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1. Company Snapshot

1.a. Company Description

ServisFirst Bancshares, Inc.operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers.It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit.


The company's loan products include commercial lending products, such as seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans.It also offers other banking products and services comprising telephone and mobile banking, direct deposit, Internet banking, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit card systems, as well as Visa credit cards; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions.In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee.


It operates 23 full-service banking offices located in Alabama, Florida, Georgia, South Carolina, and Tennessee, as well as 2 loan production offices in Florida.The company was founded in 2005 and is headquartered in Birmingham, Alabama.

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1.b. Last Insights on SFBS

ServisFirst Bancshares, Inc.'s recent performance was positively driven by its robust Q4 and FY2025 results, which outperformed the S&P 500. The company's disciplined, relationship-driven lending and strong fundamentals led to 12% annualized loan growth in Q4. Additionally, its net interest margin expanded from 2.92% to 3.38% in 2025. A 13.4% dividend hike, supported by strong capital levels and ample liquidity, also contributed to investor confidence. Institutional investors, such as Deprince Race & Zollo Inc. and Osaic Holdings Inc., have increased their holdings in the company.

1.c. Company Highlights

2. ServisFirst Bancshares' Strong Q4 Earnings Exceed Expectations

ServisFirst Bancshares reported a robust fourth-quarter earnings per diluted share of $1.58, significantly beating estimates of $1.38. This represents a 32% increase from the third quarter of 2025 and a 33% increase from the fourth quarter of 2024. The net interest margin expanded to 3.38% in the fourth quarter, driven by disciplined loan pricing and deposit rate reductions. Full-year earnings per share was $5.25 on an operating basis and $5.06 on a GAAP basis. The company's efficiency ratio dipped below 30% for the quarter and 32% for the full year, a 14% improvement over 2024.

Publication Date: Jan -25

📋 Highlights
  • Loan Growth & Pipeline Strength: 12% annualized loan growth, 11% QoQ loan pipeline increase (80% net of payoffs).
  • EPS Surge: Q4 EPS rose 32% YoY to $1.58, full-year operating EPS at $5.25 (+33% YoY).
  • Margin Expansion: Net interest margin hit 3.38% Q4, with 130-basis-point repricing tailwind in 2026 from $1B loan resets.
  • Efficiency Gains: Q4 efficiency ratio dipped below 30%, full-year at 32% (14% improvement over 2024).
  • Balance Sheet Strength: Tangible book value climbed 4% to $33.62/share, NPA ratio stable at 97 bps.

Loan Growth and Credit Quality

The company's loan growth was in line with projections, with an annualized growth rate of 12% for the quarter. The loan pipeline increased by 11% quarter-over-quarter and 80% net of projected payoffs. Chief Credit Officer Jim Harper noted that net charge-offs for the fourth quarter were approximately $6.7 million, with the majority related to one credit. The allowance to total loans remained relatively stable at 1.25%, indicating a manageable credit risk.

Outlook and Guidance

Management expects continued margin expansion in 2026, driven by repricing opportunities on low fixed-rate loans, with approximately $1 billion of loans set to reprice, offering a 130-basis-point increase. The company anticipates high growth in 2026, particularly in its Texas franchise, with budgeted growth higher than any other region. The efficiency ratio is expected to be between 30% and 33% in 2026, with some drag from the new Texas team, but offset by top-line growth.

Valuation and Dividend Yield

At current levels, the stock trades at a Price-to-Tangible Book Value (P/TBV) of approximately 2.42, which is slightly above the industry average. The Dividend Yield stands at 1.69%, providing a relatively stable source of return for investors. Analysts estimate next year's revenue growth at 9.6%, which is expected to drive the stock's performance. With a Net Interest Margin (NIM) of 3.38%, ServisFirst Bancshares is well-positioned to benefit from the current interest rate environment.

3. NewsRoom

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FPA Queens Road Small Cap Value Fund Q4 2025 Performance Review

Feb -20

Source: seekingalpha.com

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Envestnet Asset Management Inc. Has $11 Million Stock Holdings in ServisFirst Bancshares, Inc. $SFBS

Feb -19

Source: defenseworld.net

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ServisFirst Bancshares (SFBS)'s Technical Outlook is Bright After Key Golden Cross

Feb -16

Source: zacks.com

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Analyzing ServisFirst Bancshares (NYSE:SFBS) and LifeStore Financial Group (OTCMKTS:LSFG)

Feb -13

Source: defenseworld.net

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Critical Contrast: ServisFirst Bancshares (NYSE:SFBS) versus Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL)

Feb -10

Source: defenseworld.net

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Southern Banc (OTCMKTS:SRNN) vs. ServisFirst Bancshares (NYSE:SFBS) Head-To-Head Review

Feb -07

Source: defenseworld.net

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Finding the Best "Strong Buy" Stocks to Buy in February

Feb -03

Source: zacks.com

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What Makes ServisFirst (SFBS) a New Strong Buy Stock

Jan -23

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Commercial Banking

Expected Growth: 13%

Strong loan growth driven by commercial and industrial lending, increased deposits from commercial clients, and expansion into new markets. Additionally, strategic acquisitions and investments in digital banking capabilities have enhanced customer experience, contributing to the 13% growth in Commercial Banking at ServisFirst Bancshares, Inc.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Consumer Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Wealth Management

Provides investment and wealth management services, including trust and estate services.

Mortgage Banking

Offers mortgage lending services, including residential and commercial mortgage loans.

Treasury Management

Provides cash management and treasury services to businesses, including account management and payment processing.

Credit and Lending

Offers credit and lending services, including commercial and consumer loans.

8. ServisFirst Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ServisFirst Bancshares, Inc. is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers for ServisFirst Bancshares, Inc. is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ServisFirst Bancshares, Inc. is low due to the presence of multiple suppliers and the lack of concentration of suppliers.

Threat Of New Entrants

The threat of new entrants for ServisFirst Bancshares, Inc. is high due to the relatively low barriers to entry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for ServisFirst Bancshares, Inc. is high due to the presence of multiple competitors and the high level of competition in the banking industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.95%
Debt Cost 8.53%
Equity Weight 52.05%
Equity Cost 8.53%
WACC 8.53%
Leverage 92.14%

11. Quality Control: ServisFirst Bancshares, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BOK Financial

A-Score: 6.1/10

Value: 6.0

Growth: 7.3

Quality: 6.7

Yield: 4.0

Momentum: 4.5

Volatility: 8.0

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Third Federal

A-Score: 5.9/10

Value: 1.6

Growth: 5.3

Quality: 3.9

Yield: 10.0

Momentum: 5.5

Volatility: 9.3

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First Financial Bankshares

A-Score: 5.6/10

Value: 4.3

Growth: 5.8

Quality: 8.2

Yield: 5.0

Momentum: 2.0

Volatility: 8.3

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Community Bank System

A-Score: 5.4/10

Value: 4.5

Growth: 5.1

Quality: 6.5

Yield: 6.0

Momentum: 2.5

Volatility: 7.7

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Commerce Bancshares

A-Score: 5.3/10

Value: 4.4

Growth: 5.7

Quality: 7.1

Yield: 4.0

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

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ServisFirst Bank

A-Score: 4.9/10

Value: 4.3

Growth: 7.1

Quality: 6.6

Yield: 3.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

86.77$

Current Price

86.77$

Potential

-0.00%

Expected Cash-Flows