ServisFirst Bancshares, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Note 16 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

	Year Ended December 31,
	2024			2023			2022
	(In Thousands)
Current tax expense:
Federal	$	51,897		$	35,124		$	56,318
State		3,194			3,616			3,621
Total current tax expense		55,091			38,740			59,939
Deferred tax (benefit) expense:
Federal		(2,227	)		(1,057	)		(4,110	)
State		(1,124	)		52			1,495
Total deferred tax (benefit)		(3,351	)		(1,005	)		(2,615	)
Total income tax expense	$	51,740		$	37,735		$	57,324

	Year Ended December 31, 2024
	Amount			% of Pre-tax Earnings
	(In Thousands)
Income tax at statutory federal rate	$	58,585			21.00	%
Effect on rate of:
State income tax, net of federal tax effect		1,787			0.64	%
Tax-exempt income, net of expenses		(14	)		(0.01	)%
Bank-owned life insurance contracts		(2,002	)		(0.72	)%
Excess tax benefit from stock compensation		(1,117	)		(0.40	)%
Federal tax credits, net of related amortization		(6,297	)		(2.26	)%
Other		798			0.36	%
Effective income tax and rate	$	51,740			18.61	%

	Year Ended December 31, 2023
	Amount			% of Pre-tax Earnings
	(In Thousands)
Income tax at statutory federal rate	$	51,363			21.00	%
Effect on rate of:
State income tax, net of federal tax effect		3,339			1.37	%
Tax-exempt income, net of expenses		(92	)		(0.04	)%
Bank-owned life insurance contracts		(1,591	)		(0.65	)%
Excess tax benefit from stock compensation		(1,242	)		(0.51	)%
Federal tax credits, net of related amortization		(16,002	)		(6.54	)%
Other		1,960			0.80	%
Effective income tax and rate	$	37,735			15.43	%

	Year Ended December 31, 2022
	Amount			% of Pre-tax Earnings
	(In Thousands)
Income tax at statutory federal rate	$	64,796			21.00	%
Effect on rate of:
State income tax, net of federal tax effect		7,247			2.35	%
Tax-exempt income, net of expenses		(188	)		(0.06	)%
Bank-owned life insurance contracts		(1,812	)		(0.59	)%
Excess tax benefit from stock compensation		(1,091	)		(0.35	)%
Federal tax credits, net of related amortization		(11,131	)		(3.61	)%
Other		(497	)		(0.16	)%
Effective income tax and rate	$	57,324			18.58	%

	December 31,
	2024		2023
	(In Thousands)
Deferred tax assets:
Allowance for credit losses	$	41,431	$	38,483
Other real estate owned		255		253
Nonqualified equity awards		1,375		1,354
Nonaccrual interest		814		327
State tax credits carryforward		2,195		2,011
Deferred loan fees		4,074		3,806
Reserve for unfunded commitments		-		144
Accrued bonus		3,910		3,052
Capital loss carryforward		1,716		1,648
Lease liability		6,790		6,886
Deferred revenue		-		8
Net unrealized loss on securities available for sale		10,937		18,129
Other deferred tax assets		1,996		2,323
Total deferred tax assets		75,493		78,424

Deferred tax liabilities:
Depreciation		4,138		4,289
Prepaid expenses		781		735
Investments		950		1,484
Right-of-use assets and other leasing transactions		6,541		6,639
Other deferred tax liabilities		1,335		2,359
Total deferred tax liabilities		13,745		15,506
Net deferred tax assets	$	61,748	$	62,918

	2024			2023		2022
	(In Thousands)
Balance, beginning of year	$	2,092		$	-	$	3,659
Increases related to prior year tax positions		-			1,285		-
Decreases related to prior year tax positions		(854	)		-		(2,860	)
Increases related to current year tax positions		675			807		-
Lapse of statute		-			-		(799	)
Balance, end of year	$	1,913		$	2,092	$	-