Jim Harper
About Jim Harper
Jim Harper (age 47) was appointed Senior Vice President and Chief Credit Officer of ServisFirst Bank on April 21, 2025, bringing 20+ years of credit risk leadership across regional banks; he holds a BBA in Economics from Mississippi State University and an MBA from Vanderbilt’s Owen Graduate School of Management . Company performance context: in 2024 net income was $227.2 million and diluted EPS was $4.16; loans grew 8.1% and deposits grew 2.0% . Over 2019–2024, a $100 initial investment in SFBS rose to $243.52, while peer group TSR (KBW Regional Bank Index) was $130.90 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Cadence Bank | EVP & Senior Credit Risk Officer; prior roles incl. SVP & Director of C&I Credit Risk; Commercial Credit & Underwriting Executive | 2021–2025 | Led enterprise credit administration and decisioning for corporate banking; strengthened portfolio risk oversight . |
| BBVA Compass, Bank of America, Trustmark National Bank | Various credit and banking roles | Prior to 2021 | Progressive responsibilities across credit risk and commercial banking platforms . |
External Roles
No public company board or external directorships disclosed .
Fixed Compensation
| Component | Terms |
|---|---|
| Base salary | $280,000 annually, effective April 21, 2025 . |
| Cash signing bonus | $75,000; subject to repayment if employment terminates within 24 months . |
| Benefits eligibility | Eligible for 401(k), healthcare, and standard Company benefit plans . |
Performance Compensation
| Element | Metric/Weighting | Target/Terms | Actual/Payout | Vesting/Timing |
|---|---|---|---|---|
| 2025 annual bonus (minimum) | n/a | Minimum 25% of base salary for 2025 ($70,000) . | Not disclosed | Annual cash incentive . |
| Annual short‑term incentive plan (program design) | EPS (50%); Loan Growth (30%); Deposit Growth (20%); Credit quality modifier (NPAs/Total Assets) . | 2024 Targets: EPS $4.34 (threshold $4.20; max $4.40); Loan growth 10% (threshold 8%; max 12%); Deposit growth 9% (threshold 7%; max 11%) . | 2024 Actual: EPS $4.16; Loan growth 8.1%; Deposit growth 2.0%; plan payout 15.9% of target; discretionary bonuses added for NEOs (program context) . | Annual cash; subject to credit‐quality reduction if NPAs/Assets ≥1.50% (50–100% reduction levels) . |
| Long‑term equity | Time‑based restricted stock | Initial grant of 3,000 shares; vests 100% at five years (cliff vest) . | n/a | 5‑year vest; continued employment required . |
Equity Ownership & Alignment
- Initial grant: 3,000 restricted shares, cliff vesting at five years; no options disclosed for Harper .
- Ownership guidelines: Company has not adopted formal executive stock ownership guidelines given high incumbent ownership, but revisits policy annually .
- Hedging/Pledging: Hedging prohibited; pledging prohibited unless approved by Insider Trading Compliance Officer (limited exceptions may be permitted) .
- Clawback: Company maintains an Exchange Act Rule 10D‑1 compliant clawback covering incentive compensation for the three completed fiscal years preceding a required restatement .
Employment Terms
| Provision | Terms |
|---|---|
| Appointment date | April 21, 2025 (Chief Credit Officer) . |
| Change‑in‑Control (CIC) Agreement | Double trigger; if terminated without Cause or with Good Reason during the two‑year CIC protected period: cash severance = 2.0x (base salary + average cash bonus over prior 3 years) + pro‑rata bonus for year of termination + lump‑sum COBRA premiums for 18 months; no tax gross‑ups; “best‑net” cut‑back applies . |
| Equity treatment on CIC | Restricted stock vests in full; performance shares vest at target pro‑rated for service days in the performance period . |
| Restrictive covenants | Confidentiality; non‑compete for 6 months within a 60‑mile radius of any Company office; non‑solicit of employees/customers for 1 year post‑termination (per Company’s standard CIC agreement) . |
Performance & Track Record
| Period | Key Credit Indicators | Commentary |
|---|---|---|
| Q2 2025 | Net charge‑offs ~ $6.5 million (driven by a single ~$5 million credit); Allowance/Loans 1.28%; NPAs/Assets ~0.42% (vs. 0.40% prior quarter) | Harper reported granular quarterly portfolio reviews, active resolution of long‑term problem credits, and no systemic issues by industry or borrower type; continued robust CRE and C&I pipelines . |
Compensation Structure Analysis
- New‑hire economics emphasize retention: $75k sign‑on with 24‑month repayment obligation and 3,000 restricted shares with 5‑year cliff vest support medium‑term retention and alignment .
- At‑risk pay linkage: Participation in an annual cash incentive plan heavily weighted to EPS (50%) and growth metrics (loans 30%, deposits 20%) with a credit‑quality safeguard (NPAs modifier), aligning credit leadership with earnings, prudent growth, and asset quality .
- Governance discipline: No excise tax gross‑ups; CIC is double‑trigger with best‑net provision; Company‑wide clawback enhances pay‑for‑performance integrity .
Investment Implications
- Retention risk looks contained near‑term: sign‑on repayment and 5‑year cliff RS vesting reduce immediate turnover risk; double‑trigger CIC (2x multiple) provides market‑standard protection without gross‑ups .
- Alignment: Prohibition of hedging and controlled pledging plus clawback policy and growth/EPS/credit‑quality incentive mix tie compensation to shareholder value and prudent risk .
- Monitoring signals: Track Form 4 activity for any pledging approvals or insider sales and 2025 incentive outcomes versus EPS/loan/deposit targets; watch credit metrics Harper highlighted (NPAs, charge‑offs, allowance) for leading indicators of payout and insider selling pressure .