11 unchanged sentences
Performance Graph
−Removed: The following graph shows a comparison of the five-year cumulative total stockholder return for the Company, the KBW Nasdaq Regional Banking Index (“KRX”), and the Standard and Poor's 600 (“S&P 600”).
+Added: The following graph shows a comparison of the five-year cumulative total stockholder return for the Company, the KBW Nasdaq Regional Banking Index (“KRX”), the Standard and Poor's 600 (“S&P 600”), and the Standard and Poor’s 600 Financials (“S&P 600 Financials”).
The following performance graph does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other Company filing under the Securities Act or the Exchange Act, except to the extent the Company specifically incorporates the performance graph by reference therein.
−Removed: ServisFirst Bancshares, Inc.
MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
12 unchanged sentences
Our business is conducted through a single reportable segment.
−Removed: For additional information regarding our segment reporting, refer to (Note 23) - “ Segment Reporting ” in the Notes to the Consolidated Financial Statements.
−Removed: 2024 Highlights
−Removed: Diluted earnings per common share increased $0.37, or 9.8%, to $4.16 in 2024 from 2023.
−Removed: Average loans increased $548.0 million, or 4.7%, to $12.15 billion in 2024 from 2023.
−Removed: Average deposits increased $940.0 million, or 7.7%, to $13.20 billion in 2024 from 2023.
−Removed: Net interest income increased $35.7 million, or 8.7%, to $446.7 million in 2024 from 2023.
−Removed: Net interest margin increased one basis point to 2.82% in 2024 from 2023.
−Removed: Noninterest income increased $4.6 million, or 15.3%, to $35.1 million in 2024 from 2023, primarily due to increases in mortgage banking income and bank-owned life insurance income.
−Removed: Noninterest expense increased $3.1 million, or 1.7%, to $181.1 million in 2024 from 2023, primarily driven by increases in salaries and third-party processing expenses.
+Added: For additional information regarding our segment reporting, refer to (Note 22) - “ Segment Reporting ” Notes to the Consolidated Financial Statements.
Results of Operations
4 unchanged sentences
The increase in net income was primarily attributable to an increase in net interest income.
−Removed: Basic and diluted net income per common share was $4.17 and $4.16, respectively, for the year ended December 31, 2024, compared to $3.80 and $3.79, respectively, for the year ended December 31, 2023.
+Added: Basic and diluted net income per common share were both $5.06 for the year ended December 31, 2025, compared to $4.17 and $4.16, respectively, for the year ended December 31, 2024.
Return on average assets was 1.56% in 2025, compared to 1.39% in 2024, and return on average common stockholders’ equity was 16.05% in 2025, compared to 14.98% in 2024.
44 unchanged sentences
Net interest income increased 19.8% for the year ended December 31, 2025 from the year ended December 31, 2024.
−Removed: The increase in net interest income was mostly attributable to increases in both the average balance and rate on our interest earning assets.
−Removed: While interest-bearing liabilities average balance and rate both increased, the growth in our interest-earning assets outpaced those of our interest-bearing liabilities, which resulted in increased net interest income.
+Added: Net interest income increased primarily due to a larger decline in the average rate paid on interest-bearing liabilities than the decline in the average yield on interest-earning assets, resulting in a wider net interest spread.
Average earning assets increased 8.2% in 2025 from 2024, which was primarily driven by an increase of 7.9% in average loans.
34 unchanged sentences
Total debt securities (4)
−Removed: Federal funds sold
+Added: Federal funds sold and securities purchased with agreement to resell
Restricted equity securities
10 unchanged sentences
Total interest-bearing deposits
−Removed: Federal funds purchased
+Added: Federal funds purchased and securities purchased with agreement to resell
Other borrowings
14 unchanged sentences
Unrealized losses of $(26,700), $(60,030) and $(74,519) are excluded from the yield calculation in 2025, 2024, and 2023, respectively.
−Removed: Net interest margin is net interest income divided by average interest-earning assets.
+Added: Net interest margin is net interest income divided by total interest-earning assets.
The following table reflects changes in our net interest margin as a result of changes in the volume and rate of our interest-bearing assets and liabilities:
8 unchanged sentences
Total debt securities
−Removed: Federal funds sold
+Added: Federal funds sold and securities purchased with agreement to resell
Restricted equity securities
5 unchanged sentences
Total interest-bearing deposits
−Removed: Federal funds purchased
+Added: Federal funds purchased and securities purchased with agreement to resell
Other borrowed funds
6 unchanged sentences
The rate/volume variance is calculated as the change in rates multiplied by the change in average balances.
−Removed: From 2023 to 2024, our volume component was favorable as asset volumes increased primarily as a result of the growth in loan balances as well as an increase in taxable debt securities, while the volume change from our liabilities was primarily driven by growth in money market balances.
−Removed: The rate component was favorable as average rates paid on interest-bearing liabilities increased 39 basis points while yields on average earning assets increased 41 basis points.
+Added: From 2024 to 2025, both the volume and rate components were favorable, as average asset and liability balances increased while rates on both assets and liabilities declined, driven primarily by three reductions in the Federal Reserve’s target rate during 2025.
+Added: The rate component benefited from a greater decrease in the cost of funds, as interest-bearing liabilities repriced downward more quickly than earning asset yields.
+Added: As a result, our net interest margin expanded.
+Added: Average rates paid on interest-bearing liabilities decreased 69 basis points over this period, while yields on average earning assets decreased 19 basis points.
The two primary factors that make up the spread are the interest rates received on loans and the interest rates paid on deposits.
2 unchanged sentences
Our average interest-earning assets for the year ended December 31, 2025 increased $1.30 billion, or 8.2%, to $17.15 billion from $15.85 billion for the year ended December 31, 2024.
−Removed: Average loans grew $548.0 million, or 4.7%, average debt securities increased $76.7 million, or 4.1%, and average federal funds sold and interest-bearing balances with banks increased $599.2 million, or 53.5%.
+Added: Average loans grew $958.9 million, or 7.9%, average debt securities decreased $47.1 million, or 2.4%, and average federal funds sold, interest-bearing balances with banks, and securities purchased with agreement to resell increased $389.3 million, or 22.7%.
Our average interest-bearing liabilities increased $1.12 billion, or 9.3%, to $13.22 billion for the year ended December 31, 2025 from $12.10 billion for the year ended December 31, 2024.
−Removed: The ratio of our average interest-earning assets to average interest-bearing liabilities decreased from 135.6% for the year ended December 31, 2023 to 130.9% for the year ended December 31, 2024, as average noninterest-bearing deposits and stockholders’ equity decreased by a combined $107.8 million, or 2.52%, from 2023 to 2024.
+Added: The ratio of our average interest-earning assets to average interest-bearing liabilities decreased from 130.9% for the year ended December 31, 2024 to 129.7% for the year ended December 31, 2025, as average noninterest-bearing deposits and stockholders’ equity increased by a combined $227.3 million, or 5.45%, from 2024 to 2025.
Our average interest-earning assets produced a taxable equivalent yield of 5.78% for the year ended December 31, 2025, compared to 5.97% for the year ended December 31, 2024.
4 unchanged sentences
The provision expense for credit losses for the year ended December 31, 2025 increased compared to the year-ended December 31, 2024.
−Removed: The increase in provision expense is primarily the result of loan growth during 2024 compared to 2023.
+Added: The increase in provision expense was primarily the result of loan growth during 2025 compared to 2024.
Nonperforming loans increased to $168.8 million, or 1.23% of total loans, at December 31, 2025 from $42.5 million, or 0.34% of total loans, at December 31, 2024.
+Added: The year-over-year increase was attributable to a large, real-estate secured relationship.
During 2025, we had net charged-off loans totaling $28.1 million, compared to net charged-off loans of $10.4 million for 2024.
8 unchanged sentences
Credit card income
+Added: Securities losses
Bank-owned life insurance income
1 unchanged sentence
Total noninterest income
−Removed: Noninterest income increased $4.6 million, or 15.3%, to $35.1 million for the year ended December 31, 2024 compared to $30.4 million for the same period in 2023.
+Added: Noninterest income decreased $7.8 million, or 22.3%, to $27.2 million for the year ended December 31, 2025 compared to $35.1 million for the same period in 2024.
Service charges on deposit accounts increased $2.5 million, or 26.0%, to $11.9 million for the year ended December 31, 2025 compared to $9.4 million for the same period in 2024.
−Removed: Credit card income decreased $351,000, or 4.1%, to $8.3 million for the year ended December 31, 2024 compared to $8.6 million for the same period in 2023.
−Removed: Mortgage banking income increased $2.2 million, or 78.7%, to $4.9 million for the year ended December 31, 2024 compared to $2.8 million for the same period in 2023.
−Removed: Closed loans increased 49.9% during 2024 compared to 2023.
+Added: Credit card income remained flat at $8.3 million during 2025 compared to 2024.
+Added: Mortgage banking income increased $542,000, or 11.0%, to $5.5 million for the year ended December 31, 2025 compared to $4.9 million for the same period in 2024.
Bank-owned life insurance income increased $5.3 million, or 55.4%, to $14.8 million for the year ended December 31, 2025 compared to $9.5 million for the same period in 2024.
−Removed: The cash surrender value increased $1.6 million during 2024 compared to 2023.
−Removed: Other operating income decreased $150,000, or 4.9%, to $2.9 million for the year ended December 31, 2024 compared to $3.0 million for the same period in 2023.
+Added: The cash surrender value increased $1.0 million and we recognized $4.3 million of income attributed to a BOLI policy during 2025 compared to 2024.
+Added: Other operating income increased $218,000, or 7.6%, to $3.1 million for the year ended December 31, 2025 compared to $2.9 million for the same period in 2024.
Merchant service revenue increased $59,000, or 2.6%, to $2.3 million for the year ended December 31, 2025 compared to $2.3 million for the same period in 2024.
11 unchanged sentences
Noninterest expenses increased $3.8 million, or 2.1%, to $185.0 million for the year ended December 31, 2025 compared to $181.1 million for the same period in 2024.
−Removed: Increased salaries and employee benefits expenses were the primary drivers of the increase in noninterest expense.
−Removed: Salary and employee benefits expenses increased $15.4 million, or 19.0%, to $96.3 million for the year ended December 31, 2024 compared to $81.0 million for the same period in 2023.
−Removed: We had 630 full-time equivalent employees as of December 31, 2024 compared to 591 as of December 31, 2023 Equipment and occupancy expense increased $224,000, or 1.6%, to $14.5 million for the year ended December 31, 2024 compared to $14.3 million for the same period in 2023.
−Removed: Third party processing and other services increased $3.3 million, or 11.9%, to $31.2 million for the year ended December 31, 2024 compared to $27.9 million for the same period in 2023.
+Added: Salary and employee benefits expenses decreased $1.5 million, or 1.6%, to $94.8 million for the year ended December 31, 2025 compared to $96.3 million for the same period in 2024, mainly due to a $3 million credit adjustment to our annual Incentive Plan expense during the second quarter of 2025.
+Added: We had 666 full-time equivalent employees as of December 31, 2025 compared to 630 as of December 31, 2024.
+Added: Equipment and occupancy expense increased $78,000, or .5%, to $14.6 million for the year ended December 31, 2025 compared to $14.5 million for the same period in 2024.
+Added: Third party processing and other services increased $436,000, or 1.4%, to $31.6 million for the year ended December 31, 2025 compared to $31.2 million for the same period in 2024.
Professional services expense increased $274,000, or 4.0%, to $7.2 million for the year ended December 31, 2025 compared to $6.9 million for the same period in 2024.
−Removed: FDIC assessments decreased $4.9 million, or 31.6%, to $10.7 million for the year ended December 31, 2024 compared to $15.6 million for the same period in 2023.
−Removed: The FDIC implemented a special assessment to recapitalize the Deposit Insurance Fund resulting in an expense of $1.8 million during 2024, and $7.2 million during 2023.
−Removed: Other operating expenses decreased $12.0 million, or 36.0%, to $21.3 million for the year ended December 31, 2024 compared to $33.3 million for the same period in 2023.
+Added: FDIC assessments increased $303,000, or 2.8%, to $11.0 million for the year ended December 31, 2025 compared to $10.7 million for the same period in 2024.
+Added: The FDIC implemented a special assessment to recapitalize the Deposit Insurance Fund resulting in an additional $1.8 million during 2024.
+Added: Other operating expenses increased $4.3 million, or 20.1%, to $25.6 million for the year ended December 31, 2025 compared to $21.3 million for the same period in 2024.
+Added: The increase was mainly due to an operational loss and an increase in loan credit expenses.
We adopted the proportional amortization method of accounting for investments in certain tax credit partnerships during 2024.
5 unchanged sentences
Our effective tax rates for 2025 and 2024 were 19.15% and 18.61%, respectively.
−Removed: The increase in our effective tax rates reflect our adoption of the proportional amortization of accounting for investment tax credits during the first quarter of 2024.
+Added: The increase in our effective tax rates reflect the proportional amortization of accounting for investment tax credits.
We recognized $44.5 million in credits during 2025 and $15.4 million during 2024, related to new investments in Federal New Market Tax Credits.
−Removed: We also recognized excess tax benefits as an income tax credit to our income tax expense from the exercise and vesting of stock options and restricted stock during 2024 of $1.3 million, compared to $1.5 million during 2023.
+Added: We also recognized excess tax benefits as an income tax credit to our income tax expense from the exercise and vesting of stock options and restricted stock during 2025 of $798,000, compared to $1.3 million during 2024.
Our primary permanent differences are related to tax exempt income on debt securities, state income tax benefit on real estate investment trust dividends, various qualifying tax credits and change in cash surrender value of bank-owned life insurance.
6 unchanged sentences
Financial Condition
−Removed: Total assets as of December 31, 2024, were $17.35 billion, an increase of $1.22 billion, or 7.6%, from total assets of $16.13 billion as of December 31, 2023.
+Added: Total assets as of December 31, 2025, were $17.73 billion, an increase of $375.5 million, or 2.2%, from total assets of $17.35 billion as of December 31, 2024.
Average assets for the year ended December 31, 2025 were $17.75 billion, an increase of $1.41 billion, or 8.65%, over average assets of $16.33 billion for the year ended December 31, 2024.
Growth in loans and interest-bearing balances with banks were the primary reasons for the increase in ending and average total assets.
−Removed: Year-end 2024 total loans were $12.61 billion, an increase of $947.0 million, or 8.1%, over year-end 2023 total loans of $11.66 billion.
+Added: Year-end 2025 total loans were $13.70 billion, an increase of $1.09 billion, or 8.7%, over year-end 2024 total loans of $12.61 billion.
Earning assets include loans, securities, short-term investments and bank-owned life insurance contracts.
−Removed: We maintain a higher level of earning assets in our business model than do our peers because we allocate fewer of our resources to facilities, ATMs, and cash and due-from-bank accounts used for transaction processing.
+Added: We maintain a higher level of earning assets in our business model than our peers because we allocate fewer of our resources to brick and mortar facilities, ATMs, and cash and due-from-bank accounts used for transaction processing.
Earning assets as of December 31, 2025 were $16.91 billion, or 95.37% of total assets of $17.73 billion.
116 unchanged sentences
Allowance for loan losses
−Removed: Amount due after one year at
−Removed: fixed interest rates:
+Added: Amount due after one year at fixed interest rates:
Commercial, financial and agricultural
51 unchanged sentences
The allowance for credit losses (“ACL”) for December 31, 2025 and 2024 was calculated under the CECL methodology and totaled $171.7 million and $164.5 million, or 1.25% and 1.30% of loans, net of unearned income, respectively.
−Removed: The decrease in the ACL as a percentage of total loans from December 31, 2023, to December 31, 2024, was primarily driven by a more favorable economic outlook, including lower unemployment rates and projected gross domestic product (“GDP”) growth compared to 2023.
−Removed: Additionally, adjustments to qualitative factors within our CECL model were made to reflect these improved economic conditions.
+Added: The decrease in the ACL as a percentage of total loans from December 31, 2024, to December 31, 2025, was primarily driven by higher net credit charge-offs during 2025 and the release of a special reserve that had been included in the 2024 balance, as well as updates to loss drivers and qualitative factors within our CECL model.
Net credit charge-offs to average loans were 0.21% for the year ended December 31, 2025, compared to 0.09% and 0.10% for the years ended December 31, 2024 and 2023, respectively.
Nonaccrual loans increased to $168.4 million, or 1.23% of total loans, at December 31, 2025 from $39.5 million, or 0.31% of total loans, at December 31, 2024, and were $19.3 million, or 0.17% of total loans, at December 31, 2023.
−Removed: At December 31, 2024, the nonaccrual increase was driven by a commercial, financial and agricultural relationship and a owner-occupied commercial relationship.
+Added: The year-over-year nonaccrual increase from the year ended December 31, 2024 to the year ended December 31, 2025 was attributable to a large, real-estate secured relationship.
We maintain an ACL on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements.
The allowance is computed using a similar methodology to the one used to determine the ACL, modified to account for the probability of a drawdown on the commitment.
−Removed: The ACL on unfunded loan commitments is classified as a liability account on the balance sheet within other liabilities, while the corresponding provision for these credit losses is recorded as a component of other expense.
+Added: The ACL on unfunded loan commitments is classified as a liability account on the balance sheet within other liabilities, while the corresponding provision for these credit losses is recorded as a component of provision of credit loss.
The allowance for credit losses on unfunded commitments was $572,000 as of December 31, 2025 and $608,000 as of December 31, 2024.
11 unchanged sentences
The ACL is believed adequate to absorb all expected future losses to be recognized over the contractual life of the loans in the portfolio.
−Removed: At December 31, 2024, we forecasted a slightly lower national unemployment rate and moderately higher national GDP compared to December 31, 2023.
+Added: At December 31, 2025, we forecasted a moderately higher national GDP and national unemployment rate unchanged compared to December 31, 2024.
At December 31, 2024, we forecasted a slightly lower national unemployment rate and moderately higher national GDP compared to December 31, 2023.
41 unchanged sentences
Total nonperforming assets
−Removed: Restructured accruing loans:
−Removed: Commercial, financial and agricultural
−Removed: Real estate - construction
−Removed: Real estate - mortgage:
−Removed: Owner-occupied commercial
−Removed: 1-4 family mortgage
−Removed: Non-owner occupied commercial
−Removed: Total real estate - mortgage
−Removed: Total restructured accruing loans
−Removed: Total nonperforming assets and restructured accruing loans
Nonperforming loans to total loans
25 unchanged sentences
Time deposits
−Removed: Brokered time deposits
Total deposits
32 unchanged sentences
Standby letters of credit and financial guarantees
−Removed: Commitments to extend credit beyond current fundings are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
+Added: Commitments to extend credit beyond current fundings are agreements to lend to a customer if there is no violation of any condition established in the contract.
Such commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.
7 unchanged sentences
The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.
−Removed: The Company periodically enters into derivative contracts to manage exposures to movements in interest rates.
−Removed: The Company purchased an interest rate cap in May of 2020 to limit exposures to increases in interest rates.
−Removed: The interest rate cap was not designated as a hedging instrument but rather as a stand-alone derivative.
−Removed: The interest rate cap had an original term of three years, a notional amount of $300 million and was tied to the one-month LIBOR rate with a strike rate of 0.50%.
−Removed: The fair value of the interest rate cap was carried on the Consolidated Balance Sheets in other assets and the change in fair value was recognized in noninterest income each quarter.
−Removed: The interest rate cap contract expired May 4, 2023.
The Bank has entered into agreements with secondary market investors to deliver loans on a “best efforts delivery” basis.
41 unchanged sentences
The management of liquidity at both levels is critical because the Company and the Bank have different funding needs and sources, and each are subject to regulatory guidelines and requirements.
−Removed: We are subject to general FDIC guidelines which require a minimum level of liquidity.
+Added: We are subject to general FDIC guidelines that require a minimum level of liquidity.
Management believes our liquidity ratios meet or exceed these guidelines.
9 unchanged sentences
The Bank’s policy limits on brokered deposits would allow for up to $4.43 billion in available funding for brokered deposits.
−Removed: Additionally, we had available to us approximately $537 million in unused federal funds lines of credit with regional banks, subject to certain restrictions and collateral requirements, to meet short term funding needs.
+Added: Additionally, we had available to us approximately $472 million in federal funds lines of credit with regional banks, subject to certain restrictions and collateral requirements, to meet short term funding needs.
As a separate entity from the bank, we also have separate liquidity obligations.
26 unchanged sentences
We consider accounting estimates to be critical to reported financial results if (i) the accounting estimate requires management to make assumptions about matters that are highly uncertain and (ii) different estimates that management reasonably could have used for the accounting estimate in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, could have a material impact on our financial statements.
−Removed: The accounting estimate related the Company’s ACL is considered to be a critical accounting estimate because considerable judgment and estimation is applied by management.
+Added: The accounting estimate related to the Company’s ACL is considered to be a critical accounting estimate because considerable judgment and estimation is applied by management.
Allowance for Credit Losses
22 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.