Core Viewpoint - ServisFirst Bancshares reported quarterly earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $1.10 per share, and showing an increase from $0.91 per share a year ago, indicating strong financial performance [1][2] Financial Performance - The company achieved revenues of $131.97 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.35% and up from $109.07 million year-over-year [2] - Over the last four quarters, ServisFirst has consistently exceeded consensus EPS estimates, achieving this four times [2] Stock Performance - ServisFirst shares have increased approximately 4.3% since the beginning of the year, outperforming the S&P 500's gain of 3.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.11, with expected revenues of $128.71 million, and for the current fiscal year, the estimate is $5.01 on revenues of $560.29 million [7] Industry Outlook - The Financial - Savings and Loan industry, to which ServisFirst belongs, is currently ranked in the top 11% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Financial Performance - Net income for Q4 2024 was $65.2 million, an increase of 8.8% from Q3 2024 and 54.9% from Q4 2023[4] - Diluted earnings per share for Q4 2024 were $1.19, up 8.2% from Q3 2024 and 54.5% from Q4 2023[5] - Net income available to common stockholders rose to $65.1 million in Q4 2024, compared to $42.0 million in Q4 2023[20] - The company reported a net income of $227,242 thousand for the year ended 2024, an increase of 9.8% from $206,853 thousand in 2023[26] - Basic earnings per common share for Q4 2024 was $1.19, a 54.5% increase from $0.77 in Q4 2023[26] Revenue and Income Sources - Net interest income increased by $8.0 million, or 28% annualized, during Q4 2024[5] - Non-interest income rose by $1.4 million, or 19.3%, to $8.8 million in Q4 2024 compared to Q4 2023[13] - Total interest income for Q4 2024 was $243,892 thousand, an increase of 6.4% from $229,062 thousand in Q4 2023[26] - Total non-interest income for the year ended 2024 was $35,056 thousand, up 15.5% from $30,417 thousand in 2023[26] Asset and Liability Management - Total assets reached $17.35 billion in Q4 2024, up from $16.13 billion in Q4 2023[20] - Total deposits grew by $397 million, or 12% annualized, during Q4 2024[5] - Loans increased to $12.61 billion in Q4 2024, compared to $11.66 billion in Q4 2023[20] - Average total deposits for Q4 2024 were $13.48 billion, an increase of 1.9% from Q4 2023[11] Efficiency and Cost Management - Non-interest expense decreased by $11.4 million, or 19.5%, to $46.9 million in Q4 2024 compared to Q4 2023[14] - The efficiency ratio improved to 35.54% in Q4 2024 from 55.23% in Q4 2023[14] - Total non-interest expense for Q4 2024 was $46,896 thousand, slightly higher than $45,632 thousand in Q3 2024, indicating a 2.8% increase[29] Credit Quality and Provisions - Non-performing assets to total assets were 0.26% for Q4 2024, compared to 0.14% for Q4 2023[12] - The allowance for credit losses to total loans remained stable at 1.30% in Q4 2024, consistent with Q3 2024[28] - Provision for credit losses for Q4 2024 was $6,398 thousand, compared to $5,435 thousand in Q3 2024, reflecting an increase in credit loss provisions[28] Stockholder Equity and Book Value - Book value per share reached $29.63, up 12.0% from Q4 2023[5] - Tangible common stockholders' equity was reported at $1.603 billion as of December 31, 2024, an increase from $1.426 billion in 2023[23] - The company experienced a 12% increase in total stockholders' equity, reaching $1.617 billion as of December 31, 2024, up from $1.440 billion in 2023[25] Market Position and Strategic Initiatives - The company is focused on enhancing its market position through strategic initiatives and product development[31]

Core Viewpoint - Wall Street analysts forecast a strong quarterly performance for ServisFirst Bancshares, with expected earnings per share (EPS) of $1.10, reflecting a year-over-year increase of 20.9%, and revenues projected at $126.47 million, up 16% from the previous year [1]. Financial Projections - The consensus EPS estimate has remained stable over the last 30 days, indicating that analysts have not revised their initial earnings projections during this period [2]. - Analysts emphasize the importance of earnings estimate revisions as a predictor of investor behavior and stock price performance [3]. Key Metrics - The 'Efficiency Ratio' is projected to improve to 36.0%, significantly down from 55.2% in the same quarter last year [4]. - The 'Average Balance - Interest-earning Assets' is estimated to reach $16.27 billion, compared to $15.68 billion a year ago [5]. - 'Net Interest Income' is expected to be $118.18 million, an increase from $101.69 million reported in the same quarter last year [5]. - The estimated 'Total Non-interest Income' is projected at $8.29 million, up from $7.38 million a year ago [6]. Stock Performance - ServisFirst shares have increased by 3.7% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.1% [7].

Core Viewpoint - ServisFirst Bancshares, Inc. has approved a quarterly dividend increase to 34 cents per share, reflecting a 12% rise from the previous payout, to be distributed on January 10, 2025 [1] Dividend History and Growth - The company has consistently increased its dividend annually since 2014, with a prior increase of 7.1% to 30 cents per share in December 2023 [2] - ServisFirst has a five-year annualized dividend growth rate of 14.58%, and its current payout ratio stands at 31% of earnings [2] Current Financial Metrics - As of December 16, 2024, the closing price of SFBS shares was $94.41, resulting in a current dividend yield of 1.42% [3] - The company's total debt was $1.61 billion, while cash and cash equivalents amounted to $1.76 billion as of September 30, 2024, indicating a strong balance sheet [4] - The bank's capital ratios as of September 30, 2024, include a Tier 1 capital to average assets ratio of 9.54%, common equity tier 1 capital to risk-weighted assets of 10.91%, and total capital to risk-weighted assets of 12.77% [5] Operational Strength and Market Performance - The consistent dividend hikes demonstrate the company's operational strength and commitment to shareholder returns, which enhances shareholder confidence [6] - Over the past six months, shares of ServisFirst have increased by 57%, outperforming the industry growth of 33.5% [9] - SFBS currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [10]

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Financial Data and Key Metrics - Net income increased by approximately 15% from the second quarter, with diluted EPS remaining stable [11] - Net interest margin (NIM) increased by 9% to $115 million in Q3, up from $106 million in Q2 [11] - Yield on interest-earning assets rose by 11 basis points, while the rate paid on interest-bearing liabilities increased by only 3 basis points [12] - The loan loss reserve increased by $4 million, bringing the reserve to total loans ratio to 1.31%, consistent with Q1 2024 and the same period in 2023 [9] - A special Hurricane Helene reserve of $2.7 million was created [9] Business Line Performance - Loan demand was robust in the hospitality segment, but exposure limits were maintained [4] - Early loan payoffs totaled $126 million at an average rate of 4.89%, benefiting shareholders [3] - Repricing of $105 million in low-rate fixed loans contributed to improved margins [3] - Deposit fees increased each quarter, with mortgage fee income also rising in Q3 [16] - Credit card net revenue decreased modestly but is expected to normalize in Q4 [16] Market Performance - Loan growth was strong in Q2 but stalled in Q3 due to election-related delays and uncertainty around Fed rate cuts [3][4] - The Memphis and Auburn markets showed progress, with four new bankers added in Q3, bringing the total to 155 frontline bankers [8] - Non-performing assets (NPA) to total assets remained low at 25 basis points [10] Strategic Direction and Industry Competition - The company is focused on disciplined loan pricing and avoiding broker deposits or Federal Home Loan Bank advances [5] - Competitors are increasing price investments, which is seen as a positive development [5] - The company is expanding into new markets, such as Memphis and Auburn, and expects contributions from recent hires to drive future growth [8][32] Management Commentary on Operating Environment and Future Outlook - Management expects loan demand to rebound in Q4, driven by year-end activity and potential Fed rate cuts [4][8] - The company anticipates higher loan losses in the future but remains optimistic about the economy [6] - The Federal Reserve's 50 basis point rate cut in September was seen as beneficial for customers with debt service challenges [10] Other Important Information - CFO Kirk Pressley announced his resignation for personal reasons, with Ed Woodie named as Interim CFO [14] - The company implemented a new accounting treatment for qualifying tax credits, resulting in some noise in non-interest expenses and income tax [17] - Core operating expenses are expected to remain around $45 million per quarter [41] Q&A Session Summary Question: Loan Pipeline and Growth Outlook - Management expects a decent closing amount in Q4, driven by year-end activity, but does not anticipate matching the exceptional Q2 performance [22][23] - Loan pricing remains consistent, with new loans priced around 8%, though the mix has shifted slightly towards fixed-rate loans [24][25] Question: Credit Quality and Special Mention Loans - A large borrower with a $97 million relationship was downgraded to special mention due to Hurricane Helene-related payment delays, but no significant loss content is expected [28][29][31] Question: Loan Yields and Pricing Trends - Loan yields increased significantly in Q3, driven by repricing and early payoffs, with no one-time factors influencing the results [34][36] - CD pricing is declining, with yields dropping from 5% to 4.25% for six-month CDs, reflecting more rational industry-wide pricing [37] Question: Liquidity and Funding Outlook - Short-term liquidity cash increased in Q3 due to a municipal outflow, but this is expected to normalize as loans are funded in Q4 [39][40] Question: Core Operating Expenses - Core operating expenses are expected to remain around $45 million per quarter, with potential adjustments for annual incentive accruals in Q4 [41]

ServisFirst Bancshares (SFBS) reported $123.67 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 14.7%. EPS of $1.10 for the same period compares to $0.98 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $120.7 million, representing a surprise of +2.46%. The company delivered an EPS surprise of +13.40%, with the consensus EPS estimate being $0.97. While investors closely watch year-over-year changes in headline numbers -- revenue a ...

ServisFirst Bancshares (SFBS) came out with quarterly earnings of $1.10 per share, beating the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 13.40%. A quarter ago, it was expected that this holding company for ServisFirst Bank would post earnings of $0.91 per share when it actually produced earnings of $0.95, delivering a surprise of 4.40%. Over ...

In its upcoming report, ServisFirst Bancshares (SFBS) is predicted by Wall Street analysts to post quarterly earnings of $0.97 per share, reflecting a decline of 1% compared to the same period last year. Revenues are forecasted to be $120.7 million, representing a year-over-year increase of 11.9%. The consensus EPS estimate for the quarter has been revised 5.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial est ...

The market expects ServisFirst Bancshares (SFBS) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected ...