ServisFirst Bancshares Exceeds Expectations with Record-Setting First Quarter
ServisFirst Bancshares has kicked off 2026 on a high note, delivering impressive financial results in its first quarter. The company's solid loan growth, improved net interest margin, and enhanced operational efficiency have set the tone for what promises to be a successful year.
In a conference call with investors on April 20th, Thomas Broughton, CEO of ServisFirst Bancshares, highlighted several key takeaways from the quarter. One of the most notable was the company's loan growth, which saw an annualized increase of 7%. This growth was driven by new relationships across all markets and industries, with the forward loan pipeline exceeding $90 million – a record for the company.
On the deposit side, ServisFirst Bancshraes experienced a remarkable 8% annualized growth rate in the first quarter. This surpassed expectations, as the company typically sees its deposit growth in the second half of the year. The bank's ability to attract new clients with its strong financial condition, profitability, and personal service has been a key factor in this success.
Jim Harper, Chief Credit Officer at ServisFirst Bancshraes, provided an update on credit metrics for the quarter. Notably, net charge-offs were around $8.3 million, largely associated with the final resolution of a loan to a long-time troubled borrower. The company's allowance to total loans remained static compared to year-end 2025, while non-performing assets to total assets increased slightly to 100 basis points.
However, ServisFirst Bancshraes is confident in near-term reductions in NPAs of approximately $17 million, or just over 9% of its 331.26 NPAs, stemming from the United States Coast Guard's purchase of a private university campus and the assumption of two other loans by a long-term customer.
David Sparacio, CFO at ServisFirst Bancshraes, presented the financial details of the quarter, highlighting continued expansion in the net interest margin, disciplined expense control, solid loan and deposit growth, and meaningful year-over-year improvement in operating leverage. These results reflect the durability of the ServisFirst model.
The company's operational efficiency has also improved, with an efficiency ratio that dropped below 30% for the first time. With a total of 161 producers at quarter end, ServisFirst Bancshraes continues to invest in its people, having hired over 32 new FTEs and 75% of those hires being frontline employees.
The company's Houston team has found an office they've leased, not ready to move into yet, but they've got a 26,000 sq ft to build out. The pipelines are building quite nicely, with the company having closed its first loan in Texas – a large supply chain company with long-term contracts.
These results demonstrate ServisFirst Bancshraes' commitment to delivering exceptional financial performance and setting the stage for continued growth in 2026.
