New York, January 21, 2026, 12:35 EST — Regular session.
- Shares of SFBS jumped in midday trading following the bank’s release of its fourth-quarter results late Tuesday.
- Deposit costs and net interest margin have become key focus areas for investors watching regional banks amid shifting rates.
- Following the report, Raymond James and Piper Sandler both upgraded the stock.
Shares of ServisFirst Bancshares jumped roughly 13% on Wednesday, closing at $86.27 and gaining close to $10 per share. During the day, the stock fluctuated between $76.75 and $87.73.
After the bell on Tuesday, the Birmingham, Alabama-based lender released its quarterly update, drawing attention from investors looking for banks that can still expand margins despite falling benchmark rates. 1
ServisFirst reported diluted earnings per share of $1.58 in the fourth quarter, with net income hitting $86.4 million. Ending loans jumped $384.9 million from the previous quarter, while deposits grew 5% year-over-year. The bank’s net interest margin, a key profitability measure, expanded to 3.38%, up 29 basis points from Q3. Meanwhile, the cost of interest-bearing deposits dropped to 3.01%, and the efficiency ratio improved to 29%. CEO Tom Broughton highlighted loan growth as a driver, while CFO David Sparacio credited margin expansion to a “reduction in benchmark interest rates” and disciplined expense management. The company raised its quarterly dividend to 38 cents and announced a Texas expansion, led by commercial team head Chris Dvorachek. 2
Raymond James bumped ServisFirst to a “Strong Buy” rating from “Outperform,” setting a $95 price target after the quarter’s results beat expectations. The firm highlighted that net interest margin growth “far exceeded expectations” and expects it to keep rising, driven by stronger loan growth that’s pushing estimates higher. 3
Piper Sandler boosted ServisFirst’s rating to “Overweight” from “Neutral,” also hiking the price target to $89 from $80. Analyst Stephen Scouten highlighted 11.6% loan growth at period-end and a 29 basis point boost in margins, driven by lower deposit costs. He noted the outlook looks stronger for both profitability and geographic expansion. 4
The jump outstripped the wider regional banking sector. The SPDR S&P Regional Banking ETF climbed roughly 3.9%, Regions Financial added around 3.7%, and Truist Financial increased about 2.3%.
Credit remains a weak spot. ServisFirst reported non-performing assets hit 0.97% of total assets, rising sharply from 0.26% a year ago, largely due to a significant real-estate secured relationship. The bank took $5.0 million in charge-offs tied to a long-standing impaired loan and set aside $8.1 million as a provision for credit losses this quarter. 5
Traders now face the challenge of seeing if the margin boost sticks as interest rates keep moving. Deposit rates often trail benchmark shifts, while changes in credit quality usually emerge late—and hit hard, all at once.
Attention now shifts to the Federal Reserve’s policy meeting scheduled for Jan. 27-28, with the rate decision set for Jan. 28. This move could significantly impact banks’ margins and funding costs. 6
