Download PDF

1. Company Snapshot

1.a. Company Description

ServisFirst Bancshares, Inc.operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers.It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit.


The company's loan products include commercial lending products, such as seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans.It also offers other banking products and services comprising telephone and mobile banking, direct deposit, Internet banking, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit card systems, as well as Visa credit cards; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions.In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee.


It operates 23 full-service banking offices located in Alabama, Florida, Georgia, South Carolina, and Tennessee, as well as 2 loan production offices in Florida.The company was founded in 2005 and is headquartered in Birmingham, Alabama.

Show Full description

1.b. Last Insights on SFBS

ServisFirst Bancshares, Inc.'s recent performance was negatively impacted by its Q3 earnings miss, with quarterly earnings of $1.3 per share, falling short of the Zacks Consensus Estimate of $1.38 per share. This underperformance was likely due to evolving business conditions, as the company faced challenges in achieving expected revenue and earnings growth. The earnings call transcript revealed that management discussed various key metrics, but did not highlight any significant new products or legal issues. The company's dividend declaration of $0.335 per share in September was a positive event, but not sufficient to offset the earnings miss.

1.c. Company Highlights

2. ServisFirst Bancshares' Q3 Earnings: A Closer Look

ServisFirst Bancshares reported net income of $65.6 million and diluted earnings per share of $1.20 for the third quarter. The company's preprovision net revenue was $88.3 million, representing a return on average assets of 1.47% and a return on common equity of 14.9%. The actual EPS came out at $1.3, slightly below estimates of $1.38. Net interest income was $133.4 million, and the net interest margin was 3.09%, with a normalized net interest margin of 3.19%. The efficiency ratio improved to 35.22% from 36.90% in the third quarter of 2024.

Publication Date: Oct -21

📋 Highlights
  • Net Income & EPS Growth:: Net income rose to $65.6M ($1.20 diluted EPS), up 18% vs. prior-year quarter, driven by higher preprovision net revenue ($88.3M) and ROE of 14.9%.
  • Loan Pipeline Expansion:: Loan pipeline surged 40% YoY and 10% MoM in October, offsetting $500M in paydowns over prior two quarters, signaling expected Q4 loan growth.
  • Efficiency Ratio Improvement:: Efficiency ratio dropped to 35.22% (adjusted 33.31%) from 36.90% in Q3 2024, reflecting better cost management and operational efficiency.
  • Net Interest Margin (NIM) Expansion:: NIM at 3.09% with normalized NIM at 3.19%, poised to grow 7–10 bps/quarter from rate cuts and loan repricings, supporting future margins.
  • Deposit Cost Management:: High-cost municipal deposits declined, offset by corporate inflows, with management targeting deposit cost reductions exceeding Fed rate cuts to boost NIM.

Loan Growth and Deposit Trends

Loan growth was below expectations for the third quarter, with loan paydowns up $500 million over the prior two quarters. However, the loan pipeline increased by over 10% in October compared to September and is 40% higher than a year ago, indicating a potential rebound in loan growth. On the deposit side, high-cost municipal deposits decreased, but were offset by large corporate deposit inflows.

Asset Quality and Credit Concerns

The company reported charge-offs of $9 million, resulting in an annualized net charge-off to average loan percentage of 27 basis points. Nonperforming assets increased by $96 million during the quarter, driven by a relationship with a large merchant developer. However, the company obtained additional collateral to bolster its position and expects to have resolutions on several material credits in the fourth quarter.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 2.33, calculated using the given P/B Ratio of 2.18 and considering the minimal intangible assets for a bank, and a Dividend Yield of 1.88%, the stock appears reasonably valued. Management expects 7 to 10 basis points of margin improvement per quarter, driven by rate cuts and loan repricings. Analysts estimate next year's revenue growth at 16.9%, indicating a positive outlook for the company.

Strategic Opportunities and Challenges

The company is well-positioned to capitalize on opportunities arising from the merger of equals in their market, leveraging their strong referral network, with about 80% of new business coming from existing clients. The effective tax rate is expected to remain stable around 18.9% for 2025, supporting earnings growth.

3. NewsRoom

Card image cap

Reviewing ServisFirst Bancshares (NYSE:SFBS) & First Savings Financial Group (NASDAQ:FSFG)

Dec -02

Source: defenseworld.net

Card image cap

Commonwealth of Pennsylvania Public School Empls Retrmt SYS Acquires 885 Shares of ServisFirst Bancshares, Inc. $SFBS

Nov -24

Source: defenseworld.net

Card image cap

ServisFirst Bancshares, Inc. (SFBS) Q3 2025 Earnings Call Transcript

Oct -20

Source: seekingalpha.com

Card image cap

Compared to Estimates, ServisFirst (SFBS) Q3 Earnings: A Look at Key Metrics

Oct -20

Source: zacks.com

Card image cap

ServisFirst Bancshares (SFBS) Lags Q3 Earnings and Revenue Estimates

Oct -20

Source: zacks.com

Card image cap

ServisFirst Bancshares, Inc. Announces Results For Third Quarter of 2025

Oct -20

Source: globenewswire.com

Card image cap

What Analyst Projections for Key Metrics Reveal About ServisFirst (SFBS) Q3 Earnings

Oct -15

Source: zacks.com

Card image cap

ServisFirst Bancshares, Inc. to Announce Third Quarter 2025 Financial Results October 20th

Sep -26

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Commercial Banking

Expected Growth: 13%

Strong loan growth driven by commercial and industrial lending, increased deposits from commercial clients, and expansion into new markets. Additionally, strategic acquisitions and investments in digital banking capabilities have enhanced customer experience, contributing to the 13% growth in Commercial Banking at ServisFirst Bancshares, Inc.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Consumer Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Wealth Management

Provides investment and wealth management services, including trust and estate services.

Mortgage Banking

Offers mortgage lending services, including residential and commercial mortgage loans.

Treasury Management

Provides cash management and treasury services to businesses, including account management and payment processing.

Credit and Lending

Offers credit and lending services, including commercial and consumer loans.

8. ServisFirst Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ServisFirst Bancshares, Inc. is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers for ServisFirst Bancshares, Inc. is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ServisFirst Bancshares, Inc. is low due to the presence of multiple suppliers and the lack of concentration of suppliers.

Threat Of New Entrants

The threat of new entrants for ServisFirst Bancshares, Inc. is high due to the relatively low barriers to entry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for ServisFirst Bancshares, Inc. is high due to the presence of multiple competitors and the high level of competition in the banking industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.95%
Debt Cost 8.53%
Equity Weight 52.05%
Equity Cost 8.53%
WACC 8.53%
Leverage 92.14%

11. Quality Control: ServisFirst Bancshares, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BOK Financial

A-Score: 6.4/10

Value: 7.0

Growth: 7.4

Quality: 6.6

Yield: 4.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Commerce Bancshares

A-Score: 6.1/10

Value: 5.2

Growth: 5.7

Quality: 6.8

Yield: 4.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Third Federal

A-Score: 5.7/10

Value: 1.5

Growth: 4.8

Quality: 3.4

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Community Bank System

A-Score: 5.7/10

Value: 4.9

Growth: 5.0

Quality: 6.5

Yield: 6.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
First Financial Bankshares

A-Score: 5.4/10

Value: 3.9

Growth: 5.8

Quality: 8.1

Yield: 4.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
ServisFirst Bank

A-Score: 5.2/10

Value: 4.2

Growth: 7.1

Quality: 6.4

Yield: 3.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

72.27$

Current Price

72.27$

Potential

-0.00%

Expected Cash-Flows