishop

How many banks are in Texas?

Henry Abbott

State Antonio, lot in banks to we're something Houston Texas. of down you bank markets, charters community Dallas home of San the know, in XXX know, And And you over again, Austin. charters. the There’s XX numbers, and Alabama, a

Tom Broughton

that's They true. say bigger banks, bigger Texas and in deposits. banks, everything's More bigger

David Bishop

the color. Got Appreciate it.

Tom Broughton

Thank you, Dave.

I in queue. the think questions no we more have

and going answers look some expense know If forward. Bud need out you is get to to further any you information, all management I

you all us please today. joining Thanks any have for us questions, If let know. further

Operator

This today's conference. concludes

lines Thank disconnect you at may participation. this your for time. You your

ServisFirst Bancshares (SFBS) 17 Apr 232023 Q1 Earnings call transcript