ServisFirst Bancshares, Inc.

Second-quarter 2026 net income was $85.8 million, or $1.57 per diluted share, versus $1.52 in Q1 and $1.12 a year ago; adjusted EPS grew 30% from $1.21 a year ago. For the first six months, net income was $168.8 million, or $3.09 per diluted share, up from $124.6 million, or $2.28, last year. Net interest income was $155.6 million, up from $148.1 million in Q1 and $131.7 million a year ago, and net interest margin expanded to 3.63% from 3.53% in Q1 and 3.10% a year ago. Ending loans were $14.48 billion, up $533 million sequentially and $1.25 billion year over year; ending deposits were $14.55 billion, up $62 million sequentially and $686 million year over year. Noninterest income was $12.9 million, noninterest expense was $50 million, and efficiency ratio was 29.65%. Net charge-offs were about $3.7 million for the quarter and just over $12 million, or 9 bps, year to date. The allowance for credit losses was 1.26% of loans, and CET1 was 11.83% on a preliminary basis. Management said the margin should keep expanding, but at a slower pace, and modeled roughly 4 to 6 bps of quarterly NIM expansion toward year-end, after possibly one more quarter in the 7 to 9 bps range. They also said the effective tax rate target is below 20% and that the $50 million expense run rate is a good current estimate.

Tom Broughton said the quarter was strong but not perfect, emphasizing broad-based loan growth, record pipeline levels, and better C&I utilization. He sounded constructive on the franchise, especially in Texas and Houston, while noting the bank is still building out that market and not yet fully firing on all cylinders. He also framed the industry backdrop as generally favorable, with better bank earnings, modest losses, controlled expenses, and a more constructive regulatory tone.

David Sparacio highlighted that momentum continued across earnings, margin, credit, and capital. He cited NII of $155.6 million, NIM of 3.63%, EPS of $1.57, and ROAA of 1.91%, along with book value per share of $36.19 and tangible book value of $35.94. He said deposit costs were 2.80%, loan yields were 6.23% on a reported basis (6.18% normalized), and the company held $1.46 billion in cash and cash equivalents with no FHLB advances and no brokered deposits. He also said capital continued to build, with CET1 at 11.83%, total capital at 13.09%, and tangible common equity to tangible assets at 10.72%, while noting the $50 million expense run rate and sub-20% tax-rate goal.

Analysts focused on whether record loan demand and slower paydowns could support mid-teens loan growth, and management said demand was broad-based and strong but still somewhat choppy because of timing and geopolitical uncertainty. On CRE concentration, management said the 307% of capital ratio remains within their managed range and that they still have meaningful room to grow that book. Questions also covered margin trajectory, balance-sheet funding, and excess capital; CFO David Sparacio said NIM expansion should continue but slow to about 4 to 6 bps per quarter later this year, deposit growth should improve in the second half, and the company is open to either acquisitions or share repurchases if it decides that is the best use of capital.