ServisFirst Bancshares, Inc. announced its second-quarter 2025 financial results on July 21, 2025, reporting net income of $61.4 million, an 17.8% increase from $52.1 million in Q2 2024. Diluted earnings per share rose 17.9% year-over-year to $1.12, reflecting solid core performance.
Net interest income surged 24.4% year-over-year to $131.7 million, and the net interest margin expanded to 3.10% from 2.79% in Q2 2024. This margin improvement was partly due to a $2.3 million interest expense accrual reversal. The company also undertook a strategic bond portfolio restructuring, selling $70.5 million of low-yielding securities at an $8.6 million pre-tax loss, and reinvesting the proceeds into higher-yielding assets with an expected 3.8-year payback period.
Loan growth remained strong, with ending total loans increasing by 7.3% year-over-year to $13.23 billion. However, non-performing assets to total assets increased to 0.42% from 0.23% in Q2 2024, primarily due to two real estate-secured relationships. Annualized net charge-offs also rose to 0.20%, including a $4.9 million charge-off on a previously unimpaired loan. The efficiency ratio improved to 33.46%, demonstrating continued operational discipline.
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