ASB - ServisFirst Bancshares: Flirting With A Downgrade

2024-05-24 17:01:38 ET

Summary

• ServisFirst Bancshares, Inc. stock has risen by 20.5% since October 2023, but its outperformance compared to the S&P 500 is not significant.
• The bank's balance sheet shows a deliberate decline in deposits, while loans and securities have increased.
• Net interest income and non-interest income have both decreased, leading to a decline in net income. ServisFirst Bancshares stock is also trading at a high valuation.

It's always interesting to see just how pricey shares of some businesses can become. Firms that look expensive can sometimes just keep getting pricier. One good example of this that I could point to involves a relatively small bank known as ServisFirst Bancshares, Inc. ( SFBS ). Back in early October of last year, I wrote my first-ever article about the enterprise. Even though the institution had experienced attractive growth leading up to that point, shares were expensive, and the firm had relatively high amounts of uninsured deposit exposure. This was enough to turn me off and to rate the enterprise a "Hold."...

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