Core Viewpoint - ServisFirst Bancshares (SFBS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings outlook, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to buying pressure from institutional investors, resulting in stock price increases [4][5]. Recent Performance and Analyst Sentiment - For the fiscal year ending December 2024, ServisFirst is expected to earn $3.75 per share, reflecting a -4.8% change from the previous year, but the Zacks Consensus Estimate has increased by 6.4% over the past three months [8]. - The upgrade to Zacks Rank 2 places ServisFirst in the top 20% of Zacks-covered stocks, indicating strong potential for price appreciation in the near term [11]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [7][9]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks are considered for higher ratings, which reflects superior earnings estimate revisions [9].

Financial Performance - Net income for the quarter ended March 31, 2024, was $50.0 million, compared to $58.0 million for the same period in 2023[110]. - Basic and diluted earnings per common share were both $0.92 for the first quarter of 2024, down from $1.07 and $1.06 in the first quarter of 2023[110]. - Return on average assets was 1.26% for Q1 2024, down from 1.63% in Q1 2023[112]. - Return on average stockholders' equity decreased to 13.82% in Q1 2024 from 17.83% in Q1 2023[112]. - Net income for Q1 2024 was $50.0 million, down from $58.0 million in Q1 2023, primarily due to a $5.8 million decrease in net interest income[154]. - Net interest income decreased to $102.5 million in Q1 2024 from $108.3 million in Q1 2023, attributed to a $1.48 billion increase in average deposits, or 12.3% year-over-year[157]. - Total non-interest income increased by $2.5 million to $8.8 million in Q1 2024 compared to $6.3 million in Q1 2023[154]. - Noninterest income rose to $8.8 million in Q1 2024, a $2.5 million increase, with service charges on deposit accounts up 11.2% to $2.2 million and mortgage banking revenue up 53.4% to $678,000[166][167]. Asset and Liability Management - As of March 31, 2024, consolidated total assets were $15.72 billion, a decrease of $408.0 million, or 2.5%, from $16.13 billion at December 31, 2023[109]. - Total loans increased to $11.88 billion, up $221.9 million, or 1.9%, from $11.66 billion at December 31, 2023[109]. - Total deposits decreased to $12.75 billion, down $522.1 million, or 3.9%, from $13.27 billion at December 31, 2023[109]. - Investment securities available-for-sale totaled $1.07 billion as of March 31, 2024, up from $900.2 million at December 31, 2023[114]. - Total loans outstanding increased to $11,880,696 thousand as of March 31, 2024, up from $11,629,802 thousand in 2023, representing a growth of 2.15%[124]. - Total deposits decreased by $522.1 million to $12,751,448 thousand at March 31, 2024, from $13,273,511 thousand at December 31, 2023[130]. - Non-interest-bearing demand deposits accounted for 20.61% of total deposits, while interest-bearing demand deposits made up 16.19% as of March 31, 2024[132]. - The average total assets for the quarters ended March 31, 2024, and 2023 were $15.96 billion and $14.40 billion, respectively, indicating a growth in asset base[137]. - Loans represented 73.7% of total uses of funds in Q1 2024, down from 81.0% in Q1 2023, indicating a shift in asset allocation[138]. Credit Quality - Non-performing assets to total assets ratio remained strong at 0.22%[112]. - Total nonperforming loans rose to $34,837 thousand, a 61.8% increase from $21,533 thousand at December 31, 2023[126]. - The allowance for credit losses at the end of the period was $155,892 thousand, which is 1.31% of total loans, compared to 1.28% in the previous year[124]. - The provision for credit losses was $4,368 thousand for the quarter, slightly up from $4,197 thousand in the same period last year[124]. - The net charge-offs to average loans ratio was 0.06% for the quarter, compared to 0.05% in the previous year[124]. - Nonperforming loans increased to $34.8 million, or 0.29% of total loans, as of March 31, 2024, compared to $21.5 million, or 0.18%, at December 31, 2023[165]. Capital and Funding - Total stockholders' equity attributable to the company increased to $1.48 billion (9.4% of total assets) as of March 31, 2024, up from $1.44 billion (8.9% of total assets) at the end of 2023[139]. - The company is categorized as well-capitalized under FDIC guidelines, with CET1 capital to risk-weighted assets at 11.07% as of March 31, 2024, exceeding the required 4.50%[140]. - The capital ratios required by Basel III are met, with total capital to risk-weighted assets at 12.61% for consolidated figures as of March 31, 2024, above the 8.00% minimum requirement[142]. - The company has approximately $888.0 million in available unused federal funds lines of credit with regional banks to meet short-term funding needs[135]. - The company’s funding strategy includes growth in the deposit base, loan repayments, and the issuance of debt, which are deemed adequate for both immediate and long-term funding needs[136]. Regulatory and Operational Insights - The Alabama Banking Department regulates the Bank's dividend payments, which are subject to statutory and regulatory limitations[145]. - The Federal Reserve increased the targeted federal funds rate to 5.25% - 5.50% as of March 31, 2024, impacting funding costs[158]. - The number of full-time equivalent employees increased by 32, or 5.6%, to 605 as of March 31, 2024, compared to 573 a year earlier[168]. - FDIC and other regulatory assessments surged by 157.4% to $3.9 million in Q1 2024, reflecting a special assessment implemented in the previous quarter[168][169]. - The asset-liability committee (ALCO) continues to monitor interest rate risks, with current policy limits for interest margin changes ranging from -4% to -17% under various rate shock scenarios[176].

Financial Data and Key Metrics Changes - The bank reported over $200 million in net loan growth during the first quarter, with a loan pipeline increasing by 63% since year-end [5] - Net interest margin increased by 9 basis points to 2.66%, with net interest income at its highest level since Q1 2023 [31] - Total deposits decreased by over $220 million due to deposit optimization actions and seasonal declines [11][34] Business Line Data and Key Metrics Changes - The owner-occupied real estate segment grew by $120 million, contributing to overall loan growth [8] - Approximately 70% of loan production in Q4 and Q1 was variable rate, with 75% of variable rate loans having a floor [32] Market Data and Key Metrics Changes - The bank's non-performing assets (NPAs) to total assets ratio was 22 basis points, significantly below peers and improved from 50 basis points at the end of 2019 [29] - The bank experienced a modest increase in non-interest income, excluding a one-time death benefit from a bank-owned life insurance policy [34] Company Strategy and Development Direction - The bank is focused on balanced growth in both loans and deposits, with expectations for continued loan growth throughout 2024 [40] - The management is optimistic about the economic environment, noting a resurgence in project activity that had been postponed [51] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's credit quality and loan portfolio performance, with a positive outlook for 2024 [9][35] - The bank anticipates that the yield on interest-earning assets will continue to increase as fixed-rate loans and investments mature and reprice [12] Other Important Information - The allowance for credit losses compared to non-accruals was 452%, significantly greater than the peer group [29] - The bank's CET1 ratio increased to 11.07% and Tier 1 capital to average assets ratio increased to 9.44% [14] Q&A Session Summary Question: What is the outlook for total loan growth in 2024? - Management indicated a strong loan pipeline, estimating it could close at $150 million a month, with optimism for loan growth opportunities throughout the year [40] Question: What industry is the non-performing asset tied to? - The non-performing asset is related to owner-occupied real estate, with the borrower current on all loan payments [42] Question: What are the expectations for operating expenses in the near term? - Management expects operating expenses to peak next year, with significant growth anticipated this year due to loan repricing [46]

Exhibit 99.1 SERVISFIRST BANCSHARES, INC. Announces Results For First Quarter of 2024 Birmingham, Ala. – (BUSINESS WIRE) – April 22, 2024 – ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended March 31, 2024. First Quarter 2024 Highlights: Tom Broughton, Chairman, President, and CEO, said, "We hired nine new bankers during the first quarter after seven in the fourth quarter and we continue to attract the best talent in the industry in the Southeast. ...

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, 2023 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 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: ...

Financial Data and Key Metrics Changes - The company reported a year-over-year deposit growth of 15% and new commercial accounts increased by 15% over 2022, with total new accounts including retail accounts up 12% year-over-year [27] - Net interest income improved in the fourth quarter, with net interest margin increasing to $102 million compared to $100 million in the third quarter [45] - The adjusted loan-to-deposit ratio at year-end was 80.2%, indicating strong liquidity [44] Business Line Data and Key Metrics Changes - Loan growth was slight in the fourth quarter, with loans growing in five of the last seven months of the year, and a loan pipeline increased by 50% since the last quarter [29][31] - Credit card income was impacted by a vendor billing issue, but the company anticipates a return to normalized levels in 2024 [46] - The correspondent banking division saw a 15% increase in balances during the second half of the year, with nine new relationships opened in the fourth quarter [34] Market Data and Key Metrics Changes - The company is optimistic about loan demand, particularly in commercial real estate (CRE) and construction, with expectations for high-single-digit growth in loans for the year [68] - The Memphis market presents a significant opportunity, with total deposits in the area at $41 billion [26] Company Strategy and Development Direction - The company has pivoted its focus from deposit gathering to loan growth, with a balanced approach expected for 2024 [27][51] - The correspondent banking strategy is expected to benefit from a declining rate environment, with a focus on improving liability costs [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan demand and activity picking up, with expectations for normalized loan growth in 2024 [30][68] - Credit quality remains strong, with charge-offs down to 9 basis points, indicating a healthy loan portfolio [41] Other Important Information - The company has no broker deposits or Federal Home loan advances, positioning it well for potential regulatory changes [28] - The CFO, Bud Foshee, is retiring, and Kirk Pressley will take over the role [48][61] Q&A Session All Questions and Answers Question: Loan growth expectations for 2023 - Management is optimistic about loan demand, expecting high-single-digit growth for the year, with a robust pipeline indicating potential for significant loan activity [67][68] Question: Impact of expenses and tax credits - The company discussed the impact of one-time expenses and tax credits, clarifying that the tax credit investment had a net benefit to the bottom line [71][80] Question: Deposit costs and margin stabilization - Management is working to reduce higher deposit costs and stabilize margins, with efforts to rationalize interest-bearing deposit rates [74]

Financial Performance - Net income available to common stockholders for Q3 2023 was $53.3 million, a decrease of $10.7 million or 16.7% from $64.0 million in Q3 2022[114]. - Basic and diluted earnings per common share for Q3 2023 were both $0.98, compared to $1.18 and $1.17 in Q3 2022[114]. - Net interest income for Q3 2023 was $99.7 million, a decrease of $26.7 million or 21% from Q3 2022[116]. - Total non-interest income decreased by 9.0% to $8.135 million for Q3 2023 compared to $8.939 million in Q3 2022[183]. - Net credit card income decreased by $80,000 to $2.5 million for Q3 2023, and by $1.0 million to $6.6 million for the nine months ended September 30, 2023[185]. - Income tax expense was $8.5 million for Q3 2023, down from $13.0 million in Q3 2022, and $32.6 million for the nine months, compared to $40.9 million in the same period last year[189]. Asset and Liability Management - As of September 30, 2023, consolidated total assets increased to $16.0 billion, up $1.4 billion or 9.9% from $14.6 billion at December 31, 2022[113]. - Total loans decreased to $11.6 billion, down $46.8 million or 0.4% from $11.7 billion at December 31, 2022[125]. - Total deposits rose to $13.1 billion, an increase of $1.6 billion or 13.8% from $11.5 billion at December 31, 2022[113]. - The company had approximately $8.5 billion in uninsured deposits as of September 30, 2023, compared to $7.7 billion at December 31, 2022[140]. - Total stockholders' equity attributable to the company was $1.40 billion, or 9.04% of total assets, as of September 30, 2023, up from $1.30 billion or 8.89% at December 31, 2022[150]. Credit Quality - The allowance for credit losses is believed adequate to absorb all expected future losses over the contractual life of the loans in the portfolio[126]. - Nonperforming loans increased to $22.6 million at September 30, 2023, from $17.8 million at December 31, 2022, indicating a rise of 27%[133]. - Total charge-offs for the three months ended September 30, 2023, were $5,143, compared to $3,333 in the same period of 2022, representing a 54% increase[130]. - The total allowance for credit losses at the end of the period was $152,247, which is 1.31% of total loans[132]. - Nonperforming loans increased to $21.5 million, or 0.19% of total loans, as of September 30, 2023, compared to $17.8 million, or 0.15%, at December 31, 2022[182]. Interest Income and Expense - The net interest spread in Q3 2023 was 1.63%, down from 3.25% in Q3 2022, primarily due to rising deposit costs[164]. - The taxable-equivalent yield on interest-earning assets increased to 5.65% for the three months ended September 30, 2023, from 4.30% for the same period in 2022[171]. - The cost of total interest-bearing liabilities increased to 4.02% for the three months ended September 30, 2023, from 1.05% for the same period in 2022[171]. - The average rates paid on interest-bearing liabilities increased by 293 basis points, negatively impacting net interest income[181]. - The company anticipates that net interest income will benefit in the short term following the cessation of Federal Reserve rate increases[168]. Operational Efficiency - Total noninterest expense for Q3 2023 was $41.7 million, a decrease of $1.0 million or 2.4% compared to Q3 2022, while for the nine months it increased by $69,000 or 0.1% to $119.8 million[186]. - Salaries and employee benefits increased by $393,000 or 2.0% to $20.1 million for Q3 2023, while decreasing by $781,000 or 1.3% to $57.9 million for the nine months[187]. - Other operating expenses decreased by $2.8 million or 26.3% to $7.8 million for Q3 2023, and by $5.4 million or 20.5% to $20.8 million for the nine months[192]. Future Outlook - The company anticipates slower loan growth due to the rising interest rate environment, impacting future performance[182]. - The company anticipates long-term sustainable growth in deposits through market share development in less mature markets[139].

Financial Data and Key Metrics Changes - The bank's total deposit growth for the quarter was $854 million, with a year-over-year increase of 12.3% [36][40] - Non-performing assets to total assets decreased from 16 basis points in the second quarter to 15 basis points in the third quarter [38] - Charge-offs for the quarter were 15 basis points annualized, with year-to-date annualized charge-offs at only 11 basis points [39] Business Line Data and Key Metrics Changes - The loan pipeline increased by 74% over the prior quarter, with loans growing by $87 million in September [24][50] - The bank's correspondent banking division saw a strong deposit rebound, closing the quarter with total fundings just over $2 billion [36] - Past due loans to total loans were down to only 8 basis points, representing a 45% reduction from the second quarter [38] Market Data and Key Metrics Changes - The bank's liquidity position was reported at $2 billion, which is a significant competitive advantage in the industry [34][66] - The adjusted loan-to-deposit ratio at September 30, 2023, was 80.5% [67] Company Strategy and Development Direction - The bank is focused on building core deposits and has seen fantastic results over the last four quarters [23] - A new community banking office is set to open in the Piedmont region, similar to existing offices in other locations, aimed at producing good, granular, and sticky deposits [35] - The bank plans to rationalize deposit costs as profitability improves and is implementing a special incentive to grow loans from October 15 to January 15 [45][76] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic outlook has improved, with consumer resilience observed since the pandemic [5][22] - The bank expects loan growth to increase, particularly in the fourth quarter, driven by a robust loan pipeline and increased borrower confidence [99] - Management believes that the higher for longer interest rate environment will benefit future earnings for the bank [33] Other Important Information - The bank's CET1 ratio was reported at 10.69%, and the Tier-1 leverage ratio was 9.35%, indicating strong capital [43] - The bank has no brokered deposits and no federal home loan bank advances, which positions it favorably compared to peers [77] Q&A Session Summary Question: What contributed to the margin stabilization and future outlook? - Management indicated that improvements in loan repricing are being offset by deposit repricing, but they expect net income to benefit as loans are repriced [46][75] Question: What is the outlook for loan growth? - Management expressed optimism for loan growth, citing a significant increase in the loan pipeline and a special incentive to boost loan production [99] Question: How does the bank plan to manage liquidity and funding for loan growth? - The bank currently has $2 billion in cash and is focused on maintaining liquidity while being selective in loan growth [102] Question: What is the strategy regarding the reserve ratio? - Management stated that the reserve ratio has been maintained due to comfort with credit quality, and they are not planning significant changes at this time [103]

Financial Performance - Net income available to common stockholders for Q2 2023 was $53.4 million, a decrease of $8.7 million or 14.0% from $62.1 million in Q2 2022[110] - Basic and diluted earnings per common share for Q2 2023 were both $0.98, compared to $1.14 in the same period of 2022[110] - Net income for Q2 2023 was $53.4 million, down from $62.1 million in Q2 2022, representing a decrease of 11.2%[157] - Noninterest income totaled $8.6 million for the three months ended June 30, 2023, a decrease of $924,000 or 9.7% compared to $9.5 million in 2022, and $14.9 million for the six months ended June 30, 2023, down 14.6% from $17.5 million in 2022[176] Asset and Liability Management - As of June 30, 2023, total assets increased to $15.1 billion, up $477.1 million or 3.3% from $14.6 billion at December 31, 2022[109] - Total loans decreased to $11.6 billion, down $83.1 million or 0.7% from $11.7 billion at December 31, 2022[122] - Total deposits rose to $12.3 billion, an increase of $741.4 million or 6.4% from $11.5 billion at December 31, 2022[109] - The company reported a total stockholders' equity of $1.36 billion, representing 9.04% of total assets as of June 30, 2023, up from 8.89% at the end of 2022[144] - The company maintained a CET 1 Capital to Risk Weighted Assets ratio of 10.37% as of June 30, 2023, exceeding the required 4.50%[147] Credit Quality - The allowance for credit losses is believed adequate to absorb all expected future losses over the contractual life of the loans in the portfolio[123] - Nonperforming loans increased to $22.8 million at June 30, 2023, from $17.8 million at December 31, 2022, reflecting a rise of 28.3%[129] - Net charge-offs for the six months ended June 30, 2023, were $4.9 million, compared to $3.1 million for the same period in 2022, indicating an increase of 57.4%[127] - Provision for credit losses decreased to $6.7 million for the three months ended June 30, 2023, down from $9.5 million in the same period of 2022, and $10.9 million for the six months ended June 30, 2023, down from $14.9 million in 2022[175] Interest Income and Expense - Net interest income for Q2 2023 was $101.3 million, a decrease of $15.1 million or 13% from Q2 2022[115] - Net interest margin for Q2 2023 was 2.93%, down 33 basis points from 3.26% in Q2 2022[115] - The yield on loans for Q2 2023 was 5.94%, up from 4.38% in Q2 2022, indicating an increase of 1.56 percentage points[160] - The cost of total interest-bearing liabilities increased to 3.55% in Q2 2023 from 0.46% in Q2 2022, reflecting significant upward pressure on funding costs[160] - Net interest spread decreased to 1.94% in Q2 2023 from 3.08% in Q2 2022[165] Deposits and Funding - Average deposits for Q2 2023 were $11.6 billion, a decrease of $459.4 million or 4% year-over-year[115] - The company estimates approximately $7.8 billion in uninsured deposits as of June 30, 2023, compared to $7.5 billion at December 31, 2022[136] - The company had $1.30 billion in federal funds purchased at June 30, 2023, with an average interest rate of 5.13% for the quarter[139] - Liquid assets totaled $1.7 billion, with an additional $1.9 billion available from loans pledged to the FHLB[140] Operational Efficiency - Total noninterest expense was $38.5 million for the three months ended June 30, 2023, a decrease of $1.4 million or 3.4% from $39.8 million in 2022, while for the six months it increased to $78.1 million, up 1.4% from $77.0 million in 2022[178] - Salaries and employee benefits decreased by $1.9 million or 9.4% to $18.8 million for the three months ended June 30, 2023, compared to $20.7 million in 2022[179] - The number of full-time equivalent employees increased from 540 as of June 30, 2022, to 577 as of June 30, 2023[179] Regulatory and Risk Management - The asset-liability committee monitors economic indicators and conducts quarterly analyses of the rate sensitivity position to manage interest rate risk[184] - The gap between rate-sensitive assets and liabilities is analyzed to maintain net interest margins within a targeted range, with a policy to limit changes to no more than 10% for a 100 basis point change in interest rates[185] - The company is categorized as well-capitalized under FDIC guidelines as of June 30, 2023[145]

Financial Data and Key Metrics Changes - The bank reported a decline in the loan-to-deposit ratio to 85%, indicating strong deposit growth and a stable balance sheet [7][8] - The net interest margin decreased from 3.15% to 2.93%, with expectations for stabilization in Q3 and improvement in Q4 [21][22] - The bank's capital ratios improved, with the Tier 1 leverage ratio increasing from 9.91% to 10.25% and the CET1 ratio rising from 10.01% to 10.37% [23] Business Line Data and Key Metrics Changes - The correspondent banking division saw total active relationships increase to 360 banks, with total fundings at $1.84 billion [12] - Credit card revenue increased, with new correspondent agent banks added during the quarter [13] - The bank's allowance for loan and lease losses (ALLL) grew to 1.31% of total loans, reflecting a conservative outlook [16] Market Data and Key Metrics Changes - The bank experienced a slowdown in loan demand as borrowers assessed the economic environment, but normalization is expected in the coming months [9] - Noninterest-bearing deposits remained stable, with a focus on maintaining strong core banking relationships [21][36] Company Strategy and Development Direction - The bank is focused on loan repricing efforts to improve margins, with a significant portion of new loans being floating rate [10][22] - The management emphasized the importance of growing core deposits and maintaining a strong balance sheet without reliance on broker deposits [7][8] - The bank is actively exploring opportunities in markets like Nashville and Florida, where loan demand remains strong [32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the economic environment, indicating a return to normal lending practices [27][33] - The bank is confident in its ability to generate loan growth in line with deposit growth, projecting a one-to-one relationship [34] - The management noted that the bank's credit quality remains strong, with no significant deterioration in the commercial real estate portfolio [16][19] Other Important Information - The bank achieved its liquidity goal of $1 billion, with cash and short-term treasuries exceeding this amount [21] - The bank's efficiency ratio remains one of the best in the industry, with efforts to control expense growth [24][62] Q&A Session All Questions and Answers Question: Can you talk about the balance between loan growth and deposit growth for the rest of the year? - Management indicated that they are becoming more confident and expect loan growth to match deposit growth, stating that for every dollar of deposits, they will likely make a dollar of loans [27][34] Question: What is driving the stability in noninterest-bearing deposits compared to peers? - Management noted that as a business bank, they have significant size accounts, which can fluctuate but have remained stable recently [38] Question: Can you provide insight into the bond portfolio additions this quarter? - The bank added $350 million in short-term treasuries with yields around 5.35% to 5.40%, reducing the average life of the portfolio to 3.2 years [43][44] Question: Any updates on the commercial real estate book? - Management confirmed no material changes in the commercial real estate portfolio, with office loans representing only 3.5% of the total loan portfolio [52][53] Question: What are the expectations for margin stabilization and growth? - Management expects margins to stabilize in Q3 and begin to expand in Q4, with loan repricing efforts contributing positively [55][61]