# ServisFirst Bancshares, Inc. (SFBS) Informational only - not investment advice. CIK: 0001430723 SIC: 6022 State Commercial Banks SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=1430723 Filing source: https://www.sec.gov/Archives/edgar/data/1430723/000117184326001150/sfbs20251231_10k.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001171843-26-001150 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001430723.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 990,427,000 USD | 2025 | verified | | Net income | 276,603,000 USD | 2025 | verified | | Assets | 17,727,190,000 USD | 2025 | verified | | Net margin | 27.93% | 2025 | computed | | Revenue YoY | +4.68% | 2025 | computed | | ROE | 14.95% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | SFBS | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 27.9% | 21.9% | 80 | 149 | | Revenue growth | 4.7% | 6.0% | 47 | 148 | | ROE | 15.0% | 9.6% | 97 | 149 | | ROA | 1.6% | 1.1% | 89 | 149 | | Liabilities / equity | 8.58 | 8.04 | 64 | 149 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 990427000 | USD | 2025 | 2026-02-27 | | Net income | 276603000 | USD | 2025 | 2026-02-27 | | Assets | 17727190000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001430723.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 212,902,000 | 262,756,000 | 326,627,000 | 390,803,000 | 389,022,000 | 416,305,000 | 559,315,000 | 813,246,000 | 946,121,000 | 990,427,000 | | Net income | 81,479,000 | 93,092,000 | 136,940,000 | 149,243,000 | 169,569,000 | 207,734,000 | 251,504,000 | 206,853,000 | 227,242,000 | 276,603,000 | | Diluted EPS | 1.52 | 1.72 | 2.53 | 2.76 | 3.13 | 3.82 | 4.61 | 3.79 | 4.16 | 5.06 | | Operating cash flow | 98,521,000 | 118,464,000 | 168,301,000 | 164,275,000 | 191,290,000 | 266,331,000 | 272,627,000 | 197,296,000 | 252,915,000 | 355,204,000 | | Dividends paid | 7,858,000 | 10,040,000 | 20,194,000 | 24,053,000 | 28,230,000 | 32,520,000 | 37,470,000 | 45,711,000 | 65,412,000 | 73,165,000 | | Assets | 6,370,448,000 | 7,082,384,000 | 8,007,382,000 | 8,947,653,000 | 11,932,654,000 | 15,448,806,000 | 14,595,753,000 | 16,129,668,000 | 17,351,643,000 | 17,727,190,000 | | Liabilities | 5,847,559,000 | 6,474,780,000 | 7,292,179,000 | 8,104,971,000 | 10,939,802,000 | 14,296,791,000 | 13,297,857,000 | 14,689,263,000 | 15,734,871,000 | 15,876,843,000 | | Stockholders' equity | 522,512,000 | 607,102,000 | 714,701,000 | 842,180,000 | 992,352,000 | 1,151,515,000 | 1,297,396,000 | 1,439,905,000 | 1,616,272,000 | 1,849,847,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 38.27% | 35.43% | 41.93% | 38.19% | 43.59% | 49.90% | 44.97% | 25.44% | 24.02% | 27.93% | | Return on equity | 15.59% | 15.33% | 19.16% | 17.72% | 17.09% | 18.04% | 19.39% | 14.37% | 14.06% | 14.95% | | Return on assets | 1.28% | 1.31% | 1.71% | 1.67% | 1.42% | 1.34% | 1.72% | 1.28% | 1.31% | 1.56% | | Liabilities / equity | 11.19 | 10.67 | 10.20 | 9.62 | 11.02 | 12.42 | 10.25 | 10.20 | 9.74 | 8.58 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001430723.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2021-Q3 | 2022-09-30 | | | 1.17 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 1.06 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.98 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 213,206,000 | 53,340,000 | 0.98 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 229,062,000 | 42,074,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 226,710,000 | 50,026,000 | 0.92 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 227,540,000 | 52,136,000 | 0.95 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 247,979,000 | 59,907,000 | 1.10 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 243,892,000 | 65,173,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 241,096,000 | 63,224,000 | 1.16 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 246,635,000 | 61,424,000 | 1.12 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 251,308,000 | 65,571,000 | 1.20 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 251,388,000 | 86,384,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 241,480,000 | 82,971,000 | 1.52 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 249,880,000 | 85,793,000 | 1.57 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from SFBS's latest 10-K: [/company/SFBS/business/](/company/SFBS/business/). ## Risk Factors Verbatim Item 1A Risk Factors from SFBS's latest 10-K: [/company/SFBS/risk-factors/](/company/SFBS/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1430723/000117184326005359/sfbs20260630_10q.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-07 Report date: 2026-06-30 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis is designed to provide a better understanding of various factors relating to the results of operations and financial condition of ServisFirst Bancshares, Inc. (the “Company”) and its wholly-owned subsidiary, ServisFirst Bank (the “Bank”). This discussion is intended to supplement and highlight information contained in the accompanying unaudited consolidated balance sheets as of June 30, 2026 and December 31, 2025 and consolidated statements of income for the three and six months ended June 30, 2026 and June 30, 2025. 27 Forward-Looking Statements Statements in this document that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). The words “believe,” “expect,” “anticipate,” “project,” “plan,” “intend,” “will,” “could,” “would,” “might” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. The Company cautions that such forward-looking statements, wherever they occur in this quarterly report or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company’s senior management and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this document. Many of those factors are beyond our ability to control or predict. These factors include, but are not limited to: general economic conditions, especially in the credit markets and in the Southeast; the impact of tariffs, trade wars and other conflicts on general economic conditions; performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; and increased competition from both banks and nonbank financial institutions. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward Looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K, “Forward-Looking Statements” and “Risk Factors” in our subsequent Quarterly Reports on Form 10-Q and our other U.S. Securities and Exchange Commission (“SEC”) filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. The Company assumes no obligation to update or revise any forward-looking statements that are made from time to time. Business We are a bank holding company under the Bank Holding Company Act of 1956 and are headquartered in Birmingham, Alabama. Our wholly-owned subsidiary, ServisFirst Bank, an Alabama banking corporation, provides commercial banking services through full-service banking offices located in Alabama, Florida, Georgia, North and South Carolina, Tennessee, Texas and Virginia. The Bank recently entered the Houston, Texas market with plans of opening a new office there in the coming weeks. Through the Bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions. Our principal business is to accept deposits from the public and to make loans and other investments. Our principal sources of funds for loans and investments are demand, time, savings, and other deposits. Our principal sources of income are interest and fees collected on loans, interest and dividends collected on other investments and service charges. Our principal expenses are interest paid on savings and other deposits, interest paid on our other borrowings, employee compensation, office expenses and other overhead expenses. Second Quarter Highlights [[GREPCENT_TABLE]] [["","\u25cf","Diluted earnings per common share of $1.57 for the second quarter of 2026, an increase of 40.2%, from the second quarter of 2025."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Average loans of $14.22 billion for the second quarter of 2026, an increase of $1.21 billion, or 9.3%, from the second quarter of 2025."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Average deposits of $14.32 billion for the second quarter of 2026, an increase of $423.0 million, or 3.0%, from the second quarter of 2025."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Net interest income of $155.6 million for the second quarter of 2026, increased $23.9 million, or 18.2%, from the second quarter of 2025."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Net interest margin of 3.63% for second quarter of 2026, increased 53 basis points from 3.10% in the second quarter of 2025."]] [[/GREPCENT_TABLE]] 28 Overview As of June 30, 2026, we had consolidated total assets of $18.35 billion, an increase of $618.3 million, or 3.5%, from $17.73 billion at December 31, 2025. Total loans were $14.48 billion at June 30, 2026, an increase of $781.6 million, or 5.7%, from $13.70 billion at December 31, 2025. Total deposits were $14.55 billion at June 30, 2026, an increase of $329.7 million, or 2.3%, from $14.22 billion at December 31, 2025. Noninterest-bearing demand deposits comprised most of the increase in deposits, increasing by $311.1 million. We reported net income and net income available to common stockholders of $85.8 million for the quarter ended June 30, 2026, compared to net income and net income available to common stockholders of $61.4 million for the second quarter of 2025. Basic and diluted earnings per common share were both $1.57 for the three months ended June 30, 2026, compared to $1.12 in the corresponding period in 2025. Net income was $168.8 million and net income available to common stockholders was $168.7 million for the six months ended June 30, 2026, compared to net income and net income available to common stockholders of $124.6 million for the six months ended June 30, 2025. Basic and diluted earnings per common share were both $3.09 for the six months ended June 30, 2026, compared to $2.28 for both for the corresponding period in 2025. Changes in income and expenses are more fully explained in “Results of Operations” below. Performance Ratios The following table presents select ratios of our results of operations for the three and six months ended June 30, 2026, and 2025. [[GREPCENT_TABLE]] [["","","Three Months Ended June 30,","","","Six Months Ended June 30,"],["","","2026","","","2025","","","2026","","","2025"],["Return on average assets","","","1.91","%","","","1.40","%","","","1.90","%","","","1.42","%"],["Return on average common stockholders' equity","","","17.71","%","","","14.56","%","","","17.81","%","","","15.08","%"],["Dividend payout ratio","","","24.24","%","","","29.83","%","","","24.64","%","","","29.39","%"],["Net interest margin (1)","","","3.63","%","","","3.10","%","","","3.58","%","","","3.01","%"],["Efficiency ratio (2)","","","29.65","%","","","33.46","%","","","29.72","%","","","34.22","%"],["Average stockholders' equity to average total assets","","","10.78","%","","","9.59","%","","","10.68","%","","","9.43","%"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["(1)","Net interest margin is the net yield on interest earning assets and is the difference between the interest yield earned on interest-earning assets and interest rate paid on interest-bearing liabilities, divided by average earning assets."],["(2)","Efficiency ratio is the result of noninterest expense divided by the sum of net interest income and noninterest income."]] [[/GREPCENT_TABLE]] Financial Condition Cash and Cash Equivalents At June 30, 2026, we had $1.0 million in federal funds sold, compared to $6.1 million at December 31, 2025. We also maintain balances at the Federal Reserve Bank of Atlanta, which earn interest. At June 30, 2026, we had $1.08 billion in balances at the Federal Reserve, compared to $1.00 billion at December 31, 2025. At June 30, 2026, we had $250.4 million in securities purchased under agreements to resell, compared to $498.9 million at December 31, 2025. Securities Debt securities available-for-sale totaled $995.1 million at June 30, 2026 and $1.07 billion at December 31, 2025. During the three months ended June 30, 2025, the Company sold available-for-sale mortgage-backed securities with an amortized cost base of $70.5 million, and recorded a pre-tax loss of $8.6 million as a result of our portfolio restructuring during 2025. Debt securities held to maturity totaled $635.5 million at June 30, 2026 and $660.1 million at December 31, 2025. We had paydowns of $44.6 million on mortgage-backed securities and government agencies, maturities of $90.4 million on municipal bonds and treasury securities, and calls of $47.5 million on corporate securities during the six months ended June 30, 2026. We purchased $50.0 million in mortgage-backed securities and $33.7 million in corporate securities during the six months ended June 30, 2026. For a tabular presentation of debt securities available for sale and held to maturity at June 30, 2026 and December 31, 2025, see “Note 4 – Securities” in our Notes to Consolidated Financial Statements. 29 The objective of our investment policy is to invest funds not otherwise needed to meet our loan demand to earn the maximum return, yet still maintain sufficient liquidity to meet fluctuations in our loan demand and deposit structure. In doing so, we seek to balance the market and credit risks against the potential investment return, make investments compatible with the pledge requirements of any deposits of public funds, maintain compliance with regulatory investment requirements, and assist certain public entities with their financial needs. The investment committee has full authority over the investment portfolio and makes decisions on purchases and sales of securities. The entire portfolio, along with all investment transactions occurring since the previous board of directors meeting, is reviewed by the board at each monthly meeting. The investment policy allows portfolio holdings to include short-term securities purchased to provide us with needed liqu [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1430723/000117184326001150/sfbs20251231_10k.htm Complete FY 2025 MD&A: /company/SFBS/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. This section of the Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Management’s Discussion and Analysis of Financial Condition and Results of Operations is designed to provide a reader of the Company’s financial statements with a narrative from the perspective of management on the Company’s financial condition, results of operations, liquidity and certain other factors that may affect future results. In certain instances, parenthetical references are made to relevant sections of the Notes to Consolidated Financial Statements to direct the reader to a further detailed discussion. This section should be read in conjunction with the Consolidated Financial Statements included in this Form 10-K. Overview We are a bank holding company within the meaning of the BHC Act headquartered in Birmingham, Alabama. Through our wholly-owned subsidiary bank, we operate full service banking offices located in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia.  We also operate a loan production office in Florida. Our principal business is to accept deposits from the public and to make loans and other investments. Our principal source of funds for loans and investments are demand, time, savings, and other deposits and the amortization and prepayment of loans and borrowings. Our principal sources of income are interest and fees collected on loans, interest and dividends collected on other investments and service charges. Our principal expenses are interest paid on savings and other deposits, interest paid on our other borrowings, employee compensation, office expenses, and other overhead expenses. Our business is conducted through a single reportable segment. For additional information regarding our segment reporting, refer to (Note 22) - “Segment Reporting” Notes to the Consolidated Financial Statements. 34 Results of Operations The following discussion and analysis presents the more significant factors that affected our financial condition as of December 31, 2025 and 2024 and results of operations for each of the years then ended. Refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K filed with the SEC on March 1, 2025 for a discussion and analysis of the more significant factors that affected periods prior to 2024. Net Income Available to Common Stockholders Net income available to common stockholders was $276.5 million for the year ended December 31, 2025, compared to $227.2 million for the year ended December 31, 2024. The increase in net income was primarily attributable to an increase in net interest income. Basic and diluted net income per common share were both $5.06 for the year ended December 31, 2025, compared to $4.17 and $4.16, respectively, for the year ended December 31, 2024. Return on average assets was 1.56% in 2025, compared to 1.39% in 2024, and return on average common stockholders’ equity was 16.05% in 2025, compared to 14.98% in 2024. The following tables present a summary of our statements of income, including the percent change in each category, for the years ended December 31, 2025 compared to 2024, and for the years ended December 31, 2024 compared to 2023, respectively: [[GREPCENT_TABLE]] [["","","Year Ended December 31,"],["","","2025","","","2024","","","Change from the Prior Year"],["","","(Dollars in Thousands)"],["Interest income","","$","990,427","","","$","946,121","","","","4.7","%"],["Interest expense","","","455,218","","","","499,462","","","","(8.9",")%"],["Net interest income","","","535,209","","","","446,659","","","","19.8","%"],["Provision for credit losses","","","35,311","","","","21,587","","","","63.6","%"],["Net interest income after provision for credit losses","","","499,898","","","","425,072","","","","17.6","%"],["Noninterest income","","","27,222","","","","35,056","","","","(22.3",")%"],["Noninterest expense","","","184,990","","","","181,146","","","","2.1","%"],["Income before income taxes","","","342,130","","","","278,982","","","","22.6","%"],["Income taxes","","","65,527","","","","51,740","","","","26.6","%"],["Net income","","","276,603","","","","227,242","","","","21.7","%"],["Dividends on preferred stock","","","62","","","","62","","","","-","%"],["Net income available to common stockholders","","$","276,541","","","$","227,180","","","","21.7","%"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","","Year Ended December 31,"],["","","2024","","","2023","","","Change from the Prior Year"],["","","(Dollars in Thousands)"],["Interest income","","$","946,121","","","$","813,246","","","","16.3","%"],["Interest expense","","","499,462","","","","402,309","","","","24.1","%"],["Net interest income","","","446,659","","","","410,937","","","","8.7","%"],["Provision for credit losses","","","21,587","","","","18,715","","","","15.3","%"],["Net interest income after provision for credit losses","","","425,072","","","","392,222","","","","8.4","%"],["Noninterest income","","","35,056","","","","30,417","","","","15.3","%"],["Noninterest expense","","","181,146","","","","178,051","","","","1.7","%"],["Income before income taxes","","","278,982","","","","244,588","","","","14.1","%"],["Income taxes","","","51,740","","","","37,735","","","","37.1","%"],["Net income","","","227,242","","","","206,853","","","","9.9","%"],["Dividends on preferred stock","","","62","","","","62","","","","-","%"],["Net income available to common stockholders","","$","227,180","","","$","206,791","","","","9.9","%"]] [[/GREPCENT_TABLE]] 35 Performance Ratios The following table presents selected ratios of our results of operations for the years ended December 31, 2025, 2024 and 2023: [[GREPCENT_TABLE]] [["","","For the Years Ended December 31,"],["","","2025","","","2024","","","2023"],["Return on average assets","","","1.56","%","","","1.39","%","","","1.37","%"],["Return on average stockholders' equity","","","16.05","%","","","14.98","%","","","15.13","%"],["Dividend payout ratio","","","26.88","%","","","29.82","%","","","30.06","%"],["Net interest margin (1)","","","3.12","%","","","2.82","%","","","2.81","%"],["Efficiency ratio (2)","","","32.89","%","","","37.60","%","","","40.34","%"],["Average stockholders' equity to average total assets","","","9.71","%","","","9.29","%","","","9.07","%"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["(1) Net interest margin is the net yield on interest earning assets and is the difference between the interest yield earned on interest-earning assets and interest rate paid on interest-bearing liabilities, divided by average earning assets."],["(2) Efficiency ratio is the result of noninterest expense divided by the sum of net interest income and noninterest income."]] [[/GREPCENT_TABLE]] Net Interest Income Net interest income is the difference between the income earned on interest-earning assets and interest paid on interest-bearing liabilities used to support such assets. Net interest income is the single largest component of operating revenues. Management seeks to optimize this revenue while balancing interest rate, credit, and liquidity risks. The major factors that affect net interest income are changes in volumes, the yield on interest-earning assets and the cost of interest-bearing liabilities. Our management’s ability to respond to changes in interest rates by effective asset-liability management techniques is critical to maintaining the stability of the net interest margin and the momentum of our primary source of earnings. Net interest income increased 19.8% for the year ended December 31, 2025 from the year ended December 31, 2024. Net interest income increased primarily due to a larger decline in the average rate paid on interest-bearing liabilities than the decline in the average yield on interest-earning assets, resulting in a wider net interest spread. Average earning assets increased 8.2% in 2025 from 2024, which was primarily driven by an increase of 7.9% in average loans. A majority of our regional markets grew loans during 2025. Average interest-bearing liabilities increased 9.3% in 2025 from 2024. The increase in interest-bearing deposits was mostly attributable to the organic growth of our deposit base. Net Interest Margin Analysis The banking industry uses two key ratios to measure relative profitability of net interest revenue, which are the net interest spread and the net interest margin. The net interest spread measures the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities. The net interest spread eliminates the effect of noninterest-earning assets as well as noninterest-bearing deposits and other noninterest-bearing funding sources and gives a direct perspective on the effect of market interest rate movements. The net interest margin is an indication of the profitability of a company’s balance sheet and is defined as net interest income as a percentage of total average interest-earning assets, which includes the positive effect of funding a portion of interest-earning assets with noninterest-bearing deposits and stockholders’ equity. The net interest margin is impacted by the average volumes of interest-sensitive assets and interest-sensitive liabilities and by the difference between the yield on interest-sensitive assets and the cost of interest-sensitive liabilities (spread). Loan fees collected at origination represent an additional adjustment to the yield on loans. Net interest spread can be affected by economic conditions, the competitive environment, loan demand, and deposit flows. The net yield on earning assets is an indicator of effectiveness of our ability to manage the net interest margin by managing the overall yield on assets and cost of funding those assets. The following table shows, for the years ended December 31, 2025, 2024 and 2023, the average balances of each principal category of our assets, liabilities and stockholders’ equity, and an analysis of net interest income, and the change in interest income and interest expense segregated into amounts attributable to changes in volume and changes in rates. This table is presented on a taxable equivalent basis, if applicable. 36 Average Balance Sheets and Net Interest Analysis On a Fully Taxable-Equivalent Basis For the Year Ended December 31, (In thousands, except Average Yields and Rates) [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/SFBS/mda/fy2025/ All MD&A years: /company/SFBS/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/SFBS/mda/fy2024/): filed 2025-03-03; accession 0001171843-25-001208 (https://www.sec.gov/Archives/edgar/data/1430723/000117184325001208/sfbs20241231_10k.htm) - [FY 2023 MD&A](/company/SFBS/mda/fy2023/): filed 2024-03-01; accession 0001171843-24-001111 (https://www.sec.gov/Archives/edgar/data/1430723/000117184324001111/sfbs20231231_10k.htm) - [FY 2022 MD&A](/company/SFBS/mda/fy2022/): filed 2023-02-28; accession 0001171843-23-001247 (https://www.sec.gov/Archives/edgar/data/1430723/000117184323001247/sfbs20221231_10k.htm) - [FY 2021 MD&A](/company/SFBS/mda/fy2021/): filed 2022-02-25; accession 0001171843-22-001394 (https://www.sec.gov/Archives/edgar/data/1430723/000117184322001394/sfbs20211231_10k.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/SFBS.md · JSON record: /company/SFBS.json · verified financials: /company/SFBS/financials.json / /company/SFBS/financials.csv · machine TOC for the whole site: /llms.txt