Latest news with #SFBS
San Francisco Chronicle
21-07-2025
- Business
- San Francisco Chronicle
ServisFirst: Q2 Earnings Snapshot
BIRMINGHAM, Ala. (AP) — BIRMINGHAM, Ala. (AP) — ServisFirst Bancshares Inc. (SFBS) on Monday reported net income of $61.4 million in its second quarter. On a per-share basis, the Birmingham, Alabama-based company said it had profit of $1.12. Earnings, adjusted for one-time gains and costs, came to $1.21 per share. The holding company for ServisFirst Bank posted revenue of $255.6 million in the period. Its adjusted revenue was $140.7 million.
Yahoo
08-07-2025
- Business
- Yahoo
ServisFirst Bancshares (SFBS): Buy, Sell, or Hold Post Q1 Earnings?
ServisFirst Bancshares has been treading water for the past six months, recording a small loss of 2.9% while holding steady at $81.34. The stock also fell short of the S&P 500's 5.3% gain during that period. Is there a buying opportunity in ServisFirst Bancshares, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it's free. We're cautious about ServisFirst Bancshares. Here are three reasons why SFBS doesn't excite us and a stock we'd rather own. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. ServisFirst Bancshares's net interest income has grown at a 7.3% annualized rate over the last four years, slightly worse than the broader bank industry. Net interest margin represents how much a bank earns in relation to its outstanding loans. It's one of the most important metrics to track because it shows how a bank's loans are performing and whether it has the ability to command higher premiums for its services. Over the past two years, ServisFirst Bancshares's net interest margin averaged 2.8%. Its margin also contracted by 50 basis points (100 basis points = 1 percentage point) over that period. This decline was a headwind for its net interest income. While prevailing rates are a major determinant of net interest margin changes over time, the decline could mean ServisFirst Bancshares either faced competition for loans and deposits or experienced a negative mix shift in its balance sheet composition. Leverage is core to the bank's business model (loans funded by deposits) and to ensure their stability, regulators require certain levels of capital and liquidity, focusing on a bank's Tier 1 capital ratio. Tier 1 capital is the highest-quality capital that a bank holds, consisting primarily of common stock and retained earnings, but also physical gold. It serves as the primary cushion against losses and is the first line of defense in times of financial distress. This capital is divided by risk-weighted assets to derive the Tier 1 capital ratio. Risk-weighted means that cash and US treasury securities are assigned little risk while unsecured consumer loans and equity investments get much higher risk weights, for example. New regulation after the 2008 financial crisis requires that all banks must maintain a Tier 1 capital ratio greater than 4.5% On top of this, there are additional buffers based on scale, risk profile, and other regulatory classifications, so that at the end of the day, banks generally must maintain a 7-10% ratio at minimum. Over the last two years, ServisFirst Bancshares has averaged a Tier 1 capital ratio of 11%, which is considered unsafe in the event of a black swan or if macro or market conditions suddenly deteriorate. For this reason alone, we will be crossing it off our shopping list. ServisFirst Bancshares isn't a terrible business, but it isn't one of our picks. With its shares underperforming the market lately, the stock trades at 2.4× forward P/B (or $81.34 per share). This valuation tells us a lot of optimism is priced in - we think there are better stocks to buy right now. We'd suggest looking at one of our top digital advertising picks. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
23-06-2025
- Business
- Yahoo
SFBS Q1 Deep Dive: Loan and Deposit Growth Offset Margin Pressures Amid Credit Transition
Regional banking company ServisFirst Bancshares (NYSE:SFBS) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 18.3% year on year to $131.8 million. Its non-GAAP profit of $1.16 per share was 2% below analysts' consensus estimates. Is now the time to buy SFBS? Find out in our full research report (it's free). Revenue: $131.8 million vs analyst estimates of $134.1 million (18.3% year-on-year growth, 1.7% miss) Adjusted EPS: $1.16 vs analyst expectations of $1.18 (2% miss) Adjusted Operating Income: $79.09 million vs analyst estimates of $86.91 million (60% margin, 9% miss) Market Capitalization: $3.98 billion ServisFirst Bancshares began 2025 with revenue and non-GAAP earnings that came in just below Wall Street's expectations, while still achieving notable year-over-year growth. Management pointed to robust loan and deposit expansion as a primary driver, especially in municipal and correspondent accounts, and highlighted that loan growth was broad-based across geographies and business types. CEO Tom Broughton called out a 'solid start to the year,' emphasizing the company's success in growing both new and core market relationships. The quarter also saw higher charge-offs and a moderate increase in nonperforming assets, with most of the uptick traced to a small number of medical-related relationships, which management noted were not speculative real estate loans. Looking ahead, ServisFirst's outlook hinges on maintaining momentum in loan growth, normalizing deposit trends as municipal funds recede, and managing net interest margin as cash balances decline. Management expects some deposit runoff in the coming quarters, which should help reduce funding costs and support margin improvement. CFO David Sparacio stated, 'We expect those cash balances to come down over the next few months,' indicating a likely positive effect on net interest margin. The company also anticipates continued opportunities for loan repricing and portfolio growth, while remaining cautious about economic uncertainties and potential headwinds from credit quality normalization. Management attributed the quarter's performance to above-average loan and deposit growth, a focus on expense discipline, and careful credit management, while also noting the impact of higher cash balances on margins. Loan portfolio expansion: The company saw annualized loan growth of 9% in the first quarter, with a diverse mix across new and existing markets. Management described the pipeline as 'up 10% from January,' and characterized growth as granular rather than dependent on large single deals. Deposit growth dynamics: Strong deposit inflows were concentrated in municipal and correspondent accounts, partially aided by lingering COVID-related government funds. Management noted this trend is atypical for the first quarter and expects some runoff later in the year. Margin dilution from liquidity: Elevated cash balances at the Federal Reserve, which increased by approximately $959 million, diluted net interest margin by six basis points. Management anticipates these balances will decline and help margins recover over time. Stable operating expenses: Noninterest expense was down compared to the prior quarter and flat year-over-year, reflecting ongoing cost control. The efficiency ratio remained below 35%, despite a one-time operational loss and seasonal payroll fluctuations. Credit quality normalization: Charge-offs rose to pre-pandemic levels, and nonperforming assets increased, mostly linked to two specific medical-related borrowers. The company took aggressive action on impaired loans, aiming to position the credit portfolio for improved performance in future quarters. Management expects continued loan growth, normalization of deposit mix, and disciplined expense management to shape results this year, while monitoring credit quality and external economic conditions. Deposit runoff and margin improvement: As municipal and correspondent deposits decline, management believes funding costs will decrease and net interest margins will improve, supported by a gradual reduction in excess cash balances held at the Federal Reserve. Loan repricing and growth: The company anticipates over $1.9 billion in assets will reprice within the next twelve months, creating opportunities to enhance yield. Management remains focused on organic growth in both core and newer markets, despite recognizing the potential for some loan payoffs to temper overall growth rates. Credit and economic uncertainties: While management is optimistic about continued business expansion, they remain cautious about external risks, including economic slowdowns and potential normalization of credit performance. The recent uptick in charge-offs and nonperforming assets will be monitored closely. In upcoming quarters, the StockStory team will be tracking (1) the pace at which municipal and correspondent deposits run off and the resulting impact on funding costs and margin, (2) progress on repricing and growing the loan portfolio in both existing and new markets, and (3) trends in credit quality as the company manages through higher charge-offs and nonperforming assets. The hiring of new producers and any expansion into additional markets will also be important milestones. ServisFirst Bancshares currently trades at $74.88, down from $77.62 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Washington Post
21-04-2025
- Business
- Washington Post
ServisFirst: Q1 Earnings Snapshot
BIRMINGHAM, Ala. — BIRMINGHAM, Ala. — ServisFirst Bancshares Inc. (SFBS) on Monday reported earnings of $63.2 million in its first quarter. On a per-share basis, the Birmingham, Alabama-based company said it had profit of $1.16. The holding company for ServisFirst Bank posted revenue of $249.4 million in the period. Its adjusted revenue was $131.8 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on SFBS at
Yahoo
06-03-2025
- Business
- Yahoo
ServisFirst Bancshares Full Year 2024 Earnings: Beats Expectations
Revenue: US$458.7m (up 12% from FY 2023). Net income: US$227.2m (up 9.9% from FY 2023). Profit margin: 50% (in line with FY 2023). EPS: US$4.17 (up from US$3.80 in FY 2023). Net interest margin (NIM): 2.82% (up from 2.81% in FY 2023). Cost-to-income ratio: 37.6% (down from 40.7% in FY 2023). Non-performing loans: 0.34% (up from 0.18% in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 2.0%. In the last 12 months, the only revenue segment was Business and Personal Financial Services contributing US$458.7m. The largest operating expense was General & Administrative costs, amounting to US$148.9m (64% of total expenses). Explore how SFBS's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Banks industry in the US. Performance of the American Banks industry. The company's shares are down 1.6% from a week ago. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for ServisFirst Bancshares that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
