ServisFirst Bancshares, Inc. Announces Results for Second Quarter of 2025

Business Wire

3 days ago

BIRMINGHAM, Ala.--(BUSINESS WIRE)--ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended June 30, 2025.
Second Quarter 2025 Highlights:
Diluted earnings per share of $1.12 for the quarter. Adjusted diluted earnings per share of $1.21, up 27% from the second quarter of 2024.
Net interest margin improved to 3.10% in the second quarter from 2.92% in the first quarter. Adjusted net interest margin was 3.06% in the second quarter.
Loans grew by $346 million, or 11% annualized, during the quarter.
Book value per share of $31.52, up 14% from the second quarter of 2024 and 16% annualized, from the first quarter of 2025.
Liquidity remains strong with $1.7 billion in cash and cash equivalent assets, 10% of our total assets, and no FHLB advances or brokered deposits.
Consolidated common equity tier 1 capital to risk-weighted assets increased from 10.93% to 11.38% year-over-year.
Return on average common stockholder's equity of 14.56%. Adjusted return on average common stockholders' equity increased from 14.08% to 15.63% year-over-year.
Tom Broughton, Chairman, President, and CEO, said, 'We were pleased with the loan growth in the quarter, combined with the improved environment for banks like ServisFirst.'
David Sparacio, CFO, said, 'The net interest margin continues to improve and we see continued asset repricing, which we believe will lead to higher net interest margins over the next 24 months.'
* This press release includes certain non-GAAP financial measures: adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted net interest margin, adjusted return on average assets, adjusted return on average common stockholders' equity, adjusted efficiency ratio, tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets. Please see 'GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.'
FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share amounts)
Period Ending June
Period Ending
March 31, 2025
% Change From
Period Ending
March 31, 2025
to Period Ending
June 30, 2025
Period Ending June
30, 2024
% Change From
Period Ending
June 30, 2024 to
Period Ending
June 30, 2025
QUARTERLY OPERATING RESULTS
Net Income
$
61,424
$
63,224
(2.8
)%
$
52,136
17.8
%
Net Income Available to Common Stockholders
$
61,393
$
63,224
(2.9
)%
$
52,105
17.8
%
Diluted Earnings Per Share
$
1.12
$
1.16
(3.4
)%
$
0.95
17.9
%
Return on Average Assets
1.40
%
1.45
%
1.34
%
Return on Average Common Stockholders' Equity
14.56
%
15.63
%
14.08
%
Average Diluted Shares Outstanding
54,664,480
54,656,630
54,608,679
Adjusted Net Income, net of tax*
$
66,133
$
63,224
4.6
%
$
52,136
26.8
%
Adjusted Net Income Available to Common
Stockholders, net of tax*
$
66,102
$
63,224
4.6
%
$
52,105
26.9
%
Adjusted Diluted Earnings Per Share, net of tax*
$
1.21
$
1.16
4.4
%
$
0.95
27.5
%
Adjusted Return on Average Assets, net of tax*
1.50
%
1.45
%
1.34
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
15.68
%
15.63
%
14.08
%
YEAR-TO-DATE OPERATING RESULTS
Net Income
$
124,648
$
102,162
22.0
%
Net Income Available to Common Stockholders
$
124,617
$
102,131
22.0
%
Diluted Earnings Per Share
$
2.28
$
1.87
21.9
%
Return on Average Assets
1.42
%
1.30
%
Return on Average Common Stockholders' Equity
15.08
%
13.96
%
Average Diluted Shares Outstanding
54,660,577
54,602,032
Adjusted Net Income, net of tax*
$
129,357
$
103,509
25.0
%
Adjusted Net Income Available to Common
Stockholders, net of tax*
$
129,326
$
103,478
25.0
%
Adjusted Diluted Earnings Per Share, net of tax*
$
2.36
$
1.89
Adjusted Return on Average Assets, net of tax*
1.48
%
1.31
%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*
15.65
%
14.15
%
BALANCE SHEET
Total Assets
$
17,378,628
$
18,636,766
(6.8
)%
$
16,049,812
8.3
%
Loans
13,232,560
12,886,831
2.7
%
12,332,780
7.3
%
Non-interest-bearing Demand Deposits
2,632,058
2,647,577
(0.6
)%
2,475,415
6.3
%
Total Deposits
13,862,319
14,429,061
(3.9
)%
13,259,392
4.5
%
Stockholders' Equity
1,721,783
1,668,900
3.2
%
1,510,576
14.0
%
Expand
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $61.4 million for the quarter ended June 30, 2025, compared to net income and net income available to common stockholders of $63.2 million for the first quarter of 2025 and net income and net income available to common stockholders of $52.1 million for the second quarter of 2024. Basic and diluted earnings per common share were both $1.12 in the second quarter of 2025, compared to $1.16 for both in the first quarter of 2025 and $0.96 and $0.95, respectively, in the second quarter of 2024.
Annualized return on average assets was 1.40% and annualized return on average common stockholders' equity was 14.56% for the second quarter of 2025, compared to 1.34% and 14.08%, respectively, for the second quarter of 2024.
Net interest income was $131.7 million for the second quarter of 2025, compared to $123.6 million for the first quarter of 2025 and $105.9 million for the second quarter of 2024. The net interest margin in the second quarter of 2025 was 3.10% compared to 2.92% in the first quarter of 2025 and 2.79% in the second quarter of 2024. Loan yields were 6.37% during the second quarter of 2025 compared to 6.28% during the first quarter of 2025 and 6.48% during the second quarter of 2024. Investment yields were 3.37% during the second quarter of 2025 compared to 3.31% during the first quarter of 2025 and 3.33% during the second quarter of 2024. Average interest-bearing deposit rates were 3.33% during the second quarter of 2025, compared to 3.40% during the first quarter of 2025 and 4.09% during the second quarter of 2024. During the quarter, we reversed a $2.3 million accrual related to a legal matter, which had been recorded in interest expense. Average federal funds purchased rates were 4.49% during the second quarter of 2025, compared to 4.50% during the first quarter of 2025 and 5.50% during the second quarter of 2024.
Average loans for the second quarter of 2025 were $13.01 billion, an increase of $302.0 million, or 9.5% annualized, from average loans of $12.71 billion for the first quarter of 2025, and an increase of $947.1 million, or 7.9%, from average loans of $12.06 billion for the second quarter of 2024. Ending total loans for the second quarter of 2025 were $13.23 billion, an increase of $345.7 million, or 10.8% annualized, from $12.89 billion for the first quarter of 2025, and an increase of $899.8 million, or 7.3%, from $12.33 billion for the second quarter of 2024.
Average total deposits for the second quarter of 2025 were $13.90 billion, an increase of $5.8 million, or 0.2% annualized, from average total deposits of $13.89 billion for the first quarter of 2025, and an increase of $1.03 billion, or 8.0%, from average total deposits of $12.86 billion for the second quarter of 2024. Ending total deposits for the second quarter of 2025 were $13.86 billion, a decrease of $566.7 million, or 15.8% annualized, from $14.43 billion for the first quarter of 2025, and an increase of $602.9 million, or 4.5%, from $13.26 billion for the second quarter of 2024.
Non-performing assets to total assets were 0.42% for the second quarter of 2025, compared to 0.40% for the first quarter of 2025 and 0.23% for the second quarter of 2024. The majority of the year-over-year increase in non-performing assets was attributable to two relationships, both of which are secured by real estate. Annualized net charge-offs to average loans were 0.20% for the second quarter of 2025, compared to 0.19% for the first quarter of 2025 and 0.10% for the second quarter of 2024. During the second quarter of 2025, we charged off $4.9 million on a loan that had not been previously impaired. The allowance for credit losses as a percentage of total loans at June 30, 2025, March 31, 2025, and June 30, 2024, was 1.28%, 1.28%, and 1.28%, respectively. We recorded a $11.4 million provision for loan losses in the second quarter of 2025 compared to $6.5 million in the first quarter of 2025, and $5.4 million in the second quarter of 2024. Higher loan growth and increased net charge-offs during the second quarter of 2025 contributed to the increase in provision for loan losses.
Non-interest income decreased $8.5 million, or 95.3%, to $421,000 for the second quarter of 2025 from $8.9 million in the second quarter of 2024, and decreased $7.9 million, or 94.9%, on a linked quarter basis. Service charges on deposit accounts increased $378,000, or 16.5%, to $2.7 million for the second quarter of 2025 from $2.3 million in the second quarter of 2024, and increased $113,000, or 4.4%, on a linked quarter basis. Mortgage banking revenue decreased $56,000, or 4.1%, to $1.3 million for the second quarter of 2025 from $1.4 million in the second quarter of 2024, and increased $710,000, or 115.8%, on a linked quarter basis. Net credit card income decreased $214,000, or 9.2%, to $2.1 million for the second quarter of 2025 from $2.3 million in the second quarter of 2024, and increased $151,000, or 7.7%, on a linked quarter basis. In the second quarter of 2025, we recognized an $8.6 million loss on the sale of available-for-sale debt securities as part of a portfolio restructuring. Bank-owned life insurance ('BOLI') income increased $68,000, or 3.3%, to $2.1 million for the second quarter of 2025 from $2.1 million in the second quarter of 2024, and decreased $11,000, or 0.5%, on a linked quarter basis. Other operating income decreased $83,000, or 10.0%, to $745,000 for the second quarter of 2025 from $828,000 in the second quarter of 2024, and decreased $256,000, or 25.6%, on a linked quarter basis.
Non-interest expense increased $1.4 million, or 3.2%, to $44.2 million for the second quarter of 2025 from $42.8 million in the second quarter of 2024, and decreased $1.9 million, or 4.1%, on a linked quarter basis. Salary and benefit expense decreased $1.6 million, or 6.8%, to $22.6 million for the second quarter of 2025 from $24.2 million in the second quarter of 2024, and decreased $303,000, or 1.3%, on a linked quarter basis. The number of full-time equivalent ('FTE') employees increased by 34, or 5.44%, to 659 at June 30, 2025 compared to 625 at June 30, 2024, and increased by 23, or 3.61%, from the end of the first quarter of 2025. Equipment and occupancy expense decreased $44,000, or 1.2%, to $3.5 million for the second quarter of 2025 from $3.6 million in the second quarter of 2024, and decreased $199,000, or 5.3%, on a linked quarter basis. Third party processing and other services expense increased $540,000, or 7.2%, to $8.0 million for the second quarter of 2025 from $7.5 million in the second quarter of 2024, and increased $267,000, or 3.5%, on a linked quarter basis. Professional services expense increased $163,000, or 9.4%, to $1.9 million for the second quarter of 2025 from $1.7 million in the second quarter of 2024, and decreased $29,000, or 1.5%, on a linked quarter basis. FDIC and other regulatory assessments increased $551,000, or 25.0%, to $2.8 million for the second quarter of 2025 from $2.2 million in the second quarter of 2024, and decreased $101,000, or 3.5%, on a linked quarter basis. Other operating expenses increased $1.8 million, or 49.5%, to $5.4 million for the second quarter of 2025 from $3.6 million in the second quarter of 2024, and decreased $1.5 million, or 22.0%, on a linked quarter basis. The efficiency ratio was 33.46% during the second quarter of 2025 compared to 37.31% during the second quarter of 2024 and 34.97% during the first quarter of 2025. The adjusted efficiency ratio was 31.94% in the second quarter of 2025.
Income tax expense increased $725,000, or 5.0%, to $15.2 million in the second quarter of 2025, compared to $14.5 million in the second quarter of 2024. Our effective tax rate was 19.82% for the second quarter of 2025 compared to 21.71% for the second quarter of 2024. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the second quarters of 2025 and 2024 of $2.1 million and $396,000, respectively.
About ServisFirst Bancshares, Inc.
ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia. We also operate a loan production office in Florida. Through the ServisFirst Bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions.
ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC's website at www.sec.gov or at www.servisfirstbancshares.com.
Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. The words 'believe,' 'expect,' 'anticipate,' 'project,' 'plan,' 'intend,' 'will,' 'could,' 'would,' 'might' and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.'s senior management and involve risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including, but not limited to: general economic conditions, especially in the credit markets and in the Southeast; the impact of tariffs and trade wars on general economic conditions, the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes as a result of our reclassification as a large financial institution by the FDIC; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; and increased competition from both banks and non-bank financial institutions. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to 'Cautionary Note Regarding Forward-looking Statements' and 'Risk Factors' in our most recent Annual Report on Form 10-K, in our Quarterly Reports on Form 10-Q for fiscal year 2025, and our other SEC filings. If one or more of the assumptions forming the basis of our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.
More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling [phone].
CONSOLIDATED STATEMENT OF INCOME
Interest income
$
246,635
$
241,096
$
243,892
$
247,979
$
227,540
Interest expense
114,948
117,543
120,724
132,858
121,665
Net interest income
131,687
123,553
123,168
115,121
105,875
Provision for credit losses
11,296
6,630
5,704
5,659
5,353
Net interest income after provision for credit losses
120,391
116,923
117,464
109,462
100,355
Non-interest income
421
8,277
8,803
8,549
8,891
Non-interest expense
44,204
46,107
46,896
45,632
42,818
Income before income tax
76,608
79,093
79,371
72,379
66,595
Provision for income tax
15,184
15,869
14,198
12,472
14,459
Net income
61,424
63,224
65,173
59,907
52,136
Preferred stock dividends
31
-
31
-
31
Net income available to common stockholders
$
61,393
$
63,224
$
65,142
$
59,907
$
52,105
Earnings per share - basic
$
1.12
$
1.16
$
1.19
$
1.10
$
0.96
Earnings per share - diluted
$
1.12
$
1.16
$
1.19
$
1.10
$
0.95
Average diluted shares outstanding
54,664,480
54,656,630
54,649,808
54,642,582
54,608,679
CONSOLIDATED BALANCE SHEET DATA
Total assets
$
17,378,628
$
18,636,766
$
17,351,643
$
16,449,178
$
16,049,812
Loans
13,232,560
12,886,831
12,605,836
12,338,226
12,332,780
Debt securities
1,914,503
1,905,550
1,876,253
1,867,587
1,941,641
Non-interest-bearing demand deposits
2,632,058
2,647,577
2,619,687
2,576,329
2,475,415
Total deposits
13,862,319
14,429,061
13,543,459
13,146,529
13,259,392
Borrowings
64,747
64,745
64,743
64,741
64,739
Stockholders' equity
1,721,783
1,668,900
1,616,772
1,570,269
1,510,576
Shares outstanding
54,618,545
54,601,217
54,569,427
54,551,543
54,521,479
Book value per share
$
31.52
$
30.57
$
29.63
$
28.79
$
27.71
Tangible book value per share (1)
$
31.27
$
30.32
$
29.38
$
28.54
$
27.46
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin
3.10
%
2.92
%
2.96
%
2.84
%
2.79
%
Return on average assets
1.40
%
1.45
%
1.52
%
1.43
%
1.34
%
Return on average common stockholders' equity
14.56
%
15.63
%
16.29
%
15.55
%
14.08
%
Efficiency ratio
33.46
%
34.97
%
35.54
%
36.90
%
37.31
%
Non-interest expense to average earning assets
1.04
%
1.09
%
1.13
%
1.13
%
1.13
%
CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets
11.38
%
11.48
%
11.42
%
11.25
%
10.93
%
Tier 1 capital to risk-weighted assets
11.38
%
11.48
%
11.42
%
11.25
%
10.93
%
Total capital to risk-weighted assets
12.81
%
12.93
%
12.90
%
12.77
%
12.43
%
Tier 1 capital to average assets
9.78
%
9.48
%
9.59
%
9.54
%
9.81
%
Tangible common equity to total tangible assets (1)
9.84
%
8.89
%
9.25
%
9.47
%
9.33
%
(1) This press release contains certain non-GAAP financial measures. Please see 'GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.'
(2) Regulatory capital ratios for most recent period are preliminary.
Expand
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders' equity, and adjusted efficiency ratio. We recorded a one-time expense of $7.2 million in the fourth quarter of 2023 associated with the FDIC's special assessment to recapitalize the Deposit Insurance Fund following bank failures in the spring of 2023. This assessment was updated in the first quarter of 2024 resulting in additional expense of $1.8 million. We recognized an $8.6 million loss on sale of available-for-sale debt securities in non-interest income during the second quarter of 2025. We reversed a $2.3 million legal reserve from interest expense during the second quarter of 2025. These adjustments to our results are unusual, or infrequent, in nature and are not considered to be part of our non-interest expense, non-interest income and interest expense run rates, respectively. Each of adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders' equity and adjusted efficiency ratio excludes the impact of these items, net of tax, and are all considered non-GAAP financial measures. This press release also contains the non-GAAP financial measures of tangible common stockholders' equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill associated with our acquisition of Metro Bancshares, Inc. in January 2015.
We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data.
Three Months
Ended June 30,
2025
Three Months
Ended March
31, 2025
Three Months
Ended June 30,
2024
Six Months
Ended June 30,
2025
Six Months
Ended June 30,
2024
Net income - GAAP
$
61,424
$
63,224
$
52,136
$
124,648
$
102,162
Adjustments:
FDIC special assessment
-
-
-
-
1,799
Legal matter accrual reversal
(2,276
)
-
-
(2,276
)
-
Loss on marketable securities
8,563
-
-
8,563
-
Tax on adjustments
(1,578
)
-
-
(1,578
)
(452
)
Adjusted net income - non-GAAP
$
66,133
$
63,224
$
52,136
$
129,357
$
103,509
Net income available to common stockholders - GAAP
$
61,393
$
63,224
$
52,105
$
124,617
$
102,131
Adjustments:
FDIC special assessment
-
-
-
-
1,799
Legal matter accrual reversal
(2,276
)
-
-
(2,276
)
-
Loss on marketable securities
8,563
-
-
8,563
-
Tax on adjustments
(1,578
)
-
-
(1,578
)
(452
)
Adjusted net income available to common stockholders - non-GAAP
$
66,102
$
63,224
$
52,105
$
129,326
$
103,478
Diluted earnings per share - GAAP
$
1.12
$
1.16
$
0.95
$
2.28
$
1.87
Adjustments:
FDIC special assessment
-
-
-
-
0.03
Legal matter accrual reversal
(0.04
)
-
-
(0.05
)
-
Loss on marketable securities
0.16
-
-
0.16
-
Tax on adjustments
(0.03
)
-
-
(0.03
)
(0.01
)
Adjusted diluted earnings per share - non-GAAP
$
1.21
$
1.16
$
0.95
$
2.36
$
1.89
Net interest income, on a fully taxable-equivalent basis
$
131,777
$
255,394
Adjustments:
Legal matter accrual reversal
(2,276
)
(2,276
)
Tax on adjustments
571
571
Adjusted net interest income, on a fully taxable-equivalent basis
$
130,072
$
253,689
Net interest margin-GAAP
3.10
%
3.01
%
Average earning assets
17,076,353
17,132,710
Adjusted net interest margin-non-GAAP
3.06
%
2.99
%
Return on average assets - GAAP
1.40
%
1.45
%
1.34
%
1.42
%
1.30
%
Net income available to common stockholders - GAAP
$
61,393
$
63,224
$
52,105
$
124,617
$
102,131
Adjustments:
FDIC special assessment
-
-
-
-
1,799
Legal matter accrual reversal
(2,276
)
-
-
(2,276
)
-
Loss on marketable securities
8,563
-
-
8,563
-
Tax on adjustments
(1,578
)
-
-
(1,578
)
(452
)
Adjusted net income available to common stockholders - non-GAAP
$
66,102
$
63,224
$
52,105
$
129,326
$
103,478
Average assets - GAAP
$
17,626,503
$
17,710,148
$
15,697,538
$
17,668,094
$
15,827,894
Adjusted return on average assets - non-GAAP
1.50
%
1.45
%
1.34
%
1.48
%
1.31
%
Return on average common stockholders' equity - GAAP
14.56
%
15.63
%
14.08
%
15.08
%
13.96
%
Net income available to common stockholders - GAAP
$
61,393
$
63,224
$
52,105
$
124,617
$
102,131
Adjustments:
FDIC special assessment
-
-
-
-
1,799
Legal matter accrual reversal
(2,276
)
-
-
(2,276
)
-
Loss on marketable securities
8,563
-
-
8,563
-
Tax on adjustments
(1,578
)
-
-
(1,578
)
(452
)
Adjusted net income available to common stockholders - non-GAAP
$
66,102
$
63,224
$
52,105
$
129,326
$
103,478
Average common stockholders' equity - GAAP
$
1,690,855
$
1,640,949
$
1,488,429
$
1,666,039
$
1,471,048
Adjusted return on average common stockholders' equity non-GAAP
15.68
%
15.63
%
14.08
%
15.65
%
14.15
%
Efficiency ratio
33.46
%
34.97
%
37.31
%
34.22
%
39.42
%
Net interest income - GAAP
$
131,687
$
123,553
$
105,875
$
255,240
$
208,370
Adjustments:
Legal matter accrual reversal
(2,276
)
-
-
(2,276
)
-
Adjusted net interest income - non-GAAP
$
129,411
$
123,553
$
105,875
$
252,964
$
208,370
Total non-interest income - GAAP
421
8,277
8,891
8,698
17,704
Adjustments:
Loss on marketable securities
8,563
-
-
8,563
-
Adjusted non-interest income - non-GAAP
$
8,984
$
8,277
$
8,891
$
17,261
$
17,704
Adjusted net interest income and non-interest income - non-GAAP
138,395
131,830
114,766
270,225
226,074
Non-interest expense - GAAP
$
44,204
$
46,107
$
42,818
$
90,311
$
89,121
Adjustments:
FDIC special assessment
-
-
-
-
1,799
Adjusted non-interest expense - non-GAAP
$
44,204
$
46,107
$
42,818
$
90,311
$
87,322
Adjusted efficiency ratio - non-GAAP
31.94
%
34.97
%
37.31
%
33.42
%
38.63
%
Expand
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
June 30, 2025
June 30, 2024
% Change
ASSETS
Cash and due from banks
$
140,659
$
135,711
4
%
Interest-bearing balances due from depository institutions
1,236,485
1,129,922
9
%
Federal funds sold and securities purchased with agreement to resell
333,760
11,132
2,898
%
Cash and cash equivalents
1,710,904
1,276,765
34
%
Available for sale debt securities, at fair value
1,227,851
1,174,386
5
%
Held to maturity debt securities (fair value of $639,455 and $785,270, respectively)
686,652
767,255
(11
)%
Restricted equity securities
12,156
11,300
8
%
Mortgage loans held for sale
22,131
11,174
98
%
Loans
13,232,560
12,332,780
7
%
Less allowance for credit losses
(169,959
)
(158,092
)
8
%
Loans, net
13,062,601
12,174,688
7
%
Premises and equipment, net
59,993
59,200
1
%
Goodwill
13,615
13,615
-
%
Other assets
582,725
561,429
4
%
Total assets
$
17,378,628
$
16,049,812
8
%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing demand
$
2,632,058
$
2,475,415
6
%
Interest-bearing
11,230,261
10,783,977
4
%
Total deposits
13,862,319
13,259,392
5
%
Federal funds purchased
1,599,135
1,097,154
46
%
Other borrowings
64,747
64,739
-
%
Other liabilities
130,644
117,951
11
%
Total liabilities
15,656,845
14,539,236
8
%
Stockholders' equity:
Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at
June 30, 2025 and June 30, 2024
-
-
-
%
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,618,545 shares
issued and outstanding at June 30, 2025, and 54,521,479
shares issued and outstanding at June 30, 2024
54
54
-
%
Additional paid-in capital
236,716
234,495
1
%
Retained earnings
1,500,767
1,322,048
14
%
Accumulated other comprehensive loss
(16,254
)
(46,521
)
(65
)%
Total stockholders' equity attributable to ServisFirst Bancshares, Inc.
1,721,283
1,510,076
14
%
Noncontrolling interest
500
500
-
%
Total stockholders' equity
1,721,783
1,510,576
14
%
Total liabilities and stockholders' equity
$
17,378,628
$
16,049,812
8
%
Expand
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Interest income:
Interest and fees on loans
$
206,521
$
194,300
$
403,457
$
381,278
Taxable securities
16,562
16,158
32,585
32,137
Nontaxable securities
5
9
11
18
Federal funds sold and securities purchased with agreement to resell
1,592
538
1,612
1,079
Other interest and dividends
21,955
16,535
50,066
39,738
Total interest income
246,635
227,540
487,731
454,250
Interest expense:
Deposits
93,488
104,671
188,233
208,737
Borrowed funds
21,460
16,994
44,258
37,143
Total interest expense
114,948
121,665
232,491
245,880
Net interest income
131,687
105,875
255,240
208,370
Provision for credit losses
11,296
5,353
17,926
9,721
Net interest income after provision for credit losses
120,391
100,522
237,314
198,649
Non-interest income:
Service charges on deposit accounts
2,671
2,293
5,229
4,443
Mortgage banking
1,323
1,379
1,936
2,057
Credit card income
2,119
2,333
4,087
4,488
Securities losses
(8,563
)
-
(8,563
)
-
Bank-owned life insurance income
2,126
2,058
4,263
5,289
Other operating income
745
828
1,746
1,427
Total non-interest income
421
8,891
8,698
17,704
Non-interest expense:
Salaries and employee benefits
22,576
24,213
45,455
47,199
Equipment and occupancy expense
3,523
3,567
7,245
7,124
Third party processing and other services
8,005
7,465
15,743
14,631
Professional services
1,904
1,741
3,837
3,205
FDIC and other regulatory assessments
2,753
2,202
5,607
6,107
Other real estate owned expense
27
7
60
37
Other operating expense
5,416
3,623
12,364
10,818
Total non-interest expense
44,204
42,818
90,311
89,121
Income before income tax
76,608
66,595
155,701
127,232
Provision for income tax
15,184
14,459
31,053
25,070
Net income
61,424
52,136
124,648
102,162
Dividends on preferred stock
31
31
31
31
Net income available to common stockholders
$
61,393
$
52,105
$
124,617
$
102,131
Basic earnings per common share
$
1.12
$
0.96
$
2.28
$
1.87
Diluted earnings per common share
$
1.12
$
0.95
$
2.28
$
1.87
Expand
LOANS BY TYPE (UNAUDITED)
(In thousands)
2nd quarter 2025
1st quarter 2025
4th quarter 2024
3rd quarter 2024
2nd quarter 2024
Commercial, financial and agricultural
$
2,952,028
$
2,924,533
$
2,869,894
$
2,793,989
$
2,935,577
Real estate - construction
1,735,405
1,599,410
1,489,306
1,439,648
1,510,677
Real estate - mortgage:
Owner-occupied commercial
2,557,711
2,543,819
2,547,143
2,441,687
2,399,644
1-4 family mortgage
1,561,461
1,494,189
1,444,623
1,409,981
1,350,428
Non-owner occupied commercial
4,338,697
4,259,566
4,181,243
4,190,935
4,072,007
Subtotal: Real estate - mortgage
8,457,869
8,297,574
8,173,009
8,042,603
7,822,079
Consumer
87,258
65,314
73,627
61,986
64,447
Total loans
$
13,232,560
$
12,886,831
$
12,605,836
$
12,338,226
$
12,332,780
Expand
(Dollars in thousands)
2nd quarter 2025
1st quarter 2025
4th quarter 2024
3rd quarter 2024
2nd quarter 2024
Allowance for credit losses:
Beginning balance
$
165,034
$
164,458
$
160,755
$
158,092
$
155,892
Loans charged off:
Commercial, financial and agricultural
6,849
2,415
3,899
3,020
3,355
Real estate - construction
-
46
-
-
-
Real estate - mortgage
581
3,571
560
252
119
Consumer
72
60
211
155
108
Total charge offs
7,502
6,092
4,670
3,427
3,582
Recoveries:
Commercial, financial and agricultural
959
171
1,801
616
406
Real estate - construction
-
-
-
-
8
Real estate - mortgage
1
-
23
2
-
Consumer
58
27
151
37
15
Total recoveries
1,018
198
1,975
655
429
Net charge-offs
6,484
5,894
2,695
2,772
3,153
Provision for loan losses
11,409
6,470
6,398
5,435
5,353
Ending balance
$
169,959
$
165,034
$
164,458
$
160,755
$
158,092
Allowance for credit losses to total loans
1.28
%
1.28
%
1.30
%
1.30
%
1.28
%
Allowance for credit losses to total average loans
1.31
%
1.30
%
1.32
%
1.30
%
1.31
%
Net charge-offs to total average loans
0.20
%
0.19
%
0.09
%
0.09
%
0.10
%
Provision for credit losses to total average loans
0.35
%
0.21
%
0.21
%
0.17
%
0.18
%
Nonperforming assets:
Nonaccrual loans
$
68,619
$
73,793
$
39,501
$
37,075
$
33,454
Loans 90+ days past due and accruing
3,549
111
2,965
2,093
1,482
Other real estate owned and
repossessed assets
311
756
2,531
2,723
1,458
Total
$
72,479
$
74,660
$
44,997
$
41,891
$
36,394
Nonperforming loans to total loans
0.55
%
0.57
%
0.34
%
0.32
%
0.28
%
Nonperforming assets to total assets
0.42
%
0.40
%
0.26
%
0.25
%
0.23
%
Nonperforming assets to earning assets
0.43
%
0.41
%
0.26
%
0.26
%
0.23
%
Allowance for credit losses to nonaccrual loans
247.69
%
223.64
%
416.34
%
433.59
%
472.57
%
Expand
(In thousands except per share data)
2nd Quarter
2025
1st Quarter
2025
4th Quarter
2024
3rd Quarter
2024
2nd Quarter
2024
Interest income:
Interest and fees on loans
$
206,521
$
196,936
$
200,875
$
205,952
$
194,300
Taxable securities
16,562
16,023
16,905
17,493
16,158
Nontaxable securities
5
6
6
7
9
Federal funds sold with agreement to
1,592
20
18
31
538
Other interest and dividends
21,955
28,111
26,088
24,496
16,535
Total interest income
246,635
241,096
243,892
247,979
227,540
Interest expense:
Deposits
93,488
94,745
98,702
113,211
104,671
Borrowed funds
21,460
22,798
22,022
19,647
16,994
Total interest expense
114,948
117,543
120,724
132,858
121,665
Net interest income
131,687
123,553
123,168
115,121
105,875
Provision for credit losses
11,296
6,630
5,704
5,659
5,353
Net interest income after provision for credit losses
120,391
116,923
117,464
109,462
100,522
Non-interest income:
Service charges on deposit accounts
2,671
2,558
2,650
2,341
2,293
Mortgage banking
1,323
613
1,513
1,352
1,379
Credit card income
2,119
1,968
1,867
1,925
2,333
Securities losses
(8,563
)
-
-
-
-
Bank-owned life insurance income
2,126
2,137
2,131
2,113
2,058
Other operating income
745
1,001
642
818
828
Total non-interest income
421
8,277
8,803
8,549
8,891
Non-interest expense:
Salaries and employee benefits
22,576
22,879
24,062
25,057
24,213
Equipment and occupancy expense
3,523
3,722
3,600
3,795
3,567
Third party processing and other services
8,005
7,738
8,515
8,035
7,465
Professional services
1,904
1,933
1,981
1,715
1,741
FDIC and other regulatory assessments
2,753
2,854
2,225
2,355
2,202
Other real estate owned expense
27
33
58
103
7
Other operating expense
5,416
6,948
6,455
4,572
3,623
Total non-interest expense
44,204
46,107
46,896
45,632
42,818
Income before income tax
76,608
79,093
79,371
72,379
66,595
Provision for income tax
15,184
15,869
14,198
12,472
14,459
Net income
61,424
63,224
65,173
59,907
52,136
Dividends on preferred stock
31
-
31
-
31
Net income available to common stockholders
$
61,393
$
63,224
$
65,142
$
59,907
$
52,105
Basic earnings per common share
$
1.12
$
1.16
$
1.19
$
1.10
$
0.96
Diluted earnings per common share
$
1.12
$
1.16
$
1.19
$
1.10
$
0.95
Expand
(Dollars in thousands)
2nd Quarter 2025
1st Quarter 2025
4th Quarter 2024
3rd Quarter 2024
2nd Quarter 2024
Interest-earning assets:
Loans, net of unearned income (1)
Taxable
$
12,979,759
6.37
%
$
12,683,077
6.29
%
$
12,414,065
6.43
%
$
12,351,073
6.63
%
$
12,045,743
6.48
%
Tax-exempt (2)
30,346
5.51
25,044
4.94
13,198
1.57
15,584
1.86
17,230
2.08
Total loans, net of unearned
income
13,010,105
6.37
12,708,121
6.28
12,427,263
6.43
12,366,657
6.62
12,062,973
6.48
Mortgage loans held for sale
11,739
5.23
6,731
4.76
9,642
5.36
10,674
3.80
6,761
6.13
Debt securities:
Taxable
1,965,089
3.37
1,934,739
3.31
1,932,547
3.49
1,955,632
3.57
1,936,818
3.33
Tax-exempt (2)
492
4.88
589
5.43
606
5.28
815
4.42
1,209
3.64
Total securities (3)
1,965,581
3.37
1,935,328
3.31
1,933,153
3.49
1,956,447
3.57
1,938,027
3.33
Federal funds sold and securities
purchased with agreement to resell
124,303
5.14
1,670
4.86
1,596
4.49
2,106
5.86
38,475
5.62
Restricted equity securities
12,146
6.64
11,461
7.43
11,290
6.80
11,290
7.36
11,290
7.16
Interest-bearing balances with banks
1,952,479
4.47
2,526,382
4.48
2,143,474
4.81
1,775,192
5.46
1,183,482
5.57
Total interest-earning assets
$
17,076,353
5.80
%
$
17,189,693
5.69
%
$
16,526,418
5.87
%
$
16,122,366
6.12
%
$
15,241,008
6.01
%
Non-interest-earning assets:
Cash and due from banks
109,506
108,540
103,494
103,539
96,646
Net premises and equipment
59,944
59,633
60,708
60,607
59,653
Allowance for credit losses, accrued
interest and other assets
380,700
352,282
346,763
340,621
300,521
Total assets
$
17,626,503
$
17,710,148
$
17,037,383
$
16,627,133
$
15,697,828
Interest-bearing liabilities:
Interest-bearing deposits:
Checking (4)
$
2,222,000
1.78
%
$
2,461,900
2.38
%
$
2,353,439
2.61
%
$
2,318,384
2.97
%
$
2,227,527
2.85
%
Savings
101,506
1.63
101,996
1.61
102,858
1.52
102,627
1.76
105,955
1.71
Money market
7,616,747
3.67
7,363,163
3.61
7,067,265
3.86
7,321,503
4.45
6,810,799
4.46
Time deposits
1,321,404
4.09
1,361,558
4.24
1,286,754
4.45
1,197,650
4.52
1,157,528
4.47
Total interest-bearing deposits
11,261,657
3.33
11,288,617
3.40
10,810,316
3.63
10,940,164
4.12
10,301,809
4.09
Federal funds purchased
1,855,860
4.49
1,994,766
4.50
1,767,749
4.80
1,391,118
5.42
1,193,190
5.50
Other borrowings
64,750
4.26
64,750
4.30
64,738
4.22
64,738
4.22
64,738
4.27
Total interest-bearing liabilities
$
13,182,267
3.50
%
$
13,348,133
3.57
%
$
12,642,803
3.80
%
$
12,396,020
4.26
%
$
11,559,737
4.23
%
Non-interest-bearing liabilities:
Non-interest-bearing
checking
2,633,552
2,600,775
2,672,875
2,575,575
2,560,245
Other liabilities
119,829
120,291
130,457
122,455
89,418
Stockholders' equity
1,716,232
1,670,402
1,624,084
1,574,902
1,536,013
Accumulated other comprehensive
loss
(25,377
)
(29,453
)
(32,836
)
(41,819
)
(47,584
)
Total liabilities and
stockholders' equity
$
17,626,503
$
17,710,148
$
17,037,383
$
16,627,133
$
15,697,828
Net interest spread
2.30
%
2.12
%
2.07
%
1.86
%
1.78
%
Net interest margin
3.10
%
2.92
%
2.96
%
2.84
%
2.79
%
(1) Average loans include nonaccrual loans in all periods. Loan fees of $4,430, $3,764, $4,460, $3,949, and $3,317 are included in interest income in the second quarter of 2025, first quarter of 2025, fourth quarter of 2024, third quarter of 2024, and second quarter of 2024, respectively.
(2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%.
(3) Unrealized losses on debt securities of $(36,381), $(41,970), $(46,652), $(58,802), and $(66,663) for the second quarter of 2025, first quarter of 2025, fourth quarter of 2024, third quarter of 2024, and second quarter of 2024, respectively, are excluded from the yield calculation.
(4) Includes impact of reversal of a $2.3 million accrual related to a legal matter. Please see 'GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.'
Expand