ServisFirst Bancshares, Inc. (NYSE:SFBS) Q2 2023 Earnings Conference Call July 20, 2023 5:15 PM ET

Company Participants

Davis Mange - VP, IR Accounting Manager

Thomas Broughton - Chairman, President & CEO

Rodney Rushing - EVP & COO

Henry Abbott - SVP & Chief Credit Officer

William Foshee - EVP, CFO, Treasurer & Secretary

Conference Call Participants

Graham Dick - Piper Sandler & Co.

David Bishop - Hovde Group

Kevin Fitzsimmons - D.A. Davidson & Co.

Stephen Moss - Raymond James & Associates

Operator

Greetings, and welcome to the ServisFirst Bancshares Second Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Davis Mange, IR Director. Thank you, David. You may begin.

Davis Mange

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

I'll now cover our forward-looking statements disclosure. Some of the discussion in today's earnings call may include forward-looking statements. Actual results may differ from any projections shared today with the factors described in our most recent 10-K and 10-Q filings. Forward-looking statements speak only as of the date they are made, and ServisFirst assumes no duty to update them. With that, I'll turn the call over to Tom.

Thomas Broughton

Thank you, Davis. Good afternoon, and thank you for joining us as we review the quarter. We really were -- really generally very pleased with the quarterly results. And of course, we have a saying that we're pleased but never satisfied with the results of the year of the quarter, and that's always true. We're never satisfied, and we think we can do much better going forward.

I'll give a few overview of some -- few of the things we're going to talk about. One of them is credit quality. Henry Abbott is going to give a review in a minute. We continue to have industry-leading credit quality as he will discuss in a few minutes, and we really don't see any issues with all the commercial real estate. If you read about in the headlines, we don't see any issues with our March real estate book at this point.

Our strong balance sheet does provide us with a lot of opportunities, and we're seeing a lot of opportunities to grow core relationships and core deposits. We don't have any broker deposits or Federal Home Loan Bank advances on our balance sheet. Very few banks can make that claim. If you include our correspondent Fed funds in our loan-to-deposit ratio is -- adjusted loan deposit ratio is 85% to date as the correspondent Fed funds flows back and forth between the non-interesting bearing and the Fed funds account based on the level of interest rates.