ServisFirst Bancshares (SFBS) AI Stock Analysis

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ServisFirst Bancshares

(NYSE:SFBS)

70Outperform

ServisFirst Bancshares demonstrates strong financial health and strategic management, contributing positively to the overall score. Key risks include operational margin volatility and bearish technical trends, which temper the positive outlook from recent earnings and corporate events.

ServisFirst Bancshares (SFBS) vs. S&P 500 (SPY)

Market Cap

$4.22B

Dividend Yield1.65%

Average Volume (3M)240.49K

Price to Earnings (P/E)17.5

Beta (1Y)1.22

Revenue Growth11.59%

EPS Growth20.69%

CountryUS

Employees636

SectorFinancial

Sector Strength85

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.16

Shares Outstanding54,612,060

10 Day Avg. Volume153,131

30 Day Avg. Volume240,487

Financial Highlights & Ratios

PEG Ratio2.94

Price to Book (P/B)2.44

Price to Sales (P/S)0.00

P/FCF Ratio16.03

Enterprise Value/Market Cap1.54

Enterprise Value/Revenue2.02

Enterprise Value/Gross Profit9.33

Enterprise Value/Ebitda2.01K

Forecast

1Y Price Target

$84.00

Price Target Upside8.81% Upside

Rating ConsensusHold

Number of Analyst Covering2

ServisFirst Bancshares Business Overview & Revenue Model

Company DescriptionServisFirst Bancshares, Inc. (SFBS) is a financial services company headquartered in Birmingham, Alabama. It operates primarily through its wholly-owned subsidiary, ServisFirst Bank, which provides a range of banking products and services. The company focuses on offering commercial banking services, including deposit accounts, treasury management, and lending solutions to small and medium-sized businesses, as well as personal banking services to individuals. ServisFirst Bancshares serves customers through a network of branch locations primarily in the southeastern United States.

How the Company Makes MoneyServisFirst Bancshares generates revenue through a variety of banking-related activities. A significant portion of its income comes from interest earned on loans and advances provided to businesses and individual customers. Additionally, the company earns revenue from fees and service charges associated with deposit accounts, treasury management services, and other banking services. ServisFirst Bancshares also benefits from investment securities income, which includes interest and dividends from securities held in its portfolio. The company's profitability is influenced by its ability to manage interest rate spreads and control credit risk, while maintaining efficient operational costs. Strategic partnerships with other financial services providers and a strong regional presence are significant factors contributing to its earnings.

ServisFirst Bancshares Financial Statement Overview

Summary

ServisFirst Bancshares shows strong revenue growth and stable profitability with a robust balance sheet, highlighted by zero debt. However, there is some volatility in operational efficiency and cash flow management.

Income Statement

Positive

ServisFirst Bancshares has demonstrated strong revenue growth over the years, with a significant increase from $368 million in 2020 to $946 million in 2024. The gross profit margin has remained solid as it mirrors the total revenue, reflecting effective cost management. However, the EBIT margin has shown volatility with a notable drop in 2024, indicating potential challenges in operational efficiency. Net profit margin has been stable, indicating consistent profitability.

Balance Sheet

Positive

The company's balance sheet is robust with a zero debt position in 2024, highlighting strong financial stability. The equity ratio has increased over time, showing a solid capital base and reduced financial risk. Return on Equity (ROE) has been positive, reflecting efficient use of shareholders' funds. However, the bank's high asset base necessitates continuous monitoring to maintain this stability.

Cash Flow

Positive

ServisFirst has maintained positive operating cash flows, ensuring liquidity for operations. Free cash flow is strong, although its growth rate has fluctuated, showing potential instability in cash generation. The operating cash flow to net income ratio indicates efficient earnings conversion into cash. However, the significant investing cash outflows compared to financing activities suggest aggressive expansion strategies that warrant careful management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
477.66M	410.59M	504.25M	417.95M	368.15M
	Gross Profit
477.66M	377.24M	473.18M	390.80M	352.66M
	EBIT
281.13M	280.77M	397.19M	253.35M	214.21M
	EBITDA
0.00	0.00	12.66M	4.66M	1.61M
	Net Income Common Stockholders
227.24M	206.85M	251.50M	207.73M	169.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.28B	2.13B	751.13M	5.01B	3.10B
	Total Assets
17.35B	16.13B	14.60B	15.45B	11.93B
	Total Debt
64.74M	64.73M	64.73M	64.71M	64.75M
	Net Debt
-2.31B	-1.97B	-749.81M	-4.10B	-2.14B
	Total Liabilities
15.73B	14.69B	13.30B	14.30B	10.94B
	Stockholders Equity
1.62B	1.44B	1.30B	1.15B	992.35M
Cash Flow		Free Cash Flow
248.27M	193.39M	268.98M	256.88M	188.99M
	Operating Cash Flow
252.91M	197.30M	272.63M	266.33M	191.29M
	Investing Cash Flow
-948.53M	-200.43M	-2.64B	-1.56B	-1.41B
	Financing Cash Flow
941.16M	1.32B	-1.04B	3.31B	2.80B

ServisFirst Bancshares Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price77.20

Price Trends

50DMA

76.21

Positive

100DMA

81.98

Negative

200DMA

82.79

Negative

Market Momentum

MACD

0.73

Negative

RSI

57.40

Neutral

STOCH

70.96

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFBS, the sentiment is Neutral. The current price of 77.2 is above the 20-day moving average (MA) of 73.67, above the 50-day MA of 76.21, and below the 200-day MA of 82.79, indicating a neutral trend. The MACD of 0.73 indicates Negative momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 70.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SFBS.

ServisFirst Bancshares Risk Analysis

ServisFirst Bancshares disclosed 40 risk factors in its most recent earnings report. ServisFirst Bancshares reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

ServisFirst Bancshares Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBOC	80 Outperform	$4.05B	9.94	15.20%	2.08%	4.24%	0.38%
OZK	79 Outperform	$5.32B	7.68	12.85%	3.54%	13.85%	2.43%
FNB	76 Outperform	$5.19B	11.38	7.40%	3.33%	10.18%	2.27%
HWC	75 Outperform	$4.86B	10.48	11.53%	2.91%	-2.86%	―
SFBS	70 Outperform	$4.22B	17.55	15.30%	1.65%	11.59%	20.69%
ABCB	70 Neutral	$4.37B	11.77	10.19%	1.10%	9.14%	31.69%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%

* Financial Sector Average

Performance Comparison

SFBS

ServisFirst Bancshares

77.20

13.15

20.53%

ABCB

Ameris Bancorp

63.45

14.51

29.65%

OZK

Bank OZK

46.93

0.84

1.82%

FNB

F.N.B.

14.43

0.88

6.49%

HWC

Hancock Whitney

56.77

10.93

23.84%

IBOC

International Bancshares

65.21

6.84

11.72%

ServisFirst Bancshares Earnings Call Summary

Earnings Call Date:Apr 21, 2025

(Q1-2025)

% Change Since: 11.08%|

Next Earnings Date:Jul 21, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong start for ServisFirst Bancshares in 2025 with significant loan and deposit growth, improved net income, and effective expense management. However, there were concerns about increased charge-offs, rising NPAs, and margin pressure due to excess liquidity.

Q1-2025 Updates

Positive Updates

Strong Loan and Deposit Growth

Loan growth of 9% annualized in Q1 2025 with the pipeline up 10% from January. Strong deposit growth, particularly in municipal and correspondent deposits, was also noted.

Solid Financial Performance

Reported net income of $63.2 million, a 26% increase from Q1 2024. Return on average assets was 1.45% and return on common equity was 15.63%.

Asset and Capital Growth

Total assets grew by nearly $1.3 billion from December 31st, 2024, ending at $18.6 billion, reflecting 19% growth from March 31st, 2024. Common equity Tier 1 capital ratio was at 11.4%.

Expense Management

Noninterest expense was down $789,000 compared to Q4 2024, achieving an efficiency ratio below 35%.

Negative Updates

Increased Charge-offs and NPAs

Charge-offs were higher than desired at an annualized rate of 19 basis points for Q1 2025. NPAs increased, largely due to two specific relationships.

Slight Decrease in Allowance Ratio

Allowance ratio dropped from 1.30% in Q4 2024 to 1.28% in Q1 2025, despite an increase in loan balances.

Margin Pressure

Net interest margin was diluted by high cash balances at the Fed, reducing the margin by six basis points.

Company Guidance

During the ServisFirst Bancshares, Inc. first quarter earnings call, the company provided several key performance metrics and projections for the fiscal year 2025. The company reported a net income of $63.2 million and a diluted earnings per share of $1.16, alongside a pre-provision net revenue of $85.7 million. The return on average assets was noted at 1.45%, while the return on common equity stood at 15.63%. The company's total assets grew by nearly $1.3 billion since December 31, reaching $18.6 billion, which represents a 19% growth from March 31, 2024. The company achieved an annualized loan growth of 9%, with a loan pipeline increase of 10% from January, despite some projected payoffs similar to the previous quarter. Notably, the allowance for credit losses ended the quarter at just over $106.65 million. Additionally, ServisFirst maintained a common equity Tier 1 capital ratio of 11.4% and a risk-based capital ratio of 12.9%. The net interest margin was slightly diluted due to higher cash balances at the Fed, which impacted it by six basis points. Looking ahead, the company anticipates over $1.9 billion in asset repricing over the next twelve months, with $1.5 billion projected cash flow from fixed-rate loans and $100 million from mortgage-backed securities paydowns. The company also reported a noninterest expense range expectation of $46 million to $46.5 million for the remainder of 2025, with a focus on continued organic loan and deposit growth.

ServisFirst Bancshares Corporate Events

Executive/Board Changes

ServisFirst Bancshares Appoints New Chief Credit Officer

Positive

Apr 21, 2025

On April 21, 2025, ServisFirst Bancshares announced the appointment of Jim Harper as Senior Vice President and Chief Credit Officer of ServisFirst Bank, effective immediately. Harper, who has over 20 years of experience in credit risk and portfolio management, previously held senior credit roles at Cadence Bank and other financial institutions. His appointment is expected to strengthen the bank’s credit platform and support its continued growth and prudent lending practices. The current Chief Credit Officer, Henry Abbott, will transition to a consulting role to assist with the transition.

Spark’s Take on SFBS Stock

According to Spark, TipRanks’ AI Analyst, SFBS is a Outperform.

ServisFirst Bancshares exhibits strong financial performance, positive earnings call highlights, and promising corporate events. However, technical indicators show bearish trends, and valuation suggests moderate investor value. Attention to operational margins and cash flow is crucial to sustain growth.

To see Spark’s full report on SFBS stock, click here.

Business Operations and StrategyFinancial Disclosures

ServisFirst Bancshares Reports Strong Q1 2025 Earnings

Positive

Apr 21, 2025

On April 21, 2025, ServisFirst Bancshares announced its first quarter earnings for 2025, reporting a 26.1% increase in diluted earnings per share compared to the same period in 2024. The company experienced significant growth in deposits and loans, with deposits increasing by $886 million and loans by $281 million during the quarter. The bank’s liquidity remains strong with $3.3 billion in cash, and its capital ratios have improved, indicating a robust financial position. The management highlighted opportunities for new customer relationships and market expansions in the Southeast, reflecting a positive outlook for future growth.

Spark’s Take on SFBS Stock

According to Spark, TipRanks’ AI Analyst, SFBS is a Outperform.

To see Spark’s full report on SFBS stock, click here.

Business Operations and StrategyFinancial Disclosures

ServisFirst Bancshares Updates Investor Presentation for 2024

Positive

Mar 28, 2025

ServisFirst Bancshares, Inc. has updated its investor presentation to reflect current quarter financial information, which will be used in discussions with investors. The company has demonstrated consistent growth, with total assets reaching $17.35 billion as of December 31, 2024, and a strong focus on maintaining pristine credit metrics and shareholder value. The updated presentation highlights the company’s strategic focus on opportunistic expansion in southern metropolitan markets and its commitment to providing professional banking services to mid-market commercial customers.

Executive/Board Changes

ServisFirst Bancshares Appoints New CFO Sparacio

Positive

Feb 19, 2025

On February 18, 2025, ServisFirst Bancshares announced the appointment of David Sparacio as Executive Vice President and Chief Financial Officer of ServisFirst Bank, effective March 10, 2025. Sparacio, a seasoned financial executive with extensive experience in banking and financial management, previously held key positions at Ameris Bank and IBERIABANK. His appointment follows an extensive nationwide search, and his expertise is expected to advance the bank’s financial strategy and support its growth. Ed Woodie, who served as interim CFO, will continue as Senior Vice President and Controller.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.