Financial Data and Key Metrics Changes - The company reported earnings per diluted share of $1.58 for Q4 2025, representing a 32% increase from Q3 2025 and a 33% increase from Q4 2024 [9] - Full year earnings per share was $5.25 on an operating basis and $5.06 on a GAAP basis [9] - Net income available to common shareholders was $86.4 million for the quarter and $276.5 million for the year [9] - The tangible book value grew 4% to $33.62 per share [9] - The net interest margin increased from 2.92% in Q1 2025 to 3.38% in Q4 2025 [9][10] Business Line Data and Key Metrics Changes - Loan growth for the quarter was annualized at 12%, with a notable 10% growth in the C&I book during the year, marking the highest growth rate in that segment in several years [4][7] - Non-interest revenue saw a 26% growth from full year 2024 to full year 2025, driven by increased service charges [12] - Non-interest expense remained flat compared to the same quarter last year and increased only 2% for the full year [12] Market Data and Key Metrics Changes - The company has expanded its correspondent banking relationships to 388, including 145 that settle at the Federal Reserve Bank [6] - The new Texas banking team is expected to significantly contribute to growth, with a budgeted growth for 2026 higher than any other region [42] Company Strategy and Development Direction - The company is focused on organic growth, particularly through the expansion in Texas, and aims to attract high-cost deposits back if loan demand remains robust [5][14] - The management is optimistic about the Texas team's performance and anticipates hiring more personnel in the first and second quarters of 2026 [5][42] - The company plans to maintain a strong efficiency ratio while managing expenses related to the new Texas team [44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan demand, particularly in the C&I sector, indicating a positive trend compared to previous quarters [21] - The company is prepared for potential economic fluctuations and is focused on maintaining a disciplined approach to loan pricing and cost management [10][28] - The management expects continued margin expansion throughout 2026, supported by repricing opportunities on low fixed-rate loans [26] Other Important Information - The company recorded net charge-offs of approximately $6.7 million for Q4, primarily related to one credit, with an allowance for loan losses ratio of 1.25% [7][11] - The efficiency ratio dipped below 30% for the quarter, with an adjusted efficiency ratio of around 32% for the full year, marking a 14% improvement over 2024 [10] Q&A Session Summary Question: Trends in loan payoffs and expectations for loan growth - Management noted that projected payoffs have dropped substantially quarter over quarter, indicating a positive trend in loan growth [19] Question: Commercial loan demand outlook - Management rated current commercial loan demand as slightly better than before, particularly in the C&I sector, which has shown significant growth [21] Question: Margin sustainability and fee collection impact - Management indicated that the December margin is a good starting point for 2026, with expectations for continued margin expansion due to disciplined loan pricing [25][26] Question: Charge-off details and non-performing loans - The charge-off was related to a healthcare asset, which was anticipated and reserved for, and management is actively working on a multifamily asset portfolio [32] Question: Tax rate expectations for 2026 - Management plans to continue leveraging tax credits, particularly around solar credits, to manage the tax rate going forward [36] Question: Growth expectations for the Texas team - The Texas team's budgeted growth for 2026 is expected to be higher than any other region, with optimism about their performance in the market [42] Question: Overall expense growth for 2026 - Management anticipates high single-digit expense growth for 2026, primarily due to new hires that are expected to generate revenue [49]

Financial Performance - Net income for Q4 2025 was $86.4 million, a 31.7% increase from Q3 2025 and a 32.5% increase from Q4 2024[6]. - Diluted earnings per share for Q4 2025 reached $1.58, up 33% from Q4 2024 and up 32% from Q3 2025[7]. - Income before income tax for Q4 2025 was $107.6 million, compared to $79.4 million in Q4 2024[22]. - Net income for Q4 2025 was reported at $86,384, compared to $65,571 in Q3 2025, reflecting a 31.5% increase[28]. - Net income for the year ended December 31, 2025, was $276,603,000, a 22% increase from $227,242,000 in 2024[32]. - Basic earnings per common share rose to $5.06 for the year ended December 31, 2025, compared to $4.17 in 2024[32]. Asset and Loan Growth - Loans grew by $384.9 million, or 12% annualized, during Q4 2025, reaching a total of $13.70 billion[12]. - Total loans increased by 9% to $13,696,912,000 from $12,605,836,000 year-over-year[33]. - Total assets increased to $17,727,190, up from $17,584,199 in the previous quarter, representing a growth of 0.81%[24]. - Total assets increased by 2% to $17,727,190,000 from $17,351,643,000 year-over-year[31]. - Total loans net of unearned income reached $13,504,941, a slight increase from $13,205,775 in the previous quarter[38]. Deposits and Liquidity - Total deposits increased by $675.6 million, or 5%, year-over-year, totaling $14.22 billion in Q4 2025[13]. - Total deposits reached $14,219,034, an increase from $14,106,922 in the previous quarter, representing a growth of 0.79%[24]. - Liquidity remains strong with $1.63 billion in cash and cash equivalent assets, representing 9% of total assets[7]. Income and Expense Management - Net interest income for Q4 2025 was $146.5 million, compared to $123.2 million in Q4 2024, reflecting a significant year-over-year increase[22]. - Non-interest income increased by $6.9 million, or 78.2%, to $15.7 million in Q4 2025 from $8.8 million in Q4 2024[15]. - Non-interest expense decreased by $213,000, or 0.5%, to $46.7 million in Q4 2025 from $46.9 million in Q4 2024[16]. - The efficiency ratio improved to 28.78% in Q4 2025 from 35.54% in Q4 2024[16]. - Adjusted net interest income for the period was $162,212 million, compared to $144,093 million in the previous period, reflecting a growth of 12.8%[30]. Credit Quality - Non-performing assets to total assets were 0.97% for Q4 2025, up from 0.26% in Q4 2024[14]. - Annualized net charge-offs to average loans were 0.20% for Q4 2025, compared to 0.09% in Q4 2024[14]. - The allowance for credit losses increased to $171,683 thousand in Q4 2025 from $170,235 thousand in Q3 2025, reflecting a provision for credit losses of $8,130 thousand[35]. - Nonperforming loans to total loans ratio improved to 1.23% in Q4 2025 from 1.26% in Q3 2025, indicating better asset quality[35]. - The provision for credit losses decreased to $7,922 thousand in Q4 2025 from $9,463 thousand in Q3 2025, reflecting improved credit quality[37]. Market Expansion and Workforce - The company entered the Texas market with a new team of commercial bankers[7]. - The number of full-time equivalent employees increased by 36, or 5.7%, to 666 at December 31, 2025, compared to 630 at December 31, 2024[16].

Core Insights - ServisFirst Bancshares, Inc. reported strong financial performance for the fourth quarter of 2025, with significant growth in net income and earnings per share compared to previous periods [3][7][21]. Financial Performance - Net income for the fourth quarter of 2025 was $86.4 million, a 31.7% increase from $65.6 million in the third quarter of 2025 and a 32.5% increase from $65.2 million in the fourth quarter of 2024 [4][7]. - Diluted earnings per share reached $1.58, up 31.7% from $1.20 in the third quarter of 2025 and up 32.8% from $1.19 in the fourth quarter of 2024 [4][7]. - Adjusted net income for the fourth quarter was $86.4 million, reflecting a 20.9% increase from $71.4 million in the fourth quarter of 2024 [6][21]. Loan and Deposit Growth - Loans increased by $384.9 million, or 12% annualized, during the fourth quarter of 2025, reaching a total of $13.70 billion [11][12]. - Total deposits grew by $675.6 million, or 5%, year-over-year, totaling $14.22 billion by the end of the fourth quarter of 2025 [12][21]. Interest Income and Margin - Net interest income for the fourth quarter was $146.5 million, compared to $133.4 million in the third quarter of 2025 and $123.2 million in the fourth quarter of 2024 [9][21]. - The net interest margin improved to 3.38%, up 42 basis points from the fourth quarter of 2024 and 29 basis points from the third quarter of 2025 [5][21]. Efficiency and Cost Management - The efficiency ratio improved to 28.78% in the fourth quarter of 2025, down from 35.54% in the fourth quarter of 2024 [15][21]. - Non-interest expense decreased by $213,000, or 0.5%, to $46.7 million for the fourth quarter of 2025 compared to $46.9 million in the fourth quarter of 2024 [15][21]. Capital and Liquidity - The company maintained strong liquidity with $1.63 billion in cash and cash equivalent assets, representing 9% of total assets [5][21]. - Common equity tier 1 capital to risk-weighted assets increased from 11.49% to 11.65% year-over-year [5][21]. Market Expansion - The company entered the Texas market with a team of commercial bankers, indicating strategic growth and market share expansion [5].

Core Insights - ServisFirst Bancshares (SFBS) is expected to report quarterly earnings of $1.41 per share, reflecting an 18.5% increase year-over-year [1] - Analysts forecast revenues of $152.63 million, indicating a 15.7% year-over-year growth [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analyst projections [1] Financial Metrics - The 'Efficiency Ratio' is projected to be 31.6%, down from 35.5% in the same quarter last year [4] - The estimated 'Average Balance - Interest-earning Assets' is $17.37 billion, compared to $16.53 billion reported in the same quarter last year [4] - The consensus estimate for 'Net Interest Income' is $142.77 million, up from $123.17 million in the same quarter last year [5] - 'Total Non-interest income' is expected to be $9.88 million, an increase from $8.80 million in the previous year [5] Stock Performance - Shares of ServisFirst have returned +0.5% over the past month, while the Zacks S&P 500 composite has changed by +2.1% [5] - ServisFirst holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the overall market in the near future [5]

Market Overview - The U.S. stock markets closed on January 1st, 2026, for New Year's Day, following a four-day losing streak after a strong year in 2025 driven by optimism around artificial intelligence and a resilient economy [1] - The final trading day of 2025 saw U.S. stocks close lower, extending a post-Christmas pullback and dampening hopes for a "Santa Claus Rally" [2] Index Performance - The Dow Jones Industrial Average (DJI) fell by 0.6% to close at 48,063.29, marking a 94.87-point decline, but concluded 2025 with a 13% annual gain [3] - The S&P 500 (SPX) dropped 0.7% to finish at 6,845.50, a decrease of 50.74 points, yet posted a robust 16.4% gain for 2025, marking its third consecutive year of double-digit returns [3] - The Nasdaq Composite (IXIC) led declines, falling 0.8% to 23,241.99, but finished 2025 with a 20.4% rally, largely driven by excitement surrounding artificial intelligence [4] Volatility Index - The CBOE Volatility Index (VIX) increased by 0.9% to 14.33, reflecting underlying caution among investors as they transition into the new year [5] Corporate Developments - Nike (NKE) shares advanced by 4.1% after CEO Elliott Hill purchased approximately $1 million worth of stock, signaling insider confidence [7] - Corcept Therapeutics (CORT) stock plunged after the FDA did not approve its hypercortisolism treatment, highlighting risks in pharmaceutical development [7] - Ares Management Corporation (ARES) shares fell 3.4%, marking it as one of the major losers in the S&P 500 [7] - Micron Technology (MU) was down 2.5% on the final trading day but surged 239% over the year due to advancements in AI [7] - Nvidia (NVDA) finished 2025 up 39% with a valuation of $4.55 trillion, while Alphabet (GOOGL) climbed 65% and Advanced Micro Devices (AMD) rose 77% [7] - Lundin Mining Corporation (LUN) completed its share buyback program for 2025, reducing its issued and outstanding shares [7] - Amplify Energy Corp. (AMPY) closed an amended revolving credit facility, extending its maturity to December 31, 2028 [7] - Mercantile Bank Corporation (MBWM) completed its merger with Eastern Michigan Financial Corporation to enhance its presence in Michigan [7] - TransDigm Group Incorporated (TDG) entered into an agreement to acquire Stellant Systems, Inc. for approximately $960 million in cash [7] - SoftBank Group Corp. completed a $22.5 billion investment in OpenAI, increasing its ownership interest to approximately 11% [7] Upcoming Economic Data - Investors will monitor key economic indicators and corporate earnings reports as markets prepare to reopen, with initial jobless claims and construction data expected on January 2nd [8] - The week will include significant reports such as the ISM Manufacturing Index, ADP National Employment Report, and the Employment Situation report, which are crucial for assessing economic health [11]

Core Viewpoint - ServisFirst Bancshares, Inc. is set to announce its earnings and operating results for the quarter and year ending December 31, 2025, on January 20, 2026, at 4 p.m. ET [1] Group 1: Earnings Announcement - The earnings announcement will be made available on the company's website [1] - A live audio webcast to discuss the earnings and results will take place on January 20, 2026, starting at 5:15 p.m. ET [2] - A replay of the audio webcast will be accessible until January 31, 2026 [2] Group 2: Company Overview - ServisFirst Bancshares, Inc. is a bank holding company located in Birmingham, Alabama [3] - The company, through its subsidiary ServisFirst Bank, offers a range of financial services including commercial and consumer loans, deposits, electronic banking, treasury and cash management services, and correspondent banking services [3] - The bank operates in multiple states including Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia [3] Group 3: Regulatory Filings - ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC) [4] - Copies of the company's filings can be accessed through the SEC's website or the company's own website [4]

Core Insights - U.S. markets are experiencing an upswing, leading investors to seek opportunities in bank stocks, which have shown positive performance after a dip in April due to tariff plans [1] - The optimism in the banking sector is attributed to trade clarity and interest rate cuts by the Federal Reserve, although inflationary pressures and geopolitical uncertainties remain concerns [1] Bank Stocks with Dividend Increases - Investors are advised to focus on fundamentally solid banks that provide robust dividend yields, which can offer stability and income during volatile times [2] - Four bank stocks highlighted for their recent dividend hikes are ServisFirst Bancshares, Fulton Financial Corporation, First Financial Corporation, and Norwood Financial Corp, all of which have seen their stock prices rally over 3% in the past month [3][9] ServisFirst Bancshares, Inc. (SFBS) - Headquartered in Birmingham, AL, SFBS has $17.6 billion in assets as of September 30, 2025 [7] - Announced a quarterly cash dividend of 38 cents per share, a 13.4% increase from the previous payout, with a dividend yield of 1.84% and a payout ratio of 28% [8] - Zacks Consensus Estimate for 2025 sales indicates a 16.2% year-over-year rise, with earnings expected to grow by 21.8% [12] Fulton Financial Corporation (FULT) - Based in Lancaster, PA, FULT has $32 billion in assets and operates 200 financial centers [13] - Announced a quarterly cash dividend of 19 cents per share, a 5.6% increase, with a dividend yield of 3.57% and a payout ratio of 34% [14] - Zacks Consensus Estimate for 2025 sales suggests an 8.5% increase, while earnings are expected to grow by 11.9% [17] First Financial Corporation (THFF) - Operates in Indiana, Illinois, Kentucky, Tennessee, and Georgia with $5.7 billion in assets [18] - Announced a quarterly cash dividend of 56 cents per share, a 9.8% increase, with a dividend yield of 3.19% and a payout ratio of 33% [19] - Zacks Consensus Estimate for 2025 sales indicates an 18.5% rise, with earnings expected to surge by 64.8% [22] Norwood Financial Corp. (NWFL) - Offers a variety of financial services with $2.4 billion in assets as of September 30, 2025 [23] - Announced a quarterly cash dividend of 32 cents per share, a 3.1% increase, with a dividend yield of 4.18% and a payout ratio of 47% [24] - Zacks Consensus Estimate for 2025 sales indicates a 23.1% rise, while earnings are expected to jump by 60.1% [27] Conclusion on Dividend Stocks - Investing in dividend stocks is seen as a prudent strategy for generating steady income and providing a buffer against market risks, although careful selection is necessary to ensure consistent returns [26]

Core Insights - ServisFirst Bancshares, Inc. (SFBS) has approved a quarterly dividend increase to 38 cents per share, marking a 13.4% increase from the previous payout [1][10] - The company has consistently raised its dividend annually since 2014, with a five-year annualized dividend growth rate of 12.81% [2][6] - SFBS maintains a conservative payout ratio of 28%, allowing for earnings volatility management while supporting dividend growth [2][10] Dividend Policy - The latest dividend increase will be paid on January 13, 2026, to shareholders of record as of January 2, 2026 [1][10] - Prior to this increase, the dividend was raised by nearly 11.7% to 34 cents per share in December 2024 [2] - The current dividend yield stands at 1.79%, based on a closing price of $74.76 [2] Financial Position - As of September 30, 2025, SFBS reported total debt of $1.55 billion and cash and cash equivalents of $1.77 billion, indicating strong liquidity [4][10] - The bank's capital ratios are robust, with a Tier 1 capital to average assets ratio of 10.01% and a common equity tier 1 (CET1) capital to risk-weighted assets ratio of 11.49% [5] - All capital ratios are above regulatory minimum requirements, ensuring financial stability [5][6] Peer Comparison - SFBS's peers, such as Citizens Community Bancorp (CZWI) and Banner Corporation (BANR), also return capital to shareholders through dividends and share repurchases [7] - Citizens Community raised its annual dividend by 12.5% in January 2025, with a current dividend yield of 1.95% and a payout ratio of 28% [8] - Banner Corporation increased its quarterly dividend by 4% to 50 cents per share in October 2025, offering a dividend yield of 2.99% with a payout ratio of 35% [11] Price Performance - Over the past six months, SFBS shares have increased by 3.4%, while the industry has seen a growth of 13.2% [12]

Core Insights - ServisFirst Bank is expanding into Texas with a new office in Houston, marking a significant milestone in its growth strategy [1][2] - Christopher Dvorachek has been appointed as Regional CEO for Texas, bringing three decades of commercial banking experience [1][2] - The bank aims to leverage Texas's dynamic economy and has assembled a strong team to support its operations in the region [2] Company Overview - ServisFirst Bank is a full-service commercial bank with assets exceeding $18 billion, focusing on commercial banking, correspondent banking, treasury management, and private banking [4][5] - The bank emphasizes competitive products, state-of-the-art technology, and quality service [4] - ServisFirst Bank has a presence in multiple states, including Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia [5] Leadership and Team - Christopher Dvorachek, as Regional CEO, is expected to drive market expansion and lead new initiatives in Texas [1][2] - The initial team supporting the Texas expansion includes experienced professionals in commercial banking and treasury management [8] - Key team members include Steven Taylor, Lori Christian, Michael Reyes, Dena Chapa, Lorena Chavez, Sherien Owida, and Morgan Gonzales, each bringing extensive experience in their respective fields [8]

Core Viewpoint - ServisFirst Bank announces significant leadership appointments to enhance its strategic growth and client relationships, positioning itself for long-term success [2][3]. Leadership Appointments - Hal Clemmer appointed as Chief Banking Officer, responsible for overall banking strategy and growth initiatives, with 35 years of banking experience and a track record of market expansion [3][4]. - Bart McBride named Sales Manager, tasked with directing enterprise sales strategy and enhancing sales processes, bringing 22 years of banking experience [4]. - Harrison Morris appointed as Regional CEO for South Alabama, overseeing regional strategy and market growth, with a history of leadership in the Dothan area [5]. Company Overview - ServisFirst Bank is a full-service commercial bank with assets exceeding $18 billion, focusing on commercial banking, treasury management, and private banking [9]. - The bank has a presence in multiple states including Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia, and has received investment-grade ratings from Kroll Bond Rating Agency [10].