ServisFirst Bank net worth and financial performance in 2024 showcase its steady growth and strong market presence.
From rising loans and deposits to expanding into new markets, this analysis by Ando Money gives you an in-depth look at how the bank continues to thrive. Dive into their financials and see what sets them apart.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | ServisFirst Bank |
| Full Name | ServisFirst Bancshares, Inc. |
| Traded as | NYSE: SFBS |
| ISIN | US81768T1088 |
| Founded | 2005 |
| Founders | Tom Broughton |
| Country/Territory | United States |
| Headquarters | Birmingham, Alabama |
| Chief Executive Officer | Tom Broughton |
| Number of Employees | 625 |
| Market Cap | $4.24 Billion |
| Total Assets | $16.05 Billion |
| Total Equity | $1.51 Billion |
| Revenue | N/A |
| Net Income | $52.1 Million (Q2 2024) |
What is the Net Worth/ Market Cap of ServisFirst Bank in 2024?
As of September 2024, ServisFirst Bancshares has a market cap of $4.24 billion. This places the bank among notable mid-sized financial institutions in the U.S.
While this figure is impressive, it’s important to compare it with other players in the banking sector to understand its position.
Some banks, especially those with larger global operations, report market capitalizations that far exceed ServisFirst’s.
However, the bank’s steady performance and regional focus allow it to maintain strong financial health and growth potential.
Other banks similar to ServisFirst Bank:
- Bank of America
- Wells Fargo
- Regions Financial
- Synovus Financial
- Pinnacle Financial Partners
- Truist Financial
- First Horizon
- Citizens Financial Group
For a deeper dive into the largest banks in the world, check out this comprehensive analysis of major financial institutions.
ServisFirst Financial Performance Overview
How Does ServisFirst Generate Revenue?
ServisFirst’s revenue is primarily driven by interest income, which accounts for a large portion of its earnings. This income is generated from the loans it provides, with loan yields reaching 6.48% during the second quarter of 2024.
These loans, ranging from commercial to real estate mortgages, are the backbone of the bank’s revenue streams. Additionally, the net interest margin has shown a steady improvement, standing at 2.79% in Q2 2024.
Another important contributor to revenue is non-interest income, which includes fees from deposit accounts, credit card income, and mortgage banking.
In Q2 2024, the bank saw a 3.6% increase in non-interest income compared to the previous year, signaling diversification in revenue sources.
Loan Portfolio and Its Impact on Growth
Loans are central to the growth of ServisFirst. In 2024, loans grew by 15% annualized from Q1, with a year-over-year increase of 6%, totaling $12.33 billion by the end of the second quarter.
The loan portfolio includes commercial loans, construction loans, and mortgages.
This diversified loan portfolio helps balance risks and maximize returns. The healthy loan growth has been crucial in expanding the bank’s total assets to $16.05 billion.
Deposits and Liquidity
ServisFirst has demonstrated significant growth in its deposits, increasing by 16% annualized in Q2 2024.
Deposits play a vital role in the bank’s financial stability, helping to fund loans and maintain liquidity.
By the end of Q2 2024, total deposits reached $13.26 billion, with a mix of non-interest-bearing and interest-bearing accounts.
The bank maintains robust liquidity, holding over $1.3 billion in cash, allowing it to meet its short-term obligations and support future lending activities.
The balance between deposits and loans is essential to maintain strong liquidity, ensuring the bank can navigate market fluctuations.
Credit Quality
Credit quality remains a strong point for ServisFirst, with non-performing assets making up just 0.23% of total assets.
This figure is a testament to the bank’s prudent risk management strategies. Additionally, provision for credit losses was set at $5.4 million in Q2 2024, reflecting careful monitoring and mitigating of potential risks in the loan portfolio.
The bank’s strong credit quality plays a pivotal role in maintaining profitability, as lower loan defaults and delinquencies allow it to reinvest capital more efficiently.
The creditworthiness of its loan borrowers remains robust, which translates into healthy revenue growth for the bank.
Capital Strength and Stockholder Value
Stockholders’ equity in ServisFirst grew by 2.3% from the previous quarter, reaching $1.51 billion by June 2024.
This growth is largely driven by the increase in earnings and the strategic allocation of resources. The book value per share rose to $27.71, up 11% year-over-year, reflecting solid returns for investors.
Additionally, the bank’s return on equity (ROE) stood at 14.08%, which is a good indicator of its profitability in relation to stockholders’ investments.
This consistent return helps strengthen investor confidence and enhances the overall value of the bank.
Operating Expenses and Efficiency
While revenue has been growing, the bank has kept a close eye on expenses.
Non-interest expenses for Q2 2024 were $42.8 million, a slight decrease from the previous quarter.
Notably, salaries and benefits were the largest expense, totaling $24.2 million, largely due to the growth in the number of employees.
Despite rising operational costs, ServisFirst maintains a competitive efficiency ratio of 37.31%, showcasing its ability to manage expenses relative to its income.
This balance of revenue growth and expense management enables the bank to sustain profitability while continuing its strategic market expansion.
Market Expansion
An exciting development for ServisFirst has been its expansion into the Auburn-Opelika market.
The bank sees this as a significant growth opportunity, with local businesses and individuals in the region contributing to the uptick in both loan and deposit growth.
This move represents ServisFirst’s strategy to penetrate new markets while growing its customer base.
This expansion is expected to play a vital role in the bank’s future growth, helping it maintain its competitive edge in an increasingly volatile financial market.
FAQs about ServisFirst Bank
What is the total market cap of the ServisFirst Bank in 2024?
As of September 2024, the bank’s market capitalization is $4.24 billion.
How does the bank generate revenue?
The bank earns revenue from interest income on loans and non-interest income through deposit fees, credit card transactions, and mortgage banking. Its net interest margin is 2.79% in Q2 2024.
What is the loan portfolio size of the bank?
The bank’s loan portfolio reached $12.33 billion by June 2024, reflecting a 15% annualized growth from Q1.
Where is the ServisFirst Bank headquartered?
The bank is based in Birmingham, Alabama, operating across several states in the Southeastern U.S.
What are the bank’s main growth markets?
The bank is expanding in Auburn-Opelika, Alabama, a market expected to drive future growth in deposits and loans.
How does the bank compare to other regional banks?
It competes with banks like Regions Financial and Pinnacle Financial Partners, focusing on steady loan growth, strong margins, and credit quality.
Conclusion
ServisFirst Bank’s impressive financial performance and market growth make it one to watch.
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