ServisFirst Bancshares (SFBS) AI Stock Analysis

• Market Cap: $4.47B
• Dividend Yield: 1.82%
• Average Volume (3M): 283.80K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.94
• 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: 0.00
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 5.78
• Enterprise Value/Gross Profit: 11.16
• Enterprise Value/Ebitda: 17.02
• 1Y Price Target: $91.00
• Price Target Upside: 11.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $98.00 ▲(19.73% Upside)

Overall score is driven primarily by strong profitability/cash-flow conversion and improved leverage, reinforced by a constructive earnings outlook for margin expansion and repricing upside. The score is tempered by the recent TTM revenue decline, credit headwinds noted on the call, and technically overbought momentum signals despite a strong uptrend.

Positive Factors

High profitability and cash conversion

Sustained high net margins and near-total conversion of earnings into free cash flow strengthen the bank’s ability to fund organic growth, dividends, and loan loss absorption. Durable cash generation underpins capital allocation flexibility and resilience through economic cycles.

Large loan repricing opportunity to boost margins

A sizable, identifiable repricing runway (~$2B) offers structural NIM uplift as rates normalize. Capturing higher yields on repriced loans provides a multi-quarter tailwind to net interest income, supporting sustainable margin expansion and predictable earnings leverage.

Strong capital, liquidity and funding profile

Solid capital ratios, rising tangible book value and ample liquid assets reduce solvency and funding risk, enabling prudent loan growth and shareholder returns. Absence of brokered funding and FHLB reliance lowers structural liquidity vulnerability over the medium term.

Negative Factors

TTM revenue decline

A pronounced trailing revenue contraction signals potential structural headwinds to top-line sustainability. If revenue base remains depressed, margin and profit growth will rely heavily on repricing and cost control, increasing execution risk and compressing long-term growth optionality.

Concentrated credit stress and rising NPAs

Concentration in a single problematic borrower that materially raised NPAs creates idiosyncratic downside risk. Such concentrated losses can erode capital, force higher provisions, and increase regulatory and underwriting scrutiny, making credit metrics more volatile over quarters.

Expansion and liability sensitivity raise near-term cost risk

Aggressive regional expansion with upfront hiring and planned expense growth will pressure near-term efficiency and returns. Elevated deposit beta and liability sensitivity mean funding costs could rise with rates, squeezing margins while the new footprint scales to profitability.

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 profitability and operating efficiency (TTM net margin 25.56%, solid EBIT/EBITDA margins) and robust cash generation (TTM free cash flow growth 24.33%, FCF to net income 97.9%). Leverage improved (debt-to-equity down to 0.87) and ROE is solid (15.05%), but TTM revenue declined (-23.8%), creating a clear growth risk.

Income Statement

ServisFirst Bancshares shows strong profitability with a TTM net profit margin of 25.56% and a gross profit margin of 49.54%. However, the revenue growth rate has declined by 23.8% in the TTM, indicating potential challenges in revenue generation. Despite this, the company maintains solid EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.87 in the TTM, down from 1.27 in 2024, indicating better leverage management. Return on equity remains strong at 15.05%, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, limiting a full assessment of asset financing.

Cash Flow

ServisFirst Bancshares demonstrates robust cash flow management with a free cash flow growth rate of 24.33% in the TTM. The free cash flow to net income ratio is high at 97.9%, indicating efficient conversion of income into cash flow. However, the operating cash flow to net income ratio is not available, which could provide further insights into cash flow stability.

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	0.00	248.27M	193.39M	268.98M	256.88M
Operating Cash Flow	0.00	252.91M	197.30M	272.63M	266.33M
Investing Cash Flow	0.00	-948.53M	-200.43M	-2.64B	-1.56B
Financing Cash Flow	0.00	941.16M	1.32B	-1.04B	3.31B

ServisFirst Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFBS, the sentiment is Positive. The current price of 81.85 is above the 20-day moving average (MA) of 78.39, above the 50-day MA of 74.56, and above the 200-day MA of 76.45, indicating a bullish trend. The MACD of 2.31 indicates Negative momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 41.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFBS.

ServisFirst Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUB	77 Outperform	$5.54B	19.16	6.72%	3.83%	43.53%	-21.74%
ABCB	75 Outperform	$5.51B	13.44	10.53%	1.02%	2.20%	20.88%
AX	75 Outperform	$5.61B	12.53	16.75%	―	1.66%	-9.31%
SFBS	73 Outperform	$4.47B	16.18	15.24%	1.82%	3.97%	24.91%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IBOC	67 Neutral	$4.33B	10.31	14.31%	2.03%	0.99%	4.94%
BANF	64 Neutral	$3.67B	15.46	13.85%	1.70%	6.55%	12.94%

ServisFirst Bancshares Corporate Events

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.

ServisFirst Bancshares Updates Investor Presentation for Growth

ServisFirst Bancshares, Inc. has updated its investor presentation to include current quarter financial data, reflecting its continued growth and strategic focus on expanding in metropolitan markets. The company’s consistent profitability and asset growth, along with its disciplined business strategy, highlight its strong market positioning and commitment to shareholder value, as evidenced by significant increases in tangible book value and stock price since its inception.

The most recent analyst rating on (SFBS) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on ServisFirst Bancshares stock, see the SFBS Stock Forecast page.