ServisFirst Bancshares, Inc.

Greetings and welcome to the Service First Bank Shares third quarter earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Davis Mage, Director of Investor Relations. Thank you, Davis. You may begin.

Good afternoon and welcome to our third quarter earnings call. Today's speakers will cover some highlights from the quarter and then take your questions. We'll have Tom Broughton, our CEO, Jim Harper, our chief credit officer, and David Sparacio, our CFO. I'll now cover our forward-looking statements disclosure. Some of the discussion in today's earnings call may include forward-looking statements. Actual results may differ from any projection shared today. due to factors described in our most recent 10-K and 10-Q filings. Forward-looking statements speak only as of the date they are made, and Service First assumes no duty to update them.

With that, I'll turn the call over to Tom. Thank you, Davis. Good afternoon, and thank you for joining our third quarter conference call. I'll give you a few highlights, followed by a credit update from Jim Harper, and followed by Davis Bracio with some financial updates. Talk about loan growth. It was below our expectation for the third quarter. We went back and reviewed loans booked and draws versus pay downs over the three quarters of 2025. And loan pay downs were up $500 million over the prior two quarters in the third quarter. So this contributed to the lack of these real significant loan growth. We did see a nice increase of over 10% in our loan pipeline in October compared to September. In comparing our loan pipeline to one year ago, the pipeline is 40% higher today. In addition, the projected payoffs today are 30% of the projected pipeline versus one year ago, there were 41% of the projected new loans. So we do see that there is a slight decline in the pipeline as a percent of the loan, payoffs as a percent of the loan pipeline. So the pipeline is not scientific, though we do stress to our bankers we want to be as accurate as possible. Every fourth quarter that I can remember, we've had solid loan growth. So my expectation will be that we'll have a good closing loan quarter. And I'll say that not all loan payoffs are bad because some of them that are low fixed rates pay off when the assets sell. So we've had several this quarter. So we're glad to see those payoffs. So on the deposit side, we did see some continued reduction in our high-cost municipal deposits in the third quarter. They were offset by some large corporate deposit inflows. But as David will discuss in a few minutes, we're trying to manage down our total deposit cost as the Federal Reserve reduces the Fed funds rate. On the new markets, we did hire seven new producers in the quarter, spread throughout our footprint. And we're also proud that all of our markets are now profitable. I don't think we've ever achieved this before since our first year in business, so we're very proud of that. I'm going to turn it over now to Jim Harper for a credit update.