BIRMINGHAM, Ala., April 21, 2025--(BUSINESS WIRE)--ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights:

Diluted earnings per share of $1.16 for the quarter, up 26.1% from the first quarter of 2024. Deposits grew by $886 million, or 26% annualized, during the quarter. Loans grew by $281 million, or 9% annualized, during the quarter. Book value per share of $30.56, up 12.9% from the first quarter of 2024 and 12.7% annualized, from the fourth quarter of 2024. Liquidity remains very strong with $3.3 billion in cash on hand, 18% of our total assets, and no FHLB advances or brokered deposits. Consolidated common equity tier 1 capital to risk-weighted assets increased from 11.07% to 11.48% year-over-year. Return on average common stockholder’s equity increased from 13.82% to 15.63% year-over-year.

Tom Broughton, Chairman, President, and CEO, said, "With our strong balance sheet, we are looking at opportunities for new and expanded customer relationships and we continue to look at new market expansions in the Southeast."

David Sparacio, CFO, said, "This year is off to a great start with 9% annualized loan growth, non-interest expense being contained, and fixed rate loans repricing for the rest of the year. We realized 31% year-over-year growth in pre-provision net revenue, thanks to continued focus on controlling our expenses and we are continuing to see strength in our capital ratios."

* 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 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

March 31, 2025  Period Ending

December 31, 2024  % Change From

Period Ending

December 31,

2024 to Period

Ending

March 31, 2025  Period Ending

March 31, 2024  % Change From

Period Ending

March 31,

2024 to Period

Ending

March 31, 2025 QUARTERLY OPERATING RESULTS  Net Income  $ 63,224   $ 65,173   (3.0 )%  $ 50,026   26.4 % Net Income Available to Common Stockholders  $ 63,224   $ 65,142   (2.9 )%  $ 50,026   26.4 % Diluted Earnings Per Share  $ 1.16   $ 1.19   (2.5 )%  $ 0.92   26.1 % Return on Average Assets   1.45 %   1.52 %     1.26 %  Return on Average Common Stockholders' Equity   15.63 %   16.29 %     13.82 %  Average Diluted Shares Outstanding   54,656,915    54,649,808      54,595,384   Adjusted Net Income, net of tax*  $ 63,224   $ 65,173   (3.0 )%  $ 51,373   23.1 % Adjusted Net Income Available to Common Stockholders, net of tax*  $ 63,224   $ 65,142   (2.9 )%  $ 51,373   23.1 % Adjusted Diluted Earnings Per Share, net of tax*  $ 1.16   $ 1.19   (2.5 )%  $ 0.94   23.4 % Adjusted Return on Average Assets, net of tax*   1.45 %   1.52 %     1.29 %  Adjusted Return on Average Common Stockholders' Equity, net of tax*   15.63 %   16.29 %     14.19 %    BALANCE SHEET  Total Assets  $ 18,636,766   $ 17,351,643   7.4 %  $ 15,721,630   18.5 % Loans   12,886,831    12,605,836   2.2 %   11,880,696   8.5 % Non-interest-bearing Demand Deposits   2,647,577    2,619,687   1.1 %   2,627,639   0.8 % Total Deposits   14,429,061    13,543,459   6.5 %   12,751,448   13.2 % Stockholders' Equity   1,668,900    1,616,772   3.2 %   1,476,036   13.1 %

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $63.2 million for the quarter ended March 31, 2025, compared to net income of $65.2 million and net income available to common stockholders of $65.1 million for the fourth quarter of 2024 and net income and net income available to common stockholders of $50.0 million for the first quarter of 2024. Basic and diluted earnings per common share were both $1.16 in the first quarter of 2025, compared to $1.19 for both in the fourth quarter of 2024 and $0.92 for both in the first quarter of 2024.

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Annualized return on average assets was 1.45% and annualized return on average common stockholders’ equity was 15.63% for the first quarter of 2025, compared to 1.26% and 13.82%, respectively, for the first quarter of 2024.

Net interest income was $123.6 million for the first quarter of 2025, compared to $123.2 million for the fourth quarter of 2024 and $102.5 million for the first quarter of 2024. The net interest margin in the first quarter of 2025 was 2.92% compared to 2.96% in the fourth quarter of 2024 and 2.66% in the first quarter of 2024. Loan yields were 6.28% during the first quarter of 2025 compared to 6.43% during the fourth quarter of 2024 and 6.40% during the first quarter of 2024. Investment yields were 3.31% during the first quarter of 2025 compared to 3.49% during the fourth quarter of 2024 and 3.16% during the first quarter of 2024. Average interest-bearing deposit rates were 3.40% during the first quarter of 2025, compared to 3.63% during the fourth quarter of 2024 and 4.04% during the first quarter of 2024. Average federal funds purchased rates were 4.50% during first quarter of 2025, compared to 4.80% during the fourth quarter of 2024 and 5.50% during the first quarter of 2024.

Average loans for the first quarter of 2025 were $12.71 billion, an increase of $280.9 million, or 9.2% annualized, from average loans of $12.43 billion for the fourth quarter of 2024, and an increase of $967.1 million, or 8.2%, from average loans of $11.74 billion for the first quarter of 2024. Ending total loans for the first quarter of 2025 were $12.89 billion, an increase of $281.0 million, or 9.0% annualized, from $12.61 billion for the fourth quarter of 2024, and an increase of $1.01 billion, or 8.5%, from $11.88 billion for the first quarter of 2024.

Average total deposits for the first quarter of 2025 were $13.89 billion, an increase of $406.2 million, or 12.2% annualized, from average total deposits of $13.48 billion for the fourth quarter of 2024, and an increase of $966.4 million, or 7.5%, from average total deposits of $12.92 billion for the first quarter of 2024. Ending total deposits for the first quarter of 2025 were $14.43 billion, an increase of $885.6 million, or 26.3% annualized, from $13.54 billion for the fourth quarter of 2024, and an increase of $1.68 billion, or 13.2%, from $12.75 billion for the first quarter of 2024. The increase in total deposits was primarily due to organic growth across the majority of our markets.

Non-performing assets to total assets were 0.40% for the first quarter of 2025, compared to 0.26% for the fourth quarter of 2024 and 0.22% for the first quarter of 2024. The majority of the year-over-year increase in non-performing assets is attributable to two relationships, both of which are secured by real estate. Annualized net charge-offs to average loans were 0.19% for the first quarter of 2025, compared to 0.09% for the fourth quarter of 2024 and 0.06% for the first quarter of 2024. The increase in net charge-offs was primarily attributable to individually evaluated loans that were previously impaired in the fourth quarter of 2024. In the first quarter of 2025, management concluded that partial or full charge-offs were warranted for these impaired loans. The allowance for credit losses as a percentage of total loans at March 31, 2025, December 31, 2024, and March 31, 2024, was 1.28%, 1.30%, and 1.31%, respectively. We recorded a $6.5 million provision for loan losses in the first quarter of 2025 compared to $6.4 million in the fourth quarter of 2024, and $4.4 million in the first quarter of 2024. Approximately $2.7 million of the allowance for loan losses was related to the potential impact of Hurricane Helene and Milton recorded through the provision for loan losses during the third quarter of 2024. As of March 31, 2025, management considers the storms’ credit impact to have been fully assessed and has decided to release this allowance.

Non-interest income decreased $631,000, or 7.1%, to $8.3 million for the first quarter of 2025 from $8.9 million in the first quarter of 2024, and decreased $526,000, or 6.0%, on a linked quarter basis. Service charges on deposit accounts increased $408,000, or 19.0%, to $2.6 million for the first quarter of 2025 from $2.2 million in the first quarter of 2024, and decreased $92,000, or 3.5%, on a linked quarter basis. Mortgage banking revenue decreased $65,000, or 9.6%, to $613,000 for the first quarter of 2025 from $678,000 in the first quarter of 2024, and decreased $900,000, or 59.5%, on a linked quarter basis. The decrease on a linked quarter basis was primarily due to seasonal production fluctuations and a slightly higher proportion of production from lower-margin portfolio loans during the first quarter of 2025. Net credit card income decreased $187,000, or 8.7%, to $2.0 million for the first quarter of 2025 from $2.2 million in the first quarter of 2024, and increased $101,000, or 5.4%, on a linked quarter basis. Bank-owned life insurance ("BOLI") income decreased $1.1 million, or 33.9%, to $2.1 million for the first quarter of 2025 from $3.2 million in the first quarter of 2024, and increased $6,000, or 0.3%, on a linked quarter basis. The decrease year-over year was due to the recognition of $1.2 million of income attributed to the death benefit related to a former employee in our BOLI program in the prior year. Other operating income increased $307,000, or 44.2%, to $1.0 million for the first quarter of 2025 from $694,000 in the first quarter of 2024, and increased $359,000, or 55.9%, on a linked quarter basis.

Non-interest expense decreased $124,000, or 0.3%, to $46.1 million for the first quarter of 2025 from $46.2 million in the first quarter of 2024, and decreased $789,000, or 1.7%, on a linked quarter basis. Salary and benefit expense decreased $107,000, or 0.5%, to $22.9 million for the first quarter of 2025 from $23.0 million in the first quarter of 2024, and decreased $1.2 million, or 4.9%, on a linked quarter basis. The number of full-time equivalent ("FTE") employees increased by 31, or 5.12%, to 636 at March 31, 2025 compared to 605 at March 31, 2024, and increased by 6, or 1%, from the end of the fourth quarter of 2024. Equipment and occupancy expense increased $165,000, or 4.6%, to $3.7 million for the first quarter of 2025 from $3.6 million in the first quarter of 2024, and increased $122,000, or 3.4%, on a linked quarter basis. Third party processing and other services expense increased $572,000, or 8.0%, to $7.7 million for the first quarter of 2025 from $7.2 million in the first quarter of 2024, and decreased $777,000, or 9.1%, on a linked quarter basis. Professional services expense increased $469,000, or 32.0%, to $1.9 million for the first quarter of 2025 from $1.5 million in the first quarter of 2024, and decreased $48,000, or 2.4%, on a linked quarter basis. FDIC and other regulatory assessments decreased $1.1 million, or 26.9%, to $2.9 million for the first quarter of 2025 from $3.9 million in the first quarter of 2024, and increased $629,000, or 28.3%, on a linked quarter basis. In the first quarter of 2024, the FDIC implemented a special assessment adjustment to recapitalize the Deposit Insurance Fund, see "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for more discussion. Other operating expenses decreased $175,000, or 2.5%, to $6.9 million for the first quarter of 2025 from $7.1 million in the first quarter of 2024, and increased $493,000, or 7.6%, on a linked quarter basis. The efficiency ratio was 34.97% during the first quarter of 2025 compared to 43.30% during the first quarter of 2024 and 35.54% during the fourth quarter of 2024.

Income tax expense increased $5.3 million, or 49.6%, to $15.9 million in the first quarter of 2025, compared to $10.6 million in the first quarter of 2024. Our effective tax rate was 20.06% for the first quarter of 2025 compared to 17.50% for the first 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 first quarters of 2025 and 2024 of $470,000 and $204,000, 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 www.sec.gov or at www.servisfirstbancshares.com.

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 www.servisfirstbancshares.com or by calling (205) 949-0302.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)  (In thousands except share and per share data)  1st Quarter 2025  4th Quarter 2024  3rd Quarter 2024  2nd Quarter 2024  1st Quarter 2024 CONSOLIDATED STATEMENT OF INCOME  Interest income  $ 241,096   $ 243,892   $ 247,979   $ 227,540   $ 226,710  Interest expense   117,543    120,724    132,858    121,665    124,215  Net interest income   123,553    123,168    115,121    105,875    102,495  Provision for credit losses   6,630    5,704    5,659    5,353    4,535  Net interest income after provision for credit losses   116,923    117,464    109,462    100,522    97,960  Non-interest income   8,277    8,803    8,549    8,891    8,908  Non-interest expense   46,107    46,896    45,632    42,818    46,231  Income before income tax   79,093    79,371    72,379    66,595    60,637  Provision for income tax   15,869    14,198    12,472    14,459    10,611  Net income   63,224    65,173    59,907    52,136    50,026  Preferred stock dividends   -    31    -    31    -  Net income available to common stockholders  $ 63,224   $ 65,142   $ 59,907   $ 52,105   $ 50,026  Earnings per share - basic  $ 1.16   $ 1.19   $ 1.10   $ 0.96   $ 0.92  Earnings per share - diluted  $ 1.16   $ 1.19   $ 1.10   $ 0.95   $ 0.92  Average diluted shares outstanding   54,656,915    54,649,808    54,642,582    54,608,679    54,595,384   CONSOLIDATED BALANCE SHEET DATA  Total assets  $ 18,636,766   $ 17,351,643   $ 16,449,178   $ 16,049,812   $ 15,721,630  Loans   12,886,831    12,605,836    12,338,226    12,332,780    11,880,696  Debt securities   1,905,550    1,876,253    1,867,587    1,941,641    1,941,625  Non-interest-bearing demand deposits   2,647,577    2,619,687    2,576,329    2,475,415    2,627,639  Total deposits   14,429,061    13,543,459    13,146,529    13,259,392    12,751,448  Borrowings   64,745    64,743    64,741    64,739    64,737  Stockholders' equity   1,668,900    1,616,772    1,570,269    1,510,576    1,476,036   Shares outstanding   54,601,842    54,569,427    54,551,543    54,521,479    54,507,778  Book value per share  $ 30.56   $ 29.63   $ 28.79   $ 27.71   $ 27.08  Tangible book value per share (1)  $ 30.32   $ 29.38   $ 28.54   $ 27.46   $ 26.83   SELECTED FINANCIAL RATIOS (Annualized)  Net interest margin   2.92 %   2.96 %   2.84 %   2.79 %   2.66 % Return on average assets   1.45 %   1.52 %   1.43 %   1.34 %   1.26 % Return on average common stockholders' equity   15.63 %   16.29 %   15.55 %   14.08 %   13.82 % Efficiency ratio   34.97 %   35.54 %   36.90 %   37.31 %   43.30 % Non-interest expense to average earning assets   1.09 %   1.13 %   1.13 %   1.13 %   1.20 %  CAPITAL RATIOS (2)  Common equity tier 1 capital to risk-weighted assets   11.48 %   11.42 %   11.25 %   10.93 %   11.07 % Tier 1 capital to risk-weighted assets   11.48 %   11.42 %   11.25 %   10.93 %   11.08 % Total capital to risk-weighted assets   12.93 %   12.90 %   12.77 %   12.43 %   12.61 % Tier 1 capital to average assets   9.48 %   9.59 %   9.54 %   9.81 %   9.44 % Tangible common equity to total tangible assets (1)   8.89 %   9.25 %   9.47 %   9.33 %   9.31 %  (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. This expense is unusual, or infrequent, in nature and not part of the noninterest expense run rate. 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 for the quarter ended March 31, 2024 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 March 31,

2025  At December 31,

2024  At September 30,

2024  At June 30,

2024  At March 31,

2024 Book value per share - GAAP $ 30.56   $ 29.63   $ 28.79   $ 27.71   $ 27.08  Total common stockholders' equity - GAAP  1,668,900    1,616,772    1,570,269    1,570,994    1,476,036  Adjustment for Goodwill  (13,615 )   (13,615 )   (13,615 )   (13,615 )   (13,615 ) Tangible common stockholders' equity - non-GAAP $ 1,655,285   $ 1,603,157   $ 1,556,654   $ 1,557,379   $ 1,462,421  Tangible book value per share - non-GAAP $ 30.31   $ 29.38   $ 28.54   $ 27.46   $ 26.83   Stockholders' equity to total assets - GAAP  8.95 %   9.32 %   9.55 %   9.55 %   9.39 % Total assets - GAAP $ 18,636,766   $ 17,351,643   $ 16,449,178   $ 16,448,582   $ 16,048,819  Adjustment for Goodwill  (13,615 )   (13,615 )   (13,615 )   (13,615 )   (13,615 ) Total tangible assets - non-GAAP $ 18,623,151   $ 17,338,028   $ 16,435,563   $ 16,434,967   $ 16,035,204  Tangible common equity to total tangible assets - non-GAAP  8.89 %   9.25 %   9.47 %   9.48 %   9.33 %

Three Months

Ended March 31,

2025  Three Months

Ended March 31,

2024 Net income - GAAP  $ 63,224   $ 50,026  Adjustments:  FDIC special assessment   -    1,799  Tax on adjustments   -    (452 ) Adjusted net income - non-GAAP  $ 63,224   $ 51,373   Net income available to common stockholders - GAAP  $ 63,224   $ 50,026  Adjustments:  FDIC special assessment   -    1,799  Tax on adjustments   -    (452 ) Adjusted net income available to common stockholders - non-GAAP  $ 63,224   $ 51,373   Diluted earnings per share - GAAP  $ 1.16   $ 0.92  Adjustments:  FDIC special assessment   -    0.03  Tax on adjustments   -    (0.01 ) Adjusted diluted earnings per share - non-GAAP  $ 1.16   $ 0.94   Return on average assets - GAAP   1.45 %   1.26 % Net income available to common stockholders - GAAP  $ 63,224   $ 50,026  Adjustments:  FDIC special assessment   -    1,799  Tax on adjustments   -    (452 ) Adjusted net income available to common stockholders - non-GAAP  $ 63,224   $ 51,373  Average assets - GAAP  $ 17,710,148   $ 15,957,579  Adjusted return on average assets - non-GAAP   1.45 %   1.29 %  Return on average common stockholders' equity - GAAP   15.63 %   13.82 % Net income available to common stockholders - GAAP  $ 63,224   $ 50,026  Adjustments:  FDIC special assessment   -    1,799  Tax on adjustments   -    (452 ) Adjusted diluted earnings per share - non-GAAP  $ 63,224   $ 51,373  Average common stockholders' equity - GAAP  $ 1,640,949   $ 1,455,938  Adjusted return on average common stockholders' equity non-GAAP   15.63 %   14.19 %  Efficiency ratio   34.97 %   43.30 % Non-interest expense - GAAP  $ 46,107   $ 45,550  Adjustments:  FDIC special assessment   -    1,799  Adjusted non-interest expense  $ 46,107   $ 43,751  Net interest income plus non-interest income - GAAP  $ 131,830   $ 111,308  Adjusted efficiency ratio - non-GAAP   34.97 %   39.31 %

CONSOLIDATED BALANCE SHEETS (UNAUDITED)  (Dollars in thousands)  March 31,

2025  March 31,

2024  %

Change ASSETS  Cash and due from banks  $ 121,645   $ 78,708   55 % Interest-bearing balances due from depository institutions   3,218,753    1,201,566   168 % Federal funds sold   9,322    170,625   (95 )% Cash and cash equivalents   3,349,720    1,450,899   131 % Available for sale debt securities, at fair value   1,203,837    1,073,929   12 % Held to maturity debt securities (fair value of $639,455 and $785,270, respectively)   701,713    867,696   (19 )% Restricted equity securities   12,156    11,300   8 % Mortgage loans held for sale   11,386    7,592   50 % Loans   12,886,831    11,880,696   8 % Less allowance for credit losses   (165,034 )   (155,892 )  6 % Loans, net   12,721,797    11,724,804   9 % Premises and equipment, net   59,431    59,302   - % Goodwill   13,615    13,615   - % Other assets   563,111    512,493   10 % Total assets  $ 18,636,766   $ 15,721,630   19 % LIABILITIES AND STOCKHOLDERS' EQUITY  Liabilities:  Deposits:  Non-interest-bearing demand  $ 2,647,577   $ 2,627,639   1 % Interest-bearing   11,781,484    10,123,809   16 % Total deposits   14,429,061    12,751,448   13 % Federal funds purchased   2,358,326    1,345,328   75 % Other borrowings   64,745    64,737   - % Other liabilities   115,734    84,081   38 % Total liabilities   16,967,866    14,245,594   19 % Stockholders' equity:  Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at March 31, 2025 and March 31, 2024   -    -   - % Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,601,842 shares issued and outstanding at March 31, 2025, and 54,461,580 shares issued and outstanding at March 31, 2024   54    54   - % Additional paid-in capital   235,840    233,560   1 % Retained earnings   1,457,614    1,288,514   13 % Accumulated other comprehensive loss   (25,108 )   (46,592 )  (46 )% Total stockholders' equity attributable to ServisFirst Bancshares, Inc.   1,668,400    1,475,536   13 % Noncontrolling interest   500    500   - % Total stockholders' equity   1,668,900    1,476,036   13 % Total liabilities and stockholders' equity  $ 18,636,766   $ 15,721,630   19 %

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)  (In thousands except per share data)  Three Months Ended March 31, 2025  2024 Interest income:  Interest and fees on loans  $ 196,936  $ 186,978 Taxable securities   16,023   15,979 Nontaxable securities   6   9 Federal funds sold   20   541 Other interest and dividends   28,111   23,203 Total interest income   241,096   226,710 Interest expense:  Deposits   94,745   104,066 Borrowed funds   22,798   20,149 Total interest expense   117,543   124,215 Net interest income   123,553   102,495 Provision for credit losses   6,630   4,535 Net interest income after provision for credit losses   116,923   97,960 Non-interest income:  Service charges on deposit accounts   2,558   2,150 Mortgage banking   613   678 Credit card income   1,968   2,155 Bank-owned life insurance income   2,137   3,231 Other operating income   1,001   694 Total non-interest income   8,277   8,908 Non-interest expense:  Salaries and employee benefits   22,879   22,986 Equipment and occupancy expense   3,722   3,557 Third party processing and other services   7,738   7,166 Professional services   1,933   1,464 FDIC and other regulatory assessments   2,854   3,905 Other real estate owned expense   33   30 Other operating expense   6,948   7,123 Total non-interest expense   46,107   46,231 Income before income tax   79,093   60,637 Provision for income tax   15,869   10,611 Net income   63,224   50,026 Net income available to common stockholders  $ 63,224  $ 50,026 Basic earnings per common share  $ 1.16  $ 0.92 Diluted earnings per common share  $ 1.16  $ 0.92

LOANS BY TYPE (UNAUDITED)  (In thousands)   1st quarter 2025  4th quarter 2024  3rd quarter 2024  2nd quarter 2024  1st quarter 2024 Commercial, financial and agricultural  $ 2,924,533  $ 2,869,894  $ 2,793,989  $ 2,935,577  $ 2,834,102 Real estate - construction   1,599,410   1,489,306   1,439,648   1,510,677   1,546,716 Real estate - mortgage:  Owner-occupied commercial   2,543,819   2,547,143   2,441,687   2,399,644   2,377,042 1-4 family mortgage   1,494,189   1,444,623   1,409,981   1,350,428   1,284,888 Non-owner occupied commercial   4,259,566   4,181,243   4,190,935   4,072,007   3,777,758 Subtotal: Real estate - mortgage   8,297,574   8,173,009   8,042,603   7,822,079   7,439,688 Consumer   65,314   73,627   61,986   64,447   60,190 Total loans  $ 12,886,831  $ 12,605,836  $ 12,338,226  $ 12,332,780  $ 11,880,696

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED) (Dollars in thousands)  1st quarter 2025  4th quarter 2024  3rd quarter 2024  2nd quarter 2024  1st quarter 2024 Allowance for credit losses:  Beginning balance $ 164,458   $ 160,755   $ 158,092   $ 155,892   $ 153,317  Loans charged off:  Commercial, financial and agricultural  2,415    3,899    3,020    3,355    1,842  Real estate - construction  46    -    -    -    -  Real estate - mortgage  3,571    560    252    119    67  Consumer  60    211    155    108    98  Total charge offs  6,092    4,670    3,427    3,582    2,007  Recoveries:  Commercial, financial and agricultural  171    1,801    616    406    199  Real estate - construction  -    -    -    8    -  Real estate - mortgage  -    23    2    -    6  Consumer  27    151    37    15    9  Total recoveries  198    1,975    655    429    214  Net charge-offs  5,894    2,695    2,772    3,153    1,793  Provision for loan losses  6,470    6,398    5,435    5,353    4,368  Ending balance $ 165,034   $ 164,458   $ 160,755   $ 158,092   $ 155,892   Allowance for credit losses to total loans  1.28 %   1.30 %   1.30 %   1.28 %   1.31 %  Allowance for credit losses to total average loans  1.30 %   1.32 %   1.30 %   1.31 %   1.33 % Net charge-offs to total average loans  0.19 %   0.09 %   0.09 %   0.10 %   0.06 %  Provision for credit losses to total average loans  0.21 %   0.21 %   0.17 %   0.18 %   0.15 % Nonperforming assets:  Nonaccrual loans $ 73,793   $ 39,501   $ 37,075   $ 33,454   $ 34,457  Loans 90+ days past due and accruing  111    2,965    2,093    1,482    380  Other real estate owned and repossessed assets  756    2,531    2,723    1,458    490  Total $ 74,660   $ 44,997   $ 41,891   $ 36,394   $ 35,327   Nonperforming loans to total loans  0.57 %   0.34 %   0.32 %   0.28 %   0.29 % Nonperforming assets to total assets  0.40 %   0.26 %   0.25 %   0.23 %   0.22 % Nonperforming assets to earning assets  0.41 %   0.26 %   0.26 %   0.23 %   0.23 % Allowance for credit losses to nonaccrual loans  223.64 %   416.34 %   433.59 %   472.57 %   452.42 %

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data)  1st Quarter

2025  4th Quarter

2024  3rd Quarter

2024  2nd Quarter

2024  1st Quarter

2024 Interest income:  Interest and fees on loans  $ 196,936  $ 200,875  $ 205,952  $ 194,300  $ 186,978 Taxable securities   16,023   16,905   17,493   16,158   15,979 Nontaxable securities   6   6   7   9   9 Federal funds sold   20   18   31   538   541 Other interest and dividends   28,111   26,088   24,496   16,535   23,203 Total interest income   241,096   243,892   247,979   227,540   226,710 Interest expense:  Deposits   94,745   98,702   113,211   104,671   104,066 Borrowed funds   22,798   22,022   19,647   16,994   20,149 Total interest expense   117,543   120,724   132,858   121,665   124,215 Net interest income   123,553   123,168   115,121   105,875   102,495 Provision for credit losses   6,630   5,704   5,659   5,353   4,535 Net interest income after provision for credit losses   116,923   117,464   109,462   100,522   97,960 Non-interest income:  Service charges on deposit accounts   2,558   2,650   2,341   2,293   2,150 Mortgage banking   613   1,513   1,352   1,379   678 Credit card income   1,968   1,867   1,925   2,333   2,155 Bank-owned life insurance income   2,137   2,131   2,113   2,058   3,231 Other operating income   1,001   642   818   828   694 Total non-interest income   8,277   8,803   8,549   8,891   8,908 Non-interest expense:  Salaries and employee benefits   22,879   24,062   25,057   24,213   22,986 Equipment and occupancy expense   3,722   3,600   3,795   3,567   3,557 Third party processing and other services   7,738   8,515   8,035   7,465   7,166 Professional services   1,933   1,981   1,715   1,741   1,464 FDIC and other regulatory assessments   2,854   2,225   2,355   2,202   3,905 Other real estate owned expense   33   58   103   7   30 Other operating expense   6,948   6,455   4,572   3,623   7,123 Total non-interest expense   46,107   46,896   45,632   42,818   46,231 Income before income tax   79,093   79,371   72,379   66,595   60,637 Provision for income tax   15,869   14,198   12,472   14,459   10,611 Net income   63,224   65,173   59,907   52,136   50,026 Dividends on preferred stock   -   31   -   31   - Net income available to common stockholders  $ 63,224  $ 65,142  $ 59,907  $ 52,105  $ 50,026 Basic earnings per common share  $ 1.16  $ 1.19  $ 1.10  $ 0.96  $ 0.92 Diluted earnings per common share  $ 1.16  $ 1.19  $ 1.10  $ 0.95  $ 0.92

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) ON A FULLY TAXABLE-EQUIVALENT BASIS (Dollars in thousands)  1st Quarter 2025  4th Quarter 2024  3rd Quarter 2024  2nd Quarter 2024  1st 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  $ 12,683,077   6.29 %  $ 12,414,065   6.43 %  $ 12,351,073   6.63 %  $ 12,045,743   6.48 %  $ 11,723,391   6.41 % Tax-exempt (2)   25,044   4.94    13,198   1.57    15,584   1.86    17,230   2.08    17,605   5.00  Total loans, net of unearned income   12,708,121   6.28    12,427,263   6.43    12,366,657   6.62    12,062,973   6.48    11,740,996   6.40  Mortgage loans held for sale   6,731   4.76    9,642   5.36    10,674   3.80    6,761   6.13    4,770   5.57  Debt securities:  Taxable   1,934,739   3.31    1,932,547   3.49    1,955,632   3.57    1,936,818   3.33    2,013,295   3.16  Tax-exempt (2)   589   5.43    606   5.28    815   4.42    1,209   3.64    1,296   3.40  Total securities (3)   1,935,328   3.31    1,933,153   3.49    1,956,447   3.57    1,938,027   3.33    2,014,591   3.16  Federal funds sold   1,670   4.86    1,596   4.49    2,106   5.86    38,475   5.62    37,298   5.83  Restricted equity securities   11,461   7.43    11,290   6.80    11,290   7.36    11,290   7.16    10,417   7.57  Interest-bearing balances with banks   2,526,382   4.48    2,143,474   4.81    1,775,192   5.46    1,183,482   5.57    1,687,977   5.48  Total interest-earning assets  $ 17,189,693   5.69 %  $ 16,526,418   5.87 %  $ 16,122,366   6.12 %  $ 15,241,008   6.01 %  $ 15,496,049   5.88 % Non-interest-earning assets:  Cash and due from banks   108,540       103,494       103,539       96,646       98,813  Net premises and equipment   59,633       60,708       60,607       59,653       60,126  Allowance for credit losses, accrued interest and other assets   352,282       346,763       340,621       300,521       302,592  Total assets  $ 17,710,148      $ 17,037,383      $ 16,627,133      $ 15,697,828      $ 15,957,580   Interest-bearing liabilities:  Interest-bearing deposits:  Checking  $ 2,461,900   2.38 %  $ 2,353,439   2.61 %  $ 2,318,384   2.97 %  $ 2,227,527   2.85 %  $ 2,339,548   2.69 % Savings   101,996   1.61    102,858   1.52    102,627   1.76    105,955   1.71    106,924   1.76  Money market   7,363,163   3.61    7,067,265   3.86    7,321,503   4.45    6,810,799   4.46    6,761,495   4.48  Time deposits   1,361,558   4.24    1,286,754   4.45    1,197,650   4.52    1,157,528   4.47    1,164,204   4.37  Total interest-bearing deposits   11,288,617   3.40    10,810,316   3.63    10,940,164   4.12    10,301,809   4.09    10,372,171   4.04  Federal funds purchased   1,994,766   4.50    1,767,749   4.80    1,391,118   5.42    1,193,190   5.50    1,422,828   5.50  Other borrowings   64,750   4.30    64,738   4.22    64,738   4.22    64,738   4.27    64,736   4.26  Total interest-bearing liabilities  $ 13,348,133   3.57 %  $ 12,642,803   3.80 %  $ 12,396,020   4.26 %  $ 11,559,737   4.23 %  $ 11,859,735   4.21 % Non-interest-bearing liabilities:  Non-interest-bearing checking   2,600,775       2,672,875       2,575,575       2,560,245       2,550,841  Other liabilities   120,291       130,457       122,455       89,418       91,066  Stockholders' equity   1,670,402       1,624,084       1,574,902       1,536,013       1,503,240  Accumulated other comprehensive loss   (29,453 )      (32,836 )      (41,819 )      (47,584 )      (47,302 )  Total liabilities and stockholders' equity  $ 17,710,148      $ 17,037,383      $ 16,627,133      $ 15,697,828      $ 15,957,580  Net interest spread     2.12 %     2.07 %     1.86 %     1.78 %     1.67 % Net interest margin     2.92 %     2.96 %     2.84 %     2.79 %     2.66 %  (1) Average loans include nonaccrual loans in all periods. Loan fees of $3,764, $4,460, $3,949, $3,317, and $3,655 are included in interest income in the first quarter of 2025, fourth quarter of 2024, third quarter of 2024, second quarter of 2024, and first 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 $(41,977), $(46,652), $(58,802), $(66,663), and $(68,162) for the first quarter of 2025, fourth quarter of 2024, third quarter of 2024, second quarter of 2024, and first quarter of 2024, respectively, are excluded from the yield calculation.

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Contacts

ServisFirst Bank
Davis Mange (205) 949-3420
[email protected]

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