- ServisFirst Bancshares (SFBS, Financial) posted a 26.1% increase in diluted EPS, reaching $1.16 for Q1 2025.
- The bank experienced significant deposit growth, adding $886 million or 26% annualized.
- Loans rose by $281 million, marking a 9% annualized growth rate for the quarter.
ServisFirst Bancshares, Inc. (SFBS) reported impressive financial results for the first quarter of 2025, featuring a substantial increase in diluted earnings per share to $1.16, up 26.1% from the previous year. This growth reflects the bank's strong operational performance and ability to drive earnings.
The bank's deposits surged by $886 million, or a 26% annualized growth rate, indicating robust liquidity and customer confidence. Loans expanded by $281 million during the quarter, representing a 9% annualized growth and attesting to the bank's capacity to extend credit effectively.
ServisFirst's net income stood at $63.2 million, while the return on average equity saw an increase to 15.63% from 13.82% a year earlier. The book value per share climbed to $30.56, marking a 12.9% year-over-year rise, further strengthening shareholder equity.
The bank's liquidity position remains solid, with $3.3 billion in cash, amounting to 18% of total assets, accompanied by no Federal Home Loan Bank (FHLB) advances or brokered deposits. The consolidated common equity tier 1 capital ratio improved to 11.48%, reinforcing the bank's capital adequacy.
Despite advances in various areas, the bank did witness an increase in non-performing assets to 0.40% from the previous quarter's 0.26%. Net charge-offs climbed to 0.19% compared to 0.09% in the last quarter, highlighting areas that require vigilant risk management. However, these figures are still within manageable limits, supported by an allowance for credit losses set at 1.28% of total loans.
Overall, ServisFirst Bancshares' Q1 2025 results underscore the bank's resilience and strategic growth in a competitive financial environment, positioning it well for future opportunities and challenges.
