ServisFirst Bancshares falls after Q3 profit miss as asset quality deteriorates

ServisFirst Bancshares

21/10/2025 15:34

** Regional lender ServisFirst Bancshares' SFBS.N shares fall 5.6% to $72.01

** Late Monday, SFBS reports Q3 profit below Wall Street expectations as interest income fell short while asset quality showed deterioration

** Non-performing assets to total assets jumped to 0.96% in Q3 from 0.25% a year earlier, as a large, real-estate secured relationship went into non-accural status

** Brokerage Hovde Group says slower loan growth profile likely weighs on potential valuation expansion for SFBS, adding that asset quality showed moderate deterioration

** Piper Sandler says credit hiccup was likely an overhang for SFBS, adding the $96 million loan relationship moving to non-accrual status could weigh on shares

** Despite the move to place the loans on non-accrual during the quarter, SFBS was able to obtain additional collateral and expects to have resolutions on several material credits as soon as late Q4

** One of three brokerages rate the stock "buy" and two "hold"; median PT $85 - data compiled by LSEG

** As of last close, SFBS stock down 10% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))