ServisFirst Bancshares Achieves Impressive Growth

By Tamara Parker • Saturday, April 13 10:16 • Permanent Link

ServisFirst Bancshares, Inc. (NYSE: SFBS) has reported impressive growth and performance metrics in its recent press release.

The company's total assets stood at $16.13 billion, with stockholders' equity at $1.44 billion. Notably, the bank achieved high growth rates across various key metrics. Its gross loans compounded annual growth rate (CAGR) stood at 15%, while total deposits CAGR was at 14%. The net income for common CAGR and diluted earnings per share (EPS) CAGR both came in at 22%. The return on average assets (ROAA) was reported at 1.37%, with an efficiency ratio of 40.67%.

ServisFirst Bancshares also highlighted its pristine credit metrics, with non-performing assets (NPAs) to assets at 0.14% and non-performing loans (NPLs) to loans at 0.18%.

The company's tangible book value has seen a consistent year-over-year increase, with a minimum of 10% growth every year since the bank opened in 2005. The stock price has seen a remarkable increase of over 4,100% since its initial capital raise in 2005, with a 18-year CAGR of 24%. Additionally, the dividend has increased annually since going public in 2014, with a 5-year CAGR of 25%.

ServisFirst Bancshares' business strategy emphasizes a simple model focusing on loans and deposits as primary drivers, backed by a limited branch footprint and technology for efficiency. The bank also outlined its opportunistic expansion plans, targeting attractive geographies and seeking growth through exceptional customer service and disciplined standards.

The bank's risk management practices include centralized risk management and support, investment in risk management resources, and healthy regulatory relations.

ServisFirst Bancshares' solid financial performance and growth trajectory underscore its position as a high-performing commercial bank with a strong focus on sustainable growth and value creation for its shareholders. As a result of these announcements, the company's shares have moved -1.4% on the market, and are now trading at a price of $59.56. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.