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ServisFirst Bancshares (SFBS)
NYSE:SFBS
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ServisFirst Bancshares
(NYSE:SFBS)
73Outperform
ServisFirst Bancshares (SFBS) vs. S&P 500 (SPY)
Market Cap
$4.51B
Dividend Yield1.49%
Average Volume (3M)236.52K
Price to Earnings (P/E)20.5
Beta (1Y)1.46
Revenue Growth16.28%
EPS Growth9.61%
CountryUS
Employees630
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)4.16
Shares Outstanding54,582,043
10 Day Avg. Volume295,431
30 Day Avg. Volume236,522
Financial Highlights & Ratios
PEG Ratio2.14
Price to Book (P/B)N/A
Price to Sales (P/S)10.25
Price to Cash Flow (P/CF)13.40
P/FCF Ratio5.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$96.00Price Target Upside18.26% Upside
Rating ConsensusHold
Number of Analyst Covering1
ServisFirst Bancshares Business Overview & Revenue Model
Company DescriptionServisFirst Bancshares, Inc. (SFBS) is a financial services company headquartered in Birmingham, Alabama. It operates primarily through its wholly-owned subsidiary, ServisFirst Bank, which provides a range of banking products and services. The company focuses on offering commercial banking services, including deposit accounts, treasury management, and lending solutions to small and medium-sized businesses, as well as personal banking services to individuals. ServisFirst Bancshares serves customers through a network of branch locations primarily in the southeastern United States.
How the Company Makes MoneyServisFirst Bancshares generates revenue through a variety of banking-related activities. A significant portion of its income comes from interest earned on loans and advances provided to businesses and individual customers. Additionally, the company earns revenue from fees and service charges associated with deposit accounts, treasury management services, and other banking services. ServisFirst Bancshares also benefits from investment securities income, which includes interest and dividends from securities held in its portfolio. The company's profitability is influenced by its ability to manage interest rate spreads and control credit risk, while maintaining efficient operational costs. Strategic partnerships with other financial services providers and a strong regional presence are significant factors contributing to its earnings.
ServisFirst Bancshares Financial Statement Overview
Summary
ServisFirst Bancshares displays strong revenue growth and profitability with a solid balance sheet featuring zero debt. However, challenges in operational efficiency and cash flow volatility require attention.Income Statement
ServisFirst Bancshares has demonstrated strong revenue growth over the years, with a significant increase from $368 million in 2020 to $946 million in 2024. The gross profit margin has remained solid as it mirrors the total revenue, reflecting effective cost management. However, the EBIT margin has shown volatility with a notable drop in 2024, indicating potential challenges in operational efficiency. Net profit margin has been stable, indicating consistent profitability.75
Positive
Balance Sheet
The company's balance sheet is robust with a zero debt position in 2024, highlighting strong financial stability. The equity ratio has increased over time, showing a solid capital base and reduced financial risk. Return on Equity (ROE) has been positive, reflecting efficient use of shareholders' funds. However, the bank's high asset base necessitates continuous monitoring to maintain this stability.80
Positive
Cash Flow
ServisFirst has maintained positive operating cash flows, ensuring liquidity for operations. Free cash flow is strong, although its growth rate has fluctuated, showing potential instability in cash generation. The operating cash flow to net income ratio indicates efficient earnings conversion into cash. However, the significant investing cash outflows compared to financing activities suggest aggressive expansion strategies that warrant careful management.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 477.66M | 410.59M | 504.25M | 417.95M | 368.15M | Gross Profit |
| 458.73M | 377.24M | 473.18M | 390.80M | 352.66M | EBIT |
| 2.89M | 280.77M | 397.19M | 253.35M | 214.21M | EBITDA |
| 2.89M | 0.00 | 12.66M | 4.66M | 1.61M | Net Income Common Stockholders |
| 227.24M | 206.85M | 251.50M | 207.73M | 169.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.28B | 2.13B | 751.13M | 5.01B | 3.10B | Total Assets |
| 17.35B | 16.13B | 14.60B | 15.45B | 11.93B | Total Debt |
| 64.74M | 64.73M | 64.73M | 64.71M | 64.75M | Net Debt |
| -2.31B | -1.97B | -749.81M | -4.10B | -2.14B | Total Liabilities |
| 15.73B | 14.69B | 13.30B | 14.30B | 10.94B | Stockholders Equity |
| 1.62B | 1.44B | 1.30B | 1.15B | 992.35M |
| Cash Flow | Free Cash Flow | |||
| 248.27M | 193.39M | 268.98M | 256.88M | 188.99M | Operating Cash Flow |
| 252.91M | 197.30M | 272.63M | 266.33M | 191.29M | Investing Cash Flow |
| -948.53M | -200.43M | -2.64B | -1.56B | -1.41B | Financing Cash Flow |
| 941.16M | 1.32B | -1.04B | 3.31B | 2.80B |
ServisFirst Bancshares Technical Analysis
Negative
81.18
Price Trends
87.94
Negative
89.26
Negative
80.51
Positive
Market Momentum
-1.41
Positive
31.24
Neutral
10.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFBS, the sentiment is Negative. The current price of 81.18 is below the 20-day moving average (MA) of 88.12, below the 50-day MA of 87.94, and above the 200-day MA of 80.51, indicating a neutral trend. The MACD of -1.41 indicates Positive momentum. The RSI at 31.24 is Neutral, neither overbought nor oversold. The STOCH value of 10.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFBS.
ServisFirst Bancshares Risk Analysis
ServisFirst Bancshares disclosed 42 risk factors in its most recent earnings report. ServisFirst Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ServisFirst Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.83B | 14.29 | 15.13% | 2.98% | 7.81% | -2.49% | |
76 Outperform | $5.50B | 14.04 | 10.38% | 2.71% | 8.83% | 3.77% | |
74 Outperform | $4.71B | 10.38 | 7.53% | 3.65% | 15.34% | -3.89% | |
73 Outperform | $4.51B | 20.53 | 14.87% | 1.49% | 16.28% | 9.61% | |
70 Outperform | $6.82B | 14.43 | 6.60% | 3.10% | 11.96% | 11.66% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
61 Neutral | $9.24B | 13.92 | 8.70% | 3.18% | 4.56% | -13.90% |
* Financial Sector Average
Performance Comparison
SFBS
ServisFirst Bancshares
81.18
18.26
29.02%
CFR
Cullen/Frost Bankers
121.84
17.31
16.56%
FNB
F.N.B.
13.08
0.02
0.15%
FHN
First Horizon
18.19
3.99
28.10%
HOMB
Home Bancshares
27.68
4.54
19.62%
PB
Prosperity Bancshares
70.66
10.15
16.77%
ServisFirst Bancshares Earnings Call Summary
Earnings Call Date: Jan 27, 2025 | % Change Since: -9.48% | Next Earnings Date: Apr 21, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant growth in earnings, net interest margin, and book value, alongside low charge-offs and successful market expansion. However, there were challenges with loan payoffs and operational expenses.Highlights
Earnings and Profit Growth
Diluted earnings per share increased by 10% over 2023, and net income rose by $5.2 million over the third quarter, marking a 9% increase.
Net Interest Margin Improvement
Net interest margin improved from 2.57% in Q4 2023 to 2.96% in Q4 2024, with a consistent upward trend throughout the year.
Book Value Growth
The book value grew by 12% year-over-year, indicating strong financial health and shareholder value.
Low Charge-Offs and Strong Credit Performance
Annualized net charge-offs were at 9 basis points for the fourth quarter and the entire year, lower than the 10 basis points in 2023.
Deposit Growth
The company saw significant deposit growth, with non-interest bearing deposits increasing, and a 28% year-over-year growth in funding from correspondent banking.
Expansion into New Markets
Successful expansion in Memphis, Tennessee, and Auburn, Alabama, with the addition of four new producers in the fourth quarter.
Lowlights
Loan Payoffs Impact
Loan payoffs accounted for about 40% of gross loan growth in the fourth quarter, impacting net loan growth.
Credit Card Revenue Decline
A slight decline in credit card net revenue was observed, despite overall growth in non-interest income.
Expense Management Challenges
Operational expenses increased due to health plan funding, system enhancement costs, and check fraud receivable write-downs.
Company Guidance
During the ServisFirst Bancshares fourth quarter and full-year earnings call for fiscal year 2024, the company highlighted several positive metrics. Earnings per share increased by 10% compared to 2023, and the net interest margin rose from 2.57% in Q4 2023 to 2.96% in Q4 2024. The book value grew by 12% year-over-year. Net loan growth was $268 million for the quarter, with loan payoffs accounting for about 40% of gross loan growth. The loan pipeline increased by $150 million post-election, with C&I loan line utilization rising from 36.7% to 38.4%. Deposit growth was strong, especially in non-interest-bearing deposits, and the correspondent channel funding grew by 28% year-over-year. The allowance for loan loss reserve to total loans was stable at 1.30%, with non-performing assets at 26 basis points. The bank's tax rate for the quarter was 17.9%, benefiting from a tax credit investment adjustment, and the efficiency ratio improved throughout the year. Overall, the company expressed optimism for continued growth and performance into 2025.ServisFirst Bancshares Corporate Events
Executive/Board Changes
ServisFirst Bancshares Appoints New CFO Sparacio
Positive
Feb 19, 2025
On February 18, 2025, ServisFirst Bancshares announced the appointment of David Sparacio as Executive Vice President and Chief Financial Officer of ServisFirst Bank, effective March 10, 2025. Sparacio, a seasoned financial executive with extensive experience in banking and financial management, previously held key positions at Ameris Bank and IBERIABANK. His appointment follows an extensive nationwide search, and his expertise is expected to advance the bank’s financial strategy and support its growth. Ed Woodie, who served as interim CFO, will continue as Senior Vice President and Controller.
Financial Disclosures
ServisFirst Bancshares Reports Strong 2024 Financial Results
Positive
Jan 27, 2025
On January 27, 2025, ServisFirst Bancshares reported its financial results for the fourth quarter and year-end 2024, highlighting a significant increase in earnings and operational metrics. The company achieved an 8% increase in diluted earnings per share compared to the previous quarter, and a 31% rise from the same quarter the previous year. ServisFirst experienced growth in net interest margin, interest income, and deposits, alongside strong credit quality and liquidity, with a solid capital position suggesting a positive outlook for 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.