ServisFirst Bancshares (SFBS) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income was $65.2 million, up 8.8% sequentially and 54.9% year-over-year; diluted EPS was $1.19, up 8.2% from Q3 and 54.5% from Q4 2023.

• Book value per share reached $29.63, up 12% year-over-year; cash dividend increased 12% to $0.335 per share.

• Loan growth was robust, with net loan growth of $268 million in Q4, and new markets in Memphis and Auburn showing promising progress.

• Deposit growth was strong, including non-interest-bearing deposits and correspondent channel funding, with 24 new correspondent banks added in 2024.

• Adjusted diluted EPS rose 8% sequentially and 31% year-over-year, excluding prior year one-time items.

Financial highlights

• Net interest income for Q4 2024 was $123.2 million, up from $115.1 million in Q3 and $101.7 million in Q4 2023.

• Net interest margin improved to 2.96% in Q4 2024 from 2.57% in Q4 2023, up 12 basis points over the prior quarter.

• Non-interest income rose 19.3% year-over-year to $8.8 million, with mortgage banking revenue up 91%.

• Non-interest expense fell 19.5% year-over-year to $46.9 million, reflecting lower FDIC assessments and absence of prior year one-time costs.

• Efficiency ratio improved to 35.54% from 55.23% in Q4 2023, improving each quarter during the year.

Outlook and guidance

• Management is optimistic for 2025, expecting normalized loan growth, continued margin improvement, and a solid loan pipeline.

• Operating efficiency and higher net interest income remain key focuses entering 2025.

• Management remains opportunistic about hiring and expansion, with potential for further growth in Florida and other Southeast markets.

• Tax rate guidance remains at 19% for 2025.