ServisFirst Bancshares, Inc. Announces Results for Fourth Quarter of 2025
BIRMINGHAM, Ala., Jan. 20, 2026 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended December 31, 2025.
Fourth Quarter 2025 Highlights:
- Diluted earnings per share of $5.06 for 2025, up 22% over 2024, and adjusted diluted earnings per share of $5.25 for 2025, up 26% over 2024.
- Diluted earnings per share of $1.58 for the quarter, up 33% from the fourth quarter of 2024, and up 32% from the third quarter of 2025 (or 22% from Adjusted diluted earnings per share in the third quarter of 2025*).
- Net interest margin of 3.38%, up 42 basis points from the fourth quarter of 2024 and 29 basis points from the third quarter of 2025.
- Efficiency ratio improved to 29%, from 36% in the fourth quarter of 2024 and from 35% in the third quarter of 2025 (or an adjusted efficiency ratio of 33% in the third quarter of 2025*).
- Cost of interest-bearing deposits is down 62 basis points from fourth quarter of 2024 at 3.01% and 40 basis points from third quarter of 2025.
- Loans grew by $384.9 million, or 12% annualized, during the quarter.
- Deposits grew by $675.6 million, or 5%, year-over-year.
- Cash dividend increased to $0.38 from $0.335 in the third quarter, a 13% increase.
- Entered the Texas market with an outstanding team of commercial bankers led by Chris Dvorachek.
- Book value per share of $33.87, up 14% from the fourth quarter of 2024 and 15% annualized, from the third quarter of 2025.
- Liquidity remains strong with $1.63 billion in cash and cash equivalent assets, 9% of our total assets, and no FHLB advances or brokered deposits.
- Consolidated common equity tier 1 capital to risk-weighted assets increased from 11.49% to 11.65% year-over-year.
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Return on average common stockholders’ equity improved to 18.9%, from 16.3% for the fourth quarter of 2024 and from 14.9% for the third quarter of 2025 (or an Adjusted return on average common stockholders’ equity of 16.2% for the third quarter of 2025*).
Tom Broughton, Chairman, President, and CEO, said, “We were pleased with the loan growth in the fourth quarter that was indicative of our improved outlook combined with the hard work of the best bankers in the Southeast.”
David Sparacio, CFO, said, “The Company has delivered excellent results for the fourth quarter. We continued our focus on net interest margin expansion, which was enhanced by a reduction in benchmark interest rates, and we remain disciplined on expense controls. Continuing our focus as we grow our franchise and gain market share will allow us to deliver solid financial performance in 2026.”
* This press release includes certain non-GAAP financial measures: adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted net interest margin, adjusted return on average assets, adjusted return on average common stockholders’ equity, adjusted efficiency ratio, tangible common stockholders' equity, total tangible assets, tangible book value per share, adjusted cost of interest-bearing deposits, and tangible common equity to total tangible assets. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”
| FINANCIAL SUMMARY (UNAUDITED) | ||||||||||||||||||
| (in Thousands except share and per share amounts) | Period Ending December 31, 2025 | Period Ending September 30, 2025 | % Change From Period Ending September 30, 2025 to Period Ending December 31, 2025 | Period Ending December 31, 2024 | % Change From Period Ending December 31, 2024 to Period Ending December 31, 2025 | |||||||||||||
| QUARTERLY OPERATING RESULTS | ||||||||||||||||||
| Net Income | $ | 86,384 | $ | 65,571 | 31.7 | % | $ | 65,173 | 32.5 | % | ||||||||
| Net Income Available to Common Stockholders | $ | 86,353 | $ | 65,571 | 31.7 | % | $ | 65,142 | 32.6 | % | ||||||||
| Diluted Earnings Per Share | $ | 1.58 | $ | 1.20 | 31.7 | % | $ | 1.19 | 32.8 | % | ||||||||
| Return on Average Assets | 1.91 | % | 1.47 | % | 1.52 | % | ||||||||||||
| Return on Average Common Stockholders' Equity | 18.93 | % | 14.88 | % | 16.29 | % | ||||||||||||
| Average Diluted Shares Outstanding | 54,675,802 | 54,667,955 | 54,649,808 | |||||||||||||||
| Adjusted Net Income, net of tax* | $ | 86,384 | $ | 71,422 | 20.9 | % | $ | 65,173 | 32.5 | % | ||||||||
| Adjusted Net Income Available to Common | ||||||||||||||||||
| Stockholders, net of tax* | $ | 86,353 | $ | 71,422 | 20.9 | % | $ | 65,142 | 32.6 | % | ||||||||
| Adjusted Diluted Earnings Per Share, net of tax* | $ | 1.58 | $ | 1.30 | 21.5 | % | $ | 1.19 | 32.8 | % | ||||||||
| Adjusted Return on Average Assets, net of tax* | 1.91 | % | 1.60 | % | 1.52 | % | ||||||||||||
| Adjusted Return on Average Common | ||||||||||||||||||
| Stockholders' Equity, net of tax* | 18.93 | % | 16.21 | % | 16.29 | % | ||||||||||||
| YEAR-TO-DATE OPERATING RESULTS | ||||||||||||||||||
| Net Income | $ | 276,603 | $ | 227,242 | 21.7 | % | ||||||||||||
| Net Income Available to Common Stockholders | $ | 276,541 | $ | 227,180 | 21.7 | % | ||||||||||||
| Diluted Earnings Per Share | $ | 5.06 | $ | 4.16 | 21.6 | % | ||||||||||||
| Return on Average Assets | 1.56 | % | 1.39 | % | ||||||||||||||
| Return on Average Common Stockholders' Equity | 16.05 | % | 14.98 | % | ||||||||||||||
| Average Diluted Shares Outstanding | 54,666,274 | 54,624,234 | ||||||||||||||||
| Adjusted Net Income, net of tax* | $ | 287,163 | $ | 228,589 | 25.6 | % | ||||||||||||
| Adjusted Net Income Available to Common | ||||||||||||||||||
| Stockholders, net of tax* | $ | 287,101 | $ | 228,527 | 25.6 | % | ||||||||||||
| Adjusted Diluted Earnings Per Share, net of tax* | $ | 5.25 | $ | 4.18 | 25.6 | % | ||||||||||||
| Adjusted Return on Average Assets, net of tax* | 1.62 | % | 1.40 | % | ||||||||||||||
| Adjusted Return on Average Common | ||||||||||||||||||
| Stockholders' Equity, net of tax* | 16.66 | % | 15.07 | % | ||||||||||||||
| BALANCE SHEET | ||||||||||||||||||
| Total Assets | $ | 17,727,190 | $ | 17,584,199 | 0.8 | % | $ | 17,351,643 | 2.2 | % | ||||||||
| Loans | 13,696,912 | 13,311,967 | 2.9 | % | 12,605,836 | 8.7 | % | |||||||||||
| Non-interest-bearing Demand Deposits | 2,684,272 | 2,598,895 | 3.3 | % | 2,619,687 | 2.5 | % | |||||||||||
| Total Deposits | 14,219,034 | 14,106,922 | 0.8 | % | 13,543,459 | 5.0 | % | |||||||||||
| Stockholders' Equity | 1,850,347 | 1,781,647 | 3.9 | % | 1,616,772 | 14.4 | % | |||||||||||
DETAILED FINANCIALS
ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $86.4 million for the quarter ended December 31, 2025, compared to net income and net income available to common stockholders of $65.6 million for the third quarter of 2025 and net income of $65.2 million and net income available to common stockholders of $65.1 million for the fourth quarter of 2024. Basic and diluted earnings per common share were both $1.58 in the fourth quarter of 2025, compared to $1.20 for both in the third quarter of 2025 and $1.19 for both in the fourth quarter of 2024.
Annualized return on average assets was 1.91% and annualized return on average common stockholders’ equity was 18.93% for the fourth quarter of 2025, compared to 1.52% and 16.29%, respectively, for the fourth quarter of 2024.
Net interest income was $146.5 million for the fourth quarter of 2025, compared to $133.4 million for the third quarter of 2025 and $123.2 million for the fourth quarter of 2024. The net interest margin in the fourth quarter of 2025 was 3.38% compared to 3.09% in the third quarter of 2025 and 2.96% in the fourth quarter of 2024. Loan yields were 6.29% during the fourth quarter of 2025 compared to 6.34% during the third quarter of 2025 and 6.43% during the fourth quarter of 2024. Investment yields were 3.77% during the fourth quarter of 2025 compared to 3.60% during the third quarter of 2025, and 3.49% during the fourth quarter of 2024. Average interest-bearing deposit rates were 3.01% during the fourth quarter of 2025, compared to 3.41% during the third quarter of 2025 and 3.63% during the fourth quarter of 2024. Average federal funds purchased rates were 4.01% during the fourth quarter of 2025, compared to 4.46% during the third quarter of 2025 and 4.80% during the fourth quarter of 2024. During the fourth quarter of 2025, the Company redeemed its $30 million 4.5% Subordinated Notes due November 2027.
Average loans for the fourth quarter of 2025 were $13.50 billion, an increase of $299.2 million, or 9.0% annualized, from average loans of $13.21 billion for the third quarter of 2025, and an increase of $1.08 billion, or 8.7%, from average loans of $12.43 billion for the fourth quarter of 2024. Ending total loans for the fourth quarter of 2025 were $13.70 billion, an increase of $384.9 million, or 11.6% annualized, from $13.31 billion for the third quarter of 2025, and an increase of $1.09 billion, or 8.7%, from $12.61 billion for the fourth quarter of 2024.
Average total deposits for the fourth quarter of 2025 were $14.21 billion, an increase of $77.4 million, or 2.2% annualized, from average total deposits of $14.13 billion for the third quarter of 2025, and an increase of $727.7 million, or 5.4%, from average total deposits of $13.48 billion for the fourth quarter of 2024. Ending total deposits for the fourth quarter of 2025 were $14.22 billion, an increase of $112.1 million, or 3.2% annualized, from $14.11 billion for the third quarter of 2025, and an increase of $675.6 million, or 5.0%, from $13.54 billion for the fourth quarter of 2024.
Non-performing assets to total assets were 0.97% for the fourth quarter of 2025, compared to 0.96% for the third quarter of 2025 and 0.26% for the fourth quarter of 2024. The year-over-year increase was attributable to a large, real-estate secured relationship. Annualized net charge-offs to average loans were 0.20% for the fourth quarter of 2025, compared to 0.27% for the third quarter of 2025 and 0.09% for the fourth quarter of 2024. During the fourth quarter of 2025, we recorded $5.0 million in charge-offs related to a long-standing impaired relationship. In comparison, the third quarter of 2025 included $3.0 million in charge-offs on loans that had not been previously impaired. The allowance for credit losses as a percentage of total loans at December 31, 2025, September 30, 2025, and December 31, 2024, was 1.25%, 1.28%, and 1.30%, respectively. We recorded a $8.1 million provision for credit losses in the fourth quarter of 2025 compared to $9.3 million in the third quarter of 2025, and $6.4 million in the fourth quarter of 2024.
Non-interest income increased $6.9 million, or 78.2%, to $15.7 million for the fourth quarter of 2025 from $8.8 million in the fourth quarter of 2024, and increased $12.9 million, or 453.9%, on a linked quarter basis. Service charges on deposit accounts increased $689,000, or 26.0%, to $3.3 million for the fourth quarter of 2025 from $2.7 million in the fourth quarter of 2024, and increased $23,000, or 0.7%, on a linked quarter basis. We increased our service charge rates on many of our checking account products in July of 2025. Mortgage banking revenue increased $151,000, or 10.0%, to $1.7 million for the fourth quarter of 2025 from $1.5 million in the fourth quarter of 2024, and decreased $200,000, or 10.7%, on a linked quarter basis. Net credit card income decreased $32,000, or 1.7%, to $1.8 million for the fourth quarter of 2025 from $1.9 million in the fourth quarter of 2024, and decreased $570,000, or 23.7%, on a linked quarter basis. Bank-owned life insurance (“BOLI”) income increased $6.0 million, or 282.4%, to $8.1 million for the fourth quarter of 2025 from $2.1 million in the fourth quarter of 2024, and increased $5.7 million, or 238.8%, on a linked quarter basis. During the fourth quarter of 2025, we recognized $4.3 million of income attributed to a BOLI policy. Other operating income increased $62,000, or 9.7%, to $704,000 for the fourth quarter of 2025 from $642,000 in the fourth quarter of 2024, and increased $49,000, or 7.5%, on a linked quarter basis.
Non-interest expense decreased $213,000, or 0.5%, to $46.7 million for the fourth quarter of 2025 from $46.9 million in the fourth quarter of 2024, and decreased $1.3 million, or 2.7%, on a linked quarter basis. Salary and benefit expense decreased $224,000, or 0.9%, to $23.8 million for the fourth quarter of 2025 from $24.1 million in the fourth quarter of 2024, and decreased $1.7 million, or 6.6%, on a linked quarter basis. The number of full-time equivalent (“FTE”) employees increased by 36, or 5.7%, to 666 at December 31, 2025 compared to 630 at December 31, 2024, and increased by 16, or 2.5%, from the end of the third quarter of 2025. Equipment and occupancy expense increased $137,000, or 3.8%, to $3.7 million for the fourth quarter of 2025 from $3.6 million in the fourth quarter of 2024, and increased $122,000, or 3.4%, on a linked quarter basis. Third party processing and other services expense decreased $736,000, or 8.6%, to $7.8 million for the fourth quarter of 2025 from $8.5 million in the fourth quarter of 2024, and decreased $316,000, or 3.9%, on a linked quarter basis. Professional services expense decreased $500,000, or 25.2%, to $1.5 million for the fourth quarter of 2025 from $2.0 million in the fourth quarter of 2024, and decreased $376,000, or 20.2%, on a linked quarter basis. Federal Deposit Insurance Corporation (“FDIC”) and other regulatory assessments increased $416,000, or 18.7%, to $2.6 million for the fourth quarter of 2025 from $2.2 million in the fourth quarter of 2024, and decreased $101,000, or 3.7%, on a linked quarter basis. Other operating expenses increased $739,000, or 11.4%, to $7.2 million for the fourth quarter of 2025 from $6.5 million in the fourth quarter of 2024, and increased $1.1 million, or 18.3%, on a linked quarter basis. The efficiency ratio was 28.78% during the fourth quarter of 2025 compared to 35.54% during the fourth quarter of 2024 and 35.22% during the third quarter of 2025.
Income tax expense increased $7.0 million, or 49.5%, to $21.2 million in the fourth quarter of 2025, compared to $14.2 million in the fourth quarter of 2024, and increased $8.0 million, or 60.2%, on a linked quarter basis. Our effective tax rate was 19.72% for the fourth quarter of 2025 compared to 16.81% for the third quarter of 2025 and to 17.89% for the fourth quarter of 2024. We invested in a renewable energy tax credit during the third quarter of 2025 for which we received tax credits and other benefits of approximately $4.6 million, most of which was recognized in the third quarter. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the fourth quarters of 2025 and 2024 of $13,000 and $624,000, respectively.
About ServisFirst Bancshares, Inc.
ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, Texas and Virginia. We also operate a loan production office in Florida. Through the Bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions.
ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbancshares.com.
Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). The words “believe,” “expect,” “anticipate,” “project,” “plan,” “intend,” “will,” “could,” “would,” “might” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. The Company cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company’s senior management and involve risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including, but not limited to: general economic conditions, especially in the credit markets and in the Southeast; the impact of tariffs and trade wars on general economic conditions, the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes as a result of our reclassification as a large financial institution by the FDIC; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornadoes, in our geographic markets; and increased competition from both banks and nonbank financial institutions. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward Looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. The Company assumes no obligation to update or revise any forward-looking statements that are made from time to time.
More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling (205) 949-0302.
| SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||
| (In thousands except share and per share data) | |||||||||||||||||||
| 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | |||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||
| Interest income | $ | 251,388 | $ | 251,308 | $ | 246,635 | $ | 241,096 | $ | 243,892 | |||||||||
| Interest expense | 104,867 | 117,860 | 114,948 | 117,543 | 120,724 | ||||||||||||||
| Net interest income | 146,521 | 133,448 | 131,687 | 123,553 | 123,168 | ||||||||||||||
| Provision for credit losses | 7,922 | 9,463 | 11,296 | 6,630 | 5,704 | ||||||||||||||
| Net interest income after provision for credit losses | 138,599 | 123,985 | 120,391 | 116,923 | 117,464 | ||||||||||||||
| Non-interest income | 15,691 | 2,833 | 421 | 8,277 | 8,803 | ||||||||||||||
| Non-interest expense | 46,683 | 47,996 | 44,204 | 46,107 | 46,896 | ||||||||||||||
| Income before income tax | 107,607 | 78,822 | 76,608 | 79,093 | 79,371 | ||||||||||||||
| Provision for income tax | 21,223 | 13,251 | 15,184 | 15,869 | 14,198 | ||||||||||||||
| Net income | 86,384 | 65,571 | 61,424 | 63,224 | 65,173 | ||||||||||||||
| Preferred stock dividends | 31 | - | 31 | - | 31 | ||||||||||||||
| Net income available to common stockholders | $ | 86,353 | $ | 65,571 | $ | 61,393 | $ | 63,224 | $ | 65,142 | |||||||||
| Earnings per share - basic | $ | 1.58 | $ | 1.20 | $ | 1.12 | $ | 1.16 | $ | 1.19 | |||||||||
| Earnings per share - diluted | $ | 1.58 | $ | 1.20 | $ | 1.12 | $ | 1.16 | $ | 1.19 | |||||||||
| Average diluted shares outstanding | 54,675,802 | 54,667,955 | 54,664,480 | 54,656,630 | 54,649,808 | ||||||||||||||
| CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||||||
| Total assets | $ | 17,727,190 | $ | 17,584,199 | $ | 17,378,628 | $ | 18,636,766 | $ | 17,351,643 | |||||||||
| Loans | 13,696,912 | 13,311,967 | 13,232,560 | 12,886,831 | 12,605,836 | ||||||||||||||
| Debt securities | 1,728,901 | 1,849,739 | 1,914,503 | 1,905,550 | 1,876,253 | ||||||||||||||
| Non-interest-bearing demand deposits | 2,684,272 | 2,598,895 | 2,632,058 | 2,647,577 | 2,619,687 | ||||||||||||||
| Total deposits | 14,219,034 | 14,106,922 | 13,862,319 | 14,429,061 | 13,543,459 | ||||||||||||||
| Borrowings | 34,750 | 64,750 | 64,747 | 64,745 | 64,743 | ||||||||||||||
| Stockholders' equity | 1,850,347 | 1,781,647 | 1,721,783 | 1,668,900 | 1,616,772 | ||||||||||||||
| Shares outstanding | 54,624,955 | 54,621,441 | 54,618,545 | 54,601,217 | 54,569,427 | ||||||||||||||
| Book value per share | $ | 33.87 | $ | 32.62 | $ | 31.52 | $ | 30.57 | $ | 29.63 | |||||||||
| Tangible book value per share (1) | $ | 33.62 | $ | 32.37 | $ | 31.27 | $ | 30.32 | $ | 29.38 | |||||||||
| SELECTED FINANCIAL RATIOS (Annualized) | |||||||||||||||||||
| Net interest margin | 3.38 | % | 3.09 | % | 3.10 | % | 2.92 | % | 2.96 | % | |||||||||
| Return on average assets | 1.91 | % | 1.47 | % | 1.40 | % | 1.45 | % | 1.52 | % | |||||||||
| Return on average common stockholders' equity | 18.93 | % | 14.88 | % | 14.56 | % | 15.63 | % | 16.29 | % | |||||||||
| Efficiency ratio | 28.78 | % | 35.22 | % | 33.46 | % | 34.97 | % | 35.54 | % | |||||||||
| Non-interest expense to average earning assets | 1.08 | % | 1.11 | % | 1.04 | % | 1.09 | % | 1.13 | % | |||||||||
| CAPITAL RATIOS (2) | |||||||||||||||||||
| Common equity tier 1 capital to risk-weighted assets | 11.65 | % | 11.49 | % | 11.38 | % | 11.48 | % | 11.42 | % | |||||||||
| Tier 1 capital to risk-weighted assets | 11.66 | % | 11.50 | % | 11.38 | % | 11.48 | % | 11.42 | % | |||||||||
| Total capital to risk-weighted assets | 12.93 | % | 12.91 | % | 12.81 | % | 12.93 | % | 12.90 | % | |||||||||
| Tier 1 capital to average assets | 10.26 | % | 10.01 | % | 9.78 | % | 9.48 | % | 9.59 | % | |||||||||
| Tangible common equity to total tangible assets (1) | 10.37 | % | 10.06 | % | 9.84 | % | 8.89 | % | 9.25 | % | |||||||||
| (1) This press release contains certain non-GAAP financial measures. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.” | |||||||||||||||||||
| (2) Regulatory capital ratios for most recent period are preliminary. | |||||||||||||||||||
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including adjusted net income, adjusted net income available to common stockholders, 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, and adjusted efficiency ratio. We recorded a one-time expense of $7.2 million in the fourth quarter of 2023 associated with the FDIC’s special assessment to recapitalize the Deposit Insurance Fund following bank failures in the spring of 2023. This assessment was updated in the first quarter of 2024 resulting in additional expense of $1.8 million. We recognized an $8.6 million loss on sale of available-for-sale debt securities in non-interest income during the second quarter of 2025 due to restructuring the portfolio. We reversed a $2.3 million legal reserve from interest expense during the second quarter of 2025. We recognized a $7.8 million loss on sale of available-for-sale debt securities in non-interest income during the third quarter of 2025 due to continued restructuring of the portfolio. These adjustments to our results are unusual, or infrequent, in nature and are not considered to be part of our non-interest expense, non-interest income and interest expense run rates, respectively. Each of adjusted net income, adjusted net income available to common stockholders, 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 and adjusted efficiency ratio excludes the impact of these items, net of tax, and are all considered non-GAAP financial measures. This press release also contains the non-GAAP financial measures of tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill associated with our acquisition of Metro Bancshares, Inc. in January 2015.
We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data.
| At December 31, 2025 |
At September 30, 2025 |
At June 30, 2025 |
At March 31, 2025 |
At December 31, 2024 |
||||||||||||||||||||
| Book value per share - GAAP | $ | 33.87 | $ | 32.62 | $ | 31.52 | $ | 30.57 | $ | 29.63 | ||||||||||||||
| Total common stockholders' equity - GAAP | 1,850,347 | 1,781,647 | 1,721,783 | 1,668,900 | 1,616,772 | |||||||||||||||||||
| Adjustment for Goodwill | (13,615 | ) | (13,615 | ) | (13,615 | ) | (13,615 | ) | (13,615 | ) | ||||||||||||||
| Tangible common stockholders' equity - non-GAAP | $ | 1,836,732 | $ | 1,768,032 | $ | 1,708,168 | $ | 1,655,285 | $ | 1,603,157 | ||||||||||||||
| Tangible book value per share - non-GAAP | $ | 33.62 | $ | 32.37 | $ | 31.27 | $ | 30.32 | $ | 29.38 | ||||||||||||||
| Stockholders' equity to total assets - GAAP | 10.44 | % | 10.13 | % | 9.91 | % | 8.95 | % | 9.32 | % | ||||||||||||||
| Total assets - GAAP | $ | 17,727,190 | $ | 17,584,199 | $ | 17,378,628 | $ | 18,636,766 | $ | 17,351,643 | ||||||||||||||
| Adjustment for Goodwill | (13,615 | ) | (13,615 | ) | (13,615 | ) | (13,615 | ) | (13,615 | ) | ||||||||||||||
| Total tangible assets - non-GAAP | $ | 17,713,575 | $ | 17,570,584 | $ | 17,365,013 | $ | 18,623,151 | $ | 17,338,028 | ||||||||||||||
| Tangible common equity to total tangible assets - non-GAAP | 10.37 | % | 10.06 | % | 9.84 | % | 8.89 | % | 9.25 | % | ||||||||||||||
| Three Months Ended December 31, 2025 | Three Months Ended September 30, 2025 | Three Months Ended December 31, 2024 | Year Ended December 31, 2025 | Year Ended December 31, 2024 | ||||||||||||||||||
| Net income - GAAP | $ | 86,384 | $ | 65,571 | $ | 65,173 | $ | 276,603 | $ | 227,242 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| FDIC special assessment | - | - | - | - | 1,799 | |||||||||||||||||
| Legal matter accrual reversal | - | - | - | (2,276 | ) | - | ||||||||||||||||
| Loss on marketable securities | - | 7,812 | - | 16,375 | - | |||||||||||||||||
| Tax on adjustments | - | (1,961 | ) | - | (3,539 | ) | (452 | ) | ||||||||||||||
| Adjusted net income - non-GAAP | $ | 86,384 | $ | 71,422 | $ | 65,173 | $ | 287,163 | $ | 228,589 | ||||||||||||
| Net income available to common stockholders - GAAP | $ | 86,353 | $ | 65,571 | $ | 65,142 | $ | 276,541 | $ | 227,180 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| FDIC special assessment | - | - | - | - | 1,799 | |||||||||||||||||
| Legal matter accrual reversal | - | - | - | (2,276 | ) | - | ||||||||||||||||
| Loss on marketable securities | - | 7,812 | - | 16,375 | - | |||||||||||||||||
| Tax on adjustments | - | (1,961 | ) | - | (3,539 | ) | (452 | ) | ||||||||||||||
| Adjusted net income available to common stockholders - non-GAAP | $ | 86,353 | $ | 71,422 | $ | 65,142 | $ | 287,101 | $ | 228,527 | ||||||||||||
| Diluted earnings per share - GAAP | $ | 1.58 | $ | 1.20 | $ | 1.19 | $ | 5.06 | $ | 4.16 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| FDIC special assessment | - | - | - | - | 0.03 | |||||||||||||||||
| Legal matter accrual reversal | - | - | - | (0.04 | ) | - | ||||||||||||||||
| Loss on marketable securities | - | 0.14 | - | 0.30 | - | |||||||||||||||||
| Tax on adjustments | - | (0.04 | ) | - | (0.07 | ) | (0.01 | ) | ||||||||||||||
| Adjusted diluted earnings per share - non-GAAP | $ | 1.58 | $ | 1.30 | $ | 1.19 | $ | 5.25 | $ | 4.18 | ||||||||||||
| Net interest income, on a fully taxable-equivalent basis | $ | 146,583 | $ | 133,500 | $ | 123,145 | $ | 535,479 | $ | 446,758 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Legal matter accrual reversal | - | - | - | (2,276 | ) | - | ||||||||||||||||
| Tax on adjustments | - | - | - | 571 | - | |||||||||||||||||
| Adjusted net interest income, on a fully taxable-equivalent basis | $ | 146,583 | $ | 133,500 | $ | 123,145 | $ | 533,774 | $ | 446,758 | ||||||||||||
| Net interest margin-GAAP | 3.38 | % | 3.09 | % | 2.96 | % | 3.12 | % | 2.82 | % | ||||||||||||
| Average earning assets | 17,216,400 | 17,129,689 | 16,526,418 | 17,153,044 | 15,849,072 | |||||||||||||||||
| Adjusted net interest margin-non-GAAP | 3.38 | % | 3.09 | % | 2.96 | % | 3.11 | % | 2.82 | % | ||||||||||||
| Cost on interest bearing deposits-GAAP | 3.01 | % | 3.41 | % | 3.63 | % | 3.13 | % | 3.97 | % | ||||||||||||
| Interest expense deposits | 86,920 | 98,735 | 98,702 | 373,886 | 420,650 | |||||||||||||||||
| Legal matter accrual reversal | - | - | - | 2,276 | - | |||||||||||||||||
| Adjusted interest expense | $ | 86,920 | $ | 98,735 | $ | 98,702 | $ | 376,162 | $ | 420,650 | ||||||||||||
| Average total interest bearing deposits | $ | 11,442,402 | $ | 11,482,480 | $ | 10,810,316 | $ | 11,361,449 | $ | 10,593,993 | ||||||||||||
| Adjusted cost on interest bearing deposits-non-GAAP | 3.01 | % | 3.41 | % | 3.63 | % | 3.31 | % | 3.97 | % | ||||||||||||
| Return on average assets - GAAP | 1.91 | % | 1.47 | % | 1.52 | % | 1.56 | % | 1.39 | % | ||||||||||||
| Net income available to common stockholders - GAAP | $ | 86,353 | $ | 65,571 | $ | 65,142 | $ | 276,541 | $ | 227,180 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| FDIC special assessment | - | - | - | - | 1,799 | |||||||||||||||||
| Legal matter accrual reversal | - | - | - | (2,276 | ) | - | ||||||||||||||||
| Loss on marketable securities | - | 7,812 | - | 16,375 | - | |||||||||||||||||
| Tax on adjustments | - | (1,961 | ) | - | (3,539 | ) | (452 | ) | ||||||||||||||
| Adjusted net income available to common stockholders - non-GAAP | $ | 86,353 | $ | 71,422 | $ | 65,142 | $ | 287,101 | $ | 228,527 | ||||||||||||
| Average assets - GAAP | $ | 17,936,179 | $ | 17,709,359 | $ | 17,037,383 | $ | 17,746,068 | $ | 16,333,383 | ||||||||||||
| Adjusted return on average assets - non-GAAP | 1.91 | % | 1.60 | % | 1.52 | % | 1.62 | % | 1.40 | % | ||||||||||||
| Return on average common stockholders' equity - GAAP | 18.93 | % | 14.88 | % | 16.29 | % | 16.05 | % | 14.98 | % | ||||||||||||
| Net income available to common stockholders - GAAP | $ | 86,353 | $ | 65,571 | $ | 65,142 | $ | 276,541 | $ | 227,180 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| FDIC special assessment | - | - | - | - | 1,799 | |||||||||||||||||
| Legal matter accrual reversal | - | - | - | (2,276 | ) | - | ||||||||||||||||
| Loss on marketable securities | - | 7,812 | - | 16,375 | - | |||||||||||||||||
| Tax on adjustments | - | (1,961 | ) | - | (3,539 | ) | (452 | ) | ||||||||||||||
| Adjusted net income available to common stockholders - non-GAAP | $ | 86,353 | $ | 71,422 | $ | 65,142 | $ | 287,101 | $ | 228,527 | ||||||||||||
| Average common stockholders' equity - GAAP | $ | 1,809,996 | $ | 1,747,825 | $ | 1,591,248 | $ | 1,722,929 | $ | 1,516,855 | ||||||||||||
| Adjusted return on average common stockholders' equity non-GAAP | 18.93 | % | 16.21 | % | 16.29 | % | 16.66 | % | 15.07 | % | ||||||||||||
| Efficiency ratio | 28.78 | % | 35.22 | % | 35.54 | % | 32.89 | % | 37.60 | % | ||||||||||||
| Net interest income - GAAP | $ | 146,521 | $ | 133,448 | $ | 123,168 | $ | 535,209 | $ | 446,659 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Legal matter accrual reversal | - | - | - | (2,276 | ) | - | ||||||||||||||||
| Adjusted net interest income - non-GAAP | $ | 146,521 | $ | 133,448 | $ | 123,168 | $ | 532,933 | $ | 446,659 | ||||||||||||
| Total non-interest income - GAAP | 15,691 | 2,833 | 8,803 | 27,222 | 35,056 | |||||||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Loss on marketable securities | - | 7,812 | - | 16,375 | - | |||||||||||||||||
| Adjusted non-interest income - non-GAAP | $ | 15,691 | $ | 10,645 | $ | 8,803 | $ | 43,597 | $ | 35,056 | ||||||||||||
| Adjusted net interest income and non-interest income - non-GAAP | 162,212 | 144,093 | 131,971 | 576,530 | 481,715 | |||||||||||||||||
| Non-interest expense - GAAP | $ | 46,683 | $ | 47,996 | $ | 46,896 | $ | 184,990 | $ | 181,146 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| FDIC special assessment | - | - | - | - | 1,799 | |||||||||||||||||
| Adjusted non-interest expense - non-GAAP | $ | 46,683 | $ | 47,996 | $ | 46,896 | $ | 184,990 | $ | 179,347 | ||||||||||||
| Adjusted efficiency ratio - non-GAAP | 28.78 | % | 33.31 | % | 35.54 | % | 32.09 | % | 37.23 | % | ||||||||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| December 31, 2025 | December 31, 2024 | % Change | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 95,127 | $ | 116,394 | (18 | ) | % | |||||
| Interest-bearing balances due from depository institutions | 1,026,607 | 2,259,195 | (55 | ) | % | |||||||
| Federal funds sold and securities purchased with agreement to resell | 504,962 | 1,045 | 48,222 | % | ||||||||
| Cash and cash equivalents | 1,626,696 | 2,376,634 | (32 | ) | % | |||||||
| Available for sale debt securities, at fair value | 1,068,825 | 1,161,400 | (8 | ) | % | |||||||
| Held to maturity debt securities (fair value of $622,825 and $673,023, respectively) | 660,076 | 714,853 | (8 | ) | % | |||||||
| Restricted equity securities | 12,203 | 11,300 | 8 | % | ||||||||
| Mortgage loans held for sale | 11,744 | 9,211 | 27 | % | ||||||||
| Loans | 13,696,912 | 12,605,836 | 9 | % | ||||||||
| Less allowance for credit losses | (171,683 | ) | (164,458 | ) | 4 | % | ||||||
| Loans, net | 13,525,229 | 12,441,378 | 9 | % | ||||||||
| Premises and equipment, net | 60,396 | 59,185 | 2 | % | ||||||||
| Goodwill | 13,615 | 13,615 | - | % | ||||||||
| Other assets | 748,406 | 564,067 | 33 | % | ||||||||
| Total assets | $ | 17,727,190 | $ | 17,351,643 | 2 | % | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest-bearing demand | $ | 2,684,272 | $ | 2,619,687 | 2 | % | ||||||
| Interest-bearing | 11,534,762 | 10,923,772 | 6 | % | ||||||||
| Total deposits | 14,219,034 | 13,543,459 | 5 | % | ||||||||
| Federal funds purchased | 1,471,628 | 1,993,728 | (26 | ) | % | |||||||
| Other borrowings | 34,750 | 64,743 | (46 | ) | % | |||||||
| Other liabilities | 151,431 | 132,941 | 14 | % | ||||||||
| Total liabilities | 15,876,843 | 15,734,871 | 1 | % | ||||||||
| Stockholders' equity: | ||||||||||||
| Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at | ||||||||||||
| December 31, 2025 and December 31, 2024 | - | - | - | % | ||||||||
| Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,624,955 shares | ||||||||||||
| issued and outstanding at December 31, 2025, and 54,551,543 | ||||||||||||
| shares issued and outstanding at December 31, 2024 | 54 | 54 | - | % | ||||||||
| Additional paid-in capital | 237,839 | 235,781 | 1 | % | ||||||||
| Retained earnings | 1,613,746 | 1,412,616 | 14 | % | ||||||||
| Accumulated other comprehensive loss | (1,792 | ) | (32,179 | ) | (94 | ) | % | |||||
| Total stockholders' equity attributable to ServisFirst Bancshares, Inc. | 1,849,847 | 1,616,272 | 14 | % | ||||||||
| Noncontrolling interest | 500 | 500 | - | % | ||||||||
| Total stockholders' equity | 1,850,347 | 1,616,772 | 14 | % | ||||||||
| Total liabilities and stockholders' equity | $ | 17,727,190 | $ | 17,351,643 | 2 | % | ||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||
| (In thousands except per share data) | ||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Interest income: | ||||||||||||||
| Interest and fees on loans | $ | 214,252 | $ | 200,875 | $ | 828,696 | $ | 788,105 | ||||||
| Taxable securities | 17,199 | 16,905 | 67,122 | 66,535 | ||||||||||
| Nontaxable securities | 5 | 6 | 21 | 31 | ||||||||||
| Federal funds sold and securities purchased with agreement to resell | 5,671 | 18 | 12,007 | 1,128 | ||||||||||
| Other interest and dividends | 14,261 | 26,088 | 82,581 | 90,322 | ||||||||||
| Total interest income | 251,388 | 243,892 | 990,427 | 946,121 | ||||||||||
| Interest expense: | ||||||||||||||
| Deposits | 86,920 | 98,702 | 373,888 | 420,650 | ||||||||||
| Borrowed funds | 17,947 | 22,022 | 81,330 | 78,812 | ||||||||||
| Total interest expense | 104,867 | 120,724 | 455,218 | 499,462 | ||||||||||
| Net interest income | 146,521 | 123,168 | 535,209 | 446,659 | ||||||||||
| Provision for credit losses | 7,922 | 5,704 | 35,311 | 21,587 | ||||||||||
| Net interest income after provision for credit losses | 138,599 | 117,464 | 499,898 | 425,072 | ||||||||||
| Non-interest income: | ||||||||||||||
| Service charges on deposit accounts | 3,339 | 2,650 | 11,884 | 9,434 | ||||||||||
| Mortgage banking | 1,664 | 1,513 | 5,464 | 4,922 | ||||||||||
| Credit card income | 1,835 | 1,867 | 8,327 | 8,280 | ||||||||||
| Securities losses | - | - | (16,375 | ) | - | |||||||||
| Bank-owned life insurance income | 8,149 | 2,131 | 14,817 | 9,533 | ||||||||||
| Other operating income | 704 | 642 | 3,105 | 2,887 | ||||||||||
| Total non-interest income | 15,691 | 8,803 | 27,222 | 35,056 | ||||||||||
| Non-interest expense: | ||||||||||||||
| Salaries and employee benefits | 23,838 | 24,062 | 94,815 | 96,318 | ||||||||||
| Equipment and occupancy expense | 3,737 | 3,600 | 14,597 | 14,519 | ||||||||||
| Third party processing and other services | 7,779 | 8,515 | 31,617 | 31,181 | ||||||||||
| Professional services | 1,481 | 1,981 | 7,175 | 6,901 | ||||||||||
| FDIC and other regulatory assessments | 2,641 | 2,225 | 10,990 | 10,687 | ||||||||||
| Other real estate owned expense | 13 | 58 | 155 | 199 | ||||||||||
| Other operating expense | 7,194 | 6,455 | 25,641 | 21,341 | ||||||||||
| Total non-interest expense | 46,683 | 46,896 | 184,990 | 181,146 | ||||||||||
| Income before income tax | 107,607 | 79,371 | 342,130 | 278,982 | ||||||||||
| Provision for income tax | 21,223 | 14,198 | 65,527 | 51,740 | ||||||||||
| Net income | 86,384 | 65,173 | 276,603 | 227,242 | ||||||||||
| Dividends on preferred stock | 31 | 31 | 62 | 62 | ||||||||||
| Net income available to common stockholders | $ | 86,353 | $ | 65,142 | $ | 276,541 | $ | 227,180 | ||||||
| Basic earnings per common share | $ | 1.58 | $ | 1.19 | $ | 5.06 | $ | 4.17 | ||||||
| Diluted earnings per common share | $ | 1.58 | $ | 1.19 | $ | 5.06 | $ | 4.16 | ||||||
| LOANS BY TYPE (UNAUDITED) | ||||||||||||||
| (In thousands) | ||||||||||||||
| 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | ||||||||||
| Commercial, financial and agricultural | $ | 3,146,736 | $ | 2,945,784 | $ | 2,966,191 | $ | 2,924,533 | $ | 2,869,894 | ||||
| Real estate - construction | 1,457,628 | 1,532,285 | 1,735,405 | 1,599,410 | 1,489,306 | |||||||||
| Real estate - mortgage: | ||||||||||||||
| Owner-occupied commercial | 2,739,823 | 2,680,055 | 2,557,711 | 2,543,819 | 2,547,143 | |||||||||
| 1-4 family mortgage | 1,671,713 | 1,625,296 | 1,561,461 | 1,494,189 | 1,444,623 | |||||||||
| Non-owner occupied commercial | 4,603,389 | 4,448,710 | 4,338,697 | 4,259,566 | 4,181,243 | |||||||||
| Subtotal: Real estate - mortgage | 9,014,925 | 8,754,061 | 8,457,869 | 8,297,574 | 8,173,009 | |||||||||
| Consumer | 77,623 | 79,837 | 73,095 | 65,314 | 73,627 | |||||||||
| Total loans | $ | 13,696,912 | $ | 13,311,967 | $ | 13,232,560 | $ | 12,886,831 | $ | 12,605,836 | ||||
| SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED) | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | |||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||
| Beginning balance | $ | 170,235 | $ | 169,959 | $ | 165,034 | $ | 164,458 | $ | 160,755 | |||||||||
| Loans charged off: | |||||||||||||||||||
| Commercial, financial and agricultural | 7,695 | 7,947 | 6,849 | 2,415 | 3,899 | ||||||||||||||
| Real estate - construction | - | - | - | 46 | - | ||||||||||||||
| Real estate - mortgage | 64 | 1,294 | 580 | 3,571 | 560 | ||||||||||||||
| Consumer | 465 | 110 | 73 | 60 | 211 | ||||||||||||||
| Total charge offs | 8,224 | 9,350 | 7,502 | 6,092 | 4,670 | ||||||||||||||
| Recoveries: | |||||||||||||||||||
| Commercial, financial and agricultural | 1,532 | 237 | 959 | 171 | 1,801 | ||||||||||||||
| Real estate - construction | - | 30 | - | - | - | ||||||||||||||
| Real estate - mortgage | - | - | 1 | - | 23 | ||||||||||||||
| Consumer | 10 | 21 | 58 | 27 | 151 | ||||||||||||||
| Total recoveries | 1,542 | 288 | 1,018 | 198 | 1,975 | ||||||||||||||
| Net charge-offs | 6,682 | 9,062 | 6,484 | 5,894 | 2,695 | ||||||||||||||
| Provision for credit losses | 8,130 | 9,338 | 11,409 | 6,470 | 6,398 | ||||||||||||||
| Ending balance | $ | 171,683 | $ | 170,235 | $ | 169,959 | $ | 165,034 | $ | 164,458 | |||||||||
| Allowance for credit losses to total loans | 1.25 | % | 1.28 | % | 1.28 | % | 1.28 | % | 1.30 | % | |||||||||
| Allowance for credit losses to total average loans | 1.27 | % | 1.29 | % | 1.31 | % | 1.30 | % | 1.32 | % | |||||||||
| Net charge-offs to total average loans | 0.20 | % | 0.27 | % | 0.20 | % | 0.19 | % | 0.09 | % | |||||||||
| Provision for credit losses to total average loans | 0.24 | % | 0.28 | % | 0.35 | % | 0.21 | % | 0.21 | % | |||||||||
| Nonperforming assets: | |||||||||||||||||||
| Nonaccrual loans | $ | 168,466 | $ | 166,662 | $ | 68,619 | $ | 73,793 | $ | 39,501 | |||||||||
| Loans 90+ days past due and accruing | 478 | 965 | 3,549 | 111 | 2,965 | ||||||||||||||
| Other real estate owned and | |||||||||||||||||||
| repossessed assets | 2,583 | 611 | 311 | 756 | 2,531 | ||||||||||||||
| Total | $ | 171,527 | $ | 168,238 | $ | 72,479 | $ | 74,660 | $ | 44,997 | |||||||||
| Nonperforming loans to total loans | 1.23 | % | 1.26 | % | 0.55 | % | 0.57 | % | 0.34 | % | |||||||||
| Nonperforming assets to total assets | 0.97 | % | 0.96 | % | 0.42 | % | 0.40 | % | 0.26 | % | |||||||||
| Nonperforming assets to earning assets | 1.01 | % | 1.00 | % | 0.43 | % | 0.41 | % | 0.26 | % | |||||||||
| Allowance for credit losses to nonaccrual loans | 101.91 | % | 102.14 | % | 247.69 | % | 223.64 | % | 416.34 | % | |||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||
| (In thousands except per share data) | ||||||||||||||||||
| 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | ||||||||||||||
| Interest income: | ||||||||||||||||||
| Interest and fees on loans | $ | 214,252 | $ | 210,987 | $ | 206,521 | $ | 196,936 | $ | 200,875 | ||||||||
| Taxable securities | 17,199 | 17,338 | 16,562 | 16,023 | 16,905 | |||||||||||||
| Nontaxable securities | 5 | 5 | 5 | 6 | 6 | |||||||||||||
| Federal funds sold with agreement to resell | 5,671 | 4,724 | 1,592 | 20 | 18 | |||||||||||||
| Other interest and dividends | 14,261 | 18,254 | 21,955 | 28,111 | 26,088 | |||||||||||||
| Total interest income | 251,388 | 251,308 | 246,635 | 241,096 | 243,892 | |||||||||||||
| Interest expense: | ||||||||||||||||||
| Deposits | 86,920 | 98,735 | 93,488 | 94,745 | 98,702 | |||||||||||||
| Borrowed funds | 17,947 | 19,125 | 21,460 | 22,798 | 22,022 | |||||||||||||
| Total interest expense | 104,867 | 117,860 | 114,948 | 117,543 | 120,724 | |||||||||||||
| Net interest income | 146,521 | 133,448 | 131,687 | 123,553 | 123,168 | |||||||||||||
| Provision for credit losses | 7,922 | 9,463 | 11,296 | 6,630 | 5,704 | |||||||||||||
| Net interest income after provision for credit losses | 138,599 | 123,985 | 120,391 | 116,923 | 117,464 | |||||||||||||
| Non-interest income: | ||||||||||||||||||
| Service charges on deposit accounts | 3,339 | 3,316 | 2,671 | 2,558 | 2,650 | |||||||||||||
| Mortgage banking | 1,664 | 1,864 | 1,323 | 613 | 1,513 | |||||||||||||
| Credit card income | 1,835 | 2,405 | 2,119 | 1,968 | 1,867 | |||||||||||||
| Securities losses | - | (7,812 | ) | (8,563 | ) | - | - | |||||||||||
| Bank-owned life insurance income | 8,149 | 2,405 | 2,126 | 2,137 | 2,131 | |||||||||||||
| Other operating income | 704 | 655 | 745 | 1,001 | 642 | |||||||||||||
| Total non-interest income | 15,691 | 2,833 | 421 | 8,277 | 8,803 | |||||||||||||
| Non-interest expense: | ||||||||||||||||||
| Salaries and employee benefits | 23,838 | 25,522 | 22,576 | 22,879 | 24,062 | |||||||||||||
| Equipment and occupancy expense | 3,737 | 3,615 | 3,523 | 3,722 | 3,600 | |||||||||||||
| Third party processing and other services | 7,779 | 8,095 | 8,005 | 7,738 | 8,515 | |||||||||||||
| Professional services | 1,481 | 1,857 | 1,904 | 1,933 | 1,981 | |||||||||||||
| FDIC and other regulatory assessments | 2,641 | 2,742 | 2,753 | 2,854 | 2,225 | |||||||||||||
| Other real estate owned expense | 13 | 82 | 27 | 33 | 58 | |||||||||||||
| Other operating expense | 7,194 | 6,083 | 5,416 | 6,948 | 6,455 | |||||||||||||
| Total non-interest expense | 46,683 | 47,996 | 44,204 | 46,107 | 46,896 | |||||||||||||
| Income before income tax | 107,607 | 78,822 | 76,608 | 79,093 | 79,371 | |||||||||||||
| Provision for income tax | 21,223 | 13,251 | 15,184 | 15,869 | 14,198 | |||||||||||||
| Net income | 86,384 | 65,571 | 61,424 | 63,224 | 65,173 | |||||||||||||
| Dividends on preferred stock | 31 | - | 31 | - | 31 | |||||||||||||
| Net income available to common stockholders | $ | 86,353 | $ | 65,571 | $ | 61,393 | $ | 63,224 | $ | 65,142 | ||||||||
| Basic earnings per common share | $ | 1.58 | $ | 1.20 | $ | 1.12 | $ | 1.16 | $ | 1.19 | ||||||||
| Diluted earnings per common share | $ | 1.58 | $ | 1.20 | $ | 1.12 | $ | 1.16 | $ | 1.19 | ||||||||
| AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||||
| ON A FULLY TAXABLE-EQUIVALENT BASIS | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
| 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | ||||||||||||||||||||||||||||||
| Average Balance | Yield / Rate | Average Balance | Yield / Rate | Average Balance | Yield / Rate | Average Balance | Yield / Rate | Average Balance | Yield / Rate | |||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||
| Loans, net of unearned income (1) | ||||||||||||||||||||||||||||||||||
| Taxable | $ | 13,474,271 | 6.30 | % | $ | 13,175,297 | 6.34 | % | $ | 12,979,759 | 6.37 | % | $ | 12,683,077 | 6.29 | % | $ | 12,414,065 | 6.43 | % | ||||||||||||||
| Tax-exempt (2) | 30,670 | 5.52 | 30,478 | 5.47 | 30,346 | 5.51 | 25,044 | 4.94 | 13,198 | 1.57 | ||||||||||||||||||||||||
| Total loans, net of unearned | ||||||||||||||||||||||||||||||||||
| income | 13,504,941 | 6.29 | 13,205,775 | 6.34 | 13,010,105 | 6.37 | 12,708,121 | 6.28 | 12,427,263 | 6.43 | ||||||||||||||||||||||||
| Mortgage loans held for sale | 9,887 | 4.49 | 11,351 | 4.82 | 11,739 | 5.23 | 6,731 | 4.76 | 9,642 | 5.36 | ||||||||||||||||||||||||
| Debt securities: | ||||||||||||||||||||||||||||||||||
| Taxable | 1,826,632 | 3.77 | 1,926,101 | 3.60 | 1,965,089 | 3.37 | 1,934,739 | 3.31 | 1,932,547 | 3.49 | ||||||||||||||||||||||||
| Tax-exempt (2) | 444 | 5.41 | 444 | 5.41 | 492 | 4.88 | 589 | 5.43 | 606 | 5.28 | ||||||||||||||||||||||||
| Total securities (3) | 1,827,076 | 3.77 | 1,926,545 | 3.60 | 1,965,581 | 3.37 | 1,935,328 | 3.31 | 1,933,153 | 3.49 | ||||||||||||||||||||||||
| Federal funds sold and securities | ||||||||||||||||||||||||||||||||||
| purchased with agreement to resell | 469,148 | 4.79 | 365,733 | 5.12 | 124,303 | 5.14 | 1,670 | 4.86 | 1,596 | 4.49 | ||||||||||||||||||||||||
| Restricted equity securities | 12,193 | 6.61 | 12,167 | 6.36 | 12,146 | 6.64 | 11,461 | 7.43 | 11,290 | 6.80 | ||||||||||||||||||||||||
| Interest-bearing balances with banks | 1,393,155 | 4.00 | 1,608,118 | 4.45 | 1,952,479 | 4.47 | 2,526,382 | 4.48 | 2,143,474 | 4.81 | ||||||||||||||||||||||||
| Total interest-earning assets | $ | 17,216,400 | 5.79 | % | $ | 17,129,689 | 5.82 | % | $ | 17,076,353 | 5.80 | % | $ | 17,189,693 | 5.69 | % | $ | 16,526,418 | 5.87 | % | ||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||||||||||||
| Cash and due from banks | 102,066 | 103,470 | 109,506 | 108,540 | 103,494 | |||||||||||||||||||||||||||||
| Net premises and equipment | 61,009 | 60,614 | 59,944 | 59,633 | 60,708 | |||||||||||||||||||||||||||||
| Allowance for credit losses, accrued | ||||||||||||||||||||||||||||||||||
| interest and other assets | 556,704 | 415,586 | 380,700 | 352,282 | 346,763 | |||||||||||||||||||||||||||||
| Total assets | $ | 17,936,179 | $ | 17,709,359 | $ | 17,626,503 | $ | 17,710,148 | $ | 17,037,383 | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||
| Checking (4) | $ | 2,126,615 | 1.77 | % | $ | 2,069,440 | 2.16 | % | $ | 2,222,000 | 1.78 | % | $ | 2,461,900 | 2.38 | % | $ | 2,353,439 | 2.61 | % | ||||||||||||||
| Savings | 106,551 | 1.52 | 103,668 | 1.66 | 101,506 | 1.63 | 101,996 | 1.61 | 102,858 | 1.52 | ||||||||||||||||||||||||
| Money market | 7,816,487 | 3.23 | 7,965,115 | 3.67 | 7,616,747 | 3.67 | 7,363,163 | 3.61 | 7,067,265 | 3.86 | ||||||||||||||||||||||||
| Time deposits | 1,392,749 | 3.80 | 1,344,257 | 3.97 | 1,321,404 | 4.09 | 1,361,558 | 4.24 | 1,286,754 | 4.45 | ||||||||||||||||||||||||
| Total interest-bearing deposits | 11,442,402 | 3.01 | 11,482,480 | 3.41 | 11,261,657 | 3.33 | 11,288,617 | 3.40 | 10,810,316 | 3.63 | ||||||||||||||||||||||||
| Federal funds purchased | 1,712,399 | 4.01 | 1,640,377 | 4.46 | 1,855,860 | 4.49 | 1,994,766 | 4.50 | 1,767,749 | 4.80 | ||||||||||||||||||||||||
| Other borrowings | 59,207 | 4.21 | 64,761 | 4.21 | 64,750 | 4.26 | 64,750 | 4.30 | 64,738 | 4.22 | ||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 13,214,008 | 3.15 | % | $ | 13,187,618 | 3.55 | % | $ | 13,182,267 | 3.50 | % | $ | 13,348,133 | 3.57 | % | $ | 12,642,803 | 3.80 | % | ||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Non-interest-bearing | ||||||||||||||||||||||||||||||||||
| checking | 2,768,495 | 2,651,043 | 2,633,552 | 2,600,775 | 2,672,875 | |||||||||||||||||||||||||||||
| Other liabilities | 143,680 | 122,873 | 119,829 | 120,291 | 130,457 | |||||||||||||||||||||||||||||
| Stockholders' equity | 1,813,097 | 1,762,980 | 1,716,232 | 1,670,402 | 1,624,084 | |||||||||||||||||||||||||||||
| Accumulated other comprehensive | ||||||||||||||||||||||||||||||||||
| loss | (3,101 | ) | (15,155 | ) | (25,377 | ) | (29,453 | ) | (32,836 | ) | ||||||||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||||||||||||||||
| stockholders' equity | $ | 17,936,179 | $ | 17,709,359 | $ | 17,626,503 | $ | 17,710,148 | $ | 17,037,383 | ||||||||||||||||||||||||
| Net interest spread | 2.64 | % | 2.27 | % | 2.30 | % | 2.12 | % | 2.07 | % | ||||||||||||||||||||||||
| Net interest margin | 3.38 | % | 3.09 | % | 3.10 | % | 2.92 | % | 2.96 | % | ||||||||||||||||||||||||
| (1) Average loans include nonaccrual loans in all periods. Loan fees of $5,464, $6,103, $4,430, $3,764, and $4,460 are included in interest income in the fourth quarter of 2025, third quarter of 2025, second quarter of 2025, first quarter of 2025, and fourth quarter of 2024, respectively. | ||||||||||||||||||||||||||||||||||
| (2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%. | ||||||||||||||||||||||||||||||||||
| (3) Unrealized losses on debt securities of $(6,311), $(22,574), $(36,381), $(41,970), and $(46,652) for the fourth quarter of 2025, third quarter of 2025, second quarter of 2025, first quarter of 2025, and fourth quarter of 2024, respectively, are excluded from the yield calculation. | ||||||||||||||||||||||||||||||||||
| (4) Includes impact of reversal of a $2.3 million accrual related to a legal matter during the second quarter of 2025. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures." | ||||||||||||||||||||||||||||||||||
Contact: ServisFirst Bank Davis Mange (205) 949-3420 dmange@servisfirstbank.com
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