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staff casual Fridays but grew discouraged by the
the $62 billion Synovus Financial Corp. in Colum-
wrinkled khakis and denim jeans.)
bus, Georgia.
As attentive as the bank is to details such as
Broughton eventually became a regional chief
business attire, it’s also focused on providing a high
executive officer for Synovus, overseeing Alabama,
level of service to small- and mid-sized businesses.
Tennessee, Florida and parts of Georgia. In those
The bank eschewed the construction of branches,
days, Synovus had a decentralized structure with
preferring a low-cost business model that focuses
separate banks and individual executives in charge
on a sales mindset and serving the needs of own-
of each one. One day, a colleague proposed do-
er-operators. “We’re a growth company that sets
ing a revenue contribution analysis of his region.
high standards for performance,” Broughton says.
Broughton thought it was a great idea. It turned
“We say we’re a disciplined growth company.”
out 90% of his bank’s revenue came from 4% of
For years, the numbers have proven him right
at this banking company that had $14.6 bil-
its customers. “I couldn’t believe it,’’ he says. “I
thought, ‘There’s a better way.’”
lion in assets at the end of last year. ServisFirst
In 2005, Broughton founded ServisFirst in Bir-
Bancshares has nailed it as one of the top per-
mingham. The mission: simplicity and a focus on
forming banks in the nation. It ranked No. 17
the core business customer. “We don’t try to be
among the best 25 publicly traded U.S. banks in
all things to all people,” he says. The bank avoids
this year’s RankingBanking study, based on its
acquisitions, even while its stock price has trad-
performance in 2022. In previous years, it has
ed at a premium, preferring to grow organically
consistently outperformed peers for profitability,
and maintain its culture. The bank has very little
based on return on average assets and return on
fee-income businesses, which helps cut its cost
average equity. But ServisFirst has watched its
structure. There’s no trust division, no wealth
deposit costs rise in the current environment and
management, not many mortgages. “Most banks
has hit the pause button on loan growth. Can it
do a terrible job with wealth management,”
sustain its performance in the years ahead?
Broughton says. “What do we bring to the table
There’s nothing secretive about the sauce that
that [customers] can’t get somewhere else?”
makes ServisFirst so profitable. Broughton, who
He set out to build very few branches. His busy
has spent his entire career in Alabama, found-
clients, he theorized, didn’t want to come into a
ed the banking company in 2005, shortly before
branch. They wanted to handle their finances re-
the last financial crisis. It wasn’t the first bank
motely, on their phones and their computers.
he’d founded. In fact, Broughton came from a
Recently, the bank reported 64% of its deposits
family of bankers. He grew up in a small town
came in through remote deposit capture, accord-
in southern Alabama called Andalusia. His father,
ing to Kevin Fitzsimmons, managing director and
his grandfather and his uncle were all bankers. In
senior research analyst at D.A. Davidson Cos.
elementary school, when asked what they wanted
The low cost structure has translated into an in-
to be when they grew up, the other kids would say
credibly low efficiency ratio — in banking, the lower
firefighter or policeman. He said banker. Indeed,
the efficiency ratio, the better. It’s a simple metric:
Broughton started putting in hours in his fami-
for every dollar of revenue earned, the efficiency
ly’s bank when he was 11 years old, working after
ratio is the percent spent on expenses. “A good
school and in the summers.
bank is putting up a mid-50s to low-50s efficien-
In 1985, he and a cousin founded First Com-
cy ratio,” Fitzsimmons says. ServisFirst reported
mercial Bank. They sold it in 1992 to what’s now
an efficiency ratio of 34.6% in the first quarter