ServisFirst Bancshares Q3 2026: Net Income Up 33% Despite Modest Misses
As seen on the 24/7 Wall St. homepage on October 19, 2026.
Net income rose 33% year over year to $87.3 million even while missing expectations on both lines. Net interest margin expanded 54 basis points to 3.63% as funding costs fell, and management authorized an inaugural buyback of up to two million shares through 2027.
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ServisFirst Bancshares reported Q3 2026 diluted EPS of $0.80, missing expectations, with revenue of $172.9 million roughly in line with estimates. The underlying earnings story looks stronger than those gaps suggest.
Net income climbed 33% year over year to $87.3 million as net interest margin widened and funding costs fell. Declining deposit rates and steady loan demand lifted net interest income.
Ending loans reached $14.74 billion, up 10.7% year over year. A completed two-for-one stock split halved per-share figures, explaining the lower reported EPS versus earlier 2026 quarters.
CEO Tom Broughton noted loan activity is improving with continued growth in the loan pipeline, and the board authorized an inaugural repurchase program covering up to two million shares through the end of 2027. Both moves signal comfort with the balance sheet heading into Q4.
The provision for credit losses rose to $15.2 million from $9.5 million a year ago, and ending total deposits declined at a 12.6% annualized rate on a linked-quarter basis. Keep an eye on the stock as deposit trends decide whether net interest income growth holds.
Mentioned: SFBS