5 Thought-Provoking Analyst Inquiries From ServisFirst Bancshares’s Q4 Earnings Conference

ServisFirst Bancshares Reports Robust Q4 Performance

ServisFirst Bancshares posted impressive results for the fourth quarter, with leadership crediting the success to prudent loan expansion, wider net interest margins, and effective cost management. The company achieved an annualized loan growth rate of 12% during the quarter, alongside lower deposit costs and better efficiency ratios. CEO Tom Broughton noted the bank’s progress in reducing expensive deposits and highlighted the promising start made by the new Texas banking division. CFO David Sparacio explained that the growth in net interest margin was fueled by strategic loan repricing and decreased costs on interest-bearing deposits, while noninterest income saw gains from higher service charges and increased mortgage banking activity.

Curious if now is the right moment to invest in SFBS?

Key Q4 2025 Highlights for ServisFirst Bancshares (SFBS)

• Total Revenue: $159.3 million, surpassing analyst expectations of $151.8 million (20.7% year-over-year growth, 5% above estimates)
• Adjusted Earnings Per Share: $1.58, beating the $1.38 consensus (14.2% higher than projected)
• Adjusted Operating Income: $104.7 million, exceeding the $103.6 million estimate (65.7% margin, 1.1% above forecast)
• Market Value: $4.47 billion

While management’s prepared remarks are insightful, analyst Q&A sessions often reveal deeper insights and address challenging topics. Here are some of the most notable questions from the latest earnings call.

Top 5 Analyst Questions from the Q4 Earnings Call

• David Bishop (Hovde Group): Asked about trends in loan payoffs and expectations for loan growth in early 2026. CEO Tom Broughton shared that anticipated payoffs have decreased, strengthening the loan pipeline, but noted that predicting payoffs remains challenging.
• David Bishop (Hovde Group): Inquired about demand in commercial and industrial (C&I) and commercial real estate (CRE) lending. Broughton reported that C&I demand has improved significantly, describing it as an "A minus," marking the best growth in this segment in recent years.
• Stephen Moss (Raymond James): Questioned whether margin expansion was aided by increased loan fee collections and if this trend would persist. CFO David Sparacio confirmed that fee incentives contributed to margin growth and anticipates further expansion as loan repricing continues into 2026.
• Stephen Moss (Raymond James): Asked about the sustainability of expense growth and its effect on efficiency. Sparacio projected that expenses would rise at a high single-digit rate, mainly due to hiring revenue-generating staff, and expects the efficiency ratio to remain in the low 30% range as new markets develop.
• Stephen Moss (Raymond James): Sought clarification on charge-offs and credit quality, particularly regarding a healthcare asset and multifamily loans. Management responded that the charge-off was anticipated and largely reserved for, and that they are actively working to resolve multifamily exposures through asset sales.

Upcoming Catalysts to Watch

Looking ahead, our focus will be on several key areas: (1) the speed and profitability of the Texas market expansion, including how well new hires are integrated and perform; (2) continued net interest margin improvement through loan repricing and disciplined deposit management; and (3) shifts in credit quality, especially as the company addresses legacy nonperforming assets and further diversifies its loan portfolio. Strategic recruitment and operational efficiency will also remain important indicators of execution.

ServisFirst Bancshares is currently trading at $81.86, up from $76.33 prior to the earnings release. Is the company at a pivotal moment for investors?

Top Stocks for Quality-Focused Investors

Explore our curated selection of Top 5 Strong Momentum Stocks for this week. These high-quality picks have delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Our list features well-known performers like Nvidia, which soared 1,326% from June 2020 to June 2025, as well as lesser-known companies such as Exlservice, which achieved a 354% five-year return. Discover your next standout investment with StockStory.