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ServisFirst Bancshares
(NYSE:SFBS)
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Rating:73Outperform
Price Target:
$43.00
â–¼(-0.72% Downside)
Action:Reiterated
Date:10/20/26
SFBS scores well primarily on strong financial performance (profitability, growth, and solid cash-to-earnings quality) and a constructive earnings outlook that includes margin expansion and deposit/loan pipeline initiatives. These strengths are partially offset by weak technical momentum (price below key moving averages and negative MACD) and banking-cycle risks around credit resolution and funding/expense variability.
Positive Factors
Loan and interest income growth
Strong loan growth and rising net interest income show continued demand from commercial clients and effective deployment of funding into earning assets. This expands the bank’s recurring revenue base and supports earnings growth, provided credit performance remains controlled.
Negative Factors
Multifamily credit losses
Large multifamily exposures have already produced meaningful charge-offs and require an orderly liquidation process over two to four quarters. Further resolution costs or weaker property performance could pressure provisions, capital efficiency, and earnings during the period ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan and interest income growth
Strong loan growth and rising net interest income show continued demand from commercial clients and effective deployment of funding into earning assets. This expands the bank’s recurring revenue base and supports earnings growth, provided credit performance remains controlled.
Read all positive factors
ServisFirst Bancshares (SFBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.33B
Dividend Yield1.91%
Average Volume (3M)694.03K
Price to Earnings (P/E)12.7
Beta (1Y)0.86
Revenue Growth4.88%
EPS Growth34.03%
CountryUS
Employees675
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.94
Shares Outstanding109,300,000
10 Day Avg. Volume595,425
30 Day Avg. Volume694,032
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)2.12
Price to Sales (P/S)3.86
P/FCF Ratio11.24
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue6.03
Enterprise Value/Gross Profit10.66
Enterprise Value/Ebitda15.70
Forecast
1Y Price Target
$45.50Price Target Upside5.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.21
Revenue Forecast (FY)$677.27M
ServisFirst Bancshares Business Overview & Revenue Model
Company Description
ServisFirst Bancshares, Inc. operates as the parent entity for ServisFirst Bank, providing a comprehensive range of financial solutions to both individual consumers and corporate clients. Its deposit offerings encompass checking, savings, money ma...
How the Company Makes Money
ServisFirst Bancshares makes money primarily through its banking subsidiary by earning net interest income and generating noninterest income.
1) Net interest income (core earnings driver): The bank takes in deposits and other funding sources and ...
ServisFirst Bancshares Earnings Call Summary
Earnings Call Date:Oct 19, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 25, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Earnings, adjusted EPS, revenue, net interest income, loans, capital, tangible book value, noninterest income, and several credit metrics improved, while management highlighted strong pipelines, margin expansion opportunities, Texas growth, and excess capital. Offsetting concerns included muted quarterly loan growth, higher payoffs, municipal deposit attrition, a slight increase in total nonperforming assets, charge-offs tied to large multifamily credits, higher nonrecurring expenses, and ongoing Houston startup losses. Management remained optimistic about future growth and margin expansion despite these challenges.Positive Updates
Strong Quarterly and Year-to-Date Earnings Growth
Third-quarter net income was $87.3 million, or $0.80 per diluted share, up from $0.78 in the second quarter, a 2.6% linked-quarter increase. Adjusted diluted EPS was $0.65 in the year-ago quarter, so adjusted EPS grew 23%. For the first nine months of 2026, net income was $256 million, up 28% from adjusted EPS of $1.84 in 2025.
Negative Updates
Third-Quarter Loan Growth Was Below Expectations
Management said growth in the loan book was lower than desired. Third-quarter loan growth was muted relative to the second quarter because of unexpected payoffs and loans that did not close as expected during the quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Quarterly and Year-to-Date Earnings Growth
Third-quarter net income was $87.3 million, or $0.80 per diluted share, up from $0.78 in the second quarter, a 2.6% linked-quarter increase. Adjusted diluted EPS was $0.65 in the year-ago quarter, so adjusted EPS grew 23%. For the first nine months of 2026, net income was $256 million, up 28% from adjusted EPS of $1.84 in 2025.
Read all positive updates
Company Guidance
Management expects good results from deposit initiatives in the fourth quarter, fourth-quarter deposit growth, and startup losses to begin to decline over the next few quarters; it expects margin expansion into 2027, with a 5 to 7 basis point increase range, although at a slower pace than what we saw earlier in this year, supported by about $1.5 billion of fixed rate, low fixed-rate loans repricing at an average rate of about 5.08% versus a 6.59% going on rate or average rate for renewals and new loans, with 53% of the loan book variable rate. Management expects normalized expenses to stay below 30% efficiency, with about $2 million of onetime nonrecurring costs implying a $50 million, $51 million a quarter run rate; it expects to execute the orderly liquidation process for 8 credits over the next 2 to 4 quarters, and expects the Texas team to have $200 million in the pipeline for the remainder of the year and to get to breakeven by the first or second quarter of next year.ServisFirst Bancshares Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 1.02B | 977.12M | 828.82M | 580.46M | 437.43M |
| Gross Profit | 586.54M | 526.97M | 456.07M | 407.79M | 454.43M | 374.11M |
| EBITDA | 398.29M | 346.86M | 283.77M | 249.02M | 312.95M | 257.74M |
| Net Income | 320.72M | 276.60M | 227.24M | 206.85M | 251.50M | 207.73M |
Balance Sheet | ||||||
| Total Assets | 18.34B | 17.73B | 17.35B | 16.13B | 14.60B | 15.45B |
| Cash, Cash Equivalents and Short-Term Investments | 3.10B | 1.16B | 2.82B | 2.86B | 1.46B | 5.01B |
| Total Debt | 1.61B | 1.51B | 2.06B | 1.32B | 1.68B | 1.78B |
| Total Liabilities | 16.37B | 15.88B | 15.73B | 14.69B | 13.30B | 14.30B |
| Stockholders Equity | 1.98B | 1.85B | 1.62B | 1.44B | 1.30B | 1.15B |
Cash Flow | ||||||
| Free Cash Flow | 465.65M | 349.26M | 248.27M | 193.39M | 268.98M | 256.88M |
| Operating Cash Flow | 472.90M | 355.20M | 252.91M | 197.30M | 272.63M | 266.33M |
| Investing Cash Flow | -1.29B | -1.15B | -948.53M | -200.43M | -2.64B | -1.56B |
| Financing Cash Flow | 558.23M | 49.35M | 941.16M | 1.32B | -1.04B | 3.31B |
ServisFirst Bancshares Technical Analysis
Positive
43.31
Price Trends
41.43
Negative
41.84
Negative
40.35
Negative
Market Momentum
-0.61
Negative
48.80
Neutral
65.88
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 43.31 is above the 20-day moving average (MA) of 39.42, above the 50-day MA of 41.43, and above the 200-day MA of 40.35, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 65.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFBS.
ServisFirst Bancshares Risk Analysis
ServisFirst Bancshares disclosed 38 risk factors in its most recent earnings report. ServisFirst Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ServisFirst Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.33B | 12.67 | 17.61% | 1.91% | 4.88% | 34.03% | |
72 Outperform | $4.28B | 30.13 | 4.03% | 2.82% | -18.50% | -52.84% | |
69 Neutral | $5.95B | 14.40 | 9.34% | 2.70% | -0.63% | -10.24% | |
68 Neutral | $3.69B | 12.00 | 8.13% | 2.33% | 27.48% | 31.72% | |
68 Neutral | $2.58B | 11.50 | 11.98% | 1.57% | 26.41% | 110.85% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $5.41B | 14.55 | 9.25% | 0.99% | 2.30% | -2.55% |
* Financial Sector Average
SFBS
ServisFirst Bancshares
39.79
5.09
14.66%
ABCB
Ameris Bancorp
80.62
8.86
12.35%
HWC
Hancock Whitney
72.30
18.14
33.50%
RNST
Renasant
40.31
6.60
19.57%
UCB
United Community Banks
35.85
6.89
23.80%
FBK
FB Financial
52.10
-1.70
-3.16%
ServisFirst Bancshares Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresStock Split
ServisFirst Bancshares Reports Strong Third-Quarter Results
Positive
Oct 19, 2026
On October 19, 2026, ServisFirst Bancshares reported strong results for the third quarter ended September 30, 2026, highlighted by diluted earnings per share of $0.80, a 33% increase from a year earlier, and net income of $87.3 million, up 33.2% y...
Business Operations and StrategyStock Buyback
ServisFirst Bancshares Launches Inaugural Share Repurchase Program
Positive
Oct 14, 2026
On October 14, 2026, ServisFirst Bancshares, Inc. announced that its Board of Directors had approved the company’s inaugural stock repurchase program for its common shares. The authorization allows ServisFirst to buy back up to two million s...
Business Operations and StrategyDividends
ServisFirst Bancshares Declares Quarterly Cash Dividend
Positive
Sep 22, 2026
On September 21, 2026, ServisFirst Bancshares, Inc., the holding company of ServisFirst Bank, announced that its board of directors declared a quarterly cash dividend of $0.19 per share. The dividend was scheduled to be paid on October 9, 2026, to...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
ServisFirst Bancshares Updates Investor Presentation Highlighting Growth
Positive
Aug 7, 2026
ServisFirst Bancshares, Inc. has released an updated investor presentation in August 2026 that incorporates current-quarter financial data, highlighting total assets of $18.3 billion and stockholders’ equity of $2.0 billion as of June 30, 20...
Business Operations and StrategyDividendsStock Split
ServisFirst Bancshares Announces Two-for-One Stock Split
Positive
Jul 20, 2026
On July 20, 2026, ServisFirst Bancshares, Inc., the regional bank holding company for ServisFirst Bank, declared a two-for-one split of its common stock to be executed as a 100% stock dividend. The move targeted stockholders of record as of August...
Business Operations and StrategyFinancial Disclosures
ServisFirst Bancshares Posts Strong Q2 2026 Results
Positive
Jul 20, 2026
ServisFirst Bancshares, Inc. reported robust second quarter 2026 results on July 20, 2026, highlighted by diluted earnings per share of $1.57, a 40% increase from the prior-year quarter. The bank’s net income rose nearly 40% year-over-year t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.