ServisFirst Bancshares (SFBS) investor relations material

Executive summary

• Net income for Q2 2025 was $61.4M, up 17.9% year-over-year, with diluted EPS of $1.12 and adjusted EPS up 27% to $1.21.

• Net interest margin improved to 3.10% from 2.92% sequentially, with robust loan growth of 11% annualized and strong pipelines in C&I and CRE.

• Deposits increased 2.4% since year-end to $13.86B, with average deposits up 8% year-over-year.

• Focused on core deposit growth, merchant card processing expansion, and hiring new producers.

• Liquidity remains robust with $1.7B in cash and equivalents, 10% of total assets, and no FHLB advances or brokered deposits.

Financial highlights

• Net interest income was $131.7M, up $5.9M sequentially and $23M year-over-year; adjusted net interest income was $129.4M.

• Return on average assets was 1.4%; return on common equity was 14.56%.

• Efficiency ratio improved to 33.46% from 37.31% year-over-year; adjusted efficiency ratio at 31.94%.

• Allowance for credit losses held steady at 1.28% of total loans; net charge-offs to average loans at 0.20%.

• Tangible book value per share rose to $31.27, up 14% year-over-year.

Outlook and guidance

• Management expects continued loan and deposit growth, with net interest margin projected to reach 3.20–3.25% by year-end absent Fed action.

• Provision expense expected to normalize as loan growth continues and economic environment remains steady.

• Anticipate a pickup in noninterest income in Q3 from increased treasury management fees and merchant services.

• Asset repricing expected to drive higher net interest margins over the next 24 months.

• No material changes in risk factors or business strategy reported for upcoming quarters.