StockNews.AI
SFBS
StockNews.AI
29 days

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

1. SFBS reported diluted EPS of $1.12 for Q2 2025. 2. Net interest margin improved to 3.10%, indicating better profitability. 3. Loan growth reached $346 million, or 11% annualized in Q2. 4. Book value per share rose sequentially by 16% to $31.52. 5. Liquidity remains strong with $1.7 billion in cash assets.

45m saved
Insight
Article

FAQ

Why Bullish?

The strong earnings per share and improved interest margins suggest growth potential. Historical trends show that other banks with similar performance metrics have experienced positive stock price movements.

How important is it?

Strong Q2 performance metrics enhance investor confidence, likely leading to positive investor sentiment and stock valuation.

Why Long Term?

The improvements in key financial metrics indicate a solid foundation for sustained growth, akin to periods of growth in the banking sector post-recession.

Related Companies

CFRBUSEMSBI
BIRMINGHAM, Ala., July 21, 2025 (GLOBE NEWSWIRE) -- 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 30, 2025 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, 2025QUARTERLY 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% 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 (205) 949-0302. Contact: ServisFirst BankDavis Mange (205) 949-3420dmange@servisfirstbank.com SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)                 (In thousands except share and per share data)                      2nd Quarter 2025 1st Quarter 2025 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024CONSOLIDATED 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   100,522 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. 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 as a result of restructuring the portfolio. 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.   At June 30,2025 At March 31,2025 At December 31,2024 At September 30,2024 At June 30,2024Book value per share - GAAP $31.52  $30.56  $29.63  $28.79  $27.71 Total common stockholders' equity - GAAP  1,721,783   1,668,900   1,616,772   1,570,269   1,570,994 Adjustment for Goodwill  (13,615)  (13,615)  (13,615)  (13,615)  (13,615)Tangible common stockholders' equity - non-GAAP $1,708,168  $1,655,285  $1,603,157  $1,556,654  $1,557,379 Tangible book value per share - non-GAAP $31.27  $30.31  $29.38  $28.54  $27.46                      Stockholders' equity to total assets - GAAP  9.91%  8.95%  9.32%  9.55%  9.55%Total assets - GAAP $17,378,628  $18,636,766  $17,351,643  $16,449,178  $16,448,582 Adjustment for Goodwill  (13,615)  (13,615)  (13,615)  (13,615)  (13,615)Total tangible assets - non-GAAP $17,365,013  $18,623,151  $17,338,028  $16,435,563  $16,434,967 Tangible common equity to total tangible assets - non-GAAP  9.84%  8.89%  9.25%  9.47%  9.48%   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, 2024Net 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% CONSOLIDATED BALANCE SHEETS (UNAUDITED)         (Dollars in thousands)           June 30, 2025 June 30, 2024 % ChangeASSETS         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% CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)           (In thousands except per share data)                Three Months Ended June 30, Six Months Ended June 30,  2025 2024 2025 2024Interest 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  LOANS BY TYPE (UNAUDITED)                    (In thousands)                                           2nd quarter 2025 1st quarter 2025 4th quarter 2024 3rd quarter 2024 2nd quarter 2024Commercial, 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  SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)                (Dollars in thousands)                   2nd quarter 2025 1st quarter 2025 4th quarter 2024 3rd quarter 2024 2nd quarter 2024Allowance 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% CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)            (In thousands except per share data)              2nd Quarter 2025 1st Quarter 2025 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024Interest 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  AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)ON A FULLY TAXABLE-EQUIVALENT BASIS(Dollars in thousands)                                 2nd Quarter 2025 1st Quarter 2025 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024  Average Balance Yield / Rate Average Balance Yield / Rate Average Balance Yield / Rate Average Balance Yield / Rate Average Balance Yield / RateAssets:                              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.”

Related News