What Happened?

A number of stocks fell in the afternoon session after investors grew increasingly concerned about the sector's exposure to the opaque private credit market. 

These jitters were fueled by specific events that raised red flags about potential risks. Western Alliance Bancorporation announced it was writing off a $126.4 million loan after a counterparty group, led by Jefferies Financial Group, defaulted on a payment agreement. This news sent Western Alliance shares down more than 6%. The concerns are broader than a single loan, as a recent report noted that investment giant BlackRock had also slashed the value of a private loan in its portfolio to zero. Private credit refers to lending by non-bank institutions, a market that has grown rapidly but lacks the transparency of public markets, making investors nervous about what other hidden risks may exist on bank balance sheets.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Regional Banks company The Bancorp (NASDAQ: TBBK) fell 4.1%. Is now the time to buy The Bancorp? Access our full analysis report here, it’s free.
• Regional Banks company Texas Capital Bank (NASDAQ: TCBI) fell 3.6%. Is now the time to buy Texas Capital Bank? Access our full analysis report here, it’s free.
• Regional Banks company SouthState (NYSE: SSB) fell 3.3%. Is now the time to buy SouthState? Access our full analysis report here, it’s free.
• Regional Banks company Simmons First National (NASDAQ: SFNC) fell 3.3%. Is now the time to buy Simmons First National? Access our full analysis report here, it’s free.
• Regional Banks company ServisFirst Bancshares (NYSE: SFBS) fell 4.3%. Is now the time to buy ServisFirst Bancshares? Access our full analysis report here, it’s free.

Zooming In On ServisFirst Bancshares (SFBS)

ServisFirst Bancshares’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 1 month ago when the stock gained 13% on the news that the company reported strong fourth-quarter 2025 financial results that surpassed analyst expectations on both the top and bottom lines. The regional bank announced adjusted earnings per share of $1.58, marking a 33% increase from the same quarter last year and coming in 14.2% ahead of Wall Street projections. Revenue also saw robust growth, climbing 22.9% year-over-year to $162.2 million, which exceeded consensus estimates by 6.8%. The positive results were driven by better-than-expected net interest income. Additionally, the bank demonstrated strong operational performance, with its efficiency ratio improving to 28.8%. A lower efficiency ratio indicates better profitability, as it means the bank is generating more revenue for every dollar of expense.

ServisFirst Bancshares is up 5.3% since the beginning of the year, but at $75.65 per share, it is still trading 15.2% below its 52-week high of $89.24 from August 2025. Investors who bought $1,000 worth of ServisFirst Bancshares’s shares 5 years ago would now be looking at an investment worth $1,354.

WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.

This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.