Financial Performance - Net income for the three months ended September 30, 2025, was $65,571 thousand, compared to $59,907 thousand for the same period in 2024, marking a 9.0% increase[11]. - Basic earnings per common share increased to $1.20 for the three months ended September 30, 2025, up from $1.10 in the same period of 2024, a growth of 9.1%[11]. - Comprehensive income for the three months ended September 30, 2025, was $77,584 thousand, compared to $74,793 thousand for the same period in 2024, an increase of 3.8%[13]. - Net income for the nine months ended September 30, 2025, was $190,219,000, an increase from $162,069,000 in 2024, representing a growth of approximately 17.5%[21]. - Basic earnings per common share for the nine months ended September 30, 2025, was $3.48, compared to $2.97 for the same period in 2024, reflecting a year-over-year increase of 17.2%[28]. Asset and Equity Growth - Total assets increased to $17,584,199 thousand as of September 30, 2025, compared to $17,351,643 thousand at December 31, 2024, reflecting a growth of 1.34%[8]. - Total stockholders' equity attributable to ServisFirst Bancshares, Inc. increased to $1,781,147 thousand as of September 30, 2025, from $1,616,272 thousand at December 31, 2024, a growth of 10.2%[8]. - The allowance for credit losses was $170,235 thousand as of September 30, 2025, compared to $164,458 thousand at December 31, 2024, reflecting an increase of 3.4%[8]. Deposits and Interest Income - Total deposits reached $14,106,922 thousand as of September 30, 2025, compared to $13,543,459 thousand at December 31, 2024, indicating an increase of 4.1%[8]. - Net interest income after provision for credit losses rose to $123,985 thousand for the three months ended September 30, 2025, up from $109,462 thousand in the same period of 2024, representing a 13.9% increase[11]. - Interest-bearing checking deposits rose to $10,061,648 thousand, up 5.8% from $9,511,161 thousand in the previous year[87]. Credit Losses and Provisions - Provision for credit losses increased to $9,463 thousand for the three months ended September 30, 2025, compared to $5,659 thousand in the same period of 2024, reflecting a rise of 67.5%[11]. - The allowance for credit losses (ACL) on loans increased to $170,235,000 as of September 30, 2025, up from $160,755,000 a year earlier, reflecting a year-over-year increase of approximately 2.95%[64]. - The total charge-offs for the nine months ended September 30, 2025, were $22,942,000, compared to $9,016,000 for the same period in 2024, reflecting an increase of 154.5%[66]. Loan Portfolio and Performance - As of September 30, 2025, total loans amounted to $13,311,967,000, an increase from $12,605,836,000 as of December 31, 2024, representing a growth of approximately 5.58%[45]. - The loan portfolio includes $2,945,784,000 in commercial, financial, and agricultural loans, up from $2,869,894,000, indicating a growth of 2.63%[45]. - Real estate mortgage loans totaled $8,754,061,000, which is an increase from $8,173,009,000, reflecting a growth of 7.10%[45]. Dividends and Stockholder Returns - Common dividends declared at $0.30 per share, totaling $16,365[16]. - Common dividends declared increased to $0.335 per share for the period ending July 1, 2025, totaling $18,297[16]. - The company paid $54,868,000 in dividends on common stock during the nine months ended September 30, 2025, compared to $49,046,000 in 2024, representing an increase of 11.5%[21]. Securities and Investments - The amortized cost of U.S. Treasury securities was $669,701,000 with a fair value of $672,566,000 as of September 30, 2025[29]. - The company reported a loss on the sale of securities available for sale amounting to $16,375,000 for the nine months ended September 30, 2025[21]. - The total debt securities available-for-sale decreased from $1.207 billion in December 31, 2024, to $1.186 billion in September 30, 2025[32]. Operational and Strategic Focus - The company is focused on maintaining its market position and exploring new strategies for growth[17]. - Future guidance indicates a stable outlook with no significant changes expected in key financial metrics[17]. - The company continues to invest in new product development and market expansion initiatives[17]. Lease and Compensation Expenses - The company had lease right-of-use assets totaling $23.0 million and lease liabilities of $24.1 million as of September 30, 2025[77]. - The stock incentive plan incurred a compensation cost of approximately $629,000 for the three months ended September 30, 2025, compared to $1.0 million in 2024[81]. - The total unrecognized compensation cost related to unvested time-based restricted stock as of September 30, 2025, was $5.6 million[84].

Core Insights - ServisFirst Bancshares, Inc. (SFBS) is a significant entity in the Zacks Financial - Savings and Loan industry, providing a variety of banking services in the southeastern United States, despite challenges in meeting analyst expectations for earnings and revenue [1][5] Financial Performance - SFBS reported an earnings per share (EPS) of $1.30, which was below the expected $1.38, resulting in a negative EPS surprise of 5.8% [2][6] - The revenue for the quarter was approximately $136.3 million, reflecting a 10.2% increase year-over-year but falling short of the anticipated $151.9 million, leading to an 8.41% miss from the Zacks Consensus Estimate [3][6] Operational Metrics - The company's net interest margin improved to 3.09%, indicating robust operational performance [4][6] - Loans and deposits grew by 7.9% and 7.3% respectively, showcasing solid operational footing [4][6] Financial Ratios - SFBS's price-to-earnings (P/E) ratio was approximately 16.70, with a price-to-sales ratio of about 4.16 [5] - The debt-to-equity ratio stood at 0.97, indicating moderate leverage, while the current ratio of 0.12 points to challenges in short-term liquidity [5]

Core Insights - ServisFirst Bancshares reported revenue of $136.28 million for the quarter ended September 2025, reflecting a year-over-year increase of 10.2% but falling short of the Zacks Consensus Estimate by 8.41% [1] - The earnings per share (EPS) for the quarter was $1.30, an increase from $1.10 in the same quarter last year, but below the consensus estimate of $1.38, resulting in an EPS surprise of -5.8% [1] Financial Performance Metrics - Efficiency Ratio was reported at 35.2%, higher than the average estimate of 31.5% from two analysts [4] - Net charge-offs to total average loans stood at 0.3%, compared to the average estimate of 0.2% [4] - Net Interest Margin was 3.1%, slightly below the estimated 3.2% [4] - Average Balance of Interest-earning Assets was $17.13 billion, lower than the average estimate of $17.39 billion [4] - Net Interest Income was reported at $133.45 million, below the average estimate of $139.64 million [4] - Total Non-interest income was $2.83 million, significantly lower than the average estimate of $9.15 million [4] - Credit card income was $2.41 million, exceeding the average estimate of $2.28 million [4] - Service charges on deposit accounts reached $3.32 million, above the average estimate of $2.73 million [4] - Mortgage banking income was $1.86 million, higher than the estimated $1.28 million [4] - Other Operating Income was reported at $0.66 million, slightly below the average estimate of $0.83 million [4] Stock Performance - Shares of ServisFirst have declined by 10.7% over the past month, contrasting with a 1.1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported net income of $65.6 million and diluted earnings per share of $1.20, representing an 18% increase from the same quarter last year [9][10] - Pre-provision net revenue was $88.3 million, with a return on average assets of 1.47% and a return on common equity of 14.9% [9][10] - The book value grew by an annualized 14% from the previous quarter, ending at $32.37 per share [10] Business Line Data and Key Metrics Changes - Loan growth was below expectations, with loan paybacks increasing by $500 million over the prior two quarters [3][4] - The loan pipeline increased by over 10% in October compared to September and is 40% higher than a year ago [3][4] - Non-performing assets rose to $930 million, an increase of approximately $96 million during the quarter [8] Market Data and Key Metrics Changes - The company experienced a reduction in high-cost municipal deposits, offset by large corporate deposit inflows [4][5] - All markets are now profitable, a first for the company since its inception [5] Company Strategy and Development Direction - The company aims to manage down total deposit costs as the Federal Reserve reduces the Fed Funds rate [4][5] - There is a focus on organic loan and deposit growth, with competitive and profitable pricing strategies [14] - The company is exploring opportunities in Texas, emphasizing the importance of local relationships in that market [48] Management's Comments on Operating Environment and Future Outlook - Management noted that lending activity softened in the third quarter but has been robust moving into the fourth quarter [7] - The company expects continued margin expansion due to anticipated rate cuts by the Federal Reserve [11][26] - Management expressed confidence in resolving several material credits in the near future [8] Other Important Information - The company recognized a loss of $7.8 million on the sale of bonds and invested in a solar tax credit, benefiting from a reduced tax provision [9][10] - The efficiency ratio improved from 36.90% in the third quarter of 2024 to 35.22% in the third quarter of 2025 [13] Q&A Session Summary Question: What pushed the borrower to non-performing status? - Management indicated that substantial additional collateral was taken, and a large payment expected before quarter-end did not materialize, leading to the non-accrual status [21] Question: What is the loan-to-value on the loans? - The loan-to-value is currently below one-to-one, with adequate security to cover the loans [23] Question: What is the expectation for margin improvement? - Management expects a 7 to 10 basis points improvement in margin each quarter, with a normalized spot rate for September at 3.28% [25][47] Question: Where is loan demand currently? - Loan demand is described as "okay," with a desire for more commercial and industrial loans rather than commercial real estate [31] Question: What is the effective tax rate going forward? - The effective tax rate is expected to remain around 18.9% for the year, with a goal to keep it below 20% [40]

Core Viewpoint - ServisFirst Bancshares reported quarterly earnings of $1.3 per share, missing the Zacks Consensus Estimate of $1.38 per share, representing an earnings surprise of -5.80% [1] - The company posted revenues of $136.28 million for the quarter, missing the Zacks Consensus Estimate by 8.41% [2] Financial Performance - Earnings per share (EPS) for the current quarter was $1.3, compared to $1.1 per share a year ago [1] - Revenues increased from $123.67 million year-over-year to $136.28 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [2] Market Performance - ServisFirst shares have declined approximately 11.3% since the beginning of the year, while the S&P 500 has gained 13.3% [3] - The current Zacks Rank for ServisFirst is 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.42 on revenues of $152.7 million, and for the current fiscal year, it is $5.17 on revenues of $565.4 million [7] - The outlook for the Financial - Savings and Loan industry is favorable, ranking in the top 37% of Zacks industries, which historically outperforms the bottom 50% by a factor of more than 2 to 1 [8]

Financial Data and Key Metrics Changes - The company reported net income of $65.6 million and diluted earnings per share of $1.20, representing an 18% increase from the same quarter last year [9] - Pre-provision net revenue was $88.3 million, with a return on average assets of 1.47% and a return on common equity of 14.9% [9] - The book value grew by an annualized 14% from the previous quarter, ending at $32.37 per share [10] - Net interest income for the quarter was $133.4 million, with a normalized net interest margin of 3.19% [10][12] Business Line Data and Key Metrics Changes - Loan growth was below expectations, with loan paybacks increasing by $500 million over the prior two quarters [3] - The loan pipeline increased by over 10% in October compared to September and is 40% higher than a year ago [3][4] - Non-performing assets rose to $930 million, an increase of approximately $96 million during the quarter [7] Market Data and Key Metrics Changes - The company experienced a reduction in high-cost municipal deposits, offset by large corporate deposit inflows [4] - All markets are now profitable, a first since the company's inception [5] Company Strategy and Development Direction - The company aims to manage down total deposit costs as the Federal Reserve reduces the Fed Funds rate [4] - Focus on organic loan and deposit growth while maintaining competitive pricing [14] - The company is exploring opportunities in Texas, emphasizing the importance of local relationships [43] Management's Comments on Operating Environment and Future Outlook - Management noted that lending activity softened in Q3 but has been robust moving into Q4 [6] - The company expects continued margin expansion due to anticipated Federal Reserve rate cuts [11][26] - Management expressed confidence in resolving non-performing loans and maintaining credit quality [8][18] Other Important Information - The company recognized a loss of $7.8 million on the sale of bonds and invested in a solar tax credit, benefiting from a reduced tax provision [9][15] - The company has a total NDFI exposure of $71 million, which is less than 1% of the loan portfolio, indicating a cautious approach to risk [16][17] Q&A Session Summary Question: What pushed the borrower to non-performing status? - Management indicated that substantial additional collateral was taken, and a large payment expected did not materialize, leading to the non-accrual status [21] Question: What is the loan-to-value on the loans? - The loan-to-value is believed to be below one-to-one, with adequate security to cover the loans [23] Question: What is the expected margin improvement with upcoming Federal Reserve cuts? - Management expects a 7 to 10 basis points improvement in margin each quarter, with current normalized rates at 3.28% [25][41] Question: Are there new markets of interest for the company? - The company is particularly interested in Texas, emphasizing the need for local relationships to succeed in that market [43] Question: What is the effective tax rate going forward? - The effective tax rate is expected to remain around 18.9% for the year, with efforts to keep it below 20% [39]

Financial Data and Key Metrics Changes - The company reported net income of $65.6 million and diluted earnings per share of $1.20, representing an 18% increase from the same quarter last year [11] - Pre-provision net revenue was $88.3 million, with a return on average assets of 1.47% and a return on common equity of 14.9% [11] - The book value grew by an annualized 14% from the previous quarter, ending at $32.37 per share [13] - Net interest income was reported at $133.4 million, with a normalized net interest income of $137.8 million, resulting in a net interest margin of 3.09% [13][14] Business Line Data and Key Metrics Changes - Loan growth was below expectations, with loan paydowns increasing by $500 million over the prior two quarters [4] - The loan pipeline increased by over 10% in October compared to September and is 40% higher than a year ago [4][5] - Non-performing assets increased by approximately $96 million during the quarter, primarily due to a relationship with a large merchant developer [9] Market Data and Key Metrics Changes - The company hired seven new producers across its markets, achieving profitability in all markets for the first time [7] - The company is managing down total deposit costs as the Federal Reserve reduces the Fed funds rate [6] Company Strategy and Development Direction - The company aims to focus on organic loan and deposit growth while managing non-interest expenses [18] - There is a strategic emphasis on non-interest income growth through credit cards, merchant services, and treasury management products [16] - The company is exploring opportunities in Texas, aiming to attract local talent and customers [62] Management's Comments on Operating Environment and Future Outlook - Management noted that lending activity softened in Q3 but has been robust moving into Q4 [8] - The company expects continued margin expansion due to anticipated rate cuts from the Federal Reserve [14][33] - Management expressed confidence in the loan pipeline and expects a good close in loan growth for Q4 [6][41] Other Important Information - The company recognized a loss of $7.8 million on the sale of bonds and invested in a solar tax credit, benefiting from a $2.4 million tax provision [12][19] - The company has a total NDFI exposure of $71 million, which is less than 1% of its loan portfolio, indicating a cautious approach to lending in riskier categories [21] Q&A Session Summary Question: What pushed the borrower to nonperforming status? - Management indicated that additional collateral was obtained, but a large payment expected before quarter-end did not materialize, leading to the non-accrual status [28][29] Question: What is the loan-to-value ratio on the loans? - Management stated that while the loan-to-value is elevated, it is believed to be below one-to-one, with adequate security to cover the loans [31] Question: What are the expectations for margin improvement? - Management expects a 7 to 10 basis point improvement in margin each quarter, with a normalized spot rate for September at 3.28% [33][34] Question: What is the outlook for loan demand? - Management noted that loan demand is currently okay, with commercial real estate being a stronger area, but overall demand is not great [41] Question: What is the effective tax rate going forward? - The effective tax rate is expected to remain around 18.9% for the year, with efforts to keep it below 20% in the future [54]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of ServisFirst Bancshares' strong Q3 2025 financial performance and management's positive outlook on profitability and growth [Third Quarter 2025 Highlights](index=1&type=section&id=Third%20Quarter%202025%20Highlights) ServisFirst Bancshares, Inc. reported strong profitability across all regions in Q3 2025, with significant year-over-year growth in earnings, loans, and deposits, alongside an expanded net interest margin and improved adjusted return on average common stockholders' equity - All regions and markets were **solidly profitable** in Q3 2025, with newer offices reaching profitability[4](index=4&type=chunk) - Net interest margin **expanded**, and pricing discipline was maintained on both loans and deposits[4](index=4&type=chunk) Key Financial Highlights (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 | Q3 2024 | % Change YoY | | :------------------------------------- | :------ | :------ | :----------- | | Diluted Earnings Per Share (GAAP) | $1.20 | $1.10 | 9.1% | | Adjusted Diluted Earnings Per Share | $1.30 | $1.10 | 18.2% | | Net Interest Margin | 3.09% | 2.84% | +25 bps | | Loans Growth | $973.7M | - | 7.9% | | Deposits Growth | $960.4M | - | 7.3% | | Book Value Per Share | $32.62 | $28.79 | 13.3% | | Adjusted Return on Average Common Stockholders' Equity | 16.21% | 15.55% | +66 bps | - Liquidity remains strong with **$1.77 billion** in cash and cash equivalent assets (**10.1%** of total assets), with no FHLB advances or brokered deposits[6](index=6&type=chunk) - Consolidated common equity tier 1 capital to risk-weighted assets **increased from 11.25% to 11.49%** year-over-year[6](index=6&type=chunk) - Sold **$83.4 million** of low-yielding bonds at a loss and reinvested in higher-yielding securities during Q3 2025[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed satisfaction with the solid profitability across all markets, the expansion of net interest margin, and consistent year-over-year growth in earnings and shareholder returns - Tom Broughton, Chairman, President, and CEO, highlighted **solid profitability** across all regions and markets, with newer offices achieving profitability[4](index=4&type=chunk) - David Sparacio, CFO, noted satisfaction with the **continued expansion of net interest margin** and effective pricing discipline on loans and deposits, contributing to **solid year-over-year earnings growth** and top shareholder returns[4](index=4&type=chunk) [Financial Summary (Unaudited)](index=1&type=section&id=FINANCIAL%20SUMMARY%20(UNAUDITED)) This section presents key unaudited quarterly and year-to-date operating results and balance sheet data, highlighting financial performance and position [Quarterly Operating Results](index=1&type=section&id=Quarterly%20Operating%20Results) The company reported a 6.8% sequential increase in net income and net income available to common stockholders, reaching $65.6 million, and a 7.1% increase in diluted EPS to $1.20 for Q3 2025 Quarterly Operating Results (Q3 2025 vs. Q2 2025 vs. Q3 2024) (in thousands, except per share and percentages) | Metric | Sep 30, 2025 | Jun 30, 2025 | % Change QoQ | Sep 30, 2024 | % Change YoY | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | 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% | - | | Adjusted Net Income, net of tax* | $71,422 | $66,133 | 8.0% | $59,907 | 19.2% | | Adjusted Diluted Earnings Per Share, net of tax* | $1.30 | $1.21 | 7.4% | $1.10 | 18.2% | [Year-to-Date Operating Results](index=2&type=section&id=Year-to-Date%20Operating%20Results) For the nine months ended September 30, 2025, net income increased by 17.4% year-over-year to $190.2 million, with diluted EPS rising 17.2% to $3.48, and adjusted metrics showed even stronger growth Year-to-Date Operating Results (Nine Months Ended Sep 30, 2025 vs. 2024) (in thousands, except per share and percentages) | Metric | Sep 30, 2025 | Sep 30, 2024 | % Change YoY | | :------------------------------------- | :----------- | :----------- | :----------- | | 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% | - | | Adjusted Net Income, net of tax* | $200,779 | $163,416 | 22.9% | | Adjusted Diluted Earnings Per Share, net of tax* | $3.67 | $2.99 | 22.7% | [Balance Sheet Data](index=2&type=section&id=Balance%20Sheet%20Data) As of September 30, 2025, total assets grew by 6.9% year-over-year to $17.58 billion, driven by a 7.9% increase in loans and a 7.3% increase in total deposits, with stockholders' equity also seeing a substantial 13.5% increase Balance Sheet Data (As of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Metric (in Thousands) | Sep 30, 2025 | Jun 30, 2025 | % Change QoQ | Sep 30, 2024 | % Change YoY | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | 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 Financial Review](index=2&type=section&id=Detailed%20Financial%20Review) This section provides an in-depth analysis of the company's net income, net interest margin, loan and deposit growth, asset quality, and non-interest income and expenses [Net Income and EPS Analysis](index=2&type=section&id=Net%20Income%20and%20EPS%20Analysis) ServisFirst Bancshares reported a net income of $65.6 million for Q3 2025, an increase from $61.4 million in Q2 2025 and $59.9 million in Q3 2024, with basic and diluted earnings per common share both at $1.20 in Q3 2025, up from $1.12 in Q2 2025 and $1.10 in Q3 2024 Net Income and EPS (Q3 2025 vs. Q2 2025 vs. Q3 2024) (in millions, except per share) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------------------------- | :------ | :------ | :------ | | Net Income | $65.6 million | $61.4 million | $59.9 million | | Net Income Available to Common Stockholders | $65.6 million | $61.4 million | $59.9 million | | Basic and Diluted EPS | $1.20 | $1.12 | $1.10 | Annualized Returns (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 | Q3 2024 | | :------------------------------------- | :------ | :------ | | Return on Average Assets | 1.47% | 1.43% | | Return on Average Common Stockholders' Equity | 14.88% | 15.55% | [Net Interest Income and Margin Analysis](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin%20Analysis) Net interest income increased to $133.4 million in Q3 2025, up from $115.1 million in Q3 2024, with the net interest margin at 3.09%, an increase from 2.84% YoY, but slightly down from 3.10% QoQ (3.06% adjusted for a legal accrual reversal) Net Interest Income and Margin (Q3 2025 vs. Q2 2025 vs. Q3 2024) (in millions, except percentages) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------------------------- | :------ | :------ | :------ | | Net Interest Income | $133.4 million | $131.7 million | $115.1 million | | Net Interest Margin | 3.09% | 3.10% (3.06% adjusted) | 2.84% | | Loan Yields | 6.34% | 6.37% | 6.62% | | Investment Yields | 3.60% | 3.37% | 3.57% | | Average Interest-Bearing Deposit Rates | 3.41% | 3.33% (3.41% adjusted) | 4.12% | - The net interest margin in Q2 2025 was negatively impacted by a **$2.3 million** accrual reversal related to a legal matter, which, when adjusted, brings the Q2 2025 margin to **3.06%**[10](index=10&type=chunk) [Loan and Deposit Growth Analysis](index=2&type=section&id=Loan%20and%20Deposit%20Growth%20Analysis) Average loans for Q3 2025 increased by $195.7 million (6.0% annualized) QoQ and $839.1 million (6.8%) YoY, reaching $13.21 billion, with ending total loans at $13.31 billion, up 7.9% YoY; average total deposits grew by $238.3 million (6.8% annualized) QoQ and $617.8 million (4.6%) YoY, reaching $14.13 billion, with ending total deposits at $14.11 billion, up 7.3% YoY Loan Growth (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric | Q3 2025 | Q2 2025 | Change QoQ | Q3 2024 | Change YoY | | :------------------------------------- | :------ | :------ | :--------- | :------ | :--------- | | Average Loans | $13.21 billion | $13.01 billion | +$195.7 million (6.0% annualized) | $12.37 billion | +$839.1 million (6.8%) | | Ending Total Loans | $13.31 billion | $13.23 billion | +$79.4 million (2.4% annualized) | $12.34 billion | +$973.7 million (7.9%) | Deposit Growth (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric | Q3 2025 | Q2 2025 | Change QoQ | Q3 2024 | Change YoY | | :------------------------------------- | :------ | :------ | :--------- | :------ | :--------- | | Average Total Deposits | $14.13 billion | $13.90 billion | +$238.3 million (6.8% annualized) | $13.52 billion | +$617.8 million (4.6%) | | Ending Total Deposits | $14.11 billion | $13.86 billion | +$244.6 million (7.1% annualized) | $13.15 billion | +$960.4 million (7.3%) | [Asset Quality and Credit Loss Experience](index=3&type=section&id=Asset%20Quality%20and%20Credit%20Loss%20Experience) Asset quality metrics showed an increase in non-performing assets to total assets to 0.96% in Q3 2025, primarily due to a large real-estate secured relationship, with net charge-offs to average loans also increasing to 0.27%, while the allowance for credit losses remained stable at 1.28% of total loans Asset Quality Metrics (Q3 2025 vs. Q2 2025 vs. Q3 2024) (in millions, except percentages) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------------------------- | :------ | :------ | :------ | | Non-performing assets to total assets | 0.96% | 0.42% | 0.25% | | Annualized net charge-offs to average loans | 0.27% | 0.20% | 0.09% | | Allowance for credit losses as % of total loans | 1.28% | 1.28% | 1.30% | | Provision for credit losses | $9.3 million | $11.4 million | $5.4 million | - The year-over-year increase in non-performing assets was driven by a large, real-estate secured relationship[13](index=13&type=chunk) - During Q3 2025, **$3.0 million** was charged off on loans not previously impaired[13](index=13&type=chunk) [Non-Interest Income Analysis](index=3&type=section&id=Non-Interest%20Income%20Analysis) Total non-interest income decreased by 66.9% year-over-year to $2.8 million in Q3 2025, primarily due to a $7.8 million loss on the sale of available-for-sale debt securities as part of a portfolio restructuring, but increased significantly by 572.9% on a linked-quarter basis Non-Interest Income (Q3 2025 vs. Q3 2024 vs. Q2 2025) (in millions, except percentages) | Metric | Q3 2025 | Q3 2024 | % Change YoY | Q2 2025 | % Change QoQ | | :------------------------------------- | :------ | :------ | :----------- | :------ | :----------- | | Total Non-interest Income | $2.8 million | $8.5 million | (66.9)% | $0.4 million | 572.9% | | Service Charges on Deposit Accounts | $3.3 million | $2.3 million | 41.6% | $2.7 million | 24.1% | | Mortgage Banking Revenue | $1.9 million | $1.4 million | 37.9% | $1.3 million | 40.9% | | Net Credit Card Income | $2.4 million | $1.9 million | 24.9% | $2.1 million | 13.5% | | Securities Losses | ($7.8 million) | $0 | - | ($8.6 million) | - | | Bank-Owned Life Insurance (BOLI) Income | $2.4 million | $2.1 million | 13.8% | $2.1 million | 13.1% | - The company increased service charge rates on many checking account products in July 2025[14](index=14&type=chunk) - An additional **$125 million** in BOLI contracts were purchased during Q3 2025[14](index=14&type=chunk) [Non-Interest Expense Analysis](index=3&type=section&id=Non-Interest%20Expense%20Analysis) Non-interest expense increased by 5.2% year-over-year and 8.6% on a linked-quarter basis to $48.0 million in Q3 2025, with salary and benefit expense rising while equipment and occupancy expense decreased, resulting in an efficiency ratio of 35.22% for the quarter Non-Interest Expense (Q3 2025 vs. Q3 2024 vs. Q2 2025) (in millions, except percentages) | Metric | Q3 2025 | Q3 2024 | % Change YoY | Q2 2025 | % Change QoQ | | :------------------------------------- | :------ | :------ | :----------- | :------ | :----------- | | Total Non-interest Expense | $48.0 million | $45.6 million | 5.2% | $44.2 million | 8.6% | | Salary and Benefit Expense | $25.5 million | $25.1 million | 1.9% | $22.6 million | 13.0% | | Equipment and Occupancy Expense | $3.6 million | $3.8 million | (4.7)% | $3.5 million | 2.6% | | Efficiency Ratio | 35.22% | 36.90% | - | 33.46% | - | | Adjusted Efficiency Ratio | 33.31% | - | - | - | - | - The number of full-time equivalent (FTE) employees **increased by 30 (4.8%)** year-over-year to **650** at September 30, 2025, but **decreased by 9 (1.3%)** from the end of Q2 2025[15](index=15&type=chunk) [Income Tax Expense Analysis](index=3&type=section&id=Income%20Tax%20Expense%20Analysis) Income tax expense increased by 6.2% year-over-year to $13.3 million in Q3 2025, but decreased by 12.7% on a linked-quarter basis, with the effective tax rate at 16.81%, lower than previous periods, partly due to a $3.6 million tax credit from a renewable energy investment Income Tax Expense and Effective Tax Rate (Q3 2025 vs. Q3 2024 vs. Q2 2025) (in millions, except percentages) | Metric | Q3 2025 | Q3 2024 | % Change YoY | Q2 2025 | % Change QoQ | | :------------------------------------- | :------ | :------ | :----------- | :------ | :----------- | | Income Tax Expense | $13.3 million | $12.5 million | 6.2% | $15.2 million | (12.7)% | | Effective Tax Rate | 16.81% | 17.23% | - | 19.82% | - | - The company invested in a renewable energy tax credit during Q3 2025, receiving approximately **$3.6 million** in tax credits and other benefits[16](index=16&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) This section offers an overview of ServisFirst Bancshares, Inc. and includes cautionary information regarding forward-looking statements [About ServisFirst Bancshares, Inc.](index=3&type=section&id=About%20ServisFirst%20Bancshares%2C%20Inc.) ServisFirst Bancshares, Inc. is a bank holding company headquartered in Birmingham, Alabama, providing a comprehensive range of business and personal financial services through its subsidiary, ServisFirst Bank, across multiple states in the Southeast US - ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama[17](index=17&type=chunk) - Through ServisFirst Bank, it offers business and personal financial services in Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia, including commercial, consumer, and other loans, deposits, electronic banking, treasury and cash management, and correspondent banking services[17](index=17&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary note regarding forward-looking statements, emphasizing that actual results may differ materially from projections due to various inherent risks and uncertainties, and advises against undue reliance on such statements - Statements concerning future operations, results, or performance are identified as 'forward-looking statements' and are estimates reflecting management's judgment, involving inherent risks and uncertainties[18](index=18&type=chunk)[19](index=19&type=chunk) - Factors that could cause actual results to differ include general economic conditions, changes in interest rates, accounting and tax principles, legislation or regulatory requirements, changes in loan portfolio and deposit base, cyber-attacks, liquidity costs, legal cases, creditworthiness of customers, natural disasters, and increased competition[19](index=19&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made, and ServisFirst Bancshares, Inc. assumes no obligation to update or revise them[19](index=19&type=chunk) [Selected Financial Highlights (Unaudited)](index=4&type=section&id=SELECTED%20FINANCIAL%20HIGHLIGHTS%20(UNAUDITED)) This section presents condensed consolidated statements of income, balance sheet data, and key financial and capital ratios over multiple quarters [Consolidated Statement of Income Highlights](index=4&type=section&id=Consolidated%20Statement%20of%20Income%20Highlights) This section provides a condensed consolidated statement of income for the past five quarters, illustrating trends in key revenue and expense components, including net interest income, non-interest income, and net income Consolidated Statement of Income (Q3 2025 - Q3 2024) | (In thousands) | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | 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 | | 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 | | Net income | 65,571 | 61,424 | 63,224 | 65,173 | 59,907 | | Diluted earnings per share | $1.20 | $1.12 | $1.16 | $1.19 | $1.10 | [Consolidated Balance Sheet Data Highlights](index=4&type=section&id=Consolidated%20Balance%20Sheet%20Data%20Highlights) This section presents key consolidated balance sheet data for the past five quarters, highlighting the growth in total assets, loans, deposits, and stockholders' equity Consolidated Balance Sheet Data (Q3 2025 - Q3 2024) | (In thousands) | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | 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 | | Total deposits | 14,106,922 | 13,862,319 | 14,429,061 | 13,543,459 | 13,146,529 | | Stockholders' equity | 1,781,647 | 1,721,783 | 1,668,900 | 1,616,772 | 1,570,269 | | 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](index=5&type=section&id=Selected%20Financial%20Ratios) This section provides key annualized financial ratios for the past five quarters, including net interest margin, return on average assets, return on average common stockholders' equity, and efficiency ratio, showing performance trends Selected Financial Ratios (Annualized, Q3 2025 - Q3 2024) | Metric | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | 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% | [Capital Ratios](index=5&type=section&id=Capital%20Ratios) The company's regulatory capital ratios demonstrate strong capital adequacy, with Common Equity Tier 1 Capital to Risk-Weighted Assets increasing to 11.49% in Q3 2025 Capital Ratios (Q3 2025 - Q3 2024) | Metric | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | 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% | - Regulatory capital ratios for the most recent period are preliminary[22](index=22&type=chunk) [GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures](index=5&type=section&id=GAAP%20Reconciliation%20and%20Management%20Explanation%20of%20Non-GAAP%20Financial%20Measures) This section explains and reconciles non-GAAP financial measures to their most directly comparable GAAP counterparts, detailing adjustments for specific items [Explanation of Non-GAAP Financial Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) This section defines the non-GAAP financial measures used, such as adjusted net income and tangible book value per share, and explains the specific adjustments made for unusual or infrequent items like FDIC special assessments, legal accrual reversals, and losses on marketable securities, noting their supplementary nature to GAAP results - Non-GAAP financial measures include adjusted net income, 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, adjusted efficiency ratio, tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets[23](index=23&type=chunk) - Adjustments are made for unusual or infrequent items such as the FDIC's special assessment, a legal matter accrual reversal, and losses on the sale of available-for-sale debt securities due to portfolio restructuring[23](index=23&type=chunk) - These non-GAAP measures provide useful supplementary information to management and investors but have limitations and are not substitutes for GAAP results, nor are they necessarily comparable to other companies' non-GAAP measures[24](index=24&type=chunk) [Non-GAAP Reconciliation Tables](index=5&type=section&id=Non-GAAP%20Reconciliation%20Tables) Detailed reconciliation tables are provided to bridge GAAP financial measures to their corresponding non-GAAP adjusted figures, covering various metrics including book value, total assets, net income, EPS, net interest income, cost of interest-bearing deposits, return on average assets, return on average common stockholders' equity, and efficiency ratio Tangible Common Stockholders' Equity Reconciliation (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 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 | Adjusted Net Income and EPS Reconciliation (in thousands, except per share) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------ | :------- | :------- | | Net income - GAAP | $65,571 | $61,424 | $59,907 | $190,219 | $162,069 | | Adjustments (FDIC, Legal, Securities Loss, Tax) | 5,851 | 4,709 | - | 10,560 | 1,347 | | Adjusted net income - non-GAAP | $71,422 | $66,133 | $59,907 | $200,779 | $163,416 | | Diluted earnings per share - GAAP | $1.20 | $1.12 | $1.10 | $3.48 | $2.97 | | Adjusted diluted earnings per share - non GAAP | $1.30 | $1.21 | $1.10 | $3.67 | $2.99 | Adjusted Net Interest Margin and Efficiency Ratio Reconciliation | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------ | :------- | :------- | | Net interest margin-GAAP | 3.09% | 3.10% | 2.84% | 3.04% | 2.77% | | Adjusted net interest margin-non-GAAP | 3.09% | 3.06% | 2.84% | 3.02% | 2.77% | | Efficiency ratio | 35.22% | 33.46% | 36.90% | 34.56% | 38.53% | | Adjusted efficiency ratio - non-GAAP | 33.31% | 31.94% | 36.90% | 33.38% | 37.87% | [Detailed Consolidated Financial Statements](index=7&type=section&id=Detailed%20Consolidated%20Financial%20Statements) This section provides comprehensive unaudited consolidated financial statements, including balance sheets, income statements, loan composition, and credit loss experience [Consolidated Balance Sheets (Unaudited)](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS%20(UNAUDITED)) The consolidated balance sheets provide a detailed breakdown of assets, liabilities, and stockholders' equity as of September 30, 2025, compared to September 30, 2024, showing overall growth in total assets, loans, and deposits Consolidated Balance Sheets (in thousands) | ASSETS | Sep 30, 2025 | Sep 30, 2024 | % Change | | :------------------------------------- | :----------- | :----------- | :----------- | | Cash and cash equivalents | $1,773,305 | $1,760,231 | 1% | | Loans, net | 13,141,732 | 12,177,471 | 8% | | Total assets | $17,584,199 | $16,449,178 | 7% | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | Total deposits | $14,106,922 | $13,146,529 | 7% | | Total liabilities | 15,802,552 | 14,878,909 | 6% | | 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) (YTD)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(UNAUDITED)%20(YTD)) This section presents the consolidated statements of income for the three and nine months ended September 30, 2025, and 2024, detailing interest income, interest expense, net interest income, provision for credit losses, non-interest income, non-interest expense, and net income Consolidated Statements of Income (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total interest income | $251,308 | $247,979 | $739,039 | $702,229 | | 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 | | Total non-interest income | 2,833 | 8,549 | 11,531 | 26,253 | | Total non-interest expense | 47,996 | 45,632 | 138,307 | 134,250 | | Net income | 65,571 | 59,907 | 190,219 | 162,069 | | Diluted earnings per common share | $1.20 | $1.10 | $3.48 | $2.97 | [Loans by Type (Unaudited)](index=9&type=section&id=LOANS%20BY%20TYPE%20(UNAUDITED)) This table details the composition of the loan portfolio by type across the past five quarters, showing the distribution among commercial, real estate (construction, owner-occupied, 1-4 family, non-owner occupied), and consumer loans Loans by Type (in thousands) | Loan Type | 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 | | Real estate - mortgage: 1-4 family mortgage | 1,625,296 | 1,561,461 | 1,494,189 | 1,444,623 | 1,409,981 | | Real estate - mortgage: Non-owner occupied commercial | 4,448,710 | 4,338,697 | 4,259,566 | 4,181,243 | 4,190,935 | | 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)](index=9&type=section&id=SUMMARY%20OF%20CREDIT%20LOSS%20EXPERIENCE%20(UNAUDITED)) This section provides a comprehensive summary of the company's credit loss experience over the past five quarters, including details on allowance for credit losses, charge-offs, recoveries, net charge-offs, and nonperforming assets, along with key ratios Summary of Credit Loss Experience (in thousands) | Metric | 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 | | Total charge offs | 9,350 | 7,502 | 6,092 | 4,670 | 3,427 | | 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 (Allowance for credit losses) | $170,235 | $169,959 | $165,034 | $164,458 | $160,755 | | Nonperforming assets: Total | $168,238 | $72,479 | $74,660 | $44,997 | $41,891 | Credit Loss Ratios | Ratio | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Allowance for credit losses to total loans | 1.28% | 1.28% | 1.28% | 1.30% | 1.30% | | Net charge-offs to total average loans | 0.27% | 0.20% | 0.19% | 0.09% | 0.09% | | Nonperforming assets to total assets | 0.96% | 0.42% | 0.40% | 0.26% | 0.25% | | Allowance for credit losses to nonaccrual loans | 102.14% | 247.69% | 223.64% | 416.34% | 433.59% | [Consolidated Statements of Income (Unaudited) (Quarterly)](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(UNAUDITED)%20(Quarterly)) This table provides a detailed quarterly breakdown of the consolidated statements of income for the past five quarters, offering a granular view of revenue and expense trends over time Consolidated Statements of Income (in thousands, except per share data) | Metric | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Total interest income | $251,308 | $246,635 | $241,096 | $243,892 | $247,979 | | 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 | | Total non-interest income | 2,833 | 421 | 8,277 | 8,803 | 8,549 | | Total non-interest expense | 47,996 | 44,204 | 46,107 | 46,896 | 45,632 | | Net income | 65,571 | 61,424 | 63,224 | 65,173 | 59,907 | | Diluted earnings per common share | $1.20 | $1.12 | $1.16 | $1.19 | $1.10 | [Average Balance Sheets and Net Interest Analysis (Unaudited)](index=11&type=section&id=AVERAGE%20BALANCE%20SHEETS%20AND%20NET%20INTEREST%20ANALYSIS%20(UNAUDITED)) This section presents detailed average balance sheets and net interest analysis on a fully taxable-equivalent basis for the past five quarters, providing insights into average balances, yields/rates for interest-earning assets and interest-bearing liabilities, net interest spread, and net interest margin Average Balance Sheets and Net Interest Analysis (in thousands) | Metric | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 | 4th Quarter 2024 | 3rd Quarter 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Total interest earning assets | $17,129,689 | $17,076,353 | $17,189,693 | $16,526,418 | $16,122,366 | | Yield on total interest earning assets | 5.82% | 5.80% | 5.69% | 5.87% | 6.12% | | Total interest bearing liabilities | $13,187,618 | $13,182,267 | $13,348,133 | $12,642,803 | $12,396,020 | | Rate on total interest bearing liabilities | 3.55% | 3.50% | 3.57% | 3.80% | 4.26% | | 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% | - Average loans include nonaccrual loans in all periods. Loan fees are included in interest income[38](index=38&type=chunk) - Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%[39](index=39&type=chunk)

Core Insights - ServisFirst Bancshares, Inc. reported solid profitability across all regions and markets for the third quarter of 2025, with newer offices achieving profitability [3][4] - The company experienced growth in net interest margin and maintained pricing discipline on loans and deposits, contributing to year-over-year earnings growth [3][4] Financial Summary - Net income for Q3 2025 was $65.6 million, a 6.8% increase from Q2 2025 and a 9.5% increase from Q3 2024 [4][7] - Diluted earnings per share were $1.20, up 7.1% from Q2 2025 and 9.1% from Q3 2024 [4][7] - Adjusted net income, net of tax, was $71.4 million, reflecting an 8.0% increase from Q2 2025 and a 19.2% increase from Q3 2024 [4][5] Key Performance Metrics - Return on average assets was 1.47% for Q3 2025, compared to 1.40% in Q2 2025 and 1.43% in Q3 2024 [4][8] - Return on average common stockholders' equity improved to 14.88% in Q3 2025 from 14.56% in Q2 2025 and 15.55% in Q3 2024 [4][8] - The adjusted return on average common stockholders' equity was 16.21% for Q3 2025, up from 15.68% in Q2 2025 [4][8] Asset and Deposit Growth - Total loans increased by $973.7 million, or 7.9%, year-over-year, reaching $13.31 billion [5][10] - Total deposits grew by $960.4 million, or 7.3%, year-over-year, totaling $14.11 billion [5][11] - The company maintained strong liquidity with $1.77 billion in cash and cash equivalents, representing 10.1% of total assets [5] Non-Interest Income and Expenses - Non-interest income decreased by $5.7 million, or 66.9%, to $2.8 million in Q3 2025 compared to Q3 2024, but increased significantly on a linked quarter basis [13] - Non-interest expense rose by $2.4 million, or 5.2%, to $48.0 million in Q3 2025 compared to Q3 2024 [14] Tax and Provision for Credit Losses - Income tax expense increased by $779,000, or 6.2%, to $13.3 million in Q3 2025 compared to Q3 2024 [15] - The provision for credit losses was $9.5 million in Q3 2025, down from $11.4 million in Q2 2025 [4][6]

Core Viewpoint - ServisFirst Bancshares (SFBS) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on October 20, with a consensus estimate of quarterly earnings at $1.38 per share, reflecting a year-over-year increase of +25.5%. Revenues are projected to be $148.8 million, up 20.3% from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 2.74%, indicating a reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that ServisFirst has a positive Earnings ESP of +1.45%, suggesting analysts have recently become more optimistic about the company's earnings prospects. However, the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, ServisFirst was expected to post earnings of $1.20 per share but exceeded this with earnings of $1.21, resulting in a surprise of +0.83%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Conclusion - While ServisFirst does not appear to be a strong candidate for an earnings beat, it is essential for investors to consider other factors when making decisions regarding the stock ahead of the earnings release [17].