ServisFirst Bancshares, Inc. (NYSE: SFBS), a Birmingham, Alabama-based bank holding company, reported Fourth Quarter and Full-Year 2025 Results on January 20, 2026. Shares declined 2.47% in the session as the broader market retreated amid profit-taking following the earnings release.
Market Capitalization
As of January 20, 2026, ServisFirst Bancshares had a market capitalization of approximately $4.17 billion. The company has approximately 54.6 million shares outstanding.
Latest Quarterly Results
Q4 2025 Financial Highlights:
Net Income: $86.4 million, or $1.58 per diluted share, up 33% from $65.2 million, or $1.19 per diluted share in Q4 2024.
Full-Year 2025 Net Income: $276.6 million, or $5.06 per diluted share, up 22% from $227.2 million, or $4.16 per diluted share in 2024.
Net Interest Income: $146.5 million in Q4 2025, up 19% from $123.2 million in Q4 2024.
Net Interest Margin: 3.38% in Q4 2025, up 42 basis points from 2.96% in Q4 2024.
Return on Average Assets: 1.91% for Q4 2025.
Return on Average Common Stockholders’ Equity: 18.93% for Q4 2025.
Efficiency Ratio: 28.78%, improved from 35.54% in Q4 2024.
Balance Sheet Highlights
As of December 31, 2025:
– Total Assets: $17.73 billion (2% YoY growth)
– Total Loans: $13.70 billion (9% YoY growth; 12% annualized growth in Q4)
– Total Deposits: $14.22 billion (5% YoY growth)
– Book Value Per Share: $33.87, up 14% from $29.63 at year-end 2024
– Tangible Book Value Per Share: $33.62
– Cash and Cash Equivalents: $1.63 billion (9% of total assets)
Financial Trends
Chart 1: Quarterly Operating Performance
Chart 2: 3-Month Trading Volume Trend
Full-Year Context
ServisFirst Bancshares delivered record profitability in 2025 driven by significant net interest margin expansion. Full-year net interest income totaled $535.2 million with a net interest margin of 3.12%. The company benefited from declining deposit costs, with cost of interest-bearing deposits falling 62 basis points year-over-year to 3.01% in Q4 2025. Adjusted diluted EPS for 2025 was $5.25, up 26% from $4.18 in 2024.
Business and Operations Update
Asset Quality Metrics:
– Nonperforming Assets to Total Assets: 0.97%
– Net Charge-offs to Average Loans: 0.20% (annualized) for Q4 2025
– Allowance for Credit Losses to Total Loans: 1.25%
– Provision for Credit Losses: $7.9 million in Q4 2025
Capital Position:
– Common Equity Tier 1 Capital Ratio: 11.65%
– Total Risk-Based Capital Ratio: 12.93%
– Tier 1 Capital to Average Assets: 10.26%
– Tangible Common Equity to Tangible Assets: 10.37%
The company maintains no FHLB advances or brokered deposits, underscoring its strong core deposit franchise.
Strategic Expansion
ServisFirst announced its entry into the Texas market during the fourth quarter, led by an experienced team of commercial bankers under Chris Dvorachek. This expansion extends the company’s footprint beyond its current eight-state presence in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, Texas, and Virginia. The company added 36 full-time equivalent employees during the year, bringing total FTE to 666 at year-end.
Institutional Coverage
ServisFirst Bancshares is covered by multiple equity research analysts. The consensus rating is “Hold” with an average 12-month price target of $88.00. The stock has a 52-week range of $66.48 to $93.90.
Guidance and Outlook
Management Commentary:
CEO Tom Broughton stated: “We were pleased with the loan growth in the fourth quarter that was indicative of our improved outlook combined with the hard work of the best bankers in the Southeast.”
CFO David Sparacio added: “The Company has delivered excellent results for the fourth quarter. We continued our focus on net interest margin expansion, which was enhanced by a reduction in benchmark interest rates, and we remain disciplined on expense controls. Continuing our focus as we grow our franchise and gain market share will allow us to deliver solid financial performance in 2026.”
Dividend
The company increased its quarterly cash dividend to $0.38 per share, a 13% increase from $0.335 in the prior quarter. The dividend was paid on January 13, 2026 to shareholders of record as of January 2, 2026. Based on the annualized dividend of $1.52, the current yield is approximately 1.9%.
Performance Summary
ServisFirst Bancshares reported Q4 2025 net income of $86.4 million ($1.58 per diluted share), up 33% year-over-year, and full-year 2025 net income of $276.6 million ($5.06 EPS), up 22% year-over-year. Net interest margin expanded 42 basis points to 3.38% as deposit costs declined. Loans grew 9% year-over-year to $13.70 billion while deposits increased 5% to $14.22 billion. Book value per share rose 14% to $33.87. Capital ratios remain strong with CET1 at 11.65%.