Financial Data and Key Metrics Changes - The company reported a loan growth of just under $500 million for the quarter, exceeding the goal of $100 million per month in net loan growth, excluding PPP loans [7][15] - Average loans, excluding PPP, increased by $731 million in the first quarter, while average PPP loans decreased by $143 million, resulting in a net average growth of $588 million [15] - Noninterest income from credit card income grew to $2.4 million in the first quarter compared to $1.2 million in the same period of 2021 [17] - The net income impact from the March 2022 Fed rate increase was $4.6 million on an annual basis, translating to $0.08 per share [16] Business Line Data and Key Metrics Changes - The company experienced solid growth in all regions, with a notable increase in C&I loan growth, marking the first quarterly improvement in C&I line utilization since the pandemic began [7][8] - Deposits remained flat for the quarter, with a slight decline in correspondent balances due to corporate tax payments [11] - Noninterest expenses increased due to market expansions, with total salaries and benefits rising by $2.8 million [18] Market Data and Key Metrics Changes - The loan loss reserve grew by $2.8 million for the quarter, with the ALLL to total loans ratio at 1.21, slightly down from 1.22 in the previous quarter [25] - Nonperforming assets were reported at $21.4 million, equating to 20 basis points of total assets, a decrease from the first quarter of 2021 [26] Company Strategy and Development Direction - The company is focused on organic growth, particularly in light of ongoing merger activity in the industry, and is optimistic about its growth strategy [59] - The company plans to deploy excess liquidity into securities and loans over the next two years, aiming to average market rates [67][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality of borrowers, noting that they are in better shape than ever before, with strong liquidity and low leverage [30] - The company anticipates a return to more normalized credit results in 2022, aligning with historical performance pre-pandemic [24] Other Important Information - The company added new bankers during the quarter and continues to prioritize recruiting top talent to maintain efficiency [12] - The company expects annual IT expenses to decrease by about $2.4 million in 2023 due to core conversion expenses [20] Q&A Session Summary Question: What prompted the change in the pace of liquidity deployment in the bond portfolio? - The CFO indicated that the change was due to anticipated Fed rate increases and a desire to pace purchases more cautiously [35] Question: Is the loan growth target of $300 million per quarter still realistic? - The CEO noted that the company has been exceeding this target and emphasized the importance of being conservative in forecasts [38] Question: How does the company view loan repricing as the Fed raises rates? - The CFO explained that $717 million repriced in March, and as rates increase, the margin is expected to improve gradually [40] Question: What is the outlook for operating expenses growth? - The CFO suggested a modest increase in noninterest expenses, estimating around a 3% increase, while the CEO mentioned that previous salary deferrals may skew year-over-year comparisons [62][63] Question: What is the target level for cash and liquidity? - The CFO indicated a target of about $500 million in cash, with plans to incrementally deploy excess liquidity into securities and loans over the next two years [67]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______to_______ Commission file number 001-36452 SERVISFIRST BANCSHARES, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction ...

ServisFirst Bancshares, Inc. (NYSE:SFBS) Q4 2021 Earnings Conference Call January 24, 2021 5:15 PM ET Company Participants Davis Mange - VP, IR Tom Broughton - Chairman, President & CEO Bud Foshee - EVP, CFO Henry Abbott - SVP & Chief Credit Officer Rodney Rushing - EVP & COO Conference Call Participants Graham Dick - Piper Sandler Kevin Fitzsimmons - D.A. Davidson David Bishop - Seaport Research Operator Greetings. Welcome to the ServisFirst Bancshares Fourth Quarter Earnings Call. At this time, all pa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______to_______ Commission file number 001-36452 SERVISFIRST BANCSHARES, INC. (Exact Name of Registrant as Specified in Its Charte ...

ServisFirst Bancshares, Inc. (NYSE:SFBS) Q3 2021 Earnings Conference Call October 18, 2021 5:15 PM ET Company Participants Davis Mange - Director of Investor Relations. Tom Broughton - Chief Executive Officer Henry Abbott - Chief Credit Officer Bud Foshee - Chief Financial Officer Conference Call Participants Brad Milsaps - Piper Sandler Kevin Fitzsimmons - D.A. Davidson William Wallace - Raymond James Dave Bishop - Seaport Global Securities Disclaimer*: This transcript is designed to be used alongside the ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for Q2 2021, including balance sheets, income statements, and cash flow statements, with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show the company's financial position at June 30, 2021, with increases in total assets, cash, and deposits Key Financial Data | Metric | June 30, 2021 (in billions) | December 31, 2020 (in billions) | Change (in billions) | % Change | | :--------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total assets | $13.21 | $11.93 | $1.28 | 10.68% | | Cash and cash equivalents | $3.18 | $2.21 | $0.97 | 43.83% | | Loans, net | $8.55 | $8.38 | $0.17 | 2.00% | | Total deposits | $10.96 | $9.98 | $0.98 | 9.85% | | Total liabilities | $12.13 | $10.94 | $1.19 | 10.92% | | Total stockholders' equity | $1.07 | $0.99 | $0.08 | 8.10% | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated income statements show increased net income for Q2 and YTD June 2021, driven by higher net interest and noninterest income Key Financial Data | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $102.72 | $95.08 | $203.12 | $191.85 | | Total interest expense| $8.05 | $11.85 | $16.08 | $30.97 | | Net interest income | $94.67 | $83.23 | $187.03 | $160.87 | | Provision for credit losses | $9.65 | $10.28 | $17.10 | $23.87 | | Total noninterest income | $9.60 | $7.03 | $18.06 | $13.71 | | Total noninterest expenses | $31.31 | $28.82 | $60.22 | $56.74 | | Net income | $50.03 | $40.45 | $101.48 | $75.23 | | Basic EPS | $0.92 | $0.75 | $1.87 | $1.40 | | Diluted EPS | $0.92 | $0.75 | $1.86 | $1.39 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income increased for Q2 2021 due to net income and unrealized gains, while the six-month period saw a decrease in other comprehensive income Key Financial Data | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $50.03 | $40.45 | $101.48 | $75.23 | | Other comprehensive income (loss), net of tax | $2.80 | $1.16 | $(0.66) | $12.86 | | Comprehensive income | $52.83 | $41.61 | $100.82 | $88.09 | [Consolidated Statement of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statement%20of%20Stockholders'%20Equity) Stockholders' equity statement details changes in equity components, including net income, dividends, and stock-based compensation, showing an overall increase Key Financial Data | Metric | Balance, April 1, 2021 (in millions) | Balance, June 30, 2021 (in millions) | | :-------------------- | :--------------------- | :--------------------- | | Common Stock | $0.05 | $0.05 | | Additional Paid-in Capital | $224.30 | $225.13 | | Retained Earnings | $788.88 | $828.05 | | Accumulated Other Comprehensive Income | $16.75 | $19.56 | | Total Stockholders' Equity | $1,030.49 | $1,073.28 | - Common dividends declared increased from **$0.175 per share** in Q2 2020 to **$0.20 per share** in Q2 2021[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements show a significant net increase in cash for H1 2021, driven by financing activities and deposits, offset by investing activities Key Financial Data | Metric | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :---------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $129.45 | $104.63 | | Net cash used in investing activities | $(329.29) | $(1,146.87) | | Net cash provided by financing activities | $1,169.21 | $1,960.56 | | Net increase in cash and cash equivalents | $969.37 | $918.33 | | Cash and cash equivalents at end of period | $3,180.78 | $1,548.93 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, financial instrument breakdowns, and recent accounting pronouncements for the consolidated financial statements [NOTE 1 - GENERAL](index=12&type=section&id=NOTE%201%20-%20GENERAL) This note clarifies unaudited financial statements, SEC compliance, and the Company's adoption of the CECL methodology for credit losses - The Company delayed adoption of ASU 2016-13 (CECL) until **December 31, 2020**, with an effective retrospective implementation date of **January 1, 2020**, as permitted by the CARES Act[28](index=28&type=chunk) [NOTE 2 - CASH AND CASH EQUIVALENTS](index=12&type=section&id=NOTE%202%20-%20CASH%20AND%20CASH%20EQUIVALENTS) This note defines cash and cash equivalents, including cash on hand, amounts due from banks, and federal funds sold - Cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from banks, and federal funds sold[29](index=29&type=chunk) [NOTE 3 - EARNINGS PER COMMON SHARE](index=12&type=section&id=NOTE%203%20-%20EARNINGS%20PER%20COMMON%20SHARE) This note outlines basic and diluted earnings per common share calculations, including weighted average shares and net income available to common stockholders Key Financial Data | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Weighted average common shares outstanding | 54,173,034 | 53,854,973 | 54,112,190 | 53,779,599 | | Net income available to common stockholders (in millions) | $50.00 | $40.42 | $101.45 | $75.20 | | Basic earnings per common share | $0.92 | $0.75 | $1.87 | $1.40 | | Diluted earnings per common share | $0.92 | $0.75 | $1.86 | $1.39 | [NOTE 4 - SECURITIES](index=13&type=section&id=NOTE%204%20-%20SECURITIES) This note details available-for-sale and held-to-maturity debt securities, including fair value and unrealized gains/losses, confirming no credit impairment Key Financial Data | Security Type | June 30, 2021 Fair Value (in millions) | December 31, 2020 Fair Value (in millions) | | :--------------------------- | :----------------------- | :--------------------------- | | Available for Sale Debt Securities | $1,013.53 | $886.69 | | Held to Maturity Debt Securities | $0.25 | $0.25 | - The Company recognized **$620,000** in securities gains for both the three and six months ended June 30, 2021, from the call of securities[37](index=37&type=chunk) - No allowance for credit losses was recognized on available-for-sale debt securities in an unrealized loss position, as the Company does not believe they are credit impaired and does not intend to sell them before recovery of amortized cost[37](index=37&type=chunk) [NOTE 5 – LOANS](index=14&type=section&id=NOTE%205%20%E2%80%93%20LOANS) This note details the loan portfolio by classification, credit quality, PPP loans, ACL methodology, and troubled debt restructurings Key Financial Data | Loan Category | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :--------------------------- | :------------ | :---------------- | | Commercial, financial and agricultural | $3,105.24 | $3,295.90 | | Real estate - construction | $782.31 | $593.61 | | Real estate - mortgage | $4,696.67 | $4,511.30 | | Consumer | $65.48 | $64.87 | | Total Loans | $8,649.69 | $8,465.69 | | Less: Allowance for credit losses | $(104.67) | $(87.94) | | Net Loans | $8,545.02 | $8,377.75 | Key Financial Data | Metric | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :-------------------- | :------------ | :---------------- | | Total Nonperforming Loans | $17.19 | $18.95 | | Nonaccrual loans | $12.30 | $13.97 | | 90+ days past due and accruing | $4.89 | $4.98 | | Troubled Debt Restructurings | $2.90 | $1.50 | - The Company funded approximately **7,400 PPP loans** totaling **$1.5 billion** since April 2020. PPP loans outstanding decreased from **$900.5 million** at December 31, 2020, to **$595.0 million** at June 30, 2021[45](index=45&type=chunk) - Allowance for credit losses increased to **$104.67 million** at June 30, 2021, from **$87.94 million** at December 31, 2020, reflecting the CECL methodology and adjustments for qualitative factors related to post-PPP economic conditions[62](index=62&type=chunk) [NOTE 6 - LEASES](index=27&type=section&id=NOTE%206%20-%20LEASES) This note provides information on operating leases, including liabilities, right-of-use assets, remaining term, discount rate, and lease costs Key Financial Data | Metric | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :-------------------- | :------------ | :---------------- | | Lease right-of-use assets | $19.00 | $10.50 | | Lease liabilities | $19.50 | $10.60 | - Weighted average remaining term of operating leases is **7.18 years**, with a weighted average discount rate of **2.52%** as of June 30, 2021[71](index=71&type=chunk) Key Financial Data | Lease Cost | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net lease cost | $1.13 | $0.90 | $2.08 | $1.82 | [NOTE 7 - EMPLOYEE AND DIRECTOR BENEFITS](index=28&type=section&id=NOTE%207%20-%20EMPLOYEE%20AND%20DIRECTOR%20BENEFITS) This note details the stock-based compensation plan, including stock options, restricted stock, compensation costs, and activity during the periods Key Financial Data | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock-based compensation cost | $0.56 | $0.35 | $0.85 | $0.63 | - As of June 30, 2021, there was **$539,000** of unrecognized compensation cost for non-vested stock options, expected to be recognized over **2.1 years**[78](index=78&type=chunk) - As of June 30, 2021, there was **$3.7 million** of unrecognized compensation cost for non-vested time-based restricted stock, expected to be recognized over **2.5 years**[80](index=80&type=chunk) [NOTE 8 - DERIVATIVES](index=30&type=section&id=NOTE%208%20-%20DERIVATIVES) This note describes derivative instruments, including an interest rate cap for exposure management and mortgage loan commitments, noting fair values - The Company purchased a **3-year interest rate cap** in May 2020 with a notional amount of **$300 million** and a strike rate of **0.50%** (one-month LIBOR). Its fair value was **$412,000** at June 30, 2021, with a remaining term of **1.8 years**[83](index=83&type=chunk) - The fair values of interest rate lock commitments related to loans originated for later sale were not material as of June 30, 2021, and December 31, 2020[84](index=84&type=chunk) [NOTE 9 – RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS](index=30&type=section&id=NOTE%209%20%E2%80%93%20RECENTLY%20ADOPTED%20ACCOUNTING%20PRONOUNCEMENTS) This note discusses the adoption of ASU 2016-13 (CECL) and ASU 2020-04 (Reference Rate Reform), detailing their impact on retained earnings and ACL - The Company adopted ASU 2016-13 (CECL) on **January 1, 2020**, resulting in a cumulative net increase to retained earnings of **$1.1 million**, net of tax, due to a **$2.0 million** decrease in ACL, a **$0.5 million** increase in off-balance sheet credit exposures, and a **$0.4 million** decrease in deferred tax assets[85](index=85&type=chunk) - ASU 2020-04 (Reference Rate Reform) provides temporary optional guidance for accounting for reference rate reform, which the Company will apply in transitioning to a new reference rate established by the American Financial Exchange[87](index=87&type=chunk) [NOTE 10 - RECENT ACCOUNTING PRONOUNCEMENTS](index=32&type=section&id=NOTE%2010%20-%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) This note addresses ASU 2020-06 for convertible instruments, with no material impact expected as the Company has no convertible debt - ASU 2020-06, effective for the Company's fiscal year beginning after **December 15, 2021**, simplifies accounting for convertible instruments. The Company does not expect a material impact as it currently has no convertible debt[88](index=88&type=chunk) [NOTE 11 - FAIR VALUE MEASUREMENT](index=32&type=section&id=NOTE%2011%20-%20FAIR%20VALUE%20MEASUREMENT) This note outlines the fair value measurement hierarchy for financial instruments, detailing valuation techniques for debt securities, derivatives, and OREO - The Company classifies fair value measurements into **Level 1** (quoted prices in active markets), **Level 2** (observable prices corroborated by market data), and **Level 3** (unobservable inputs)[90](index=90&type=chunk) Key Financial Data | Asset Type | June 30, 2021 Fair Value (Level 2, in millions) | June 30, 2021 Fair Value (Level 3, in millions) | December 31, 2020 Fair Value (Level 2, in millions) | December 31, 2020 Fair Value (Level 3, in millions) | | :------------------------ | :--------------------------------- | :--------------------------------- | :------------------------------------- | :------------------------------------- | | Available-for-sale debt securities | $998.54 | $14.99 | $886.69 | $0.00 | | Interest rate cap derivative | $0.41 | $0.00 | $0.14 | $0.00 | | Loans individually evaluated | $0.00 | $68.66 | $0.00 | $80.82 | | Other real estate owned and repossessed assets | $0.00 | $2.04 | $0.00 | $6.50 | - Loans individually evaluated and OREO are classified as **Level 3**, with fair value adjustments ranging from **0% to 64%** for loans and **10% to 25%** for OREO at June 30, 2021[92](index=92&type=chunk)[93](index=93&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion analyzes financial condition and operations, highlighting performance drivers, asset quality, liquidity, capital, and COVID-19 impact [Forward-Looking Statements](index=37&type=section&id=Forward-Looking%20Statements) Cautionary note on forward-looking statements, emphasizing potential material differences due to economic conditions, interest rates, and COVID-19 risks - Forward-looking statements are subject to inherent risks and uncertainties, including the global health and economic crisis from COVID-19, general economic conditions, changes in interest rates, and regulatory requirements[103](index=103&type=chunk) [Business](index=37&type=section&id=Business) ServisFirst Bancshares operates as a bank holding company, providing financial services through its subsidiary across multiple states - ServisFirst Bank operates **22 full-service banking offices** in Alabama, Northwest Florida, West Central Florida, Nashville, Tennessee, Atlanta, Georgia, and Charleston, South Carolina[104](index=104&type=chunk) - Principal business activities include accepting deposits, making loans and investments, providing electronic banking, treasury and cash management, and correspondent banking services[104](index=104&type=chunk) [Overview of Quarter and Year-to-Date Results](index=37&type=section&id=Overview%20of%20Quarter%20and%20Year-to-Date%20Results) Significant growth in total assets, deposits, net income, and EPS for Q2 and YTD June 2021 compared to the prior year Key Financial Data | Metric | June 30, 2021 (in billions) | December 31, 2020 (in billions) | Change (in billions) | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Consolidated total assets | $13.21 | $11.93 | $1.28 | 10.7% | | Total loans | $8.65 | $8.47 | $0.18 | 2.2% | | Total deposits | $10.96 | $9.98 | $0.98 | 9.8% | Key Financial Data | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income available to common stockholders | $50.0 | $40.4 | $101.5 | $75.2 | | % Change YoY | 23.7% | - | 35.0% | - | | Basic and diluted EPS | $0.92 | $0.75 | $1.87 / $1.86 | $1.40 / $1.39 | [Critical Accounting Policies](index=39&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies conform to GAAP, emphasizing estimates for allowance for credit losses and income taxes, which are subject to change - The allowance for credit losses and income taxes are particularly subject to change and are considered critical accounting policies[110](index=110&type=chunk) [Financial Condition](index=39&type=section&id=Financial%20Condition) Analysis of financial condition, detailing changes in cash, debt securities, loans, asset quality, deposits, borrowings, liquidity, and capital adequacy [Cash and Cash Equivalents](index=39&type=section&id=Cash%20and%20Cash%20Equivalents) Significant increase in federal funds sold and Federal Reserve balances, primarily due to federal stimulus funds from COVID-19 Key Financial Data | Metric | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :------------------- | :------------ | :---------------- | | Federal funds sold | $7.5 | $1.8 | | Balances at Federal Reserve | $2,970.0 | $1,920.0 | - The increase in balances at the Federal Reserve in 2020 resulted from federal stimulus funds on deposit from customers due to the COVID-19 pandemic[111](index=111&type=chunk) [Debt Securities](index=39&type=section&id=Debt%20Securities) Available-for-sale debt securities increased, held-to-maturity remained stable, with a focus on return, liquidity, and strong credit ratings Key Financial Data | Metric | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :------------------- | :------------ | :---------------- | | Available for sale debt securities | $1,010.0 | $886.7 | | Held to maturity debt securities | $0.25 | $0.25 | - The Company recognized a **$620,000** gain on the call of a corporate bond during Q2 2021[112](index=112&type=chunk) - The total investment portfolio at June 30, 2021, has a combined average credit rating of **AA**, with all corporate bonds rated **BBB or better** by Kroll Bond Rating Agency or **A-1 or better** by Standard and Poor's/Moody's when purchased[114](index=114&type=chunk) [Loans](index=39&type=section&id=Loans) Total loans increased, with a portion still impacted by COVID-19 payment deferrals, not classified as troubled debt restructurings Key Financial Data | Metric | June 30, 2021 (in billions) | December 31, 2020 (in billions) | Change (in billions) | % Change | | :------------------- | :------------ | :---------------- | :----- | :------- | | Total loans | $8.65 | $8.47 | $0.18 | 2.2% | - As of June 30, 2021, **20 loans** totaling **$3.6 million** had payment deferrals due to COVID-19 relief, with **$5.0 million** in accrued interest related to these deferrals[116](index=116&type=chunk) - The CARES Act guidance prevented COVID-19 loan modifications from being classified as troubled debt restructurings[116](index=116&type=chunk) [Asset Quality](index=40&type=section&id=Asset%20Quality) Asset quality relies on CECL methodology, using economic forecasts and qualitative factors to determine ACL, which increased due to PPP loan changes - The allowance for credit losses (ACL) is calculated using the CECL methodology, incorporating historical default and loss experience, current and projected economic conditions (national unemployment rate, GDP growth), and qualitative factors[118](index=118&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) Key Financial Data | Metric | June 30, 2021 (in millions) | December 31, 2020 (in millions) | June 30, 2020 (in millions) | | :--------------------------------- | :------------ | :---------------- | :------------ | | Allowance for credit losses | $104.67 | $87.94 | - | | Allowance for loan losses | - | - | $91.51 | | ACL to period end loans | 1.21% | 1.04% | - | | ALL to period end loans | - | - | 1.10% | - The increase in ACL at June 30, 2021, was primarily due to a net decrease in PPP loans (**$373 million**) and **$517 million** in net loan growth (excluding PPP loans), along with a new qualitative factor for post-PPP business sustainability and fraud risk, which added **$3.5 million** to ACL[173](index=173&type=chunk) [Nonperforming Assets](index=42&type=section&id=Nonperforming%20Assets) Nonperforming loans and OREO decreased, indicating improved asset quality, while monitoring COVID-19 affected borrowers for future interest income impact Key Financial Data | Metric | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :------------------- | :------------ | :---------------- | | Total nonperforming loans | $17.2 | $19.0 | | Nonaccrual loans | $12.3 | $14.0 | | OREO and repossessed assets | $2.0 | $6.5 | | Total Nonperforming Assets | $19.2 | $25.5 | Key Financial Data | Ratio | June 30, 2021 | December 31, 2020 | | :---------------------------------------------------------------- | :------------ | :---------------- | | Nonperforming loans to total loans | 0.20% | 0.22% | | Nonperforming assets to total loans plus other real estate owned and repossessions | 0.22% | 0.30% | - The Company carries **$5.0 million** of accrued interest income on deferrals made to COVID-19 affected borrowers at June 30, 2021, down from **$5.8 million** at December 31, 2020, with potential negative impacts on future interest income if credit losses emerge[128](index=128&type=chunk) [Deposits](index=44&type=section&id=Deposits) Total deposits increased significantly due to PPP lending, with balances expected to be temporary, and long-term growth anticipated organically Key Financial Data | Metric | June 30, 2021 (in billions) | December 31, 2020 (in billions) | Change (in billions) | % Change | | :------------------- | :------------ | :---------------- | :----- | :------- | | Total deposits | $10.96 | $9.98 | $0.98 | 9.8% | - Increased deposit growth rates in 2020 were a result of PPP lending, with borrowers retaining portions of their proceeds in the Bank; these balances are believed to be temporary[129](index=129&type=chunk) Key Financial Data | Deposit Type | June 30, 2021 % of Total | December 31, 2020 % of Total | | :--------------------------- | :----------------------- | :--------------------------- | | Noninterest-bearing demand | 30.08% | 27.96% | | Interest-bearing demand | 61.53% | 62.92% | [Other Borrowings](index=44&type=section&id=Other%20Borrowings) Borrowings primarily consist of federal funds purchased and subordinated notes, with an increase in federal funds during the period Key Financial Data | Metric | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :------------------- | :------------ | :---------------- | | Federal funds purchased | $1,059.5 | $851.5 | | Other borrowings | $64.7 | $64.7 | - The average rate paid on federal funds purchased was **0.22%** for the quarter ended June 30, 2021[133](index=133&type=chunk) [Liquidity](index=46&type=section&id=Liquidity) Strong liquidity maintained with sufficient liquid assets and borrowing availability to meet funding needs, exceeding FDIC guidelines - Liquid assets (cash, federal funds sold, unpledged available-for-sale securities) totaled **$3.72 billion** at June 30, 2021[135](index=135&type=chunk) - The Bank had approximately **$986 million** in unused federal funds lines of credit with regional banks at June 30, 2021[135](index=135&type=chunk) Key Financial Data | Contractual Obligations | Total (in millions) | 1 year or less (in millions) | Over 1 - 3 years (in millions) | Over 3 - 5 years (in millions) | Over 5 years (in millions) | | :------------------------------------- | :----------- | :------------- | :--------------- | :--------------- | :----------- | | Deposits without a stated maturity | $10,151.01 | $0.00 | $0.00 | $0.00 | $0.00 | | Certificates of deposit | $807.23 | $568.02 | $219.07 | $20.06 | $0.08 | | Federal funds purchased | $1,059.47 | $1,059.47 | $0.00 | $0.00 | $0.00 | | Subordinated debentures | $64.75 | $0.00 | $0.00 | $0.00 | $64.75 | | Operating lease commitments | $19.53 | $1.72 | $6.54 | $4.31 | $6.96 | | Total | $12,151.99 | $1,629.22 | $225.61 | $24.37 | $71.78 | [Capital Adequacy](index=47&type=section&id=Capital%20Adequacy) Company and Bank are well-capitalized, maintaining capital ratios exceeding regulatory minimums, including Basel III capital conservation buffer Key Financial Data | Capital Ratio | Consolidated (June 30, 2021) | ServisFirst Bank (June 30, 2021) | Well Capitalized Minimum | | :--------------------------------- | :----------------------------- | :------------------------------- | :----------------------- | | CET 1 Capital to Risk-Weighted Assets | 10.60% | 11.24% | 6.50% | | Tier 1 Capital to Risk-Weighted Assets | 10.60% | 11.24% | 8.00% | | Total Capital to Risk-Weighted Assets | 12.36% | 12.34% | 10.00% | | Tier 1 Capital to Average Assets | 8.10% | 8.59% | 5.00% | - Total stockholders' equity attributable to the Company was **$1.07 billion** (**8.13% of total assets**) at June 30, 2021, up from **$992.4 million** (**8.32% of total assets**) at December 31, 2020[141](index=141&type=chunk) - The Company's capital ratios are sufficient to satisfy the fully phased-in capital conservation buffer of **2.5% of risk-weighted assets**, effective **January 1, 2019**[143](index=143&type=chunk) [Off-Balance Sheet Arrangements](index=49&type=section&id=Off-Balance%20Sheet%20Arrangements) Off-balance sheet arrangements include credit commitments, credit card arrangements, and standby letters of credit, involving credit risk and repurchase demands Key Financial Data | Financial Instrument | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :---------------------------------- | :------------ | :---------------- | | Commitments to extend credit | $3,184.64 | $2,606.26 | | Credit card arrangements | $334.01 | $286.13 | | Standby letters of credit | $69.35 | $66.21 | | Total | $3,588.00 | $2,958.59 | - The Company has an obligation to repurchase or make purchasers whole for mortgage loans sold to secondary market investors if violations of representations and warranties are found[151](index=151&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) Analysis of operational performance, detailing changes in net income, net interest income, provision for credit losses, noninterest income, and expenses [Summary of Net Income](index=50&type=section&id=Summary%20of%20Net%20Income) Net income and net income available to common stockholders increased significantly for Q2 and YTD June 2021, driven by interest and non-interest income Key Financial Data | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $50.0 | $40.4 | $101.5 | $75.2 | | Net interest income increase | $11.4 | - | $26.2 | - | | Non-interest income increase | $2.6 | - | $4.4 | - | | Non-interest expense increase | $2.5 | - | $3.5 | - | | Income tax expense increase | $2.5 | - | $7.5 | - | Key Financial Data | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Return on average assets | 1.56% | 1.55% | 1.63% | 1.54% | | Return on average common stockholders' equity | 18.98% | 18.40% | 19.73% | 17.31% | [Net Interest Income and Net Interest Margin Analysis](index=50&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20Analysis) Net interest income increased due to growth in earning assets and decreased interest-bearing liability costs, despite slightly lower loan yields Key Financial Data | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Taxable-equivalent net interest income (in millions) | $94.7 | $83.3 | $187.2 | $161.0 | | % Change YoY | 13.7% | - | 16.2% | - | | Average earning assets (in billions) | $12.41 | $10.08 | $12.06 | $9.41 | | Taxable-equivalent yield on interest-earning assets | 3.32% | 3.80% | 3.41% | 4.10% | | Cost of total interest-bearing liabilities | 0.37% | 0.69% | 0.39% | 0.94% | | Net interest margin | 3.06% | 3.32% | 3.14% | 3.44% | - Growth in non-interest-bearing deposits and equity also contributed to the increase in net interest revenue[165](index=165&type=chunk)[172](index=172&type=chunk) [Provision for Credit Losses](index=57&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses decreased for Q2 and YTD June 2021, reflecting CECL methodology, PPP loan changes, and a new qualitative factor Key Financial Data | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Provision for credit losses | $9.7 | $10.3 | $17.1 | $23.9 | | % Change YoY | -5.8% | - | -28.4% | - | - The allowance for credit losses (ACL) as a percent of total loans increased to **1.21%** at June 30, 2021, from **1.04%** at December 31, 2020, primarily due to a net decrease in PPP loans and a new qualitative factor addressing post-PPP risks[173](index=173&type=chunk) - Nonperforming loans decreased to **$17.2 million** (**0.20% of total loans**) at June 30, 2021, from **$19.0 million** (**0.22% of total loans**) at December 31, 2020[173](index=173&type=chunk) [Noninterest Income](index=58&type=section&id=Noninterest%20Income) Noninterest income significantly increased for Q2 and YTD June 2021, driven by mortgage banking, credit card income, and securities gains Key Financial Data | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total noninterest income | $9.6 | $7.0 | $18.1 | $13.7 | | % Change YoY | 36.5% | - | 31.8% | - | | Mortgage banking income | $2.7 | $2.1 | $5.4 | $3.2 | | Credit card income | $1.9 | $1.4 | $3.1 | $3.2 | | Securities gains | $0.62 | $0.00 | $0.62 | $0.00 | | Other operating income | $0.78 | $0.24 | $1.7 | $0.71 | - Credit card accounts increased by approximately **36%** and aggregate spend on credit card accounts increased by **47%** during Q2 2021 compared to Q2 2020[174](index=174&type=chunk) [Noninterest Expense](index=58&type=section&id=Noninterest%20Expense) Noninterest expense increased for Q2 and YTD June 2021, primarily due to higher salaries, occupancy, and FDIC assessments, offset by lower OREO expense Key Financial Data | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total noninterest expense | $31.3 | $28.8 | $60.2 | $56.7 | | % Change YoY | 8.7% | - | 6.1% | - | | Salaries and employee benefits | $16.9 | $15.8 | $32.4 | $31.5 | | Equipment and occupancy expense | $2.8 | $2.4 | $5.5 | $4.8 | | FDIC and other regulatory assessments | $1.4 | $0.6 | $3.0 | $1.9 | | OREO expense | $0.54 | $1.3 | $0.7 | $1.9 | - Total employees increased by **7.1%** from **492** at June 30, 2020, to **527** at June 30, 2021[175](index=175&type=chunk) - The Company increased its reserve for credit losses on unfunded loan commitments by **$500,000** in Q2 2021, charged to other operating expenses[175](index=175&type=chunk) [Income Tax Expense](index=59&type=section&id=Income%20Tax%20Expense) Income tax expense increased for Q2 and YTD June 2021, with a stable effective tax rate, benefiting from stock option and restricted stock vesting Key Financial Data | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax expense | $13.3 | $10.7 | $26.3 | $18.8 | | Effective tax rate | 21.0% | 21.0% | 20.6% | 20.0% | - The Company recognized excess tax benefits of **$724,000** and **$2.4 million** for the three and six months ended June 30, 2021, respectively, from stock option exercises and restricted stock vesting[178](index=178&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Discusses market risk, primarily interest rate risk, and management strategies to maintain net interest margins within targeted ranges - The Company is subject to interest rate risk due to mismatches between maturities of rate-sensitive assets and liabilities[180](index=180&type=chunk) - The asset-liability committee manages interest rate risk by monitoring economic indicators and maintaining a 'gap' position to ensure net interest margins do not change more than **10%** for a **100 basis point** rate change or **15%** for a **200 basis point** rate change[181](index=181&type=chunk)[182](index=182&type=chunk) - There have been no material changes to the Company's policies or procedures for analyzing interest rate risk or its sensitivity to changes in interest rates since December 31, 2020[182](index=182&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effectiveness of disclosure controls and procedures as of June 30, 2021, with no material changes in internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of **June 30, 2021**[186](index=186&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter[187](index=187&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The Company is not a party to any material legal proceedings, though it may be involved in ordinary course legal actions - Management does not believe the Company or the Bank is currently a party to any material legal proceedings[188](index=188&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the Company's risk factors from those disclosed in the Annual Report on Form 10-K for 2020 - No material changes in the Company's risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020[189](index=189&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds to report - None[191](index=191&type=chunk) [Item 3. Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities - None[192](index=192&type=chunk) [Item 4. Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the Company - Not applicable[193](index=193&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) No other information to disclose - None[194](index=194&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - Exhibits include Section 302 and 906 Certifications of the CEO and CFO, and various Inline XBRL documents[195](index=195&type=chunk)

ServisFirst Bancshares, Inc. (NYSE:SFBS) Q2 2021 Earnings Conference Call July 19, 2021 5:15 PM ET Company Participants Ed Woodie - Controller Tom Broughton - Chief Executive Officer Henry Abbott - Chief Credit Officer Bud Foshee - Chief Financial Officer Rodney Rushing - Executive Vice President and Chief Operating Officer Conference Call Participants Graham Dick - Piper Sandler Kevin Fitzsimmons - D.A. Davidson. William Wallace - Raymond James Operator Good day and welcome to the ServisFirst Bancshares In ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q (Mark one) For the transition period from _______to_______ Commission file number 001-36452 SERVISFIRST BANCSHARES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 26-0734029 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 2500 Woodcrest Place, Birmingham, Alabama 35209 (Address of Principal Executive Of ices) (Zip Code) (205) 94 ...

ServisFirst Bancshares, Inc. (NYSE:SFBS) Q1 2021 Earnings Conference Call April 19, 2021 5:15 PM ET Company Participants Ed Woodie - Controller Tom Broughton - Chief Executive Officer Henry Abbott - Chief Credit Officer Bud Foshee - Chief Financial Officer Conference Call Participants Graham Dick - Piper Sandler Will Curtiss - Hovde Group Kevin Fitzsimmons - D.A. Davidson William Wallace - Raymond James Operator Good afternoon and welcome to the ServisFirst Bancshares Inc. First Quarter Earnings Conference ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020 OR Delaware 26-0734029 2500 Woodcrest Place, Birmingham, Alabama 35209 (Address of Principal Executive Of ices) (Zip Code) (205) 949-0302 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: ☐ TRANSITION REPORT PURSUANT TO SECTI ...