ServisFirst Bancshares(SFBS) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2025, was $63,224 thousand, up 26.3% from $50,026 thousand in the same period of 2024 [12]. - Basic earnings per common share for Q1 2025 was $1.16, compared to $0.92 for Q1 2024, representing a 26.1% increase [12]. - Comprehensive income for the three months ended March 31, 2025, was $70,295 thousand, compared to $51,029 thousand for the same period in 2024, reflecting a growth of 37.7% [14]. - Net interest income after provision for credit losses rose to $116,923 thousand, a 19.3% increase from $97,960 thousand year-over-year [12]. - Total interest income increased to $241,096 thousand in Q1 2025, a rise of 6.3% from $226,710 thousand in Q1 2024 [12]. - Noninterest expense for Q1 2025 was $46,107 thousand, slightly down from $46,231 thousand in Q1 2024, showing a decrease of 0.3% [12]. Assets and Liabilities - Total assets increased to $18,636,766 thousand as of March 31, 2025, compared to $17,351,643 thousand at December 31, 2024, reflecting a growth of 7.4% [9]. - Total liabilities reached $16,967,866 thousand as of March 31, 2025, up from $15,734,871 thousand at December 31, 2024, an increase of 7.8% [9]. - The total stockholders' equity attributable to ServisFirst Bancshares, Inc. increased to $1,668,400 thousand as of March 31, 2025, from $1,616,272 thousand at December 31, 2024, an increase of 3.2% [9]. - Total cash and cash equivalents at the end of the period reached $3,349,720 thousand, compared to $1,450,899 thousand at the end of Q1 2024, marking a significant increase [21]. Deposits - Total deposits increased to $14,429,061 thousand as of March 31, 2025, compared to $13,543,459 thousand at December 31, 2024, marking a growth of 6.5% [9]. - The company reported a net increase in interest-bearing deposits of $857,712 thousand, compared to a decrease of $506,601 thousand in the same period last year [21]. Credit Losses and Provisions - Provision for credit losses increased to $6,630 thousand in Q1 2025, compared to $4,535 thousand in Q1 2024, indicating a rise of 46.4% [12]. - The allowance for credit losses was $165,034 thousand, slightly higher than $164,458 thousand at the end of the previous quarter [41]. - The company expects national unemployment to rise and GDP growth to decline compared to the December 31, 2024 forecast, which may impact loan performance [49]. Loan Portfolio - Total loans increased to $12,886,831 thousand as of March 31, 2025, up from $12,605,836 thousand at December 31, 2024, representing a growth of 2.23% [41]. - The net loans amount to $12,721,797 thousand after accounting for an allowance for credit losses of $165,034 thousand [41]. - The credit quality indicators show that 64.39% of the real estate mortgage loans are classified as "Pass" as of March 31, 2025 [41]. - The commercial, financial, and agricultural loans represent 22.69% of total loans, a slight decrease from 22.77% [41]. - The total gross write-offs for the current period amounted to $6,092,000, reflecting a significant increase in write-offs compared to previous periods [43]. Stock and Compensation - The stock incentive plan incurred a compensation cost of approximately $864,000 for the three months ended March 31, 2025, down from $958,000 in 2024 [70]. - The company authorized the grant of up to 5,550,000 shares under its 2009 Amended and Restated Stock Incentive Plan [71]. - As of March 31, 2025, there were 139,446 unvested restricted stock shares with a weighted average grant date fair value of $70.97 [78]. Investment Securities - The total amortized cost of available-for-sale debt securities was $1,239,919,000, with a fair value of $1,203,837,000, reflecting an unrealized loss of $38,725,000 [29]. - The amortized cost of held-to-maturity debt securities was $701,713,000, with a fair value of $639,455,000, indicating an unrealized loss of $62,367,000 [30]. - The total available-for-sale debt securities increased to $1,203,837,000 as of March 31, 2025, compared to $1,161,400,000 as of December 31, 2024, reflecting a growth of about 3.6% [93]. Economic Outlook - The company anticipates inherent risks in the loan portfolio will differ based on loan type, with commercial and industrial loans facing significant risks related to cash flow and economic downturns [53]. - Real estate construction loans are subject to higher risks during economic stress, influenced by borrower creditworthiness and market dynamics [54].