ServisFirst Bancshares, Inc. Announces Results For First Quarter of 2026 | SFBS Stock News

BIRMINGHAM, Ala., April 20, 2026 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended March 31, 2026. First Quarter 2026 Highlights: Diluted earnings per share of $1.52 for the quarter, up 31% from the first quarter of 2025. Diluted earnings per share includes the impact of a $1.0 million, or $0.02 per share, accounting reversal related to BOLI income in the fourth quarter of 2025. Excluding this impact, diluted earnings per share would have been $1.54, a 33% increase from the first quarter of 2025.Net interest margin of 3.53%, up 15 basis points from the fourth quarter of 2025 and 61 basis points from the first quarter of 2025.Efficiency ratio under 30%, down from 35% in the first quarter of 2025.Cost of interest-bearing deposits of 2.79%, down 22 basis points from the fourth quarter of 2025 and 61 basis points from the first quarter of 2025.Loans grew $249 million, or 7% annualized, during the quarter.Deposits grew $268 million, or 8% annualized, during the quarter.Book value per share of $34.99, up 13.4% annualized from the fourth quarter of 2025 and 14.5% from the first quarter of 2025.Liquidity remains strong with $1.84 billion in cash and cash equivalents, equaling 10% of our total assets, and no FHLB advances or brokered deposits. Consolidated common equity tier 1 capital to risk-weighted assets increased from 11.48% in the first quarter of 2025 to 11.86% in the first quarter of 2026.Return on average common stockholder’s equity increased from 15.63% to 17.91% year-over-year. Tom Broughton, Chairman, President, and CEO, said, “The outlook for loan and deposit growth for the remainder of the year is very positive and we believe we have the best commercial bankers in the Southeast.” David Sparacio, CFO, said, “We delivered another quarter of stellar results from a net income perspective. Compared with the same quarter a year ago, our net income increased 31%, and for the second consecutive quarter, our efficiency ratio was below 30%. We continue to see margin expansion and net income growth, which resulted in a 1.89% Return on Average Assets, despite robust hiring in our new Houston market late last year.” * This press release includes certain non-GAAP financial measures: tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.” FINANCIAL SUMMARY (UNAUDITED) (in Thousands except share and per share amounts) Period Ending March 31, 2026 Period Ending December 31, 2025 % Change From Period Ending December 31, 2025 to Period Ending March 31, 2026 Period Ending March 31, 2025 % Change From Period Ending March 31, 2025 to Period Ending March 31, 2026 QUARTERLY OPERATING RESULTS Net Income $82,971 $86,384 (4.0)% $63,224 31.2 % Net Income Available to Common Stockholders $82,971 $86,353 (3.9)% $63,224 31.2 % Diluted Earnings Per Share $1.52 $1.58 (3.8)% $1.16 31.0 % Return on Average Assets 1.89% 1.91% 1.45% Return on Average Common Stockholders' Equity 17.91% 18.93% 15.63% Average Diluted Shares Outstanding 54,695,017 54,675,802 54,656,630 BALANCE SHEET Total Assets $18,171,287 $17,727,190 2.5 % $18,636,766 (2.5)% Loans 13,945,913 13,696,912 1.8 % 12,886,831 8.2 % Non-interest-bearing Demand Deposits 2,836,622 2,684,272 5.7 % 2,647,577 7.1 % Total Deposits 14,486,364 14,219,034 1.9 % 14,429,061 0.4 % Stockholders' Equity 1,912,537 1,850,347 3.4 % 1,668,900 14.6 % DETAILED FINANCIALS ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $83.0 million, $86.4 million, and $63.2 million for the first quarter of 2026, fourth quarter of 2025, and first quarter of 2025, respectively. Basic and diluted earnings per common share were both $1.52 in the first quarter of 2026, compared to $1.58 in the fourth quarter of 2025 and $1.16 in the first quarter of 2025. Annualized return on average assets was 1.89% and annualized return on average common stockholders’ equity was 17.91% for the first quarter of 2026, compared to 1.45% and 15.63%, respectively, for the first quarter of 2025. Net interest income was $148.1 million for the first quarter of 2026, compared to $146.5 million for the fourth quarter of 2025 and $123.6 million for the first quarter of 2025. The net interest margin in the first quarter of 2026 was 3.53% compared to 3.38% in the fourth quarter of 2025 and 2.92% in the first quarter of 2025. Loan yields were 6.18% during the first quarter of 2026 compared to 6.29% during the fourth quarter of 2025 and 6.28% during the first quarter of 2025. Investment yields were 3.78% during the first quarter of 2026 compared to 3.77% during the fourth quarter of 2025, and 3.31% during the first quarter of 2025. Average interest-bearing deposit rates were 2.79% during the first quarter of 2026, compared to 3.01% during the fourth quarter of 2025 and 3.40% during the first quarter of 2025. Average federal funds purchased rates were 3.74% during the first quarter of 2026, compared to 4.01% during the fourth quarter of 2025 and 4.50% during the first quarter of 2025. During the fourth quarter of 2025, the Company redeemed its $30 million 4.5% Subordinated Notes due November 2027. Average loans for the first quarter of 2026 were $13.78 billion, an increase of $279.5 million, or 8.4% annualized, from average loans of $13.50 billion for the fourth quarter of 2025, and an increase of $1.08 billion, or 8.5%, from average loans of $12.71 billion for the first quarter of 2025. Ending total loans for the first quarter of 2026 were $13.95 billion, an increase of $249.0 million, or 7.4% annualized, from $13.70 billion for the fourth quarter of 2025, and an increase of $1.06 billion, or 8.2%, from $12.89 billion for the first quarter of 2025. Average total deposits for the first quarter of 2026 were $14.13 billion, a decrease of $84.6 million, or 2.4% annualized, from average total deposits of $14.21 billion for the fourth quarter of 2025, and an increase of $236.9 million, or 1.7%, from average total deposits of $13.89 billion for the first quarter of 2025. Ending total deposits for the first quarter of 2026 were $14.49 billion, an increase of $267.3 million, or 7.6% annualized, from $14.22 billion for the fourth quarter of 2025, and an increase of $57.3 million, or 0.4%, from $14.43 billion for the first quarter of 2025. Non-performing assets to total assets were 1.00% for the first quarter of 2026, compared to 0.97% for the fourth quarter of 2025 and 0.40% for the first quarter of 2025. The year-over-year increase was attributable to a large real-estate secured relationship. Annualized net charge-offs to average loans were 0.25% for the first quarter of 2026, compared to 0.20% for the fourth quarter of 2025 and 0.19% for the first quarter of 2025. During the first quarter of 2026, we recorded a $6.7 million charge-off related to a long-standing impaired relationship. The allowance for credit losses to total loans at March 31, 2026, December 31, 2025, and March 31, 2025, was 1.25%, 1.25%, and 1.28%, respectively. We recorded a $10.6 million provision for credit losses in the first quarter of 2026 compared to $8.1 million in the fourth quarter of 2025, and $6.5 million in the first quarter of 2025. Non-interest income increased $2.6 million, or 31.0%, to $10.8 million for the first quarter of 2026 from $8.3 million in the first quarter of 2025, and decreased $4.9 million, or 30.9%, on a linked quarter basis. Service charges on deposit accounts increased $738,000, or 28.9%, to $3.3 million for the first quarter of 2026 from $2.6 million in the first quarter of 2025, and were relatively flat, on a linked quarter basis. We increased our service charge rates on many of our treasury management products in July of 2025. Mortgage banking revenue increased $1.3 million, or 208.6%, to $1.9 million for the first quarter of 2026 from $613,000 in the first quarter of 2025, and increased $228,000, or 13.7%, on a linked quarter basis. The increase on a year-over year basis was primarily due to an increase in loans sold into the secondary market. We also increased our per-loan administrative fee in the first quarter of 2026. Credit card income increased $234,000, or 11.9%, to $2.2 million for the first quarter of 2026 from $2.0 million in the first quarter of 2025, and increased $367,000, or 20.0%, on a linked quarter basis. Bank-owned life insurance (“BOLI”) income increased $685,000, or 32.1%, to $2.8 million for the first quarter of 2026 from $2.1 million in the first quarter of 2025, and decreased $5.3 million, or 65.4%, on a linked quarter basis. The decrease on a linked quarter basis was due to a death benefit received in the fourth quarter of 2025, as well as a $1.0 million, or $.02 per share, reduction in the first quarter of 2026 arising due to an adjustment of the amount in the fourth quarter of 2025. Other operating income decreased $373,000, or 37.3%, to $628,000 for the first quarter of 2026 from $1.0 million in the first quarter of 2025, and decreased $76,000, or 10.8%, on a linked quarter basis. Non-interest expense increased $1.3 million, or 2.8%, to $47.4 million for the first quarter of 2026 from $46.1 million in the first quarter of 2025, and increased $701,000, or 1.5%, on a linked quarter basis. Salary and benefit expense increased $4.0 million, or 17.4%, to $26.9 million for the first quarter of 2026 from $22.9 million in the first quarter of 2025, and increased $3.0 million, or 12.6%, on a linked quarter basis, primarily due to the full impact of our Houston market expansion and seasonally higher payroll taxes during the first quarter of 2026. The number of full-time equivalent employees increased by 32 (of which, 24 are frontline), or 5.0%, to 668 at March 31, 2026 compared to 636 at March 31, 2025, and increased by 2 from the end of the fourth quarter of 2025. Equipment and occupancy expense increased $226,000, or 6.1%, to $3.9 million for the first quarter of 2026 from $3.7 million in the first quarter of 2025, and increased $211,000, or 5.6%, on a linked quarter basis. Third party processing and other services expense decreased $213,000, or 2.8%, to $7.5 million for the first quarter of 2026 from $7.7 million in the first quarter of 2025, and decreased $254,000, or 3.3%, on a linked quarter basis. Professional services expense increased $10,000, or 0.5%, to $1.9 million for the first quarter of 2026 from $1.9 million in the first quarter of 2025, and increased $462,000, or 31.2%, on a linked quarter basis. Other operating expenses decreased $2.6 million, or 37.4%, to $4.4 million for the first quarter of 2026 from $6.9 million in the first quarter of 2025, and decreased $2.8 million, or 39.5%, on a linked quarter basis. The efficiency ratio was 29.80% during the first quarter of 2026 compared to 34.97% during the first quarter of 2025 and 28.78% during the fourth quarter of 2025. Income tax expense increased $2.1 million, or 13.4%, to $18.0 million in the first quarter of 2026, compared to $15.9 million in the first quarter of 2025, and decreased $3.2 million, or 15.2%, on a linked quarter basis. Our effective tax rate was 17.82% for the first quarter of 2026 compared to 20.06% for the first quarter of 2025, and 19.72% on a linked quarter basis. During the first quarter of 2026, we purchased Investment Tax Credits, which reduced our tax expense. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the first quarters of 2026 and 2025 of $229,000 and $470,000, respectively.About ServisFirst Bancshares, Inc. ServisFirst Bancshares, Inc. (the “Company”) is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank (the “Bank”), the Company provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, Texas and Virginia. Through the Bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions. ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbancshares.com. Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). The words “believe,” “expect,” “anticipate,” “project,” “plan,” “intend,” “will,” “could,” “would,” “might” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. The Company cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company’s senior management and involve risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including, but not limited to: general economic conditions, especially in the credit markets and in the Southeast; the impact of tariffs and trade wars on general economic conditions, the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting principles and tax laws, policies or guidelines; changes in legislation or regulatory requirements; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; the threat of foreign wars; and increased competition from both banks and nonbank financial institutions. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. The Company assumes no obligation to update or revise any forward-looking statements that are made from time to time. More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling (205) 949-0302. SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) (In thousands except share and per share data) 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 1st Quarter 2025 CONSOLIDATED STATEMENT OF INCOME Interest income $241,480 $251,388 $251,308 $246,635 $241,096 Interest expense 93,332 104,867 117,860 114,948 117,543 Net interest income 148,148 146,521 133,448 131,687 123,553 Provision for credit losses 10,637 7,922 9,463 11,296 6,630 Net interest income after provision for credit losses 137,511 138,599 123,985 120,391 116,923 Non-interest income 10,840 15,691 2,833 421 8,277 Non-interest expense 47,384 46,683 47,996 44,204 46,107 Income before income tax 100,967 107,607 78,822 76,608 79,093 Provision for income tax 17,996 21,223 13,251 15,184 15,869 Net income 82,971 86,384 65,571 61,424 63,224 Preferred stock dividends - 31 - 31 - Net income available to common stockholders $82,971 $86,353 $65,571 $61,393 $63,224 Earnings per share - basic $1.52 $1.58 $1.20 $1.12 $1.16 Earnings per share - diluted $1.52 $1.58 $1.20 $1.12 $1.16 Average diluted shares outstanding 54,695,017 54,675,802 54,667,955 54,664,480 54,656,630 CONSOLIDATED BALANCE SHEET DATA Total assets $18,171,287 $17,727,190 $17,584,199 $17,378,628 $18,636,766 Loans 13,945,913 13,696,912 13,311,967 13,232,560 12,886,831 Debt securities 1,684,421 1,728,901 1,849,739 1,914,503 1,905,550 Non-interest-bearing demand deposits 2,836,622 2,684,272 2,598,895 2,632,058 2,647,577 Total deposits 14,486,364 14,219,034 14,106,922 13,862,319 14,429,061 Borrowings 34,750 34,750 64,750 64,747 64,745 Stockholders' equity 1,912,537 1,850,347 1,781,647 1,721,783 1,668,900 Shares outstanding 54,663,123 54,624,955 54,621,441 54,618,545 54,601,217 Book value per share $34.99 $33.87 $32.62 $31.52 $30.57 Tangible book value per share (1) $34.74 $33.62 $32.37 $31.27 $30.32 SELECTED FINANCIAL RATIOS (Annualized) Net interest margin 3.53% 3.38% 3.09% 3.10% 2.92% Return on average assets 1.89% 1.91% 1.47% 1.40% 1.45% Return on average common stockholders' equity 17.91% 18.93% 14.88% 14.56% 15.63% Efficiency ratio 29.80% 28.78% 35.22% 33.46% 34.97% Non-interest expense to average earning assets 1.13% 1.08% 1.11% 1.04% 1.09% CAPITAL RATIOS (2) Common equity tier 1 capital to risk-weighted assets 11.86% 11.65% 11.49% 11.38% 11.48% Tier 1 capital to risk-weighted assets 11.87% 11.66% 11.50% 11.38% 11.48% Total capital to risk-weighted assets 13.13% 12.93% 12.91% 12.81% 12.93% Tier 1 capital to average assets 10.71% 10.26% 10.01% 9.78% 9.48% Tangible common equity to total tangible assets (1) 10.46% 10.37% 10.06% 9.84% 8.89% (1) This press release contains certain non-GAAP financial measures. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.” (2) Regulatory capital ratios for most recent period are preliminary. GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures This press release contains the non-GAAP financial measures of tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill associated with our acquisition of Metro Bancshares, Inc. in January 2015. We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data. At March 31, 2026 At December 31,2025 At September 30,2025 At June 30,2025 At March 31,2025 Book value per share - GAAP$34.99 $33.87 $32.62 $31.52 $30.57 Total common stockholders' equity - GAAP 1,912,537 1,850,347 1,781,647 1,721,783 1,668,900 Adjustment for Goodwill (13,615) (13,615) (13,615) (13,615) (13,615) Tangible common stockholders' equity - non-GAAP$1,898,922 $1,836,732 $1,768,032 $1,708,168 $1,655,285 Tangible book value per share - non-GAAP$34.74 $33.62 $32.37 $31.27 $30.32 Stockholders' equity to total assets - GAAP 10.53 % 10.44 % 10.13 % 9.91 % 8.95 % Total assets - GAAP$18,171,287 $17,727,190 $17,584,199 $17,378,628 $18,636,766 Adjustment for Goodwill (13,615) (13,615) (13,615) (13,615) (13,615) Total tangible assets - non-GAAP$18,157,672 $17,713,575 $17,570,584 $17,365,013 $18,623,151 Tangible common equity to total tangible assets - non-GAAP 10.46 % 10.37 % 10.06 % 9.84 % 8.89 % CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands) March 31, 2026 March 31, 2025 % Change ASSETS Cash and due from banks $100,561 $121,645 (17)% Interest-bearing balances due from depository institutions 1,218,296 3,218,753 (62)% Federal funds sold and securities purchased with agreement to resell 517,765 9,322 5,454 % Cash and cash equivalents 1,836,622 3,349,720 (45)% Available for sale debt securities, at fair value 1,037,151 1,203,837 (14)% Held to maturity debt securities (fair value of $602,476 and $639,455, respectively) 647,270 701,713 (8)% Restricted equity securities 12,466 12,156 3 % Mortgage loans held for sale 12,893 11,386 13 % Loans 13,945,913 12,886,831 8 % Less allowance for credit losses (173,905) (165,034) 5 % Loans, net 13,772,008 12,721,797 8 % Premises and equipment, net 62,056 59,431 4 % Goodwill 13,615 13,615 - % Other assets 777,206 563,111 38 % Total assets $18,171,287 $18,636,766 (2)% LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest-bearing demand $2,836,622 $2,647,577 7 % Interest-bearing 11,649,742 11,781,484 (1)% Total deposits 14,486,364 14,429,061 - % Federal funds purchased 1,546,987 2,358,326 (34)% Other borrowings 34,750 64,745 (46)% Other liabilities 190,649 115,734 65 % Total liabilities 16,258,750 16,967,866 (4)% Stockholders' equity: Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at March 31, 2026 and March 31, 2025 - - - % Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,663,123 shares issued and outstanding at March 31, 2026, and 54,601,217 shares issued and outstanding at March 31, 2025 55 54 2 % Additional paid-in capital 238,644 235,840 1 % Retained earnings 1,676,013 1,457,614 15 % Accumulated other comprehensive loss (2,675) (25,108) (89)% Total stockholders' equity attributable to ServisFirst Bancshares, Inc. 1,912,037 1,668,400 15 % Noncontrolling interest 500 500 - % Total stockholders' equity 1,912,537 1,668,900 15 % Total liabilities and stockholders' equity $18,171,287 $18,636,766 (2)% CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) Three Months Ended March 31, 2026 2025 Interest income: Interest and fees on loans $210,066 $196,936 Investment Securities 16,099 16,029 Federal funds sold and securities purchased with agreement to resell 5,561 20 Other interest and dividends 9,754 28,111 Total interest income 241,480 241,096 Interest expense: Deposits 78,285 94,745 Borrowed funds 15,047 22,798 Total interest expense 93,332 117,543 Net interest income 148,148 123,553 Provision for credit losses 10,637 6,630 Net interest income after provision for credit losses 137,511 116,923 Noninterest income: Service charges on deposit accounts 3,296 2,558 Mortgage banking 1,892 613 Credit card income 2,202 1,968 Bank-owned life insurance income 2,822 2,137 Other operating income 628 1,001 Total noninterest income 10,840 8,277 Noninterest expenses: Salaries and employee benefits 26,853 22,879 Equipment and occupancy expense 3,948 3,722 Third party processing and other services 7,525 7,738 Professional services 1,943 1,933 FDIC and other regulatory assessments 2,745 2,854 Other real estate owned expense 20 33 Other operating expenses 4,350 6,948 Total noninterest expenses 47,384 46,107 Income before income taxes 100,967 79,093 Provision for income taxes 17,996 15,869 Net income 82,971 63,224 Dividends on preferred stock - - Net income available to common stockholders $82,971 $63,224 Basic earnings per common share $1.52 $1.16 Diluted earnings per common share $1.52 $1.16 LOANS BY TYPE (UNAUDITED) (In thousands) 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 1st Quarter 2025Commercial, financial and agricultural $3,189,704 $3,146,736 $2,945,784 $2,966,191 $2,924,533Real estate - construction 1,531,042 1,457,628 1,532,285 1,735,405 1,599,410Real estate - mortgage: Owner-occupied commercial 2,718,512 2,739,823 2,680,055 2,557,711 2,543,8191-4 family mortgage 1,695,140 1,671,713 1,625,296 1,561,461 1,494,189Non-owner occupied commercial 4,739,642 4,603,389 4,448,710 4,338,697 4,259,566Subtotal: Real estate - mortgage 9,153,294 9,014,925 8,754,061 8,457,869 8,297,574Consumer 71,873 77,623 79,837 73,095 65,314Total loans $13,945,913 $13,696,912 $13,311,967 $13,232,560 $12,886,831 SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED) (Dollars in thousands) 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 1st Quarter 2025Allowance for credit losses: Beginning balance$171,683 $170,235 $169,959 $165,034 $164,458 Loans charged off: Commercial, financial and agricultural 8,291 7,695 7,947 6,849 2,415 Real estate - construction - - - - 46 Real estate - mortgage 91 64 1,294 580 3,571 Consumer 171 466 110 73 60 Total charge offs 8,553 8,224 9,350 7,502 6,092 Recoveries: Commercial, financial and agricultural 178 1,532 237 959 171 Real estate - construction - - 30 - - Real estate - mortgage - - - 1 - Consumer 35 10 21 58 27 Total recoveries 213 1,542 288 1,018 198 Net charge-offs 8,340 6,682 9,062 6,484 5,894 Provision for credit losses 10,562 8,130 9,338 11,409 6,470 Ending balance$173,905 $171,683 $170,235 $169,959 $165,034 Allowance for credit losses to total loans 1.25% 1.25% 1.28% 1.28% 1.28% Allowance for credit losses to total average loans 1.26% 1.27% 1.29% 1.31% 1.30%Net charge-offs to total average loans 0.25% 0.20% 0.27% 0.20% 0.19% Provision for credit losses to total average loans 0.31% 0.24% 0.28% 0.35% 0.21%Nonperforming assets: Nonaccrual loans$176,613 $168,351 $166,662 $68,619 $73,793 Loans 90+ days past due and accruing 1,274 478 965 3,549 111 Other real estate owned and repossessed assets 3,072 2,583 611 311 756 Total$180,959 $171,412 $168,238 $72,479 $74,660 Nonperforming loans to total loans 1.28% 1.23% 1.26% 0.55% 0.57%Nonperforming assets to total assets 1.00% 0.97% 0.96% 0.42% 0.40%Nonperforming assets to earning assets 1.05% 1.01% 1.00% 0.43% 0.41%Allowance for credit losses to nonaccrual loans 98.47% 101.98% 102.14% 247.69% 223.64% CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) 1st Quarter2026 4th Quarter2025 3rd Quarter2025 2nd Quarter2025 1st Quarter2025 Interest income: Interest and fees on loans $210,066 $214,252 $210,987 $206,521 $196,936 Investment Securities 16,099 17,204 17,343 16,567 16,029 Federal funds sold and securities purchased with agreement to resell 5,561 5,671 4,724 1,592 20 Other interest and dividends 9,754 14,261 18,254 21,955 28,111 Total interest income 241,480 251,388 251,308 246,635 241,096 Interest expense: Deposits 78,285 86,920 98,735 93,488 94,745 Borrowed funds 15,047 17,947 19,125 21,460 22,798 Total interest expense 93,332 104,867 117,860 114,948 117,543 Net interest income 148,148 146,521 133,448 131,687 123,553 Provision for credit losses 10,637 7,922 9,463 11,296 6,630 Net interest income after provision for credit losses 137,511 138,599 123,985 120,391 116,923 Noninterest income: Service charges on deposit accounts 3,296 3,339 3,316 2,671 2,558 Mortgage banking 1,892 1,664 1,864 1,323 613 Credit card income 2,202 1,835 2,405 2,119 1,968 Securities losses - - (7,812) (8,563) - Bank-owned life insurance income 2,822 8,149 2,405 2,126 2,137 Other operating income 628 704 655 745 1,001 Total noninterest income 10,840 15,691 2,833 421 8,277 Noninterest expenses: Salaries and employee benefits 26,853 23,838 25,522 22,576 22,879 Equipment and occupancy expense 3,948 3,737 3,615 3,523 3,722 Third party processing and other services 7,525 7,779 8,095 8,005 7,738 Professional services 1,943 1,481 1,857 1,904 1,933 FDIC and other regulatory assessments 2,745 2,641 2,742 2,753 2,854 Other real estate owned expense 20 13 82 27 33 Other operating expenses 4,350 7,194 6,083 5,416 6,948 Total noninterest expenses 47,384 46,683 47,996 44,204 46,107 Income before income taxes 100,967 107,607 78,822 76,608 79,093 Provision for income taxes 17,996 21,223 13,251 15,184 15,869 Net income 82,971 86,384 65,571 61,424 63,224 Dividends on preferred stock - 31 - 31 - Net income available to common stockholders $82,971 $86,353 $65,571 $61,393 $63,224 Basic earnings per common share $1.52 $1.58 $1.20 $1.12 $1.16 Diluted earnings per common share $1.52 $1.58 $1.20 $1.12 $1.16 AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) ON A FULLY TAXABLE-EQUIVALENT BASIS (Dollars in thousands) 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 1st Quarter 2025 Average Balance Yield /Rate Average Balance Yield /Rate Average Balance Yield /Rate Average Balance Yield /Rate Average Balance Yield /Rate Assets: Interest-earning assets: Loans, net of unearned income (1) Taxable $13,751,447 6.18% $13,474,271 6.30% $13,175,297 6.34% $12,979,759 6.37% $12,683,077 6.29% Tax-exempt (2) 32,976 5.82 30,670 5.52 30,478 5.47 30,346 5.51 25,044 4.94 Total loans, net of unearned income 13,784,423 6.18 13,504,941 6.29 13,205,775 6.34 13,010,105 6.37 12,708,121 6.28 Mortgage loans held for sale 10,680 4.40 9,887 4.49 11,351 4.82 11,739 5.23 6,731 4.76 Debt securities: Taxable 1,702,499 3.78 1,826,632 3.77 1,926,101 3.60 1,965,089 3.37 1,934,739 3.31 Tax-exempt (2) 444 5.41 444 5.41 444 5.41 492 4.88 589 5.43 Total securities (3) 1,702,943 3.78 1,827,076 3.77 1,926,545 3.60 1,965,581 3.37 1,935,328 3.31 Federal funds sold and securities purchased with agreement to resell 501,377 4.50 469,148 4.79 365,733 5.12 124,303 5.14 1,670 4.86 Restricted equity securities 12,228 6.17 12,193 6.61 12,167 6.36 12,146 6.64 11,461 7.43 Interest-bearing balances with banks 1,041,026 3.73 1,393,155 4.00 1,608,118 4.45 1,952,479 4.47 2,526,382 4.48 Total interest-earning assets $17,052,677 5.75% $17,216,400 5.79% $17,129,689 5.82% $17,076,353 5.80% $17,189,693 5.69% Non-interest-earning assets: Cash and due from banks 103,847 102,066 103,470 109,506 108,540 Net premises and equipment 61,253 61,009 60,614 59,944 59,633 Allowance for credit losses, accrued interest and other assets 552,337 556,704 415,586 380,700 352,282 Total assets $17,770,114 $17,936,179 $17,709,359 $17,626,503 $17,710,148 Interest-bearing liabilities: Interest-bearing deposits: Checking $2,101,953 1.60% $2,126,615 1.77% $2,069,440 2.16% $2,222,000 1.78% $2,461,900 2.38% Savings 110,843 1.42 106,551 1.52 103,668 1.66 101,506 1.63 101,996 1.61 Money market 7,812,168 3.01 7,816,487 3.23 7,965,115 3.67 7,616,747 3.67 7,363,163 3.61 Time deposits 1,373,023 3.42 1,392,749 3.80 1,344,257 3.97 1,321,404 4.09 1,361,558 4.24 Total interest-bearing deposits 11,397,987 2.79 11,442,402 3.01 11,482,480 3.41 11,261,657 3.33 11,288,617 3.40 Federal funds purchased 1,593,215 3.74 1,712,399 4.01 1,640,377 4.46 1,855,860 4.49 1,994,766 4.50 Other borrowings 34,750 4.05 59,207 4.21 64,761 4.21 64,750 4.26 64,750 4.30 Total interest-bearing liabilities $13,025,952 2.91% $13,214,008 3.15% $13,187,618 3.55% $13,182,267 3.50% $13,348,133 3.57% Non-interest-bearing liabilities: Non-interest-bearing checking 2,728,354 2,768,495 2,651,043 2,633,552 2,600,775 Other liabilities 137,231 143,680 122,873 119,829 120,291 Stockholders' equity 1,879,072 1,813,097 1,762,980 1,716,232 1,670,402 Accumulated other comprehensive loss (495) (3,101) (15,155) (25,377) (29,453) Total liabilities and stockholders' equity $17,770,114 $17,936,179 $17,709,359 $17,626,503 $17,710,148 Net interest spread 2.84% 2.64% 2.27% 2.30% 2.12% Net interest margin 3.53% 3.38% 3.09% 3.10% 2.92% (1) Average loans include nonaccrual loans in all periods. Loan fees of $5,186, $5,464, $6,103, $4,430, and $3,764 are included in interest income in the first quarter of 2026, fourth quarter of 2025, third quarter of 2025, second quarter of 2025, and first quarter of 2025, respectively. (2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%. (3) Unrealized losses on debt securities of $(2,713), $(6,311), $(22,574), $(36,381), and $(41,970) for the first quarter of 2026, fourth quarter of 2025, third quarter of 2025, second quarter of 2025, and first quarter of 2025, respectively, are excluded from the yield calculation. Contact: ServisFirst BankDavis Mange (205) 949-3420dmange@servisfirstbank.com