ServisFirst Bancshares(SFBS) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights This section provides an overview of ServisFirst Bancshares' strong Q3 2025 financial performance and management's positive outlook on profitability and growth Third Quarter 2025 Highlights ServisFirst Bancshares, Inc. reported strong profitability across all regions in Q3 2025, with significant year-over-year growth in earnings, loans, and deposits, alongside an expanded net interest margin and improved adjusted return on average common stockholders' equity - All regions and markets were solidly profitable in Q3 2025, with newer offices reaching profitability[4] - Net interest margin expanded, and pricing discipline was maintained on both loans and deposits[4] Key Financial Highlights (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 | Q3 2024 | % Change YoY | | :------------------------------------- | :------ | :------ | :----------- | | Diluted Earnings Per Share (GAAP) | $1.20 | $1.10 | 9.1% | | Adjusted Diluted Earnings Per Share | $1.30 | $1.10 | 18.2% | | Net Interest Margin | 3.09% | 2.84% | +25 bps | | Loans Growth | $973.7M | - | 7.9% | | Deposits Growth | $960.4M | - | 7.3% | | Book Value Per Share | $32.62 | $28.79 | 13.3% | | Adjusted Return on Average Common Stockholders' Equity | 16.21% | 15.55% | +66 bps | - Liquidity remains strong with $1.77 billion in cash and cash equivalent assets (10.1% of total assets), with no FHLB advances or brokered deposits[6] - Consolidated common equity tier 1 capital to risk-weighted assets increased from 11.25% to 11.49% year-over-year[6] - Sold $83.4 million of low-yielding bonds at a loss and reinvested in higher-yielding securities during Q3 2025[6] Management Commentary Management expressed satisfaction with the solid profitability across all markets, the expansion of net interest margin, and consistent year-over-year growth in earnings and shareholder returns - Tom Broughton, Chairman, President, and CEO, highlighted solid profitability across all regions and markets, with newer offices achieving profitability[4] - David Sparacio, CFO, noted satisfaction with the continued expansion of net interest margin and effective pricing discipline on loans and deposits, contributing to solid year-over-year earnings growth and top shareholder returns[4] Financial Summary (Unaudited) This section presents key unaudited quarterly and year-to-date operating results and balance sheet data, highlighting financial performance and position Quarterly Operating Results The company reported a 6.8% sequential increase in net income and net income available to common stockholders, reaching $65.6 million, and a 7.1% increase in diluted EPS to $1.20 for Q3 2025 Quarterly Operating Results (Q3 2025 vs. Q2 2025 vs. Q3 2024) (in thousands, except per share and percentages) | Metric | Sep 30, 2025 | Jun 30, 2025 | % Change QoQ | Sep 30, 2024 | % Change YoY | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net Income | $65,571 | $61,424 | 6.8% | $59,907 | 9.5% | | Net Income Available to Common Stockholders | $65,571 | $61,393 | 6.8% | $59,907 | 9.5% | | Diluted Earnings Per Share | $1.20 | $1.12 | 7.1% | $1.10 | 9.1% | | Return on Average Assets | 1.47% | 1.40% | - | 1.43% | - | | Return on Average Common Stockholders' Equity | 14.88% | 14.56% | - | 15.55% | - | | Adjusted Net Income, net of tax* | $71,422 | $66,133 | 8.0% | $59,907 | 19.2% | | Adjusted Diluted Earnings Per Share, net of tax* | $1.30 | $1.21 | 7.4% | $1.10 | 18.2% | Year-to-Date Operating Results For the nine months ended September 30, 2025, net income increased by 17.4% year-over-year to $190.2 million, with diluted EPS rising 17.2% to $3.48, and adjusted metrics showed even stronger growth Year-to-Date Operating Results (Nine Months Ended Sep 30, 2025 vs. 2024) (in thousands, except per share and percentages) | Metric | Sep 30, 2025 | Sep 30, 2024 | % Change YoY | | :------------------------------------- | :----------- | :----------- | :----------- | | Net Income | $190,219 | $162,069 | 17.4% | | Net Income Available to Common Stockholders | $190,188 | $162,038 | 17.4% | | Diluted Earnings Per Share | $3.48 | $2.97 | 17.2% | | Return on Average Assets | 1.44% | 1.35% | - | | Return on Average Common Stockholders' Equity | 15.01% | 14.51% | - | | Adjusted Net Income, net of tax* | $200,779 | $163,416 | 22.9% | | Adjusted Diluted Earnings Per Share, net of tax* | $3.67 | $2.99 | 22.7% | Balance Sheet Data As of September 30, 2025, total assets grew by 6.9% year-over-year to $17.58 billion, driven by a 7.9% increase in loans and a 7.3% increase in total deposits, with stockholders' equity also seeing a substantial 13.5% increase Balance Sheet Data (As of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Metric (in Thousands) | Sep 30, 2025 | Jun 30, 2025 | % Change QoQ | Sep 30, 2024 | % Change YoY | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Assets | $17,584,199 | $17,378,628 | 1.2% | $16,449,178 | 6.9% | | Loans | $13,311,967 | $13,232,560 | 0.6% | $12,338,226 | 7.9% | | Non-interest-bearing Demand Deposits | $2,598,895 | $2,632,058 | (1.3)% | $2,576,329 | 0.9% | | Total Deposits | $14,106,922 | $13,862,319 | 1.8% | $13,146,529 | 7.3% | | Stockholders' Equity | $1,781,647 | $1,721,783 | 3.5% | $1,570,269 | 13.5% | Detailed Financial Review This section provides an in-depth analysis of the company's net income, net interest margin, loan and deposit growth, asset quality, and non-interest income and expenses Net Income and EPS Analysis ServisFirst Bancshares reported a net income of $65.6 million for Q3 2025, an increase from $61.4 million in Q2 2025 and $59.9 million in Q3 2024, with basic and diluted earnings per common share both at $1.20 in Q3 2025, up from $1.12 in Q2 2025 and $1.10 in Q3 2024 Net Income and EPS (Q3 2025 vs. Q2 2025 vs. Q3 2024) (in millions, except per share) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------------------------- | :------ | :------ | :------ | | Net Income | $65.6 million | $61.4 million | $59.9 million | | Net Income Available to Common Stockholders | $65.6 million | $61.4 million | $59.9 million | | Basic and Diluted EPS | $1.20 | $1.12 | $1.10 | Annualized Returns (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 | Q3 2024 | | :------------------------------------- | :------ | :------ | | Return on Average Assets | 1.47% | 1.43% | | Return on Average Common Stockholders' Equity | 14.88% | 15.55% | Net Interest Income and Margin Analysis Net interest income increased to $133.4 million in Q3 2025, up from $115.1 million in Q3 2024, with the net interest margin at 3.09%, an increase from 2.84% YoY, but slightly down from 3.10% QoQ (3.06% adjusted for a legal accrual reversal) Net Interest Income and Margin (Q3 2025 vs. Q2 2025 vs. Q3 2024) (in millions, except percentages) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------------------------- | :------ | :------ | :------ | | Net Interest Income | $133.4 million | $131.7 million | $115.1 million | | Net Interest Margin | 3.09% | 3.10% (3.06% adjusted) | 2.84% | | Loan Yields | 6.34% | 6.37% | 6.62% | | Investment Yields | 3.60% | 3.37% | 3.57% | | Average Interest-Bearing Deposit Rates | 3.41% | 3.33% (3.41% adjusted) | 4.12% | - The net interest margin in Q2 2025 was negatively impacted by a $2.3 million accrual reversal related to a legal matter, which, when adjusted, brings the Q2 2025 margin to 3.06%[10] Loan and Deposit Growth Analysis Average loans for Q3 2025 increased by $195.7 million (6.0% annualized) QoQ and $839.1 million (6.8%) YoY, reaching $13.21 billion, with ending total loans at $13.31 billion, up 7.9% YoY; average total deposits grew by $238.3 million (6.8% annualized) QoQ and $617.8 million (4.6%) YoY, reaching $14.13 billion, with ending total deposits at $14.11 billion, up 7.3% YoY Loan Growth (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric | Q3 2025 | Q2 2025 | Change QoQ | Q3 2024 | Change YoY | | :------------------------------------- | :------ | :------ | :--------- | :------ | :--------- | | Average Loans | $13.21 billion | $13.01 billion | +$195.7 million (6.0% annualized) | $12.37 billion | +$839.1 million (6.8%) | | Ending Total Loans | $13.31 billion | $13.23 billion | +$79.4 million (2.4% annualized) | $12.34 billion | +$973.7 million (7.9%) | Deposit Growth (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric | Q3 2025 | Q2 2025 | Change QoQ | Q3 2024 | Change YoY | | :------------------------------------- | :------ | :------ | :--------- | :------ | :--------- | | Average Total Deposits | $14.13 billion | $13.90 billion | +$238.3 million (6.8% annualized) | $13.52 billion | +$617.8 million (4.6%) | | Ending Total Deposits | $14.11 billion | $13.86 billion | +$244.6 million (7.1% annualized) | $13.15 billion | +$960.4 million (7.3%) | Asset Quality and Credit Loss Experience Asset quality metrics showed an increase in non-performing assets to total assets to 0.96% in Q3 2025, primarily due to a large real-estate secured relationship, with net charge-offs to average loans also increasing to 0.27%, while the allowance for credit losses remained stable at 1.28% of total loans Asset Quality Metrics (Q3 2025 vs. Q2 2025 vs. Q3 2024) (in millions, except percentages) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------------------------- | :------ | :------ | :------ | | Non-performing assets to total assets | 0.96% | 0.42% | 0.25% | | Annualized net charge-offs to average loans | 0.27% | 0.20% | 0.09% | | Allowance for credit losses as % of total loans | 1.28% | 1.28% | 1.30% | | Provision for credit losses | $9.3 million | $11.4 million | $5.4 million | - The year-over-year increase in non-performing assets was driven by a large, real-estate secured relationship[13] - During Q3 2025, $3.0 million was charged off on loans not previously impaired[13] Non-Interest Income Analysis Total non-interest income decreased by 66.9% year-over-year to $2.8 million in Q3 2025, primarily due to a $7.8 million loss on the sale of available-for-sale debt securities as part of a portfolio restructuring, but increased significantly by 572.9% on a linked-quarter basis Non-Interest Income (Q3 2025 vs. Q3 2024 vs. Q2 2025) (in millions, except percentages) | Metric | Q3 2025 | Q3 2024 | % Change YoY | Q2 2025 | % Change QoQ | | :------------------------------------- | :------ | :------ | :----------- | :------ | :----------- | | Total Non-interest Income | $2.8 million | $8.5 million | (66.9)% | $0.4 million | 572.9% | | Service Charges on Deposit Accounts | $3.3 million | $2.3 million | 41.6% | $2.7 million | 24.1% | | Mortgage Banking Revenue | $1.9 million | $1.4 million | 37.9% | $1.3 million | 40.9% | | Net Credit Card Income | $2.4 million | $1.9 million | 24.9% | $2.1 million | 13.5% | | Securities Losses | ($7.8 million) | $0 | - | ($8.6 million) | - | | Bank-Owned Life Insurance (BOLI) Income | $2.4 million | $2.1 million | 13.8% | $2.1 million | 13.1% | - The company increased service charge rates on many checking account products in July 2025[14] - An additional $125 million in BOLI contracts were purchased during Q3 2025[14] Non-Interest Expense Analysis Non-interest expense increased by 5.2% year-over-year and 8.6% on a linked-quarter basis to $48.0 million in Q3 2025, with salary and benefit expense rising while equipment and occupancy expense decreased, resulting in an efficiency ratio of 35.22% for the quarter Non-Interest Expense (Q3 2025 vs. Q3 2024 vs. Q2 2025) (in millions, except percentages) | Metric | Q3 2025 | Q3 2024 | % Change YoY | Q2 2025 | % Change QoQ | | :------------------------------------- | :------ | :------ | :----------- | :------ | :----------- | | Total Non-interest Expense | $48.0 million | $45.6 million | 5.2% | $44.2 million | 8.6% | | Salary and Benefit Expense | $25.5 million | $25.1 million | 1.9% | $22.6 million | 13.0% | | Equipment and Occupancy Expense | $3.6 million | $3.8 million | (4.7)% | $3.5 million | 2.6% | | Efficiency Ratio | 35.22% | 36.90% | - | 33.46% | - | | Adjusted Efficiency Ratio | 33.31% | - | - | - | - | - The number of full-time equivalent (FTE) employees increased by 30 (4.8%) year-over-year to 650 at September 30, 2025, but decreased by 9 (1.3%) from the end of Q2 2025[15] Income Tax Expense Analysis Income tax expense increased by 6.2% year-over-year to $13.3 million in Q3 2025, but decreased by 12.7% on a linked-quarter basis, with the effective tax rate at 16.81%, lower than previous periods, partly due to a $3.6 million tax credit from a renewable energy investment Income Tax Expense and Effective Tax Rate (Q3 2025 vs. Q3 2024 vs. Q2 2025) (in millions, except percentages) | Metric | Q3 2025 | Q3 2024 | % Change YoY | Q2 2025 | % Change QoQ | | :------------------------------------- | :------ | :------ | :----------- | :------ | :----------- | | Income Tax Expense | $13.3 million | $12.5 million | 6.2% | $15.2 million | (12.7)% | | Effective Tax Rate | 16.81% | 17.23% | - | 19.82% | - | - The company invested in a renewable energy tax credit during Q3 2025, receiving approximately $3.6 million in tax credits and other benefits[16] Company Information This section offers an overview of ServisFirst Bancshares, Inc. and includes cautionary information regarding forward-looking statements About ServisFirst Bancshares, Inc. ServisFirst Bancshares, Inc. is a bank holding company headquartered in Birmingham, Alabama, providing a comprehensive range of business and personal financial services through its subsidiary, ServisFirst Bank, across multiple states in the Southeast US - ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama[17] - Through ServisFirst Bank, it offers business and personal financial services in Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia, including commercial, consumer, and other loans, deposits, electronic banking, treasury and cash management, and correspondent banking services[17] Forward-Looking Statements This section serves as a cautionary note regarding forward-looking statements, emphasizing that actual results may differ materially from projections due to various inherent risks and uncertainties, and advises against undue reliance on such statements - Statements concerning future operations, results, or performance are identified as 'forward-looking statements' and are estimates reflecting management's judgment, involving inherent risks and uncertainties[18][19] - Factors that could cause actual results to differ include general economic conditions, changes in interest rates, accounting and tax principles, legislation or regulatory requirements, changes in loan portfolio and deposit base, cyber-attacks, liquidity costs, legal cases, creditworthiness of customers, natural disasters, and increased competition[19] - Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made, and ServisFirst Bancshares, Inc. assumes no obligation to update or revise them[19] Selected Financial Highlights (Unaudited) This section presents condensed consolidated statements of income, balance sheet data, and key financial and capital ratios over multiple quarters Consolidated Statement of Income Highlights This section provides a condensed consolidated statement of income for the past five quarters, illustrating trends in key revenue and expense components, including net interest income, non-interest income, and net income Consolidated Statement of Income (Q3 2025 - Q3 2024) | (In thousands) | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Interest income | $251,308 | $246,635 | $241,096 | $243,892 | $247,979 | | Interest expense | 117,860 | 114,948 | 117,543 | 120,724 | 132,858 | | Net interest income | 133,448 | 131,687 | 123,553 | 123,168 | 115,121 | | Provision for credit losses | 9,463 | 11,296 | 6,630 | 5,704 | 5,659 | | Non-interest income | 2,833 | 421 | 8,277 | 8,803 | 8,549 | | Non-interest expense | 47,996 | 44,204 | 46,107 | 46,896 | 45,632 | | Net income | 65,571 | 61,424 | 63,224 | 65,173 | 59,907 | | Diluted earnings per share | $1.20 | $1.12 | $1.16 | $1.19 | $1.10 | Consolidated Balance Sheet Data Highlights This section presents key consolidated balance sheet data for the past five quarters, highlighting the growth in total assets, loans, deposits, and stockholders' equity Consolidated Balance Sheet Data (Q3 2025 - Q3 2024) | (In thousands) | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Total assets | $17,584,199 | $17,378,628 | $18,636,766 | $17,351,643 | $16,449,178 | | Loans | 13,311,967 | 13,232,560 | 12,886,831 | 12,605,836 | 12,338,226 | | Total deposits | 14,106,922 | 13,862,319 | 14,429,061 | 13,543,459 | 13,146,529 | | Stockholders' equity | 1,781,647 | 1,721,783 | 1,668,900 | 1,616,772 | 1,570,269 | | Book value per share | $32.62 | $31.52 | $30.57 | $29.63 | $28.79 | | Tangible book value per share (1) | $32.37 | $31.27 | $30.32 | $29.38 | $28.54 | Selected Financial Ratios This section provides 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 performance trends Selected Financial Ratios (Annualized, Q3 2025 - Q3 2024) | Metric | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Net interest margin | 3.09% | 3.10% | 2.92% | 2.96% | 2.84% | | Return on average assets | 1.47% | 1.40% | 1.45% | 1.52% | 1.43% | | Return on average common stockholders' equity | 14.88% | 14.56% | 15.63% | 16.29% | 15.55% | | Efficiency ratio | 35.22% | 33.46% | 34.97% | 35.54% | 36.90% | Capital Ratios The company's regulatory capital ratios demonstrate strong capital adequacy, with Common Equity Tier 1 Capital to Risk-Weighted Assets increasing to 11.49% in Q3 2025 Capital Ratios (Q3 2025 - Q3 2024) | Metric | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Common equity tier 1 capital to risk-weighted assets | 11.49% | 11.38% | 11.48% | 11.42% | 11.25% | | Tier 1 capital to risk-weighted assets | 11.50% | 11.38% | 11.48% | 11.42% | 11.25% | | Total capital to risk-weighted assets | 12.91% | 12.81% | 12.93% | 12.90% | 12.77% | | Tier 1 capital to average assets | 10.01% | 9.78% | 9.48% | 9.59% | 9.54% | | Tangible common equity to total tangible assets (1) | 10.06% | 9.84% | 8.89% | 9.25% | 9.47% | - Regulatory capital ratios for the most recent period are preliminary[22] GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures This section explains and reconciles non-GAAP financial measures to their most directly comparable GAAP counterparts, detailing adjustments for specific items Explanation of Non-GAAP Financial Measures This section defines the non-GAAP financial measures used, such as adjusted net income and tangible book value per share, and explains the specific adjustments made for unusual or infrequent items like FDIC special assessments, legal accrual reversals, and losses on marketable securities, noting their supplementary nature to GAAP results - Non-GAAP financial measures include adjusted net income, adjusted diluted earnings per share, adjusted net interest margin, adjusted return on average assets, adjusted return on average common stockholders' equity, adjusted cost of interest-bearing deposits, adjusted efficiency ratio, tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets[23] - Adjustments are made for unusual or infrequent items such as the FDIC's special assessment, a legal matter accrual reversal, and losses on the sale of available-for-sale debt securities due to portfolio restructuring[23] - These non-GAAP measures provide useful supplementary information to management and investors but have limitations and are not substitutes for GAAP results, nor are they necessarily comparable to other companies' non-GAAP measures[24] Non-GAAP Reconciliation Tables Detailed reconciliation tables are provided to bridge GAAP financial measures to their corresponding non-GAAP adjusted figures, covering various metrics including book value, total assets, net income, EPS, net interest income, cost of interest-bearing deposits, return on average assets, return on average common stockholders' equity, and efficiency ratio Tangible Common Stockholders' Equity Reconciliation (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Book value per share - GAAP | $32.62 | $31.52 | $30.57 | $29.63 | $28.79 | | Total common stockholders' equity - GAAP | 1,781,647 | 1,721,783 | 1,668,900 | 1,616,772 | 1,570,269 | | Adjustment for Goodwill | (13,615) | (13,615) | (13,615) | (13,615) | (13,615) | | Tangible common stockholders' equity - non GAAP | $1,768,032 | $1,708,168 | $1,655,285 | $1,603,157 | $1,556,654 | | Tangible book value per share - non-GAAP | $32.37 | $31.27 | $30.32 | $29.38 | $28.54 | Adjusted Net Income and EPS Reconciliation (in thousands, except per share) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------ | :------- | :------- | | Net income - GAAP | $65,571 | $61,424 | $59,907 | $190,219 | $162,069 | | Adjustments (FDIC, Legal, Securities Loss, Tax) | 5,851 | 4,709 | - | 10,560 | 1,347 | | Adjusted net income - non-GAAP | $71,422 | $66,133 | $59,907 | $200,779 | $163,416 | | Diluted earnings per share - GAAP | $1.20 | $1.12 | $1.10 | $3.48 | $2.97 | | Adjusted diluted earnings per share - non GAAP | $1.30 | $1.21 | $1.10 | $3.67 | $2.99 | Adjusted Net Interest Margin and Efficiency Ratio Reconciliation | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------ | :------- | :------- | | Net interest margin-GAAP | 3.09% | 3.10% | 2.84% | 3.04% | 2.77% | | Adjusted net interest margin-non-GAAP | 3.09% | 3.06% | 2.84% | 3.02% | 2.77% | | Efficiency ratio | 35.22% | 33.46% | 36.90% | 34.56% | 38.53% | | Adjusted efficiency ratio - non-GAAP | 33.31% | 31.94% | 36.90% | 33.38% | 37.87% | Detailed Consolidated Financial Statements This section provides comprehensive unaudited consolidated financial statements, including balance sheets, income statements, loan composition, and credit loss experience Consolidated Balance Sheets (Unaudited) The consolidated balance sheets provide a detailed breakdown of assets, liabilities, and stockholders' equity as of September 30, 2025, compared to September 30, 2024, showing overall growth in total assets, loans, and deposits Consolidated Balance Sheets (in thousands) | ASSETS | Sep 30, 2025 | Sep 30, 2024 | % Change | | :------------------------------------- | :----------- | :----------- | :----------- | | Cash and cash equivalents | $1,773,305 | $1,760,231 | 1% | | Loans, net | 13,141,732 | 12,177,471 | 8% | | Total assets | $17,584,199 | $16,449,178 | 7% | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | Total deposits | $14,106,922 | $13,146,529 | 7% | | Total liabilities | 15,802,552 | 14,878,909 | 6% | | Total stockholders' equity | 1,781,647 | 1,570,269 | 13% | | Total liabilities and stockholders' equity | $17,584,199 | $16,449,178 | 7% | Consolidated Statements of Income (Unaudited) (YTD) This section presents the consolidated statements of income for the three and nine months ended September 30, 2025, and 2024, detailing interest income, interest expense, net interest income, provision for credit losses, non-interest income, non-interest expense, and net income Consolidated Statements of Income (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total interest income | $251,308 | $247,979 | $739,039 | $702,229 | | Total interest expense | 117,860 | 132,858 | 350,351 | 378,738 | | Net interest income | 133,448 | 115,121 | 388,688 | 323,491 | | Provision for credit losses | 9,463 | 5,659 | 27,389 | 15,883 | | Total non-interest income | 2,833 | 8,549 | 11,531 | 26,253 | | Total non-interest expense | 47,996 | 45,632 | 138,307 | 134,250 | | Net income | 65,571 | 59,907 | 190,219 | 162,069 | | Diluted earnings per common share | $1.20 | $1.10 | $3.48 | $2.97 | Loans by Type (Unaudited) This table details the composition of the loan portfolio by type across the past five quarters, showing the distribution among commercial, real estate (construction, owner-occupied, 1-4 family, non-owner occupied), and consumer loans Loans by Type (in thousands) | Loan Type | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Commercial, financial and agricultural | $2,945,784 | $2,966,191 | $2,924,533 | $2,869,894 | $2,793,989 | | Real estate - construction | 1,532,285 | 1,735,405 | 1,599,410 | 1,489,306 | 1,439,648 | | Real estate - mortgage: Owner-occupied commercial | 2,680,055 | 2,557,711 | 2,543,819 | 2,547,143 | 2,441,687 | | Real estate - mortgage: 1-4 family mortgage | 1,625,296 | 1,561,461 | 1,494,189 | 1,444,623 | 1,409,981 | | Real estate - mortgage: Non-owner occupied commercial | 4,448,710 | 4,338,697 | 4,259,566 | 4,181,243 | 4,190,935 | | Consumer | 79,837 | 73,095 | 65,314 | 73,627 | 61,986 | | Total loans | $13,311,967 | $13,232,560 | $12,886,831 | $12,605,836 | $12,338,226 | Summary of Credit Loss Experience (Unaudited) This section provides a comprehensive summary of the company's credit loss experience over the past five quarters, including details on allowance for credit losses, charge-offs, recoveries, net charge-offs, and nonperforming assets, along with key ratios Summary of Credit Loss Experience (in thousands) | Metric | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Allowance for credit losses: Beginning balance | $169,959 | $165,034 | $164,458 | $160,755 | $158,092 | | Total charge offs | 9,350 | 7,502 | 6,092 | 4,670 | 3,427 | | Total recoveries | 288 | 1,018 | 198 | 1,975 | 655 | | Net charge-offs | 9,063 | 6,484 | 5,894 | 2,695 | 2,772 | | Provision for credit losses | 9,338 | 11,409 | 6,470 | 6,398 | 5,435 | | Ending balance (Allowance for credit losses) | $170,235 | $169,959 | $165,034 | $164,458 | $160,755 | | Nonperforming assets: Total | $168,238 | $72,479 | $74,660 | $44,997 | $41,891 | Credit Loss Ratios | Ratio | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Allowance for credit losses to total loans | 1.28% | 1.28% | 1.28% | 1.30% | 1.30% | | Net charge-offs to total average loans | 0.27% | 0.20% | 0.19% | 0.09% | 0.09% | | Nonperforming assets to total assets | 0.96% | 0.42% | 0.40% | 0.26% | 0.25% | | Allowance for credit losses to nonaccrual loans | 102.14% | 247.69% | 223.64% | 416.34% | 433.59% | Consolidated Statements of Income (Unaudited) (Quarterly) This table provides a detailed quarterly breakdown of the consolidated statements of income for the past five quarters, offering a granular view of revenue and expense trends over time Consolidated Statements of Income (in thousands, except per share data) | Metric | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Total interest income | $251,308 | $246,635 | $241,096 | $243,892 | $247,979 | | Total interest expense | 117,860 | 114,948 | 117,543 | 120,724 | 132,858 | | Net interest income | 133,448 | 131,687 | 123,553 | 123,168 | 115,121 | | Provision for credit losses | 9,463 | 11,296 | 6,630 | 5,704 | 5,659 | | Total non-interest income | 2,833 | 421 | 8,277 | 8,803 | 8,549 | | Total non-interest expense | 47,996 | 44,204 | 46,107 | 46,896 | 45,632 | | Net income | 65,571 | 61,424 | 63,224 | 65,173 | 59,907 | | Diluted earnings per common share | $1.20 | $1.12 | $1.16 | $1.19 | $1.10 | Average Balance Sheets and Net Interest Analysis (Unaudited) This section presents detailed average balance sheets and net interest analysis on a fully taxable-equivalent basis for the past five quarters, providing insights into average balances, yields/rates for interest-earning assets and interest-bearing liabilities, net interest spread, and net interest margin Average Balance Sheets and Net Interest Analysis (in thousands) | Metric | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Total interest earning assets | $17,129,689 | $17,076,353 | $17,189,693 | $16,526,418 | $16,122,366 | | Yield on total interest earning assets | 5.82% | 5.80% | 5.69% | 5.87% | 6.12% | | Total interest bearing liabilities | $13,187,618 | $13,182,267 | $13,348,133 | $12,642,803 | $12,396,020 | | Rate on total interest bearing liabilities | 3.55% | 3.50% | 3.57% | 3.80% | 4.26% | | Net interest spread | 2.27% | 2.30% | 2.12% | 2.07% | 1.86% | | Net interest margin | 3.09% | 3.10% | 2.92% | 2.96% | 2.84% | - Average loans include nonaccrual loans in all periods. Loan fees are included in interest income[38] - Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%[39]