Financial Performance - Net income for Q1 2025 was $63.2 million, a decrease of 3.0% from Q4 2024 but an increase of 26.4% from Q1 2024[4] - Diluted earnings per share for Q1 2025 were $1.16, down 2.5% from Q4 2024 but up 26.1% from Q1 2024[4] - Net income for Q1 2025 reached $63,224,000, compared to $50,026,000 in Q1 2024, reflecting a 26.3% increase[24] - Basic earnings per common share rose to $1.16 in Q1 2025, compared to $0.92 in Q1 2024[27] - Net income available to common stockholders for Q1 2025 was $63,224 thousand, a slight decrease from $65,142 thousand in Q4 2024, showing resilience amid challenging conditions[31] Asset and Deposit Growth - Total deposits increased by $886 million, or 26.3% annualized, from Q4 2024, and by $1.68 billion, or 13.2%, from Q1 2024[11] - Total deposits increased to $14,429,061,000 in Q1 2025, compared to $12,751,448,000 in Q1 2024, a growth of 13.2%[20] - Total assets as of March 31, 2025, were $18,636,766,000, up from $15,721,630,000 a year earlier, indicating a growth of 18.3%[20] - Total assets increased by 19% to $18,636,766 thousand in March 2025 from $15,721,630 thousand in March 2024[26] Loan Performance - Loans grew by $281 million, or 9.0% annualized, from Q4 2024, and by $1.01 billion, or 8.5%, from Q1 2024[10] - Loans increased by 9% to $12,886,831 thousand in Q1 2025 from $11,880,696 thousand in Q1 2024[28] - Interest income from loans increased to $196,936 thousand in Q1 2025, up from $186,978 thousand in Q1 2024[27] Credit Quality and Provisions - Non-performing assets to total assets were 0.40%, an increase from 0.22% in Q1 2024[12] - The allowance for credit losses as a percentage of total loans was 1.28% as of March 31, 2025[12] - The provision for credit losses was $6,630,000 in Q1 2025, compared to $4,535,000 in Q1 2024, indicating a cautious approach to credit risk management[20] - Nonperforming loans to total loans ratio increased to 0.57% in Q1 2025 from 0.34% in Q4 2024, indicating a rise in troubled loans[29] - Net charge-offs increased to $5,894 thousand in Q1 2025 from $2,695 thousand in Q4 2024, highlighting a significant rise in loan defaults[29] Income and Expense Analysis - Net interest income for Q1 2025 was $123.6 million, compared to $102.5 million in Q1 2024[9] - Non-interest income decreased by $631,000, or 7.1%, to $8.3 million for Q1 2025 compared to Q1 2024[13] - Non-interest expense decreased by $124,000, or 0.3%, to $46.1 million for Q1 2025 compared to Q1 2024[14] - Salary and benefit expense decreased by $107,000, or 0.5%, to $22.9 million for Q1 2025 from $23.0 million in Q1 2024[14] Efficiency and Profitability Ratios - Return on average common stockholders' equity was 15.63%, up from 13.82% in Q1 2024[8] - The efficiency ratio improved to 34.97% in Q1 2025 from 43.30% in Q1 2024[14] - Return on average assets for Q1 2025 was 1.45%, an increase from 1.26% in Q1 2024, indicating improved profitability[24] Market Expansion and Strategic Initiatives - Management is exploring opportunities for new market expansions in the Southeast[3]

Financial Data and Key Metrics Changes - The company reported net interest income of $123.5 million, which is $21 million higher than the first quarter of 2024 and slightly higher than the fourth quarter of 2024 [3] - Tangible book value increased by 3% since last quarter and 13% year-over-year, ending at $30.31 per share [2] - The common equity Tier 1 capital ratio stood at 11.4% and the risk-based capital ratio at 12.9% for the quarter [2] - The provision expense was $6.6 million, up $2.1 million from the first quarter of 2024 and $900,000 from the fourth quarter [6] - The allowance for credit losses ended the quarter at just over $165 million, an increase of about $576,000 from the fourth quarter [7] Business Line Data and Key Metrics Changes - Non-interest income decreased by about 7% compared to the first quarter of 2024, primarily due to a one-time benefit recorded in 2024, but normalized rates showed a 7% increase driven by higher service charges on deposit accounts [8] - Non-interest expense was down $789,000 compared to the fourth quarter of 2024 and flat compared to the first quarter of 2024, reflecting expense discipline despite a 5% growth in employee numbers [10] Market Data and Key Metrics Changes - The loan-to-deposit ratio stands at 89%, with an adjusted ratio of 77% when including correspondent Fed funds purchased [1] - The company anticipates over $1.9 billion in asset repricing over the next 12 months [6] Company Strategy and Development Direction - The company is focused on organic loan and deposit growth, priced competitively and profitably, with expectations of loan growth in low double digits [12][36] - There is an ongoing evaluation of new producers and potential hires to support expansion efforts [45] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the durability of Main Street compared to Wall Street, indicating a mixed impact from current market uncertainties [26] - The company does not foresee significant impacts from tariffs and remains optimistic about the balance of the year [28][32] Other Important Information - The company experienced a significant increase in Fed balances, averaging $380 million, which aids liquidity but negatively impacts margin calculations [2][4] - The company is looking for additional avenues to improve income without increasing risk, given the excess liquidity [61] Q&A Session Summary Question: How does the company view deposit trends for the rest of the year? - Management indicated that municipal deposits may decline as the year progresses, with correspondent balances leveling off after tax season [21][22] Question: What is the outlook for loan growth and demand post-pandemic? - Management noted a potential slowdown but remains optimistic about steady, granular growth across various markets [26][38] Question: What is the current loan pricing dynamic? - Loan pricing has remained steady, but management expressed dissatisfaction with current pricing levels, indicating they should be higher [43] Question: What is the expected range for non-interest expenses for the remainder of the year? - Non-interest expenses are expected to be in the range of $46 to $46.5 million, excluding potential new hires [45] Question: Can you provide details on non-performing loans? - Non-performing loans are primarily in the medical sector, including a hospital and a doctor with cash flow issues but good collateral [48][52]

Financial Data and Key Metrics Changes - The company reported net interest income of $123.5 million, which is $21 million higher than the first quarter of 2024 and slightly higher than the fourth quarter of 2024 [3] - Tangible book value increased by 3% since the last quarter and 13% year-over-year, ending at $30.31 per share [2] - The common equity Tier 1 capital ratio stood at 11.4% and the risk-based capital ratio at 12.9% for the quarter [2] - The provision expense was $6.6 million, up $2.1 million from the first quarter of 2024 and $900,000 from the fourth quarter [6] - The allowance for credit losses ended the quarter at just over $165 million, an increase of about $576,000 from the fourth quarter [7] Business Line Data and Key Metrics Changes - Non-interest income decreased by about 7% compared to the first quarter of 2024, primarily due to a one-time benefit recorded in 2024 [8] - However, on a normalized basis, non-interest income increased by about 7% compared to the first quarter of 2024, driven by higher service charges on deposit accounts [8] - Non-interest expense was down $789,000 compared to the fourth quarter of 2024 and flat compared to the first quarter of 2024 [10] Market Data and Key Metrics Changes - The loan-to-deposit ratio stands at 89%, with an adjusted ratio of 77% when including correspondent Fed funds purchased [1] - The company anticipates over $1.9 billion in asset repricing over the next 12 months [6] Company Strategy and Development Direction - The company continues to focus on organic loan and deposit growth, priced competitively and profitably [12] - Management expressed optimism about the balance of the year, noting that the commercial real estate transactions need short-term interest rates to decrease for improvement [27] - The company is looking for additional levers to improve income without increasing risk, considering deploying excess liquidity [61] Management Comments on Operating Environment and Future Outlook - Management noted a potential slowdown in loan demand but emphasized the resilience of Main Street compared to Wall Street [26] - There is no significant impact from tariffs observed, and management remains optimistic about the overall economic environment [28][32] - The company expects cash balances to decrease over the next few months, which may positively impact net interest margin [24] Other Important Information - The company experienced a seasonal spike in payroll taxes in the first quarter, but payroll expenses were down about 5% compared to the fourth quarter due to adjustments in incentive plan payouts [10] - The efficiency ratio was reported below 35%, reflecting strong expense discipline [11] Q&A Session Summary Question: How does the company view deposit trends for the rest of the year? - Management indicated that municipal deposits may decline as the year progresses, with correspondent balances leveling off after tax season [21][22] Question: What is the outlook for net interest margin (NIM)? - Management expects cash balances to decrease, which may help improve NIM as the balance sheet remixes [23][24] Question: What is the company's perspective on loan growth and pipeline demand? - Management remains optimistic about loan growth, noting steady and granular growth across various markets [38][39] Question: How are loan pricing dynamics evolving? - Loan pricing has remained steady, but management expressed concerns that current pricing levels should be higher [42][43] Question: What is the expected trend for operating expenses? - Operating expenses are projected to remain in the range of $46 to $46.5 million, excluding potential new hires [44][45] Question: Can you provide details on non-performing loans? - Non-performing loans are primarily in the medical sector, with good collateral backing them [48][52]

Financial Performance - Net income available to common stockholders increased by 9.9% to $227.2 million in 2024 from $206.8 million in 2023[256] - Return on average assets improved to 1.39% in 2024 from 1.37% in 2023[259] - Return on average stockholders' equity decreased slightly to 14.98% in 2024 from 15.13% in 2023[259] - Stockholders' equity grew by $176.4 million to $1.62 billion in 2024, driven by net income of $227.2 million[315] Loan and Deposit Growth - Average loans rose by 4.7% to $12.15 billion in 2024, with an increase of $548.0 million[258] - Average deposits increased by 7.7% to $13.20 billion in 2024, reflecting a growth of $940.0 million[258] - Total loans outstanding reached $12,605,836 thousand, an increase from $11,658,829 thousand in 2023[299] - Commitments to extend credit increased to $3.55 billion in 2024 from $3.41 billion in 2023, reflecting a 4.2% rise[319] Interest Income and Margin - Net interest income grew by 8.7% to $446.7 million in 2024, driven by an increase in both the average balance and rate on interest-earning assets[258] - Net interest margin increased by one basis point to 2.82% in 2024[258] - Total interest-earning assets generated $946.1 million in interest income in 2024, compared to $813.4 million in 2023[274] - The increase in net interest income was primarily driven by a $88.8 million increase in interest earned from loans[273] Noninterest Income and Expenses - Noninterest income increased by 15.3% to $35.1 million in 2024, primarily due to higher mortgage banking income and bank-owned life insurance income[258] - Noninterest expense rose by 1.7% to $181.1 million in 2024, mainly due to higher salaries and third-party processing expenses[258] - Total noninterest expenses rose by $3.1 million, or 1.7%, to $181.1 million for the year ended December 31, 2024, primarily due to a 19.0% increase in salaries and employee benefits[282] Credit Losses and Nonperforming Loans - Provision for credit losses increased by 15.3% to $21.6 million in 2024 from $18.7 million in 2023[257] - Nonaccrual loans increased to $39,501 thousand, representing 0.31% of total loans, up from 0.17% in 2023[300] - Total nonperforming assets rose to $45.0 million in 2024, up 99% from $22.5 million in 2023[308] - The ratio of nonperforming loans to total loans increased to 0.34% in 2024 from 0.18% in 2023[308] Asset and Liability Management - Total assets increased by $1.22 billion, or 7.6%, to $17.35 billion as of December 31, 2024, with total loans rising by $947.0 million, or 8.1%[286] - The Bank's liquidity position included $2.73 billion in liquid assets as of December 31, 2024[329] - The interest rate sensitivity gap is monitored, with a requirement that net interest margins will not change more than 10% if interest rates change by 100 basis points[344] - The asset liability committee conducts quarterly analyses of rate sensitivity, reporting findings to the Board of Directors[351] Investment Portfolio - The investment portfolio's amortized cost totaled $1.92 billion at December 31, 2024, down from $1.95 billion at December 31, 2023[290] - The total amount of securities available for sale was $1.21 billion, with U.S. Treasury Securities comprising $617.35 million[291] - The company’s mortgage-backed securities had a weighted average yield of 2.25% for total securities available for sale[291] - The investment policy aims to balance market and credit risks while ensuring liquidity to meet loan demand[293] Economic Outlook - The company expects a more favorable economic outlook, including lower unemployment rates and projected GDP growth compared to 2023[300] - The Federal Reserve increased its targeted federal funds rate by 525 basis points, ending 2024 at 5.40%[347]

Core Insights - ServisFirst Bancshares reported a revenue of $131.97 million for Q4 2024, marking a 21% increase year-over-year and exceeding the Zacks Consensus Estimate by 4.35% [1] - The company's EPS for the quarter was $1.19, up from $0.91 in the same quarter last year, representing an EPS surprise of 8.18% over the consensus estimate of $1.10 [1] Financial Performance Metrics - Efficiency Ratio was reported at 35.5%, better than the estimated 36% [4] - Net charge-offs to total average loans remained stable at 0.1%, matching analyst estimates [4] - Net Interest Margin was 3%, surpassing the average estimate of 2.9% [4] - Average Balance of Interest-earning Assets was $16.53 billion, exceeding the estimated $16.27 billion [4] - Net Interest Income reached $123.17 million, above the average estimate of $118.18 million [4] - Total Non-interest Income was $8.80 million, higher than the estimated $8.29 million [4] - Credit card income was reported at $1.87 million, below the estimated $2.21 million [4] - Service charges on deposit accounts totaled $2.65 million, exceeding the estimated $2.32 million [4] - Mortgage banking income was $1.51 million, significantly higher than the estimated $0.89 million [4] - Other Operating Income was $0.64 million, below the estimated $0.81 million [4] Stock Performance - ServisFirst shares have returned +2% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

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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