ServisFirst (SFBS) Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 21, 2026 astatine 9:02 AM CST 21 min read

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Tuesday, January 20, 2026 astatine 5:15 p.m. ET

• Chairman, President, and Chief Executive Officer — Thomas A. Broughton III

• Executive Vice President and Chief Credit Officer — James J. Harper

• Executive Vice President and Chief Financial Officer — David J. Sparacio

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Thomas Broughton: Thank you precise much, Davis, and bully afternoon, and convey you for joining our 4th fourth net call. I'll springiness you a fewer highlights, and past Jim Harper volition springiness a recognition update and past David Sparacio volition springiness fiscal update. So let's commencement with loans successful the quarter. Loan maturation was truly successful enactment with our pipeline projection with annualized maturation of 12% for the quarter. Our pipeline quarter-over-quarter accrued by 11%, but nett of projected payoffs had accrued by 80%. I judge that projected payoffs are astir apt understated, but it does look the payoff headwind is diminishing to immoderate extent.

A indebtedness pipeline is an exact, but we person recovered is indicative of a inclination implicit respective quarters. So we're pleased with the quarterly indebtedness maturation and a small spot optimistic that things volition amended a spot arsenic we spell forward. On the deposit side, we did proceed to negociate down our high-cost deposits, chiefly of municipal deposits for some the 4th and the year. We fixed that if we person immoderate robust indebtedness demand, we find that we tin pull immoderate of those benignant deposits backmost if they are needed.

I speech astir caller markets, we are excited -- precise excited astir our caller Texas banking squad based successful Houston that joined america successful aboriginal December and immoderate during the people of December arsenic we went on. They are successful the process of opening an office, but they person been productive successful impermanent bureau abstraction already. This radical has worked unneurotic successful the past. So they person deed the crushed and running. So we person 9 members connected the Houston squad contiguous and expect hiring much successful the archetypal and 2nd quarters of the year. This is simply a overmuch larger squad than we person hired successful the caller past since opening the slope successful 2005.

In addition, the caller Texas team, our analogous -- Texas analogous part has 35 progressive analogous banking relationships and 2 analogous bankers based successful Texas. Speaking of analogous banks, we bash person 388 analogous banks today, including 145 for which we settled astatine the Federal Reserve Bank. Our Asian recognition paper programme is besides not lone endorsed by the American Bankers Association by 12 authorities banking associations. We person 150 Asian recognition paper banks successful a robust pipeline of caller clients and banks successful 27 states. In the past year, we added Ohio and Maryland State Banking Association that endorse our cause program. So we're precise pleased with the corresponding maturation and outlook.