ServisFirst Bancshares, Inc. Increases Quarterly Cash Dividend by 7%

Rhea-AI Summary

ServisFirst Bancshares, Inc. (NYSE: SFBS) announces a 7.1% increase in its quarterly cash dividend from $0.28 per share to $0.30 per share, payable on January 8, 2024 to stockholders of record as of January 2, 2024. The company has been increasing its dividend annually since going public in 2014.

Insights

Financial Analyst

The decision by ServisFirst Bancshares, Inc. to raise its quarterly cash dividend from $0.28 to $0.30 per share reflects a positive signal to the market, indicating the company's confidence in its financial stability and profitability. This increment continues the trend of annual dividend increases since the company's initial public offering in 2014, showcasing a commitment to delivering shareholder value.

From a financial perspective, the increase in dividend payout can attract income-focused investors and potentially boost the stock's attractiveness. However, it's crucial to consider the payout ratio, the proportion of earnings paid out as dividends, to assess sustainability. If the payout ratio remains within a healthy range, it suggests that the company is balancing return to shareholders with reinvestment in growth.

Long-term implications may include a reinforced perception of financial health and a potentially more stable investor base. Conversely, stakeholders should monitor the company's growth investments, as excessive dividend payouts could limit future expansion or innovation opportunities.

Industry Analyst

Within the banking industry, consistent dividend increases are often interpreted as a sign of a mature and stable company. ServisFirst's announcement aligns with industry practices where established financial institutions use dividends to signal financial health to the market.

Comparatively, if ServisFirst's dividend growth rate outpaces its peers, it could indicate superior management efficiency or a stronger capital position. Conversely, if the growth rate is below industry norms, it may prompt further analysis into the company's revenue streams and operational efficiency.

It is essential to contextualize this dividend increase within the broader economic environment, including interest rate trends, regulatory changes and competitive dynamics, as these factors can significantly impact bank profitability and, consequently, dividend sustainability.

BIRMINGHAM, Ala.--(BUSINESS WIRE)-- ServisFirst Bancshares, Inc., (NYSE: SFBS) (“ServisFirst”), the holding company for ServisFirst Bank, today announces: At a meeting held on December 18, 2023, its Board of Directors increased the company’s quarterly cash dividend from $0.28 per share to $0.30 per share. The dividend is payable on January 8, 2024 to stockholders of record as of January 2, 2024. ServisFirst has increased its dividend annually since the company went public in 2014.

About ServisFirst Bancshares, Inc.

ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Atlanta, Birmingham, Charleston, Dothan, Huntsville, Mobile, Montgomery, Nashville, Northwest Florida, Piedmont, West Central Florida, and Western North Carolina. ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbank.com.

More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbank.com or by calling (205) 949-0302.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231219598606/en/

ServisFirst Bank

Davis Mange (205) 949-3420

DMange@servisfirstbank.com

Source: ServisFirst Bancshares, Inc.

FAQ

What is the latest dividend announcement from ServisFirst Bancshares, Inc. (NYSE: SFBS)?

ServisFirst Bancshares, Inc. (NYSE: SFBS) has announced a 7.1% increase in its quarterly cash dividend from $0.28 per share to $0.30 per share.

When will the increased dividend be payable to stockholders of ServisFirst Bancshares, Inc. (NYSE: SFBS)?

The increased dividend will be payable on January 8, 2024 to stockholders of record as of January 2, 2024.

Since when has ServisFirst Bancshares, Inc. (NYSE: SFBS) been increasing its dividend?

ServisFirst Bancshares, Inc. (NYSE: SFBS) has been increasing its dividend annually since going public in 2014.