ServisFirst Bancshares, Inc. (NYSE:SFBS), today announced earnings and operating results for the quarter ended September 30, 2024.

Third Quarter 2024 Highlights:

Diluted EPS grew 16% from the second quarter of 2024, and 12% year-over-year.
Net interest margin increased 5 basis points from the second quarter of 2024.
Net income grew by 15% from the second quarter of 2024 and 12% year-over-year.
Non-interest-bearing deposits grew by $101 million, or 16% annualized from the second quarter of 2024.
Loans grew by 6.0% year-over-year.
Credit quality continues to be strong with non-performing assets to total assets of 0.25%.
Liquidity remains solid with over $1.76 billion in cash and no FHLB advances or brokered deposits.
Book value per share of $28.79, up 12% year-over-year.

Tom Broughton, Chairman, President, and CEO, said, "With a solid loan pipeline, an improving margin, strong liquidity and strong credit quality, we are optimistic about the outlook for the bank."

Kirk Pressley, CFO, said, "Margin expansion accelerated during the quarter with dollar interest margin increasing by $9.2 million, a 35% annualized linked quarter increase, and net interest margin expanded five basis points to 2.84%. Noninterest bearing demand deposits grew by 4% from the second quarter, a 16% annualized linked quarter increase. Expenses remained well controlled with the efficiency ratio dropping to 36.9% for the quarter."

FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share amounts)		Period Ending September 30, 2024			Period Ending June 30, 2024			% Change From Period Ending June 30, 2024 to Period Ending September 30, 2024		Period Ending September 30, 2023			% Change From Period Ending September 30, 2023 to Period Ending September 30, 2024
QUARTERLY OPERATING RESULTS
Net Income		$	59,907		$	52,136		14.9	%	$	53,340		12.3	%
Net Income Available to Common Stockholders		$	59,907		$	52,105		15.0	%	$	53,340		12.3	%
Diluted Earnings Per Share		$	1.10		$	0.95		15.8	%	$	0.98		12.2	%
Return on Average Assets			1.43	%		1.34	%				1.37	%
Return on Average Common Stockholders' Equity			15.55	%		14.08	%				15.34	%
Average Diluted Shares Outstanding			54,642,582			54,608,679					54,530,635

YEAR-TO-DATE OPERATING RESULTS
Net Income		$	162,069							$	164,779		(1.6)	%
Net Income Available to Common Stockholders		$	162,038							$	164,748		(1.6)	%
Diluted Earnings Per Share		$	2.97							$	3.02		(1.7)	%
Return on Average Assets			1.35	%							1.50	%
Return on Average Common Stockholders' Equity			14.51	%							16.23	%
Average Diluted Shares Outstanding			54,615,647								54,530,797

Adjusted Net Income, net of tax*		$	163,416							$	164,779		(0.8)	%
Adjusted Net Income Available to Common
	Stockholders, net of tax*	$	163,385							$	164,748		(0.8)	%
Adjusted Diluted Earnings Per Share, net of tax*		$	2.99							$	3.02
Adjusted Return on Average Assets, net of tax*			1.36	%							1.50	%
Adjusted Return on Average Common
	Stockholders' Equity, net of tax*		14.63	%							16.23	%

BALANCE SHEET
Total Assets		$	16,447,876		$	16,049,812		2.5	%	$	16,044,332		2.5	%
Loans			12,338,226			12,332,780		-	%		11,641,130		6.0	%
Non-interest-bearing Demand Deposits			2,576,329			2,475,415		4.1	%		2,621,072		(1.7)	%
Total Deposits			13,146,529			13,259,392		(0.9)	%		13,142,376		-	%
Stockholders' Equity			1,570,269			1,510,576		4.0	%		1,401,384		12.1	%

^* 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."

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $59.9 million for the quarter ended September 30, 2024, compared to net income and net income available to common stockholders of $52.1 million for the second quarter of 2024 and net income and net income available to common stockholders of $53.3 million for the third quarter of 2023. Basic and diluted earnings per common share were both $1.10 in the third quarter of 2024, compared to $0.96 and $0.95, respectively, in the second quarter of 2024 and $0.98 for both in the third quarter of 2023.

Annualized return on average assets was 1.43% and annualized return on average common stockholders' equity was 15.55% for the third quarter of 2024, compared to 1.37% and 15.34%, respectively, for the third quarter of 2023.

Net interest income was $115.1 million for the third quarter of 2024, compared to $105.9 million for the second quarter of 2024 and $99.7 million for the third quarter of 2023. The net interest margin in the third quarter of 2024 was 2.84% compared to 2.79% in the second quarter of 2024 and 2.64% in the third quarter of 2023. Loan yields were 6.62% during the third quarter of 2024 compared to 6.48% during the second quarter of 2024 and 6.13% during the third quarter of 2023. Investment yields were 3.57% during the third quarter of 2024 compared to 3.33% during the second quarter of 2024 and 3.07% during the third quarter of 2023. Average interest-bearing deposit rates were 4.12% during the third quarter of 2024, compared to 4.09% during the second quarter of 2024 and 3.84% during the third quarter of 2023. Average federal funds purchased rates were 5.42% during third quarter of 2024, compared to 5.50% during the second quarter of 2024 and 5.43% during the third quarter of 2023.

Average loans for the third quarter of 2024 were $12.37 billion, an increase of $303.7 million, or 10.0% annualized, from average loans of $12.06 billion for the second quarter of 2024, and an increase of $803.6 million, or 7.0%, from average loans of $11.56 billion for the third quarter of 2023. Ending total loans for the third quarter of 2024 were $12.34 billion, an increase of $5.4 million, or 0.2% annualized, from $12.33 billion for the second quarter of 2024, and an increase of $697.1 million, or 6.0%, from $11.64 billion for the third quarter of 2023.

Average total deposits for the third quarter of 2024 were $13.52 billion, an increase of $653.7 million, or 20.2% annualized, from average total deposits of $12.86 billion for the second quarter of 2024, and an increase of $838.3 million, or 6.6%, from average total deposits of $12.68 billion for the third quarter of 2023. Ending total deposits for the third quarter of 2024 were $13.15 billion, a decrease of $112.9 million, or 3.4% annualized, from $13.26 billion for the second quarter of 2024, and remained unchanged from $13.14 billion for the third quarter of 2023.

Non-performing assets to total assets were 0.25% for the third quarter of 2024, compared to 0.23% for the second quarter of 2024 and 0.15% for the third quarter of 2023. The increase in non-performing assets to total assets can primarily be attributed to a single relationship that moved to non-accrual status during the first quarter of 2024. Annualized net charge-offs to average loans were 0.09% for the third quarter of 2024, compared to 0.10% for the second quarter of 2024 and 0.15% for the third quarter of 2023. The allowance for credit losses as a percent of total loans at September 30, 2024, June 30, 2024, and September 30, 2023, was 1.31%, 1.28%, and 1.31%, respectively. We recorded a $5.7 million provision for credit losses in the third quarter of 2024, $2.7 million of which is a provision for the potential impact of Hurricane Helene, which struck the Florida coast on September 26^th and caused widespread damage from Florida to the Carolinas. In early October Hurricane Milton struck the west coast of Florida and tracked across the middle of the state. Management is assessing the impact of both hurricanes to determine if additional provisions are warranted. We recorded provision for credit losses of $5.4 million in the second quarter of 2024, and $4.3 million in the third quarter of 2023. During the third quarter of 2024, we reclassified the Reserve for Unfunded Commitments from Other Liabilities and Other Expenses to Allowance for Credit Losses and Provision for Credit Losses, respectively.

Non-interest income increased $414,000, or 5.1%, to $8.5 million for the third quarter of 2024 from $8.1 million in the third quarter of 2023, and decreased $342,000, or 3.8%, on a linked quarter basis. Service charges on deposit accounts increased $178,000, or 8.2%, to $2.3 million for the third quarter of 2024 from $2.2 million in the third quarter of 2023, and increased $48,000, or 2.1%, on a linked quarter basis. Mortgage banking revenue increased $527,000, or 63.9%, to $1.4 million for the third quarter of 2024 from $825,000 in the third quarter of 2023, and decreased $27,000, or 2.0%, on a linked quarter basis. Net credit card revenue decreased $607,000, or 24.0%, to $1.9 million for the third quarter of 2024 from $2.5 million in the third quarter of 2023, and decreased $408,000, or 17.5%, on a linked quarter basis. Bank-owned life insurance ("BOLI") income increased $295,000, or 16.2%, to $2.1 million for the third quarter of 2024 from $1.8 million in the third quarter of 2023, and increased $55,000, or 2.7%, on a linked quarter basis. Other operating income increased $21,000, or 2.6%, to $818,000 for the third quarter of 2024 from $797,000 in the third quarter of 2023, and decreased $10,000, or 1.2%, on a linked quarter basis.

Non-interest expense increased $4.0 million, or 9.5%, to $45.6 million for the third quarter of 2024 from $41.7 million in the third quarter of 2023, and increased $2.8 million, or 6.6%, on a linked quarter basis. During the second quarter of 2024, the Company recorded the impact from election of the proportional amortization method to account for historical and new market tax credit investments made primarily for the purpose of receiving income tax credits due to our adoption of Accounting Standards Update 2023-02. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. Previously the amortization of the investment was included in other non-interest expenses. Salary and benefit expense increased $5.0 million, or 24.8%, to $25.1 million for the third quarter of 2024 from $20.1 million in the third quarter of 2023, and increased $844,000, or 3.5%, on a linked quarter basis. The number of full-time equivalent ("FTE") employees increased by 52, or 9.2%, to 620 at September 30, 2024 compared to 568 at September 30, 2023, and decreased by 5, or 0.8%, from the end of the second quarter of 2024. The increase in salary and benefit expense year-over-year continues to be largely due to the normalization of incentives and increased salary expenses due to an increase in FTE employees. Incentives increased approximately $1.8 million, and salaries increased approximately $2.1 million from the third quarter of 2023. Equipment and occupancy expense increased $216,000, or 6.0%, to $3.8 million for the third quarter of 2024 from $3.6 million in the third quarter of 2023, and increased $228,000, or 6.4%, on a linked quarter basis. Third party processing and other services expense increased $1.5 million, or 22.7%, to $8.0 million for the third quarter of 2024 from $6.5 million in the third quarter of 2023, and increased $570,000, or 7.6%, on a linked quarter basis. Professional services expense increased $450,000, or 35.6%, to $1.7 million for the third quarter of 2024 from $1.3 million in the third quarter of 2023, and decreased $26,000, or 1.5%, on a linked quarter basis. FDIC and other regulatory assessments increased $9,000, or 0.4%, to $2.4 million for the third quarter of 2024 from $2.3 million in the third quarter of 2023, and increased $153,000, or 6.9%, on a linked quarter basis. In the first quarter of 2024, the FDIC implemented a special assessment adjustment to recapitalize the Deposit Insurance Fund resulting in an expense of $1.8 million. See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures". Other operating expenses decreased $3.3 million, or 41.6%, to $4.6 million for the third quarter of 2024 from $7.8 million in the third quarter of 2023, and increased $949,000, or 26.2%, on a linked quarter basis. The decrease in other operating expenses were largely due to the application of the proportional amortization method to account for historical and new market tax credit investments, discussed above. The efficiency ratio was 36.90% during the third quarter of 2024 compared to 38.64% during the third quarter of 2023 and 37.31% during the second quarter of 2024.

Income tax expense increased $3.9 million, or 45.9%, to $12.5 million in the third quarter of 2024, compared to $8.5 million in the third quarter of 2023. Our effective tax rate was 17.23% for the third quarter of 2024 compared to 13.81% for the third quarter of 2023. 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 third quarters of 2024 and 2023 of $111,000 and $0, 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 loan production offices in Florida and Tennessee. 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 a number of 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 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 2024, and our other SEC filings. If one or more of the factors affecting 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)
	3rd Quarter 2024			2nd Quarter 2024			1st Quarter 2024			4th Quarter 2023			3rd Quarter 2023
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	247,979		$	227,540		$	226,710		$	229,062		$	213,206
Interest expense		132,858			121,665			124,215			127,375			113,508
Net interest income		115,121			105,875			102,495			101,687			99,698
Provision for credit losses		5,659			5,353			4,368			3,582			4,282
Net interest income after provision for credit losses		109,462			100,522			98,127			98,105			95,416
Non-interest income		8,549			8,891			8,813			7,379			8,135
Non-interest expense		45,632			42,818			46,303			58,258			41,663
Income before income tax		72,379			66,595			60,637			47,226			61,888
Provision for income tax		12,472			14,459			10,611			5,152			8,548
Net income		59,907			52,136			50,026			42,074			53,340
Preferred stock dividends		-			31			-			31			-
Net income available to common stockholders	$	59,907		$	52,105		$	50,026		$	42,043		$	53,340
Earnings per share - basic	$	1.10		$	0.96		$	0.92		$	0.77		$	0.98
Earnings per share - diluted	$	1.10		$	0.95		$	0.92		$	0.77		$	0.98
Average diluted shares outstanding		54,642,582			54,608,679			54,595,384			54,548,719			54,530,635

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	16,447,876		$	16,049,812		$	15,721,630		$	16,129,668		$	16,044,332
Loans		12,338,226			12,332,780			11,880,696			11,658,829			11,641,130
Debt securities		1,867,587			1,941,641			1,941,625			1,882,847			1,878,701
Non-interest-bearing demand deposits		2,576,329			2,475,415			2,627,639			2,643,101			2,621,072
Total deposits		13,146,529			13,259,392			12,751,448			13,273,511			13,142,376
Borrowings		64,741			64,739			64,737			64,735			64,751
Stockholders' equity		1,570,269			1,510,576			1,476,036			1,440,405			1,401,384

Shares outstanding		54,551,543			54,521,479			54,507,778			54,461,580			54,425,447
Book value per share	$	28.79		$	27.71		$	27.08		$	26.45		$	25.75
Tangible book value per share (1)	$	28.54		$	27.46		$	26.83		$	26.20		$	25.50

SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin		2.84	%		2.79	%		2.66	%		2.57	%		2.64	%
Return on average assets		1.43	%		1.34	%		1.26	%		1.04	%		1.37	%
Return on average common stockholders' equity		15.55	%		14.08	%		13.82	%		11.78	%		15.34	%
Efficiency ratio		36.90	%		37.31	%		43.30	%		55.23	%		38.64	%
Non-interest expense to average earning assets		1.13	%		1.13	%		1.20	%		1.47	%		1.10	%

CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets		11.25	%		10.93	%		11.07	%		10.91	%		10.69	%
Tier 1 capital to risk-weighted assets		11.25	%		10.93	%		11.08	%		10.92	%		10.69	%
Total capital to risk-weighted assets		12.77	%		12.43	%		12.61	%		12.45	%		12.25	%
Tier 1 capital to average assets		9.54	%		9.81	%		9.44	%		9.12	%		9.35	%
Tangible common equity to total tangible assets (1)		9.47	%		9.33	%		9.31	%		8.85	%		8.66	%

(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. During the fourth quarter of 2023, we recorded a one-time expense of $7.2 million 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. These expenses are 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 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 September 30, 2024			At June 30, 2024			At March 31, 2024			At December 31, 2023			At September 30, 2023
Book value per share - GAAP		$	28.79		$	27.71		$	27.08		$	26.45		$	25.75
Total common stockholders' equity - GAAP			1,570,269			1,570,994			1,476,036			1,440,405			1,401,384
	Adjustment for Goodwill		(13,615)			(13,615)			(13,615)			(13,615)			(13,615)
Tangible common stockholders' equity - non-GAAP		$	1,556,654		$	1,557,379		$	1,462,421		$	1,426,790		$	1,387,769
Tangible book value per share - non-GAAP		$	28.54		$	27.46		$	26.83		$	26.22		$	25.50

Stockholders' equity to total assets - GAAP			9.55	%		9.55	%		9.39	%		8.93	%		8.73	%
Total assets - GAAP		$	16,447,876		$	16,448,582		$	16,048,819		$	16,129,668		$	16,044,332
	Adjustment for Goodwill		(13,615)			(13,615)			(13,615)			(13,615)			(13,615)
Total tangible assets - non-GAAP		$	16,434,261		$	16,434,967		$	16,035,204		$	16,116,053		$	16,030,717
Tangible common equity to total tangible assets - non-GAAP			9.47	%		9.48	%		9.33	%		8.85	%		8.66	%

	Nine Months Ended September 30, 2024			Nine Months Ended September 30, 2023
Net income - GAAP	$	162,069		$	164,779
Adjustments:
FDIC special assessment		1,799			-
Tax on adjustments		(452)			-
Adjusted net income - non-GAAP	$	163,416		$	164,779

Net income available to common stockholders - GAAP	$	162,038		$	164,748
Adjustments:
FDIC special assessment		1,799			-
Tax on adjustments		(452)			-
Adjusted net income available to common stockholders - non-GAAP	$	163,385		$	164,748

Diluted earnings per share - GAAP	$	2.97		$	3.02
Adjustments:
FDIC special assessment		0.03			-
Tax on adjustments		(0.01)			-
Adjusted diluted earnings per share - non-GAAP	$	2.99		$	3.02

Return on average assets - GAAP		1.34	%		1.50	%
Net income available to common stockholders - GAAP	$	162,038		$	164,748
Adjustments:
FDIC special assessment		1,799			-
Tax on adjustments		(452)			-
Adjusted net income available to common stockholders - non-GAAP	$	163,385		$	164,748
Average assets - GAAP	$	16,095,859		$	14,711,108
Adjusted return on average assets - non-GAAP		1.36	%		1.50	%

Return on average common stockholders' equity - GAAP		14.51	%		16.23	%
Net income available to common stockholders - GAAP	$	162,038		$	164,748
Adjustments:
FDIC special assessment		1,799			-
Tax on adjustments		(452)			-
Adjusted diluted earnings per share - non-GAAP	$	163,385		$	164,748
Average common stockholders' equity - GAAP	$	1,491,880		$	1,356,857
Adjusted return on average common stockholders' equity non-GAAP		14.63	%		16.23	%

Efficiency ratio		38.53	%		36.05	%
Non-interest expense - GAAP	$	134,250		$	119,793
Adjustments:
FDIC special assessment		1,799			-
Adjusted non-interest expense	$	132,451		$	119,793
Net interest income plus non-interest income - GAAP	$	349,744		$	332,288
Adjusted efficiency ratio - non-GAAP		37.87	%		36.05	%

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
	September 30, 2024		September 30, 2023		% Change
ASSETS
Cash and due from banks	$	142,372	$	112,150	27	%
Interest-bearing balances due from depository institutions		1,614,317		1,861,924	(13)	%
Federal funds sold		3,542		91,035	(96)	%
Cash and cash equivalents		1,760,231		2,065,109	(15)	%
Available for sale debt securities, at fair value		1,139,007		834,802	36	%
Held to maturity debt securities (fair value of $673,023 and $933,006, respectively)		728,580		1,043,899	(30)	%
Restricted equity securities		11,300		10,226	11	%
Mortgage loans held for sale		8,453		6,333	33	%
Loans		12,338,226		11,641,130	6	%
Less allowance for credit losses		(162,057)		(152,247)	6	%
Loans, net		12,176,169		11,488,883	6	%
Premises and equipment, net		61,328		59,516	3	%
Goodwill		13,615		13,615	-	%
Other assets		549,194		521,949	5	%
Total assets	$	16,447,876	$	16,044,332	3	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing demand	$	2,576,329	$	2,621,072	(2)	%
Interest-bearing		10,570,200		10,521,304	-	%
Total deposits		13,146,529		13,142,376	-	%
Federal funds purchased		1,542,623		1,370,289	13	%
Other borrowings		64,741		64,751	-	%
Other liabilities		123,714		65,532	89	%
Total liabilities		14,877,607		14,642,948	2	%
Stockholders' equity:
Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at September 30, 2024 and September 30, 2023		-		-	-	%
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,551,543 shares issued and outstanding at September 30, 2024, and 54,425,447 shares issued and outstanding at September 30, 2023		54		54	-	%
Additional paid-in capital		235,649		231,588	2	%
Retained earnings		1,365,701		1,229,080	11	%
Accumulated other comprehensive loss		(31,635)		(59,838)	(47)	%
Total stockholders' equity attributable to ServisFirst Bancshares, Inc.		1,569,769		1,400,884	12	%
Noncontrolling interest		500		500	-	%
Total stockholders' equity		1,570,269		1,401,384	12	%
Total liabilities and stockholders' equity	$	16,447,876	$	16,044,332	3	%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
		Three Months Ended September 30,				Nine Months Ended September 30,
		2024		2023		2024		2023
Interest income:
	Interest and fees on loans	$	205,952	$	178,754	$	587,230	$	514,204
	Taxable securities		17,493		15,522		49,630		37,987
	Nontaxable securities		7		15		25		53
	Federal funds sold		31		985		1,110		1,826
	Other interest and dividends		24,496		17,930		64,234		30,114
	Total interest income		247,979		213,206		702,229		584,184
Interest expense:
	Deposits		113,211		95,901		321,948		223,585
	Borrowed funds		19,647		17,607		56,790		51,349
	Total interest expense		132,858		113,508		378,738		274,934
	Net interest income		115,121		99,698		323,491		309,250
Provision for credit losses			5,659		4,282		15,883		15,133
	Net interest income after provision for credit losses		109,462		95,416		307,608		294,117
Non-interest income:
	Service charges on deposit accounts		2,341		2,163		6,784		6,239
	Mortgage banking		1,352		825		3,409		1,963
	Credit card income		1,925		2,532		6,413		6,627
	Bank-owned life insurance income		2,113		1,818		7,402		5,935
	Other operating income		818		797		2,245		2,274
	Total non-interest income		8,549		8,135		26,253		23,038
Non-interest expense:
	Salaries and employee benefits		25,057		20,080		72,256		57,941
	Equipment and occupancy expense		3,795		3,579		10,919		10,435
	Third party processing and other services		8,035		6,549		22,666		20,031
	Professional services		1,715		1,265		4,920		4,499
	FDIC and other regulatory assessments		2,355		2,346		8,462		6,105
	Other real estate owned expense		103		18		141		30
	Other operating expense		4,572		7,826		14,886		20,752
	Total non-interest expense		45,632		41,663		134,250		119,793
	Income before income tax		72,379		61,888		199,611		197,362
Provision for income tax			12,472		8,548		37,542		32,583
	Net income		59,907		53,340		162,069		164,779
	Dividends on preferred stock		-		-		31		31
	Net income available to common stockholders	$	59,907	$	53,340	$	162,038	$	164,748
Basic earnings per common share		$	1.10	$	0.98	$	2.97	$	3.03
Diluted earnings per common share		$	1.10	$	0.98	$	2.97	$	3.02

LOANS BY TYPE (UNAUDITED)
(In thousands)

	3rd Quarter 2024		2nd Quarter 2024		1st Quarter 2024		4th Quarter 2023		3rd Quarter 2023
Commercial, financial and agricultural	$	2,793,989	$	2,935,577	$	2,834,102	$	2,823,986	$	2,890,535
Real estate - construction		1,439,648		1,510,677		1,546,716		1,519,619		1,509,937
Real estate - mortgage:
Owner-occupied commercial		2,441,687		2,399,644		2,377,042		2,257,163		2,237,684
1-4 family mortgage		1,409,981		1,350,428		1,284,888		1,249,938		1,170,099
Other mortgage		4,190,935		4,072,007		3,777,758		3,744,346		3,766,124
Subtotal: Real estate - mortgage		8,042,603		7,822,079		7,439,688		7,251,447		7,173,907
Consumer		61,986		64,447		60,190		63,777		66,751
Total loans	$	12,338,226	$	12,332,780	$	11,880,696	$	11,658,829	$	11,641,130

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)
(Dollars in thousands)
	3rd Quarter 2024			2nd Quarter 2024			1st Quarter 2024			4th Quarter 2023			3rd Quarter 2023
Allowance for credit losses:
Beginning balance	$	158,092		$	155,892		$	153,317		$	152,247		$	152,272
Loans charged off:
Commercial, financial and agricultural		3,020			3,355			1,842			2,831			4,783
Real estate - construction		-			-			-			89			19
Real estate - mortgage		252			119			67			14			-
Consumer		155			108			98			231			341
Total charge offs		3,427			3,582			2,007			3,165			5,143
Recoveries:
Commercial, financial and agricultural		616			406			199			614			825
Real estate - construction		-			8			-			-			-
Real estate - mortgage		2			-			6			-			-
Consumer		37			15			9			39			11
Total recoveries		655			429			214			653			836
Net charge-offs		2,772			3,153			1,793			2,512			4,307
Reclassification from other liabilities		1,079			-			-			-			-
Provision for credit losses		5,658			5,353			4,368			3,582			4,282
Ending balance	$	162,057			158,092			155,892			153,317			152,247

Allowance for credit losses to total loans		1.31	%		1.28	%		1.31	%		1.32	%		1.31	%
Allowance for credit losses to total average loans		1.31	%		1.31	%		1.33	%		1.32	%		1.31	%
Net charge-offs to total average loans		0.09	%		0.10	%		0.06	%		0.09	%		0.15	%
Provision for credit losses to total average loans		0.18	%		0.18	%		0.15	%		0.12	%		0.15	%
Nonperforming assets:
Nonaccrual loans	$	37,075		$	33,454		$	34,457		$	19,349		$	20,912
Loans 90+ days past due and accruing		2,093			1,482			380			2,184			1,692
Other real estate owned and repossessed assets		2,723			1,458			490			995			690
Total	$	41,891		$	36,394		$	35,327		$	22,528		$	23,294

Nonperforming loans to total loans		0.32	%		0.28	%		0.29	%		0.18	%		0.19	%
Nonperforming assets to total assets		0.25	%		0.23	%		0.22	%		0.14	%		0.15	%
Nonperforming assets to earning assets		0.26	%		0.23	%		0.23	%		0.14	%		0.16	%
Allowance for credit losses to nonaccrual loans		437.11	%		472.57	%		452.42	%		795.17	%		731.74	%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
		3rd Quarter 2024		2nd Quarter 2024		1st Quarter 2024		4th Quarter 2023		3rd Quarter 2023
Interest income:
	Interest and fees on loans	$	205,952	$	194,300	$	186,978	$	184,897	$	178,754
	Taxable securities		17,493		16,158		15,979		15,512		15,522
	Nontaxable securities		7		9		9		12		15
	Federal funds sold		31		538		541		1,018		985
	Other interest and dividends		24,496		16,535		23,203		27,623		17,930
	Total interest income		247,979		227,540		226,710		229,062		213,206
Interest expense:
	Deposits		113,211		104,671		104,066		108,155		95,901
	Borrowed funds		19,647		16,994		20,149		19,220		17,607
	Total interest expense		132,858		121,665		124,215		127,375		113,508
	Net interest income		115,121		105,875		102,495		101,687		99,698
Provision for credit losses			5,659		5,353		4,368		3,582		4,282
	Net interest income after provision for credit losses		109,462		100,522		98,127		98,105		95,416
Non-interest income:
	Service charges on deposit accounts		2,341		2,293		2,150		2,181		2,163
	Mortgage banking

ServisFirst Bancshares, Inc. Announces Results For Third Quarter of 2024