Why ServisFirst Bancshares Stock Popped Today
Key Points
ServisFirst is improving its margins as it expands its lending operations.
Expense controls are helping to drive the bank's earnings higher.
- 10 stocks we like better than ServisFirst Bancshares ›
ServisFirst Bancshares (NYSE: SFBS) jumped on Wednesday after the Alabama-based bank holding company announced strong fourth-quarter results.
By the close of trading, ServisFirst's stock price was up more than 14%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
ServisFirst's solid operating performance
ServisFirst's deposits rose by 5% year over year to $675.6 million, while its loans increased by 12% to $384.9 million.
The bank's net interest margin, an important profitability metric for lenders, increased by 42 basis points to 3.38%, as interest rates declined.
ServisFirst's earnings per share, in turn, surged by 33% to $1.58.
Management is focused on disciplined execution
Impressively, the financial services provider's efficiency ratio, which measures non-interest expenses relative to revenue, improved to 29% from 36% in the year-ago quarter.
"We continued our focus on net interest margin expansion, which was enhanced by a reduction in benchmark interest rates, and we remain disciplined on expense controls," chief financial officer David Sparacio said in a press release.
Delivering handsome returns to shareowners
This strong operating performance helped to drive ServisFirst's return on average common stockholders' equity to 18.9% from 16.3% in the prior-year period.
The well-run bank, in turn, was able to reward its shareholders with a 13% dividend raise to $0.38 per share.
Should you buy stock in ServisFirst Bancshares right now?
Before you buy stock in ServisFirst Bancshares, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ServisFirst Bancshares wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $470,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,091,605!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 21, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
