{"url_path":"/sec/sfbs/8-k/2026-07-20/body","section_key":"body","section_title":"Body","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-07-20","source_url":"https://www.sec.gov/Archives/edgar/data/1430723/0001171843-26-004772-index.html","accession_number":"0001171843-26-004772","cik":"0001430723","ticker":"SFBS","issuer_name":"ServisFirst Bancshares, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1430723/0001171843-26-004772-index.html","primary_entity_key":"0001430723","primary_entity_name":"ServisFirst Bancshares, Inc."},"word_count":5725,"has_tables":true,"body_markdown":"EX-99.1\n2\nexh_991.htm\nPRESS RELEASE\n\nEdgarFiling\n**EXHIBIT 99.1**\n\n****\n\n**ServisFirst Bancshares, Inc. Announces Results for Second Quarter of 2026**\n\nBIRMINGHAM, Ala., July 20, 2026 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended June 30, 2026.\n\n**Second Quarter 2026 Highlights:**\n\n**Diluted earnings per share of $1.57 for the quarter, up 40% from the second quarter of 2025, and up 30% from adjusted diluted earnings per share in the second quarter of 2025*.**\n\n**Loans grew $533 million, or 15% annualized, during the quarter.**\n\n**Net interest margin of 3.63%, up 10 basis points from the first quarter of 2026 and up 53 basis points from the second quarter of 2025.**\n\n**Book value per share of $36.19, up 14.8% year-over-year.**\n\n**Efficiency ratio under 30%, down from 33% in the second quarter of 2025.**\n\n**Adjusted return on average common stockholders’ equity* increased from 15.68% to 17.71% year-over-year.**\n\n**Cost of interest-bearing deposits of 2.80%, down 53 basis points from the second quarter of 2025.**\n\n**Deposits grew $686 million, or 5%, from the second quarter of 2025.**\n\n**Liquidity remains strong with $1.46 billion in cash and cash equivalents, equaling 8% of our total assets, and no FHLB advances or brokered deposits.**\n\n**Consolidated common equity tier 1 capital to risk-weighted assets increased from 11.38% in the second quarter of 2025 to 11.83% in the second quarter of 2026.**\n\nTom Broughton, Chairman, President, and CEO, said, “We were pleased with the strong loan growth in the quarter and the positive momentum in virtually all our markets for growth with our loan pipeline at record levels.”\n\nDavid Sparacio, CFO, said, “Net Income growth of 30% year-over-year, while maintaining an efficiency ratio below 30%, along with continued improvement in our net interest margin resulted in superior performance, as we have historically delivered.”\n\n* 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, tangible common equity to total tangible assets, adjusted net interest income, adjusted non-interest income, and adjusted non-interest expense. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”\n\n                   \n\nFINANCIAL SUMMARY (UNAUDITED)                  \n\n*(in Thousands except share and per share amounts)* Period Ending June 30, 2026 Period Ending March 31, 2026 % Change From Period Ending March 31, 2026 to Period Ending June 30, 2026 Period Ending June 30, 2025 % Change From Period Ending June 30, 2025 to Period Ending June 30, 2026\n\nQUARTERLY OPERATING RESULTS                  \n\nNet Income $85,793  $82,971  3.4% $61,424  39.7%\n\nNet Income Available to Common Stockholders $85,762  $82,971  3.4% $61,393  39.7%\n\nDiluted Earnings Per Share $1.57  $1.52  3.3% $1.12  40.2%\n\nReturn on Average Assets  1.91%  1.89%     1.40%   \n\nReturn on Average Common Stockholders' Equity  17.71%  17.91%     14.56%   \n\nAverage Diluted Shares Outstanding  54,702,886   54,695,017      54,664,480    \n\n                   \n\nAdjusted Net Income, net of tax* $85,793  $82,971  3.4% $66,133  29.7%\n\nAdjusted Net Income Available to Common                  \n\nStockholders, net of tax* $85,762  $82,971  3.4% $66,102  29.7%\n\nAdjusted Diluted Earnings Per Share, net of tax* $1.57  $1.52  3.3% $1.21  29.8%\n\nAdjusted Return on Average Assets, net of tax*  1.91%  1.89%     1.50%   \n\nAdjusted Return on Average Common                  \n\nStockholders' Equity, net of tax*  17.71%  17.91%     15.68%   \n\n                   \n\nYEAR-TO-DATE OPERATING RESULTS                  \n\nNet Income $168,764         $124,648  35.4%\n\nNet Income Available to Common Stockholders $168,733         $124,617  35.4%\n\nDiluted Earnings Per Share $3.09         $2.28  35.1%\n\nReturn on Average Assets  1.90%         1.42%   \n\nReturn on Average Common Stockholders' Equity  17.81%         15.08%   \n\nAverage Diluted Shares Outstanding  54,698,973          54,660,577    \n\n                   \n\nAdjusted Net Income, net of tax* $168,764         $129,357  30.5%\n\nAdjusted Net Income Available to Common                  \n\nStockholders, net of tax* $168,733         $129,326  30.5%\n\nAdjusted Diluted Earnings Per Share, net of tax* $3.09         $2.36  30.6%\n\nAdjusted Return on Average Assets, net of tax*  1.90%         1.48%   \n\nAdjusted Return on Average Common                  \n\nStockholders' Equity, net of tax*  17.81%         15.65%   \n\n                   \n\nBALANCE SHEET                  \n\nTotal Assets $18,345,498  $18,171,287  1.0% $17,378,628  5.6%\n\nLoans  14,478,489   13,945,913  3.8%  13,232,560  9.4%\n\nNon-interest-bearing Demand Deposits  2,995,402   2,836,622  5.6%  2,632,058  13.8%\n\nTotal Deposits  14,548,730   14,486,364  0.4%  13,862,319  5.0%\n\nStockholders' Equity  1,978,418   1,912,537  3.4%  1,721,783  14.9%\n\n                   \n\n**DETAILED FINANCIALS**\n\nServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $85.8 million for the quarter ended June 30, 2026, compared to $61.4 million for the second quarter of 2025. Basic and diluted earnings per common share were both $1.57 in the second quarter of 2026, compared to $1.52 in the first quarter of 2026 and $1.12 in the second quarter of 2025. The prior-year quarter adjusted diluted earnings per share was $1.21.\n\nAnnualized return on average assets was 1.91% and annualized return on average common stockholders’ equity was 17.71% for the second quarter of 2026, compared to 1.40% and 14.56%, respectively, for the second quarter of 2025.\n\nNet interest income was $155.6 million for the second quarter of 2026, compared to $148.1 million for the first quarter of 2026 and $131.7 million for the second quarter of 2025. The net interest margin in the second quarter of 2026 was 3.63% compared to 3.53% in the first quarter of 2026 and 3.10% in the second quarter of 2025. Loan yields were 6.23% during the second quarter of 2026 compared to 6.18% during the first quarter of 2026 and 6.37% during the second quarter of 2025. During the second quarter of 2026, we recovered $1.9 million in interest income from a large credit relationship that was previously on nonaccrual status. This recovery accounted for five basis points of the increase in loan yields from the first quarter of 2026. Investment yields were 3.81% during the second quarter of 2026 compared to 3.78% during the first quarter of 2026 and 3.37% during the second quarter of 2025. Average interest-bearing deposit rates were 2.80% during the second quarter of 2026, compared to 2.79% during the first quarter of 2026 and 3.33% during the second quarter of 2025. Average federal funds purchased rates were 3.74% during the second quarter of 2026, compared to 3.74% during the first quarter of 2026 and 4.49% during the second quarter of 2025.\n\nAverage loans for the second quarter of 2026 were $14.22 billion, an increase of $440.1 million, or 12.8% annualized, from average loans of $13.78 billion for the first quarter of 2026, and an increase of $1.21 billion, or 9.3%, from average loans of $13.01 billion for the second quarter of 2025. Ending total loans for the second quarter of 2026 were $14.48 billion, an increase of $532.6 million, or 15.3% annualized, from $13.95 billion for the first quarter of 2026, and an increase of $1.25 billion, or 9.4%, from $13.23 billion for the second quarter of 2025.\n\nAverage total deposits for the second quarter of 2026 were $14.32 billion, an increase of $191.8 million, or 5.4% annualized, from average total deposits of $14.13 billion for the first quarter of 2026, and an increase of $423.0 million, or 3.0%, from average total deposits of $13.90 billion for the second quarter of 2025. Ending total deposits for the second quarter of 2026 were $14.55 billion, an increase of $62.4 million, or 1.7% annualized, from $14.49 billion for the first quarter of 2026, and an increase of $686.4 million, or 5.0%, from $13.86 billion for the second quarter of 2025.\n\nNonperforming assets to total assets were 0.96% for the second quarter of 2026, compared to 1.00% for the first quarter of 2026 and 0.42% for the second quarter of 2025. The year-over-year increase was attributable to a large real-estate secured relationship. Annualized net charge-offs to average loans were 0.11% for the second quarter of 2026, compared to 0.25% for the first quarter of 2026 and 0.20% for the second quarter of 2025. The allowance for credit losses to total loans at June 30, 2026, March 31, 2026, and June 30, 2025, was 1.26%, 1.25%, and 1.28%, respectively. We recorded an $11.7 million provision for loan losses in the second quarter of 2026 compared to $10.6 million in the first quarter of 2026, and $11.4 million in the second quarter of 2025.\n\nNon-interest income was $12.9 million for the second quarter of 2026 compared to $0.4 million in the second quarter of 2025, an increase of $12.5 million. Adjusted for $8.6 million of securities losses in the second quarter of 2025, this represented a $3.9 million, or 43.5% increase. Service charges on deposit accounts increased $667,000, or 25.0%, to $3.3 million for the second quarter of 2026 from $2.7 million in the second quarter of 2025, and were relatively flat on a linked quarter basis. We increased our service charge rates on many of our treasury management products in July of 2025. Mortgage banking revenue increased $898,000, or 67.9%, to $2.2 million for the second quarter of 2026 from $1.3 million in the second quarter of 2025, and increased $329,000, or 17.4%, on a linked quarter basis. The increase on a year-over-year basis was primarily due to an increase in loans sold into the secondary market. We also increased our per-loan administrative fee in the first quarter of 2026. Credit card income increased $373,000, or 17.6%, to $2.5 million for the second quarter of 2026 from $2.1 million in the second quarter of 2025, and increased $290,000, or 13.2%, on a linked quarter basis. Bank-owned life insurance (“BOLI”) income increased $2.0 million, or 94.4%, to $4.1 million for the second quarter of 2026 from $2.1 million in the second quarter of 2025, and increased $1.3 million, or 46.5%, on a linked quarter basis. The increases were primarily due to our purchases of $150.0 million of new contracts in the third quarter of 2025 and $25.0 million of new contracts in the second quarter of 2026. Additionally, we had a $1.0 million adjustment related to a correction of BOLI income in the fourth quarter of 2025. Other operating income decreased $37,000, or 5.0%, to $708,000 for the second quarter of 2026 from $745,000 in the second quarter of 2025, and increased $80,000, or 12.7%, on a linked quarter basis.\n\nNon-interest expense increased $5.8 million, or 13.0%, to $50.0 million for the second quarter of 2026 from $44.2 million in the second quarter of 2025, and increased $2.6 million, or 5.4%, on a linked quarter basis. Salary and benefit expense increased $3.7 million, or 16.4%, to $26.3 million for the second quarter of 2026 from $22.6 million in the second quarter of 2025, and decreased $579,000, or 2.2%, on a linked quarter basis. The year-over-year increase was primarily due to the full impact of our Houston market expansion. The number of full-time equivalent employees (excluding temporary employees) increased by 22, or 3.4%, to 663 at June 30, 2026 compared to 641 at June 30, 2025, and increased by three from the end of the first quarter of 2026. Equipment and occupancy expense increased $440,000, or 12.5%, to $4.0 million for the second quarter of 2026 from $3.5 million in the second quarter of 2025, and increased $15,000, or 0.4%, on a linked quarter basis. Third party processing and other services expense decreased $43,000, or 0.5%, to $8.0 million for the second quarter of 2026 from $8.0 million in the second quarter of 2025, and increased $437,000, or 5.8%, on a linked quarter basis. Professional services expense increased $323,000, or 17.0%, to $2.2 million for the second quarter of 2026 from $1.9 million in the second quarter of 2025, and increased $284,000, or 14.6%, on a linked quarter basis. Other operating expenses increased $1.3 million, or 23.8%, to $6.7 million for the second quarter of 2026 from $5.4 million in the second quarter of 2025, and increased $2.4 million, or 54.2%, on a linked quarter basis. The efficiency ratio was 29.65% during the second quarter of 2026 compared to 33.46% during the second quarter of 2025 and 29.80% during the first quarter of 2026.\n\nOur effective tax rate was 19.94% for the second quarter of 2026 compared to 19.82% for the second quarter of 2025, and 17.82% on a linked quarter basis. During the first quarter of 2026, we purchased Investment Tax Credits, which reduced our tax expense. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the second quarters of 2026 and 2025 of $36,000 and $234,000, respectively.\n\n**About ServisFirst Bancshares, Inc.**\n\nServisFirst Bancshares, Inc. (the “Company”) is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank (the “Bank”), the Company provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, Texas and Virginia. Through the 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.\n\nServisFirst 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.\n\nStatements 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 (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). 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. The Company cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company’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, trade wars and other conflicts 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 Federal Deposit Insurance Corporation (\"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, 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 nonbank financial institutions. The foregoing list of factors is not exhaustive. 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, \"Forward-Looking Statements\" and \"Risk Factors\" in our subsequent Quarterly Reports on Form 10-Q 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. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. The Company assumes no obligation to update or revise any forward-looking statements that are made from time to time.\n\nMore information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling (205) 949-0302.\n\n \n\nSELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)\n\n(In thousands except share and per share data)                    \n\n  2nd Quarter 2026 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025\n\nCONSOLIDATED STATEMENT OF INCOME                    \n\nInterest income $249,880  $241,480  $251,388  $251,308  $246,635 \n\nInterest expense  94,243   93,332   104,867   117,860   114,948 \n\nNet interest income  155,637   148,148   146,521   133,448   131,687 \n\nProvision for credit losses  11,412   10,637   7,922   9,463   11,296 \n\nNet interest income after provision for credit losses  144,225   137,511   138,599   123,985   120,391 \n\nNon-interest income  12,892   10,840   15,691   2,833   421 \n\nNon-interest expense  49,961   47,384   46,683   47,996   44,204 \n\nIncome before income tax  107,156   100,967   107,607   78,822   76,608 \n\nProvision for income tax  21,363   17,996   21,223   13,251   15,184 \n\nNet income  85,793   82,971   86,384   65,571   61,424 \n\nPreferred stock dividends  31   -   31   -   31 \n\nNet income available to common stockholders $85,762  $82,971  $86,353  $65,571  $61,393 \n\nEarnings per share - basic $1.57  $1.52  $1.58  $1.20  $1.12 \n\nEarnings per share - diluted $1.57  $1.52  $1.58  $1.20  $1.12 \n\nAverage diluted shares outstanding  54,702,886   54,695,017   54,675,802   54,667,955   54,664,480 \n\n                     \n\nCONSOLIDATED BALANCE SHEET DATA                    \n\nTotal assets $18,345,498  $18,171,287  $17,727,190  $17,584,199  $17,378,628 \n\nLoans  14,478,489   13,945,913   13,696,912   13,311,967   13,232,560 \n\nDebt securities  1,630,531   1,684,421   1,728,901   1,849,739   1,914,503 \n\nNon-interest-bearing demand deposits  2,995,402   2,836,622   2,684,272   2,598,895   2,632,058 \n\nTotal deposits  14,548,730   14,486,364   14,219,034   14,106,922   13,862,319 \n\nBorrowings  34,750   34,750   34,750   64,750   64,747 \n\nStockholders' equity  1,978,418   1,912,537   1,850,347   1,781,647   1,721,783 \n\n                     \n\nShares outstanding  54,671,023   54,663,123   54,624,955   54,621,441   54,618,545 \n\nBook value per share $36.19  $34.99  $33.87  $32.62  $31.52 \n\nTangible book value per share (1) $35.94  $34.74  $33.62  $32.37  $31.27 \n\n                     \n\nSELECTED FINANCIAL RATIOS (Annualized)                    \n\nNet interest margin  3.63%  3.53%  3.38%  3.09%  3.10%\n\nReturn on average assets  1.91%  1.89%  1.91%  1.47%  1.40%\n\nReturn on average common stockholders' equity  17.71%  17.91%  18.93%  14.88%  14.56%\n\nEfficiency ratio  29.65%  29.80%  28.78%  35.22%  33.46%\n\nNon-interest expense to average earning assets  1.16%  1.13%  1.08%  1.11%  1.04%\n\n                     \n\nCAPITAL RATIOS (2)                    \n\nCommon equity tier 1 capital to risk-weighted assets  11.83%  11.86%  11.65%  11.49%  11.38%\n\nTier 1 capital to risk-weighted assets  11.83%  11.87%  11.66%  11.50%  11.38%\n\nTotal capital to risk-weighted assets  13.09%  13.13%  12.93%  12.91%  12.81%\n\nTier 1 capital to average assets  10.93%  10.71%  10.26%  10.01%  9.78%\n\nTangible common equity to total tangible assets (1)  10.72%  10.46%  10.37%  10.06%  9.84%\n\n                     \n\n*(1) This press release contains certain non-GAAP financial measures. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”*\n\n*(2) Regulatory capital ratios for most recent period are preliminary.*\n\n \n\n**GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures**\n\nThis press release 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. This press release also contains the non-GAAP financial measures 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, adjusted efficiency ratio, adjusted net interest income, adjusted non-interest income, and adjusted non-interest expense.\n\nWe 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.\n\n                    \n\n At June 30,\n2026 At March 31,\n2026 At December 31,\n2025  At September 30,\n2025   At June 30,\n2025 \n\nBook value per share - GAAP$36.19   $34.99   $33.87   $32.62   $31.52  \n\nTotal common stockholders' equity - GAAP 1,978,418    1,912,537    1,850,347    1,781,647    1,721,783  \n\nAdjustment for Goodwill (13,615)   (13,615)   (13,615)   (13,615)   (13,615) \n\nTangible common stockholders' equity - non-GAAP$1,964,803   $1,898,922   $1,836,732   $1,768,032   $1,708,168  \n\nTangible book value per share - non-GAAP$35.94   $34.74   $33.62   $32.37   $31.27  \n\n                    \n\nStockholders' equity to total assets - GAAP 10.78 %  10.53 %  10.44 %  10.13 %  9.91 %\n\nTotal assets - GAAP$18,345,498   $18,171,287   $17,727,190   $17,584,199   $17,378,628  \n\nAdjustment for Goodwill (13,615)   (13,615)   (13,615)   (13,615)   (13,615) \n\nTotal tangible assets - non-GAAP$18,331,883   $18,157,672   $17,713,575   $17,570,584   $17,365,013  \n\nTangible common equity to total tangible assets - non-GAAP 10.72 %  10.46 %  10.37 %  10.06 %  9.84 %\n\n                    \n\n          \n\n  Three Months Ended June 30, 2026 Three Months Ended June 30, 2025  Six Months Ended June 30, 2026 Six Months Ended June 30, 2025\n\n                  \n\nNet income - GAAP $85,793  $61,424    $168,764  $124,648  \n\nAdjustments:                 \n\nLegal matter accrual reversal  -   (2,276)    -   (2,276) \n\nLoss on marketable securities  -   8,563     -   8,563  \n\nTax on adjustments  -   (1,578)    -   (1,578) \n\nAdjusted net income - non-GAAP $85,793  $66,133    $168,764  $129,357  \n\n                  \n\nNet income available to common stockholders - GAAP $85,762  $61,393    $168,733  $124,617  \n\nAdjustments:                 \n\nLegal matter accrual reversal  -   (2,276)    -   (2,276) \n\nLoss on marketable securities  -   8,563     -   8,563  \n\nTax on adjustments  -   (1,578)    -   (1,578) \n\nAdjusted net income available to common stockholders - non-GAAP $85,762  $66,102    $168,733  $129,326  \n\n                  \n\nDiluted earnings per share - GAAP $1.57  $1.12    $3.09  $2.28  \n\nAdjustments:                 \n\nLegal matter accrual reversal  -   (0.04)    -   (0.05) \n\nLoss on marketable securities  -   0.16     -   0.16  \n\nTax on adjustments  -   (0.03)    -   (0.03) \n\nAdjusted diluted earnings per share - non-GAAP $1.57  $1.21    $3.09  $2.36  \n\n                  \n\nNet interest income, on a fully taxable-equivalent basis $155,637  $131,777    $303,785  $255,394  \n\nAdjustments:                 \n\nLegal matter accrual reversal  -   (2,276)    -   (2,276) \n\nTax on adjustments  -   571     -   571  \n\nAdjusted net interest income, on a fully taxable-equivalent basis $155,637  $130,072    $303,785  $253,689  \n\n                  \n\nReturn on average assets - GAAP  1.91%  1.40 %   1.90%  1.42 %\n\nNet income available to common stockholders - GAAP $85,762  $61,393    $168,733  $124,617  \n\nAdjustments:                 \n\nLegal matter accrual reversal  -   (2,276)    -   (2,276) \n\nLoss on marketable securities  -   8,563     -   8,563  \n\nTax on adjustments  -   (1,578)    -   (1,578) \n\nAdjusted net income available to common stockholders - non-GAAP $85,762  $66,102    $168,733  $129,326  \n\nAverage assets - GAAP $18,013,805  $17,626,503    $17,746,068  $17,668,094  \n\nAdjusted return on average assets - non-GAAP  1.91%  1.50 %   1.90%  1.48 %\n\n                  \n\nReturn on average common stockholders' equity - GAAP  17.71%  14.56 %   17.81%  15.08 %\n\nNet income available to common stockholders - GAAP $85,762  $61,393    $168,733  $124,617  \n\nAdjustments:                 \n\nLegal matter accrual reversal  -   (2,276)    -   (2,276) \n\nLoss on marketable securities  -   8,563     -   8,563  \n\nTax on adjustments  -   (1,578)    -   (1,578) \n\nAdjusted net income available to common stockholders - non-GAAP $85,762  $66,102    $168,733  $129,326  \n\nAverage common stockholders' equity - GAAP $1,942,571  $1,690,855    $1,910,751  $1,666,039  \n\nAdjusted return on average common stockholders' equity non-GAAP  17.71%  15.68 %   17.81%  15.65 %\n\n                  \n\nEfficiency ratio  29.65%  33.46 %   29.72%  34.22 %\n\nNet interest income - GAAP $155,637  $131,687    $303,785  $255,240  \n\nAdjustments:                 \n\nLegal matter accrual reversal  -   (2,276)    -   (2,276) \n\nAdjusted net interest income - non-GAAP $155,637  $129,411    $303,785  $252,964  \n\nTotal non-interest income - GAAP  12,892   421     23,732   8,698  \n\nAdjustments:                 \n\nLoss on marketable securities  -   8,563     -   8,563  \n\nAdjusted non-interest income - non-GAAP $12,892  $8,984    $23,732  $17,261  \n\nAdjusted net interest income and non-interest income - non-GAAP  168,529   138,395     327,517   270,225  \n\nNon-interest expense - GAAP $49,961  $44,204    $97,345  $90,311  \n\nAdjustments:                 \n\nAdjusted non-interest expense - non-GAAP $49,961  $44,204    $97,345  $90,311  \n\nAdjusted efficiency ratio - non-GAAP  29.65%  31.94 %   29.72%  33.42 %\n\n                    \n\n \n\nCONSOLIDATED BALANCE SHEETS (UNAUDITED)\n\n(Dollars in thousands)\n\n  June 30, 2026 June 30, 2025 % Change\n\nASSETS         \n\nCash and due from banks $115,442  $140,659  (18)%\n\nInterest-bearing balances due from depository institutions  1,089,592   1,236,485  (12)%\n\nFederal funds sold and securities purchased with agreement to resell  251,439   333,760  (25)%\n\nCash and cash equivalents  1,456,473   1,710,904  (15)%\n\nAvailable for sale debt securities, at fair value  995,051   1,227,851  (19)%\n\nHeld to maturity debt securities (fair value of $590,280 and $639,455, respectively)  635,480   686,652  (7)%\n\nRestricted equity securities  12,475   12,156  3 %\n\nMortgage loans held for sale  14,886   22,131  (33)%\n\nLoans  14,478,489   13,232,560  9 %\n\nLess allowance for credit losses  (181,853)  (169,959) 7 %\n\nLoans, net  14,296,636   13,062,601  9 %\n\nPremises and equipment, net  63,648   59,993  6 %\n\nGoodwill  13,615   13,615  - %\n\nOther assets  857,234   582,725  47 %\n\nTotal assets $18,345,498  $17,378,628  6 %\n\nLIABILITIES AND STOCKHOLDERS' EQUITY         \n\nLiabilities:         \n\nDeposits:         \n\nNon-interest-bearing demand $2,995,402  $2,632,058  14 %\n\nInterest-bearing  11,553,328   11,230,261  3 %\n\nTotal deposits  14,548,730   13,862,319  5 %\n\nFederal funds purchased  1,579,388   1,599,135  (1)%\n\nOther borrowings  34,750   64,747  (46)%\n\nOther liabilities  204,212   130,644  56 %\n\nTotal liabilities  16,367,080   15,656,845  5 %\n\nStockholders' equity:         \n\nPreferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at         \n\nJune 30, 2026 and June 30, 2025  -   -  - %\n\nCommon stock, par value $0.001 per share; 200,000,000 shares authorized; 54,671,023 shares         \n\nissued and outstanding at June 30, 2026, and 54,618,545         \n\nshares issued and outstanding at June 30, 2025  55   54  2 %\n\nAdditional paid-in capital  239,317   236,716  1 %\n\nRetained earnings  1,741,070   1,500,767  16 %\n\nAccumulated other comprehensive loss  (2,524)  (16,254) (84)%\n\nTotal stockholders' equity attributable to ServisFirst Bancshares, Inc.  1,977,918   1,721,283  15 %\n\nNoncontrolling interest  500   500  - %\n\nTotal stockholders' equity  1,978,418   1,721,783  15 %\n\nTotal liabilities and stockholders' equity $18,345,498  $17,378,628  6 %\n\n             \n\n \n\nCONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)\n\n(In thousands except per share data)\n\n  Three Months Ended June 30, Six Months Ended June 30,\n\n  2026\n 2025  2026\n 2025 \n\nInterest income:              \n\nInterest and fees on loans $220,731  $206,521  $430,797  $403,457 \n\nInvestment securities  15,827   16,567   31,926   32,596 \n\nFederal funds sold and securities purchased with agreement to resell  4,146   1,592   9,707   1,612 \n\nOther interest and dividends  9,176   21,955   18,930   50,066 \n\nTotal interest income  249,880   246,635   491,360   487,731 \n\nInterest expense:              \n\nDeposits  79,440   93,488   157,725   188,233 \n\nBorrowed funds  14,803   21,460   29,850   44,258 \n\nTotal interest expense  94,243   114,948   187,575   232,491 \n\nNet interest income  155,637   131,687   303,785   255,240 \n\nProvision for credit losses  11,412   11,296   22,049   17,926 \n\nNet interest income after provision for credit losses  144,225   120,391   281,736   237,314 \n\nNon-interest income:              \n\nService charges on deposit accounts  3,338   2,671   6,634   5,229 \n\nMortgage banking  2,221   1,323   4,113   1,936 \n\nCredit card income  2,492   2,119   4,694   4,087 \n\nSecurities losses  -   (8,563)  -   (8,563)\n\nBank-owned life insurance income  4,133   2,126   6,955   4,263 \n\nOther operating income  708   745   1,336   1,746 \n\nTotal non-interest income  12,892   421   23,732   8,698 \n\nNon-interest expenses:              \n\nSalaries and employee benefits  26,274   22,576   53,127   45,455 \n\nEquipment and occupancy expense  3,963   3,523   7,911   7,245 \n\nThird party processing and other services  7,962   8,005   15,487   15,743 \n\nProfessional services  2,227   1,904   4,170   3,837 \n\nFDIC and other regulatory assessments  2,753   2,753   4,260   5,607 \n\nOther real estate owned expense  75   27   95   60 \n\nOther operating expenses  6,707   5,416   12,295   12,364 \n\nTotal non-interest expenses  49,961   44,204   97,345   90,311 \n\nIncome before income taxes  107,156   76,608   208,123   155,701 \n\nProvision for income taxes  21,363   15,184   39,359   31,053 \n\nNet income  85,793   61,424   168,764   124,648 \n\nDividends on preferred stock  31   31   31   31 \n\nNet income available to common stockholders $85,762  $61,393  $168,733  $124,617 \n\nBasic earnings per common share $1.57  $1.12  $3.09  $2.28 \n\nDiluted earnings per common share $1.57  $1.12  $3.09  $2.28 \n\n                 \n\n \n\nLOANS BY TYPE (UNAUDITED)\n\n(In thousands)\n\n                \n\n  2nd Quarter 2026 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025\n\nCommercial, financial and agricultural $3,252,437 $3,189,704 $3,146,736 $2,945,784 $2,966,191\n\nReal estate - construction  1,564,504  1,531,042  1,457,628  1,532,285  1,735,405\n\nReal estate - mortgage:               \n\nOwner-occupied commercial  2,781,375  2,718,512  2,739,823  2,680,055  2,557,711\n\n1-4 family mortgage  1,685,723  1,695,140  1,671,713  1,625,296  1,561,461\n\nNon-owner occupied commercial  5,123,635  4,739,642  4,603,389  4,448,710  4,338,697\n\nSubtotal: Real estate - mortgage  9,590,733  9,153,294  9,014,925  8,754,061  8,457,869\n\nConsumer  70,815  71,873  77,623  79,837  73,095\n\nTotal loans $14,478,489 $13,945,913 $13,696,912 $13,311,967 $13,232,560\n\n                \n\n \n\nSUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)\n\n(Dollars in thousands)                 \n\n 2nd Quarter 2026 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025\n\nAllowance for credit losses:                   \n\nBeginning balance$173,905  $171,683  $170,235  $169,959  $165,034 \n\nLoans charged off:                   \n\nCommercial, financial and agricultural 4,074   8,291   7,695   7,947   6,849 \n\nReal estate - construction 711   -   -   -   - \n\nReal estate - mortgage 5   91   64   1,294   580 \n\nConsumer 79   171   465   109   73 \n\nTotal charge offs 4,869   8,553   8,224   9,350   7,502 \n\nRecoveries:                   \n\nCommercial, financial and agricultural 667   178   1,532   237   959 \n\nReal estate - construction -   -   -   30   - \n\nReal estate - mortgage 396   -   -   -   1 \n\nConsumer 59   35   10   21   58 \n\nTotal recoveries 1,122   213   1,542   288   1,018 \n\nNet charge-offs 3,747   8,340   6,682   9,062   6,484 \n\nProvision for loan losses 11,695   10,562   8,130   9,338   11,409 \n\nEnding balance$181,853  $173,905  $171,683  $170,235  $169,959 \n\n                    \n\nAllowance for credit losses to total loans 1.26%  1.25%  1.25%  1.28%  1.28%\n\n                    \n\nAllowance for credit losses to total average loans 1.28%  1.26%  1.27%  1.29%  1.31%\n\nNet charge-offs to total average loans 0.11%  0.25%  0.20%  0.27%  0.20%\n\n                    \n\nProvision for credit losses to total average loans 0.33%  0.31%  0.24%  0.28%  0.35%\n\nNonperforming assets:                   \n\nNonaccrual loans$169,711  $176,613  $168,351  $166,662  $68,619 \n\nLoans 90+ days past due and accruing 1,242   1,274   478   965   3,549 \n\nOther real estate owned and                   \n\nrepossessed assets 4,834   3,072   2,583   611   311 \n\nTotal$175,787  $180,959  $171,412  $168,238  $72,479 \n\n                    \n\nNonperforming loans to total loans 1.18%  1.28%  1.23%  1.26%  0.55%\n\nNonperforming assets to total assets 0.96%  1.00%  0.97%  0.96%  0.42%\n\nNonperforming assets to earning assets 0.99%  1.05%  1.01%  1.00%  0.43%\n\nAllowance for credit losses to nonaccrual loans 107.15%  98.47%  101.98%  102.14%  247.69%\n\n                    \n\n \n\nCONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)\n\n(In thousands except per share data)         \n\n  2nd Quarter 2026 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025\n\nInterest income:               \n\nInterest and fees on loans $220,731 $210,066 $214,252 $210,987  $206,521 \n\nInvestment securities  15,827  16,099  17,204  17,343   16,567 \n\nFederal funds sold and securities purchased with agreement to resell  4,146  5,561  5,671  4,724   1,592 \n\nOther interest and dividends  9,176  9,754  14,261  18,254   21,955 \n\nTotal interest income  249,880  241,480  251,388  251,308   246,635 \n\nInterest expense:               \n\nDeposits  79,440  78,285  86,920  98,735   93,488 \n\nBorrowed funds  14,803  15,047  17,947  19,125   21,460 \n\nTotal interest expense  94,243  93,332  104,867  117,860   114,948 \n\nNet interest income  155,637  148,148  146,521  133,448   131,687 \n\nProvision for credit losses  11,412  10,637  7,922  9,463   11,296 \n\nNet interest income after provision for credit losses  144,225  137,511  138,599  123,985   120,391 \n\nNon-interest income:               \n\nService charges on deposit accounts  3,338  3,296  3,339  3,316   2,671 \n\nMortgage banking  2,221  1,892  1,664  1,864   1,323 \n\nCredit card income  2,492  2,202  1,835  2,405   2,119 \n\nSecurities losses  -  -  -  (7,812)  (8,563)\n\nBank-owned life insurance income  4,133  2,822  8,149  2,405   2,126 \n\nOther operating income  708  628  704  655   745 \n\nTotal non-interest income  12,892  10,840  15,691  2,833   421 \n\nNon-interest expenses:               \n\nSalaries and employee benefits  26,274  26,853  23,838  25,522   22,576 \n\nEquipment and occupancy expense  3,963  3,948  3,737  3,615   3,523 \n\nThird party processing and other services  7,962  7,525  7,779  8,095   8,005 \n\nProfessional services  2,227  1,943  1,481  1,857   1,904 \n\nFDIC and other regulatory assessments  2,753  2,745  2,641  2,742   2,753 \n\nOther real estate owned expense  75  20  13  82   27 \n\nOther operating expenses  6,707  4,350  7,194  6,083   5,416 \n\nTotal non-interest expenses  49,961  47,384  46,683  47,996   44,204 \n\nIncome before income taxes  107,156  100,967  107,607  78,822   76,608 \n\nProvision for income taxes  21,363  17,996  21,223  13,251   15,184 \n\nNet income  85,793  82,971  86,384  65,571   61,424 \n\nDividends on preferred stock  31  -  31  -   31 \n\nNet income available to common stockholders $85,762 $82,971 $86,353 $65,571  $61,393 \n\nBasic earnings per common share $1.57 $1.52 $1.58 $1.20  $1.12 \n\nDiluted earnings per common share $1.57 $1.52 $1.58 $1.20  $1.12 \n\n                  \n\n \n\nAVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)\n\nON A FULLY TAXABLE-EQUIVALENT BASIS\n\n(Dollars in thousands)\n\n                               \n\n  2nd Quarter 2026 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025\n\n  Average Balance Yield / Rate Average Balance Yield / Rate Average Balance Yield / Rate Average Balance Yield / Rate Average Balance Yield / Rate\n\nAssets:                              \n\nInterest-earning assets:                              \n\nLoans, net of unearned income (1)                              \n\nTaxable $14,198,439  6.18% $13,751,447  6.18% $13,474,271  6.30% $13,175,297  6.34% $12,979,759  6.37%\n\nTax-exempt (2)  26,082  37.03   32,976  5.82   30,670  5.52   30,478  5.47   30,346  5.51 \n\nTotal loans, net of unearned                              \n\nincome  14,224,521  6.23   13,784,423  6.18   13,504,941  6.29   13,205,775  6.34   13,010,105  6.37 \n\nMortgage loans held for sale  13,327  5.30   10,680  4.40   9,887  4.49   11,351  4.82   11,739  5.23 \n\nDebt securities:                              \n\nTaxable  1,659,147  3.81   1,702,499  3.78   1,826,632  3.77   1,926,101  3.60   1,965,089  3.37 \n\nTax-exempt (2)  444  5.41   444  5.41   444  5.41   444  5.41   492  4.88 \n\nTotal securities (3)  1,659,591  3.81   1,702,943  3.78   1,827,076  3.77   1,926,545  3.60   1,965,581  3.37 \n\nFederal funds sold and securities                              \n\npurchased with agreement to resell  372,645  4.46   501,377  4.50   469,148  4.79   365,733  5.12   124,303  5.14 \n\nRestricted equity securities  12,456  6.41   12,228  6.17   12,193  6.61   12,167  6.36   12,146  6.64 \n\nInterest-bearing balances with banks  964,808  3.73   1,041,026  3.73   1,393,155  4.00   1,608,118  4.45   1,952,479  4.47 \n\nTotal interest-earning assets $17,247,348  5.82% $17,052,677  5.75% $17,216,400  5.79% $17,129,689  5.82% $17,076,353  5.80%\n\nNon-interest-earning assets:                              \n\nCash and due from banks  96,648      103,847      102,066      103,470      109,506    \n\nNet premises and equipment  63,303      61,253      61,009      60,614      59,944    \n\nAllowance for credit losses, accrued                              \n\ninterest and other assets  606,506      552,337      556,704      415,586      380,700    \n\nTotal assets $18,013,805     $17,770,114     $17,936,179     $17,709,359     $17,626,503    \n\n                               \n\nInterest-bearing liabilities:                              \n\nInterest-bearing deposits:                              \n\nChecking $2,050,758  1.69% $2,101,953  1.60% $2,126,615  1.77% $2,069,440  2.16% $2,222,000  1.78%\n\nSavings  112,077  1.41   110,843  1.42   106,551  1.52   103,668  1.66   101,506  1.63 \n\nMoney market  7,956,884  3.03   7,812,168  3.01   7,816,487  3.23   7,965,115  3.67   7,616,747  3.67 \n\nTime deposits  1,274,496  3.26   1,373,023  3.42   1,392,749  3.80   1,344,257  3.97   1,321,404  4.09 \n\nTotal interest-bearing deposits  11,394,215  2.80   11,397,987  2.79   11,442,402  3.01   11,482,480  3.41   11,261,657  3.33 \n\nFederal funds purchased  1,549,520  3.74   1,593,215  3.74   1,712,399  4.01   1,640,377  4.46   1,855,860  4.49 \n\nOther borrowings  34,750  4.02   34,750  4.05   59,207  4.21   64,761  4.21   64,750  4.26 \n\nTotal interest-bearing liabilities $12,978,485  2.91% $13,025,952  2.91% $13,214,008  3.15% $13,187,618  3.55% $13,182,267  3.50%\n\nNon-interest-bearing liabilities:                              \n\nNon-interest-bearing                              \n\nchecking  2,923,956      2,728,354      2,768,495      2,651,043      2,633,552    \n\nOther liabilities  168,793      137,231      143,680      122,873      119,829    \n\nStockholders' equity  1,944,735      1,879,072      1,813,097      1,762,980      1,716,232    \n\nAccumulated other comprehensive                              \n\nloss  (2,164)     (495)     (3,101)     (15,155)     (25,377)   \n\nTotal liabilities and                              \n\nstockholders' equity $18,013,805     $17,770,114     $17,936,179     $17,709,359     $17,626,503    \n\nNet interest spread    2.91%    2.84%    2.64%    2.27%    2.30%\n\nNet interest margin    3.63%    3.53%    3.38%    3.09%    3.10%\n\n                               \n\n(1) Average loans include nonaccrual loans in all periods. Loan fees of $4,763, $5,186, $5,464, $6,103, and $4,430 are included in interest income in the second quarter of 2026, first quarter of 2026, fourth quarter of 2025, third quarter of 2025, and second quarter of 2025, respectively.\n\n(2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%.\n\n(3) Unrealized losses on debt securities of $(4,830), $(2,713), $(6,311), $(22,574), and $(36,381) for the second quarter of 2026, first quarter of 2026, fourth quarter of 2025, third quarter of 2025, and second quarter of 2025, respectively, are excluded from the yield calculation.\n\n \n\nContact: ServisFirst Bank\nDavis Mange (205) 949-3420\ndmange@servisfirstbank.com"}