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) October 17, 2022

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 October 17, 2022, ServisFirst Bancshares, Inc., a Delaware corporation (“ServisFirst”), issued a press release announcing its operating results for the quarter ended September 30, 2022.  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 October 17, 2022, ServisFirst hosted a call to review 2022 third quarter earnings.  The supplemental financial data is attached as Exhibit 99.2 and is 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 October 17, 2022
99.2	Supplemental Financial Data dated October 17, 2022

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.
Dated:	October 17, 2022	By:	/s/ Thomas A. Broughton, III
			Thomas A. Broughton, III
			Chairman, President and Chief Executive Officer

EX-99.1

Exhibit 99.1

ServisFirst Bancshares, Inc. Announces Results For Third Quarter of 2022

BIRMINGHAM, Ala.--(BUSINESS WIRE)--October 17, 2022--ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended September 30, 2022.

Third Quarter 2022 Highlights:

• Diluted earnings per share were $1.17 for the third quarter of 2022, a 22% increase over the third quarter of 2021 and a 3% increase on a linked-quarter basis
• Preliminary settlement of litigation and write-down of a private investment resulting in charges of $2.4 million, net of income taxes, or $0.05 per diluted share
• Total loans grew $661.3 million during the third quarter of 2022, or 25% annualized
• Entered the Piedmont, North Carolina market and expanded our presence in Northwest Florida and Nashville.
• Book value per share increased 11% year-over-year
• Return on average common stockholders’ equity was 20.49% for the quarter
• Efficiency ratio was 31.54% for the quarter, including the charges above

Tom Broughton, Chairman, President and CEO, said, “We were pleased to add some exceptional bankers during the quarter who will help in the continued growth and expansion of our company.”

Bud Foshee, CFO, said, “Excess funds have returned to normal levels. Our net interest margins should remain relatively stable going forward.”

FINANCIAL SUMMARY (UNAUDITED)
(in Thousands except share and per share amounts)
	Period Ending September 30, 2022			Period Ending June 30, 2022			% Change From Period Ending June 30, 2022 to Period Ending September 30, 2022		Period Ending September 30, 2021			% Change From Period Ending September 30, 2021 to Period Ending September 30, 2022
QUARTERLY OPERATING RESULTS
Net Income	$	64,031		$	62,136		3	%	$	52,499		22	%
Net Income Available to Common Stockholders	$	64,031		$	62,105		3	%	$	52,499		22	%
Diluted Earnings Per Share	$	1.17		$	1.14		3	%	$	0.96		22	%
Return on Average Assets		1.77	%		1.67	%				1.50	%
Return on Average Common Stockholders' Equity		20.49	%		20.93	%				18.93	%
Average Diluted Shares Outstanding		54,546,682			54,532,385					54,477,740
YEAR-TO-DATE OPERATING RESULTS
Net Income	$	183,780							$	153,981		19	%
Net Income Available to Common Stockholders	$	183,749							$	153,950		19	%
Diluted Earnings Per Share	$	3.37							$	2.83		19	%
Return on Average Assets		1.64	%							1.63	%
Return on Average Common Stockholders' Equity		20.43	%							19.73	%
Average Diluted Shares Outstanding		54,533,793								54,440,004
BALANCE SHEET
Total Assets	$	13,890,030		$	14,494,317		(4)	%	$	14,602,228		(5)	%
Loans		11,278,614			10,617,320		6	%		8,812,811		28	%
Non-interest-bearing Demand Deposits		3,661,936			4,686,511		(22)	%		4,366,654		(16)	%
Total Deposits		11,051,915			11,772,337		(6)	%		12,078,670		(9)	%
Stockholders' Equity		1,242,589			1,211,918		3	%		1,114,293		12	%

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $64.0 million for the quarter ended September 30, 2022, compared to net income and net income available to common stockholders of $62.1 million for the second quarter of 2022 and $52.5 million for the third quarter of 2021. Basic and diluted earnings per common share were $1.18 and $1.17, respectively, for the third quarter of 2022, compared to $1.14 for both in the second quarter of 2022 and $0.97 and $0.96, respectively, for the third quarter of 2021.

Annualized return on average assets was 1.77% and annualized return on average common stockholders’ equity was 20.49% for the third quarter of 2022, compared to 1.50% and 18.93%, respectively, for the third quarter of 2021.

Net interest income was $126.4 million for the third quarter of 2022, compared to $116.4 million for the second quarter of 2022 and $96.3 million for the third quarter of 2021. The net interest margin in the third quarter of 2022 was 3.64% compared to 3.26% in the second quarter of 2022 and 2.85% in the third quarter of 2021. Loan yields were 4.77% during the third quarter of 2022 compared to 4.38% during the second quarter of 2022 and 4.39% during the third quarter of 2021. Fees on Paycheck Protection Program ("PPP") loans of $400,000 during the third quarter of 2022 contributed one basis point of the loan yield, compared to $2.8 million of PPP loan fee accretion during the second quarter of 2022, or 11 basis points of the loan yield, and $5.2 million during the third quarter of 2021, or 24 basis points of the loan yield. Investment yields were 2.47% during the third quarter of 2022 compared to 2.37% during the second quarter of 2022 and 2.70% during the third quarter of 2021. Amortization of mortgage-backed securities decreased by $203,000 from the second quarter to the third quarter of 2022.

Average loans for the third quarter of 2022 were $10.92 billion, an increase of $730.9 million, or 28.5% annualized, over average loans of $10.19 billion for the second quarter of 2022, and an increase of $2.24 billion, or 25.8%, over average loans of $8.68 billion for the third quarter of 2021.

Average total deposits for the third quarter of 2022 were $11.53 billion, a decrease of $510.6 million, or 16.8%, annualized, over average total deposits of $12.04 billion for the second quarter of 2022, and an increase of $41.9 million, or 0.4%, over average total deposits of $11.49 billion for the third quarter of 2021.

Non-performing assets to total assets were 0.13% for the third quarter of 2022, an increase of one basis point compared to 0.12% for the second quarter of 2022 and an increase of two basis points compared to 0.11% for the third quarter of 2021. Annualized net charge-offs to average loans were 0.11% for the third quarter of 2022, compared to 0.02% and 0.08% for the second quarter of 2022 and third quarter of 2021, respectively. The allowance for credit losses as a percentage of total loans at September 30, 2022, June 30, 2022 and September 30, 2021 was 1.25%, 1.21%, and 1.24%, respectively. We recorded a $15.6 million provision for credit losses in the third quarter of 2022 compared to $9.5 million in the second quarter of 2022 and $6.0 million in the third quarter of 2021. A less optimistic outlook for unemployment and GDP is driving the increase in provision for credit losses during the third quarter of 2022.

Non-interest income increased $913,000, or 11.4%, to $8.9 million for the third quarter of 2022 from $8.0 million in the third quarter of 2021. Service charges on deposit accounts increased $165,000, or 9.6%, to $1.9 million from the third quarter of 2021 to the third quarter of 2022. Mortgage banking revenue decreased $639,000, or 44.9%, to $784,000 from the third quarter of 2021 to the third quarter of 2022. Net credit card revenue increased $569,000, or 27.9%, to $2.6 million during the third quarter of 2022, compared to $2.0 million during the third quarter of 2021. The aggregate amount of spend on all credit card accounts increased 27.2% during the third quarter of 2022 compared to the third quarter of 2021. Cash surrender value life insurance decreased $34,000, or 2.0%, to $1.6 million during the third quarter of 2022, compared to $1.7 million during the third quarter of 2021. Other operating income for the third quarter of 2022 increased $852,000, or 73.3%, to $2.0 million from $1.2 million in the third quarter of 2021. We recognized $1.3 million of income related to our interest rate cap during the third quarter 2022 compared to write down of $98,000 during the third quarter of 2021. Merchant service revenue increased by $93,000, or 25%, to $468,000, or 25%, during the third quarter of 2022, from $375,000 during the third quarter of 2021.

Non-interest expense for the third quarter of 2022 increased $8.3 million, or 24.2%, to $42.7 million from $34.4 million in the third quarter of 2021, and increased $2.9 million, or 7.2%, on a linked quarter basis. Salary and benefit expense for the third quarter of 2022 increased $1.7 million, or 9.4%, to $19.7 million from $18.0 million in the third quarter of 2021, and decreased $1.0 million, or 5.0%, on a linked quarter basis. The number of FTE employees increased by 40 to 558 at September 30, 2022 compared to 518 at September 30, 2021, and increased by 18 from the end of the second quarter of 2022. Equipment and occupancy expense increased $144,000, or 4.8%, to $3.1 million in the third quarter of 2022, from $3.0 million in the third quarter of 2021, and increased $157,000, or 5.3% on a linked-quarter basis. Third party processing and other services expense increased $3.1 million, or 74.1%, to $7.2 million in the third quarter of 2022, from $4.1 million in the third quarter of 2021, and increased $868,000, or 13.7%, on a linked-quarter basis. This increase in third party processing also includes Federal Reserve Bank charges related to correspondent bank settlement activities, which increased by $3.0 million year-over-year to $3.7 million during the third quarter of 2022. Professional services expense increased $88,000, or 9.3%, to $1.0 million in the third quarter of 2022, from $948,000 in the third quarter of 2021. FDIC and other regulatory assessments decreased $655,000 to $975,000 in the third quarter of 2022, from $1.6 million in the third quarter of 2021, and decreased $172,000, or 15.0%, on a linked quarter basis. Other operating expenses for the third quarter of 2022 increased $4.1 million, or 62.3%, to $10.6 million from $6.5 million in the third quarter of 2021, and increased $3.4 million on a linked-quarter basis. During the third quarter of 2022 we reached a preliminary settlement on a lawsuit and wrote down the value of a private investment resulting in charges of $3.1 million, or $2.4 million net of income tax. The efficiency ratio was 31.54% during the third quarter of 2022 compared to 32.95% during the third quarter of 2021 and compared to 31.64% during the second quarter of 2022.

Income tax expense increased $1.5 million, or 13.3%, to $13.0 million in the third quarter of 2022, compared to $11.5 million in the third quarter of 2021. Our effective tax rate was 16.92% for the third quarter of 2022 compared to 17.98% for the third quarter of 2021. We recognized an aggregate of $3.4 million in credits during the third quarter of 2022 related to investments in tax credit partnerships. 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 third quarters of 2022 and 2021 of $370,000 and $78,000, respectively.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

This press release 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 and core deposit intangibles 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 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.

	At September 30, 2022			At June 30, 2022			At March 31, 2022			At December 31, 2021			At September 30, 2021
Book value per share - GAAP	$	22.87		$	22.32		$	21.61		$	21.24		$	20.56
Total common stockholders' equity - GAAP		1,242,589			1,211,949			1,172,975			1,152,015			1,114,293
Adjustments:
Adjusted for goodwill and core deposit intangible asset		(13,615)			(13,615)			(13,615)			(13,638)			(13,705)
Tangible common stockholders' equity - non-GAAP	$	1,228,974		$	1,198,334		$	1,159,360		$	1,138,377		$	1,100,588
Tangible book value per share - non-GAAP	$	22.62		$	22.07		$	21.36		$	20.99		$	20.30
Stockholders' equity to total assets - GAAP		8.95	%		8.36	%		7.65	%		7.46	%		7.63	%
Total assets - GAAP	$	13,890,030		$	14,494,348		$	15,339,419		$	15,448,806		$	14,602,228
Adjustments:
Adjusted for goodwill and core deposit intangible asset		(13,615)			(13,615)			(13,615)			(13,638)			(13,705)
Total tangible assets - non-GAAP	$	13,876,415		$	14,480,733		$	15,325,804		$	15,435,168		$	14,588,523
Tangible common equity to total tangible assets - non-GAAP		8.86	%		8.28	%		7.56	%		7.38	%		7.54	%

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 Alabama, Florida, Georgia, North and South Carolina, and Tennessee. We also operate loan production offices in Florida. 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 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; 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, including but not limited to, the restaurant, hospitality and retail sectors; 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 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.

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)
	3rd Quarter 2022			2nd Quarter 2022			1st Quarter 2022			4th Quarter 2021			3rd Quarter 2021
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	149,299		$	126,555		$	113,188		$	108,954		$	104,236
Interest expense		22,881			10,187			7,466			7,804			7,916
Net interest income		126,418			116,368			105,722			101,150			96,320
Provision for credit losses		15,603			9,507			5,362			8,451			5,963
Net interest income after provision for credit losses		110,815			106,861			100,360			92,699			90,357
Non-interest income		8,939			9,506			7,948			7,365			8,026
Non-interest expense		42,685			39,821			37,218			38,489			34,377
Income before income tax		77,069			76,546			71,090			61,575			64,006
Provision for income tax		13,038			14,410			13,477			7,822			11,507
Net income		64,031			62,136			57,613			53,753			52,499
Preferred stock dividends		-			31			-			31			-
Net income available to common stockholders	$	64,031		$	62,105		$	57,613		$	53,722		$	52,499
Earnings per share - basic	$	1.18		$	1.14		$	1.06		$	0.99		$	0.97
Earnings per share - diluted	$	1.17		$	1.14		$	1.06		$	0.99		$	0.96
Average diluted shares outstanding		54,546,682			54,532,385			54,522,042			54,493,959			54,477,740
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	13,890,030		$	14,494,317		$	15,339,419		$	15,448,806		$	14,602,228
Loans		11,278,614			10,617,320			9,898,957			9,532,934			8,812,811
Debt securities		1,714,603			1,790,218			1,617,977			1,305,527			984,600
Non-interest-bearing demand deposits		3,661,936			4,686,511			4,889,495			4,799,767			4,366,654
Total deposits		11,051,915			11,772,337			12,408,755			12,452,836			12,078,670
Borrowings		65,406			64,716			64,711			64,706			64,701
Stockholders' equity		1,242,589			1,211,918			1,172,975			1,152,015			1,114,293
Shares outstanding		54,324,007			54,306,875			54,282,132			54,227,060			54,207,147
Book value per share	$	22.87		$	22.32		$	21.61		$	21.24		$	20.56
Tangible book value per share (1)	$	22.62		$	22.07		$	21.36		$	20.99		$	20.30
SELECTED FINANCIAL RATIOS (Annualized)
Net interest margin		3.64	%		3.26	%		2.89	%		2.71	%		2.85	%
Return on average assets		1.77	%		1.67	%		1.53	%		1.40	%		1.50	%
Return on average common stockholders' equity		20.49	%		20.93	%		20.09	%		18.75	%		18.93	%
Efficiency ratio		31.54	%		31.64	%		32.74	%		35.47	%		32.95	%
Non-interest expense to average earning assets		1.23	%		1.11	%		1.02	%		1.03	%		1.01	%
CAPITAL RATIOS (2)
Common equity tier 1 capital to risk-weighted assets		9.37	%		9.59	%		9.86	%		9.95	%		10.46	%
Tier 1 capital to risk-weighted assets		9.37	%		9.59	%		9.87	%		9.96	%		10.47	%
Total capital to risk-weighted assets		10.91	%		11.12	%		11.43	%		11.58	%		12.18	%
Tier 1 capital to average assets		8.84	%		8.19	%		7.67	%		7.39	%		7.80	%
Tangible common equity to total tangible assets (1)		8.86	%		8.28	%		7.56	%		7.38	%		7.54	%
(1) See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for a discussion of these Non-GAAP financial measures.
(2) Regulatory capital ratios for most recent period are preliminary.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
	September 30, 2022			September 30, 2021			% Change
ASSETS
Cash and due from banks	$	249,051		$	102,313		143	%
Interest-bearing balances due from depository institutions		156,959			4,297,473		(96	)%
Federal funds sold		82,316			44,700		84	%
Cash and cash equivalents		488,326			4,444,486		(89	)%
Available for sale debt securities, at fair value		665,763			723,324		(8	)%
Held to maturity debt securities (fair value of $942,282 at September 30, 2022 and $261,276 at September 30, 2021)		1,048,840			261,276		301	%
Restricted equity securities		7,734			-		NM
Mortgage loans held for sale		2,003			578		247	%
Loans		11,278,614			8,812,811		28	%
Less allowance for credit losses		(140,967	)		(108,950	)	29	%
Loans, net		11,137,647			8,703,861		28	%
Premises and equipment, net		59,080			60,953		(3	)%
Goodwill and other identifiable intangible assets		13,615			13,705		(1	)%
Other assets		467,022			394,045		19	%
Total assets	$	13,890,030		$	14,602,228		(5	)%
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing	$	3,661,936		$	4,366,654		(16	)%
Interest-bearing		7,389,979			7,712,016		(4	)%
Total deposits		11,051,915			12,078,670		(9	)%
Federal funds purchased		1,466,322			1,286,756		14	%
Other borrowings		65,406			64,701		1	%
Other liabilities		63,798			57,808		10	%
Total liabilities		12,647,441			13,487,935		(6	)%
Stockholders' equity:
Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at
September 30, 2022 and September 30, 2021		-			-		-	%
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,324,007 shares
issued and outstanding at September 30, 2022, and 100,000,000 shares authorized; 54,207,147
shares issued and outstanding at September 30, 2021		54			54		-	%
Additional paid-in capital		228,738			225,648		1	%
Retained earnings		1,057,387			869,731		22	%
Accumulated other comprehensive (loss) income		(44,090	)		18,360		NM
Total stockholders' equity attributable to ServisFirst Bancshares, Inc.		1,242,089			1,113,793		12	%
Noncontrolling interest		500			500		-	%
Total stockholders' equity		1,242,589			1,114,293		12	%
Total liabilities and stockholders' equity	$	13,890,030		$	14,602,228		(5	)%

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Interest income:
Interest and fees on loans	$	131,375	$	96,119	$	345,767	$	285,373
Taxable securities		11,089		6,544		29,827		18,666
Nontaxable securities		30		62		110		255
Federal funds sold		632		4		738		11
Other interest and dividends		6,173		1,507		12,600		3,046
Total interest income		149,299		104,236		389,042		307,351
Interest expense:
Deposits		13,655		6,581		25,925		20,298
Borrowed funds		9,226		1,335		14,609		3,700
Total interest expense		22,881		7,916		40,534		23,998
Net interest income		126,418		96,320		348,508		283,353
Provision for credit losses		15,603		5,963		30,472		23,066
Net interest income after provision for credit losses		110,815		90,357		318,036		260,287
Non-interest income:
Service charges on deposit accounts		1,892		1,727		6,167		5,542
Mortgage banking		784		1,423		1,924		6,869
Credit card income		2,612		2,043		7,656		5,147
Securities (losses) gains		-		-		(6,168)		620
Increase in cash surrender value life insurance		1,637		1,671		4,878		5,012
Other operating income		2,014		1,162		11,936		2,897
Total non-interest income		8,939		8,026		26,393		26,087
Non-interest expense:
Salaries and employee benefits		19,687		17,995		58,722		50,425
Equipment and occupancy expense		3,140		2,996		9,056		8,494
Third party processing and other services		7,213		4,144		19,163		11,506
Professional services		1,036		948		3,355		2,978
FDIC and other regulatory assessments		975		1,630		3,254		4,637
Other real estate owned expense		21		123		56		820
Other operating expense		10,613		6,541		26,118		15,740
Total non-interest expense		42,685		34,377		119,724		94,600
Income before income tax		77,069		64,006		224,705		191,774
Provision for income tax		13,038		11,507		40,925		37,793
Net income		64,031		52,499		183,780		153,981
Dividends on preferred stock		-		-		31		31
Net income available to common stockholders	$	64,031	$	52,499	$	183,749	$	153,950
Basic earnings per common share	$	1.18	$	0.97	$	3.38	$	2.84
Diluted earnings per common share	$	1.17	$	0.96	$	3.37	$	2.83

LOANS BY TYPE (UNAUDITED)
(In thousands)
	3rd Quarter 2022		2nd Quarter 2022		1st Quarter 2022		4th Quarter 2021		3rd Quarter 2021
Commercial, financial and agricultural	$	3,104,155	$	2,966,040	$	2,955,927	$	2,984,053	$	2,927,845
Real estate - construction		1,433,698		1,383,155		1,164,690		1,103,076		887,938
Real estate - mortgage:
Owner-occupied commercial		2,145,621		2,026,807		1,919,811		1,874,103		1,809,840
1-4 family mortgage		1,089,826		1,015,698		926,697		826,765		765,102
Other mortgage		3,438,762		3,160,510		2,869,158		2,678,084		2,357,812
Subtotal: Real estate - mortgage		6,674,209		6,203,015		5,715,666		5,378,952		4,932,754
Consumer		66,552		65,110		62,674		66,853		64,274
Total loans	$	11,278,614	$	10,617,320	$	9,898,957	$	9,532,934	$	8,812,811

SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)
(Dollars in thousands)
	3rd Quarter 2022			2nd Quarter 2022			1st Quarter 2022			4th Quarter 2021			3rd Quarter 2021
Allowance for credit losses:
Beginning balance	$	128,387		$	119,463		$	116,660		$	108,950		$	104,670
Loans charged off:
Commercial financial and agricultural		2,902			1,667			2,574			1,285			1,541
Real estate - construction		-			-			-			14			-
Real estate - mortgage		170			23			27			-			208
Consumer		261			123			75			141			86
Total charge offs		3,333			1,813			2,676			1,440			1,835
Recoveries:
Commercial financial and agricultural		297			1,217			105			671			140
Real estate - construction		-			-			-			-			-
Real estate - mortgage		-			-			-			18			4
Consumer		12			13			12			10			8
Total recoveries		309			1,230			117			699			152
Net charge-offs		3,024			583			2,559			741			1,683
Provision for credit losses		15,604			9,507			5,362			8,451			5,963
Ending balance	$	140,967		$	128,387		$	119,463		$	116,660		$	108,950
Allowance for credit losses to total loans		1.25	%		1.21	%		1.21	%		1.22	%		1.24	%
Allowance for credit losses to total average
loans		1.32	%		1.26	%		1.24	%		1.29	%		1.26	%
Net charge-offs (recoveries) to total average loans		0.11	%		0.02	%		0.11	%		0.03	%		0.08	%
Provision for credit losses to total average
loans		0.58	%		0.37	%		0.23	%		0.37	%		0.27	%
Nonperforming assets:
Nonaccrual loans	$	11,655		$	10,540		$	14,738		$	6,762		$	9,145
Loans 90+ days past due and accruing		4,803			4,991			4,686			5,335			5,326
Other real estate owned and
repossessed assets		1,245			1,207			1,989			1,208			2,068
Total	$	17,703		$	16,738		$	21,413		$	13,305		$	16,539
Nonperforming loans to total loans		0.15	%		0.15	%		0.20	%		0.13	%		0.16	%
Nonperforming assets to total assets		0.13	%		0.12	%		0.14	%		0.09	%		0.11	%
Nonperforming assets to earning assets		0.13	%		0.12	%		0.14	%		0.09	%		0.11	%
Allowance for credit losses to nonaccrual loans		1,209.50	%		1,218.05	%		826.19	%		1,725.23	%		1,191.36	%
Restructured accruing loans	$	236		$	421		$	426		$	431		$	437
Restructured accruing loans to total loans		-	%		-	%		-	%		-	%		-	%
TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)
(In thousands)
	3rd Quarter 2022			2nd Quarter 2022			1st Quarter 2022			4th Quarter 2021			3rd Quarter 2021
Beginning balance:	$	2,403		$	2,482		$	2,576		$	2,893		$	2,918
Additions		-			-			-			-			-
Net (paydowns) / advances		(362	)		(79	)		(94	)		(303	)		(25	)
Charge-offs		-			-			-			(14	)		-
Ending balance	$	2,041		$	2,403		$	2,482		$	2,576		$	2,893

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except per share data)
	3rd Quarter 2022		2nd Quarter 2022		1st Quarter 2022		4th Quarter 2021		3rd Quarter 2021
Interest income:
Interest and fees on loans	$	131,375	$	111,287	$	103,105	$	100,348	$	96,119
Taxable securities		11,089		10,515		8,223		6,747		6,544
Nontaxable securities		30		37		43		47		62
Federal funds sold		632		93		13		18		4
Other interest and dividends		6,173		4,623		1,804		1,794		1,507
Total interest income		149,299		126,555		113,188		108,954		104,236
Interest expense:
Deposits		13,655		6,427		5,843		6,271		6,581
Borrowed funds		9,226		3,760		1,623		1,533		1,335
Total interest expense		22,881		10,187		7,466		7,804		7,916
Net interest income		126,418		116,368		105,722		101,150		96,320
Provision for credit losses		15,603		9,507		5,362		8,451		5,963
Net interest income after provision for credit losses		110,815		106,861		100,360		92,699		90,357
Non-interest income:
Service charges on deposit accounts		1,892		2,133		2,142		1,297		1,727
Mortgage banking		784		614		526		471		1,423
Credit card income		2,612		2,672		2,372		2,200		2,043
Securities losses		-		(2,833)		(3,335)		-		-
Increase in cash surrender value life insurance		1,637		1,633		1,608		1,630		1,671
Other operating income		2,014		5,287		4,635		1,767		1,162
Total non-interest income		8,939		9,506		7,948		7,365		8,026
Non-interest expense:
Salaries and employee benefits		19,687		20,734		18,301		17,303		17,995
Equipment and occupancy expense		3,140		2,983		2,933		2,910		2,996
Third party processing and other services		7,213		6,345		5,605		4,856		4,144
Professional services		1,036		1,327		992		913		948
FDIC and other regulatory assessments		975		1,147		1,132		1,042		1,630
Other real estate owned expense		21		32		3		48		123
Other operating expense		10,613		7,253		8,252		11,417		6,541
Total non-interest expense		42,685		39,821		37,218		38,489		34,377
Income before income tax		77,069		76,546		71,090		61,575		64,006
Provision for income tax		13,038		14,410		13,477		7,822		11,507
Net income		64,031		62,136		57,613		53,753		52,499
Dividends on preferred stock		-		31		-		31		-
Net income available to common stockholders	$	64,031	$	62,105	$	57,613	$	53,722	$	52,499
Basic earnings per common share	$	1.18	$	1.14	$	1.06	$	0.99	$	0.97
Diluted earnings per common share	$	1.17	$	1.14	$	1.06	$	0.99	$	0.96

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
ON A FULLY TAXABLE-EQUIVALENT BASIS
(Dollars in thousands)
	3rd Quarter 2022				2nd Quarter 2022				1st Quarter 2022				4th Quarter 2021				3rd Quarter 2021
	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	$	10,900,105	4.77	%	$	10,165,470	4.38	%	$	9,621,484	4.29	%	$	9,032,914	4.40	%	$	8,653,632	4.40	%
Tax-exempt (2)		19,852	4.14			23,616	4.09			25,195	4.08			26,148	4.07			26,542	4.05
Total loans, net of
unearned income		10,919,957	4.77			10,189,086	4.38			9,646,679	4.29			9,059,062	4.40			8,680,174	4.39
Mortgage loans held for sale		2,906	2.73			471	3.41			927	1.73			998	1.99			7,050	1.69
Debt securities:
Taxable		1,797,560	2.47			1,775,425	2.37			1,518,572	2.17			1,134,378	2.38			969,715	2.70
Tax-exempt (2)		5,863	2.39			7,148	2.35			8,812	2.36			9,823	2.36			12,382	2.39
Total securities (3)		1,803,423	2.47			1,782,573	2.37			1,527,384	2.17			1,144,201	2.38			982,097	2.70
Federal funds sold		102,028	2.46			30,721	1.21			16,639	0.31			39,445	0.18			8,551	0.19
Restricted equity securities		7,724	3.65			7,724	3.74			7,371	3.70			873	3.18			-	-
Interest-bearing balances with banks		945,142	2.56			2,332,412	0.80			3,637,882	0.20			4,561,662	0.16			3,761,652	0.16
Total interest-earning assets	$	13,781,180	4.30		$	14,342,987	3.54		$	14,836,882	3.06		$	14,806,241	2.92		$	13,439,524	3.08
Non-interest-earning assets:
Cash and due from banks		256,607				204,994				74,534				79,293				90,034
Net premises and equipment		60,155				60,673				61,209				61,837				62,845
Allowance for credit losses, accrued
interest and other assets		294,000				297,893				313,560				303,300				315,178
Total assets	$	14,391,942			$	14,906,547			$	15,286,185			$	15,250,671			$	13,907,581
Interest-bearing liabilities:
Interest-bearing deposits:
Checking	$	1,722,926	0.28	%	$	1,699,602	0.21	%	$	1,594,645	0.20	%	$	1,499,918	0.19	%	$	1,431,420	0.19	%
Savings		144,368	0.21			134,469	0.18			135,545	0.17			123,179	0.18			122,579	0.17
Money market		4,444,583	0.89			4,617,021	0.33			4,985,224	0.26			5,100,192	0.26			5,328,291	0.26
Time deposits		809,057	1.16			766,225	0.86			792,930	0.91			807,342	1.05			806,108	1.15
Total interest-bearing deposits		7,120,934	0.76			7,217,317	0.36			7,508,344	0.31			7,530,631	0.33			7,688,398	0.34
Federal funds purchased		1,493,444	2.27			1,550,805	0.79			1,620,012	0.23			1,608,349	0.21			1,205,327	0.21
Other borrowings		65,406	4.19			64,713	4.28			64,708	4.28			64,704	4.23			64,694	4.23
Total interest-bearing liabilities	$	8,679,784	1.05	%	$	8,832,835	0.46	%	$	9,193,064	0.33	%	$	9,203,684	0.34	%	$	8,958,419	0.35	%
Non-interest-bearing liabilities:
Non-interest-bearing
demand deposits		4,410,318				4,824,521				4,870,701				4,856,243				3,800,972
Other liabilities		62,087				58,784				59,619				54,134				48,060
Stockholders' equity		1,263,870				1,205,551				1,156,186				1,121,578				1,078,987
Accumulated other comprehensive
(loss) income		(24,117)				(15,144)				6,615				15,032				21,143
Total liabilities and
stockholders' equity	$	14,391,942			$	14,906,547			$	15,286,185			$	15,250,671			$	13,907,581
Net interest spread			3.25	%			3.08	%			2.77	%			2.58	%			2.73	%
Net interest margin			3.64	%			3.26	%			2.89	%			2.71	%			2.85	%

(1)	Average loans include nonaccrual loans in all periods. Loan fees of $3,849, $5,303, $6,823, $7,686, and $7,203 are included in interest income in the third quarter of 2022, the second quarter of 2022, first quarter of 2022, the fourth quarter of 2021, and the third quarter of 2021, 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 $(34,688), $(25,703), $8,245, $18,974, and $26,709 for the third quarter of 2022, second quarter of 2022, first quarter of 2022, fourth quarter of 2021, and third quarter of 2021, respectively, are excluded from the yield calculation.

Contacts

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

EX-99.2

Exhibit 99.2

Selected Financial Data (in thousands except number of employees)	9/30/2022			6/30/2022			9/30/2021			Commentary
Scheduled CD maturities for subsequent quarter	$	198,908		$	196,280		$	208,862
Average rate scheduled CD maturities for subsequent quarter		0.96	%		0.62	%		0.80	%
Cost of total deposits, Qtr-End		0.50	%		0.22	%		0.20	%
Cost of interest-bearing DDAs, Qtr-End		0.85	%		0.31	%		0.24	%
Cost of interest-bearing deposits, Qtr-End		0.75	%		0.37	%		0.32	%
Noninterest bearing DDA balances, Qtr-End	$	3,661,936		$	4,686,511		$	4,366,654
Reserve for unfunded commitments, Qtr-End	$	1,929		$	1,600		$	3,000
Credit card spend QTD	$	274,517		$	263,888		$	215,755
Credit card net income QTD	$	2,612		$	2,672		$	2,043
Merchant services fees QTD	$	468		$	471		$	375
Mortgage banking income QTD	$	784		$	614		$	1,423
FDIC insurance QTD	$	975		$	960		$	1,400
Write down tax credit investment QTD	$	2,499		$	2,499		$	2,931		The write down of our tax credit investment increased non-interest expenses by $2.5 million during the 3rd quarter 2022, but was offset by an income tax reduction of $3.35 million.
Salaries & employee benefits QTD	$	19,687		$	20,734		$	17,995		Excluding an additional $1.8 million accrual in our annual incentive program during the 2nd Qtr of 2022, salaries and benefits increased $750,000 from 6/30/2022 to 9/30/2022.
Other operating expense	$	10,613		$	7,253		$	6,541		Third quarter activity includes preliminary settlement of litigation and a write down of a private investment resulting in charges of $3.1 million.
Third party processing and other services QTD	$	7,123		$	6,345		$	4,144
Equipment and occupancy expense QTD	$	3,140		$	2,983		$	2,996
Business meals QTD	$	259		$	293		$	316
Earnings retention YTD		79	%		79	%		79	%
Number of employees		567			550			525
QTD tax rate		17.14	%		18.83	%		18.0	%
YTD  tax rate		18.28	%		18.89	%		19.7	%

XML

Document and Entity Information	Oct. 17, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 17, 2022
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