The latest financial results from ServisFirst Bancshares, Inc. reveal a banking sector that’s not just surviving but thriving in the Southeast’s competitive mortgage landscape. With net income reaching $65.6 million in the third quarter of 2025—a significant jump from $61.4 million in Q2 and $59.9 million in Q3 2024—this Birmingham-based institution demonstrates the resilience of regional banks in an evolving economic environment. For homebuyers, this translates to potentially more stable lending options as ServisFirst continues its expansion across Alabama, Florida, Georgia, the Carolinas, Tennessee, and Virginia. The bank’s consistent growth in both loans and deposits suggests a robust mortgage market where qualified borrowers may find more favorable terms than they would with larger, more impersonal financial institutions.
Perhaps most revealing for mortgage shoppers is ServisFirst’s net interest margin expansion, which improved to 3.09% in Q3 2025 from 2.84% in the same period last year. This widening spread between what banks earn on loans and pay on deposits indicates improved profitability that could translate to better mortgage products. Homebuyers should note that while loan yields have decreased slightly to 6.34% from 6.62% a year prior, they remain competitive compared to national averages. The bank’s “pricing discipline” on both loans and deposits, as noted by CFO David Sparacio, suggests they’re carefully balancing competitive rates with sustainable profitability—a good sign for consumers seeking both affordability and long-term stability in their mortgage choices.
The 6.8% annualized growth in average loans to $13.21 billion paints a picture of a healthy lending environment where credit remains accessible. This expansion, particularly in the Southeast region where ServisFirst operates, indicates that the local housing market continues to show strength despite broader economic uncertainties. For potential homebuyers, this suggests that mortgage financing remains available for qualified applicants in these growing markets. The bank’s ability to grow its loan portfolio while maintaining profitability demonstrates their confidence in the underlying real estate values in their service area—a confidence that prudent homebuyers should share when considering homeownership in these regions.
Deposit growth of 6.8% annualized to $14.13 billion provides important context for mortgage seekers. When banks have a strong deposit base, they’re less reliant on expensive wholesale funding, which can translate to lower mortgage rates for consumers. ServisFirst’s deposit growth outpaces loan growth slightly, giving them a comfortable liquidity position that enables continued mortgage lending. This balance between deposits and loans is crucial for maintaining stable mortgage rates in the coming quarters. Homebuyers monitoring interest rates should take note that banks with strong deposit bases like ServisFirst are better positioned to offer competitive rates even as the broader interest rate environment fluctuates.
The non-performing assets ratio increased to 0.96% in Q3 2025 from 0.25% in Q3 2024, with the bank specifically citing “a large, real-estate secured relationship” as the driver. This single data point carries significant implications for mortgage underwriting standards. While the rise in non-performing assets might suggest some loosening in lending criteria, the fact that it’s attributed to a specific relationship rather than a broad trend indicates that overall mortgage quality likely remains strong. For homebuyers, this suggests that while mortgage approval standards may have become slightly more flexible compared to the ultra-conservative environment of 2024, banks are still exercising prudent risk management—particularly with real estate secured loans.
p>The bank’s mortgage banking revenue increased by 37.9% year-over-year to $1.9 million, showing that ServisFirst is actively growing this important segment of their business. This focus on mortgage services suggests they’re competing more aggressively for homebuyers’ business, which could translate to better rates, lower fees, or improved service for consumers. The significant quarterly increase of 40.9% in mortgage banking revenue indicates momentum that’s likely to continue into the next quarter. Homebuyers should view this as a positive sign of competition in the mortgage market, as banks expand their mortgage operations to capture a larger share of this lucrative business.
p>Bank-owned life insurance (BOLI) income grew by 13.8% to $2.4 million, with the bank purchasing an additional $125 million in BOLI contracts during the quarter. While this might seem unrelated to mortgages, BOLI represents an important part of a bank’s overall funding strategy. By investing in life insurance policies on their employees, banks create an additional funding source that can be used to support lending activities—including mortgages. This strategic investment suggests ServisFirst is positioning itself for long-term mortgage lending capacity, which is good news for homebuyers who may need financing in the coming years as the bank continues to build its mortgage infrastructure.
p>The efficiency ratio of 35.22% in Q3 2025, compared to 36.90% in Q3 2024, demonstrates improving operational efficiency—a trend that benefits mortgage customers. When banks become more efficient, they can pass those savings along to consumers in the form of lower rates or reduced fees. ServisFirst’s ability to maintain this efficiency while growing their loan and deposit bases shows they’re achieving economies of scale that should positively impact their mortgage offerings. Homebuyers should note that banks with improving efficiency ratios are often better positioned to offer competitive mortgage products as they optimize their operations and reduce unnecessary costs.
p>The allowance for credit losses as a percentage of total loans remained stable at 1.28% in both Q3 2025 and Q2 2025, compared to 1.30% in Q3 2024. This consistency in loan loss provisions suggests that ServisFirst is maintaining prudent underwriting standards while continuing to grow their mortgage portfolio. For homebuyers, this balance indicates that the bank isn’t becoming overly aggressive in their lending practices while still remaining competitive in the market. The provision for credit losses of $9.3 million in Q3 2025, though higher than the $5.4 million in Q3 2024, reflects the bank’s proactive approach to risk management—particularly important in today’s economic environment where unexpected challenges could impact borrowers’ ability to repay.
p>Loan yields decreased to 6.34% in Q3 2025 from 6.62% in Q3 2024, while average interest-bearing deposit rates also decreased to 3.41% from 4.12% over the same period. This narrowing of the spread between loan and deposit rates suggests that while mortgage rates may have decreased slightly, deposit rates have fallen even more—which could allow banks to maintain profitability even as they offer competitive mortgage rates. Homebuyers monitoring the market should interpret this as a sign that mortgage rates may remain relatively stable in the near term, as banks balance their need for profitability with the competitive pressure to offer attractive lending options.
p>The bank’s expansion into new markets and the profitability of their “newer offices” as noted by CEO Tom Broughton indicates geographic diversification that benefits mortgage shoppers. As ServisFirst establishes a stronger presence in additional states, they bring competition to local markets that may have been dominated by larger national banks. This increased competition typically leads to better mortgage products, including potentially lower rates, more flexible terms, and improved customer service. Homebuyers in ServisFirst’s expanding footprint should view this as an opportunity to explore alternatives to larger financial institutions that may offer more personalized service and better understanding of local housing markets.
p>For homebuyers navigating today’s mortgage landscape, ServisFirst’s third quarter results offer several actionable insights. First, the Southeast housing market appears stable and supported by regional banks that are actively growing their mortgage businesses. Second, mortgage rates may remain relatively competitive as banks balance deposit costs with lending rates. Third, approval standards may have become slightly more flexible while still maintaining prudent risk management. Finally, regional banks like ServisFirst are increasingly competitive alternatives to larger institutions, offering personalized service combined with competitive terms. The most prudent approach for today’s homebuyers is to compare offers from both regional and national banks, as regional players like ServisFirst are demonstrating their ability to offer attractive mortgage products while maintaining the financial stability needed for long-term customer relationships.
