ServisFirst Bancshares (SFBS) Q4 2025 earnings summary

Executive summary

• Q4 diluted EPS was $1.58, up 33% year-over-year and 32% sequentially; full-year EPS was $5.25 (operating) and $5.06 (GAAP), both up over 22% year-over-year.

• Net income for Q4 was $86.4 million, up 32.5% year-over-year.

• Achieved strong loan growth with annualized 12% increase in Q4 and robust C&I loan expansion, with optimism for continued improvement in 2026.

• Managed down high-cost deposits and grew total deposits by 5% year-over-year, while maintaining strong liquidity and no reliance on brokered deposits or FHLB debt.

• Expanded into Texas with a new, experienced banking team, expecting this region to drive the highest growth in 2026.

Financial highlights

• Net interest margin expanded from 2.92% in Q1 to 3.38% in Q4, up 42 bps year-over-year, driven by disciplined loan pricing and deposit rate reductions.

• Net interest income for Q4 was $146.5 million, up from $123.2 million in Q4 2024.

• Non-interest revenue rose 12% for the year, with service charges up 26% and mortgage banking fee income up 11% year-over-year.

• Non-interest income rose 78.2% year-over-year to $15.7 million, driven by BOLI income.

• Cash dividend increased 13% to $0.38 per share.

Outlook and guidance

• Expect continued margin expansion in 2026, supported by $2 billion in loan repricing opportunities and aggressive deposit cost management.

• Efficiency ratio projected to be between 30% and 33% in 2026 as Texas expansion ramps up.

• High single-digit expense growth anticipated for 2026, with new hires focused on revenue generation.

• Management expects continued focus on net interest margin expansion and disciplined expense controls to drive solid financial performance in 2026.

• Texas region budgeted for the highest growth among all regions in 2026, primarily in C&I lending.