ServisFirst Bancshares(SFBS) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2025, was $65,571 thousand, compared to $59,907 thousand for the same period in 2024, marking a 9.0% increase[11]. - Basic earnings per common share increased to $1.20 for the three months ended September 30, 2025, up from $1.10 in the same period of 2024, a growth of 9.1%[11]. - Comprehensive income for the three months ended September 30, 2025, was $77,584 thousand, compared to $74,793 thousand for the same period in 2024, an increase of 3.8%[13]. - Net income for the nine months ended September 30, 2025, was $190,219,000, an increase from $162,069,000 in 2024, representing a growth of approximately 17.5%[21]. - Basic earnings per common share for the nine months ended September 30, 2025, was $3.48, compared to $2.97 for the same period in 2024, reflecting a year-over-year increase of 17.2%[28]. Asset and Equity Growth - Total assets increased to $17,584,199 thousand as of September 30, 2025, compared to $17,351,643 thousand at December 31, 2024, reflecting a growth of 1.34%[8]. - Total stockholders' equity attributable to ServisFirst Bancshares, Inc. increased to $1,781,147 thousand as of September 30, 2025, from $1,616,272 thousand at December 31, 2024, a growth of 10.2%[8]. - The allowance for credit losses was $170,235 thousand as of September 30, 2025, compared to $164,458 thousand at December 31, 2024, reflecting an increase of 3.4%[8]. Deposits and Interest Income - Total deposits reached $14,106,922 thousand as of September 30, 2025, compared to $13,543,459 thousand at December 31, 2024, indicating an increase of 4.1%[8]. - Net interest income after provision for credit losses rose to $123,985 thousand for the three months ended September 30, 2025, up from $109,462 thousand in the same period of 2024, representing a 13.9% increase[11]. - Interest-bearing checking deposits rose to $10,061,648 thousand, up 5.8% from $9,511,161 thousand in the previous year[87]. Credit Losses and Provisions - Provision for credit losses increased to $9,463 thousand for the three months ended September 30, 2025, compared to $5,659 thousand in the same period of 2024, reflecting a rise of 67.5%[11]. - The allowance for credit losses (ACL) on loans increased to $170,235,000 as of September 30, 2025, up from $160,755,000 a year earlier, reflecting a year-over-year increase of approximately 2.95%[64]. - The total charge-offs for the nine months ended September 30, 2025, were $22,942,000, compared to $9,016,000 for the same period in 2024, reflecting an increase of 154.5%[66]. Loan Portfolio and Performance - As of September 30, 2025, total loans amounted to $13,311,967,000, an increase from $12,605,836,000 as of December 31, 2024, representing a growth of approximately 5.58%[45]. - The loan portfolio includes $2,945,784,000 in commercial, financial, and agricultural loans, up from $2,869,894,000, indicating a growth of 2.63%[45]. - Real estate mortgage loans totaled $8,754,061,000, which is an increase from $8,173,009,000, reflecting a growth of 7.10%[45]. Dividends and Stockholder Returns - Common dividends declared at $0.30 per share, totaling $16,365[16]. - Common dividends declared increased to $0.335 per share for the period ending July 1, 2025, totaling $18,297[16]. - The company paid $54,868,000 in dividends on common stock during the nine months ended September 30, 2025, compared to $49,046,000 in 2024, representing an increase of 11.5%[21]. Securities and Investments - The amortized cost of U.S. Treasury securities was $669,701,000 with a fair value of $672,566,000 as of September 30, 2025[29]. - The company reported a loss on the sale of securities available for sale amounting to $16,375,000 for the nine months ended September 30, 2025[21]. - The total debt securities available-for-sale decreased from $1.207 billion in December 31, 2024, to $1.186 billion in September 30, 2025[32]. Operational and Strategic Focus - The company is focused on maintaining its market position and exploring new strategies for growth[17]. - Future guidance indicates a stable outlook with no significant changes expected in key financial metrics[17]. - The company continues to invest in new product development and market expansion initiatives[17]. Lease and Compensation Expenses - The company had lease right-of-use assets totaling $23.0 million and lease liabilities of $24.1 million as of September 30, 2025[77]. - The stock incentive plan incurred a compensation cost of approximately $629,000 for the three months ended September 30, 2025, compared to $1.0 million in 2024[81]. - The total unrecognized compensation cost related to unvested time-based restricted stock as of September 30, 2025, was $5.6 million[84].