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

Note 15 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

	Year Ended December 31,
	2025		2024			2023
	(In Thousands)
Current tax expense:
Federal	$	58,121	$	51,897		$	35,124
State		5,578		3,194			3,616
Total current tax expense		63,699		55,091			38,740
Deferred tax (benefit) expense:
Federal		1,082		(2,227	)		(1,057	)
State		746		(1,124	)		52
Total deferred tax (benefit)		1,828		(3,351	)		(1,005	)
Total income tax expense	$	65,527	$	51,740		$	37,735

	Year Ended December 31, 2025
	Amount			% of Pre-tax Earnings
	(In Thousands)
US federal statutory income tax		71,848			21.00	%
State and local income taxes, net of federal income tax effect(2)		5,023			1.47	%
Tax credits:
Energy tax credits		(4,500	)		(1.32	)%
Other credits		(4,592	)		(1.34	)%
Nontaxable or nondeductible items		(2,863	)		(0.84	)%
Change in unrecognized tax positions		176			0.05	%
Other		435			0.13	%
Effective income tax and rate(1)	$	65,527			19.15	%

	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(3)	$	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(3)	$	37,735			15.43	%

(3) 2024 and 2023 are pre-adoption of ASU 2023-09

	December 31,
	2025		2024
	(In Thousands)
Deferred tax assets:
Allowance for credit losses	$	43,236	$	41,431
Other real estate owned		-		255
Nonqualified equity awards		1,472		1,375
Nonaccrual interest		216		814
State tax credits carryforward		1,530		2,195
Deferred loan fees		4,523		4,074
Reserve for unfunded commitments		-		-
Accrued bonus		3,685		3,910
Capital loss carryforward		662		1,716
Lease liability		5,788		6,790
Deferred revenue		-		-
Net unrealized loss on securities available for sale		722		10,937
Other deferred tax assets		780		1,996
Total deferred tax assets		62,614		75,493

Deferred tax liabilities:
Depreciation		3,671		4,138
Prepaid expenses		921		781
Investments		1,178		950
Right-of-use assets and other leasing transactions		5,527		6,541
Other deferred tax liabilities		1,612		1,335
Total deferred tax liabilities		12,909		13,745
Net deferred tax assets	$	49,705	$	61,748

The Federal and State total of income taxes paid (net of refunds received):
	2025
Federal	$	27,521,000
State(4)		7,056,359
Total		34,577,359

5% threshold (4)		1,728,868

	2025			2024			2023
	(In Thousands)
Balance, beginning of year	$	1,913		$	2,092		$	-
Increases related to prior year tax positions		-			-			1,285
Decreases related to prior year tax positions		(1,401	)		(854	)		-
Increases related to current year tax positions		137			675			807
Balance, end of year	$	649		$	1,913		$	2,092