ServisFirst Reports Strong Q2 2026 Earnings with Robust Loan Demand and Improved Credit Quality
Atlanta, GA - ServisFirst, a leading community bank holding company, reported strong second-quarter 2026 earnings on July 20, 2026, with notable improvements in loan demand and credit quality. The company's Q2 2026 earnings call provided a comprehensive update on the quarter's performance.
Tom Broughton, ServisFirst's CEO, highlighted the improved loan demand during the quarter, noting that annualized loan growth exceeded 15%. This growth was driven by solid loan demand across most markets, with notable increases in the company's Florida and Tennessee regions. The company's loan pipeline reached a record level, with projected payoffs diminishing to around 17%, down from 33% over the last two years.
"We're seeing loan demand rebuild and begin to normalize," Broughton said. "Our goal is never to set a numerical goal for new bankers. We try to make our bankers more productive and successful, and grow their loan and deposit portfolios."
On the credit side, Jim Harper, ServisFirst's Chief Credit Officer, reported strong credit quality with an uptick in commercial real estate (CRE) outstandings relative to capital. The company experienced a net decrease of non-performing assets (NPAs) of just under $7 million on a net basis and modest charge-offs totaling approximately $3.7 million for the quarter.
"Our credit quality continues to be strong," Harper said. "We don't see any systemic weakening in any particular sector of lending."
David Sparacio, ServisFirst's CFO, provided a summary of the company's financial performance for the second quarter, noting that net interest margin expanded again.
The company also reported growth in non-interest-bearing deposits, which grew 20% annualized in the quarter and 14% year-over-year. This was attributed to the continued trend of bank mergers and ServisFirst's emphasis on treasury management services.
ServisFirst added nine new bankers in the quarter, including a new market president and regional CEO in Houston. The company's focus remains on customer service and making its bankers more productive and successful.
