ServisFirst Bancshares, Inc. has recently released its 10-K report, providing a comprehensive overview of its financial condition and results of operations for the year ended December 31, 2023. The company operates as the bank holding company for ServisFirst Bank, offering a wide range of banking services to individual and corporate customers, including various deposit accounts, loan products, and other banking services. The company's principal business involves accepting deposits from the public and making loans and other investments.
In its 10-K report, ServisFirst Bancshares highlighted several key financial metrics for 2023, including a decrease in diluted earnings per common share by 18% to $3.79, an increase in average loans by 10% to $11.60 billion, and an increase in average deposits by 4% to $12.26 billion. However, the net interest income decreased by 13% to $410.9 million, and noninterest income decreased by 9% to $30.4 million, primarily due to the maturity of an interest rate cap. Additionally, noninterest expense increased by 13% to $178.1 million, primarily driven by increases in salaries and FDIC assessments.
The 10-K report also provided a detailed analysis of the company's financial performance, including net income available to common stockholders, which decreased to $206.8 million in 2023 from $251.4 million in 2022. Basic and diluted net income per common share also decreased. The return on average assets was 1.37% in 2023, compared to 1.71% in 2022, and the return on average common stockholders’ equity was 15.13% in 2023, compared to 20.73% in 2022.
The report further delved into the analysis of net interest income, which decreased by 12.7% in 2023 from 2022, primarily due to an increase in both the average balance and rates paid on interest-bearing liabilities. The average interest-bearing liabilities increased by 19.7% year-over-year, contributing to the overall decrease in net interest income.
ServisFirst Bancshares also provided an in-depth discussion of its net interest margin, which decreased from 3.32% in 2022 to 2.81% in 2023. The company attributed this decrease to the impact of changes in interest rates and the competitive environment on its interest-earning assets and interest-bearing liabilities.
As a result of these announcements, the company's shares have moved -1.9% on the market, and are now trading at a price of $62.0. For the full picture, make sure to review ServisFirst Bancshares's 10-K report.
