ServisFirst Bancshares(SFBS) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights ServisFirst Bancshares, Inc. reported strong loan growth and an improved net interest margin for the second quarter of 2025, alongside robust liquidity and capital positions, despite a slight sequential decrease in GAAP net income Second Quarter 2025 Highlights ServisFirst Bancshares, Inc. reported strong loan growth and an improved net interest margin for the second quarter of 2025, alongside robust liquidity and capital positions, despite a slight sequential decrease in GAAP net income - CEO Tom Broughton expressed satisfaction with loan growth and the improved banking environment. CFO David Sparacio noted continued improvement in net interest margin and anticipated higher margins over the next 24 months due to asset repricing[4] Key Financial Highlights (Q2 2025 vs. Q2 2024 & Q1 2025) | Metric | Q2 2025 | vs. Q1 2025 | vs. Q2 2024 | | :----------------------------------- | :------ | :---------- | :---------- | | Diluted Earnings Per Share | $1.12 | (3.4)% | 17.9% | | Adjusted Diluted Earnings Per Share* | $1.21 | 4.4% | 27.5% | | Net Interest Margin | 3.10% | Up from 2.92% | Up from 2.79% | | Loans Growth (annualized) | $346M | 11% | - | | Book Value Per Share | $31.52 | 16% (annualized) | 14% | | Consolidated Common Equity Tier 1 Capital to Risk-Weighted Assets | 11.38% | - | Up from 10.93% | | Return on Average Common Stockholders' Equity | 14.56% | - | Up from 14.08% | - Liquidity remains strong with $1.7 billion in cash and cash equivalent assets, representing 10% of total assets, and no FHLB advances or brokered deposits[5] Financial Summary (Unaudited) The company's unaudited financial summary for Q2 2025 shows strong year-over-year growth in operating results and balance sheet items, despite some sequential declines in net income, assets, and deposits Quarterly Operating Results The company's second quarter 2025 operating results showed a slight sequential decline in GAAP net income and EPS but significant year-over-year growth, with adjusted metrics demonstrating stronger performance Quarterly Operating Results (in Thousands, except per share) | Metric | Q2 2025 | Q1 2025 | % Change (QoQ) | Q2 2024 | % Change (YoY) | | :----------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | 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% | - | | Adjusted Net Income, net of tax* | $66,133 | $63,224 | 4.6% | $52,136 | 26.8% | | Adjusted Diluted Earnings Per Share, net of tax* | $1.21 | $1.16 | 4.4% | $0.95 | 27.5% | Year-to-Date Operating Results & Balance Sheet Summary Year-to-date operating results show robust growth compared to the prior year, while the balance sheet reflects an increase in total assets, loans, and stockholders' equity year-over-year, despite a sequential decrease in total assets and deposits Year-to-Date Operating Results (in Thousands, except per share) | Metric | YTD June 30, 2025 | YTD June 30, 2024 | % Change (YoY) | | :----------------------------------- | :---------------- | :---------------- | :------------- | | 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% | | Adjusted Net Income, net of tax* | $129,357 | $103,509 | 25.0% | | Adjusted Diluted Earnings Per Share, net of tax* | $2.36 | $1.89 | - | Balance Sheet Summary (in Thousands) | Metric | June 30, 2025 | March 31, 2025 | % Change (QoQ) | June 30, 2024 | % Change (YoY) | | :------------------- | :------------ | :------------- | :------------- | :------------ | :------------- | | 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% | | 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 Detailed financials indicate improved net interest income and strong loan growth, despite a sequential dip in net income and a significant non-interest income loss, with asset quality showing some deterioration Net Income and Earnings Per Share Analysis Net income and diluted EPS for Q2 2025 saw a modest decline quarter-over-quarter but demonstrated significant growth compared to the same period last year, with improved returns on average assets and equity - Net income and net income available to common stockholders for Q2 2025 were $61.4 million, a decrease from $63.2 million in Q1 2025 but an increase from $52.1 million in Q2 2024[7] - Basic and diluted EPS were $1.12 in Q2 2025, down from $1.16 in Q1 2025 but up from $0.96 (basic) and $0.95 (diluted) in Q2 2024[7] - Annualized return on average assets was 1.40% in Q2 2025, up from 1.34% in Q2 2024. Annualized return on average common stockholders' equity was 14.56% in Q2 2025, up from 14.08% in Q2 2024[8] Net Interest Income and Margin Net interest income and margin continued to improve sequentially and year-over-year in Q2 2025, driven by higher loan and investment yields, despite a slight decrease in average interest-bearing deposit rates Net Interest Income & Margin Trends (in Millions, except percentages) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------- | :------ | :------ | :------ | | Net Interest Income | $131.7M | $123.6M | $105.9M | | Net Interest Margin | 3.10% | 2.92% | 2.79% | | Loan Yields | 6.37% | 6.28% | 6.48% | | Investment Yields | 3.37% | 3.31% | 3.33% | | Average Interest-Bearing Deposit Rates | 3.33% | 3.40% | 4.09% | | Average Federal Funds Purchased Rates | 4.49% | 4.50% | 5.50% | - A $2.3 million accrual related to a legal matter, previously recorded in interest expense, was reversed during Q2 2025[9] Loan and Deposit Growth The company experienced strong annualized loan growth in Q2 2025, both on an average and ending basis, while average total deposits saw modest annualized growth, and ending total deposits decreased sequentially Loan Growth (in Millions) | Metric | Q2 2025 | vs. Q1 2025 | vs. Q2 2024 | | :-------------------- | :------ | :---------- | :---------- | | Average Loans | $13,010 | Up $302.0M (9.5% annualized) | Up $947.1M (7.9%) | | Ending Total Loans | $13,230 | Up $345.7M (10.8% annualized) | Up $899.8M (7.3%) | Deposit Growth (in Millions) | Metric | Q2 2025 | vs. Q1 2025 | vs. Q2 2024 | | :-------------------- | :------ | :---------- | :---------- | | Average Total Deposits | $13,900 | Up $5.8M (0.2% annualized) | Up $1,030M (8.0%) | | Ending Total Deposits | $13,860 | Down $566.7M (15.8% annualized) | Up $602.9M (4.5%) | Asset Quality Asset quality metrics showed an increase in non-performing assets and net charge-offs in Q2 2025, leading to a higher provision for loan losses, primarily due to specific real estate-secured relationships and a significant loan charge-off Asset Quality Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------------------- | :------ | :------ | :------ | | Non-performing assets to total assets | 0.42% | 0.40% | 0.23% | | Annualized net charge-offs to average loans | 0.20% | 0.19% | 0.10% | | Allowance for credit losses to total loans | 1.28% | 1.28% | 1.28% | | Provision for loan losses | $11.4M | $6.5M | $5.4M | - The year-over-year increase in non-performing assets was primarily due to two real estate-secured relationships. A $4.9 million charge-off on a previously unimpaired loan occurred in Q2 2025. Higher loan growth and increased net charge-offs contributed to the rise in provision for loan losses[12][13] Non-Interest Income Total non-interest income significantly decreased in Q2 2025, primarily due to an $8.6 million loss on the sale of available-for-sale debt securities, despite increases in service charges and mortgage banking revenue Non-Interest Income (in Thousands) | Category | Q2 2025 | Q1 2025 | % Change (QoQ) | Q2 2024 | % Change (YoY) | | :----------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Total Non-interest income | $421 | $8,277 | (94.9)% | $8,891 | (95.3)% | | Service charges on deposit accounts | $2,671 | $2,558 | 4.4% | $2,293 | 16.5% | | Mortgage banking revenue | $1,323 | $613 | 115.8% | $1,379 | (4.1)% | | Net credit card income | $2,119 | $1,968 | 7.7% | $2,333 | (9.2)% | | Bank-owned life insurance (BOLI) income | $2,126 | $2,137 | (0.5)% | $2,058 | 3.3% | | Other operating income | $745 | $1,001 | (25.6)% | $828 | (10.0)% | - A significant $8.6 million loss on the sale of available-for-sale debt securities was recognized in Q2 2025 as part of a portfolio restructuring, heavily impacting total non-interest income[14] Non-Interest Expense Non-interest expense decreased sequentially in Q2 2025, driven by lower salary and benefit expenses, but increased year-over-year due to higher third-party processing and regulatory assessments, resulting in an improved efficiency ratio Non-Interest Expense (in Thousands) | Category | Q2 2025 | Q1 2025 | % Change (QoQ) | Q2 2024 | % Change (YoY) | | :----------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Total Non-interest expense | $44,204 | $46,107 | (4.1)% | $42,818 | 3.2% | | Salary and benefit expense | $22,576 | $22,879 | (1.3)% | $24,213 | (6.8)% | | Third party processing and other services | $8,005 | $7,738 | 3.5% | $7,465 | 7.2% | | FDIC and other regulatory assessments | $2,753 | $2,854 | (3.5)% | $2,202 | 25.0% | | Other operating expenses | $5,416 | $6,948 | (22.0)% | $3,623 | 49.5% | - The number of full-time equivalent (FTE) employees increased by 34 (5.44%) year-over-year to 659 at June 30, 2025, and by 23 (3.61%) quarter-over-quarter[15] Efficiency Ratios | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------- | :------ | :------ | :------ | | Efficiency ratio | 33.46% | 34.97% | 37.31% | | Adjusted efficiency ratio | 31.94% | - | - | Income Tax Expense Income tax expense increased year-over-year in Q2 2025, but the effective tax rate decreased, benefiting from a significant reduction in provision due to excess tax benefits from stock option exercises Income Tax Expense (in Millions, except percentages) | Metric | Q2 2025 | Q2 2024 | % Change (YoY) | | :-------------------- | :------ | :------ | :------------- | | Income tax expense | $15.2M | $14.5M | 5.0% | | Effective tax rate | 19.82% | 21.71% | - | - The company recognized a $2.1 million reduction in provision for income taxes in Q2 2025 due to excess tax benefits from stock option exercises and restricted stock vesting, compared to $396,000 in Q2 2024[16] Company Information & Disclosures This section provides an overview of ServisFirst Bancshares, Inc.'s operations and a cautionary note regarding forward-looking statements, emphasizing inherent risks and uncertainties About ServisFirst Bancshares, Inc. ServisFirst Bancshares, Inc. is a Birmingham, Alabama-based bank holding company that provides a comprehensive range of financial services through its subsidiary, ServisFirst Bank, across multiple Southeastern states - ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama, operating through its subsidiary ServisFirst Bank[17] - The bank provides business and personal financial services across Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia, including commercial, consumer, and other loans, deposits, electronic banking, treasury/cash management, and correspondent banking services[17] Forward-Looking Statements This section cautions investors about forward-looking statements, highlighting the inherent risks and uncertainties that could cause actual results to differ from projections, and advises against undue reliance on such statements - Statements concerning future operations, results, or performance are identified as 'forward-looking statements' and involve inherent risks and uncertainties[19] - Factors that could cause actual results to differ include general economic conditions, changes in interest rates, accounting/tax principles, regulatory requirements, loan portfolio changes, cyber-attacks, liquidity costs, legal cases, creditworthiness of customers, natural disasters, and increased competition[19][20] - Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made, and the company assumes no obligation to update or revise them[20] Selected Financial Highlights (Tables) This section presents key consolidated financial statements and ratios, including income, balance sheet, and capital data, illustrating quarterly and year-over-year performance trends and capital adequacy Consolidated Statement of Income (Quarterly Trends) This table provides a detailed breakdown of the consolidated statement of income for the past five quarters, showing trends in interest income, interest expense, net interest income, non-interest income, non-interest expense, and net income Consolidated Statement of Income (in Thousands) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | :------ | | 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 | | 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 | | Net income | $61,424 | $63,224 | $65,173 | $59,907 | $52,136 | | Diluted earnings per share | $1.12 | $1.16 | $1.19 | $1.10 | $0.95 | Consolidated Balance Sheet Data This table presents key consolidated balance sheet figures for the past five quarters, illustrating trends in total assets, loans, deposits, and stockholders' equity, including book and tangible book value per share Consolidated Balance Sheet Data (in Thousands) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | 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 | | Total deposits | $13,862,319 | $14,429,061 | $13,543,459 | $13,146,529 | $13,259,392 | | Stockholders' equity | $1,721,783 | $1,668,900 | $1,616,772 | $1,570,269 | $1,510,576 | | 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 This table provides a summary of key annualized financial ratios for the past five quarters, including net interest margin, return on average assets, return on average common stockholders' equity, and efficiency ratio, showing overall performance trends Selected Financial Ratios (Annualized) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | :------ | | 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% | Capital Ratios This table presents the regulatory capital ratios for the past five quarters, including common equity tier 1, tier 1, total capital to risk-weighted assets, and tangible common equity to total tangible assets, indicating strong capital adequacy Capital Ratios (Preliminary for most recent period) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | :------ | | 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% | | Tangible common equity to total tangible assets (1) | 9.84% | 8.89% | 9.25% | 9.47% | 9.33% | GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures This section defines and reconciles non-GAAP financial measures, such as adjusted net income and tangible book value, providing management's rationale for their use in assessing underlying performance Explanation of Non-GAAP Measures This section defines the non-GAAP financial measures used in the report, such as adjusted net income and tangible book value, and explains the specific adjustments made, including a loss on securities sale and a legal reserve reversal, to provide a clearer view of underlying performance - The press release includes non-GAAP financial measures such as adjusted net income, adjusted diluted EPS, adjusted return on average assets, adjusted return on average common stockholders' equity, and adjusted efficiency ratio[23] - Adjustments include a $7.2 million FDIC special assessment in Q4 2023 (with an additional $1.8 million in Q1 2024), an $8.6 million loss on sale of available-for-sale debt securities in Q2 2025, and a $2.3 million legal reserve reversal from interest expense in Q2 2025[23] - These adjustments are considered unusual or infrequent and are excluded to provide a clearer view of run-rate performance. Non-GAAP measures also include tangible common stockholders' equity and tangible book value per share, which exclude goodwill[23] - Management believes these non-GAAP measures offer useful supplementary information but are not a substitute for GAAP results and may not be comparable to those used by other companies[24] Reconciliation Tables This section provides detailed reconciliation tables for various non-GAAP financial measures, systematically showing the adjustments made to GAAP figures to derive adjusted results for book value, net income, EPS, net interest margin, and returns Book Value and Tangible Common Equity Reconciliation (in Thousands, except per share) | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 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% | Adjusted Net Income and EPS Reconciliation (in Thousands, except per share) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------------------------------- | :------ | :------ | :------ | :------- | :------- | | Net income - GAAP | $61,424 | $63,224 | $52,136 | $124,648 | $102,162 | | Adjustments (net of tax) | $4,709 | $0 | $0 | $4,709 | $1,347 | | Adjusted net income - non-GAAP | $66,133 | $63,224 | $52,136 | $129,357 | $103,509 | | Diluted earnings per share - GAAP | $1.12 | $1.16 | $0.95 | $2.28 | $1.87 | | Adjustments (per share) | $0.09 | $0 | $0 | $0.08 | $0.02 | | Adjusted diluted earnings per share - non-GAAP | $1.21 | $1.16 | $0.95 | $2.36 | $1.89 | Adjusted Net Interest Margin Reconciliation (in Millions, except percentages) | Metric | Q2 2025 | YTD 2025 | | :----------------------------------- | :------ | :------- | | Net interest income, fully taxable-equivalent basis | $131.777 | $255.394 | | Legal matter accrual reversal (net of tax) | $(1.705) | $(1.705) | | Adjusted net interest income, fully taxable-equivalent basis | $130.072 | $253.689 | | Net interest margin - GAAP | 3.10% | 3.01% | | Adjusted net interest margin - non-GAAP | 3.06% | 2.99% | Adjusted Return on Average Assets and Equity Reconciliation | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------------------------------- | :------ | :------ | :------ | :------- | :------- | | Return on average assets - GAAP | 1.40% | 1.45% | 1.34% | 1.42% | 1.30% | | 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% | | Adjusted return on average common stockholders' equity - non-GAAP | 15.68% | 15.63% | 14.08% | 15.65% | 14.15% | Adjusted Efficiency Ratio Reconciliation | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------------------------------- | :------ | :------ | :------ | :------- | :------- | | Efficiency ratio - GAAP | 33.46% | 34.97% | 37.31% | 34.22% | 39.42% | | Adjusted efficiency ratio - non-GAAP | 31.94% | 34.97% | 37.31% | 33.42% | 38.63% | Consolidated Financial Statements (Detailed) This section provides detailed consolidated financial statements, including balance sheets, income statements, loan portfolio breakdown, credit loss experience, and average balance sheet analysis, offering a comprehensive view of the company's financial position and performance Consolidated Balance Sheets This table presents the detailed consolidated balance sheets as of June 30, 2025, and June 30, 2024, showing assets, liabilities, and stockholders' equity with year-over-year percentage changes, highlighting growth in cash, loans, and equity Consolidated Balance Sheets (in Thousands) | Category | June 30, 2025 | June 30, 2024 | % Change (YoY) | | :----------------------------------- | :------------ | :------------ | :------------- | | ASSETS | | | | | Cash and cash equivalents | $1,710,904 | $1,276,765 | 34% | | Available for sale debt securities | $1,227,851 | $1,174,386 | 5% | | Loans, net | $13,062,601 | $12,174,688 | 7% | | Total assets | $17,378,628 | $16,049,812 | 8% | | LIABILITIES | | | | | Total deposits | $13,862,319 | $13,259,392 | 5% | | Federal funds purchased | $1,599,135 | $1,097,154 | 46% | | Total liabilities | $15,656,845 | $14,539,236 | 8% | | STOCKHOLDERS' EQUITY | | | | | Total stockholders' equity | $1,721,783 | $1,510,576 | 14% | Consolidated Statements of Income (Quarterly and Six Months) This table provides the consolidated statements of income for the three and six months ended June 30, 2025, and June 30, 2024, detailing interest income, interest expense, non-interest income, non-interest expense, and net income, highlighting year-over-year performance Consolidated Statements of Income (in Thousands, except per share) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------------------------------- | :------ | :------ | :------- | :------- | | Total interest income | $246,635 | $227,540 | $487,731 | $454,250 | | 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 | | Total non-interest income | $421 | $8,891 | $8,698 | $17,704 | | 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 | | Diluted earnings per common share | $1.12 | $0.95 | $2.28 | $1.87 | Loans by Type This table categorizes the loan portfolio by type for the past five quarters, showing consistent growth across commercial, real estate (construction, owner-occupied, 1-4 family, non-owner occupied), and consumer segments Loans by Type (in Thousands) | Loan Type | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 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 (Subtotal) | $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 This table provides a detailed summary of credit loss experience for the past five quarters, including trends in allowance for credit losses, charge-offs, recoveries, net charge-offs, provision for loan losses, and nonperforming assets, indicating a rise in nonperforming assets and provision for loan losses Summary of Credit Loss Experience (in Thousands) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | :------ | | Allowance for credit losses (Ending balance) | $169,959 | $165,034 | $164,458 | $160,755 | $158,092 | | Total charge offs | $7,502 | $6,092 | $4,670 | $3,427 | $3,582 | | 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 | | Nonperforming assets (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% | Average Balance Sheets and Net Interest Analysis This table provides a comprehensive analysis of average balance sheets and net interest income on a fully taxable-equivalent basis for the past five quarters, detailing average balances, yields, and rates for interest-earning assets and interest-bearing liabilities, showing an improving net interest spread and margin Average Balance Sheets and Net Interest Analysis (in Thousands) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :----------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Total interest earning assets | $17,076,353 | $17,189,693 | $16,526,418 | $16,122,366 | $15,241,008 | | Total interest bearing liabilities | $13,182,267 | $13,348,133 | $12,642,803 | $12,396,020 | $11,559,737 | | 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% |