ServisFirst Bancshares (SFBS) AI Stock Analysis

• Market Cap: $4.42B
• Dividend Yield: 1.82%
• Average Volume (3M): 283.80K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.99
• 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: 54,621,834
• 10 Day Avg. Volume: 441,439
• 30 Day Avg. Volume: 283,804
• PEG Ratio: 0.66
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 3.86
• P/FCF Ratio: 11.05
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 5.74
• Enterprise Value/Gross Profit: 11.07
• Enterprise Value/Ebitda: 16.89
• 1Y Price Target: $91.00
• Price Target Upside: 12.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 6.35
• Revenue Forecast (FY): $657.26M

• Rating: 75 Outperform
• Price Target: $97.00 ▲(19.74% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance momentum and a constructive earnings outlook (margin expansion and repricing opportunity, improving efficiency, and solid capital/liquidity). Technicals support the view with a clear uptrend. Valuation is reasonable but not compelling, and credit concentration/expense ramp risks temper the overall score.

Positive Factors

Large Repricing Opportunity (Margin Expansion)

A roughly $2.0B repricing runway is a durable earnings lever: as lower‑rate, fixed loans and covenant/modification balances reprice closer to current market yields, sustainable net interest income and NIM can expand materially, supporting longer‑term ROA/ROE improvements beyond one quarter.

Strong Cash Generation

Consistent, above‑earnings free cash flow indicates durable internal funding for dividends, loan growth, and capital build. Strong FCF to net income supports flexibility for organic expansion and reserves through cycles, reducing reliance on volatile wholesale funding sources.

Efficient, Scalable Branch‑Light Model

A branch‑light, deposit‑dense model and sustained efficiency gains convey structural cost advantage. Lower operating expense per dollar of assets increases long‑term operating leverage, enabling competitive pricing or margin retention while supporting measured geographic expansion.

Negative Factors

Credit Concentration Risk

A material NPA increase driven by one borrower creates persistent downside risk: localized losses can force higher provisions, constrain capital deployment, and increase volatility in earnings and credit metrics until exposures are resolved or diversified away.

Earnings Sensitivity to Rate and Credit Cycles

Reported margin and leverage variability signals structural sensitivity: changes in benchmark rates, deposit behavior, or credit performance can compress NIM and ROE. This cyclicality reduces predictability of multi‑period earnings and may require higher capital buffers during stress.

Expansion Expense and Liability Sensitivity

Aggressive market expansion and budgeted expense growth create near‑term profitability drag and execution risk. Combined with elevated deposit beta, funding costs may rise with rate moves, pressuring margins until new markets scale and deposit mixes stabilize.

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 generates revenue primarily through net interest income, which is derived from the interest earned on loans and other interest-earning assets minus the interest paid on deposits and borrowings. Key revenue streams include commercial loans, residential mortgages, and consumer loans. Additionally, the bank earns non-interest income from fees related to banking services, wealth management, and investment services. Significant partnerships with local businesses and organizations enhance its customer base and drive growth in deposits and loans, contributing further to its earnings.

ServisFirst Bancshares Financial Statement Overview

Summary

Strong TTM revenue growth and improved profitability, supported by healthy ROE and solid free-cash-flow generation that broadly tracks earnings. Main risk is cyclicality: margins and leverage have varied meaningfully over time, implying sensitivity to rate/credit conditions.

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	355.20M	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: Neutral
• Last Price: 81.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 81.01 is below the 20-day moving average (MA) of 85.09, above the 50-day MA of 79.83, and above the 200-day MA of 77.79, indicating a neutral trend. The MACD of 1.06 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 41.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$4.92B	10.99	16.75%	―	1.66%	-9.31%
IBOC	76 Outperform	$4.17B	10.13	14.31%	2.03%	0.99%	4.94%
SFBS	75 Outperform	$4.42B	16.01	15.24%	1.82%	3.97%	24.91%
ABCB	71 Outperform	$5.27B	12.95	10.53%	1.02%	2.20%	20.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BANF	65 Neutral	$3.69B	15.47	13.85%	1.70%	6.55%	12.94%
AUB	63 Neutral	$5.28B	18.28	6.72%	3.83%	43.53%	-21.74%

ServisFirst Bancshares Corporate Events

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.

ServisFirst Bancshares Increases Quarterly Dividend by 13.4%

On December 15, 2025, ServisFirst Bancshares, Inc. announced an increase in its quarterly cash dividend by 13.4%, raising it from $0.335 to $0.38 per share. This decision reflects the company’s ongoing commitment to returning value to its shareholders, with the dividend payable on January 13, 2026, to stockholders of record as of January 2, 2026.

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.