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

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

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 Trading Down 2.4%

NYSE SFBS opened at $76.36 on Wednesday. The firm’s 50-day moving average is $73.08 and its two-hundred day moving average is $77.75. ServisFirst Bancshares has a 12 month low of $66.48 and a 12 month high of $93.90. The company has a debt-to-equity ratio of 0.04, a current ratio of 0.96 and a quick ratio of 0.96. The stock has a market capitalization of $4.17 billion, a P/E ratio of 16.35 and a beta of 0.93.

ServisFirst Bancshares Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, January 13th. Investors of record on Friday, January 2nd were given a dividend of $0.38 per share. 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. This is a positive change from ServisFirst Bancshares’s previous quarterly dividend of $0.34. ServisFirst Bancshares’s dividend payout ratio is 32.55%.

Trending Headlines about ServisFirst Bancshares

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

Analyst Ratings Changes

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

Hedge Funds Weigh In On ServisFirst Bancshares

Several large investors have recently made changes to their positions in the stock. Royal Bank of Canada increased its holdings in ServisFirst Bancshares by 17.2% in the 1st quarter. Royal Bank of Canada now owns 16,815 shares of the financial services provider’s stock valued at $1,390,000 after purchasing an additional 2,465 shares during the last quarter. AQR Capital Management LLC lifted its stake in ServisFirst Bancshares by 70.9% during the first quarter. AQR Capital Management LLC now owns 8,989 shares of the financial services provider’s stock worth $742,000 after purchasing an additional 3,730 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of ServisFirst Bancshares by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,194 shares of the financial services provider’s stock worth $2,494,000 after buying an additional 1,308 shares during the period. Millennium Management LLC grew its stake in shares of ServisFirst Bancshares by 107.3% in the first quarter. Millennium Management LLC now owns 146,442 shares of the financial services provider’s stock valued at $12,096,000 after buying an additional 75,799 shares in the last quarter. Finally, Caxton Associates LLP purchased a new stake in shares of ServisFirst Bancshares in the 1st quarter valued at $204,000. 67.31% of the stock is currently owned by institutional investors and hedge funds.

ServisFirst Bancshares Company Profile

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.