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    Stronger Q4 Earnings Amid Rising Charge‑Offs Might Change The Case For Investing In ServisFirst Bancshares (SFBS)

    Simply Wall St·02/03/2026 09:22:52
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    • ServisFirst Bancshares, Inc. reported fourth-quarter 2025 results, with net interest income rising to US$146.52 million and net income increasing to US$86.38 million, while net charge-offs climbed to US$6.68 million from US$2.70 million a year earlier.
    • The company’s higher basic and diluted earnings per share of US$1.58, up from US$1.19, highlight improved profitability despite higher credit costs.
    • We’ll now examine how this earnings strength, particularly the increase in net interest income, shapes ServisFirst Bancshares’ broader investment narrative.

    Uncover the next big thing with financially sound penny stocks that balance risk and reward.

    What Is ServisFirst Bancshares' Investment Narrative?

    For ServisFirst Bancshares, you really have to believe in its core commercial banking model: disciplined loan growth, strong net interest income and a shareholder-friendly dividend policy that has been raised regularly in recent years. The latest quarter supports that story, with net interest income and earnings both higher and the board confident enough to lift the dividend again. At the same time, the jump in net charge-offs to US$6.68 million is a timely reminder that credit quality is the key short term swing factor for the stock, especially given its richer price to earnings multiple versus many banks. If those charge-offs prove contained, the recent results simply reinforce existing catalysts; if they signal a trend, they could quickly shift the risk-reward balance for shareholders.

    However, rising charge-offs hint at a risk that investors should not overlook. ServisFirst Bancshares' shares have been on the rise but are still potentially undervalued by 41%. Find out what it's worth.

    Exploring Other Perspectives

    SFBS 1-Year Stock Price Chart
    SFBS 1-Year Stock Price Chart
    Two Simply Wall St Community fair value estimates for ServisFirst span roughly US$88 to about US$142, underlining how far apart individual views can be. Set that against the recent earnings strength and higher charge-offs, and it becomes clear why you might want to weigh multiple perspectives before deciding how this bank fits into your portfolio.

    Explore 2 other fair value estimates on ServisFirst Bancshares - why the stock might be worth as much as 68% more than the current price!

    Build Your Own ServisFirst Bancshares Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your ServisFirst Bancshares research is our analysis highlighting 4 key rewards that could impact your investment decision.
    • Our free ServisFirst Bancshares research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ServisFirst Bancshares' overall financial health at a glance.

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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.