ServisFirst Bancshares (NYSE:SFBS) Releases Quarterly Earnings Results, Beats Estimates By $0.20 EPS

ServisFirst Bancshares (NYSE:SFBS) announced its quarterly earnings data on Tuesday. The financial services provider reported $1.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.38 by $0.20, FiscalAI reports. ServisFirst Bancshares had a return on equity of 15.67% and a net margin of 25.24%.The firm had revenue of $162.21 million during the quarter, compared to analysts’ expectations of $151.82 million.

Here are the key takeaways from ServisFirst Bancshares’ conference call:

• Company reported strong results with $1.58 diluted EPS in Q4 (up ~32% QoQ) and $276.5 million net income for the year, driving a tangible book value increase to $33.62 per share.
• Margin momentum—Q4 NIM expanded to 3.38% and asset yields were 5.79%; management cites disciplined loan pricing, a 40% rise in loan-fee collection and a roughly $2 billion repricing opportunity (including ~$1B of fixed-rate loans) to support further NIM expansion.
• Credit headwinds persist—non-performing assets rose to 97 bps of assets (from 26 bps a year ago) largely due to exposure to a single merchant developer; Q4 net charge-offs were ~$6.7M and the allowance ended the year at 1.25%.
• Strategic Texas expansion—ServisFirst added a nine-person Houston team and expects outsized 2026 growth from that market, but also plans high-single-digit expense growth and sees the efficiency ratio moving from sub-30% toward roughly 30–33% in the near term.

ServisFirst Bancshares Stock Down 2.4%

Shares of SFBS opened at $76.36 on Wednesday. The stock has a 50 day moving average price of $73.08 and a 200 day moving average price of $77.75. ServisFirst Bancshares has a one year low of $66.48 and a one year high of $93.90. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.96 and a current ratio of 0.96. The stock has a market capitalization of $4.17 billion, a price-to-earnings ratio of 16.35 and a beta of 0.93.

ServisFirst Bancshares Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, January 13th. Stockholders of record on Friday, January 2nd were paid a $0.38 dividend. This is a boost from ServisFirst Bancshares’s previous quarterly dividend of $0.34. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Friday, January 2nd. ServisFirst Bancshares’s dividend payout ratio is presently 32.55%.

Key ServisFirst Bancshares News

Here are the key news stories impacting ServisFirst Bancshares this week:

• Positive Sentiment: Beat on EPS and revenue — Q4 diluted EPS $1.58 (33% YoY) and revenue topped estimates; strong net income of $86.4M supports the earnings beat. ServisFirst Bancshares, Inc. Announces Results for Fourth Quarter of 2025
• Positive Sentiment: Improving margins, efficiency and growth levers — net interest margin rose to 3.38% (+42 bps YoY), efficiency ratio improved to ~29%, loans grew ~$385M (annualized ~12%) and deposits rose ~5% YoY; dividend was increased 13% and the bank entered Texas (new growth market). ServisFirst Bancshares, Inc. Reports Strong Fourth Quarter 2025 Earnings
• Neutral Sentiment: Management commentary: leadership highlighted continued focus on NIM expansion, expense discipline and franchise growth (including Texas) — supportive for 2026 execution but not a quantitative outlook change. ServisFirst Bancshares Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Street view: consensus remains around a Hold/average recommendation — analysts have noted the beat but are watching credit metrics and capital. ServisFirst Given Average Recommendation of “Hold”
• Negative Sentiment: Credit-quality signal — non-performing assets rose to ~0.97% (from 0.26% a year earlier) driven by one large real‑estate relationship; provisions and net charge-offs ticked higher. Investors may be pricing increased credit risk into the stock. ServisFirst Bancshares, Inc. Reports Strong Fourth Quarter 2025 Earnings
• Negative Sentiment: Other drags — income tax expense rose significantly (nearly +50% YoY) and a reported insider sale in recent months may be contributing to near-term selling pressure. ServisFirst Bancshares, Inc. Reports Strong Fourth Quarter 2025 Earnings

Institutional Investors Weigh In On ServisFirst Bancshares

Hedge funds have recently modified their holdings of the business. Lido Advisors LLC increased its position in ServisFirst Bancshares by 4.8% during the third quarter. Lido Advisors LLC now owns 4,590 shares of the financial services provider’s stock worth $370,000 after purchasing an additional 212 shares during the last quarter. Fiduciary Trust Co grew its stake in shares of ServisFirst Bancshares by 20.9% in the 3rd quarter. Fiduciary Trust Co now owns 3,974 shares of the financial services provider’s stock valued at $320,000 after buying an additional 686 shares during the period. Two Sigma Investments LP increased its holdings in shares of ServisFirst Bancshares by 37.2% during the 3rd quarter. Two Sigma Investments LP now owns 4,754 shares of the financial services provider’s stock worth $383,000 after buying an additional 1,289 shares during the last quarter. Orion Porfolio Solutions LLC raised its position in shares of ServisFirst Bancshares by 3.9% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 4,926 shares of the financial services provider’s stock valued at $382,000 after buying an additional 187 shares during the period. Finally, Quantinno Capital Management LP acquired a new position in ServisFirst Bancshares in the second quarter valued at approximately $373,000. 67.31% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Hovde Group upgraded shares of ServisFirst Bancshares from a “market perform” rating to an “outperform” rating and set a $89.00 price target on the stock in a research report on Friday, December 19th. Raymond James Financial upgraded ServisFirst Bancshares from a “market perform” rating to an “outperform” rating and set a $95.00 price target for the company in a research note on Tuesday, October 7th. Zacks Research raised ServisFirst Bancshares from a “strong sell” rating to a “hold” rating in a report on Friday, December 19th. Weiss Ratings reissued a “hold (c)” rating on shares of ServisFirst Bancshares in a report on Monday, December 29th. Finally, Piper Sandler cut their price objective on ServisFirst Bancshares from $90.00 to $80.00 and set a “neutral” rating for the company in a research report on Tuesday, October 21st. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $88.00.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc is a bank holding company headquartered in Birmingham, Alabama, and the parent of ServisFirst Bank. The company specializes in commercial banking services, catering primarily to small and mid-sized businesses, professionals and entrepreneurs. Its product portfolio encompasses commercial real estate lending, commercial and industrial loans, deposit accounts, treasury management and other ancillary banking products designed to meet the financial needs of its clients.

ServisFirst Bank offers a full suite of deposit products, including interest-bearing checking, money market accounts and certificates of deposit, as well as a variety of loan products.