SFBS · ServisFirst Bancshares, Inc.

ServisFirst Bancshares reported strong first quarter 2026 results, with diluted EPS of $1.52 representing a 31% year-over-year increase. This performance was primarily driven by significant net interest margin expansion, which rose 61 basis points to 3.53% compared to the first quarter of 2025, supported by a 61 basis point reduction in the cost of interest-bearing deposits to 2.79%. The company achieved notable efficiency improvements, with the efficiency ratio falling below 30% from 35% in the prior year period, contributing to a 31% increase in net income to $83.0 million. Balance sheet growth was robust, with loans increasing $249 million (7% annualized) and deposits growing $268 million (8% annualized) during the quarter, while maintaining strong liquidity with $1.84 billion in cash and cash equivalents. Credit metrics showed some pressure, with non-performing assets increasing to 1.00% of total assets due to a large real-estate secured relationship, and the provision for credit losses rising to $10.6 million from $6.5 million in the prior year quarter. Management commentary from Chairman, President, and CEO Tom Broughton expressed optimism about loan and deposit growth prospects for the remainder of the year, citing strong commercial banking capabilities in the Southeast. CFO David Sparacio highlighted the company's margin expansion and net income growth, which resulted in a 1.89% return on average assets despite hiring in the new Houston market.