ServisFirst Bancshares (SFBS) AI Stock Analysis

• Market Cap: $3.95B
• Dividend Yield: 1.82%
• Average Volume (3M): 309.64K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.03
• Revenue Growth: 3.97%
• EPS Growth: 24.91%
• Country: US
• Employees: 636
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.58
• Shares Outstanding: 54,640,526
• 10 Day Avg. Volume: 250,678
• 30 Day Avg. Volume: 309,642
• PEG Ratio: 0.66
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 3.86
• P/FCF Ratio: 11.24
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 5.27
• Enterprise Value/Gross Profit: 10.17
• Enterprise Value/Ebitda: 15.52
• 1Y Price Target: $92.00
• Price Target Upside: 27.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 6.35
• Revenue Forecast (FY): $657.26M

• Rating: 65 Neutral
• Price Target: $79.00 ▲(9.27% Upside)
• Action: Downgraded Date: 03/17/26
• Date: Action: Downgraded 03/17/26

The score is supported by strong recent financial performance and a constructive earnings outlook centered on further net interest margin expansion and repricing-driven upside. The main offset is notably weak technical momentum (price below key moving averages with bearish MACD), with additional risk from localized credit pressure (higher NPAs/charge-offs) and near-term expense drag from expansion plans.

Positive Factors

Profitability & margins

Sustained high TTM net and operating margins indicate the bank’s core lending and fee model is currently efficient. Durable margin strength supports internal capital generation, dividend capacity, and reinvestment, reducing reliance on external funding through multiple rate cycles.

Strong cash generation

Robust free cash flow relative to net income demonstrates consistent ability to convert earnings into liquidity. This underpins dividend policy, funds organic growth, and provides a buffer for credit stress or strategic hires without immediate capital raises.

Repricing opportunity and loan momentum

A sizable near-term repricing and a growing pipeline create structurally higher NIM potential as legacy low-yield loans reset. Combined with demonstrated loan growth, this supports sustainable interest-income expansion and reduces sensitivity to short-term market swings.

Negative Factors

Concentrated credit exposure

A material rise in NPAs tied to one borrower highlights concentration risk in commercial CRE/merchant-developer lending. Such single-name stress can trigger outsized provisions, restrict underwriting appetite, and increase capital volatility until fully resolved or diversified.

Elevated charge-offs & provisions

Recurring charge-offs and active CECL provisioning increase the bank’s cost of credit and create earnings volatility. Persistently higher credit costs could erode net margins and slow capital accumulation, forcing tighter underwriting or higher loan-loss reserves over multiple quarters.

Expansion expense drag and liability sensitivity

Investing to enter Texas will raise operating expenses and compress near-term efficiency, while elevated deposit beta signals liability sensitivity. Together these create a structural tradeoff: growth investments could pressure margins if funding costs reaccelerate.

ServisFirst Bancshares Business Overview & Revenue Model

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.

How the Company Makes Money

ServisFirst Bancshares primarily makes money through its banking subsidiary by generating net interest income and noninterest income. Net interest income is earned from the spread between interest income on loans and investment securities and interest expense paid on funding sources such as customer deposits and other borrowings; this spread is influenced by loan and deposit volumes, pricing, and changes in market interest rates. A significant portion of interest income typically comes from commercial and commercial real estate lending, as well as other loan categories the bank originates and holds on its balance sheet, while deposits (including noninterest-bearing and interest-bearing accounts) are a key, generally lower-cost funding source. In addition to net interest income, the company earns noninterest income from banking-related fees and service charges, which can include deposit account service charges, fees associated with card and payment services, and other service-based revenues tied to customer activity. The company also incurs noninterest expense (such as personnel, occupancy, technology, and credit-loss provisions), and profitability depends on maintaining credit quality and managing funding and operating costs. Significant partnerships or specific third-party revenue arrangements: null.

ServisFirst Bancshares Financial Statement Overview

Summary

Strong recent fundamentals: TTM revenue surged (~184% vs prior annual period) with improved profitability (net margin ~27.2%) and solid operating margin (mid-30% range). Balance sheet is healthier with lower debt-to-equity (~0.81) and improving ROE (~15.8%). Cash generation is supportive (TTM FCF ~$351M roughly tracking net income), but results show meaningful cyclicality/volatility in margins and leverage across years.

Income Statement

Revenue growth is strong in TTM (Trailing-Twelve-Months) (up ~184% versus the prior annual period), with profitability also improving: net margin rose to ~27.2% from ~23.3% (2024). Operating profitability is solid with TTM operating margin around the mid-30% range. The key weakness is margin volatility over time—2020–2022 margins were unusually high, then stepped down in 2023–2025, suggesting earnings power is sensitive to the rate/credit cycle rather than steadily expanding.

Balance Sheet

Leverage has improved meaningfully: debt-to-equity declined to ~0.81 in TTM (Trailing-Twelve-Months) from ~1.27 in 2024, and equity has been building. Returns remain healthy for a regional bank, with return on equity improving to ~15.8% in TTM (Trailing-Twelve-Months) from ~14.1% in 2024. The main offset is that leverage and asset expansion have fluctuated across years (debt-to-equity ranged roughly ~0.9 to ~1.5 historically), indicating balance-sheet risk can rise in certain environments.

Cash Flow

Cash generation is strong: free cash flow in TTM (Trailing-Twelve-Months) (~$351M) exceeds net income (free cash flow to net income ~1.0), and free cash flow growth is very strong versus the prior annual period. Operating cash flow also stepped up materially year-over-year. A watch item is that operating cash flow is small relative to the balance sheet (low operating cash flow relative to assets), which is common in banking but still suggests liquidity/cash conversion should be monitored through cycles.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.02B	977.12M	828.82M	580.46M	437.43M
Gross Profit	526.97M	456.07M	407.79M	454.43M	374.11M
EBITDA	342.13M	283.77M	249.02M	312.95M	257.74M
Net Income	276.60M	227.24M	206.85M	251.50M	207.73M
Balance Sheet
Total Assets	17.73B	17.35B	16.13B	14.60B	15.45B
Cash, Cash Equivalents and Short-Term Investments	1.16B	2.82B	2.86B	1.46B	5.01B
Total Debt	1.51B	2.06B	1.32B	1.68B	1.78B
Total Liabilities	15.88B	15.73B	14.69B	13.30B	14.30B
Stockholders Equity	1.85B	1.62B	1.44B	1.30B	1.15B
Cash Flow
Free Cash Flow	349.26M	248.27M	193.39M	268.98M	256.88M
Operating Cash Flow	355.20M	252.91M	197.30M	272.63M	266.33M
Investing Cash Flow	-1.15B	-948.53M	-200.43M	-2.64B	-1.56B
Financing Cash Flow	49.35M	941.16M	1.32B	-1.04B	3.31B

ServisFirst Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFBS, the sentiment is Negative. The current price of 72.3 is below the 20-day moving average (MA) of 78.19, below the 50-day MA of 80.50, and below the 200-day MA of 77.87, indicating a bearish trend. The MACD of -2.76 indicates Positive momentum. The RSI at 32.00 is Neutral, neither overbought nor oversold. The STOCH value of 23.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFBS.

ServisFirst Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AX	78 Outperform	$4.71B	9.54	16.59%	―	1.66%	-9.31%
IBOC	76 Outperform	$4.16B	10.04	14.31%	2.03%	0.99%	4.94%
ABCB	71 Outperform	$5.07B	12.33	10.41%	1.02%	2.20%	20.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFBS	65 Neutral	$3.95B	14.19	15.96%	1.82%	3.97%	24.91%
BANF	65 Neutral	$3.50B	14.89	13.85%	1.70%	6.55%	12.94%
AUB	63 Neutral	$4.87B	11.17	6.10%	3.83%	43.53%	-21.74%

ServisFirst Bancshares Corporate Events

ServisFirst Bancshares Declares Quarterly Cash Dividend for Q1

On March 16, 2026, ServisFirst Bancshares, Inc., the Birmingham, Alabama-based bank holding company for ServisFirst Bank, reported that its board of directors declared a quarterly cash dividend of $0.38 per share. The dividend is scheduled to be paid on April 13, 2026, to shareholders of record as of April 1, 2026, marking a continued return of capital to investors.

The announcement underscores ServisFirst’s ongoing commitment to shareholder remuneration, which may signal confidence in its earnings stability and capital position. For income-focused investors and regional banking stakeholders, the declared dividend for the first quarter of 2026 reflects the company’s current approach to balancing growth in its multi-state banking operations with regular cash distributions.

The most recent analyst rating on (SFBS) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on ServisFirst Bancshares stock, see the SFBS Stock Forecast page.

ServisFirst Updates Investor Presentation Highlighting Continued Growth

ServisFirst Bancshares, Inc. has updated its investor presentation as of February 2026 to incorporate current-quarter financial data, highlighting total assets of $17.7 billion and stockholders’ equity of $1.9 billion as of December 31, 2025, along with a 1.56% return on average assets and a 32.89% efficiency ratio. The materials underscore two decades of largely organic growth since the bank’s 2005 founding, including a 23% compound annual asset growth rate, consistent profitability, expansion to 35 banking locations across eight states in the Southeast, and steadily rising tangible book value, earnings and dividends, reinforcing its positioning as a high-performing, cost-conscious regional commercial bank.

Management details a simple, scalable business model centered on loans and deposits, commercial banking services for mid-market customers and a “branch light” structure with high deposits per location, designed to maintain strong efficiency and risk discipline. The updated presentation, furnished under Regulation FD, is intended to support ongoing discussions with investors and provides additional non-GAAP metrics and long-term performance trends that may inform stakeholder assessments of ServisFirst’s growth trajectory and shareholder value creation.

The most recent analyst rating on (SFBS) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on ServisFirst Bancshares stock, see the SFBS Stock Forecast page.

ServisFirst Bancshares posts strong Q4 2025 earnings

On January 20, 2026, ServisFirst Bancshares reported strong fourth-quarter and full-year 2025 results, highlighted by a 22% year-over-year increase in diluted earnings per share to $5.06 and a 26% rise in adjusted diluted EPS. For the fourth quarter, diluted EPS climbed 33% from a year earlier to $1.58, net interest margin expanded to 3.38%, the efficiency ratio improved to 29%, and the cost of interest-bearing deposits fell to 3.01%, while loans grew at a 12% annualized pace and deposits rose 5% year over year. The company increased its quarterly cash dividend by 13%, expanded into the Texas market with a new commercial banking team, and strengthened its balance sheet, with book value per share up 14%, liquidity at 9% of total assets with no FHLB advances or brokered deposits, and common equity tier 1 capital rising to 11.65%, underscoring improved profitability and competitive positioning in its core markets.

The most recent analyst rating on (SFBS) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on ServisFirst Bancshares stock, see the SFBS Stock Forecast page.