ServisFirst Bancshares (NYSE: SFBS) experienced a significant 24-hour plunge of 5.37% on Tuesday, as investors reacted to the company's first-quarter earnings report and organizational changes. The regional bank holding company's stock took a hit after falling short of analysts' expectations and announcing a key leadership transition.

ServisFirst reported quarterly earnings of $1.16 per share, missing the Zacks Consensus Estimate of $1.18 per share. While this represents a 23.4% increase from the same period last year, the earnings surprise of -1.69% disappointed investors. Additionally, the company posted revenues of $131.83 million for the quarter ended March 2025, falling short of the Zacks Consensus Estimate by 0.69%.

Adding to investor concerns, ServisFirst Bank announced the appointment of Jim Harper as the new Senior Vice President and Chief Credit Officer. This leadership change, coupled with the earnings miss, likely contributed to the stock's sharp decline. The transition in the critical role of Chief Credit Officer, especially in the current economic climate, may have raised questions about the potential impact on the bank's lending practices and risk management strategies going forward.