ServisFirst Bancshares, Inc. (NYSE:SFBS) Q2 2023 Earnings Call Transcript

Henry Abbott: We still do have some in our construction bucket that might fund up here in the coming quarter or 2, it just happened to be down, and we moved some of it to the permanent bucket and some of it then paid off. I mean, so we’ve got — we still got some room to go up in our construction bucket here. And I think we’re focused on C&I customers that have strong deposits with us personally and corporate. But at the same time, if there’s a good CRE project out there, it’s got good loan to value, good pricing. We’re taking a look at it, but we need deposits to come with our relationship.

Thomas Broughton: Steve, one thing I’d like on the construction loans, if they’re — if it’s a multifamily deal and they’re lease-up and interest as well, they may want to stay with us a long time so they can borrow more eventually from Fannie when they go permanent. But I keep thinking if they can borrow money from Fannie at 5.5%, and they’re paying us 8.25%,how much longer are they going to want to pay us 8.25%. That would — but we’ll see. So that’s something we can’t predict is the variability on the payoffs on the — on that side. And of course, there’s still plenty of demand in the Southeast United States for new CRE projects.

Thomas Broughton: We really appreciate everybody joining us on the call today and appreciate your support and look forward to the future. We’re very excited about the balance of the year. Thank you very much.