Why the latest earnings matter for ServisFirst Bancshares stock

ServisFirst Bancshares (SFBS) just reported fourth quarter 2025 results that put net interest income at US$146.52 million and net income at US$86.38 million, with earnings per share of US$1.58 from continuing operations.

Investors are also tracking credit costs, as net charge offs for the quarter came in at US$6.68 million compared with US$2.70 million a year earlier. This adds important context to the earnings headline.

At a share price of US$81.85, ServisFirst Bancshares has a 30 day share price return of 13.97% and a 90 day share price return of 16.73%. The 1 year total shareholder return shows a 5.62% decline, which contrasts with a 5 year total shareholder return of 97.52%. This suggests recent momentum has picked up after a weaker year, while long term holders remain ahead overall.

If this earnings move has you thinking about where else to put your capital to work, it could be a good time to scan fast growing stocks with high insider ownership for other potential ideas.

With earnings per share at US$1.58, a recent share price of US$81.85 and both analyst and intrinsic estimates suggesting upside, the question arises: is ServisFirst still undervalued, or is the market already factoring in expectations for future growth?

Most Popular Narrative: 7% Undervalued

Compared with the last close of $81.85, the most followed narrative sets ServisFirst Bancshares' fair value at $88, suggesting some upside still on the table.

Recent strategic bond portfolio restructuring, with reinvestment at much higher yields, sets up for continued net interest margin expansion over coming quarters, especially as legacy, lower-yielding assets mature or reprice, directly benefitting net interest income and future earnings.

Curious what kind of revenue path, profit margins and earnings multiple need to line up for that $88 figure to make sense? The narrative leans on consistent growth, firm profitability and a future valuation profile that sits above many bank peers. Want to see exactly how those moving parts are stitched together into that fair value number?

The narrative applies a 6.96% discount rate and blends expected revenue expansion, relatively high profit margins and a future P/E assumption to get to $88 per share. Your own view on those inputs, especially how quickly earnings could compound and what multiple the market might apply, will determine whether you see that valuation as generous or cautious.

Result: Fair Value of $88 (UNDERVALUED)

However, rising credit costs and ongoing commercial real estate headwinds could pressure net interest income and call that 7% undervaluation into question.

Another angle on ServisFirst’s value

Our SWS DCF model presents a different perspective, with ServisFirst Bancshares trading at $81.85 compared with an estimated future cash flow value of $141.83. That is a large gap, and the shares appear heavily undervalued on this basis. Does that indicate a potential opportunity, or does it simply reflect very optimistic assumptions?

Build Your Own ServisFirst Bancshares Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can build a full narrative in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding ServisFirst Bancshares.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.