Regional banking company ServisFirst Bancshares (NYSE: SFBS) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 22.9% year on year to $162.2 million. Its non-GAAP profit of $1.58 per share was 14.2% above analysts’ consensus estimates.
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ServisFirst Bancshares (SFBS) Q4 CY2025 Highlights:
- Net Interest Income: $146.5 million vs analyst estimates of $142 million (19% year-on-year growth, 3.2% beat)
- Net Interest Margin: 3.4% vs analyst estimates of 3.3% (11.3 basis point beat)
- Revenue: $162.2 million vs analyst estimates of $151.8 million (22.9% year-on-year growth, 6.8% beat)
- Efficiency Ratio: 28.8% vs analyst estimates of 31.8% (298.7 basis point beat)
- Adjusted EPS: $1.58 vs analyst estimates of $1.38 (14.2% beat)
- Tangible Book Value per Share: $33.62 vs analyst estimates of $33.42 (14.5% year-on-year growth, 0.6% beat)
- Market Capitalization: $4.27 billion
Tom Broughton, Chairman, President, and CEO, said, “We were pleased with the loan growth in the fourth quarter that was indicative of our improved outlook combined with the hard work of the best bankers in the Southeast.”
Company Overview
Founded in 2005 with a focus on serving underserved mid-sized businesses, ServisFirst Bancshares (NYSE: SFBS) is a bank holding company that provides commercial banking services to businesses and professionals through its subsidiary ServisFirst Bank.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Unfortunately, ServisFirst Bancshares’s 9.4% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the banking sector and is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. ServisFirst Bancshares’s annualized revenue growth of 14.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, ServisFirst Bancshares reported robust year-on-year revenue growth of 22.9%, and its $162.2 million of revenue topped Wall Street estimates by 6.8%.
Net interest income made up 92.8% of the company’s total revenue during the last five years, meaning ServisFirst Bancshares lives and dies by its lending activities because non-interest income barely moves the needle.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
ServisFirst Bancshares’s TBVPS grew at an incredible 13.1% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 13.3% annually from $26.19 to $33.62 per share.
Over the next 12 months, Consensus estimates call for ServisFirst Bancshares’s TBVPS to grow by 13.5% to $38.14, decent growth rate.
Key Takeaways from ServisFirst Bancshares’s Q4 Results
We were impressed by how significantly ServisFirst Bancshares blew past analysts’ revenue expectations this quarter. We were also glad its net interest income outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock remained flat at $76.38 immediately following the results.
Is ServisFirst Bancshares an attractive investment opportunity right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
