Third Quarter 2026
Filed Oct 19, 2026ServisFirst Bancshares reported third-quarter 2026 diluted earnings per share of $0.80, with net income of $87.3 million, loan growth of $1.43 billion year-over-year, and a 3.63% net interest margin.
Third-quarter net income rose 33.2% year-over-year, diluted earnings per share rose 33.3%, ending loans increased 10.7%, and net interest margin expanded to 3.63% from 3.09%. The efficiency ratio improved to 30.20% from 35.22%, while credit quality ratios were broadly stable.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, three months ended September 30, 2026GAAP | $87.31M | 1.8 % | 33.2 % |
| Net income available to common stockholders, three months ended September 30, 2026GAAP | $87.31M | 1.8 % | 33.2 % |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.80 | 2.6 % | 33.3 % |
| Adjusted net income, net of tax, three months ended September 30, 2026non-GAAP | $87.20M | 1.6 % | 22.1 % |
| Adjusted diluted earnings per share, net of tax, three months ended September 30, 2026non-GAAP | $ 0.80 | 2.6 % | 23.1 % |
| Net interest income, three months ended September 30, 2026GAAP | $159.8M | – | – |
| Net interest marginother | 3.63 % | – | – |
| Total interest income, three months ended September 30, 2026GAAP | $257.4M | – | – |
| Total interest expense, three months ended September 30, 2026GAAP | $97.54M | – | – |
| Provision for credit losses, three months ended September 30, 2026GAAP | $15.24M | – | – |
| Noninterest income, three months ended September 30, 2026GAAP | $13.11M | – | – |
| Adjusted noninterest income, three months ended September 30, 2026non-GAAP | $12.96M | – | – |
| Noninterest expense, three months ended September 30, 2026GAAP | $52.23M | – | – |
| Efficiency ratioother | 30.20 % | – | – |
| Adjusted efficiency rationon-GAAP | 30.23 % | – | – |
| Return on average assetsGAAP | 1.89 % | – | – |
| Return on average common stockholders' equityGAAP | 17.26 % | – | – |
| Effective tax rateGAAP | 17.21% | – | – |
| Total assetsGAAP | $18.32B | (0.1 ) % | 4.2 % |
| LoansGAAP | $14.74B | 1.8 % | 10.7 % |
| Total depositsGAAP | $14.09B | (3.2 ) % | (0.1 ) % |
| Noninterest-bearing demand depositsGAAP | $2.91B | (2.8 ) % | 12.0 % |
| Stockholders' equityGAAP | $2.04B | 3.0 % | 14.4 % |
| Book value per shareGAAP | $ 18.63 | – | – |
| Tangible book value per sharenon-GAAP | $ 18.51 | – | – |
| Common equity tier 1 capital to risk-weighted assetsother | 11.98 % | – | – |
| Allowance for credit losses to total loansother | 1.28 % | – | – |
| Nonperforming assets to total assetsother | 0.96 % | – | – |
| Annualized net charge-offs to average loansother | 0.21% | – | – |
| Net income, nine months ended September 30, 2026GAAP | $256.1M | – | 34.6 % |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 2.34 | – | 34.5 % |
| Adjusted net income, net of tax, nine months ended September 30, 2026non-GAAP | $256.0M | – | 27.5 % |
| Adjusted diluted earnings per share, net of tax, nine months ended September 30, 2026non-GAAP | $ 2.34 | – | 27.3 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Completed our two-for-one stock split during the quarter.
- Subsequent to quarter-end, the Company announced its inaugural stock repurchase program, authorizing the repurchase of up to two million shares of common stock through December 31, 2027.
What drove it
- Average loans were $14.54 billion, up $320.5 million, or 8.9% annualized, from average loans of $14.22 billion for the second quarter of 2026 and up $1.34 billion, or 10.1%, from average loans of $13.21 billion for the third quarter of 2025.
- Ending total loans were $14.74 billion, up $258.8 million, or 7.1% annualized, from $14.48 billion in the second quarter of 2026 and up $1.43 billion, or 10.7%, from $13.31 billion in the third quarter of 2025.
- Net interest income was $159.8 million, compared to $155.6 million in the second quarter of 2026 and $133.4 million in the third quarter of 2025.
- Loan yields were 6.24% compared to 6.23% in the second quarter of 2026 and 6.34% in the third quarter of 2025. Investment yields were 3.85% compared to 3.82% and 3.60%, respectively.
- Average interest-bearing deposit rates were 2.80%, compared to 2.80% in the second quarter of 2026 and 3.41% in the third quarter of 2025.
- Adjusted noninterest income increased $2.3 million, or 21.8%, after adjusting for $148,000 of securities gains in the third quarter of 2026 and $7.8 million of securities losses in the third quarter of 2025.
- Bank-owned life insurance income increased $1.9 million, or 80.6%, to $4.3 million from $2.4 million.
- The year-over-year increase in salary and benefit expense was primarily due to the full impact of the Houston market expansion.
Concerns
- Ending total deposits were $14.09 billion, a decrease of $461.4 million, or 12.6% annualized, from $14.55 billion in the second quarter of 2026.
- Provision for loan losses was $14.9 million, compared to $11.7 million in the second quarter of 2026 and $9.3 million in the third quarter of 2025.
- Net charge-offs were $7,741 (in thousands), compared to $3,747 (in thousands) in the second quarter of 2026.
- Noninterest expense increased $4.2 million, or 8.8%, to $52.2 million from $48.0 million, and increased $2.3 million, or 4.5%, on a linked quarter basis.
- Other operating expenses increased $2.9 million, or 46.9%, to $8.9 million from $6.1 million, and increased $2.2 million, or 33.2%, on a linked quarter basis.
- Accumulated other comprehensive loss was $(11,070) (in thousands) at September 30, 2026, compared to $(4,241) (in thousands) at September 30, 2025.
What to watch
- Loan pipeline activity, which management said was improving.
- The trajectory of ending total deposits following the $461.4 million linked-quarter decrease.
- Whether net interest margin moves above 3.63% after remaining unchanged from the second quarter of 2026.
- Provision for loan losses and net charge-offs following increases from the second quarter of 2026.
- Execution of the authorization to repurchase up to two million shares through December 31, 2027.
Balance sheet and cash flow
- Cash and cash equivalents: $ 1,185,015 (in thousands) at September 30, 2026, compared to $ 1,773,305 (in thousands) at September 30, 2025.
- Federal funds purchased: $ 1,965,000 (in thousands) at September 30, 2026, compared to $ 1,488,150 (in thousands) at September 30, 2025.
- Other borrowings: $ 34,750 (in thousands) at September 30, 2026, compared to $ 64,750 (in thousands) at September 30, 2025.
- Debt securities: $ 1,563,099 (in thousands) at September 30, 2026, compared to $ 1,849,739 (in thousands) at September 30, 2025.
- Total capital to risk-weighted assets: 13.26 % at September 30, 2026, compared to 12.91 % at September 30, 2025.
Analysis
ServisFirst reported a strong third quarter. Net income was $87.3 million, compared to $65.6 million in the third quarter of 2025, and diluted earnings per share were $0.80 compared to $0.60. Adjusted diluted earnings per share were also $0.80, compared to $0.65 in the prior-year quarter. For the nine months ended September 30, 2026, net income was $256,072 (in thousands), compared to $190,219 (in thousands), while diluted earnings per share were $2.34 compared to $1.74.
Core spread income benefited from growth in loans and year-over-year funding-cost improvement. Net interest income was $159.8 million, versus $155.6 million in the second quarter of 2026 and $133.4 million in the third quarter of 2025. Net interest margin was 3.63%, unchanged sequentially and up from 3.09% a year earlier. Average loans were $14.54 billion, up $320.5 million sequentially and $1.34 billion year-over-year, while ending loans were $14.74 billion, up $1.43 billion year-over-year.
Noninterest income was $13.1 million, compared to $2.8 million in the third quarter of 2025, reflecting a $148,000 securities gain in the current quarter versus $7.8 million of securities losses in the prior-year quarter. On the reported adjusted basis, noninterest income increased $2.3 million, or 21.8%. Cost efficiency remained a central strength: noninterest expense was $52.2 million and the efficiency ratio was 30.20%, compared with 35.22% in the prior-year quarter. Salary and benefit expense increased due primarily to the full impact of the Houston market expansion.
Deposit and credit trends require attention. Ending total deposits were $14.09 billion, down $461.4 million from the second quarter of 2026 and down $19.5 million from the third quarter of 2025, although noninterest-bearing demand deposits increased 12.0% year-over-year. Provision for loan losses was $14.9 million, up from $11.7 million sequentially and $9.3 million a year ago, while annualized net charge-offs to average loans were 0.21%, compared with 0.11% sequentially. Nonperforming assets to total assets remained 0.96%, and the allowance for credit losses to total loans was 1.28%.
Capital strengthened during the period. Stockholders' equity was $2,037,346 (in thousands), book value per share was $18.63, and common equity tier 1 capital to risk-weighted assets was 11.98%, compared with 11.49% a year earlier. The company completed a two-for-one stock split and subsequently announced an inaugural repurchase authorization for up to two million shares through December 31, 2027. The release did not provide forward financial guidance.
Management, verbatim
We see solid economic trends, and loan activity is improving with continued growth in our loan pipeline.
Tom Broughton, Chairman, President, and CEO
We continue to grow our top line revenue through asset and margin growth, while maintaining a best-in-class efficiency ratio, resulting in top quartile returns.
David Sparacio, CFO
Not in the filing
stated, not guessed- Forward guidance was not provided.
- Previous-period outlook was not provided.
- Total revenue was not reported as a line item.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Common dividend declaration or payment was not reported.
- Business segment revenue was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.