ServisFirst Bancshares(SFBS) - 2025 Q2 - Quarterly Report

Financial Performance - Net income for the quarter ended June 30, 2025, was $61.4 million, compared to $52.1 million for the same quarter in 2024, representing a year-over-year increase of 17.9%[119] - Basic and diluted earnings per common share were both $1.12 for the second quarter of 2025, compared to $0.96 and $0.95 in the corresponding period in 2024[119] - Net income for the quarter ended June 30, 2025, was $61.4 million, up from $52.1 million in the same quarter of 2024, representing a year-over-year increase of 17.6%[168] - Basic and diluted earnings per common share for the three months ended June 30, 2025, were both $1.12, compared to $0.96 in the corresponding period in 2024, reflecting a 16.7% increase[169] Asset and Loan Growth - As of June 30, 2025, consolidated total assets were $17.38 billion, an increase of $27.0 million, or 0.2%, from $17.35 billion at December 31, 2024[118] - Total loans reached $13.23 billion, an increase of $626.7 million, or 5.0%, from $12.61 billion at December 31, 2024[130] - Total loans outstanding increased to $13,232,560 thousand in June 2025, up from $12,332,780 thousand in June 2024, representing a growth of 7.3% year-over-year[138] - Average loans for the second quarter of 2025 were $13.01 billion, an increase of $947.1 million, or 7.9%, from the second quarter of 2024[123] - The average loans outstanding for the six months ended June 30, 2025, were $12,859,947 thousand, compared to $11,901,985 thousand for the same period in 2024, showing an increase of 8.0%[138] Deposit Growth - Total deposits increased to $13.86 billion, up $318.9 million, or 2.4%, from $13.54 billion at December 31, 2024[118] - Average deposits for the second quarter of 2025 were $13.90 billion, an increase of $1.03 billion, or 8.0%, from the second quarter of 2024[123] - Total deposits increased to $13.86 billion, up $318.9 million, or 2.4%, from $13.54 billion at December 31, 2024[145] Interest Income and Margin - Net interest income for the second quarter of 2025 was $131.7 million, an increase of $25.8 million, or 24.4%, from the second quarter of 2024[123] - The net interest margin improved to 3.10% for the second quarter of 2025, up 31 basis points from 2.79% in the second quarter of 2024[123] - Taxable-equivalent net interest income increased by $25.9 million, or 24.4%, to $131.8 million for the three months ended June 30, 2025, compared to $105.9 million for the same period in 2024[171] - The net interest margin for the three months ended June 30, 2025, was 3.10%, compared to 2.79% for the corresponding period in 2024, indicating an improvement of 11.1%[171] - The net interest spread widened to 2.30% in Q2 2025 from 1.78% in Q2 2024, indicating improved efficiency in interest income generation[175] Credit Quality - The allowance for credit losses at the end of June 2025 was $169,959 thousand, compared to $158,092 thousand at the end of December 2024, reflecting an increase of 7.4%[139] - Nonperforming loans rose to $72,168 thousand as of June 30, 2025, a significant increase of 69.9% from $42,466 thousand at December 31, 2024[143] - The company reported net charge-offs of $6,484 thousand for the three months ended June 30, 2025, compared to $3,153 thousand for the same period in 2024, indicating an increase of 105.5%[139] - The provision for credit losses on loans was $11,409 thousand for the three months ended June 30, 2025, compared to $5,353 thousand for the same period in 2024, reflecting a year-over-year increase of 112.3%[139] - Nonperforming assets decreased to $311,000, a reduction of $2.2 million, or 87.7%, from $2.5 million at December 31, 2024[144] Capital and Equity - Total stockholders' equity attributable to the company was $1.72 billion, or 9.91% of total assets, as of June 30, 2025, up from $1.62 billion, or 9.32% of total assets, at December 31, 2024[155] - Total capital to risk-weighted assets ratio for ServisFirst Bank as of June 30, 2025, was 12.90%, exceeding the 8.00% regulatory requirement[157] - The company is categorized as well-capitalized under the regulatory framework for prompt corrective action as of June 30, 2025[156] Noninterest Income and Expenses - Noninterest income decreased to $421,000 for the three months ended June 30, 2025, a decline of $8.5 million, or 95.3%, compared to the same period in 2024[189] - Service charges on deposit accounts increased by $378,000, or 16.5%, to $2.7 million for the three months ended June 30, 2025[189] - Total noninterest expense rose to $44.2 million for the three months ended June 30, 2025, an increase of $1.4 million, or 3.2%, compared to the same period in 2024[191] Interest Rate Risk Management - The asset-liability committee analyzes the maturities of rate-sensitive assets and liabilities to measure the "gap" between them[198] - A gap ratio greater than one indicates an "asset-sensitive" balance sheet, while a ratio less than one indicates a "liability-sensitive" balance sheet[198] - The company maintains a policy to ensure net interest margins do not change more than 6% with a 100 basis point interest rate change[198] - There have been no changes to the policies or procedures for analyzing interest rate risk since December 31, 2024[198]