ServisFirst Bancshares (SFBS) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $85.8 million ($1.57 per diluted share), up 40% year-over-year and 3.4% sequentially, with adjusted EPS up 30% year-over-year.

• Total assets reached $18.35 billion, up 3.5% from December 2025; total loans grew 5.7% to $14.48 billion, and deposits rose 2.3% to $14.55 billion.

• Achieved strong loan growth of $533 million (15% annualized) and deposit growth of $686 million (5%) year-over-year, with broad-based expansion, especially in Florida, Tennessee, and Houston.

• Non-interest-bearing deposits grew 20% annualized in the quarter and 14% year-over-year, reflecting focus on treasury management.

• Added nine bankers, including key hires in Houston, supporting ongoing regional expansion.

Financial highlights

• Net interest income for Q2 2026 was $155.6 million, up from $148.1 million last quarter and $131.7 million a year ago; net interest margin improved to 3.63%, up 53 bps year-over-year and 10 bps sequentially.

• Non-interest income rose to $12.9 million, up 43.5% year-over-year and from $0.4 million in Q2 2025, driven by higher service charges, mortgage banking, credit card, and BOLI income.

• Non-interest expense increased 13% year-over-year to $50.0 million, mainly due to higher salaries and benefits from market expansion.

• Efficiency ratio improved to 29.65%, third consecutive quarter below 30%, down from 33.46% a year ago.

• Return on average assets was 1.91% and return on average common equity was 17.71%, both up significantly year-over-year.

Outlook and guidance

• Management expects continued loan and deposit growth, supported by strong liquidity and capital positions, with a record loan pipeline and broad-based growth across regions.

• Expect continued, though moderating, net interest margin expansion; guidance for 4–6 bps quarterly increase by year-end.

• Deposit growth anticipated to pick up in the second half, with healthy loan and deposit pipelines, especially in Texas.

• Effective tax rate targeted below 20% for the remainder of the year.

• No material changes to risk factors or forward-looking statements since the last annual report.