ServisFirst Bancshares, Inc.

with new loan yields of 6.81% and about an even split between variable and fixed rates. We ended the quarter with just slightly less than 49% of our loan book being variable rate-based. We continue to see core deposit growth, and our loan-to-deposit ratio stands at 89%, with our adjusted loan-to-deposit ratio, including correspondent Fed funds purchased, of 77%. As I mentioned, our Fed balances increased significantly during the quarter, about $380 million on average balances versus the fourth quarter, which certainly helps our liquidity but hurts our percentage margin calculation. Additionally, we grew our tangible book value by 3% since last quarter and 13% from the same quarter a year ago, ending at $30.31 per share. We continue to be well capitalized with a common equity Tier 1 capital ratio of 11.4% and risk-based capital ratio of 12.9% for the quarter. On net interest income, for the quarter, it was $123.5 million, which is $21 million higher than first quarter 2024 and just slightly higher than fourth quarter 2024. I will remind you that in first quarter of 2024, we had one extra day due to leap year, and fourth quarter 2024, we had two extra days when compared to first quarter 2025. We feel good about our dollar margin given the reduction in day count. The margin percentage was diluted this quarter by our higher than normal cash balances at the Fed. This excess cash diluted our margin by six basis points this quarter. Over the next 12 months, we will have $1.5 billion of projected cash flow from fixed rate loans at a rate of 4.76% and projected pay downs of mortgage-backed securities of $100 million at a rate of 2.5%. In addition, with tax and audited statements due soon, we anticipate loan repricing opportunities. In 2024, total repricing was $357 million. Year to date for 2025, total loans repriced are $60 million and $95 million are pending. Thus, we anticipate over $1.9 billion in asset repricing over the next 12 months. Our provision expense was down this quarter due to the release of the reserve previously marked for hurricane losses. We have not seen any hurricane loss materialize, so when we unwound that and updated our CECL model, The result was a provision expense of $6.6 million, which is up $2.1 million from first quarter 2024 and $900,000 from fourth quarter. The allowance for credit losses ended the quarter just over $165 million, which is an increase of about $576,000 from fourth quarter, primarily due to the growth in the loan balances. As Henry mentioned, our allowance ratio dropped from 1.30% of total loans in the fourth quarter to 1.28% in the first quarter of 2025. I will point out that we were at 1.28% in the second quarter of 2024 before the general hurricane reserve was established. So this is just a normalization of our allowance level. On non-interest income in first quarter of 2025, we were down about 7% versus first quarter 2024, but this decline was driven by a one-time bully death benefit recorded in 2024. From a normalized rate, we saw an increase of about 7% in non-interest income versus first quarter of 2024, primarily driven by higher service charges on deposit accounts. Versus fourth quarter 2024, non-interest income was down $526,000 due to a lower day count and seasonal declines in credit card and mortgage activity. We expect non-interest income to pick back up in second quarter of 2025. During the quarter, our non-interest expense was down $789,000 versus fourth quarter 2024 and flat versus first quarter 2024. This is a testament to our expense discipline as we have experienced growth of 5% in our number of employees since first quarter 2024. And first quarter always sees a seasonal spike in payroll taxes versus fourth quarter. Payroll expense was down about 5% versus fourth quarter due to the true up of 2024 incentive plan payouts. This incentive reduction was offset by a one-time operational loss we experienced in the first quarter. This resulted in an efficiency ratio below 35%, which we are very proud of. For the remainder of the year, we expect our non-interest expense to be in the $46 to $46.5 million range, obviously fluctuating based on our expansion efforts that Tom mentioned earlier. For the first quarter, our pre-tax net income was relatively flat compared to fourth quarter 2024, which we view as a win considering the fewer dates. Versus the same quarter last year, our pre-tax net income is up over $18 million, or 30%. We continue to focus on organic loan and deposit growth, priced both competitively and profitably. On our income tax provision, we saw an increase driven by less credits. Our 2024 effective tax rate, which was about 18%, increased in the first quarter to about 20%, which is the expected run rate for the remainder of 2025. Now, I will turn it back over to Tom for additional comments.

Thank you, David, and I'm sure you've all seen the 8K we filed a little bit ago after the market closed regarding Henry's career change, and I would like to thank Henry Abbott for all his contributions to our strong credit culture, and we wish him well in his next chapter of his business career. And I know Rodney wants to make a few comments as well about Henry.

Thanks, Tom, and And also, I'd like to thank you, Henry, for the hard work you and all your team put in and accomplished over the last few years. As you make this transition to your next business endeavor, I want to especially thank you for making the transition a smooth, seamless one. Agreeing to work over the next few weeks full-time and then in a consulting role with Jim has made this much easier for all of us. And thank you again and good luck. With your work ethic, I am sure you will be successful in whatever you do. With that, I'll turn it back to Tom.