ServisFirst Bancshares Reports 26.3% Increase in Net Income to $63.2 Million for Q1 2025

ServisFirst Bancshares, Inc. reported a strong financial performance for the first quarter of 2025, with net income reaching $63.2 million, a 26.3% increase from $50.0 million in the same period last year. This growth translated to basic and diluted earnings per common share of $1.16, up from $0.92 in the first quarter of 2024. The company's total assets increased by $1.29 billion, or 7.4%, to $18.64 billion, while total loans rose by $281 million, or 2.2%, to $12.89 billion. Total deposits also saw significant growth, increasing by $885.6 million, or 6.5%, to $14.43 billion.

The increase in net income was primarily driven by a $21.1 million rise in net interest income, which totaled $123.6 million for the quarter, compared to $102.5 million in the prior year. This increase was attributed to higher interest income and a reduction in interest expenses on deposits. However, non-interest income decreased by $631,000 to $8.3 million, largely due to a decline in bank-owned life insurance income. Non-interest expenses remained stable, decreasing slightly by $124,000 to $46.1 million.

In terms of operational metrics, ServisFirst Bancshares reported a return on average assets of 1.45%, up from 1.26% year-over-year, and a return on average common stockholders' equity of 15.63%, compared to 13.82% in the previous year. The company’s liquidity position remained strong, with $3.3 billion in cash and cash equivalents, representing 18% of total assets. The common equity tier 1 capital ratio improved to 11.48%, up from 11.07% a year earlier.

The company also experienced a notable increase in its loan portfolio, particularly in real estate construction and mortgage loans, which accounted for a significant portion of the growth. The allowance for credit losses stood at $165 million, or 1.28% of total loans, reflecting a slight increase from the previous quarter. Nonperforming loans rose to $73.9 million, or 0.57% of total loans, up from $42.5 million at the end of 2024, primarily due to two significant relationships secured by real estate.

Looking ahead, ServisFirst Bancshares remains optimistic about its growth trajectory, supported by a strong deposit base and an expanding loan pipeline. The company continues to focus on maintaining its capital adequacy and liquidity while navigating the competitive banking landscape. Management anticipates that ongoing economic conditions and strategic initiatives will further enhance its financial performance in the coming quarters.