Christopher Dvorachek, Regional CEO – Texas & Executive Vice President, ServisFirst Bank

In an interview with Invest:, Christopher Dvorachek, Texas regional CEO and executive vice president of ServisFirst Bank, discussed Houston’s banking landscape, ServisFirst Bank’s Texas expansion, and the opportunities emerging from growth across the region. “I’m excited to bring this platform to Houston, to its local companies, and be a resource for them that has local decision-making,” Dvorachek said.

What changes or trends are having the biggest impact on the banking industry in Houston?

I moved to Houston in 2000, at a time when the banking industry was just coming out of the ashes of a rough decade of bank failures in Texas. Regulations had changed, a lot of mergers were happening nationwide, and there was an opportunity to build in a market that had a lot of potential. Twenty-six years later, I have no regrets.

I’ve seen cycles within Houston that the rest of the country does not necessarily feel because of the energy sector’s presence here, but each time that happens, it makes the city stronger. Houston overall has done an amazing job of attracting headquarters. While many of those are energy-based, healthcare is having a real renaissance right now through production, research, and clinical trials.

Houston is more diverse than people realize. It is not just energy. You have a healthy ecosystem of entrepreneurs, affordable labor, no zoning, family offices with significant capital, private equity capital available to fund ideas, and a market that gives companies global reach.

Because of the energy industry and the commodity nature of our port, Houston is well versed in trade finance and reaching international markets. It is also an immigrant community with a diverse population and business-owner base. Many companies come here wanting only a foothold in Houston, but they often grow beyond what they originally envisioned.

If you want to focus only on the local market, it is still a metropolitan area of 7.9 million people, which gives businesses a strong foundation for growth.

How is ServisFirst Bank establishing its presence in Texas?

ServisFirst Bank is headquartered in Birmingham, Alabama. Our founder started the bank in 2005 after building and selling other banks. One of the things that makes ServisFirst unique is that everything has been organic. The bank enters markets through local talent that brings teams and client relationships. 

Before coming to Houston, the bank had already grown to roughly $18 billion in assets, which places it among the Top 100 banks in the country. That gives us the ability to support larger clients while still maintaining a relationship-focused approach.

The timing of our entry into Houston has been favorable because there is a lot of disruption in market share right now. Several acquisitions have changed the banking landscape, and many clients suddenly find themselves being served by institutions headquartered outside Texas. That creates opportunities for a bank that offers local decision-making and relationship banking.

From a recruiting standpoint, we have seen exactly that. When I originally came over, around 12 people interviewed with our CEO and decided to join as well. Since then, I have continued hiring experienced bankers and recently added a market president with deep Houston roots.

I’m excited to bring this platform to Houston, to its local companies, and be a resource for them. In my role as regional CEO, we can move quickly to support businesses while providing the customer service that relationship banking requires.

What opportunities are driving ServisFirst Bank’s growth strategy in Texas?

We are targeting companies that have probably outgrown the hold levels of a traditional community bank. These are businesses that may need $15 million, $20 million, or more in debt, and also need the executives of those businesses to be banked.

ServisFirst is primarily focused on middle-market businesses. These are companies that are already operating, have largely been de-risked, and are looking for growth, whether through local expansion or expansion into new geographies.

We are generally industry agnostic, but we see opportunities across distribution, manufacturing, and other sectors that are important to Houston. Houston also has a strong community of entrepreneurs who have built large quick-service restaurant platforms, and that is a sector where we see opportunity.

Oil-field services remains an area where we have experience and relationships. The key is maintaining a conservative leverage profile that allows us to support clients through cycles. If you start from a disciplined position, you can continue supporting businesses when conditions become more challenging.

We are also going further upstream with reserve-based lending. Some foreign banks have pulled back from that space, and the O&G companies’ leverage profiles have become more conservative, leaving opportunities for Texas-based institutions that understand the industry and are comfortable operating in it.

Another attractive segment is family offices. Houston has many families with generational wealth that have chosen to manage their own investment platforms. Those organizations often invest with a longer-term perspective and can represent strong banking relationships.

Overall, Houston offers opportunities across a wide range of industries, and we are focused on businesses that fit our relationship model and credit philosophy.

How is ServisFirst approaching technology, AI, and digital banking?

We may be earlier than some institutions when it comes to implementing certain fintech solutions, but we have the treasury management and digital capabilities that our clients need.

Historically, the bank’s growth has been driven by relationship banking and balance-sheet strength. Providing great service and a balance sheet was the primary value proposition during the early growth of the bank. However, we are continuing to invest in technology and AI initiatives.

Our chief technology officer is active in evaluating AI applications, and we have brought in leadership with experience in payments and technology to help improve efficiencies across the organization. While we may not always be first to market with new technologies, we are committed to keeping pace with developments that create value for clients and employees.

From a broader market perspective, one of the most interesting trends is the connection between AI and energy. The data-center industry has quickly recognized that energy is a critical input for its operations, and there is a growing need to secure power sources for future development.

As a result, we are seeing increased activity among electrical contractors, HVAC providers, construction companies, and other businesses supporting data-center growth. There is also significant effort being directed toward finding ways to utilize available natural gas resources to power those facilities.

Houston’s position as the energy capital of the world has placed it in the middle of that conversation, and we are seeing benefits flow to many operating companies across the region.

What differentiates ServisFirst in such a competitive market, and how are you maintaining momentum?

It is a little cliché, but it comes down to people. Houston is a work-driven city. People come here to build careers, build businesses, and create opportunities.

We have been able to attract talented bankers who want local support and the ability to serve their customers effectively. That has generated strong interest from both bankers and clients.

Although the market is competitive, it remains relationship-driven. Companies value access to bank debt, and there is strong demand from growing businesses with healthy cash flow profiles.

In a relatively short period of time, we have built a pipeline of roughly $750 million, and about one-third of that has already been converted. We expect the Texas operation to reach profitability quickly, and from there the operating leverage becomes attractive.

Maintaining momentum comes back to recruiting. We are now at the stage where some of our newer leaders can begin building teams of their own, creating additional capacity for growth.

The bank also has significant liquidity available to lend, which is attractive to both bankers and clients. Because ServisFirst has consistently built deposits ahead of loan growth, we have the resources necessary to enter a market like Houston and compete effectively.

Houston continues to present tremendous opportunities, and we believe our combination of local decision-making, relationship banking, and lending capacity positions us well to support businesses throughout the region.