ServisFirst Bancshares, Inc. (NASDAQ:SFBS) Q3 2019 Earnings Conference Call Transcript
Oct 21, 2019 • 05:15 pm ET
Good day and welcome to the ServisFirst Bancshares Incorporated Third Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Davis Mange, Investor Relations for ServisFirst Bank. Please go ahead.
Davis S. Mange
Good afternoon and welcome to our third quarter earnings call. We will have Tom Broughton, our CEO; and Bud Foshee, our CFO, covering some highlights from the quarter, and we'll then take your questions. I will now cover our forward-looking statements disclosure and then we can get started.
Some of the discussion in today's earnings call may include forward-looking statements subject to assumptions, risks and uncertainties. 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'll turn the call over to Tom.
Thomas Ashford Broughton
Thank you. Thank you, Davis and good afternoon to everybody. Before I jump into the numbers, I'd like to mention, we elected a new Director today, Chris Mettler. Chris Mettler has been on our Charleston Board of Directors. He has a technology background and we're thrilled to have Chris as a new Director of the Company. So we think, he will be a -- really a great asset for the bank and the holding company as well. So we're -- welcome to Chris, and thank you for joining us.
In regards to the quarter, we were very pleased all in all. The only thing we didn't like, we had a little bit of margin slippage. It was unexpected. And Bud is going to talk about our plans to bring it back up to the 350 basis point range. So that's something we're working on and I'll mention that later, the flexibility we have on, given our strong deposit growth. The loan growth in the third quarter was modest. Our best growth was in Nashville and West Florida. The Birmingham region had some CRE paydowns that affected growth in the quarter, plus, we didn't have any large loan closings in the quarter.
The loans are up 10% year-over-year. We do have -- tend to have lumpiness. Last quarter, we had tremendous loan growth, this quarter it's none, it's just lumpy, and that's all I can tell you is, if you ask about the economic outlook and somebody always asked every call, it does seem that clients are more cautious, given the trade war with China and the media focus on the economy and I thought about it. We really hadn't got many request to finance new boats and airplanes lately. So that tends to be a sign that people are being a little bit on the cautious side.
Our pipeline is up a good bit, over the last quarter, even net of -- we have a much higher projected payoffs in the fourth quarter than normal and it is around several projects. They're not CRE projects, they're C&I, they're medical projects,