ServisFirst Bancshares, Inc. increased its quarterly cash dividend to $0.38 per share, up 13.4% from $0.335, the largest change in its dividend history. The dividend will be paid on January 13, 2026 to shareholders of record as of January 2, 2026.
The increase follows a pattern of annual dividend hikes since the company went public in 2014, underscoring management’s confidence in the bank’s ongoing profitability and cash‑generating capacity.
ServisFirst’s most recent earnings report for the third quarter of 2025 showed adjusted diluted earnings per share of $1.30, falling short of the consensus estimate of $1.38, and revenue of $136.28 million versus the $147.74 million forecast. The miss was largely driven by a $7.8 million one‑time loss on the sale of available‑for‑sale debt securities and a $96 million loan relationship that moved to non‑accrual, which weighed on earnings.
Despite the earnings shortfall, the bank posted a 3.09% net interest margin, up 25 basis points from the same quarter in 2024, and recorded year‑over‑year growth in loans (7.9%) and deposits (7.3%). These gains, coupled with a payout ratio of 22.9% and a projected 21.8% payout ratio based on next‑year earnings guidance, support the sustainability of the dividend hike.
The dividend increase signals that ServisFirst’s management believes the bank’s balance sheet remains robust and that it can continue to reward shareholders even as it navigates short‑term earnings volatility. The move also aligns with the company’s long‑term strategy of disciplined capital allocation and steady return to investors.
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