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S&P, Nasdaq hit record highs amid optimistic earnings
July 21 (UPI) -- Two U.S. stock indexes -- Standard and Poor's 500 and Nasdaq 500 -- were trading at record highs during trading Monday as companies release earnings this week, though investors brace for U.S. tariff increases. The S&P 500 hit an intra-day high of 6,335.79, or 0.6%, above the record 6,297.36 on Thursday. The tech-heavy Nasdaq reached 21,077.37, a rise of 0.7%, after a record 20,895.66 on Friday. The Dow Jones Industrial Average reached 44,601.85, a climb of 0.6%, and off the record 45,073.63 on Dec. 4. The index's high this year was 45,008.75 on Jan. 30, 10 days after Donald Trump took office for his second term. The indexes climbed on the strength of technology firms, including Alphabet, Meta and Apple, all of which rose at least 1%. Earnings reports already have been strong. Verizon's stock price climbed 5% after posting better-than-expected earnings and revenue. Of the 62 S&P companies that have reported, more than 85% beat expectations, according to FactSet data as reported by CNBC. Earnings for the second quarter, which ended June 30, are tracking 5% over one year, according Bank of America. Alphabet and Meta have yet to report. "Rarely do you injure yourself falling out of a basement window," Sam Stovall, chief investment strategist at CFRA Research, said to CNBC. "With expectations so low in earnings, I think that the end result will end up being better than anticipated. That is encouraging for the market, as well." Stoval said he believes the S&P could hit 6,600 before declining. "A lot of the negativity has typically been shaken out of the market during these corrections, and now we're seeing articles about maybe the economy is not as bad as we thought it was, consumer confidence is on the mend and we're not seeing the inflation numbers be adversely affected by tariffs," he said. "Maybe it's just a matter of time before those things kick in, but at least for now, I think investors are saying, 'You know what, the market is indicating that it wants to go higher.'" Dan Greenhaus at Solus Alternative Asset Management was more cautious. He told Bloomberg News: "Given the better-than-expected inflation and economic data -- not to mention corporate commentary which thus far has been pretty good -- I'm not sure I'd put too much stock in the technicals right now." Stocks lately haven't been volatile, especially compared with April. Before trading this week, the S&P Index went 17 sessions without a move of more than 1% in each direction. Trump threatened tariffs on the April 2 "Liberation Day" of across-the-board tariffs on most U.S. trading partners and much higher for offenders. Indexes tumbled to lows this year and the bond market was battered. On April 8, the S&P was down 17.5% to 4,982.77, Nasdaq went into a bear market with a decline of 23.4% to 15,267.93 and DJIA off 15.4% 37,645.59. Then a day later, Trump paused the reciprocal tariffs to July 9. Last week, Trump announced news figures on 25 countries, including 50% against Brazil, 35% on Canada, 30% against the 29 European Union nations, 30% on Mexico. Deals have been reached with some nations, including Britain, China and Vietnam. Looming is the Aug. 1 trade deadline for countries to begin paying higher tariffs. Commerce Secretary Howard Lutnick told CBS News' Face the Nation on Sunday it is a "hard deadline." "That's gotten these countries to the table, and they are going to open their markets or they're going to pay the tariff," Lutnick said. The U.S. economy has been in good shape as the U.S. unemployment fell to 4.1% in June. Consumer prices rose 2.7% over one year, up 2.4% from the previous month. Transportation services were up 3.4%, food at 3%, and uses and trucks as 2.8%, according to Trading Economies. Specifically, energy costs decline by a smaller margin than the previous month. "I think you're going to see inflation stay right where it is," Lutnick said. "Americans can expect 'shockingly low' prices. The federal fund rate remained at a target range of 4.25% to 3.5% after its the Federal Reserve's June 17 and 18 meetings. The Fed's last rate change was a 25 basis point reduction on Dec. 18. Trump has been pressuring Chairman Jerome Powell to lower the rates. But Powell is urging caution and said a reduction could spurt inflation and slow economic growth.
Yahoo
26 minutes ago
- Yahoo
Fixed vs. variable student loan rates: Which is best?
Key takeaways Fixed-rate student loans are usually best if you're exhausting your federal loan eligibility or prefer predictable monthly payments. Variable-rate student loans have interest rates that change with the state of the market. Fixed rates are best for people who have longer loans and want monthly payment stability. Variable rates are best for people looking to get lower rates when markets improve and pay off loans relatively quickly. Student loans can come with either fixed or variable rates. Private student loans have both options, but federal student loans only have fixed rates. Each works best depending on the situation, such as the type of student loan you're taking out. Fixed-rate loans are usually the safest choice for many students since it's hard to predict which direction rates will go, but both rate types have their pros and cons. Fixed vs. variable rates: Pros and cons Fixed-rate loans come with an interest rate that remains the same throughout the life of the loan, meaning you'll have predictable monthly payments. By comparison, variable-rate student loans have an interest rate that fluctuates based on market conditions. >>Learn more: How to calculate student loan interest rate Picking a variable-rate student loan could be beneficial in some scenarios, but it's tricky because market conditions are unpredictable. If the Federal Reserve (Fed) changes its benchmark rate, it can influence rates for borrowers with variable student loans. When the Fed lowers its benchmark rate, lenders might lower their minimum advertised rates. On the other hand, when the Fed increases its benchmark rate, lenders might increase their interest rates. Although the Fed's decision to lower or raise its benchmark rate doesn't impact rates for existing borrowers with fixed-rate student loans, it could influence rates for new borrowers. The fixed rate for federal student loans is adjusted annually on July 1 based on market conditions, and private lenders often adjust their fixed rates based on the market environment. Keep in mind: Your rate can affect other areas, such as your budget, your student loan payment and how your payment relates to your future income. Fixed-rate student loans Fixed rates remain constant during the loan term, which means your monthly student loan payments will be predictable as you pay off your debt. The only way to change a fixed interest rate is by refinancing the loan. While fixed rates are typically higher than the lowest advertised variable rates, they provide stability because the payment won't change. You'll know exactly how much you'll pay monthly and how much interest you'll pay overall. Pros Interest rate will never change Monthly payments are consistent You'll know how much interest you'll pay Cons Generally higher starting rates No benefit if interest rates drop Note that all federal student loans come with fixed rates. Since federal loans come with benefits that private student loans don't offer, like access to income-driven repayment plans and student loan forgiveness programs, we recommend that you exhaust your federal student loan eligibility first before turning to private student loans to fill in any funding gaps. Upcoming changes to student loan repayment options With the passage of the One Big Beautiful Bill Act, a lot of changes are in store when it comes to repayment options. Student loans expert Andrew Pentis breaks it down for you. Learn more Variable-rate student loans Variable interest rates are tied to market conditions, so your student loan payment could increase or decrease based on an adjustment in your interest rate. Lenders typically tie the loan's variable rate to a benchmark rate, like the prime rate or the Secured Overnight Financing Rate (SOFR) index, plus a fixed margin. While you might start with a lower payment than you would with a fixed-rate loan, your interest rate – and monthly payment – could rise later on. Pros Typically lower starting rates Benefit from market changes (in some cases) Lower monthly payments if interest rates are low Cons Rate can rise over time Monthly payment can change Can be more difficult to budget for Fixed or variable rate: When to choose Fixed interest rates are good for borrowers who don't have a lot of wiggle room to account for an adjusting interest rate. Variable-rate student loans are a good option if you qualify for the lowest rates available. As mentioned earlier, all new federal student loans have fixed interest rates, and fixed rates are typically an option with private lenders. Private student loans tend to offer variable interest rate options as well. The idea that fixed-rate student loans are always better is a common misconception, according to Lawrence D. Sprung, certified financial planner and founder of Mitlin Financial and Wealth Advisor. In comparison, Tayne advises most student loan borrowers to choose a fixed-rate loan because payments are predictable and easier to manage with their budgets. While she acknowledges variable rates may be better if the student can qualify for a lower rate and pay off the loan within a few years, she notes that it's rarely the case for college students with little income or savings. Here are some scenarios where choosing a student loan with a fixed rate can make sense: Fixed rates are better Variable rates are better You prefer predictable monthly payments. You plan to pay off your student loan early. You want to lock in a low fixed rate. You have extra room in your budget in case rates rise. You're choosing a long repayment term. You can qualify for the best rates and terms. Student loan calculator Want to figure out some of the logistics of your student loans and experiment with some numbers? Bankrate wants to help you crunch the numbers. Calculate now What to consider before choosing When deciding whether a variable- or fixed-rate student loan is best for you, Sprung says to consider the terms of the loan, economic or interest rate outlook and your financial situation. In addition, here are some other things to consider. Consider the type of student loan: If you're taking out federal student loans, your only option is a fixed interest rate. In contrast, most private lenders offer both. Think about how long it'll take to pay off the loan: The longer your student loan, the more time a variable rate will have to fluctuate. That makes variable rates a better choice for parents or students who are not deferring payment. Look at market conditions: Take a look at current economic conditions and whether interest rates are rising or falling. For example, the Federal Reserve has been working to lower its interest rate, but markets are currently uncertain. Ask about variable terms: If you're considering a variable-rate loan, ask the lender how often the rate changes and whether there's a maximum rate cap. Think about your risk tolerance: Consider whether you'd be okay with short-term interest rate fluctuations or if you'd rather have the peace of mind of a fixed rate. Look at your credit score: Variable rates are best for those who can get the best rates and terms. If your credit score is lower, you may need student loans for bad credit, most of which have fixed APRs. Take your time to think about each of these factors and how they might impact you if you were to choose a variable- or a fixed-rate student loan. And remember that you can change your mind later and refinance your loans if you decide the other option is better for you. Student loan refinance calculator Want to see if refinancing is right for you? Bankrate's student loan refinance calculator is here to help. Calculate now How to switch student loan rate types Just because you choose one type of student loan doesn't mean you have to stick with it for the life of the loan. You can refinance your student loans, which means swapping out your current student loans with a new private student loan. Keep in mind that there's no guarantee that refinancing later might be difficult, depending on your financial situation. 'Depending on where rates go, your credit history and income will impact how easy [it is to refinance],' Sprung says. 1. Fixed rate to variable rate If you have a fixed-rate federal or private student loan, it's possible to refinance to a variable-rate private student loan. Doing so could be a smart move if you can save money. That said, think twice about refinancing federal student loans because it means you'll lose access to federal benefits, such as federal forbearance. 2. Variable rate to fixed rate You can also refinance from a variable-rate private student loan to a fixed-rate private loan. Making this choice could be a wise move if you prefer predictable monthly payments and can qualify for a lower fixed rate. Bottom line A fixed-rate student loan may be the best option if you prefer a longer repayment period and stable monthly payments throughout the life of the loan. Plus, it's your only option if you're exhausting your federal loan options first, which experts often recommend. If you intend to pay off your loan faster and need a private student loan to fill in funding gaps, a variable-rate loan could be a better fit for you. Whichever option you choose, compare rates and terms from as many lenders as possible to get the best deal. You may also have to check into student loans for bad credit. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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26 minutes ago
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ServisFirst Bancshares, Inc. Announces Results for Second Quarter of 2025
BIRMINGHAM, Ala., July 21, 2025--(BUSINESS WIRE)--ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended June 30, 2025. Second Quarter 2025 Highlights: Diluted earnings per share of $1.12 for the quarter. Adjusted diluted earnings per share of $1.21, up 27% from the second quarter of 2024. Net interest margin improved to 3.10% in the second quarter from 2.92% in the first quarter. Adjusted net interest margin was 3.06% in the second quarter. Loans grew by $346 million, or 11% annualized, during the quarter. Book value per share of $31.52, up 14% from the second quarter of 2024 and 16% annualized, from the first quarter of 2025. Liquidity remains strong with $1.7 billion in cash and cash equivalent assets, 10% of our total assets, and no FHLB advances or brokered deposits. Consolidated common equity tier 1 capital to risk-weighted assets increased from 10.93% to 11.38% year-over-year. Return on average common stockholder's equity of 14.56%. Adjusted return on average common stockholders' equity increased from 14.08% to 15.63% year-over-year. Tom Broughton, Chairman, President, and CEO, said, "We were pleased with the loan growth in the quarter, combined with the improved environment for banks like ServisFirst." David Sparacio, CFO, said, "The net interest margin continues to improve and we see continued asset repricing, which we believe will lead to higher net interest margins over the next 24 months." * 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, 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 June30, 2025 Period EndingMarch 31, 2025 % Change FromPeriod EndingMarch 31, 2025to Period EndingJune 30, 2025 Period Ending June30, 2024 % Change FromPeriod EndingJune 30, 2024 toPeriod EndingJune 30, 2025 QUARTERLY OPERATING RESULTS Net Income $ 61,424 $ 63,224 (2.8 )% $ 52,136 17.8 % Net Income Available to Common Stockholders $ 61,393 $ 63,224 (2.9 )% $ 52,105 17.8 % Diluted Earnings Per Share $ 1.12 $ 1.16 (3.4 )% $ 0.95 17.9 % Return on Average Assets 1.40 % 1.45 % 1.34 % Return on Average Common Stockholders' Equity 14.56 % 15.63 % 14.08 % Average Diluted Shares Outstanding 54,664,480 54,656,630 54,608,679 Adjusted Net Income, net of tax* $ 66,133 $ 63,224 4.6 % $ 52,136 26.8 % Adjusted Net Income Available to Common Stockholders, net of tax* $ 66,102 $ 63,224 4.6 % $ 52,105 26.9 % Adjusted Diluted Earnings Per Share, net of tax* $ 1.21 $ 1.16 4.4 % $ 0.95 27.5 % Adjusted Return on Average Assets, net of tax* 1.50 % 1.45 % 1.34 % Adjusted Return on Average Common Stockholders' Equity, net of tax* 15.68 % 15.63 % 14.08 % YEAR-TO-DATE OPERATING RESULTS Net Income $ 124,648 $ 102,162 22.0 % Net Income Available to Common Stockholders $ 124,617 $ 102,131 22.0 % Diluted Earnings Per Share $ 2.28 $ 1.87 21.9 % Return on Average Assets 1.42 % 1.30 % Return on Average Common Stockholders' Equity 15.08 % 13.96 % Average Diluted Shares Outstanding 54,660,577 54,602,032 Adjusted Net Income, net of tax* $ 129,357 $ 103,509 25.0 % Adjusted Net Income Available to Common Stockholders, net of tax* $ 129,326 $ 103,478 25.0 % Adjusted Diluted Earnings Per Share, net of tax* $ 2.36 $ 1.89 Adjusted Return on Average Assets, net of tax* 1.48 % 1.31 % Adjusted Return on Average Common Stockholders' Equity, net of tax* 15.65 % 14.15 % BALANCE SHEET Total Assets $ 17,378,628 $ 18,636,766 (6.8 )% $ 16,049,812 8.3 % Loans 13,232,560 12,886,831 2.7 % 12,332,780 7.3 % Non-interest-bearing Demand Deposits 2,632,058 2,647,577 (0.6 )% 2,475,415 6.3 % Total Deposits 13,862,319 14,429,061 (3.9 )% 13,259,392 4.5 % Stockholders' Equity 1,721,783 1,668,900 3.2 % 1,510,576 14.0 % DETAILED FINANCIALS ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $61.4 million for the quarter ended June 30, 2025, compared to net income and net income available to common stockholders of $63.2 million for the first quarter of 2025 and net income and net income available to common stockholders of $52.1 million for the second quarter of 2024. Basic and diluted earnings per common share were both $1.12 in the second quarter of 2025, compared to $1.16 for both in the first quarter of 2025 and $0.96 and $0.95, respectively, in the second quarter of 2024. Annualized return on average assets was 1.40% and annualized return on average common stockholders' equity was 14.56% for the second quarter of 2025, compared to 1.34% and 14.08%, respectively, for the second quarter of 2024. Net interest income was $131.7 million for the second quarter of 2025, compared to $123.6 million for the first quarter of 2025 and $105.9 million for the second quarter of 2024. The net interest margin in the second quarter of 2025 was 3.10% compared to 2.92% in the first quarter of 2025 and 2.79% in the second quarter of 2024. Loan yields were 6.37% during the second quarter of 2025 compared to 6.28% during the first quarter of 2025 and 6.48% during the second quarter of 2024. Investment yields were 3.37% during the second quarter of 2025 compared to 3.31% during the first quarter of 2025 and 3.33% during the second quarter of 2024. Average interest-bearing deposit rates were 3.33% during the second quarter of 2025, compared to 3.40% during the first quarter of 2025 and 4.09% during the second quarter of 2024. During the quarter, we reversed a $2.3 million accrual related to a legal matter, which had been recorded in interest expense. Average federal funds purchased rates were 4.49% during the second quarter of 2025, compared to 4.50% during the first quarter of 2025 and 5.50% during the second quarter of 2024. Average loans for the second quarter of 2025 were $13.01 billion, an increase of $302.0 million, or 9.5% annualized, from average loans of $12.71 billion for the first quarter of 2025, and an increase of $947.1 million, or 7.9%, from average loans of $12.06 billion for the second quarter of 2024. Ending total loans for the second quarter of 2025 were $13.23 billion, an increase of $345.7 million, or 10.8% annualized, from $12.89 billion for the first quarter of 2025, and an increase of $899.8 million, or 7.3%, from $12.33 billion for the second quarter of 2024. Average total deposits for the second quarter of 2025 were $13.90 billion, an increase of $5.8 million, or 0.2% annualized, from average total deposits of $13.89 billion for the first quarter of 2025, and an increase of $1.03 billion, or 8.0%, from average total deposits of $12.86 billion for the second quarter of 2024. Ending total deposits for the second quarter of 2025 were $13.86 billion, a decrease of $566.7 million, or 15.8% annualized, from $14.43 billion for the first quarter of 2025, and an increase of $602.9 million, or 4.5%, from $13.26 billion for the second quarter of 2024. Non-performing assets to total assets were 0.42% for the second quarter of 2025, compared to 0.40% for the first quarter of 2025 and 0.23% for the second quarter of 2024. The majority of the year-over-year increase in non-performing assets was attributable to two relationships, both of which are secured by real estate. Annualized net charge-offs to average loans were 0.20% for the second quarter of 2025, compared to 0.19% for the first quarter of 2025 and 0.10% for the second quarter of 2024. During the second quarter of 2025, we charged off $4.9 million on a loan that had not been previously impaired. The allowance for credit losses as a percentage of total loans at June 30, 2025, March 31, 2025, and June 30, 2024, was 1.28%, 1.28%, and 1.28%, respectively. We recorded a $11.4 million provision for loan losses in the second quarter of 2025 compared to $6.5 million in the first quarter of 2025, and $5.4 million in the second quarter of 2024. Higher loan growth and increased net charge-offs during the second quarter of 2025 contributed to the increase in provision for loan losses. Non-interest income decreased $8.5 million, or 95.3%, to $421,000 for the second quarter of 2025 from $8.9 million in the second quarter of 2024, and decreased $7.9 million, or 94.9%, on a linked quarter basis. Service charges on deposit accounts increased $378,000, or 16.5%, to $2.7 million for the second quarter of 2025 from $2.3 million in the second quarter of 2024, and increased $113,000, or 4.4%, on a linked quarter basis. Mortgage banking revenue decreased $56,000, or 4.1%, to $1.3 million for the second quarter of 2025 from $1.4 million in the second quarter of 2024, and increased $710,000, or 115.8%, on a linked quarter basis. Net credit card income decreased $214,000, or 9.2%, to $2.1 million for the second quarter of 2025 from $2.3 million in the second quarter of 2024, and increased $151,000, or 7.7%, on a linked quarter basis. In the second quarter of 2025, we recognized an $8.6 million loss on the sale of available-for-sale debt securities as part of a portfolio restructuring. Bank-owned life insurance ("BOLI") income increased $68,000, or 3.3%, to $2.1 million for the second quarter of 2025 from $2.1 million in the second quarter of 2024, and decreased $11,000, or 0.5%, on a linked quarter basis. Other operating income decreased $83,000, or 10.0%, to $745,000 for the second quarter of 2025 from $828,000 in the second quarter of 2024, and decreased $256,000, or 25.6%, on a linked quarter basis. Non-interest expense increased $1.4 million, or 3.2%, to $44.2 million for the second quarter of 2025 from $42.8 million in the second quarter of 2024, and decreased $1.9 million, or 4.1%, on a linked quarter basis. Salary and benefit expense decreased $1.6 million, or 6.8%, to $22.6 million for the second quarter of 2025 from $24.2 million in the second quarter of 2024, and decreased $303,000, or 1.3%, on a linked quarter basis. The number of full-time equivalent ("FTE") employees increased by 34, or 5.44%, to 659 at June 30, 2025 compared to 625 at June 30, 2024, and increased by 23, or 3.61%, from the end of the first quarter of 2025. Equipment and occupancy expense decreased $44,000, or 1.2%, to $3.5 million for the second quarter of 2025 from $3.6 million in the second quarter of 2024, and decreased $199,000, or 5.3%, on a linked quarter basis. Third party processing and other services expense increased $540,000, or 7.2%, to $8.0 million for the second quarter of 2025 from $7.5 million in the second quarter of 2024, and increased $267,000, or 3.5%, on a linked quarter basis. Professional services expense increased $163,000, or 9.4%, to $1.9 million for the second quarter of 2025 from $1.7 million in the second quarter of 2024, and decreased $29,000, or 1.5%, on a linked quarter basis. FDIC and other regulatory assessments increased $551,000, or 25.0%, to $2.8 million for the second quarter of 2025 from $2.2 million in the second quarter of 2024, and decreased $101,000, or 3.5%, on a linked quarter basis. Other operating expenses increased $1.8 million, or 49.5%, to $5.4 million for the second quarter of 2025 from $3.6 million in the second quarter of 2024, and decreased $1.5 million, or 22.0%, on a linked quarter basis. The efficiency ratio was 33.46% during the second quarter of 2025 compared to 37.31% during the second quarter of 2024 and 34.97% during the first quarter of 2025. The adjusted efficiency ratio was 31.94% in the second quarter of 2025. Income tax expense increased $725,000, or 5.0%, to $15.2 million in the second quarter of 2025, compared to $14.5 million in the second quarter of 2024. Our effective tax rate was 19.82% for the second quarter of 2025 compared to 21.71% for the second quarter of 2024. 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 second quarters of 2025 and 2024 of $2.1 million and $396,000, 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, and Virginia. We also operate a loan production office in Florida. Through the ServisFirst 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 or at 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 and Section 27A of the Securities Act of 1933. 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. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.'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 tornados, in our geographic markets; and increased competition from both banks and non-bank financial institutions. 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, in our Quarterly Reports on Form 10-Q for fiscal year 2025, and our other SEC filings. If one or more of the assumptions forming the basis of 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 contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. 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 or by calling (205) 949-0302. SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) (In thousands except share and per share data) 2nd Quarter 2025 1st Quarter 2025 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024 CONSOLIDATED STATEMENT OF INCOME Interest income $ 246,635 $ 241,096 $ 243,892 $ 247,979 $ 227,540 Interest expense 114,948 117,543 120,724 132,858 121,665 Net interest income 131,687 123,553 123,168 115,121 105,875 Provision for credit losses 11,296 6,630 5,704 5,659 5,353 Net interest income after provision for credit losses 120,391 116,923 117,464 109,462 100,355 Non-interest income 421 8,277 8,803 8,549 8,891 Non-interest expense 44,204 46,107 46,896 45,632 42,818 Income before income tax 76,608 79,093 79,371 72,379 66,595 Provision for income tax 15,184 15,869 14,198 12,472 14,459 Net income 61,424 63,224 65,173 59,907 52,136 Preferred stock dividends 31 - 31 - 31 Net income available to common stockholders $ 61,393 $ 63,224 $ 65,142 $ 59,907 $ 52,105 Earnings per share - basic $ 1.12 $ 1.16 $ 1.19 $ 1.10 $ 0.96 Earnings per share - diluted $ 1.12 $ 1.16 $ 1.19 $ 1.10 $ 0.95 Average diluted shares outstanding 54,664,480 54,656,630 54,649,808 54,642,582 54,608,679 CONSOLIDATED BALANCE SHEET DATA Total assets $ 17,378,628 $ 18,636,766 $ 17,351,643 $ 16,449,178 $ 16,049,812 Loans 13,232,560 12,886,831 12,605,836 12,338,226 12,332,780 Debt securities 1,914,503 1,905,550 1,876,253 1,867,587 1,941,641 Non-interest-bearing demand deposits 2,632,058 2,647,577 2,619,687 2,576,329 2,475,415 Total deposits 13,862,319 14,429,061 13,543,459 13,146,529 13,259,392 Borrowings 64,747 64,745 64,743 64,741 64,739 Stockholders' equity 1,721,783 1,668,900 1,616,772 1,570,269 1,510,576 Shares outstanding 54,618,545 54,601,217 54,569,427 54,551,543 54,521,479 Book value per share $ 31.52 $ 30.57 $ 29.63 $ 28.79 $ 27.71 Tangible book value per share (1) $ 31.27 $ 30.32 $ 29.38 $ 28.54 $ 27.46 SELECTED FINANCIAL RATIOS (Annualized) Net interest margin 3.10 % 2.92 % 2.96 % 2.84 % 2.79 % Return on average assets 1.40 % 1.45 % 1.52 % 1.43 % 1.34 % Return on average common stockholders' equity 14.56 % 15.63 % 16.29 % 15.55 % 14.08 % Efficiency ratio 33.46 % 34.97 % 35.54 % 36.90 % 37.31 % Non-interest expense to average earning assets 1.04 % 1.09 % 1.13 % 1.13 % 1.13 % CAPITAL RATIOS (2) Common equity tier 1 capital to risk-weighted assets 11.38 % 11.48 % 11.42 % 11.25 % 10.93 % Tier 1 capital to risk-weighted assets 11.38 % 11.48 % 11.42 % 11.25 % 10.93 % Total capital to risk-weighted assets 12.81 % 12.93 % 12.90 % 12.77 % 12.43 % Tier 1 capital to average assets 9.78 % 9.48 % 9.59 % 9.54 % 9.81 % Tangible common equity to total tangible assets (1) 9.84 % 8.89 % 9.25 % 9.47 % 9.33 % (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 return on average assets, adjusted return on average common stockholders' equity, 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. We reversed a $2.3 million legal reserve from interest expense during the second quarter of 2025. 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 return on average assets, adjusted return on average common stockholders' equity 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 a number of 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 June 30,2025 At March 31,2025 At December 31,2024 At September 30,2024 At June 30,2024 Book value per share - GAAP $ 31.52 $ 30.56 $ 29.63 $ 28.79 $ 27.71 Total common stockholders' equity - GAAP 1,721,783 1,668,900 1,616,772 1,570,269 1,570,994 Adjustment for Goodwill (13,615 ) (13,615 ) (13,615 ) (13,615 ) (13,615 ) Tangible common stockholders' equity - non-GAAP $ 1,708,168 $ 1,655,285 $ 1,603,157 $ 1,556,654 $ 1,557,379 Tangible book value per share - non-GAAP $ 31.27 $ 30.31 $ 29.38 $ 28.54 $ 27.46 Stockholders' equity to total assets - GAAP 9.91 % 8.95 % 9.32 % 9.55 % 9.55 % Total assets - GAAP $ 17,378,628 $ 18,636,766 $ 17,351,643 $ 16,449,178 $ 16,448,582 Adjustment for Goodwill (13,615 ) (13,615 ) (13,615 ) (13,615 ) (13,615 ) Total tangible assets - non-GAAP $ 17,365,013 $ 18,623,151 $ 17,338,028 $ 16,435,563 $ 16,434,967 Tangible common equity to total tangible assets - non-GAAP 9.84 % 8.89 % 9.25 % 9.47 % 9.48 % Three MonthsEnded June 30,2025 Three MonthsEnded March31, 2025 Three MonthsEnded June 30,2024 Six MonthsEnded June 30,2025 Six MonthsEnded June 30,2024 Net income - GAAP $ 61,424 $ 63,224 $ 52,136 $ 124,648 $ 102,162 Adjustments: FDIC special assessment - - - - 1,799 Legal matter accrual reversal (2,276 ) - - (2,276 ) - Loss on marketable securities 8,563 - - 8,563 - Tax on adjustments (1,578 ) - - (1,578 ) (452 ) Adjusted net income - non-GAAP $ 66,133 $ 63,224 $ 52,136 $ 129,357 $ 103,509 Net income available to common stockholders - GAAP $ 61,393 $ 63,224 $ 52,105 $ 124,617 $ 102,131 Adjustments: FDIC special assessment - - - - 1,799 Legal matter accrual reversal (2,276 ) - - (2,276 ) - Loss on marketable securities 8,563 - - 8,563 - Tax on adjustments (1,578 ) - - (1,578 ) (452 ) Adjusted net income available to common stockholders - non-GAAP $ 66,102 $ 63,224 $ 52,105 $ 129,326 $ 103,478 Diluted earnings per share - GAAP $ 1.12 $ 1.16 $ 0.95 $ 2.28 $ 1.87 Adjustments: FDIC special assessment - - - - 0.03 Legal matter accrual reversal (0.04 ) - - (0.05 ) - Loss on marketable securities 0.16 - - 0.16 - Tax on adjustments (0.03 ) - - (0.03 ) (0.01 ) Adjusted diluted earnings per share - non-GAAP $ 1.21 $ 1.16 $ 0.95 $ 2.36 $ 1.89 Net interest income, on a fully taxable-equivalent basis $ 131,777 $ 255,394 Adjustments: Legal matter accrual reversal (2,276 ) (2,276 ) Tax on adjustments 571 571 Adjusted net interest income, on a fully taxable-equivalent basis $ 130,072 $ 253,689 Net interest margin-GAAP 3.10 % 3.01 % Average earning assets 17,076,353 17,132,710 Adjusted net interest margin-non-GAAP 3.06 % 2.99 % Return on average assets - GAAP 1.40 % 1.45 % 1.34 % 1.42 % 1.30 % Net income available to common stockholders - GAAP $ 61,393 $ 63,224 $ 52,105 $ 124,617 $ 102,131 Adjustments: FDIC special assessment - - - - 1,799 Legal matter accrual reversal (2,276 ) - - (2,276 ) - Loss on marketable securities 8,563 - - 8,563 - Tax on adjustments (1,578 ) - - (1,578 ) (452 ) Adjusted net income available to common stockholders - non-GAAP $ 66,102 $ 63,224 $ 52,105 $ 129,326 $ 103,478 Average assets - GAAP $ 17,626,503 $ 17,710,148 $ 15,697,538 $ 17,668,094 $ 15,827,894 Adjusted return on average assets - non-GAAP 1.50 % 1.45 % 1.34 % 1.48 % 1.31 % Return on average common stockholders' equity - GAAP 14.56 % 15.63 % 14.08 % 15.08 % 13.96 % Net income available to common stockholders - GAAP $ 61,393 $ 63,224 $ 52,105 $ 124,617 $ 102,131 Adjustments: FDIC special assessment - - - - 1,799 Legal matter accrual reversal (2,276 ) - - (2,276 ) - Loss on marketable securities 8,563 - - 8,563 - Tax on adjustments (1,578 ) - - (1,578 ) (452 ) Adjusted net income available to common stockholders - non-GAAP $ 66,102 $ 63,224 $ 52,105 $ 129,326 $ 103,478 Average common stockholders' equity - GAAP $ 1,690,855 $ 1,640,949 $ 1,488,429 $ 1,666,039 $ 1,471,048 Adjusted return on average common stockholders' equity non-GAAP 15.68 % 15.63 % 14.08 % 15.65 % 14.15 % Efficiency ratio 33.46 % 34.97 % 37.31 % 34.22 % 39.42 % Net interest income - GAAP $ 131,687 $ 123,553 $ 105,875 $ 255,240 $ 208,370 Adjustments: Legal matter accrual reversal (2,276 ) - - (2,276 ) - Adjusted net interest income - non-GAAP $ 129,411 $ 123,553 $ 105,875 $ 252,964 $ 208,370 Total non-interest income - GAAP 421 8,277 8,891 8,698 17,704 Adjustments: Loss on marketable securities 8,563 - - 8,563 - Adjusted non-interest income - non-GAAP $ 8,984 $ 8,277 $ 8,891 $ 17,261 $ 17,704 Adjusted net interest income and non-interest income - non-GAAP 138,395 131,830 114,766 270,225 226,074 Non-interest expense - GAAP $ 44,204 $ 46,107 $ 42,818 $ 90,311 $ 89,121 Adjustments: FDIC special assessment - - - - 1,799 Adjusted non-interest expense - non-GAAP $ 44,204 $ 46,107 $ 42,818 $ 90,311 $ 87,322 Adjusted efficiency ratio - non-GAAP 31.94 % 34.97 % 37.31 % 33.42 % 38.63 % CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands) June 30, 2025 June 30, 2024 % Change ASSETS Cash and due from banks $ 140,659 $ 135,711 4 % Interest-bearing balances due from depository institutions 1,236,485 1,129,922 9 % Federal funds sold and securities purchased with agreement to resell 333,760 11,132 2,898 % Cash and cash equivalents 1,710,904 1,276,765 34 % Available for sale debt securities, at fair value 1,227,851 1,174,386 5 % Held to maturity debt securities (fair value of $639,455 and $785,270, respectively) 686,652 767,255 (11 )% Restricted equity securities 12,156 11,300 8 % Mortgage loans held for sale 22,131 11,174 98 % Loans 13,232,560 12,332,780 7 % Less allowance for credit losses (169,959 ) (158,092 ) 8 % Loans, net 13,062,601 12,174,688 7 % Premises and equipment, net 59,993 59,200 1 % Goodwill 13,615 13,615 - % Other assets 582,725 561,429 4 % Total assets $ 17,378,628 $ 16,049,812 8 % LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest-bearing demand $ 2,632,058 $ 2,475,415 6 % Interest-bearing 11,230,261 10,783,977 4 % Total deposits 13,862,319 13,259,392 5 % Federal funds purchased 1,599,135 1,097,154 46 % Other borrowings 64,747 64,739 - % Other liabilities 130,644 117,951 11 % Total liabilities 15,656,845 14,539,236 8 % Stockholders' equity: Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at June 30, 2025 and June 30, 2024 - - - % Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,618,545 shares issued and outstanding at June 30, 2025, and 54,521,479 shares issued and outstanding at June 30, 2024 54 54 - % Additional paid-in capital 236,716 234,495 1 % Retained earnings 1,500,767 1,322,048 14 % Accumulated other comprehensive loss (16,254 ) (46,521 ) (65 )% Total stockholders' equity attributable to ServisFirst Bancshares, Inc. 1,721,283 1,510,076 14 % Noncontrolling interest 500 500 - % Total stockholders' equity 1,721,783 1,510,576 14 % Total liabilities and stockholders' equity $ 17,378,628 $ 16,049,812 8 % CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Interest income: Interest and fees on loans $ 206,521 $ 194,300 $ 403,457 $ 381,278 Taxable securities 16,562 16,158 32,585 32,137 Nontaxable securities 5 9 11 18 Federal funds sold and securities purchased with agreement to resell 1,592 538 1,612 1,079 Other interest and dividends 21,955 16,535 50,066 39,738 Total interest income 246,635 227,540 487,731 454,250 Interest expense: Deposits 93,488 104,671 188,233 208,737 Borrowed funds 21,460 16,994 44,258 37,143 Total interest expense 114,948 121,665 232,491 245,880 Net interest income 131,687 105,875 255,240 208,370 Provision for credit losses 11,296 5,353 17,926 9,721 Net interest income after provision for credit losses 120,391 100,522 237,314 198,649 Non-interest income: Service charges on deposit accounts 2,671 2,293 5,229 4,443 Mortgage banking 1,323 1,379 1,936 2,057 Credit card income 2,119 2,333 4,087 4,488 Securities losses (8,563 ) - (8,563 ) - Bank-owned life insurance income 2,126 2,058 4,263 5,289 Other operating income 745 828 1,746 1,427 Total non-interest income 421 8,891 8,698 17,704 Non-interest expense: Salaries and employee benefits 22,576 24,213 45,455 47,199 Equipment and occupancy expense 3,523 3,567 7,245 7,124 Third party processing and other services 8,005 7,465 15,743 14,631 Professional services 1,904 1,741 3,837 3,205 FDIC and other regulatory assessments 2,753 2,202 5,607 6,107 Other real estate owned expense 27 7 60 37 Other operating expense 5,416 3,623 12,364 10,818 Total non-interest expense 44,204 42,818 90,311 89,121 Income before income tax 76,608 66,595 155,701 127,232 Provision for income tax 15,184 14,459 31,053 25,070 Net income 61,424 52,136 124,648 102,162 Dividends on preferred stock 31 31 31 31 Net income available to common stockholders $ 61,393 $ 52,105 $ 124,617 $ 102,131 Basic earnings per common share $ 1.12 $ 0.96 $ 2.28 $ 1.87 Diluted earnings per common share $ 1.12 $ 0.95 $ 2.28 $ 1.87 LOANS BY TYPE (UNAUDITED) (In thousands) 2nd quarter 2025 1st quarter 2025 4th quarter 2024 3rd quarter 2024 2nd quarter 2024 Commercial, financial and agricultural $ 2,952,028 $ 2,924,533 $ 2,869,894 $ 2,793,989 $ 2,935,577 Real estate - construction 1,735,405 1,599,410 1,489,306 1,439,648 1,510,677 Real estate - mortgage: Owner-occupied commercial 2,557,711 2,543,819 2,547,143 2,441,687 2,399,644 1-4 family mortgage 1,561,461 1,494,189 1,444,623 1,409,981 1,350,428 Non-owner occupied commercial 4,338,697 4,259,566 4,181,243 4,190,935 4,072,007 Subtotal: Real estate - mortgage 8,457,869 8,297,574 8,173,009 8,042,603 7,822,079 Consumer 87,258 65,314 73,627 61,986 64,447 Total loans $ 13,232,560 $ 12,886,831 $ 12,605,836 $ 12,338,226 $ 12,332,780 SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED) (Dollars in thousands) 2nd quarter 2025 1st quarter 2025 4th quarter 2024 3rd quarter 2024 2nd quarter 2024 Allowance for credit losses: Beginning balance $ 165,034 $ 164,458 $ 160,755 $ 158,092 $ 155,892 Loans charged off: Commercial, financial and agricultural 6,849 2,415 3,899 3,020 3,355 Real estate - construction - 46 - - - Real estate - mortgage 581 3,571 560 252 119 Consumer 72 60 211 155 108 Total charge offs 7,502 6,092 4,670 3,427 3,582 Recoveries: Commercial, financial and agricultural 959 171 1,801 616 406 Real estate - construction - - - - 8 Real estate - mortgage 1 - 23 2 - Consumer 58 27 151 37 15 Total recoveries 1,018 198 1,975 655 429 Net charge-offs 6,484 5,894 2,695 2,772 3,153 Provision for loan losses 11,409 6,470 6,398 5,435 5,353 Ending balance $ 169,959 $ 165,034 $ 164,458 $ 160,755 $ 158,092 Allowance for credit losses to total loans 1.28 % 1.28 % 1.30 % 1.30 % 1.28 % Allowance for credit losses to total average loans 1.31 % 1.30 % 1.32 % 1.30 % 1.31 % Net charge-offs to total average loans 0.20 % 0.19 % 0.09 % 0.09 % 0.10 % Provision for credit losses to total average loans 0.35 % 0.21 % 0.21 % 0.17 % 0.18 % Nonperforming assets: Nonaccrual loans $ 68,619 $ 73,793 $ 39,501 $ 37,075 $ 33,454 Loans 90+ days past due and accruing 3,549 111 2,965 2,093 1,482 Other real estate owned and repossessed assets 311 756 2,531 2,723 1,458 Total $ 72,479 $ 74,660 $ 44,997 $ 41,891 $ 36,394 Nonperforming loans to total loans 0.55 % 0.57 % 0.34 % 0.32 % 0.28 % Nonperforming assets to total assets 0.42 % 0.40 % 0.26 % 0.25 % 0.23 % Nonperforming assets to earning assets 0.43 % 0.41 % 0.26 % 0.26 % 0.23 % Allowance for credit losses to nonaccrual loans 247.69 % 223.64 % 416.34 % 433.59 % 472.57 % CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) 2nd Quarter2025 1st Quarter2025 4th Quarter2024 3rd Quarter2024 2nd Quarter2024 Interest income: Interest and fees on loans $ 206,521 $ 196,936 $ 200,875 $ 205,952 $ 194,300 Taxable securities 16,562 16,023 16,905 17,493 16,158 Nontaxable securities 5 6 6 7 9 Federal funds sold with agreement to 1,592 20 18 31 538 Other interest and dividends 21,955 28,111 26,088 24,496 16,535 Total interest income 246,635 241,096 243,892 247,979 227,540 Interest expense: Deposits 93,488 94,745 98,702 113,211 104,671 Borrowed funds 21,460 22,798 22,022 19,647 16,994 Total interest expense 114,948 117,543 120,724 132,858 121,665 Net interest income 131,687 123,553 123,168 115,121 105,875 Provision for credit losses 11,296 6,630 5,704 5,659 5,353 Net interest income after provision for credit losses 120,391 116,923 117,464 109,462 100,522 Non-interest income: Service charges on deposit accounts 2,671 2,558 2,650 2,341 2,293 Mortgage banking 1,323 613 1,513 1,352 1,379 Credit card income 2,119 1,968 1,867 1,925 2,333 Securities losses (8,563 ) - - - - Bank-owned life insurance income 2,126 2,137 2,131 2,113 2,058 Other operating income 745 1,001 642 818 828 Total non-interest income 421 8,277 8,803 8,549 8,891 Non-interest expense: Salaries and employee benefits 22,576 22,879 24,062 25,057 24,213 Equipment and occupancy expense 3,523 3,722 3,600 3,795 3,567 Third party processing and other services 8,005 7,738 8,515 8,035 7,465 Professional services 1,904 1,933 1,981 1,715 1,741 FDIC and other regulatory assessments 2,753 2,854 2,225 2,355 2,202 Other real estate owned expense 27 33 58 103 7 Other operating expense 5,416 6,948 6,455 4,572 3,623 Total non-interest expense 44,204 46,107 46,896 45,632 42,818 Income before income tax 76,608 79,093 79,371 72,379 66,595 Provision for income tax 15,184 15,869 14,198 12,472 14,459 Net income 61,424 63,224 65,173 59,907 52,136 Dividends on preferred stock 31 - 31 - 31 Net income available to common stockholders $ 61,393 $ 63,224 $ 65,142 $ 59,907 $ 52,105 Basic earnings per common share $ 1.12 $ 1.16 $ 1.19 $ 1.10 $ 0.96 Diluted earnings per common share $ 1.12 $ 1.16 $ 1.19 $ 1.10 $ 0.95 AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) ON A FULLY TAXABLE-EQUIVALENT BASIS (Dollars in thousands) 2nd Quarter 2025 1st Quarter 2025 4th Quarter 2024 3rd Quarter 2024 2nd 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 $ 12,979,759 6.37 % $ 12,683,077 6.29 % $ 12,414,065 6.43 % $ 12,351,073 6.63 % $ 12,045,743 6.48 % Tax-exempt (2) 30,346 5.51 25,044 4.94 13,198 1.57 15,584 1.86 17,230 2.08 Total loans, net of unearned income 13,010,105 6.37 12,708,121 6.28 12,427,263 6.43 12,366,657 6.62 12,062,973 6.48 Mortgage loans held for sale 11,739 5.23 6,731 4.76 9,642 5.36 10,674 3.80 6,761 6.13 Debt securities: Taxable 1,965,089 3.37 1,934,739 3.31 1,932,547 3.49 1,955,632 3.57 1,936,818 3.33 Tax-exempt (2) 492 4.88 589 5.43 606 5.28 815 4.42 1,209 3.64 Total securities (3) 1,965,581 3.37 1,935,328 3.31 1,933,153 3.49 1,956,447 3.57 1,938,027 3.33 Federal funds sold and securities purchased with agreement to resell 124,303 5.14 1,670 4.86 1,596 4.49 2,106 5.86 38,475 5.62 Restricted equity securities 12,146 6.64 11,461 7.43 11,290 6.80 11,290 7.36 11,290 7.16 Interest-bearing balances with banks 1,952,479 4.47 2,526,382 4.48 2,143,474 4.81 1,775,192 5.46 1,183,482 5.57 Total interest-earning assets $ 17,076,353 5.80 % $ 17,189,693 5.69 % $ 16,526,418 5.87 % $ 16,122,366 6.12 % $ 15,241,008 6.01 % Non-interest-earning assets: Cash and due from banks 109,506 108,540 103,494 103,539 96,646 Net premises and equipment 59,944 59,633 60,708 60,607 59,653 Allowance for credit losses, accrued interest and other assets 380,700 352,282 346,763 340,621 300,521 Total assets $ 17,626,503 $ 17,710,148 $ 17,037,383 $ 16,627,133 $ 15,697,828 Interest-bearing liabilities: Interest-bearing deposits: Checking (4) $ 2,222,000 1.78 % $ 2,461,900 2.38 % $ 2,353,439 2.61 % $ 2,318,384 2.97 % $ 2,227,527 2.85 % Savings 101,506 1.63 101,996 1.61 102,858 1.52 102,627 1.76 105,955 1.71 Money market 7,616,747 3.67 7,363,163 3.61 7,067,265 3.86 7,321,503 4.45 6,810,799 4.46 Time deposits 1,321,404 4.09 1,361,558 4.24 1,286,754 4.45 1,197,650 4.52 1,157,528 4.47 Total interest-bearing deposits 11,261,657 3.33 11,288,617 3.40 10,810,316 3.63 10,940,164 4.12 10,301,809 4.09 Federal funds purchased 1,855,860 4.49 1,994,766 4.50 1,767,749 4.80 1,391,118 5.42 1,193,190 5.50 Other borrowings 64,750 4.26 64,750 4.30 64,738 4.22 64,738 4.22 64,738 4.27 Total interest-bearing liabilities $ 13,182,267 3.50 % $ 13,348,133 3.57 % $ 12,642,803 3.80 % $ 12,396,020 4.26 % $ 11,559,737 4.23 % Non-interest-bearing liabilities: Non-interest-bearing checking 2,633,552 2,600,775 2,672,875 2,575,575 2,560,245 Other liabilities 119,829 120,291 130,457 122,455 89,418 Stockholders' equity 1,716,232 1,670,402 1,624,084 1,574,902 1,536,013 Accumulated other comprehensive loss (25,377 ) (29,453 ) (32,836 ) (41,819 ) (47,584 ) Total liabilities and stockholders' equity $ 17,626,503 $ 17,710,148 $ 17,037,383 $ 16,627,133 $ 15,697,828 Net interest spread 2.30 % 2.12 % 2.07 % 1.86 % 1.78 % Net interest margin 3.10 % 2.92 % 2.96 % 2.84 % 2.79 % (1) Average loans include nonaccrual loans in all periods. Loan fees of $4,430, $3,764, $4,460, $3,949, and $3,317 are included in interest income in the second quarter of 2025, first quarter of 2025, fourth quarter of 2024, third quarter of 2024, and second 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 $(36,381), $(41,970), $(46,652), $(58,802), and $(66,663) for the second quarter of 2025, first quarter of 2025, fourth quarter of 2024, third quarter of 2024, and second 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. Please see "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures." 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