ServisFirst Bancshares, Inc. Announces Results For Second Quarter of 2025
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, 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
%
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)
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 2024
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
100,522
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 30,2024
Book 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, 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
