ServisFirst Bancshares Shows Strong Financial Growth

ServisFirst Bancshares, Inc. (NYSE: SFBS) has released its financial performance for the period ending December 31, 2023, showcasing significant growth and strong credit metrics. Here are some key highlights:

  1. Total Assets and Stockholders' Equity: Total assets stood at $16.13 billion, with stockholders' equity at $1.44 billion.

  2. High Growth and Credit Metrics: The bank reported impressive compounded annual growth rates (CAGR) across various key metrics:

  3. Gross Loans CAGR: 15%
  4. Total Deposits CAGR: 14%
  5. Net Income for Common CAGR: 22%
  6. Diluted EPS CAGR: 22%

  7. Return on Average Assets (ROAA) and Efficiency Ratio: The ROAA was reported at 1.37%, while the efficiency ratio stood at 40.67%.

  8. Non-Performing Assets (NPAs) and Non-Performing Loans (NPLs): ServisFirst demonstrated strong credit quality with NPAs/assets at 0.14% and NPLs/loans at 0.18%.

  9. Tangible Book Value and Stock Price: The tangible book value has shown consistent annual growth, with a minimum of 10% year-over-year increase since the bank's inception in 2005. The stock price has increased by over 4,100% since the initial capital raise in 2005, with a 5-year CAGR of 25%.

  10. Branch and Loan Production Office (LPO) Footprint: ServisFirst operates through 30 branches and 2 LPOs, strategically positioned in various markets to serve its customer base.

  11. Market Share and Business Model: The bank's business model focuses on traditional commercial banking services, with a culture of cost control and emphasis on C&I and Owner-Occupied CRE lending expertise.

  12. Regional Expansion: ServisFirst has strategically expanded its presence in multiple markets, targeting high-performing metropolitan areas and leveraging the expertise of industry contacts.

  13. Management Team: The bank is led by a seasoned management team with extensive experience in the banking industry, fostering a culture of high performance and shareholder value creation.

  14. Risk Management: ServisFirst has robust risk management practices in place, with centralized risk monitoring, credit processes, and a focus on maintaining healthy regulatory relations.

The press release highlights ServisFirst Bancshares, Inc.'s strong financial performance, consistent growth, prudent credit management, and strategic expansion efforts, positioning the bank as a high-performing metropolitan commercial bank. The market has reacted to these announcements by moving the company's shares -1.4% to a price of $58.74. Check out the company's full 8-K submission here.

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