BIRMINGHAM, Ala., Oct. 20, 2025 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE:SFBS), today announced earnings and operating results for the quarter ended September 30, 2025.

Third Quarter 2025 Highlights:

Diluted earnings per share of $1.20 for the quarter. Adjusted diluted earnings per share of $1.30, up 18.2% from the third quarter of 2024.
Net interest margin of 3.09%, up 25 basis points from the third quarter of 2024 (negatively impacted by about 10 bps on a single non-accrual relationship).
Adjusted cost of interest-bearing deposits is flat from second quarter of 2025 to third quarter of 2025 at 3.41%.
Loans grew by $973.7 million, or 7.9%, year-over-year.
Deposits grew by $960.4 million, or 7.3%, year-over-year and 7.1% annualized, from the second quarter of 2025.
Book value per share of $32.62, up 13.3% from the third quarter of 2024 and 13.8% annualized, from the second quarter of 2025.
Liquidity remains strong with $1.77 billion in cash and cash equivalent assets, 10.1% of our total assets, and no FHLB advances or brokered deposits.
Consolidated common equity tier 1 capital to risk-weighted assets increased from 11.25% to 11.49% year-over-year.
Return on average common stockholders' equity of 14.88%. Adjusted return on average common stockholders' equity improved to 16.21% for the third quarter of 2025 compared to 15.68% for the second quarter of 2025 and 15.55% for the third quarter of 2024.
We sold $83.4 million of low-yielding bonds during the third quarter of 2025 at a loss and reinvested in securities with higher yields.

Tom Broughton, Chairman, President, and CEO, said, "All of our regions and markets were solidly profitable in the third quarter of 2025. We have seen great progress in all our markets and our newer offices have reached profitability."

David Sparacio, CFO, said, "We are pleased with the continued expansion of our net interest margin and pricing discipline on both loans and deposits. We continue to see solid year over year growth in earnings and deliver top returns for our shareholders."

^* 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, adjusted cost of interest-bearing deposits, 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 September 30, 2025			Period Ending June 30, 2025			% Change From Period Ending June 30, 2025 to Period Ending September 30, 2025		Period Ending September 30, 2024			% Change From Period Ending September 30, 2024 to Period Ending September 30, 2025
QUARTERLY OPERATING RESULTS
Net Income	$	65,571		$	61,424		6.8	%	$	59,907		9.5	%
Net Income Available to Common Stockholders	$	65,571		$	61,393		6.8	%	$	59,907		9.5	%
Diluted Earnings Per Share	$	1.20		$	1.12		7.1	%	$	1.10		9.1	%
Return on Average Assets		1.47	%		1.40	%				1.43	%
Return on Average Common Stockholders' Equity		14.88	%		14.56	%				15.55	%
Average Diluted Shares Outstanding		54,667,955			54,664,480					54,642,582

Adjusted Net Income, net of tax*	$	71,422		$	66,133		8.0	%	$	59,907		19.2	%
Adjusted Net Income Available to Common
Stockholders, net of tax*	$	71,422		$	66,102		8.0	%	$	59,907		19.2	%
Adjusted Diluted Earnings Per Share, net of tax*	$	1.30		$	1.21		7.4	%	$	1.10		18.2	%
Adjusted Return on Average Assets, net of tax*		1.60	%		1.50	%				1.43	%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*		16.21	%		15.68	%				15.55	%


YEAR-TO-DATE OPERATING RESULTS
Net Income	$	190,219							$	162,069		17.4	%
Net Income Available to Common Stockholders	$	190,188							$	162,038		17.4	%
Diluted Earnings Per Share	$	3.48							$	2.97		17.2	%
Return on Average Assets		1.44	%							1.35	%
Return on Average Common Stockholders' Equity		15.01	%							14.51	%
Average Diluted Shares Outstanding		54,663,063								54,615,647

Adjusted Net Income, net of tax*	$	200,779							$	163,416		22.9	%
Adjusted Net Income Available to Common
Stockholders, net of tax*	$	200,748							$	163,385		22.9	%
Adjusted Diluted Earnings Per Share, net of tax*	$	3.67							$	2.99		22.7	%
Adjusted Return on Average Assets, net of tax*		1.52	%							1.36	%
Adjusted Return on Average Common
Stockholders' Equity, net of tax*		15.85	%							14.63	%

BALANCE SHEET
Total Assets	$	17,584,199		$	17,378,628		1.2	%	$	16,449,178		6.9	%
Loans		13,311,967			13,232,560		0.6	%		12,338,226		7.9	%
Non-interest-bearing Demand Deposits		2,598,895			2,632,058		(1.3	)%		2,576,329		0.9	%
Total Deposits		14,106,922			13,862,319		1.8	%		13,146,529		7.3	%
Stockholders' Equity		1,781,647			1,721,783		3.5	%		1,570,269		13.5	%

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $65.6 million for the quarter ended September 30, 2025, compared to net income and net income available to common stockholders of $61.4 million for the second quarter of 2025 and net income and net income available to common stockholders of $59.9 million for the third quarter of 2024. Basic and diluted earnings per common share were both $1.20 in the third quarter of 2025, compared to $1.12 for both in the second quarter of 2025 and $1.10 for both in the third quarter of 2024.

Annualized return on average assets was 1.47% and annualized return on average common stockholders' equity was 14.88% for the third quarter of 2025, compared to 1.43% and 15.55%, respectively, for the third quarter of 2024.

Net interest income was $133.4 million for the third quarter of 2025, compared to $131.7 million for the second quarter of 2025 and $115.1 million for the third quarter of 2024. The net interest margin in the third quarter of 2025 was 3.09% compared to 3.10% in the second quarter of 2025 and 2.84% in the third quarter of 2024. During the second quarter, we reversed a $2.3 million accrual related to a legal matter, which had been recorded in interest expense. The net interest margin in the second quarter of 2025, adjusted for the reversal of this accrual, was 3.06%. See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for more details on this adjustment in the second quarter of 2025. Loan yields were 6.34% during the third quarter of 2025 compared to 6.37% during the second quarter of 2025 and 6.62% during the third quarter of 2024. Investment yields were 3.60% during the third quarter of 2025 compared to 3.37% during the second quarter of 2025, and 3.57% during the third quarter of 2024. Average interest-bearing deposit rates were 3.41% during the third quarter of 2025, compared to 3.33% during the second quarter of 2025 (3.41% on an adjusted basis) and 4.12% during the third quarter of 2024. Average federal funds purchased rates were 4.46% during the third quarter of 2025, compared to 4.49% during the second quarter of 2025 and 5.42% during the third quarter of 2024.

Average loans for the third quarter of 2025 were $13.21 billion, an increase of $195.7 million, or 6.0% annualized, from average loans of $13.01 billion for the second quarter of 2025, and an increase of $839.1 million, or 6.8%, from average loans of $12.37 billion for the third quarter of 2024. Ending total loans for the third quarter of 2025 were $13.31 billion, an increase of $79.4 million, or 2.4% annualized, from $13.23 billion for the second quarter of 2025, and an increase of $973.7 million, or 7.9%, from $12.34 billion for the third quarter of 2024.

Average total deposits for the third quarter of 2025 were $14.13 billion, an increase of $238.3 million, or 6.8% annualized, from average total deposits of $13.90 billion for the second quarter of 2025, and an increase of $617.8 million, or 4.6%, from average total deposits of $13.52 billion for the third quarter of 2024. Ending total deposits for the third quarter of 2025 were $14.11 billion, an increase of $244.6 million, or 7.1% annualized, from $13.86 billion for the second quarter of 2025, and an increase of $960.4 million, or 7.3%, from $13.15 billion for the third quarter of 2024.

Non-performing assets to total assets were 0.96% for the third quarter of 2025, compared to 0.42% for the second quarter of 2025 and 0.25% for the third quarter of 2024. The driver of the year-over-year increase in non-performing assets was attributable to a large, real-estate secured relationship. Annualized net charge-offs to average loans were 0.27% for the third quarter of 2025, compared to 0.20% for the second quarter of 2025 and 0.09% for the third quarter of 2024. During the third quarter of 2025, we charged off $3.0 million on loans that had not been previously impaired. The allowance for credit losses as a percentage of total loans at September 30, 2025, June 30, 2025, and September 30, 2024, was 1.28%, 1.28%, and 1.30%, respectively. We recorded a $9.3 million provision for credit losses in the third quarter of 2025 compared to $11.4 million in the second quarter of 2025, and $5.4 million in the third quarter of 2024, of which $2.7 million related to the impact of Hurricanes Helene and Milton in the third quarter of 2024.

Non-interest income decreased $5.7 million, or 66.9%, to $2.8 million for the third quarter of 2025 from $8.5 million in the third quarter of 2024, and increased $2.4 million, or 572.9%, on a linked quarter basis. Service charges on deposit accounts increased $975,000, or 41.6%, to $3.3 million for the third quarter of 2025 from $2.3 million in the third quarter of 2024, and increased $645,000, or 24.1%, on a linked quarter basis. We increased our service charge rates on many of our checking account products in July of 2025. Mortgage banking revenue increased $512,000, or 37.9%, to $1.9 million for the third quarter of 2025 from $1.4 million in the third quarter of 2024, and increased $541,000, or 40.9%, on a linked quarter basis. Net credit card income increased $480,000, or 24.9%, to $2.4 million for the third quarter of 2025 from $1.9 million in the third quarter of 2024, and increased $286,000, or 13.5%, on a linked quarter basis. In the third and second quarters of 2025 respectively, we recognized losses of $7.8 million and $8.6 million on the sale of available-for-sale debt securities as part of a portfolio restructuring. Bank-owned life insurance ("BOLI") income increased $292,000, or 13.8%, to $2.4 million for the third quarter of 2025 from $2.1 million in the third quarter of 2024, and increased $279,000, or 13.1%, on a linked quarter basis. We purchased an additional $125 million in BOLI contracts during the third quarter of 2025. Other operating income decreased $163,000, or 19.9%, to $655,000 for the third quarter of 2025 from $818,000 in the third quarter of 2024, and decreased $90,000, or 12.1%, on a linked quarter basis.

Non-interest expense increased $2.4 million, or 5.2%, to $48.0 million for the third quarter of 2025 from $45.6 million in the third quarter of 2024, and increased $3.8 million, or 8.6%, on a linked quarter basis. Salary and benefit expense increased $465,000, or 1.9%, to $25.5 million for the third quarter of 2025 from $25.1 million in the third quarter of 2024, and increased $2.9 million, or 13.0%, on a linked quarter basis. The number of full-time equivalent ("FTE") employees increased by 30, or 4.8%, to 650 at September 30, 2025 compared to 620 at September 30, 2024, and decreased by 9, or 1.3%, from the end of the second quarter of 2025. Equipment and occupancy expense decreased $180,000, or 4.7%, to $3.6 million for the third quarter of 2025 from $3.8 million in the third quarter of 2024, and increased $92,000, or 2.6%, on a linked quarter basis. Third party processing and other services expense increased $60,000, or 0.7%, to $8.1 million for the third quarter of 2025 from $8.0 million in the third quarter of 2024, and increased $90,000, or 1.1%, on a linked quarter basis. Professional services expense increased $142,000, or 8.3%, to $1.9 million for the third quarter of 2025 from $1.7 million in the third quarter of 2024, and decreased $47,000, or 2.5%, on a linked quarter basis. Federal Deposit Insurance Corporation ("FDIC") and other regulatory assessments increased $387,000, or 16.4%, to $2.7 million for the third quarter of 2025 from $2.4 million in the third quarter of 2024, and decreased $11,000, or 0.4%, on a linked quarter basis. Other operating expenses increased $1.5 million, or 33.0%, to $6.1 million for the third quarter of 2025 from $4.6 million in the third quarter of 2024, and increased $667,000, or 12.3%, on a linked quarter basis. The efficiency ratio was 35.22% during the third quarter of 2025 compared to 36.90% during the third quarter of 2024 and 33.46% during the second quarter of 2025. The adjusted efficiency ratio was 33.31% in the third quarter of 2025.

Income tax expense increased $779,000, or 6.2%, to $13.3 million in the third quarter of 2025, compared to $12.5 million in the third quarter of 2024, and decreased $1.9 million, or 12.7%, on a linked quarter basis. Our effective tax rate was 16.81% for the third quarter of 2025 compared to 19.82% for the second quarter of 2025 and to 17.23% for the third quarter of 2024. We invested in a renewable energy tax credit during the third quarter of 2025 for which we received tax credits and other benefits of approximately $3.6 million. 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 2025 and 2024 of $81,000 and $111,000, 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)
	3rd Quarter 2025			2nd Quarter 2025			1st Quarter 2025			4th Quarter 2024			3rd Quarter 2024
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	251,308		$	246,635		$	241,096		$	243,892		$	247,979
Interest expense		117,860			114,948			117,543			120,724			132,858
Net interest income		133,448			131,687			123,553			123,168			115,121
Provision for credit losses		9,463			11,296			6,630			5,704			5,659
Net interest income after provision for credit losses		123,985			120,391			116,923			117,464			109,462
Non-interest income		2,833			421			8,277			8,803			8,549
Non-interest expense		47,996			44,204			46,107			46,896			45,632
Income before income tax		78,822			76,608			79,093			79,371			72,379
Provision for income tax		13,251			15,184			15,869			14,198			12,472
Net income		65,571			61,424			63,224			65,173			59,907
Preferred stock dividends		-			31			-			31			-
Net income available to common stockholders	$	65,571		$	61,393		$	63,224		$	65,142		$	59,907
Earnings per share - basic	$	1.20		$	1.12		$	1.16		$	1.19		$	1.10
Earnings per share - diluted	$	1.20		$	1.12		$	1.16		$	1.19		$	1.10
Average diluted shares outstanding		54,667,955			54,664,480			54,656,630			54,649,808			54,642,582

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	17,584,199		$	17,378,628		$	18,636,766		$	17,351,643		$	16,449,178
Loans		13,311,967			13,232,560			12,886,831			12,605,836			12,338,226
Debt securities		1,849,739			1,914,503			1,905,550			1,876,253			1,867,587
Non-interest-bearing demand deposits		2,598,895			2,632,058			2,647,577			2,619,687			2,576,329
Total deposits		14,106,922			13,862,319			14,429,061			13,543,459			13,146,529
Borrowings		64,750			64,747			64,745			64,743			64,741
Stockholders' equity		1,781,647			1,721,783			1,668,900			1,616,772			1,570,269

Shares outstanding		54,621,441			54,618,545			54,601,217			54,569,427			54,551,543
Book value per share	$	32.62		$	31.52		$	30.57		$	29.63		$	28.79
Tangible book value per share (1)	$	32.37		$	31.27		$	30.32		$	29.38		$	28.54

SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin		3.09	%		3.10	%		2.92	%		2.96	%		2.84	%
Return on average assets		1.47	%		1.40	%		1.45	%		1.52	%		1.43	%
Return on average common stockholders' equity		14.88	%		14.56	%		15.63	%		16.29	%		15.55	%
Efficiency ratio		35.22	%		33.46	%		34.97	%		35.54	%		36.90	%
Non-interest expense to average earning assets		1.11	%		1.04	%		1.09	%		1.13	%		1.13	%

CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets		11.49	%		11.38	%		11.48	%		11.42	%		11.25	%
Tier 1 capital to risk-weighted assets		11.50	%		11.38	%		11.48	%		11.42	%		11.25	%
Total capital to risk-weighted assets		12.91	%		12.81	%		12.93	%		12.90	%		12.77	%
Tier 1 capital to average assets		10.01	%		9.78	%		9.48	%		9.59	%		9.54	%
Tangible common equity to total tangible assets (1)		10.06	%		9.84	%		8.89	%		9.25	%		9.47	%

(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 net interest margin, adjusted return on average assets, adjusted return on average common stockholders' equity, adjusted cost of interest-bearing deposits, 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 due to restructuring the portfolio. We reversed a $2.3 million legal reserve from interest expense during the second quarter of 2025. We recognized a $7.8 million loss on sale of available-for-sale debt securities in non-interest income during the third quarter of 2025 due to continued restructuring of the portfolio. 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 net interest margin, adjusted return on average assets, adjusted return on average common stockholders' equity, adjusted cost of interest-bearing deposits 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 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, 2025			At June 30, 2025			At March 31, 2025			At December 31, 2024			At September 30, 2024
Book value per share - GAAP	$	32.62		$	31.52		$	30.57		$	29.63		$	28.79
Total common stockholders' equity - GAAP		1,781,647			1,721,783			1,668,900			1,616,772			1,570,269
Adjustment for Goodwill		(13,615	)		(13,615	)		(13,615	)		(13,615	)		(13,615	)
Tangible common stockholders' equity - non-GAAP	$	1,768,032		$	1,708,168		$	1,655,285		$	1,603,157		$	1,556,654
Tangible book value per share - non-GAAP	$	32.37		$	31.27		$	30.32		$	29.38		$	28.54

Stockholders' equity to total assets - GAAP		10.13	%		9.91	%		8.95	%		9.32	%		9.55	%
Total assets - GAAP	$	17,584,199		$	17,378,628		$	18,636,766		$	17,351,643		$	16,449,178
Adjustment for Goodwill		(13,615	)		(13,615	)		(13,615	)		(13,615	)		(13,615	)
Total tangible assets - non-GAAP	$	17,570,584		$	17,365,013		$	18,623,151		$	17,338,028		$	16,435,563
Tangible common equity to total tangible assets - non-GAAP		10.06	%		9.84	%		8.89	%		9.25	%		9.47	%

	Three Months Ended September 30, 2025			Three Months Ended June 30, 2025			Three Months Ended September 30, 2024			Nine Months Ended September 30, 2025			Nine Months Ended September 30, 2024
Net income - GAAP	$	65,571		$	61,424		$	59,907		$	190,219		$	162,069
Adjustments:
FDIC special assessment		-			-			-			-			1,799
Legal matter accrual reversal		-			(2,276	)		-			(2,276	)		-
Loss on marketable securities		7,812			8,563			-			16,375			-
Tax on adjustments		(1,961	)		(1,578	)		-			(3,539	)		(452	)
Adjusted net income - non-GAAP	$	71,422		$	66,133		$	59,907		$	200,779		$	163,416

Net income available to common stockholders - GAAP	$	65,571		$	61,393		$	59,907		$	190,188		$	162,038
Adjustments:
FDIC special assessment		-			-			-			-			1,799
Legal matter accrual reversal		-			(2,276	)		-			(2,276	)		-
Loss on marketable securities		7,812			8,563			-			16,375			-
Tax on adjustments		(1,961	)		(1,578	)		-			(3,539	)		(452	)
Adjusted net income available to common stockholders - non-GAAP	$	71,422		$	66,102		$	59,907		$	200,748		$	163,385

Diluted earnings per share - GAAP	$	1.20		$	1.12		$	1.10		$	3.48		$	2.97
Adjustments:
FDIC special assessment		-			-			-			-			0.03
Legal matter accrual reversal		-			(0.04	)		-			(0.04	)		-
Loss on marketable securities		0.14			0.16			-			0.30			-
Tax on adjustments		(0.04	)		(0.03	)		-			(0.07	)		(0.01	)
Adjusted diluted earnings per share - non-GAAP	$	1.30		$	1.21		$	1.10		$	3.67		$	2.99

Net interest income, on a fully taxable-equivalent basis	$	133,502		$	131,777		$	115,138		$	388,897		$	324,207
Adjustments:
Legal matter accrual reversal		-			(2,276	)		-			(2,276	)		-
Tax on adjustments		-			571			-			571			-
Adjusted net interest income, on a fully taxable-equivalent basis	$	133,502		$	130,072		$	115,138		$	387,192		$	324,207

Net interest margin-GAAP		3.09	%		3.10	%		2.84	%		3.04	%		2.77	%
Average earning assets		17,129,689			17,076,353			16,122,366			17,131,692			15,621,642
Adjusted net interest margin-non-GAAP		3.09	%		3.06	%		2.84	%		3.02	%		2.77	%

Cost on interest bearing deposits-GAAP		3.41	%		3.33	%		4.12	%		3.39	%		4.09	%
Interest expense deposits		98,735			93,488			113,211			286,968			321,948
Legal matter accrual reversal		-			2,276			-			2,276			-
Adjusted interest expense	$	98,735		$	95,764		$	113,211		$	289,244		$	321,948
Average total interest bearing deposits	$	11,482,480		$	11,261,657		$	10,940,164		$	11,337,833		$	10,523,767
Adjusted cost on interest bearing deposits-non-GAAP		3.41	%		3.41	%		4.12	%		3.41	%		4.09	%

Return on average assets - GAAP		1.47	%		1.40	%		1.43	%		1.44	%		1.35	%
Net income available to common stockholders - GAAP	$	65,571		$	61,393		$	59,907		$	190,188		$	162,038
Adjustments:
FDIC special assessment		-			-			-			-			1,799
Legal matter accrual reversal		-			(2,276	)		-			(2,276	)		-
Loss on marketable securities		7,812			8,563			-			16,375			-
Tax on adjustments		(1,961	)		(1,578	)		-			(3,539	)		(452	)
Adjusted net income available to common stockholders - non-GAAP	$	71,422		$	66,102		$	59,907		$	200,748		$	163,385
Average assets - GAAP	$	17,709,359		$	17,626,503		$	16,627,133		$	17,681,999		$	16,095,856
Adjusted return on average assets - non-GAAP		1.60	%		1.50	%		1.43	%		1.52	%		1.36	%

Return on average common stockholders' equity - GAAP		14.88	%		14.56	%		15.55	%		15.01	%		14.51	%
Net income available to common stockholders - GAAP	$	65,571		$	61,393		$	59,907		$	190,188		$	162,038
Adjustments:
FDIC special assessment		-			-			-			-			1,799
Legal matter accrual reversal		-			(2,276	)		-			(2,276	)		-
Loss on marketable securities		7,812			8,563			-			16,375			-
Tax on adjustments		(1,961	)		(1,578	)		-			(3,539	)		(452	)
Adjusted net income available to common stockholders - non-GAAP	$	71,422		$	66,102		$	59,907		$	200,748		$	163,385
Average common stockholders' equity - GAAP	$	1,747,825		$	1,690,855		$	1,533,083		$	1,693,601		$	1,491,877
Adjusted return on average common stockholders' equity non-GAAP		16.21	%		15.68	%		15.55	%		15.85	%		14.63	%

Efficiency ratio		35.22	%		33.46	%		36.90	%		34.56	%		38.53	%
Net interest income - GAAP	$	133,448		$	131,687		$	115,121		$	388,688		$	323,491
Adjustments:
Legal matter accrual reversal		-			(2,276	)		-			(2,276	)		-
Adjusted net interest income - non-GAAP	$	133,448		$	129,411		$	115,121		$	386,412		$	323,491
Total non-interest income - GAAP		2,833			421			8,549			11,531			26,253
Adjustments:
Loss on marketable securities		7,812			8,563			-			16,375			-
Adjusted non-interest income - non-GAAP	$	10,645		$	8,984		$	8,549		$	27,906		$	26,253
Adjusted net interest income and non-interest income - non-GAAP		144,093			138,395			123,670			414,318			349,744
Non-interest expense - GAAP	$	47,996		$	44,204		$	45,632		$	138,307		$	134,250
Adjustments:
FDIC special assessment		-			-			-			-			1,799
Adjusted non-interest expense - non-GAAP	$	47,996		$	44,204		$	45,632		$	138,307		$	132,451
Adjusted efficiency ratio - non-GAAP		33.31	%		31.94	%		36.90	%		33.38	%		37.87	%

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
	September 30, 2025			September 30, 2024			% Change
ASSETS
Cash and due from banks	$	144,089		$	142,372		1	%
Interest-bearing balances due from depository institutions		1,191,447			1,614,317		(26	)%
Federal funds sold and securities purchased with agreement to resell		437,769			3,542		12,259	%
Cash and cash equivalents		1,773,305			1,760,231		1	%
Available for sale debt securities, at fair value		1,178,144			1,139,007		3	%
Held to maturity debt securities (fair value of $622,825 and $673,023, respectively)		671,595			728,580		(8	)%
Restricted equity securities		12,203			11,300		8	%
Mortgage loans held for sale		9,433			8,453		12	%
Loans		13,311,967			12,338,226		8	%
Less allowance for credit losses		(170,235	)		(160,755	)	6	%
Loans, net		13,141,732			12,177,471		8	%
Premises and equipment, net		60,704			61,328		(1	)%
Goodwill		13,615			13,615		-	%
Other assets		723,468			549,193		32	%
Total assets	$	17,584,199		$	16,449,178		7	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing demand	$	2,598,895		$	2,576,329		1	%
Interest-bearing		11,508,027			10,570,200		9	%
Total deposits		14,106,922			13,146,529		7	%
Federal funds purchased		1,488,150			1,542,623		(4	)%
Other borrowings		64,750			64,741		-	%
Other liabilities		142,730			125,016		14	%
Total liabilities		15,802,552			14,878,909		6	%
Stockholders' equity:
Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at
September 30, 2025 and September 30, 2024		-			-		-	%
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,621,441 shares
issued and outstanding at September 30, 2025, and 54,551,543
shares issued and outstanding at September 30, 2024		54			54		-	%
Additional paid-in capital		237,236			235,649		1	%
Retained earnings		1,548,098			1,365,701		13	%
Accumulated other comprehensive loss		(4,241	)		(31,635	)	(87	)%
Total stockholders' equity attributable to ServisFirst Bancshares, Inc.		1,781,147			1,569,769		13	%
Noncontrolling interest		500			500		-	%
Total stockholders' equity		1,781,647			1,570,269		13	%
Total liabilities and stockholders' equity	$	17,584,199		$	16,449,178		7	%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
		Three Months Ended September 30,					Nine Months Ended September 30,
		2025			2024		2025			2024
Interest income:
	Interest and fees on loans	$	210,987		$	205,952	$	614,444		$	587,230
	Taxable securities		17,338			17,493		49,923			49,630
	Nontaxable securities		5			7		16			25
	Federal funds sold and securities purchased with agreement to resell		4,724			31		6,336			1,110
	Other interest and dividends		18,254			24,496		68,320			64,234
	Total interest income		251,308			247,979		739,039			702,229
Interest expense:
	Deposits		98,735			113,211		286,968			321,948
	Borrowed funds		19,125			19,647		63,383			56,790
	Total interest expense		117,860			132,858		350,351			378,738
	Net interest income		133,448			115,121		388,688			323,491
Provision for credit losses			9,463			5,659		27,389			15,883
	Net interest income after provision for credit losses		123,985			109,462		361,299			307,608
Non-interest income:
	Service charges on deposit accounts		3,316			2,341		8,545			6,784
	Mortgage banking		1,864			1,352		3,800			3,409
	Credit card income		2,405			1,925		6,492			6,413
	Securities losses		(7,812	)		-		(16,375	)		-
	Bank-owned life insurance income		2,405			2,113		6,668			7,402
	Other operating income		655			818		2,401			2,245
	Total non-interest income		2,833			8,549		11,531			26,253
Non-interest expense:
	Salaries and employee benefits		25,522			25,057		70,977			72,256
	Equipment and occupancy expense		3,615			3,795		10,860			10,919
	Third party processing and other services		8,095			8,035		23,838			22,666
	Professional services		1,857			1,715		5,694			4,920
	FDIC and other regulatory assessments		2,742			2,355		8,349			8,462
	Other real estate owned expense		82			103		142			141
	Other operating expense		6,083			4,572		18,447			14,886
	Total non-interest expense		47,996			45,632		138,307			134,250
	Income before income tax		78,822			72,379		234,523			199,611
Provision for income tax			13,251			12,472		44,304			37,542
	Net income		65,571			59,907		190,219			162,069
	Dividends on preferred stock		-			-		31			31
	Net income available to common stockholders	$	65,571		$	59,907	$	190,188		$	162,038
Basic earnings per common share		$	1.20		$	1.10	$	3.48		$	2.97
Diluted earnings per common share		$	1.20		$	1.10	$	3.48		$	2.97

LOANS BY TYPE (UNAUDITED)
(In thousands)

	3rd Quarter 2025		2nd Quarter 2025		1st Quarter 2025		4th Quarter 2024		3rd Quarter 2024
Commercial, financial and agricultural	$	2,945,784	$	2,966,191	$	2,924,533	$	2,869,894	$	2,793,989
Real estate - construction		1,532,285		1,735,405		1,599,410		1,489,306		1,439,648
Real estate - mortgage:
Owner-occupied commercial		2,680,055		2,557,711		2,543,819		2,547,143		2,441,687
1-4 family mortgage		1,625,296		1,561,461		1,494,189		1,444,623		1,409,981
Non-owner occupied commercial		4,448,710		4,338,697		4,259,566		4,181,243		4,190,935
Subtotal: Real estate - mortgage		8,754,061		8,457,869		8,297,574		8,173,009		8,042,603
Consumer		79,837		73,095		65,314		73,627		61,986
Total loans	$	13,311,967	$	13,232,560	$	12,886,831	$	12,605,836	$	12,338,226

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)
(Dollars in thousands)
	3rd Quarter 2025			2nd Quarter 2025			1st Quarter 2025			4th Quarter 2024			3rd Quarter 2024
Allowance for credit losses:
Beginning balance	$	169,959		$	165,034		$	164,458		$	160,755		$	158,092
Loans charged off:
Commercial, financial and agricultural		7,947			6,849			2,415			3,899			3,020
Real estate - construction		-			-			46			-			-
Real estate - mortgage		1,294			581			3,571			560			252
Consumer		109			72			60			211			155
Total charge offs		9,350			7,502			6,092			4,670			3,427
Recoveries:
Commercial, financial and agricultural		237			959			171			1,801			616
Real estate - construction		30			-			-			-			-
Real estate - mortgage		-			1			-			23			2
Consumer		21			58			27			151			37
Total recoveries		288			1,018			198			1,975			655
Net charge-offs		9,063			6,484			5,894			2,695			2,772
Provision for credit losses		9,338			11,409			6,470			6,398			5,435
Ending balance	$	170,235		$	169,959		$	165,034		$	164,458		$	160,755

Allowance for credit losses to total loans		1.28	%		1.28	%		1.28	%		1.30	%		1.30	%

Allowance for credit losses to total average loans		1.29	%		1.31	%		1.30	%		1.32	%		1.30	%
Net charge-offs to total average loans		0.27	%		0.20	%		0.19	%		0.09	%		0.09	%

Provision for credit losses to total average loans		0.28	%		0.35	%		0.21	%		0.21	%		0.17	%
Nonperforming assets:
Nonaccrual loans	$	166,662		$	68,619		$	73,793		$	39,501		$	37,075
Loans 90+ days past due and accruing		965			3,549			111			2,965			2,093
Other real estate owned and
repossessed assets		611			311			756			2,531			2,723
Total	$	168,238		$	72,479		$	74,660		$	44,997		$	41,891

Nonperforming loans to total loans		1.26	%		0.55	%		0.57	%		0.34	%		0.32	%
Nonperforming assets to total assets		0.96	%		0.42	%		0.40	%		0.26	%		0.25	%
Nonperforming assets to earning assets		1.00	%		0.43	%		0.41	%		0.26	%		0.26	%
Allowance for credit losses to nonaccrual loans		102.14	%		247.69	%		223.64	%		416.34	%		433.59	%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
		3rd Quarter 2025			2nd Quarter 2025			1st Quarter 2025		4th Quarter 2024		3rd Quarter 2024
Interest income:
	Interest and fees on loans	$	210,987		$	206,521		$	196,936	$	200,875	$	205,952
	Taxable securities		17,338			16,562			16,023		16,905		17,493
	Nontaxable securities		5			5			6		6		7
	Federal funds sold with agreement to resell		4,724			1,592			20		18		31
	Other interest and dividends		18,254			21,955			28,111		26,088		24,496
	Total interest income		251,308			246,635			241,096		243,892		247,979
Interest expense:
	Deposits		98,735			93,488			94,745		98,702		113,211
	Borrowed funds		19,125			21,460			22,798		22,022		19,647
	Total interest expense		117,860			114,948			117,543		120,724		132,858
	Net interest income		133,448			131,687			123,553		123,168		115,121
Provision for credit losses			9,463			11,296			6,630		5,704		5,659
	Net interest income after provision for credit losses		123,985			120,391			116,923		117,464		109,462
Non-interest income:
	Service charges on deposit accounts		3,316			2,671			2,558		2,650		2,341
	Mortgage banking		1,864			1,323			613		1,513		1,352
	Credit card income		2,405			2,119			1,968		1,867		1,925
	Securities losses		(7,812	)		(8,563	)		-		-		-
	Bank-owned life insurance income		2,405			2,126			2,137		2,131		2,113
	Other operating income		655			745			1,001		642		818
	Total non-interest income		2,833			421			8,277		8,803		8,549
Non-interest expense:
	Salaries and employee benefits		25,522			22,576			22,879		24,062		25,057
	Equipment and occupancy expense		3,615			3,523			3,722		3,600		3,795
	Third party processing and other services		8,095			8,005			7,738		8,515		8,035
	Professional services		1,857			1,904			1,933		1,981		1,715
	FDIC and other regulatory assessments		2,742			2,753			2,854		2,225		2,355
	Other real estate owned expense		82			27			33		58		103
	Other operating expense		6,083			5,416			6,948		6,455		4,572
	Total non-interest expense		47,996			44,204			46,107		46,896		45,632
	Income before income tax		78,822			76,608			79,093		79,371		72,379
Provision for income tax			13,251			15,184			15,869		14,198		12,472
	Net income		65,571			61,424			63,224		65,173		59,907
	Dividends on preferred stock		-			31			-		31		-
	Net income available to common stockholders	$	65,571		$	61,393		$	63,224	$	65,142	$	59,907
Basic earnings per common share		$	1.20		$	1.12		$	1.16	$	1.19	$	1.10
Diluted earnings per common share		$	1.20		$	1.12		$	1.16	$	1.19	$	1.10

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)

	3rd Quarter 2025					2nd Quarter 2025					1st Quarter 2025					4th Quarter 2024					3rd 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	$	13,175,297		6.34	%	$	12,979,759		6.37	%	$	12,683,077		6.29	%	$	12,414,065		6.43	%	$	12,351,073		6.63	%
Tax-exempt (2)		30,478		5.47			30,346		5.51			25,044		4.94			13,198		1.57			15,584		1.86
Total loans, net of unearned
income		13,205,775		6.34			13,010,105		6.37			12,708,121		6.28			12,427,263		6.43			12,366,657		6.62
Mortgage loans held for sale		11,351		4.82			11,739		5.23			6,731		4.76			9,642		5.36			10,674		3.80
Debt securities:
Taxable		1,926,101		3.60			1,965,089		3.37			1,934,739		3.31			1,932,547		3.49			1,955,632		3.57
Tax-exempt (2)		444		5.41			492		4.88			589		5.43			606		5.28			815		4.42
Total securities (3)		1,926,545		3.60			1,965,581		3.37			1,935,328		3.31			1,933,153		3.49			1,956,447		3.57
Federal funds sold and securities
purchased with agreement to resell		365,733		5.12			124,303		5.14			1,670		4.86			1,596		4.49			2,106		5.86
Restricted equity securities		12,167		6.36			12,146		6.64			11,461		7.43			11,290		6.80			11,290		7.36
Interest-bearing balances with banks		1,608,118		4.45			1,952,479		4.47			2,526,382		4.48			2,143,474		4.81			1,775,192		5.46
Total interest-earning assets	$	17,129,689		5.82	%	$	17,076,353		5.80	%	$	17,189,693		5.69	%	$	16,526,418		5.87	%	$	16,122,366		6.12	%
Non-interest-earning assets:
Cash and due from banks		103,470					109,506					108,540					103,494					103,539
Net premises and equipment		60,614					59,944					59,633					60,708					60,607
Allowance for credit losses, accrued
interest and other assets		415,586					380,700					352,282					346,763					340,621
Total assets	$	17,709,359				$	17,626,503				$	17,710,148				$	17,037,383				$	16,627,133

Interest-bearing liabilities:
Interest-bearing deposits:
Checking (4)	$	2,069,440		2.16	%	$	2,222,000		1.78	%	$	2,461,900		2.38	%	$	2,353,439		2.61	%	$	2,318,384		2.97	%
Savings		103,668		1.66			101,506		1.63			101,996		1.61			102,858		1.52			102,627		1.76
Money market		7,965,115		3.67			7,616,747		3.67			7,363,163		3.61			7,067,265		3.86			7,321,503		4.45
Time deposits		1,344,257		3.97			1,321,404		4.09			1,361,558		4.24			1,286,754		4.45			1,197,650		4.52
Total interest-bearing deposits		11,482,480		3.41			11,261,657		3.33			11,288,617		3.40			10,810,316		3.63			10,940,164		4.12
Federal funds purchased		1,640,377		4.46			1,855,860		4.49			1,994,766		4.50			1,767,749		4.80			1,391,118		5.42
Other borrowings		64,761		4.21			64,750		4.26			64,750		4.30			64,738		4.22			64,738		4.22
Total interest-bearing liabilities	$	13,187,618		3.55	%	$	13,182,267		3.50	%	$	13,348,133		3.57	%	$	12,642,803		3.80	%	$	12,396,020		4.26	%
Non-interest-bearing liabilities:
Non-interest-bearing
checking		2,651,043					2,633,552					2,600,775					2,672,875					2,575,575
Other liabilities		122,873					119,829					120,291					130,457					122,455
Stockholders' equity		1,762,980					1,716,232					1,670,402					1,624,084					1,574,902
Accumulated other comprehensive
loss		(15,155	)				(25,377	)				(29,453	)				(32,836	)				(41,819	)
Total liabilities and
stockholders' equity	$	17,709,359				$	17,626,503				$	17,710,148				$	17,037,383				$	16,627,133
Net interest spread				2.27	%				2.30	%				2.12	%				2.07	%				1.86	%
Net interest margin				3.09	%				3.10	%				2.92	%				2.96	%				2.84	%

(1) Average loans include nonaccrual loans in all periods. Loan fees of $6,103, $4,430, $3,764, $4,460, and $3,949 are included in interest income in the third quarter of 2025, second quarter of 2025, first quarter of 2025, fourth quarter of 2024, and third 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 $(22,574), $(36,381), $(41,970), $(46,652), and $(58,802) for the third quarter of 2025, second quarter of 2025, first quarter of 2025, fourth quarter of 2024, and third 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 during the second quarter of 2025. Please see "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures."

Contact: ServisFirst Bank
Davis Mange (205) 949-3420
dmange@servisfirstbank.com

ServisFirst Bancshares, Inc. Announces Results For Third Quarter of 2025