Open the filing on EDGARServisFirst Bancshares, Inc. Announces Results For First Quarter of 2026
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.
Forward-looking statements notice
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.
| 1st Quarter 2026 | 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 |
|---|
| SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) | | | | |
| (In thousands except share and per share data) | | | | | |
| 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% |
| March 31, 2026 | March 31, 2025 | % Change |
|---|
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | | | |
| (Dollars in thousands) | | | |
| 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)% |
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |
| (In thousands except per share data) | | |
| 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 |
| 1st Quarter 2026 | 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 |
|---|
| LOANS BY TYPE (UNAUDITED) | | | | | |
| (In thousands) | | | | | |
| Commercial, financial and agricultural | $3,189,704 | $3,146,736 | $2,945,784 | $2,966,191 | $2,924,533 |
| Real estate - construction | 1,531,042 | 1,457,628 | 1,532,285 | 1,735,405 | 1,599,410 |
| Real estate - mortgage: | | | | | |
| Owner-occupied commercial | 2,718,512 | 2,739,823 | 2,680,055 | 2,557,711 | 2,543,819 |
| 1-4 family mortgage | 1,695,140 | 1,671,713 | 1,625,296 | 1,561,461 | 1,494,189 |
| Non-owner occupied commercial | 4,739,642 | 4,603,389 | 4,448,710 | 4,338,697 | 4,259,566 |
| Subtotal: Real estate - mortgage | 9,153,294 | 9,014,925 | 8,754,061 | 8,457,869 | 8,297,574 |
| Consumer | 71,873 | 77,623 | 79,837 | 73,095 | 65,314 |
| Total loans | $13,945,913 | $13,696,912 | $13,311,967 | $13,232,560 | $12,886,831 |
| 1st Quarter 2026 | 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 |
|---|
| SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED) | | | | |
| (Dollars in thousands) | | | | |
| Allowance 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% |
| 1st Quarter 2026 | 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | 1st Quarter 2025 |
|---|
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | | | |
| (In thousands except per share data) | | | |
| 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 |
| 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 |
|---|
| AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) |
| ON A FULLY TAXABLE-EQUIVALENT BASIS |
| (Dollars in thousands) |
| 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 Bank Davis Mange (205) 949-3420 dmange@servisfirstbank.com