ServisFirst Q4 adjusted EPS beats estimates

Overview

• U.S. bank holding company's Q4 adjusted EPS beat analyst expectations

• Net interest margin improved to 3.38%, up from Q4 2024

• Company entered Texas market with new team of commercial bankers

Outlook

• ServisFirst Bancshares expects solid financial performance in 2026

Result Drivers

• NET INTEREST MARGIN - Improvement to 3.38% driven by reduction in interest-bearing deposit costs and strategic focus on margin expansion, per CFO David Sparacio

• LOAN GROWTH - Loans grew by $384.9 mln, or 12% annualized, during the quarter, reflecting improved outlook and efforts of banking team, per CEO Tom Broughton

• NON-INTEREST INCOME - Significant increase driven by bank-owned life insurance income, which rose by $6.0 mln, or 282.4%, from Q4 2024

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for ServisFirst Bancshares Inc is $89.00, about 13.7% above its January 16 closing price of $78.26

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX9fnYwM

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