Updated 3/26
ServisFirst Bancshares, Inc. isn’t one of those names that pop up constantly in dividend investing conversations, but maybe it should be. Based in Birmingham, Alabama, this regional bank has built a strong presence across the Southeastern U.S., catering primarily to commercial clients, professionals, and high-net-worth individuals. The business model is simple, traditional banking—done well. That simplicity, backed by discipline and consistent returns, is what makes SFBS a compelling option for long-term dividend-focused investors.
What makes ServisFirst worth a deeper look isn’t just the numbers—it’s the combination of solid fundamentals, stable dividend growth, and a leadership team that seems to understand the value of running a conservative, high-performing bank.
Recent Events
In a year where regional banks had more than their fair share of challenges—especially with interest rate swings and investor unease—ServisFirst held steady. Not only that, it grew.
Fourth-quarter results showed a sharp increase in earnings, with a year-over-year jump of nearly 55%. Revenue also surged by more than 33%, pointing to strong momentum even in a tough operating environment. The bank appears to have found a way to expand while keeping risk in check, a balancing act that many peers have struggled with recently.
The market has taken notice. Shares are up more than 26% over the last year, outpacing broader benchmarks. While this has slightly compressed the yield, the stock still offers solid income characteristics, especially considering the financial health supporting it.
Key Dividend Metrics
📈 Forward Dividend Yield: 1.60%
💸 Payout Ratio: 29.7%
📆 Ex-Dividend Date: April 1, 2025
💰 Payment Date: April 9, 2025
📊 Five-Year Average Yield: 1.54%
🚀 Dividend Trend: Gradual, steady increases
🛡️ Coverage and Safety: Strong, supported by robust earnings
🔍 Trailing P/E Ratio: 20.1
Dividend Overview
The dividend yield from SFBS isn’t going to catch eyes at first glance. It sits at 1.6%, just a shade above the five-year average. But this isn’t about headline yield—this is about quality and consistency.
With a payout ratio under 30%, ServisFirst is paying out less than a third of its earnings as dividends, leaving a wide margin for safety. There’s plenty of room for increases in the years ahead without stretching the balance sheet. Management seems committed to a steady dividend strategy—no big swings, just dependable growth that lines up with the company’s earnings trajectory.
Dividend Growth and Safety
Dividend safety isn’t just a checkbox here—it’s part of the DNA. ServisFirst has steadily increased its dividend over the years, including the most recent hike to $0.335 per share. While the pace of growth won’t knock your socks off, it’s consistent and well-supported by fundamentals.
Return on equity is strong at nearly 15%, and profit margins are impressive, with net income making up almost half of revenues. That efficiency gives the bank flexibility to continue rewarding shareholders, even if the economy becomes less forgiving.
For dividend investors who place a premium on security and reliability, SFBS hits the mark. It’s a quiet performer, but one that doesn’t take unnecessary risks and has the financial firepower to keep delivering.
Chart Analysis
Wyckoff Market Cycle Position
The chart for ServisFirst Bancshares (SFBS) suggests the stock is in the late distribution to early markdown phase of the Wyckoff cycle. Here’s how that conclusion lines up across the chart:
- Accumulation Phase (April to early June): The stock moved mostly sideways with low volume and limited price movement. This base-building behavior is typical after a prior downtrend and marked the beginning of a new uptrend.
- Markup Phase (Mid-June to November): A sharp breakout in late June confirmed the markup phase. Price accelerated quickly, and the 50-day moving average crossed above the 200-day average—a classic golden cross. Momentum carried the stock up toward the $100 area with a series of higher highs and higher lows. Volume spikes supported several of those moves, especially in July and October.
- Distribution Phase (Late November to early February): After peaking, price flattened and became choppier. Multiple failed attempts to break higher and declining relative strength signaled distribution. The volume during this period was more mixed, with rising selling activity on down days.
- Markdown Phase (Mid-February to mid-March): The stock began to break down below the 50-day moving average with lower highs forming consistently. Price dipped under the 200-day moving average in March—a signal of growing bearish sentiment. Buyers have stepped in slightly, but so far the bounce looks weak and lacks conviction.
Volume and Moving Averages
Volume has been relatively light lately, hovering around 40,000 shares, with occasional spikes. None of the recent up days have been supported by meaningful volume, and that’s typically not a great sign for a sustained rebound. During the markup phase, however, volume followed price on the upside, which gave strength to that leg of the move.
The 50-day moving average has now rolled over and is pointing downward. That’s a notable change in character compared to the sustained uptrend from summer into fall. The stock is also now trading below the 50-day average and only slightly above the 200-day. If it fails to reclaim the 50-day line soon, it could signal further weakness ahead.
RSI and Momentum
The Relative Strength Index (RSI) has dipped into the 30s recently, which is typically viewed as oversold territory. While that might seem encouraging at a glance, the overall RSI trend has been drifting lower for months. The most recent bounce barely lifted RSI into the mid-40s, showing limited strength in the current recovery.
This kind of RSI action suggests the stock isn’t building enough momentum to turn the trend decisively yet. Sellers remain in control for now.
Candlestick Behavior and Price Action
Looking at the most recent five candles:
- March 19 to March 25: The candles are mostly narrow-bodied with lower wicks, indicating buying pressure at the lows—but none have strong bullish closes.
- March 21 and March 25: Both show slight gains, but these are small-bodied candles, suggesting indecision rather than any real shift in demand.
- March 22’s wick: Shows a test of lower support around $82 that held, but the bounce lacked follow-through.
These five sessions tell a story of a stock that’s trying to find its footing but hasn’t yet convinced buyers to step in with any urgency.
Overall Structure
SFBS has pulled back into a key zone between the 50-day and 200-day moving averages, and it’s testing both levels without a decisive move in either direction. This makes it a pivotal area. A breakdown below the 200-day moving average with volume would confirm deeper markdown potential. On the flip side, reclaiming the 50-day with strength could delay that shift and keep the stock in a broad consolidation.
The price structure is currently marked by lower highs and modest support near $82. Momentum indicators and volume trends lean slightly bearish, but there are early signs of a potential pause or base-building attempt near the current levels.
Analyst Ratings
Recent analyst sentiment around ServisFirst Bancshares (SFBS) has remained fairly balanced, with a lean toward cautious optimism. The consensus rating is currently a Hold, indicating that most analysts expect the stock to perform in line with the broader market in the near term.
🎯 The average price target among analysts is $93.50, offering a moderate upside from current levels around $84. That suggests some room for appreciation, though expectations are tempered by macroeconomic factors and the regional banking backdrop.
📈 Piper Sandler has reiterated its Neutral stance on the stock, with a slight price target bump from $95 to $96 back in January 2025. Their update reflected confidence in the company’s earnings consistency and its conservative balance sheet, but also acknowledged that valuation was getting stretched following the recent rally.
🔄 Hovde Group, another covering firm, echoed similar sentiment in late 2024. They held their Market Perform rating but raised their target from $80 to $91, noting the bank’s solid net interest margin and disciplined growth approach. Their outlook pointed to strong management execution but highlighted that much of the positive story might already be priced in.
🔍 While there’s no rush of upgrades pushing the stock into buy territory, analysts are recognizing the bank’s financial strength and consistent profitability. The cautious tone stems more from valuation and broader market sentiment than any specific concern about SFBS’s fundamentals.
📊 In summary, analyst sentiment reflects a healthy respect for the company’s long-term track record while maintaining a wait-and-see approach as to whether the next leg higher is justified in the near term.
Earning Report Summary
A Strong Finish to the Year
ServisFirst Bancshares closed out 2024 with a solid quarter that reinforced the bank’s steady hand in a volatile environment. Earnings per share came in at $1.19, which was a nice jump from the previous quarter and a strong improvement compared to the same time last year. That kind of growth didn’t happen by accident—it was backed by a meaningful lift in net interest income and a small but welcome improvement in net interest margin.
The bank added around $8 million in net interest income during the quarter, helped by a 12 basis point boost in margin. In simple terms, the bank made more money from its core lending and deposit-taking activities, which is a good sign in a higher-rate environment that’s been tough for some regional players.
Lending and Deposits Keep Growing
ServisFirst continues to show consistent growth on both sides of the balance sheet. Deposits increased by about $397 million in the quarter, and loans were up by $268 million. That kind of steady increase shows that the bank is doing a good job attracting and keeping business, especially when many others are struggling with outflows or slowing loan demand.
Book value per share also edged higher, now sitting at $29.63, which is up about 12% from the year before. That’s another signal that management is focused on building long-term value for shareholders, not just chasing short-term gains.
Dividend Boost and Balance Sheet Strength
One of the standout moments in the report was the 12% dividend increase. The quarterly payout moved up from 30 cents to 33.5 cents per share, which reflects confidence from leadership in the strength of their earnings going forward.
Liquidity is in great shape too. The bank ended the year with $2.4 billion in cash and didn’t need to lean on brokered deposits or advances from the Federal Home Loan Bank—something that’s become more common in the industry lately. That self-sufficiency is reassuring.
Credit quality remains clean, with non-performing assets still very low at just 0.26% of total assets. On top of that, capital levels improved again this quarter, with the common equity tier 1 ratio ticking up from 10.9% to 11.4%.
All in all, the bank wrapped up the year looking healthy, disciplined, and well-positioned to continue performing. No major surprises—just solid execution.
Financial Health and Stability
There’s a lot to like when you dig into the balance sheet. ServisFirst is sitting on $2.38 billion in cash—more than enough to cover its $2.09 billion in debt. That’s rare in today’s banking environment and speaks to how conservatively this company is managed.
Book value per share stands at $29.62, while the stock trades around $83, giving it a price-to-book multiple that reflects investor confidence. But more importantly, that book value has grown consistently, reinforcing that this isn’t a flashy story—it’s a compounding one.
The bank doesn’t carry excessive risk, and its operational metrics like return on assets and margins suggest tight, efficient management. It runs a clean operation, one built for long-term durability rather than short-term gains.
Valuation and Stock Performance
ServisFirst trades at a price-to-earnings ratio of just over 20, which might seem a bit rich for a regional bank. But when you consider the company’s steady growth, high returns on capital, and low-risk profile, that valuation starts to look more reasonable.
The stock is up more than 26% in the past year, bouncing back from lows around $58 to a recent level near $84. It’s not at the 52-week high, but it’s comfortably above the midpoint—showing resilience and investor confidence.
That strength has compressed the yield slightly, but not below historical averages. For long-term holders focused on dividends, this kind of upward move isn’t a negative. It reflects a business model that’s working—and being rewarded by the market.
Risks and Considerations
While the fundamentals are solid, there are always risks. ServisFirst, like all regional banks, is exposed to economic shifts, interest rate changes, and potential regulation. Any change in the credit environment could have a ripple effect.
Also, the yield—while safe and growing—is still modest. Investors seeking higher income from their portfolio might find SFBS a bit light unless they’re also looking for capital appreciation. And with short interest around 10% of float, some in the market are clearly betting on a pullback.
That said, there’s no glaring red flag in the financials. Much of the skepticism may reflect broader uncertainty in the regional bank space rather than anything specific to this institution.
Final Thoughts
ServisFirst isn’t trying to be the biggest, the fastest-growing, or the highest-yielding bank out there. It sticks to a conservative model, grows carefully, and rewards shareholders with a dividend that’s as reliable as it is sustainable.
For investors who prefer a measured approach to income investing, SFBS offers a compelling package: consistent earnings, strong financials, and a management team that seems to know its lane—and sticks to it.
It’s not a high-yield play, but it’s certainly one for the watchlist if you value dividend safety and the kind of steady performance that compounds quietly over time.