2 min read September 2023 — Invest: spoke with Gwynn Davey, Tampa Bay regional president of ServisFirst Bank, about the importance of informing consumers on banking fraud, the bank’s focus on finding talented teams when building new branches and the impact of its “autonomous model” of banking.
What are your plans for expansion or new locations in additional markets?
We are an organically grown bank, not an acquisition strategy bank. We grow by opening in new markets. For example, we recently opened an office in Virginia Beach. Our model is a little unique because we typically look for good teams that have run a bank before, or they have management experience, which means they can be autonomous. We look for the teams and then grow the bank around the team. Instead of looking for talent in a particular geographic region, we start by identifying a talented team. We are growing and will keep growing as long as we can find good bankers.
What is the bank’s key strength and main driver of growth?
One of our greatest strengths is our autonomous model. We have local decision-making in each of our markets. This is important for attracting talent because there is a local environment with resources and processes to be successful in business development. As I mentioned, hiring talented people and providing the resources that they need is important in our model. We ask a lot from our highly talented bankers and people, and they give 150%. This is efficient and allows us to continue our autonomous model. Business owners in the market know we have credibility and that we deliver what we promise.
Interest rates have impacted growth on the loan side of our balance sheet. Many banks are currently focused on the deposit aspect of relationships, and we have had a lot of growth in deposits, which have grown 23% second quarter year over year. There has also been an in migration of businesses and individuals into Florida over the last few years, so there are significant opportunities. Also, we have to offer more flexible services and products to service our customers, such as treasury management, as well as some international business. This is important in developing a heavy deposit collection strategy and for owner-managed businesses.
What changes have you seen in the fiscal environment in the Tampa Bay region?
The Tampa Bay and Florida market is in a bit of a bubble compared to other markets we operate in. There is a huge influx of population to the area and there is a surplus of individuals moving to Tampa. Real estate and development are seeing a lot of growth and diverse industries are being attracted to the area. Not all markets are experiencing that. I think that the influx of talent and wealth is unique to Tampa Bay and Florida in general.
Our approach is to offer value to small businesses. One thing we do well is to hire experienced bankers. They aren’t just order takers; they take an in-depth look at the business. You don’t get that everywhere. There is a place for hiring younger bankers but you need an infrastructure in place to do that, so it only works in certain situations.
What is the importance of financial literacy for your customers?
Financial awareness is more of a key aspect for our business customers. There is a lot of opportunity for fraud in business and personal financial transactions. We try to educate on that and get our clients familiar with products that help prevent fraud. Our clients understand that we are here to help with that.
What is your risk management strategy for ServisFirst Bank and how has that strategy changed?
Risk management is a priority for ServisFirst. We recently hosted a seminar to educate small-business owners about the internal dynamics of our bank, so that they would have confidence in our financial strength. We have always had a rigorous asset/liability management strategy and that comes from the top down. We strive to be well versed in our bank operations and financial details. We are also involved with the Florida Bankers Association, our bankers’ industry organization, which is wonderfully run and organized. I have been to Washington with this group to ensure bankers have a voice in regulatory issues. We are very involved in that organization and are advocates for legislation that has a positive impact on our industry.
What is your outlook for the next near term and what are your top priorities?
Continued growth within our core business and ongoing focus on credit quality will be important. Being responsive and providing thought-out financial solutions will continue as our primary business tenet.
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