8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) April 17, 2023

ServisFirst Bancshares, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-36452	26-0734029
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2500 Woodcrest Place, Birmingham, Alabama	35209
(Address of principal executive offices)	(Zip Code)

(205) 949-0302

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of exchange on which registered
Common	SFBS	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 – Results of Operations and Financial Condition.

On April 17, 2023, ServisFirst Bancshares, Inc., a Delaware corporation (“ServisFirst”), issued a press release announcing its operating results for the quarter ended March 31, 2023.  A copy of the press release is attached as Exhibit 99.1.

The information furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Item 7.01 – Regulation FD Disclosure

         On April 17, 2023, ServisFirst hosted a call to review 2023 first quarter earnings.  The supplemental presentation and data table are attached as Exhibit 99.2 and Exhibit 99.3 respectively and are incorporated by reference into this Item 7.01.

         The information in this report is being furnished, not filed, pursuant to Regulation FD.  Accordingly, the information in Items 7.01 and 9.01 of this report will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Statements in this presentation 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 and Section 27A of the Securities Act of 1933.  The words "believe," "expect," "anticipate," "project," “plan,” “intend,” “will,” “would,” “might” “could”  and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.’s senior management and involve a number of 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: general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, 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, economic stimulus initiatives; 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; and increased competition from both banks and non-bank 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 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 contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made.  ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.

Item 9.01 – Financial Statements and Exhibits

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) Exhibits. The following exhibits are included with this Current Report on Form 8-K:

Exhibit No.	Description
99.1	Press Release dated April 17, 2023
99.2	Supplemental presentation April 17, 2023
99.3	Supplemental data table April 17, 2023

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SERVISFIRST BANCSHARES, INC.
	By:	/s/ Thomas A. Broughton, III
Dated:  April 17, 2023		Thomas A. Broughton, III
		Chairman, President and Chief Executive Officer

EX-99.1

Exhibit 99.1

ServisFirst Bancshares, Inc. Announces Results For First Quarter of 2023

BIRMINGHAM, Ala.--(BUSINESS WIRE)--April 17, 2023--ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended March 31, 2023.

First Quarter 2023 Highlights:

• Diluted earnings per share were $1.06 for the first quarter of 2023, unchanged from the first quarter of 2022. When adjusting for income on Paycheck Protection Program (“PPP”) loans in 2022, diluted earnings per share increased 7% over the first quarter of 2022. ⁽¹⁾
• An increase of 23% in new accounts opened year-over-year.
• Deposit balances grew $69 million during the first quarter of 2023 while the deposit pipeline increased by $244 million, or 51%.
• Available liquidity sources totaled $8.4 billion as of March 31, 2023.
• Return on assets increased from 1.53% to 1.63% year-over-year.
• Book value per share grew from $21.61 to $24.63, or 14%, year-over-year.
• No brokered deposits or FHLB borrowings as of March 31, 2023.
• Bank level Tier 1 capital to average assets increased from 8.08% to 9.91% year-over-year.
• Industry-leading credit quality measures.

Tom Broughton, Chairman, President and CEO, said, “Our business model has proven itself over the past 18 years and we continue to attract new customers with a 23% increase in new accounts opened year-over-year due to our financial stability, our commitment to customer service, and our team of responsive bankers.”

Bud Foshee, CFO, said, “We are pleased with a very good first quarter of growth in profitability, liquidity, and capital while maintaining pristine credit quality.”

(1) See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for a discussion of these Non-GAAP financial measures

FINANCIAL SUMMARY (UNAUDITED)
(In thousands except share and per share amounts)
	Period Ending March 31, 2023			Period Ending December 31, 2022			% Change From Period Ending December 31, 2022 to Period Ending March 31, 2023		Period Ending March 31, 2022			% Change From Period Ending March 31, 2022 to Period Ending March 31, 2023
QUARTERLY OPERATING RESULTS
Net Income	$	57,971		$	67,724		(14)	%	$	57,613		1	%
Net Income Available to Common Stockholders	$	57,971		$	67,693		(14)	%	$	57,613		1	%
Diluted Earnings Per Share	$	1.06		$	1.24		(15)	%	$	1.06		-	%
Return on Average Assets		1.63	%		1.89	%				1.53	%
Return on Average Common Stockholders' Equity		17.83	%		21.27	%				20.09	%
Average Diluted Shares Outstanding		54,534,482			54,537,685					54,522,042
BALANCE SHEET
Total Assets	$	14,566,559		$	14,595,753		-	%	$	15,339,419		(5)	%
Loans		11,629,802			11,687,968		-	%		9,898,957		17	%
Non-interest-bearing Demand Deposits		2,898,736			3,321,347		(13)	%		4,889,495		(41)	%
Total Deposits		11,615,317			11,546,805		1	%		12,408,755		(6)	%
Stockholders' Equity		1,339,817			1,297,896		3	%		1,172,975		14	%

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $58.0 million for the quarter ended March 31, 2023, compared to net income and net income available to common stockholders of $57.6 million for the same quarter in 2022. Basic and diluted earnings per common share were $1.07 and $1.06, respectively, for the first quarter of 2023, compared to $1.06 for both in the first quarter of 2022.

Annualized return on average assets was 1.63% and annualized return on average common stockholders’ equity was 17.83% for the first quarter of 2023, compared to 1.53% and 20.09%, respectively, for the first quarter of 2022.

Net interest income was $108.3 million for the first quarter of 2023, compared to $122.4 million for the fourth quarter of 2022 and $105.7 million for the first quarter of 2022. The net interest margin in the first quarter of 2023 was 3.15% compared to 3.52% in the fourth quarter of 2022 and 2.89% in the first quarter of 2022. Loan yields were 5.70% during the first quarter of 2023 compared to 5.32% during the fourth quarter of 2022 and 4.29% during the first quarter of 2022. Investment yields were 2.54% during the first quarter of 2023, compared to 2.49% during the fourth quarter of 2022 and 2.17% during the first quarter of 2022. Average interest-bearing deposit rates were 2.68% during the first quarter of 2023, compared to 1.70% during the fourth quarter of 2022 and 0.31% during the first quarter of 2022. Average federal funds purchased rates were 4.67% during the first quarter of 2023, compared to 3.75% during the fourth quarter of 2022 and 0.23% during the first quarter of 2022.

Average loans for the first quarter of 2023 were $11.65 billion, an increase of $166.4 million, or 5.9% annualized, over average loans of $11.49 billion for the fourth quarter of 2022, and an increase of $2.00 billion, or 20.8%, over average loans of $9.65 billion for the first quarter of 2022.

Average total deposits for the first quarter of 2023 were $11.50 billion, an increase of $118.9 million, or 4.2%, annualized, over average total deposits of $11.39 billion for the fourth quarter of 2022, and a decrease of $875.0 million, or 7.1%, over average total deposits of $12.38 billion for the first quarter of 2022.

Non-performing assets to total assets were 0.12% for the first quarter of 2023, unchanged compared to 0.12% for the fourth quarter of 2022, and a decrease of two basis points compared to 0.14% for the first quarter of 2022. Annualized net charge-offs to average loans were 0.05% for the first quarter of 2023, compared to 0.06% and 0.11% for the fourth quarter of 2022 and first quarter of 2022, respectively. The allowance for credit losses as a percentage of total loans at March 31, 2023, December 31, 2022 and March 31, 2022, was 1.28%, 1.25%, and 1.21%, respectively. We recorded a $4.2 million provision for credit losses in the first quarter of 2023 compared to $7.1 million in the fourth quarter of 2022, and $5.4 million in the first quarter of 2022.

Non-interest income decreased $1.6 million, or 20.5%, to $6.3 million for the first quarter of 2023 from $7.9 million in the first quarter of 2022, and decreased $645,000, or 9.3%, on a linked quarter basis. Service charges on deposit accounts decreased $208,000, or 9.7%, to $1.9 million from the first quarter of 2022 to the first quarter of 2023, and increased $68,000, or 3.6%, on a linked quarter basis. Mortgage banking revenue decreased $84,000, or 16.0%, to $442,000 from the first quarter of 2022 to the first quarter of 2023, and decreased $72,000, or 14.0%, on a linked quarter basis. Net credit card revenue decreased $683,000, or 28.8%, to $1.7 million during the first quarter of 2023, compared to $2.4 million during the first quarter of 2022, and decreased $572,000, or 25.3%, on a linked quarter basis. The number of credit card accounts increased approximately 8.2% and the aggregate amount of spend on all credit card accounts increased 14.7% during the first quarter of 2023 compared to the first quarter of 2022. Cash surrender value life insurance increased $13,000, or 0.8%, to $1.6 million during the first quarter of 2023, compared to $1.6 million during the first quarter of 2022, and increased $21,000, or 1.3%, on a linked quarter basis. Other operating income for the first quarter of 2023 decreased $4.0 million, or 86.3%, to $635,000 from $4.6 million in the first quarter of 2022, and decreased $90,000, or 12.4%, on a linked quarter basis. Other income in the first quarter of 2022 included $3.4 million of income on our interest rate cap. We did not recognize any income on the cap during the first quarter of 2023 and $162,000 during the fourth quarter of 2022. Merchant service revenue increased by $118,000, or 35.2%, to $455,000, during the first quarter of 2023, from $336,000 during the first quarter of 2022, and decreased $35,000, or 7.2%, on a linked quarter basis.

Non-interest expense for the first quarter of 2023 increased $2.4 million, or 6.6%, to $39.7 million from $37.2 million in the first quarter of 2022, and increased $1.6 million, or 4.1%, on a linked quarter basis. Salary and benefit expense for the first quarter of 2023 increased $765,000, or 4.2%, to $19.1 million from $18.3 million in the first quarter of 2022, and decreased $164,000, or 0.9%, on a linked quarter basis. The number of FTE employees increased by 62 to 573 at March 31, 2023 compared to 511 at March 31, 2022, and increased by 2 from the end of the fourth quarter of 2022. Equipment and occupancy expense increased $502,000, or 17.1%, to $3.4 million in the first quarter of 2023, from $2.9 million in the first quarter of 2022, and increased $172,000, or 5.3% on a linked-quarter basis. Third party processing and other services expense increased $1.7 million, or 30.0%, to $7.3 million in the first quarter of 2023, from $5.6 million in the first quarter of 2022, and decreased $886,000, or 10.8%, on a linked-quarter basis. The increase year-over-year in third party processing also includes Federal Reserve Bank charges related to correspondent bank settlement activities. Professional services expense increased $662,000, or 66.7%, to $1.7 million in the first quarter of 2023, from $992,000 in the first quarter of 2022, and increased $732,000, or 79.4%, on a linked quarter basis. FDIC and other regulatory assessments increased $385,000, or 34.0%, to $1.5 million in the first quarter of 2023, from $1.1 million in the first quarter of 2022, and increased $206,000, or 15.7%, on a linked quarter basis. Other operating expenses for the first quarter of 2023 decreased $1.6 million, or 18.8%, to $6.7 million from $8.3 million in the first quarter of 2022, and increased $1.7 million on a linked-quarter basis. The efficiency ratio was 34.60% during the first quarter of 2023 compared to 32.74% during the first quarter of 2022 and compared to 29.45% during the fourth quarter of 2022.

Income tax expense decreased $687,000, or 5.1%, to $12.8 million in the first quarter of 2023, compared to $13.5 million in the first quarter of 2022. Our effective tax rate was 18.07% for the first quarter of 2023 compared to 18.96% for the first quarter of 2022. We recognized an aggregate of $3.9 million in credits during the first quarter of 2023 related to investments in tax credit partnerships, compared to an aggregate of $3.3 million in credits during the first quarter of 2022. 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 quarter of 2023 and 2022 of $1.1 million and $572,000, respectively.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

We originated over 7,400 PPP loans with an aggregate balance of approximately $1.5 billion during the COVID-19 pandemic. At March 31, 2022, we had outstanding PPP loans of $107.6 million. Financial measures in this press release that are presented adjusted for our PPP activities are net income available to common stockholders and diluted earnings per share. These financial measures exclude the impact of PPP loans, net of tax, and are considered non-GAAP financial measures. 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 a number of 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.

			Three Months Ended March 31, 2022
Net income - GAAP			$	57,613
	Adjustments:
	PPP loan income			(4,869	)
		Tax on adjustment		1,222
Adjusted net income - non-GAAP			$	53,966
Diluted earnings per share - GAAP			$	1.06
	Adjustments:
	PPP loan income			(0.09	)
		Tax on adjustment		0.02
Adjusted diluted earnings per share - non-GAAP			$	0.99

About ServisFirst Bancshares, Inc.

ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Birmingham, Huntsville, Mobile, Montgomery and Dothan, Alabama, Northwest Florida, West Central Florida, Nashville, Tennessee, Atlanta, Georgia, Charleston, South Carolina, and Charlotte and Asheville, North Carolina.

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 and Section 27A of the Securities Act of 1933. 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. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.’s senior management and involve a number of 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: the global health and economic crisis precipitated by the COVID-19 outbreak; general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves, interest rate spread relationships and inflation; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes as a result of our reclassification as a large financial institution by the FDIC; changes in our loan portfolio and the deposit base; economic crisis and associated credit issues in industries most impacted by the COVID-19 outbreak; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic stimulus initiatives and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the credit worthiness 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 effect of data breaches, cyberattacks or other data security issues; and increased competition from both banks and non-bank 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, 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 contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. 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 2023			4th Quarter 2022			3rd Quarter 2022			2nd Quarter 2022			1st Quarter 2022
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	181,322		$	170,273		$	149,299		$	126,555		$	113,188
Interest expense		73,021			47,889			22,881			10,187			7,466
Net interest income		108,301			122,384			126,418			116,368			105,722
Provision for credit losses		4,197			7,135			15,603			9,507			5,362
Net interest income after provision for credit losses		104,104			115,249			110,815			106,861			100,360
Non-interest income		6,321			6,966			8,939			9,506			7,948
Non-interest expense		39,664			38,092			42,685			39,821			37,218
Income before income tax		70,761			84,123			77,069			76,546			71,090
Provision for income tax		12,790			16,399			13,038			14,410			13,477
Net income		57,971			67,724			64,031			62,136			57,613
Preferred stock dividends		-			31			-			31			-
Net income available to common stockholders	$	57,971		$	67,693		$	64,031		$	62,105		$	57,613
Earnings per share - basic	$	1.07		$	1.25		$	1.18		$	1.14		$	1.06
Earnings per share - diluted	$	1.06		$	1.24		$	1.17		$	1.14		$	1.06
Average diluted shares outstanding		54,534,482			54,537,716			54,528,554			54,532,385			54,522,042
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	14,566,559		$	14,595,753		$	13,890,030		$	14,494,317		$	15,339,419
Loans		11,629,802			11,687,968			11,278,614			10,617,320			9,898,957
Debt securities		1,646,937			1,678,936			1,714,603			1,790,218			1,617,977
Non-interest-bearing demand deposits		2,898,736			3,321,347			3,661,936			4,686,511			4,889,495
Total deposits		11,615,317			11,546,805			11,051,915			11,772,337			12,408,755
Borrowings		65,417			64,726			64,721			64,716			64,711
Stockholders' equity		1,339,817			1,297,896			1,242,589			1,211,918			1,172,975
Shares outstanding		54,398,025			54,326,527			54,324,007			54,306,875			54,282,132
Book value per share	$	24.63		$	23.89		$	22.87		$	22.32		$	21.61
Tangible book value per share (1)	$	24.38		$	23.64		$	22.62		$	22.07		$	21.36
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin		3.15	%		3.52	%		3.64	%		3.26	%		2.89	%
Return on average assets		1.63	%		1.89	%		1.77	%		1.67	%		1.53	%
Return on average common stockholders' equity		17.83	%		21.27	%		20.49	%		20.93	%		20.09	%
Efficiency ratio		34.60	%		29.45	%		31.54	%		31.64	%		32.74	%
Non-interest expense to average earning assets		1.15	%		1.10	%		1.23	%		1.11	%		1.02	%
CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets		10.01	%		9.54	%		9.37	%		9.59	%		9.86	%
Tier 1 capital to risk-weighted assets		10.02	%		9.54	%		9.37	%		9.59	%		9.87	%
Total capital to risk-weighted assets		11.54	%		11.06	%		10.91	%		11.12	%		11.43	%
Tier 1 capital to average assets		9.49	%		9.29	%		8.84	%		8.19	%		7.67	%
Tangible common equity to total tangible assets (1)		9.11	%		8.81	%		8.86	%		8.28	%		7.56	%
(1) This press release also contains certain non-GAAP financial measures, including 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.
(2) Regulatory capital ratios for most recent period are preliminary.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
			March 31, 2023			March 31, 2022			% Change
ASSETS
Cash and due from banks			$	139,175		$	103,439		35		%
Interest-bearing balances due from depository institutions				725,318			3,315,312		(78	)	%
Federal funds sold				6,478			24,638		(74	)	%
	Cash and cash equivalents			870,971			3,443,389		(75	)	%
Available for sale debt securities, at fair value				624,948			784,673		(20	)	%
Held to maturity debt securities (fair value of $937,960 at March 31, 2023 and $799,347 at March 31, 2022)				1,021,989			833,304		23		%
Restricted equity securities				7,307			7,734		(6	)	%
Mortgage loans held for sale				1,651			403		310		%
Loans				11,629,802			9,898,957		17		%
Less allowance for credit losses				(148,965	)		(119,463	)	25		%
	Loans, net			11,480,837			9,779,494		17		%
Premises and equipment, net				60,093			59,908		-		%
Goodwill and other identifiable intangible assets				13,615			13,615		-		%
Other assets				485,148			416,899		16		%
	Total assets		$	14,566,559		$	15,339,419		(5	)	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
	Non-interest-bearing		$	2,898,736		$	4,889,495		(41	)	%
	Interest-bearing			8,716,581			7,519,260		16		%
		Total deposits		11,615,317			12,408,755		(6	)	%
Federal funds purchased				1,480,160			1,639,238		(10	)	%
Other borrowings				65,417			64,711		1		%
Other liabilities				65,848			53,740		23		%
	Total liabilities			13,226,742			14,166,444		(7	)	%
Stockholders' equity:
	Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at March 31, 2023 and March 31, 2022			-			-
	Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,398,025 shares issued and outstanding at March 31, 2023, and 100,000,000 shares authorized; 54,282,132 shares issued and outstanding at March 31, 2022			54			54		-		%
	Additional paid-in capital			229,631			227,127		1		%
	Retained earnings			1,152,681			956,169		21		%
	Accumulated other comprehensive loss			(43,049	)		(10,875	)	296		%
		Total stockholders' equity attributable to ServisFirst Bancshares, Inc.		1,339,317			1,172,475		14		%
	Noncontrolling interest			500			500		-		%
		Total stockholders' equity		1,339,817			1,172,975		14		%
	Total liabilities and stockholders' equity		$	14,566,559		$	15,339,419		(5	)	%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
	Three Months Ended March 31,
	2023		2022
Interest income:
Interest and fees on loans	$	163,732	$	103,105
Taxable securities		10,895		8,223
Nontaxable securities		21		43
Federal funds sold		614		13
Other interest and dividends		6,060		1,804
Total interest income		181,322		113,188
Interest expense:
Deposits		55,713		5,843
Borrowed funds		17,308		1,623
Total interest expense		73,021		7,466
Net interest income		108,301		105,722
Provision for credit losses		4,197		5,362
Net interest income after provision for credit losses		104,104		100,360
Non-interest income:
Service charges on deposit accounts		1,934		2,142
Mortgage banking		442		526
Credit card income		1,689		2,372
Securities losses		-		(3,335	)
Increase in cash surrender value life insurance		1,621		1,608
Other operating income		635		4,635
Total non-interest income		6,321		7,948
Non-interest expense:
Salaries and employee benefits		19,066		18,301
Equipment and occupancy expense		3,435		2,933
Third party processing and other services		7,284		5,605
Professional services		1,654		992
FDIC and other regulatory assessments		1,517		1,132
Other real estate owned expense		6		3
Other operating expense		6,702		8,252
Total non-interest expense		39,664		37,218
Income before income tax		70,761		71,090
Provision for income tax		12,790		13,477
Net income		57,971		57,613
Net income available to common stockholders	$	57,971	$	57,613
Basic earnings per common share	$	1.07	$	1.06
Diluted earnings per common share	$	1.06	$	1.06

LOANS BY TYPE (UNAUDITED)
(In thousands)
		1st Quarter 2023		4th Quarter 2022		3rd Quarter 2022		2nd Quarter 2022		1st Quarter 2022
Commercial, financial and agricultural		$	3,081,926	$	3,145,317	$	3,104,155	$	2,966,040	$	2,955,927
Real estate - construction			1,469,670		1,532,388		1,433,698		1,383,155		1,164,690
Real estate - mortgage:
	Owner-occupied commercial		2,243,436		2,199,280		2,145,621		2,026,807		1,919,811
	1-4 family mortgage		1,138,645		1,146,831		1,089,826		1,015,698		926,697
	Other mortgage		3,624,071		3,597,750		3,438,762		3,160,510		2,869,158
Subtotal: Real estate - mortgage			7,006,152		6,943,861		6,674,209		6,203,015		5,715,666
Consumer			72,054		66,402		66,552		65,110		62,674
Total loans		$	11,629,802	$	11,687,968	$	11,278,614	$	10,617,320	$	9,898,957

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)
(Dollars in thousands)
			1st Quarter 2023			4th Quarter 2022			3rd Quarter 2022			2nd Quarter 2022			1st Quarter 2022
Allowance for credit losses:
Beginning balance			$	146,297		$	140,967		$	128,387		$	119,463		$	116,660
Loans charged off:
	Commercial financial and agricultural			1,257			2,116			2,902			1,667			2,574
	Real estate - construction			-			-			-			-			-
	Real estate - mortgage			26			-			170			23			27
	Consumer			390			200			261			123			75
		Total charge offs		1,673			2,316			3,333			1,813			2,676
Recoveries:
	Commercial financial and agricultural			128			393			297			1,217			105
	Real estate - construction			3			-			-			-			-
	Real estate - mortgage			1			-			-			-			-
	Consumer			11			118			12			13			12
		Total recoveries		143			511			309			1,230			117
	Net charge-offs			1,530			1,805			3,024			583			2,559
	Provision for credit losses			4,197			7,135			15,604			9,507			5,362
	Ending balance		$	148,965		$	146,297		$	140,967		$	128,387		$	119,463
	Allowance for credit losses to total loans			1.28	%		1.25	%		1.25	%		1.21	%		1.21	%
	Allowance for credit losses to total average
		loans		1.30	%		1.27	%		1.29	%		1.26	%		1.24	%
	Net charge-offs to total average loans			0.05	%		0.06	%		0.11	%		0.02	%		0.11	%
	Provision for credit losses to total average loans			0.14	%		0.25	%		0.57	%		0.37	%		0.23	%
	Nonperforming assets:
		Nonaccrual loans	$	13,157		$	12,450		$	11,655		$	10,540		$	14,738
		Loans 90+ days past due and accruing		4,683			5,391			4,803			4,991			4,686
		Other real estate owned and repossessed assets		248			248			1,245			1,207			1,989
	Total		$	18,088		$	18,089		$	17,703		$	16,738		$	21,413
	Nonperforming loans to total loans			0.15	%		0.15	%		0.15	%		0.15	%		0.20	%
	Nonperforming assets to total assets			0.12	%		0.12	%		0.13	%		0.12	%		0.14	%
	Nonperforming assets to earning assets			0.13	%		0.13	%		0.13	%		0.12	%		0.14	%
	Allowance for credit losses to nonaccrual loans			1,132.24	%		1,175.08	%		1,209.50	%		1,218.05	%		826.19	%
	Restructured accruing loans					$	2,480		$	236		$	421		$	426
	Restructured accruing loans to total loans						0.02	%		-	%		-	%		-	%
	TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)
	(In thousands)
						4th Quarter 2022			3rd Quarter 2022			2nd Quarter 2022			1st Quarter 2022
	Beginning balance:					$	2,041		$	2,403		$	2,482		$	2,576
		Additions					444			-			-			-
		Net (paydowns) / advances					(5)			(362)			(79)			(94)
		Charge-offs					-			-			-			-
		Transfer to OREO					-			-			-			-
	Ending balance					$	2,480		$	2,041		$	2,403		$	2,482

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
	1st Quarter 2023		4th Quarter 2022		3rd Quarter 2022		2nd Quarter 2022			1st Quarter 2022
Interest income:
Interest and fees on loans	$	163,732	$	153,924	$	131,375	$	111,287		$	103,105
Taxable securities		10,895		10,895		11,089		10,515			8,223
Nontaxable securities		21		27		30		37			43
Federal funds sold		614		818		632		93			13
Other interest and dividends		6,060		4,609		6,173		4,623			1,804
Total interest income		181,322		170,273		149,299		126,555			113,188
Interest expense:
Deposits		55,713		33,471		13,655		6,427			5,843
Borrowed funds		17,308		14,418		9,226		3,760			1,623
Total interest expense		73,021		47,889		22,881		10,187			7,466
Net interest income		108,301		122,384		126,418		116,368			105,722
Provision for credit losses		4,197		7,135		15,603		9,507			5,362
Net interest income after provision for credit losses		104,104		115,249		110,815		106,861			100,360
Non-interest income:
Service charges on deposit accounts		1,934		1,866		1,892		2,133			2,142
Mortgage banking		442		514		784		614			526
Credit card income		1,689		2,261		2,612		2,672			2,372
Securities losses		-		-		-		(2,833	)		(3,335	)
Increase in cash surrender value life insurance		1,621		1,600		1,637		1,633			1,608
Other operating income		635		725		2,014		5,287			4,635
Total non-interest income		6,321		6,966		8,939		9,506			7,948
Non-interest expense:
Salaries and employee benefits		19,066		19,230		19,687		20,734			18,301
Equipment and occupancy expense		3,435		3,263		3,140		2,983			2,933
Third party processing and other services		7,284		8,170		7,213		6,345			5,605
Professional services		1,654		922		1,036		1,327			992
FDIC and other regulatory assessments		1,517		1,311		975		1,147			1,132
Other real estate owned expense		6		239		21		32			3
Other operating expense		6,702		4,957		10,613		7,253			8,252
Total non-interest expense		39,664		38,092		42,685		39,821			37,218
Income before income tax		70,761		84,123		77,069		76,546			71,090
Provision for income tax		12,790		16,399		13,038		14,410			13,477
Net income		57,971		67,724		64,031		62,136			57,613
Dividends on preferred stock		-		31		-		31			-
Net income available to common stockholders	$	57,971	$	67,693	$	64,031	$	62,105		$	57,613
Basic earnings per common share	$	1.07	$	1.25	$	1.18	$	1.14		$	1.06
Diluted earnings per common share	$	1.06	$	1.24	$	1.17	$	1.14		$	1.06

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
				1st Quarter 2023				4th Quarter 2022				3rd Quarter 2022				2nd Quarter 2022				1st Quarter 2022
				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		$	11,632,439	5.70	%	$	11,465,538	5.32	%	$	10,900,105	4.77	%	$	10,165,470	4.38	%	$	9,621,484	4.29	%
		Tax-exempt (2)			18,978	3.36			19,526	6.60			19,852	4.14			23,616	4.09			25,195	4.08
			Total loans, net of unearned income		11,651,417	5.70			11,485,064	5.32			10,919,957	4.77			10,189,086	4.38			9,646,679	4.29
	Mortgage loans held for sale				1,522	6.40			1,515	3.67			2,906	2.73			471	3.41			927	1.73
	Debt securities:
		Taxable			1,724,523	2.54			1,755,764	2.49			1,797,560	2.47			1,775,425	2.37			1,518,572	2.17
		Tax-exempt (2)			3,781	2.43			4,863	2.39			5,863	2.39			7,148	2.35			8,812	2.36
			Total securities (3)		1,728,304	2.54			1,760,627	2.49			1,803,423	2.47			1,782,573	2.37			1,527,384	2.17
	Federal funds sold				50,526	4.93			82,656	3.93			102,028	2.46			30,721	1.21			16,639	0.31
	Restricted equity securities				9,919	7.69			7,724	7.35			7,724	3.65			7,724	3.74			7,371	3.70
	Interest-bearing balances with banks				510,021	4.67			458,115	3.83			945,142	2.56			2,332,412	0.80			3,637,882	0.20
	Total interest-earning assets			$	13,951,709	5.27		$	13,795,701	4.90		$	13,781,180	4.30		$	14,342,987	3.54		$	14,836,882	3.06
Non-interest-earning assets:
	Cash and due from banks				106,448				113,823				256,607				204,994				74,534
	Net premises and equipment				60,617				60,323				60,155				60,673				61,209
	Allowance for credit losses, accrued interest and other assets				279,775				273,964				294,006				297,893				313,560
			Total assets	$	14,398,549			$	14,243,811			$	14,391,948			$	14,906,547			$	15,286,185
Interest-bearing liabilities:
	Interest-bearing deposits:
	Checking			$	1,675,355	1.25	%	$	1,763,622	0.73	%	$	1,722,926	0.28	%	$	1,699,602	0.21	%	$	1,594,645	0.20	%
	Savings				134,671	0.94			141,163	0.64			144,368	0.21			134,469	0.18			135,545	0.17
	Money market				5,756,642	3.17			5,047,133	2.07			4,444,583	0.89			4,617,021	0.33			4,985,224	0.26
	Time deposits				850,639	2.51			860,336	1.69			809,057	1.16			766,225	0.86			792,930	0.91
		Total interest-bearing deposits			8,417,307	2.68			7,812,254	1.70			7,120,934	0.76			7,217,317	0.36			7,508,344	0.31
	Federal funds purchased				1,389,217	4.67			1,453,445	3.75			1,493,444	2.27			1,550,805	0.79			1,620,012	0.23
	Other borrowings				114,726	4.61			64,726	4.23			65,406	4.19			64,713	4.28			64,708	4.28
	Total interest-bearing liabilities			$	9,921,250	2.98	%	$	9,330,425	2.04	%	$	8,679,784	1.05	%	$	8,832,835	0.46	%	$	9,193,064	0.33	%
Non-interest-bearing liabilities:
	Non-interest-bearing demand deposits				3,086,774				3,572,956				4,410,318				4,824,521				4,870,701
	Other liabilities				72,121				77,544				62,093				58,784				59,619
	Stockholders' equity				1,358,587				1,307,553				1,263,870				1,205,551				1,156,186
	Accumulated other comprehensive (loss) income				(40,183)				(44,667)				(24,117)				(15,144)				6,615
			Total liabilities and stockholders' equity	$	14,398,549			$	14,243,811			$	14,391,948			$	14,906,547			$	15,286,185
Net interest spread						2.29	%			2.86	%			3.25	%			3.08	%			2.77	%
Net interest margin						3.15	%			3.52	%			3.64	%			3.26	%			2.89	%
(1)	Average loans include nonaccrual loans in all periods. Loan fees of $3,263, $3,630, $3,849, $5,303, and $6,823 are included in interest income in the first quarter of 2023, fourth quarter of 2022, third quarter of 2022, second quarter of 2022, and first quarter of 2022, respectively.
(2)	Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%.
(3)	Unrealized (losses) gains on debt securities of $(59,738), $(62,568), $(34,688), $(25,703), and $8,245 for the first quarter of 2023, fourth quarter of 2022, third quarter of 2022, second quarter of 2022, and first quarter of 2022, respectively, are excluded from the yield calculation.

Contacts

ServisFirst Bank
Davis Mange (205) 949-3420
dmange@servisfirstbank.com

EX-99.2

Exhibit 99.2

 ServisFirst Bancshares, Inc.  NYSE: SFBS  April 2023 

 Forward-Looking Statements  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 and Section 27A of the Securities Act of 1933. 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. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.’s senior management and involve a number of 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: the global health and economic crisis precipitated by the COVID-19 outbreak; general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships, including in light of the continuing high rate of domestic inflation; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes in our loan portfolio and the deposit base; economic crisis and associated credit issues in industries most impacted by the COVID-19 outbreak; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic measures intended to curb rising inflation; 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; and increased competition from both banks and non-bank 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, in our Quarterly Reports on Form 10-Q for fiscal year 2022, 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 contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.   2 

     Deposits overview  3  Business Segment  New Accounts opened in 2023  Commercial  1724  Consumer  1097  Diversified deposit base  Top Commercial Sectors by NAICS Industry Sectors:  % of Total Deposits  Commercial Banking   4.72%  Offices of Lawyers  3.19%  Commercial and Institutional Building Construction   2.25%  Colleges, Universities, and Professional Schools   2.17%  Wholesale Trade Agents and Brokers   2.11%  Other Activities Related to Real Estate   2.03%  Other General Government Support   1.84%  Courts   1.77%  Lessors of Residential Buildings and Dwellings   1.67%  Trusts, Estates, and Agency Accounts   1.59%  Executive Offices   1.40%  Lessors of Nonresidential Buildings  1.32%  New Car Dealers   1.27%  Nonresidential Property Managers   1.27%  Engineering Services  1.22%  Trust, Fiduciary, and Custody Activities   1.14%  New Single-Family Housing Construction   1.00%  Religious Organizations   0.96%  Private Households  0.90%  Residential Property Managers   0.87%  Administrative & General Management Consulting Services   0.84%  Elementary and Secondary Schools   0.81%  Offices of Other Holding Companies   0.79%  Truck Trailer Manufacturing   0.79%  Offices of Physicians (except Mental Health Specialists)   0.77%  Nursing Care Facilities (Skilled Nursing Facilities)   0.70%  Insurance Agencies and Brokerages   0.69%  Plumbing, Heating, and Air-Conditioning Contractors   0.59%  Iron and Steel Mills and Ferroalloy Manufacturing   0.59%  Time frame  Deposit Balance  % of Deposits  Accounts opened prior to 2020   $8,809,667   78%            Business Segment  % of Total Deposits  Commercial   81%                     Consumer  19%                   

 Deposits Overview Continued  4  Deposit Flows by Month  Net deposit inflows (outflows)  January  February  March  Total  Total deposits  (162,851)  207,435  23,926  68,512  Correspondent Relationships  DDA  %  Term MM  %  Total  %  Non-settlement  52,986   25%  263,362   35%  833,373   37%  Settlement  159,657   75%  497,300   65%  1,406,236   63%  Total  212,643   760,662   2,239,609   Select Financial Ratios – ServisFirst Bank and Peer Banks  Source: S&P Global Market Intelligence  ServisFirst Bank  2022Y Actual  Avg Banks $10-50B  2022Y Actual  Efficiency Ratio  30.50  53.39  Net Interest Margin  3.41  3.23  Return on Avg Assets  1.73  1.10  Return on Avg Equity  20.00  11.12  YOY Earnings Growth  21.07  3.00  We have opened 2,821 new accounts during the 1st quarter of 2023, a 23% increase over 1st quarter 2022  Stable fundings from Correspondent banking relationships anchored by substantial settlement accounts  Total correspondent bank funding is    63% Settlement vs 37% Non-Settlement  Deposit pipeline has increased by $244 million since year-end, or 51%  Our business accounts are primarily from owner managed businesses  . 

 Liquidity  5  ($ in 000's)  Balance at   12/31/22  Balance at 3/31/23  AFS (unrealized losses Pre-tax)                    62,567   63,461   HTM (unrealized loss pre-tax)  98,175   84,028   Total securities unrealized loss pre-tax                  160,742   147,489   Net Unrealized loss on AFS after tax                   45,348   46,015   Net unrealized loss on HTM after tax  73,533   62,937   Net unrealized loss on securities after tax  118,881   108,952   Capital Analysis  CET1 Capital   1,326,035   1,428,872   net unrealized loss on securities after tax  118,881   108,952   CET1 Adjusted for U/R Gain/Loss  1,207,154   1,319,920   Liquidity Table  Bond Portfolio Unrealized Gain/Loss  Liquidity  12/31/2022   3/31/2023    ($ in 000's)  Capacity   Capacity   Cash  700,528   870,971   AFS Securities, net of pledged  642,428   608,491   Total on balance sheet liquidity   1,342,956   1,479,462   FHLB fundings availability    3,100,000  3,100,000   Correspondent lines of credit availability  265,000   265,000   Brokered deposit availability   3,600,000       3,600,000   Total Available Liquidity   8,307,956       8,444,462  

 Capital, Investments, & Liquidity  6  Well-Capitalized  ServisFirst has always been well-capitalized per regulatory standards. Our bank level Tier 1 leverage ratio increased year over year from 8.08% at 3/31/22 to 9.91% at 3/31/23, or 23%, while total capital increased $167 million.  As of March 31, 2023, our bank level Tier 1 Capital Leverage Ratio was 9.91% and when adjusted for AFS unrealized losses, net of tax, it would be 9.59%. When adjusted for both AFS and HTM unrealized losses, net of tax, the Tier 1 Capital Leverage Ratio would be 9.15%.  Credit ratings were affirmed on 3/31/2023 after annual review with Kroll Bond Rating Agency.  Conservative & Stable Investment Portfolio Management  Our investment portfolio is prudently managed, with a focus on short-term, high-quality, liquid securities.  Our portfolio is approximately 11% of our assets, it serves as collateral for public deposits and provides liquidity for our bank.  At March 31, 2023, our AFS securities totaled $625 million with a duration of 2.3 years and HTM securities totaled $938 million with a duration of 5.8 years.  Available Sources of Liquidity  Historically, our bank experiences minimal deposit growth during the first quarter. Year to date we have continued to fund our bank with core deposits and relationship banking.  We have no borrowings with the FHLB.  We have loans pledged to the FHLB providing approximately $1.4 billion in available funding.  We have additional unpledged CRE loans that would provide approximately $1.7 billion in additional funding through the FHLB for a total of $3.1 billion.  The bank also has $402.5 million in unpledged securities that can be pledged for liquidity.  We have no brokered deposits but our policy allows for brokered deposits of up to 25% of total assets.  

 Credit  Since the bank’s founding we have focused our calling efforts on owner operated C&I companies in the Southeast. Almost half of our loan portfolio is comprised of C&I and Owner Occupied Real Estate loans, which is among the highest in our industry.  The average remaining maturity of our commercial loan portfolio is 3.5 years.  Pristine Credit Quality  Charge-offs for the first quarter were only  $1.5MM or 5 basis points (bps) annualized.   Non Performing Loans to Total Loans were 15bps which is near our historical lows.  Past Dues to total loans were 17bps for the quarter.  Loan loss reserve was 1.28% of total loans at quarter-end, up from 1.25% at year end.   Commercial Real Estate  Office Exposure represents less than $388 million, or  3.3% of total loans with an average loan size of $1.5MM and typically in suburban settings. Our largest office exposure credit is a $21 million suburban medical office building with a strong sponsor.  Loans secured by multifamily properties total $1.36 billion or 11.7% of total loans. These projects are focused in the Sun Belt and the bank generally has 30% - 35% equity upfront.  Single family residential development represents $258 million in exposure, or 2.2% of total loans.   Lot and Land exposure represents $267 million in exposure, or 2.3% of total loans.   AD&C loans as a percent of capital decreased to 93% at 3/31 down from 100% at year-end.  7 

EX-99.3

Exhibit 99.3

Selected Financial Data (in thousands except number of employees)	3/31/2023	12/31/2022	3/31/20222	Commentary
Scheduled CD maturities for subsequent quarter	$156,886	$311,315	$196,528
Average rate scheduled CD maturities for subsequent quarter	2.38%	1.70%	0.65%
Loan rate (excludes fees), Qtr-End	5.66%	5.41%	4.34%
Cost of total deposits, Qtr-End	2.31%	1.66%	0.19%
Cost of interest-bearing DDAs, Qtr-End	3.12%	2.39%	0.24%
Cost of interest-bearing deposits, Qtr-End	3.08%	2.32%	0.32%
Noninterest bearing DDA balances, Qtr-End	$2,898,736	$3,321,347	$4,889,495
Reserve for unfunded commitments, Qtr-End	$                     575	$                  575	$1,600
Credit card spend QTD	$259,592	$262,684	$226,227
Credit card net income QTD	$1,689	$2,261	$2,372
Merchant services fees QTD	$                   455	$                  490	$                 336
Mortgage banking income QTD	$442	$ 514	$526
FDIC insurance QTD	$1,275	$ 1,075	$945
Write down tax credit investment QTD	$2,716	$ 2,499	$2,499	The write down of our tax credit investment increased non-interest expenses by $2.7 million during the 1st quarter 2023, but was offset by an income tax reduction of $3.9 million.
Salaries & employee benefits QTD	$19,066	$19,230	$18,301
Other operating expense	$6,702	$4,957	$8,252	Other operating expense increased $1.7 million on a linked-quarter basis. ACL for unfunded commitments in Q4 2022 was a credit of $1.4 million compared to no provision during Q1 2023.
Third party processing and other services QTD	$7,284	$8,170	$5,605	FRB service charges decreased $1.4 million quarter/quarter.
Equipment and occupancy expense QTD	$3,435	$3,263	$2,933
Business meals QTD	$532	$461	$                 429
Earnings retention YTD	74%	79%	78%
Number of employees	581	580	519
QTD tax rate	18.07%	19.49%	18.96%
YTD tax rate	18.07%	18.56%	18.96%

XML

Document and Entity Information	Apr. 17, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 17, 2023
Entity Registrant Name	ServisFirst Bancshares, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-36452
Entity Tax Identification Number	26-0734029
Entity Address, Address Line One	2500 Woodcrest Place
Entity Address, City or Town	Birmingham
Entity Address, State or Province	AL
Entity Address, Postal Zip Code	35209
City Area Code	205
Local Phone Number	949-0302
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001430723
Title of 12(b) Security	Common
Trading Symbol	SFBS
Security Exchange Name	NYSE