ServisFirst Bancshares, Inc. (NYSE:SFBS) Q2 2022 Earnings Conference Call July 18, 2022 5:15 PM ET
Company Participants
Davis Mange - Head, Investor Relations
Tom Broughton - Chief Executive Officer
Bud Foshee - Chief Financial Officer
Henry Abbott - Chief Credit Officer
Rodney Rushing - Chief Operating Officer
Conference Call Participants
Brad Milsaps - Piper Sandler
Kevin Fitzsimmons - D.A. Davidson
David Bishop - Hovde Group
Operator
Greetings. Welcome to the ServisFirst Bancshares’ Second Quarter Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Davis Mange, Head of Investor Relations. Thank you. You may begin.
Davis Mange
Good afternoon and welcome to our second quarter earnings call. We will have Tom Broughton, our CEO; Bud Foshee, our CFO; and Henry Abbott, our Chief Credit Officer, covering some highlights from the quarter, and then we will take your questions.
I will 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 due to 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 will turn the call over to Tom.
Tom Broughton
Thank you, Davis and good afternoon and thank you for joining us on our second quarter call, I am going to – before Bud talks about the numbers, I am going to give a few highlights of the quarter.
On the loan side, obviously, the loan growth was extremely strong in the quarter, excluding PPP loans, loans grew by $803 million in the quarter. One factor is there were really no payoffs in the quarter. And we expect those to accelerate in the third and fourth quarters, which will moderate the loan growth. We still see a strong pipeline of loans, but we do expect to be more offset with payoffs in the third and the fourth quarters.
On the deposit side, we did see some runoff in the correspondent deposits that are making loans and buying securities, just like we are. And as well, our customers are experiencing very strong profitability. So they are – tax payments were up a good bit in March and April, above normal. So, that affected deposit levels as well. I think we will probably be back to more typical patterns of deposits, pre-pandemic for most of the bank’s history would see deposits decline in the first quarter, kind of be flat in the second quarter and then grow in the third and the fourth quarter of the year.