ServisFirst Bancshares, Inc. operates as a bank holding company for ServisFirst Bank that provides a full range of banking services to individual and corporate customers.
The company, through its wholly-owned subsidiary bank, operates various full-service banking offices located in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia. The company also operate loan production offices in Florida. The company originates commercial, consumer and other loans and accepts...
ServisFirst Bancshares, Inc. operates as a bank holding company for ServisFirst Bank that provides a full range of banking services to individual and corporate customers.
The company, through its wholly-owned subsidiary bank, operates various full-service banking offices located in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia. The company also operate loan production offices in Florida. The company originates commercial, consumer and other loans and accepts deposits, provides electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provides correspondent banking services to other financial institutions.
The company operates its bank using a simple business model based on organic loan and deposit growth, generated through high quality customer service, delivered by a team of experienced bankers focused on developing and maintaining long-term banking relationships with the company's target customers. The company utilizes a uniform, centralized back office risk and credit platform to support a decentralized decision-making process executed locally by the company's regional chief executive officers.
The company's principal business is to accept deposits from the public and to make loans and other investments. The company's principal sources of funds for loans and investments are demand, time, savings and other deposits and the amortization and prepayment of loans and borrowings.
Certain of the company's subsidiaries hold and manage participations in residential mortgages and commercial real estate loans originated by the company's bank in Alabama, Florida, Georgia and Tennessee, respectively, and have elected to be treated as a real estate investment trust, or REIT, for the U.S. income tax purposes. Each of these entities is consolidated into the company.
Business Strategy
The company is a full service commercial bank focused on providing competitive products, state of the art technology and quality service. The company’s business philosophy is to operate as a metropolitan community bank emphasizing prompt, personalized customer service to the individuals and businesses located in its primary markets. The company aggressively markets to its target customers, which include privately held businesses generally with $2 million to $250 million in annual sales, professionals and affluent consumers whom are underserved by the larger regional banks operating in its markets. The key elements of the company’s strategy are to focus on core banking business; and identify opportunities in vibrant markets.
Lending Services
Commercial Loans
The company’s commercial lending activity is directed principally toward businesses and professional service firms whose demand for funds falls within its legal lending limits, and it offers a variety of commercial lending products to meet the needs of business and professional service firms in its service areas. The company makes seasonal loans, bridge loans, and term loans to small- and medium-sized businesses in its markets for a variety of business purposes, including but not limited to, expanding business, acquiring property, upgrading plant and equipment, buying inventory and for general working capital. Typically, targeted business borrowers have annual sales between $2 million and $250 million. This category of loans includes loans made to individual, partnership and corporate borrowers. The company also offers commercial lines of credit. The repayment terms of the company’s commercial loans will vary according to the needs of each customer.
The company’s commercial loans usually are collateralized. Generally, collateral consists of business assets, including accounts receivable, inventory, equipment, and/or real estate. Collateral is subject to the risk that the company may have difficulty converting it to a liquid asset if necessary, as well as risks associated with degree of specialization, mobility and general collectability in a default situation. To mitigate this risk, the company has strict collateral underwriting standards, including valuations and general acceptability based on its ability to monitor its ongoing condition and value.
The company underwrites its commercial loans primarily on the basis of the borrower’s cash flow, ability to service debt, and degree of management expertise. As a general practice, the company takes as collateral a security interest in any available real estate, equipment or personal property. Under limited circumstances, it may make commercial loans on an unsecured basis. Commercial loans may be subject to many different types of risks, including fraud, bankruptcy, economic downturn, deteriorated or non-existent collateral, and changes in interest rates.
Real Estate Loans
The company makes commercial real estate loans, 1-4 family residential real estate loans, and construction and development loans.
Commercial Real Estate: The company makes both owner-occupied and non-owner-occupied commercial real estate loans. Commercial real estate loans are generally limited to terms of five years or less, although payments are usually structured based on a longer amortization. Interest rates may be fixed or adjustable, although rates generally will not be fixed for a period exceeding five years.
In managing the risks associated with its commercial real estate portfolio, the company utilizes several practices. The company has three independent loan reviews performed each year that cover 35-40% (approximately 400 relationships) of the entire commercial loan portfolio on a committed basis. Two of these reviews include commercial real estate loans and construction and development loans. These independent reviews, conducted by a third-party vendor, address underwriting, servicing, and risk grade confirmation and result in written findings and recommendations. The company also holds formal quarterly meetings—including Lenders, Regional Credit Officers, and Regional CEOs—to discuss all problem credits and potential workout plans in detail. The company’s Credit Administration department prepares a comprehensive report on its commercial real estate and commercial construction portfolios, including analysis of current performance, industry information, and trends across multifamily, retail, office, hotel, and nursing/assisted living facilities.
Owner-Occupied Commercial Real Estate: The company focuses on the banking needs of established operating companies, which includes owner-occupied office and industrial real estate loans. In addition to a proven management team and track record, the company targets businesses with strong historical cash flows. Loans are conservatively underwritten and typically carry the personal guarantee of the business owners. This portfolio segment is well diversified by industry type.
Non-Owner-Occupied Commercial Real Estate: Risks associated with non-owner-occupied commercial real estate include fluctuations in the value of real estate, the overall strength of the economy, tenant vacancy rates, and the quality of the borrower’s management. The company lends to developers and owners with a proven history of success, who demonstrate sufficient equity in their projects and strong liquidity. Loans are conservatively underwritten, with interest rates, vacancy levels, and rental rates stressed to gauge performance through various economic conditions. These loans typically carry personal guarantees from the owners.
1-4 Family Mortgage: The company’s 1-4 family mortgage residential loans consist primarily of residential second mortgage loans, residential construction loans, and traditional mortgage lending for one-to-four family residences. The company will originate fixed-rate mortgages with long-term maturities.
Construction and Development Loans: The company makes construction and development loans on both a pre-sold and speculative basis. If the borrower has entered into an agreement to sell the property prior to beginning construction, the loan is considered pre-sold; otherwise, it is deemed speculative. Construction and development loans are generally made with terms of 12 to 36 months, with interest payable monthly.
Consumer Loans
The company offers a variety of loans to retail customers in the communities it serves. Consumer loans in general carry a moderate degree of risk compared to other loans. The company’s consumer loans include home equity loans (open and closed-end), vehicle financing, loans secured by deposits, and secured and unsecured personal loans. These types of consumer loans all carry varying degrees of risk.
Investment Portfolio
As of December 31, 2024, the company’s investment portfolio included U.S. Treasury Securities; mortgage-backed securities; state and municipal securities; and corporate debt securities.
Deposit Services
The company seeks to establish solid core deposits, including checking accounts, money market accounts, savings accounts and a variety of certificates of deposit and individual retirement arrangements, or IRA accounts. To attract deposits, the company employs an aggressive marketing plan throughout its service areas that features a broad product line and competitive services. The primary sources of core deposits are residents of, and businesses and their employees located in, the company’s market areas. The company has obtained deposits primarily through personal solicitation by its officers and directors, through reinvestment in the community, and through its stockholders, who have been a substantial source of deposits and referrals. The company makes deposit services accessible to customers by offering traditional banking services, including direct deposit, wire transfer, night depository, banking-by-mail and remote capture for non-cash items. The company’s bank is a member of the FDIC, and thus its deposits (subject to applicable FDIC limits) are FDIC-insured.
Other Banking Services
Given client demand for increased convenience and account access, the company offers a range of products and services, including 24-hour telephone banking, direct deposit, Internet banking, mobile banking, traveler’s checks, safe deposit boxes, attorney trust accounts and automatic account transfers. The company also participates in a shared network of automated teller machines and a debit card system that its customers are able to use, and, in certain accounts subject to certain conditions, it rebates to the customer the ATM fees automatically after each business day. Additionally, the company offers Visa credit cards.
Supervision and Regulation
The company is a bank holding company under the federal Bank Holding Company Act of 1956, as amended (the 'BHC Act'). As a result, the company is primarily subject to the supervision, examination and reporting requirements of the BHC Act and the regulations of the Federal Reserve.
In addition, the company and the bank are subject to comprehensive supervision and periodic examination by the Federal Reserve, the FDIC, the Alabama State Banking Department (the 'Alabama Banking Department'), and the U.S. Consumer Financial Protection Bureau (the 'CFPB'), among other regulatory bodies.
The Federal Deposit Insurance Act and Federal Reserve policy require a bank holding company to act as a source of financial and managerial strength to its bank subsidiaries.
The bank is an Alabama state-chartered bank and, as such, is subject to examination and regulation by the Alabama Banking Department. The bank is not a member of the Federal Reserve System but is subject to various regulations and requirements promulgated by the Federal Reserve, the CFPB, the Federal Trade Commission, the Financial Crimes Enforcement Network, the Office of Foreign Assets Control ('OFAC'), and other federal regulatory agencies.
The FDIC and the Alabama Banking Department regularly examine the bank's operations and have the authority to approve or disapprove mergers, the establishment of branches and similar corporate actions.
The bank's deposits are insured by the FDIC to the full extent provided in the Federal Deposit Insurance Act, and the bank pays assessments to the FDIC for that coverage. Additionally, the company must publicly disclose the terms of various CRA-related agreements.
the Truth-In-Lending Act, as implemented by Regulation Z issued by the CFPB, governing, among other things, the disclosure of credit terms to consumers;
the Real Estate Settlement Procedures Act, as implemented by Regulation X issued by the CFPB, prescribing, among other things, requirements in connection with residential mortgage loan applications, settlements, and servicing;
the Home Mortgage Disclosure Act, as implemented by Regulation C issued by the CFPB, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
the Equal Credit Opportunity Act, as implemented by Regulation B issued by the CFPB, prohibiting discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or certain other prohibited factors in all aspects of credit transactions, imposing certain requirements regarding credit applications, and prescribing certain disclosure obligations;
the Fair Credit Reporting Act, as implemented in part by Regulation V issued by the CFPB, governing the use and provision of information to credit reporting agencies by imposing, among other things, requirements for financial institutions to develop policies and procedures to identify potential identity theft, requirements for entities that furnish information to consumer reporting agencies (which would include the Bank) to implement procedures and policies regarding the accuracy and integrity of the furnished information and respond to disputes from consumers regarding credit reporting issues, requirements for mortgage lenders to disclose credit scores to consumers, and limitations on the ability of a business that receives consumer information from an affiliate to use that information for marketing purposes;
the Fair Debt Collection Practices Act, as implemented in part by Regulation F issued by the CFPB, governing the manner in which consumer debts may be collected by debt collectors;
the Servicemembers’ Civil Relief Act, governing the repayment terms of, and property rights underlying, secured obligations of persons in military service;
the Right to Financial Privacy Act, imposing a duty to maintain the confidentiality of consumer financial records and prescribing procedures for complying with administrative subpoenas of financial records;
the Electronic Funds Transfer Act, as implemented by Regulation E issued by the CFPB, governing automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services;
the Truth in Savings Act, as implemented by Regulation DD issued by the CFPB, governing, among other things, the disclosure of deposit terms to consumers; and
the Fair Housing Act, prohibiting discrimination in most housing-related activities, including financing, based on race, color, sex, national origin or religion.
The company is subject to Section 23A of the Federal Reserve Act, which places limits on the amount of: a bank's loans or extensions of credit to affiliates; a bank's investment in affiliates; assets a bank may purchase from affiliates, except for real and personal property exempted by the Federal Reserve; loans or extensions of credit made by a bank to third parties collateralized by the securities or obligations of affiliates; a bank's guarantee, acceptance or letter of credit issued on behalf of an affiliate; a bank's transactions with an affiliate involving the borrowing or lending of securities to the extent they create credit exposure to the affiliate; and a bank's derivative transactions with an affiliate to the extent they create credit exposure to the affiliate.
The company is also subject to Section 23B of the Federal Reserve Act, which, among other things, prohibits an institution from engaging in these transactions with affiliates unless the transactions are on terms substantially the same, or at least as favorable to the institution or its subsidiaries, as those prevailing at the time for comparable transactions with nonaffiliated companies.
The company is subject to a number of U.S. federal, state, local and foreign laws and regulations relating to consumer privacy and data protection. Under privacy protection provisions of the Gramm-Leach-Bliley Act of 1999 and its implementing regulations and guidance, the company is limited in the company's ability to disclose certain non-public information about consumers to nonaffiliated third parties.
The bank is subject to federal laws that are designed to counter money laundering and terrorist financing, and transactions with persons, companies, or foreign governments sanctioned by the United States. These include the USA Patriot Act, the Bank Secrecy Act, the Money Laundering Control Act, and the requirements of the OFAC.
In addition to regulations issued by the Alabama Banking Department and federal banking agencies, the company is subject to regulations issued by other state and federal agencies with respect to certain financial products and services the company offers and its operations generally. These include, for example, the SEC, various taxing authorities, and various state insurance regulators.
As a bank holding company, the company is subject to regulation by the Board of Governors of the Federal Reserve System (the 'Federal Reserve'). The company is required to file reports with the Federal Reserve and are subject to regular examinations by that agency.
Competition
In its markets, the company’s five largest competitors are Regions Financial Corporation, Wells Fargo & Company, PNC Financial Services Group, Inc., Truist Financial Corporation, and Synovus Financial Corp.
History
ServisFirst Bancshares, Inc. was founded in 2005. The company was incorporated in 2007.
