EXHIBIT 99.1

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ServisFirst Bancshares, Inc. Announces Results For Fourth Quarter of 2021

BIRMINGHAM, Ala., Jan. 24, 2022 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter and year ended December 31, 2021.

Fourth Quarter 2021 Highlights:

Tom Broughton, Chairman, President and CEO, said, “Our strong business development initiatives continue to result in record loan growth and a strong loan pipeline.”

Bud Foshee, CFO, said, “Excellent credit quality and low levels of loan losses are evidence that we will be able to leverage our excess liquidity in a profitable manner. Operating efficiency will continue to be a focus in 2022.”

FINANCIAL SUMMARY (UNAUDITED)                   
(in Thousands except share and per share amounts)                
                      
    Period Ending
December 31, 2021
 Period Ending
September 30, 2021
 % Change From
Period Ending
September 30, 2021
to Period Ending
December 31, 2021
 Period Ending
December 31, 2020
 % Change From
Period Ending
December 31, 2020
to Period Ending December 31, 2021
 
QUARTERLY OPERATING RESULTS                   
Net Income $53,753  $52,499  2% $50,981  5% 
Net Income Available to Common Stockholders $53,722  $52,499  2% $50,949  5% 
Diluted Earnings Per Share $0.99  $0.96  3% $0.94  5% 
Return on Average Assets  1.40%  1.50%     1.74%    
Return on Average Common Stockholders' Equity  18.75%  18.93%     20.78%    
Average Diluted Shares Outstanding  54,493,959   54,477,740      54,273,944     
                      
Net income - adjusted for core system conversion                   
 expenses, net of tax* $56,004  $52,499  7% $50,981  10% 
Net Income Available to Common Stockholders -                   
 adjusted for core system conversion expenses,                   
 net of tax* $55,973  $52,499  7% $50,949  10% 
Diluted Earnings Per Share - adjusted for core                   
 system conversion expenses, net of tax* $1.03  $0.96  7% $0.94  10% 
Return on Average Assets - adjusted for core                   
 system conversion expenses, net of tax*  1.46%  1.50%     1.74%    
Return on Average Common Stockholders' Equity -                   
 adjusted for core system conversion expenses,                   
 net of tax*  19.54%  18.93%     20.78%    
                      
YEAR-TO-DATE OPERATING RESULTS                   
Net Income $207,734         $169,569  23% 
Net Income Available to Common Stockholders $207,672         $169,506  23% 
Diluted Earnings Per Share $3.82         $3.13  22% 
Return on Average Assets  1.53%         1.59%    
Return on Average Common Stockholders' Equity  19.26%         18.55%    
Average Diluted Shares Outstanding  54,434,573          54,219,037     
                      
Net income - adjusted for core system conversion                   
 expenses, net of tax* $209,985         $169,569  24% 
Net Income Available to Common Stockholders -                   
 adjusted for core system conversion expenses,                   
 net of tax* $209,923         $169,506  24% 
Diluted Earnings Per Share - adjusted for core system                   
 conversion expenses, net of tax* $3.86         $3.13  23% 
Return on Average Assets - adjusted for core                   
 system conversion expenses, net of tax*  1.55%         1.59%    
Return on Average Common Stockholders' Equity -                   
 adjusted for core system conversion expenses,                   
 net of tax*  19.47%         18.55%    
                      
BALANCE SHEET                   
Total Assets $15,448,806  $14,602,228  6% $11,932,654  29% 
Loans  9,532,934   8,812,811  8%  8,465,688  13% 
Non-interest-bearing Demand Deposits  4,799,767   4,366,654  10%  2,788,772  72% 
Total Deposits  12,452,836   12,078,670  3%  9,975,724  25% 
Stockholders' Equity  1,152,015   1,114,293  3%  992,852  16% 
                      
* The adjustment for the core system conversion expenses included in the comparative periods presented in this press release are more fully described in "Detailed Financials" and in "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below. 

DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income of $53.8 million and net income available to common stockholders of $53.7 million for the quarter ended December 31, 2021, compared to net income and net income available to common stockholders of $51.0 million and $50.9 million, respectively, for the same quarter in 2020. Basic and diluted earnings per common share were $0.99 for the fourth quarter of 2021, compared to $0.94 for the fourth quarter of 2020.

Annualized return on average assets was 1.40% and annualized return on average common stockholders’ equity was 18.75% for the fourth quarter of 2021, compared to 1.74% and 20.78%, respectively, for the fourth quarter of 2020.

Net interest income was $101.2 million for the fourth quarter of 2021, compared to $96.3 million for the third quarter of 2021 and $92.1 million for the fourth quarter of 2020. The net interest margin in the fourth quarter of 2021 was 2.71% compared to 2.85% in the third quarter of 2021 and 3.27% in the fourth quarter of 2020. Accretion of net fees on PPP loans of $5.1 million during the fourth quarter of 2021 contributed 22 basis points of the loan yield, compared to $5.2 million of PPP loan fee accretion during the third quarter of 2021, or 24 basis points of the loan yield and $7.5 million during the fourth quarter of 2020, or 35 basis points of the loan yield.

Average loans for the fourth quarter of 2021 were $9.06 billion, an increase of $378.9 million, or 17.3% annualized, over average loans of $8.68 billion for the third quarter of 2021, and an increase of $594.4 million, or 7.0%, over average loans of $8.46 billion for the fourth quarter of 2020. Forgiveness of PPP loans during the fourth quarter of 2021 totaled $157.8 million. PPP loans outstanding as of December 31, 2021 were $230.2 million.

Average total deposits for the fourth quarter of 2021 were $12.39 billion, an increase of $897.5 million, or 31.0%, annualized, over average total deposits of $11.49 billion for the third quarter of 2021, and an increase of $2.55 billion, or 25.9%, over average total deposits of $9.84 billion for the fourth quarter of 2020.

Non-performing assets to total assets were 0.09% for the fourth quarter of 2021, a decrease of two basis points compared to 0.11% for the third quarter of 2021 and a decrease of 12 basis points compared to 0.21% for the fourth quarter of 2020. Annualized net charge-offs to average loans were 0.03% for the fourth quarter of 2021, compared to 0.08% and 0.41% for the third quarter of 2021 and fourth quarter of 2020, respectively. The allowance for credit losses for each quarter-end period presented was calculated under the CECL methodology. The allowance for credit losses as a percentage of total loans at December 31, 2021, September 30, 2021 and December 30, 2020 was 1.22%, 1.24% and 1.04%, respectively. Excluding PPP loans, the allowance for credit losses as a percentage of total loans at December 31, 2021, September 30, 2021 and December 31, 2020 was 1.25%, 1.29%, and 1.16%, respectively. We recorded an $8.5 million provision for credit losses in the fourth quarter of 2021 compared to $6.0 million in the third quarter of 2021 and $6.3 million in the fourth quarter of 2020.

Non-interest income decreased $872,000, or 10.6%, to $7.4 million for the fourth quarter of 2021 from $8.2 million in the fourth quarter of 2020. Service charges on deposit accounts decreased $674,000, or 34.2%, to $1.3 million from the fourth quarter of 2020 to the fourth quarter of 2021. Mortgage banking revenue decreased $2.6 million, or 84.6%, to $471,000 from the fourth quarter of 2020 to the fourth quarter of 2021. We started retaining our mortgage loans in the second quarter of 2021 to increase earning assets and use excess liquidity. As of December 31, 2021, we had retained a total of 202 1-4 family mortgages for an aggregate balance of $76.9 million. Net credit card revenue increased $1.3 million, or 141.0%, to $2.2 million during the fourth quarter of 2021, compared to $913,000 during the fourth quarter of 2020. The number of credit card accounts increased approximately 6.4% and the aggregate amount of spend on all credit card accounts increased 36% during the fourth quarter of 2021 compared to the fourth quarter of 2020. Other operating income for the fourth quarter of 2021 increased $1.1 million, or 174.8%, to $1.8 million from $643,000 in the fourth quarter of 2020. We wrote up the value of our interest rate cap by $839,000 during the fourth quarter of 2021 through other income compared to a write down of $61,000 during the fourth quarter of 2020. Increased probabilities of Fed rate increases contributed to the recovery in the fair value of our interest rate cap during the fourth quarter of 2021. Merchant service revenue increased from $168,000 during the fourth quarter of 2020 to $376,000, or 124.1%, during the fourth quarter of 2021.

Non-interest expense for the fourth quarter of 2021 increased $10.3 million, or 36.5%, to $38.5 million from $28.2 million in the fourth quarter of 2020, and increased $4.1 million, or 12.0%, on a linked quarter basis. Salary and benefit expense for the fourth quarter of 2021 increased $2.3 million, or 15.6%, to $17.3 million from $15.0 million in the fourth quarter of 2020, and decreased $692,000, or 3.8%, on a linked quarter basis. Salary expense alone increased 6.2% year over year. We increased our annual incentive accrual based on the increased loan production in 2021 and on final anticipated payouts for 2021 PPP loan originations. Total incentive accruals increased $2.4 million to $4.4 million for the fourth quarter of 2021 compared the same quarter in 2020. The number of FTE employees increased by 9 to 502 at December 31, 2021 compared to 493 at December 31, 2020, and decreased by 16 from the end of the third quarter of 2021. Equipment and occupancy expense increased $230,000, or 8.6%, to $2.9 million in the fourth quarter of 2021, from $2.7 million in the fourth quarter of 2020, and decreased $86,000, or 2.9% on a linked-quarter basis. We moved our office in Nashville, Tennessee in early 2021 to expand our space and improve visibility and we opened our new office in Orlando, Florida in the third quarter of 2021. The linked-quarter decrease is primarily attributable to adjustments of accrued property taxes. Third party processing and other services expense increased $1.4 million, or 42.1%, to $4.9 million in the fourth quarter of 2021, from $3.4 million in the fourth quarter of 2020 and increased $712,000, or 17.2%, on a linked-quarter basis. We increased the number of correspondent banks for which we are processing transactions through the Federal Reserve Bank. Professional services expense decreased $335,000, or 26.8%, to $913,000 in the fourth quarter of 2021, from $1.2 million in the fourth quarter of 2020, primarily due to adjustments in accrued professional services fees during the fourth quarter of 2021. FDIC and other regulatory assessments decreased $324,000 to $1.0 million in the fourth quarter of 2021, from $1.4 million in the fourth quarter of 2020, and decreased $588,000, or 36.1%, on a linked quarter basis. ServisFirst Bank was reclassified as a large financial institution by the FDIC as of September 30, 2021. Other operating expenses for the fourth quarter of 2021 increased $7 million, or 160.7%, to $11.4 million from $4.4 million in the fourth quarter of 2020, and increased $4.9 million on a linked-quarter basis. This increase in other operating expenses includes a $3.0 million charge for expenses associated with the conversion to a new core operating system scheduled to take place in the third quarter of 2022. See “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below for more discussion of these expenses. We invested $24.5 million in a new market tax credit during the fourth quarter of 2021. We wrote down the investment by $3.1 million during the fourth quarter of 2021 as we recognize the tax credits. We decreased our reserve for credit losses on unfunded loan commitments by $1.7 million in the fourth quarter of 2021. The efficiency ratio was 35.47% during the fourth quarter of 2021 compared to 28.11% during the fourth quarter of 2020 and compared to 32.95% during the third quarter of 2021. The efficiency ratio was 32.70% when adjusted for the core system conversion costs discussed above.

Income tax expense decreased $7.0 million, or 47.3%, to $7.8 million in the fourth quarter of 2021, compared to $14.9 million in the fourth quarter of 2020. Our effective tax rate was 12.70% for the fourth quarter of 2021 compared to 22.56% for the fourth quarter of 2020. We recognized an aggregate of $7.4 million in credits during the fourth quarter of 2021 related to investments in new market tax credits. 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 fourth quarters of 2021 and 2020 of $363,000 and $170,000, respectively.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

During the fourth quarter of 2021, we recorded $3.0 million of expenses associated with our core operating system conversion scheduled to be completed during the third quarter of 2022. The expenses relate to negotiated liquidated damages of our existing system contracts and the procurement of our data from those providers. Financial measures included in this press release that are presented adjusted for these expenses are net income, net income available to common stockholders, diluted earnings per share, return on average assets, return on average common stockholders’ equity and efficiency ratio. Each of these six financial measures excludes the impact of this item, net of tax, and are all considered non-GAAP financial measures. 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 and core deposit intangibles associated with our acquisition of Metro Bancshares, Inc. in January 2015.  We also include total loans adjusted for the impact of PPP loan activities. 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 December 31, 2021 Year Ended
December 31, 2021
             
Net income - GAAP $53,753   $207,734               
 Adjustments:                     
 Core system conversion expenses  3,007    3,007               
  Tax on adjustment  (756)   (756)              
Adjusted net income - non-GAAP $56,004   $209,985               
                        
Net income available to common stockholders - GAAP $53,722   $207,672               
 Adjustments:                     
 Core system conversion expenses  3,007    3,007               
  Tax on adjustment  (756)   (756)              
Adjusted net income available to common stockholders -                     
 non-GAAP $55,973   $209,923               
                        
Diluted earnings per share - GAAP $0.99    3.82               
 Adjustments:                     
 Core system conversion expenses  0.05    0.05               
  Tax on adjustment  (0.01)   (0.01)              
Adjusted diluted earnings per share - non-GAAP $1.03   $3.86               
                       
Return on average assets - GAAP  1.40 %  1.53 %             
Net income - GAAP $53,753   $207,734               
 Adjustments:                     
 Core system conversion expenses  3,007    3,007               
  Tax on adjustment  (756)   (756)              
Adjusted net income - non-GAAP $56,004   $209,985               
Average assets - GAAP $15,250,671   $13,555,221               
Adjusted return on average assets - non-GAAP  1.46 %  1.55 %             
                        
Return on average common stockholders' equity - GAAP  18.75 %  19.26 %             
Net income available to common stockholders - GAAP $53,722   $207,672               
 Adjustments:                     
 Core system conversion expenses  3,007    3,007               
  Tax on adjustment  (756)   (756)              
Adjusted net income available to common stockholders -                     
 non-GAAP $55,973   $209,923               
Average common stockholders' equity - GAAP $1,136,610   $1,078,075               
Adjusted return on average common stockholders' equity -  19.54 %  19.47 %             
 non-GAAP                     
                        
Efficiency ratio  35.47 %                 
Non-interest expense - GAAP $38,489                   
 Adjustments:                     
 Core system conversion expenses  3,007                   
Adjusted non-interest expense  35,482                   
Net interest income plus non-interest income - GAAP $108,515                   
Adjusted efficiency ratio - non-GAAP  32.70 %                 
                        
    At December 31,
2021
 At September 30,
2021
 At June 30,
2021
 At March 31,
2021
 At December 31,
2020
 
Book value per share - GAAP $21.24   $20.56   $19.80   $19.03   $18.41   
Total common stockholders' equity - GAAP  1,152,015    1,114,293    1,073,284    1,030,485    992,852   
 Adjustments:                     
 Adjusted for goodwill and core deposit intangible asset  (13,638)   (13,705)   (13,773)   (13,841)   (13,908)  
Tangible common stockholders' equity - non-GAAP $1,138,377   $1,100,588   $1,059,511   $1,016,644   $978,944   
Tangible book value per share - non-GAAP $20.99   $20.30   $19.55   $18.78   $18.15   
                        
Stockholders' equity to total assets - GAAP  7.46 %  7.63 %  8.13 %  8.15 %  8.32 % 
Total assets - GAAP $15,448,806   $14,602,228   $13,207,319   $12,647,374   $11,932,654   
 Adjustments:                     
 Adjusted for goodwill and core deposit intangible asset  (13,638)   (13,705)   (13,773)   (13,841)   (13,908)  
Total tangible assets - non-GAAP $15,435,168   $14,588,523   $13,193,546   $12,633,533   $11,918,746   
Tangible common equity to total tangible assets - non-GAAP  7.38 %  7.54 %  8.03 %  8.05 %  8.21 % 
                        
Total loans - GAAP $9,532,934   $8,812,811   $8,649,694   $8,504,980   $8,465,688   
 Adjustments:                     
 Adjusted to exclude PPP loans  (230,184)   (387,725)   (595,017)   (967,641)   (900,493)  
Loans, excluding PPP loans - non-GAAP $9,302,750   $8,425,086   $8,054,677   $7,537,339   $7,565,195   

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, and Charleston, South 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 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 2021, 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.

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

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)                  
(In thousands except share and per share data)                     
  4th Quarter 2021 3rd Quarter 2021 2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020 
CONSOLIDATED STATEMENT OF INCOME                     
Interest income $108,954  $104,236  $102,719  $100,396  $101,065  
Interest expense  7,804   7,916   8,051   8,031   8,984  
Net interest income  101,150   96,320   94,668   92,365   92,081  
Provision for credit losses  8,451   5,963   9,652   7,451   6,283  
Net interest income after provision for credit losses  92,699   90,357   85,016   84,914   85,798  
Non-interest income  7,365   8,026   9,598   8,463   8,237  
Non-interest expense  38,489   34,377   31,309   28,914   28,202  
Income before income tax  61,575   64,006   63,305   64,463   65,833  
Provision for income tax  7,822   11,507   13,278   13,008   14,852  
Net income  53,753   52,499   50,027   51,455   50,981  
Preferred stock dividends  31   -   31   -   32  
Net income available to common stockholders $53,722  $52,499  $49,996  $51,455  $50,949  
Earnings per share - basic $0.99  $0.97  $0.92  $0.95  $0.94  
Earnings per share - diluted $0.99  $0.96  $0.92  $0.95  $0.94  
Average diluted shares outstanding  54,493,959   54,477,740   54,460,230   54,381,991   54,273,944  
                      
CONSOLIDATED BALANCE SHEET DATA                     
Total assets $15,448,806  $14,602,228  $13,207,319  $12,647,374  $11,932,654  
Loans  9,532,934   8,812,811   8,649,694   8,504,980   8,465,688  
Debt securities  1,305,527   984,600   1,013,783   962,129   886,938  
Non-interest-bearing demand deposits  4,799,767   4,366,654   3,296,429   3,044,611   2,788,772  
Total deposits  12,452,836   12,078,670   10,958,236   10,577,610   9,975,724  
Borrowings  64,706   64,701   64,696   64,691   64,748  
Stockholders' equity  1,152,015   1,114,293   1,073,284   1,030,485   992,852  
                      
Shares outstanding  54,227,060   54,207,147   54,201,204   54,137,650   53,943,751  
Book value per share $21.24  $20.56  $19.80  $19.03  $18.41  
Tangible book value per share (1) $20.99  $20.30  $19.55  $18.78  $18.15  
                      
SELECTED FINANCIAL RATIOS (Annualized)                     
Net interest margin  2.71%  2.85%  3.06%  3.20%  3.27% 
Return on average assets  1.40%  1.50%  1.56%  1.72%  1.74% 
Return on average common stockholders' equity  18.75%  18.93%  18.98%  19.83%  20.78% 
Efficiency ratio  35.47%  32.95%  30.03%  28.68%  28.11% 
Non-interest expense to average earning assets  1.03%  1.01%  1.01%  1.00%  1.00% 
                      
CAPITAL RATIOS (2)                     
Common equity tier 1 capital to risk-weighted assets  9.95%  10.46%  10.60%  10.73%  10.50% 
Tier 1 capital to risk-weighted assets  9.96%  10.47%  10.60%  10.73%  10.50% 
Total capital to risk-weighted assets  11.58%  12.18%  12.36%  12.48%  12.20% 
Tier 1 capital to average assets  7.39%  7.80%  8.10%  8.25%  8.23% 
Tangible common equity to total tangible assets (1)  7.38%  7.54%  8.03%  8.05%  8.22% 
                      
(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)          
    December 31, 2021 December 31, 2020 % Change 
ASSETS          
Cash and due from banks $56,934  $93,655  (39)% 
Interest-bearing balances due from depository institutions  4,106,790   2,115,985  94 % 
Federal funds sold  58,372   1,771  3,196 % 
 Cash and cash equivalents  4,222,096   2,211,411  91 % 
Available for sale debt securities, at fair value  842,570   886,688  (5)% 
Held to maturity debt securities (fair value of $466,286 at December 31, 2021 and $250 at December 31, 2020)  462,957   250  NM  
Restricted equity securities  7,311   -     
Mortgage loans held for sale  1,114   14,425  (92)% 
Loans  9,532,934   8,465,688  13 % 
Less allowance for credit losses  (116,660)  (87,942) 33 % 
 Loans, net  9,416,274   8,377,746  12 % 
Premises and equipment, net  60,300   54,969  10 % 
Goodwill and other identifiable intangible assets  13,638   13,908  (2)% 
Other assets  429,859   373,256  15 % 
 Total assets $15,448,806  $11,932,654  29 % 
LIABILITIES AND STOCKHOLDERS' EQUITY          
Liabilities:          
Deposits:          
 Non-interest-bearing $4,799,767  $2,788,772  72 % 
 Interest-bearing  7,653,069   7,186,952  6 % 
  Total deposits  12,452,836   9,975,724  25 % 
Federal funds purchased  1,711,777   851,545  101 % 
Other borrowings  64,706   64,748  - % 
Other liabilities  67,472   47,785  41 % 
 Total liabilities  14,296,791   10,939,802  31 % 
Stockholders' equity:          
 Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at          
  December 31, 2021 and December 31, 2020  -   -     
 Common stock, par value $0.001 per share; 100,000,000 shares authorized; 54,227,060 shares          
  issued and outstanding at December 31, 2021, and 53,943,751 shares issued and outstanding          
  at December 31, 2020  54   54  - % 
 Additional paid-in capital  226,397   223,856  1 % 
 Retained earnings  911,008   748,224  22 % 
 Accumulated other comprehensive income  14,056   20,218  (30)% 
  Total stockholders' equity attributable to ServisFirst Bancshares, Inc.  1,151,515   992,352  16 % 
 Noncontrolling interest  500   500  - % 
  Total stockholders' equity  1,152,015   992,852  16 % 
 Total liabilities and stockholders' equity $15,448,806  $11,932,654  29 % 


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)          
(In thousands except per share data)             
    Three Months Ended December 31, Year Ended December 31, 
    2021 2020 2021 2020 
Interest income:             
 Interest and fees on loans $100,348 $94,332 $385,721 $362,664 
 Taxable securities  6,747  6,018  25,413  22,122 
 Nontaxable securities  47  129  302  739 
 Federal funds sold  18  5  29  332 
 Other interest and dividends  1,794  581  4,840  3,165 
 Total interest income  108,954  101,065  416,305  389,022 
Interest expense:             
 Deposits  6,271  7,853  26,569  45,230 
 Borrowed funds  1,533  1,131  5,233  5,755 
 Total interest expense  7,804  8,984  31,802  50,985 
 Net interest income  101,150  92,081  384,503  338,037 
Provision for credit losses  8,451  6,283  31,517  42,434 
 Net interest income after provision for credit losses  92,699  85,798  352,986  295,603 
Non-interest income:             
 Service charges on deposit accounts  1,297  1,971  6,839  7,528 
 Mortgage banking  471  3,050  7,340  8,747 
 Credit card income  2,200  913  7,347  5,916 
 Securities gains  -  -  620  - 
 Increase in cash surrender value life insurance  1,630  1,660  6,642  6,310 
 Other operating income  1,767  643  4,664  1,615 
 Total non-interest income  7,365  8,237  33,452  30,116 
Non-interest expense:             
 Salaries and employee benefits  17,303  14,970  67,728  61,414 
 Equipment and occupancy expense  2,910  2,680  11,404  10,070 
 Third party processing and other services  4,856  3,418  16,362  13,778 
 Professional services  913  1,248  3,891  4,242 
 FDIC and other regulatory assessments  1,042  1,366  5,679  4,354 
 Other real estate owned expense  48  140  868  2,163 
 Other operating expense  11,417  4,380  27,157  15,490 
 Total non-interest expense  38,489  28,202  133,089  111,511 
 Income before income tax  61,575  65,833  253,349  214,208 
Provision for income tax  7,822  14,852  45,615  44,639 
 Net income  53,753  50,981  207,734  169,569 
 Dividends on preferred stock  31  32  62  63 
 Net income available to common stockholders $53,722 $50,949 $207,672 $169,506 
Basic earnings per common share $0.99 $0.94 $3.83 $3.15 
Diluted earnings per common share $0.99 $0.94 $3.82 $3.13 


LOANS BY TYPE (UNAUDITED)               
(In thousands)               
                 
   4th Quarter 2021 3rd Quarter 2021 2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020
Commercial, financial and agricultural $2,984,053 $2,927,845 $3,105,243 $3,323,093 $3,295,900
Real estate - construction  1,103,076  887,938  782,305  666,592  593,614
Real estate - mortgage:               
 Owner-occupied commercial  1,874,103  1,809,840  1,726,888  1,698,695  1,693,428
 1-4 family mortgage  826,765  765,102  707,546  685,840  711,692
 Other mortgage  2,678,084  2,357,812  2,262,231  2,068,560  2,106,184
Subtotal: Real estate - mortgage  5,378,952  4,932,754  4,696,665  4,453,095  4,511,304
Consumer  66,853  64,274  65,481  62,200  64,870
Total loans $9,532,934 $8,812,811 $8,649,694 $8,504,980 $8,465,688


SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)                
(Dollars in thousands)                 
     4th Quarter 2021 3rd Quarter 2021 2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020
Allowance for credit losses:                    
Beginning balance $108,950   $104,670   $94,906   $87,942   $92,440  
 Impact of Adoption of ASC 326  -    -    -    -    (2,000) 
Loans charged off:                    
 Commercial financial and agricultural  1,285    1,541    150    477    8,792  
 Real estate - construction  14    -    -    -    202  
 Real estate - mortgage  -    208    59    12    -  
 Consumer  141    86    54    87    38  
  Total charge offs  1,440    1,835    263    576    9,032  
Recoveries:                    
 Commercial financial and agricultural  671    140    298    26    94  
 Real estate - construction  -    -    2    50    30  
 Real estate - mortgage  18    4    62    2    114  
 Consumer  10    8    13    11    13  
  Total recoveries  699    152    375    89    251  
 Net charge-offs  741    1,683    (112)   487    8,781  
 Provision for credit losses  8,451    5,963    9,652    7,451    6,283  
 Ending balance $116,660   $108,950   $104,670   $94,906   $87,942  
                        
 Allowance for credit losses to total loans  1.22 %  1.24 %  1.21 %  1.12 %  1.04 %
 Allowance for credit losses to total average                    
  loans  1.29 %  1.26 %  1.21 %  1.11 %  1.04 %
 Net charge-offs (recoveries) to total average loans0.03 %  0.08 %  (0.01)%  0.02 %  0.41 %
 Provision for credit losses to total average                    
  loans  0.37 %  0.27 %  0.45 %  0.35 %  0.30 %
 Nonperforming assets:                    
  Nonaccrual loans $6,762   $9,145   $12,301   $13,088   $13,973  
  Loans 90+ days past due and accruing  5,335    5,326    4,888    4,804    4,981  
  Other real estate owned and                    
   repossessed assets  1,208    2,068    2,039    2,067    6,497  
 Total $13,305   $16,539   $19,228   $19,959   $25,451  
                      
 Nonperforming loans to total loans  0.13 %  0.16 %  0.20 %  0.21 %  0.22 %
 Nonperforming assets to total assets  0.09 %  0.11 %  0.15 %  0.16 %  0.21 %
 Nonperforming assets to earning assets  0.09 %  0.11 %  0.15 %  0.16 %  0.22 %
 Allowance for credit losses to nonaccrual loans1,725.23 %  1,191.36 %  850.91 %  725.14 %  629.37 %
                        
 Restructured accruing loans $431   $437   $441   $794   $818  
                      
 Restructured accruing loans to total loans  - %  - %  0.01 %  0.01 %  0.01 %
                    
 TROUBLED DEBT RESTRUCTURINGS (TDRs) (UNAUDITED)             
 (In thousands)                    
   4th Quarter 2021 3rd Quarter 2021 2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020
 Beginning balance: $2,893   $2,918   $3,542   $1,433   $2,738  
  Additions  -    -    -    2,146    -  
  Net (paydowns) / advances  (303)   (25)   (624)   (37)   (619) 
  Charge-offs  (14)   -    -    -    (535) 
  Transfer to OREO  -    -    -    -    (151) 
 Ending balance $2,576   $2,893   $2,918   $3,542   $1,433  


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)          
(In thousands except per share data)          
    4th Quarter 2021 3rd Quarter 2021 2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020 
Interest income:                
 Interest and fees on loans $100,348 $96,119 $95,451 $93,803 $94,332 
 Taxable securities  6,747  6,544  6,315  5,807  6,018 
 Nontaxable securities  47  62  86  107  129 
 Federal funds sold  18  4  4  3  5 
 Other interest and dividends  1,794  1,507  863  676  581 
 Total interest income  108,954  104,236  102,719  100,396  101,065 
Interest expense:                
 Deposits  6,271  6,581  6,836  6,881  7,853 
 Borrowed funds  1,533  1,335  1,215  1,150  1,131 
 Total interest expense  7,804  7,916  8,051  8,031  8,984 
 Net interest income  101,150  96,320  94,668  92,365  92,081 
Provision for credit losses  8,451  5,963  9,652  7,451  6,283 
 Net interest income after provision for credit losses  92,699  90,357  85,016  84,914  85,798 
Non-interest income:                
 Service charges on deposit accounts  1,297  1,727  1,907  1,908  1,971 
 Mortgage banking  471  1,423  2,699  2,747  3,050 
 Credit card income  2,200  2,043  1,912  1,192  913 
 Securities gains  -  -  620  -  - 
 Increase in cash surrender value life insurance  1,630  1,671  1,683  1,658  1,660 
 Other operating income  1,767  1,162  777  958  643 
 Total non-interest income  7,365  8,026  9,598  8,463  8,237 
Non-interest expense:                
 Salaries and employee benefits  17,303  17,995  16,887  15,543  14,970 
 Equipment and occupancy expense  2,910  2,996  2,844  2,654  2,680 
 Third party processing and other services  4,856  4,144  3,946  3,416  3,418 
 Professional services  913  948  1,107  923  1,248 
 FDIC and other regulatory assessments  1,042  1,630  1,425  1,582  1,366 
 Other real estate owned expense  48  123  540  157  140 
 Other operating expense  11,417  6,541  4,560  4,639  4,380 
 Total non-interest expense  38,489  34,377  31,309  28,914  28,202 
 Income before income tax  61,575  64,006  63,305  64,463  65,833 
Provision for income tax  7,822  11,507  13,278  13,008  14,852 
 Net income  53,753  52,499  50,027  51,455  50,981 
 Dividends on preferred stock  31  -  31  -  32 
 Net income available to common stockholders $53,722 $52,499 $49,996 $51,455 $50,949 
Basic earnings per common share $0.99 $0.97 $0.92 $0.95 $0.94 
Diluted earnings per common share $0.99 $0.96 $0.92 $0.95 $0.94 


AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) 
ON A FULLY TAXABLE-EQUIVALENT BASIS 
(Dollars in thousands) 
                                    
      4th Quarter 2021 3rd Quarter 2021 2nd Quarter 2021 1st Quarter 2021 4th Quarter 2020 
      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 $9,032,914 4.40% $8,653,632 4.40% $8,618,139 4.43% $8,484,914 4.47% $8,435,237 4.43% 
  Tax-exempt (2)  26,148 4.07   26,542 4.05   26,854 4.05   27,592 4.17   29,393 4.16  
   Total loans, net of                               
    unearned income  9,059,062 4.40   8,680,174 4.39   8,644,993 4.43   8,512,506 4.47   8,464,630 4.43  
 Mortgage loans held for sale  998 1.99   7,050 1.69   11,470 1.92   13,601 1.94   19,459 1.37  
 Debt securities:                               
  Taxable  1,134,378 2.38   969,715 2.70   936,863 2.70   878,118 2.65   862,333 2.79  
  Tax-exempt (2)  9,823 2.36   12,382 2.39   16,872 2.47   21,084 2.43   25,542 2.52  
   Total securities (3)  1,144,201 2.38   982,097 2.70   953,735 2.69   899,202 2.64   887,875 2.78  
 Federal funds sold  39,445 0.18   8,551 0.19   8,224 0.20   11,935 0.10   16,306 0.12  
 Restricted equity securities  873 3.18   - -   - -   - -   - -  
 Interest-bearing balances with banks  4,561,662 0.16   3,761,652 0.16   2,790,524 0.12   2,262,233 0.12   1,837,249 0.13  
 Total interest-earning assets $14,806,241 2.92  $13,439,524 3.08  $12,408,946 3.32  $11,699,477 3.48  $11,225,519 3.58  
Non-interest-earning assets:                               
 Cash and due from banks  79,293     90,034     85,478     71,166     91,258    
 Net premises and equipment  61,837     62,845     61,240     57,198     56,315    
 Allowance for credit losses, accrued                               
  interest and other assets  303,300     315,178     320,729     320,407     308,746    
   Total assets $15,250,671    $13,907,581    $12,876,393    $12,148,248    $11,681,838    
                                    
Interest-bearing liabilities:                               
 Interest-bearing deposits:                               
 Checking $1,499,918 0.19% $1,431,420 0.19% $1,350,098 0.19% $1,294,614 0.19% $1,197,908 0.23% 
 Savings  123,179 0.18   122,579 0.17   104,283 0.18   93,375 0.18   86,259 0.18  
 Money market  5,100,192 0.26   5,328,291 0.26   5,321,338 0.26   5,057,828 0.27   4,933,285 0.31  
 Time deposits  807,342 1.05   806,108 1.15   801,928 1.33   808,561 1.44   810,675 1.59  
  Total interest-bearing deposits  7,530,631 0.33   7,688,398 0.34   7,577,647 0.36   7,254,378 0.38   7,028,127 0.44  
 Federal funds purchased  1,608,349 0.21   1,205,327 0.21   970,708 0.22   849,772 0.22   752,765 0.22  
 Other borrowings  64,704 4.23   64,694 4.23   64,694 4.28   64,689 4.33   64,701 4.41  
 Total interest-bearing liabilities $9,203,684 0.34% $8,958,419 0.35% $8,613,049 0.37% $8,168,839 0.40% $7,845,593 0.46% 
Non-interest-bearing liabilities:                               
 Non-interest-bearing                               
  demand deposits  4,856,243     3,800,972     3,154,605     2,923,041     2,812,254    
 Other liabilities  54,134     48,060     52,027     39,442     48,642    
 Stockholders' equity  1,121,578     1,078,987     1,038,012     996,741     956,847    
 Accumulated other comprehensive                               
  income  15,032     21,143     18,700     20,185     18,502    
   Total liabilities and                               
    stockholders' equity $15,250,671    $13,907,581    $12,876,393    $12,148,248    $11,681,838    
Net interest spread    2.58%    2.73%    2.95%    3.08%    3.12% 
Net interest margin    2.71%    2.85%    3.06%    3.20%    3.27% 
                                    
(1)Average loans include loans on which the accrual of interest has been discontinued. 
(2)Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%. 
(3)Unrealized losses on available-for-sale debt securities are excluded from the yield calculation.