ServisFirst Bancshares, Inc. (SFBS) Bundle
A Brief History of H3
As of 2024, H3 has established itself as a significant player in its industry, marked by various financial milestones and operational developments over the years.
Company Overview
H3 operates primarily in the financial services sector, focusing on providing a range of banking products and services. The company has been publicly traded since its initial public offering (IPO) in 2000 and has consistently shown resilience in a competitive market.
Recent Financial Performance
For the third quarter of 2024, H3 reported net income available to common stockholders of $59.9 million, compared to $53.3 million in the same period of 2023, reflecting a growth of 12.2%. Basic and diluted earnings per share were both $1.10 for the quarter, up from $0.98 in Q3 2023 .
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income | $59.9 million | $53.3 million | +12.2% |
| Earnings per Share (Basic) | $1.10 | $0.98 | +12.2% |
| Total Assets | $16.45 billion | $16.13 billion | +2.0% |
| Total Loans | $12.34 billion | $11.66 billion | +5.8% |
| Total Deposits | $13.15 billion | $13.27 billion | -1.0% |
Operational Highlights
As of September 30, 2024, H3's average loans were $12.37 billion, up 7.0% from the previous year. The company maintained a net interest margin of 2.84%, an increase of 20 basis points from Q3 2023 .
Investment Strategy
H3's investment securities portfolio as of September 30, 2024, included debt securities available-for-sale totaling $1.14 billion, compared to $900.2 million at the end of 2023 .
Dividends and Shareholder Returns
In 2024, H3 declared common dividends of $0.30 per share, totaling $16.4 million for the quarter .
Future Outlook
H3 is poised for continued growth, supported by strong operational metrics and strategic investments. The company remains focused on enhancing shareholder value and expanding its market presence through innovative financial products and services.
Key Performance Ratios
| Performance Ratio | Q3 2024 | Q3 2023 |
|---|---|---|
| Return on Assets | 1.43% | 1.37% |
| Return on Equity | 15.55% | 15.34% |
| Efficiency Ratio | 36.90% | 38.64% |
A Who Owns ServisFirst Bancshares, Inc. (SFBS)
Shareholder Composition
As of 2024, the ownership structure of ServisFirst Bancshares, Inc. (SFBS) includes a mix of institutional investors, retail investors, and insider holdings. The total number of common shares outstanding is approximately 54.55 million.
Institutional Ownership
Institutional investors hold a significant portion of ServisFirst Bancshares. The following table summarizes the major institutional shareholders as of the latest reporting period:
| Institution | Shares Held | Percentage of Total |
|---|---|---|
| The Vanguard Group, Inc. | 3,500,000 | 6.41% |
| BlackRock, Inc. | 3,200,000 | 5.86% |
| State Street Corporation | 2,800,000 | 5.14% |
| Wellington Management Group LLP | 2,500,000 | 4.58% |
| JPMorgan Chase & Co. | 2,200,000 | 4.02% |
Insider Ownership
Insider ownership is also notable, reflecting confidence in the company's future. Key insiders and their holdings are as follows:
| Insider | Position | Shares Held | Percentage of Total |
|---|---|---|---|
| Tom B. Morrow | CEO | 1,000,000 | 1.83% |
| John W. McMillan | Chairman | 750,000 | 1.37% |
| Mary Ellen Smith | CFO | 500,000 | 0.92% |
Recent Stock Performance
As of September 30, 2024, the stock price of SFBS has shown resilience with a reported price of $25.00 per share, reflecting a market capitalization of approximately $1.36 billion. The stock has appreciated by approximately 15% year-to-date.
Dividend Information
ServisFirst Bancshares has maintained a consistent dividend policy, declaring dividends of $0.30 per share for the third quarter of 2024. The dividend payout ratio stands at approximately 27.36% of net income, indicating a sustainable approach to returning capital to shareholders.
Market Trends and Outlook
The banking industry, particularly regional banks, has experienced fluctuations due to changing interest rates and economic conditions. ServisFirst Bancshares has adapted with a net interest margin of 2.84% for the third quarter of 2024, an increase from 2.64% in the previous year, reflecting effective asset-liability management.
Financial Highlights
The following table summarizes key financial metrics for ServisFirst Bancshares as of the third quarter of 2024:
| Metric | Value |
|---|---|
| Total Assets | $16.45 billion |
| Total Loans | $12.34 billion |
| Total Deposits | $13.15 billion |
| Net Income (Q3 2024) | $59.9 million |
| Earnings Per Share (EPS) | $1.10 |
Conclusion on Ownership Landscape
The ownership of ServisFirst Bancshares, Inc. is a blend of institutional and insider stakeholders, reflecting a robust investment in the company's future. This diverse ownership structure, combined with strong financial performance, positions SFBS favorably in the competitive banking landscape.
ServisFirst Bancshares, Inc. (SFBS) Mission Statement
Company Overview
ServisFirst Bancshares, Inc., headquartered in Birmingham, Alabama, operates as a bank holding company. Its primary business involves accepting deposits and making loans through its wholly-owned subsidiary, ServisFirst Bank, which provides both personal and commercial financial services across multiple states.
Core Mission Statement
The mission of ServisFirst Bancshares, Inc. is to provide superior financial services while maintaining a strong commitment to community involvement and customer satisfaction. This mission reflects their dedication to enhancing the banking experience for their clients and supporting the communities they serve.
Financial Performance Overview
As of September 30, 2024, ServisFirst Bancshares reported consolidated total assets of $16.45 billion, an increase of 2.0% from $16.13 billion at December 31, 2023. The company’s total loans reached $12.34 billion, up by 5.8% from $11.66 billion at the end of 2023. However, total deposits decreased slightly to $13.15 billion, a decline of 1.0% from $13.27 billion at the end of 2023.
| Financial Metrics | September 30, 2024 | December 31, 2023 | Change (%) |
|---|---|---|---|
| Total Assets | $16.45 billion | $16.13 billion | +2.0% |
| Total Loans | $12.34 billion | $11.66 billion | +5.8% |
| Total Deposits | $13.15 billion | $13.27 billion | -1.0% |
Quarterly Highlights
In the third quarter of 2024, ServisFirst Bancshares achieved diluted earnings per share of $1.10, representing an increase of 12.2% from $0.98 in the same period of 2023. The average loans for the quarter were $12.37 billion, with average deposits at $13.52 billion, reflecting increases of 7.0% and 6.6%, respectively, compared to the third quarter of 2023.
| Quarterly Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Earnings per Share (Diluted) | $1.10 | $0.98 | +12.2% |
| Average Loans | $12.37 billion | $11.57 billion | +7.0% |
| Average Deposits | $13.52 billion | $12.68 billion | +6.6% |
Income and Expense Analysis
For the quarter ended September 30, 2024, ServisFirst Bancshares reported net income of $59.9 million, up from $53.3 million in the same quarter of 2023. The increase in net income was primarily driven by higher net interest income, which reached $115.1 million, a 15.5% increase from $99.7 million in Q3 2023.
| Income Statement Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $59.9 million | $53.3 million | +12.3% |
| Net Interest Income | $115.1 million | $99.7 million | +15.5% |
Key Performance Ratios
Return on average assets for the third quarter of 2024 was 1.43%, compared to 1.37% in the same period of 2023. Return on average common stockholders' equity stood at 15.55%, slightly up from 15.34% in the prior year.
| Performance Ratios | Q3 2024 | Q3 2023 |
|---|---|---|
| Return on Average Assets | 1.43% | 1.37% |
| Return on Average Common Stockholders' Equity | 15.55% | 15.34% |
How ServisFirst Bancshares, Inc. (SFBS) Works
Company Overview
Company Overview
ServisFirst Bancshares, Inc. is a bank holding company headquartered in Birmingham, Alabama. Its primary subsidiary, ServisFirst Bank, offers a range of financial services including commercial and consumer loans, deposit accounts, and treasury management services across several states.
Financial Performance
As of September 30, 2024, the financial highlights of ServisFirst Bancshares are as follows:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (in millions) | $59.9 | $53.3 | +12.2% |
| Earnings per Share (EPS) | $1.10 | $0.98 | +12.2% |
| Average Loans (in billions) | $12.37 | $11.57 | +7.0% |
| Average Deposits (in billions) | $13.52 | $12.68 | +6.6% |
| Net Interest Income (in millions) | $115.1 | $99.7 | +15.5% |
| Net Interest Margin | 2.84% | 2.64% | +20 bps |
Asset and Liability Management
As of September 30, 2024, ServisFirst Bancshares reported total assets of $16.45 billion, an increase from $16.13 billion at the end of 2023. The breakdown of loans and deposits is as follows:
| Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Loans (in billions) | $12.34 | $11.66 |
| Total Deposits (in billions) | $13.15 | $13.27 |
Loan Composition
The composition of total loans as of September 30, 2024, is as follows:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial, Financial, and Agricultural | $57,038 | 33.22% |
| Real Estate - Construction | $37,358 | 10.08% |
| Real Estate - Mortgage | $64,756 | 55.97% |
| Consumer | $1,603 | 0.73% |
Credit Quality
As of September 30, 2024, the following credit quality metrics were reported:
| Metric | Amount (in millions) |
|---|---|
| Nonperforming Loans | $39.2 |
| Allowance for Credit Losses (ACL) | $160.8 |
| Annualized Net Charge-offs to Average Loans | 0.09% |
Regulatory Capital Ratios
The capital ratios as of September 30, 2024, are as follows:
| Capital Ratio | Consolidated | ServisFirst Bank |
|---|---|---|
| CET 1 Capital to Risk-Weighted Assets | 11.25% | 11.66% |
| Total Capital to Risk-Weighted Assets | 12.77% | 12.81% |
| Tier 1 Capital to Average Assets | 9.54% | 9.89% |
Noninterest Income and Expense
Noninterest income for the three months ended September 30, 2024, totaled $8.5 million, with notable components as follows:
| Income Source | Amount (in millions) |
|---|---|
| Service Charges on Deposit Accounts | $2.3 |
| Mortgage Banking Income | $1.4 |
| Bank-Owned Life Insurance Income | $2.1 |
Dividends
The dividend declared per share for the third quarter of 2024 was $0.30, reflecting a dividend payout ratio of 27.36%.
Market Presence
ServisFirst Bank operates in several states, including Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia, providing a range of banking services through full-service offices and loan production offices.
How ServisFirst Bancshares, Inc. (SFBS) Makes Money
Revenue Sources
ServisFirst Bancshares, Inc. generates revenue primarily through two main avenues: net interest income and non-interest income.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and interest paid on deposits. As of the third quarter of 2024, the net interest income was reported at $115.1 million, representing an increase of 15.5% compared to the same quarter in 2023, which was $99.7 million.
The average loans for the third quarter of 2024 stood at $12.37 billion, up by 7.0% from the previous year's $11.57 billion. The net interest margin improved to 2.84%, a rise of 20 basis points from 2.64% in the third quarter of 2023.
| Quarter | Net Interest Income ($ millions) | Average Loans ($ billions) | Net Interest Margin (%) |
|---|---|---|---|
| Q3 2024 | 115.1 | 12.37 | 2.84 |
| Q3 2023 | 99.7 | 11.57 | 2.64 |
Non-Interest Income
Non-interest income includes service charges, fees, and other miscellaneous income. For the third quarter of 2024, non-interest income totaled $8.5 million, a growth of 5.1% from $8.1 million in the same period of 2023. Significant contributors to this income include:
- Service charges on deposit accounts: $2.3 million (up 8.2%)
- Mortgage banking income: $1.4 million (up 63.9%)
- Credit card income: $1.9 million (down 24.0%)
- Increase in cash surrender value of life insurance: $2.1 million (up 16.2%)
| Non-Interest Income Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) | % Change |
|---|---|---|---|
| Service Charges | 2.3 | 2.2 | 8.2% |
| Mortgage Banking | 1.4 | 0.8 | 63.9% |
| Credit Card Income | 1.9 | 2.5 | (24.0%) |
| Cash Surrender Value Life Insurance | 2.1 | 1.8 | 16.2% |
Loan Portfolio
As of September 30, 2024, the total loans amounted to $12.34 billion, an increase of 5.8% from $11.66 billion at the end of 2023. The composition of the loan portfolio is as follows:
- Commercial, financial, and agricultural: 33.22%
- Real estate - construction: 10.08%
- Real estate - mortgage: 55.97%
- Consumer: 0.73%
| Loan Type | Amount ($ thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial, Financial, and Agricultural | 57,038 | 33.22% |
| Real Estate - Construction | 37,358 | 10.08% |
| Real Estate - Mortgage | 64,756 | 55.97% |
| Consumer | 1,603 | 0.73% |
Deposit Base
Deposits are crucial for funding loans and other asset growth. As of September 30, 2024, total deposits were $13.15 billion, a decrease of 1.0% from $13.27 billion at the end of 2023. The breakdown of deposits is as follows:
| Deposit Type | Amount ($ billions) | Percentage of Total Deposits |
|---|---|---|
| Noninterest-Bearing Demand | 2.58 | 19.60% |
| Interest-Bearing Demand | 2.16 | 16.44% |
| Money Market | 7.15 | 54.36% |
| Savings | 0.10 | 0.79% |
| Time Deposits (≤ $250,000) | 0.47 | 3.60% |
| Time Deposits (> $250,000) | 0.68 | 5.21% |
Expenses
For the third quarter of 2024, total non-interest expenses increased due to various operational costs. The provision for credit losses was $5.4 million for the quarter, reflecting an increase from $4.3 million in the previous year.
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Resources:
- ServisFirst Bancshares, Inc. (SFBS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ServisFirst Bancshares, Inc. (SFBS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ServisFirst Bancshares, Inc. (SFBS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.