Slides
Page 1
Servis 1st Bank Servis First Bancshares Inc. NYSE : SFBS August 2026 EQUAL HOUSING LENDER Member FDIC Servis 1st Bask
Page 2
Forward-Looking Statements Statements in this presentation 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 presentation or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.’s senior management and involve 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: 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; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; 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. 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, and our other SEC filings. If one or more of the assumption forming the basis of 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. Non-GAAP Financial Measures - This presentation includes non-GAAP financial measures. Information about any such non-GAAP financial measures, including a reconciliation of those measures to GAAP, can be found in the presentation. 2
Page 3
$18.3B Total Assets ServisFirst By The Numbers Organic Growth Story • Single bank BHC founded in Birmingham, Alabama • Organic asset growth since the bank was founded in 2005(1): 23% CAGR High-Performing Metropolitan Commercial Bank • Total Assets (2): $18.3 billion • Stockholders’ Equity (2): $2.0 billion • ROAA (3): 1.91% • Efficiency Ratio (3): 29.65% Strong Balance Sheet and Income Growth • Gross Loans CAGR (4) : 13% • Total Deposits CAGR(4) : 13% • Net Income for Common CAGR (4) : 16% • Diluted EPS CAGR (4) : 16% $2.0B Stockholders’ Equity 16% Diluted EPS CAGR 23% Organic Asset CAGR Since 2005 29.65% Efficiency Ratio 1.91% ROAA 1. 20-year compounded annual growth rate (CAGR) calculated from 12/31/2005 – 12/31/2025; excludes the impact of ServisFirst’s one acquisition in 2015 – approximately $200 million 2. As of June 30th, 2026 3. For 3 months ended June 30th, 2026 4. 10-year compounded annual growth rate (CAGR) calculated from 12/31/2015 – 12/31/2025 3
Page 4
Simple Business Model with Focus on Core Banking Our Business Strategy Loans and deposits are primary drivers – Not ancillary services Limited branch footprint with technology-driven efficiency – Serving markets with precision Big bank products, community bank service – Best of both worlds for customers Adjusted deposit focus + C&I lending emphasis – Conservative, profitable lending Scalable, decentralized business model – Regional CEOs drive revenue and relationships Opportunistic expansion in attractive geographies – Teams of best bankers in each market Disciplined growth company – High standards for performance 4
Page 5
Key Principles • Identify great bankers in attractive markets • Focus on people, not just places • Target minimum $300M in assets within 3 years Market Strategies • Regional CEOs execute simple business model • Centralized risk management • Non-legal board of directors comprised of key business people Customer Focus • Professional banking services to mid-market commercial customers • Customers neglected by larger regional and national banks • Personalized service approach Future Expansion • Southern metropolitan markets focus • Industry contact network leverage • Selective growth strategy Opportunistic Expansion Model 5
Page 6
Milestones (Assets) 0 2 4 6 8 10 12 14 16 18 20 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Asset Milestone Total Asset (Billions) • Founded in May 2005 with initial capital raise of $35 million • Reached profitability during the fourth quarter of 2005 and have been profitable every quarter since 6
Page 7
ServisFirst Bank Milestones (Branches) 2005 - 2011 • Founded, Birmingham, AL • Huntsville, AL • Montgomery, AL • Dothan, AL • Correspondent Banking • Pensacola, FL 2012 - 2015 • Mobile, AL • Nashville, TN • Initial Public Offering • Charleston, SC • Atlanta, GA 2016 - 2020 • Tampa Bay, FL • Fairhope, AL • Fort Walton, FL • Sarasota, FL • Columbus, GA 2021 - 2022 • Venice, FL • Orlando, FL • Panama City, FL • Charlotte, NC • Tallahassee, FL • Asheville, NC 2023 - 2025 • Virginia Beach, VA • Lake Norman, NC • Tallahassee, FL - Mortgage • Memphis, TN • Auburn, AL • Houston, TX Two Decades of Strategic Growth Across the Southeast. 7
Page 8
Consistently Building Shareholder Value • Since the bank opened, Tangible Book Value has increased by a minimum of 10% every year (20-year CAGR (1) = 16%) • Stock Price has increased by more than 5,200%(3) since initial capital raise in 2005 (20-year CAGR(1) = 21%) • Dividend has increased each year since initial public offering in 2014 1.52 0.7 0.8 0.92 1.12 1.2 1.34 2020 2021 2022 2023 2024 2025 2026 0.76 2Q 18.15 20.99 23.64 26.20 29.38 33.62 35.94 2020 2021 2022 2023 2024 2025 6/30/2026 1. 20 – year CAGR = 12/31/2005 – 12/31/2025 2. 5 – year CAGR = 12/31/2020 – 12/31/2025 3. Split adjusted (6-for-1) stock price for 2005 initial capital raise was 1.67 per share. Closing stock price on 6/30/2026 was 86. 75 8 Tangible Book Value Per Share Annual Dividend Per Share
Page 9
Strategic Geographical Footprint 9 35 Banking Locations, Across 8 States
Page 10
Our Regions 1. Represents metropolitan statistical areas (MSAs)) 2. As of June 30, 2026 3. As reported by the FDIC as of 6/30/2025 4. Includes Tallahassee Mortgage LPO and Tallahassee Full-Service Office 10 Region (1) Total Offices (2) Total MSA Deposits (3) ($ in billions) (%) Alabama Birmingham-Hoover 3 52.9 8.6 Auburn-Opelika 1 4.5 0.2 Dothan 2 4.3 21.3 Huntsville 2 12.2 10.4 Mobile 2 10.1 6.5 Daphne-Fairhope-Foley 1 6.7 1.8 Montgomery 2 9.5 14.7 Florida Crestview-Fort Walton Beach-Destin 1 5.1 2 North Port-Sarasota-Bradenton 2 30.1 3 Orlando-Kissimmee-Sanford 1 70.1 0.1 Panama City 1 4.8 1 Pensacola-Ferry Pass-Brent 2 8.2 7.9 Tallahassee (4) 2 8.8 1.3 Tampa-St. Petersburg-Clearwater 1 128.1 0.4 Georgia Atlanta-Sandy Springs-Roswell 2 246 0.4 Columbus 1 9.9 0.3 North Carolina Charlotte-Concord-Gastonia 2 477.3 0.02 Asheville 1 10.6 0.4 South Carolina Charleston-North Charleston 2 23.1 1.6 Tennessee Nashville-Davidson-Murfreesboro- Franklin 1 98.3 0.8 Memphis, TN-MS-AR 1 42 0.3 Virginia Beach Virginia Beach-Norfolk-Newport News 1 30 0.3 Texas Houston 1 264.8 N/A Total 35 1557.4
Page 11
Our Business Model Loan Making and Deposit Taking • Traditional commercial banking services • No focus on non-traditional business lines Culture of Cost Control • “Branch light” model, with an average of $441 million in deposits per banking center • Utilize technology and centralized infrastructure • Staff concentrated on production and risk management • Key products include remote deposit capture (about two-thirds of checks are deposited via remote and mobile deposit), cash management, and remote currency management • Certain functions are outsourced C&I and Owner-Occupied CRE Lending Expertise • Comprises 42% of gross loans • Target customers: privately held businesses with $2 to $250 million in annual sales, professionals, and affluent consumers 11
Page 12
Scalable, Decentralized Structure Local decision-making • Emphasize local decision-making to drive customer revenue • Centralized, uniform risk management and support • Conservative local lending authorities, covers most lending decisions • Geographic organizational structure (as opposed to line of business structure) Regional CEOs empowered and held accountable • Utilize stock-based compensation to align goals Top-down sales culture • Senior management actively involved in customer acquisition 12
Page 13
Capacity For Growth Potential for significant growth in both loan and deposit book size of current calling officers • Approximately 29% of calling officers manage loan and/or deposit books exceeding $75 million • Average outstanding loan balances per officer as of 6/30/2026 was $75 million and average deposit balances per officer was $68 million • Strive for a minimum of $75 million in outstanding loans and deposits for every calling officer, resulting in approximately $4.7 billion in potential additional loan balances and $5.8 billion in potential additional deposits balances Focused on identifying motivated, customer service-oriented bankers • Regularly meet with potential new bankers • Sustainable growth achieved through exceptional customer service which builds client loyalty and leads to customer referrals 13
Page 14
Risk Management & Credit Process • Lending focuses on middle market clients with Regional CEO and credit officers having delegated lending authority and larger relationships are approved by CCO and/or members of executive management • Centralized monitoring of ABL relationships greater than $2MM and centralized monitoring of commercial construction projects greater than $3MM • Independent loan review examines approximately 35% of the committed balances annually to affirm risk rating accuracy and proper documentation • The top three industry exposures as of 6/30/26 are: – Real Estate (36%), Service Industry (12%) and Health Care (8%). • The top three C&I and C&I OOCRE portfolio industries are: Retail (16%), Manufacturing (10%), and Real Estate (9%). C&I and C&I OOCRE loans account for 40% of the total loan portfolio • The Bank does not lead any Shared National Credits (SNCs); the Bank does participate in 14 relationships that are classified as SNCs with current balances of $152MM as of 6/30/26 • As of 6/30/26, CRE as a percent of capital was 307% and AD&C as a percent of capital was 72% • Approximately 91% of the Bank’s CRE loans are located in Bank’s eight state footprint 14
Page 15
Correspondent Banking Footprint Date # of Relationships Deposits (Non Interest Bearing) Deposits (Interest Bearing) Fed Funds Purchased Total Balance ($000s) 6/30/2026 396 $387,041 $579,472 $1,579,238 $2,545,752 3/31/2026 392 $375,720 $670,307 $1,546,837 $2,592,864 12/31/2025 388 $336,636 $751,689 $1,371,628 $2,459,953 9/30/2025 388 $314,718 $617,363 $1,470,100 $2,402,181 6/30/2025 385 $320,344 $577,960 $1,599,135 $2,497,439 3/31/2025 378 $285,662 $511,565 $2,358,326 $3,155,554 12/31/2024 378 $278,532 $523,966 $1,913,728 $2,716,226 1515
Page 16
Thomas A. Broughton Chairman, President and CEO Previously President/CEO of First Commercial Bank; American Banker's 2009 Community Banker of the Year David A. Sparacio EVP and Chief Financial Officer Previously EVP, Corporate Controller for Ameris Bank Rodney E. Rushing EVP and Chief Operating Officer Previously EVP of Correspondent Banking at BBVA-Compass Jim H. Harper SVP and Chief Credit Officer Previously EVP and Senior Credit Risk Officer for Cadence Bank Our Management Team J. Harold Clemmer EVP Chief Banking Officer Previously EVP and Regional CEO Atlanta and Virgina Beach Bart E. McBride EVP Sales Manager Previously EVP Commercial Banking at ServisFirst Bank B. Harrison Morris Regional President & CEO South Alabama Previously Market President of Wachovia’s operation in Dothan 16
Page 17
Our Regional Management Team Jim O. Holtcamp EVP and Regional CEO Huntsville Previously EVP Commercial Banking at ServisFirst Bank Huntsville G. Carlton Barker EVP and Regional CEO Montgomery Previously Group President for Regions Bank Southeast Alabama Bank Group. B. Harrison Morris Regional President & CEO of South Alabama Previously Market President of Wachovia’s operation in Dothan. Rex D. McKinney EVP and Regional CEO Northwest Florida Previously EVP/Senior Commercial Lender for First American Bank/Coastal Bank and Trust (Synovus) EVP and Regional CEO Mobile Previously CEO of BankTrust for over 20 years. Bradford A. Vieira EVP and Regional CEO Tennessee Previously SVP and Commercial Banking Manager at ServisFirst Bank. Thomas G. Trouche EVP and Regional CEO Charleston Previously Executive Vice President Coastal Division for First Citizens Bank. J. Harold Clemmer EVP Chief Banking Officer Previously EVP and Regional CEO Atlanta and Virgina Beach at ServisFirst Bank Gregory W. Bryant EVP and Regional CEO West Central Florida Previously President and CEO of Bay Cities Bank in Tampa Bay. Rick A. Manley EVP and Regional CEO North Carolina Previously Mid Atlantic President for First Horizon Bank. Christopher J. Dvorachek EVP and Regional CEO Texas Previously EVP/Managing Director of Commercial Banking for Woodforest National Bank 17 W. Bibb Lamar
Page 18
Financial Results
Page 19
▪ Rare combination of balance sheet growth and earnings power ▪ EPS growth includes impact of $55.1 million of common stock issued in five private placements as we entered new markets prior to our initial public offering (IPO) and $56.9 million from the IPO 19 1) 10 – year CAGR = 12/31/2015 – 12/31/2025 63 81 93 137 149 170 208 252 207 227 277 169 Net Income Available to Common Stockholders ($millions) 1.2 1.72 1.72 2.53 2.76 3.13 3.82 4.61 3.79 4.16 5.06 3.09 Diluted Earnings Per Common Share Income Growth 10-year (1) CAGR = 16%10-year (1) CAGR = 16% 19
Page 20
▪ Primary focus on building core deposits, highlighted by non-interest-bearing accounts and non-reliance on CDs ▪ C&I lending expertise within a well-balanced loan portfolio Deposit Mix (1) 2.80% Cost of Interest-Bearing Deposits (2) Loan Portfolio (1) 6.23% Yield on Loans (2) 1) For period ending June 30, 2026 2) Average for the three months ended June 30, 2026 Non-interest bearing 21% CDs 9% NOW, Money market, and savings 70% Commercial & industrial 22% Real estate - construction 11% CRE owner occupied 19% Consumer mortgage 12% CRE non-owner occupied 35% Consumer 1% Balance Sheet Makeup 20 20
Page 21
21 Loan Growth by Type 21 6/30/2025 6/30/2026 Year / Year Growth 2,966,191$ 3,252,437$ 286,246$ 1,735,405$ 1,564,504$ (170,901)$ 2,557,711$ 2,781,375$ 223,664$ 1,561,461$ 1,685,723$ 124,262$ 4,338,697$ 5,123,635$ 784,938$ 8,457,869$ 9,590,733$ 1,132,864$ 73,095$ 70,815$ (2,280)$ 13,232,560$ 14,478,489$ 1,245,929$ Total Loans Dollars in Thousands Loan Type Commercial, Financial and Agricultural Real Estate - Construction Real Estate - Mortgage: Owner-Occupied Commercial 1-4 Family Mortgage Other Mortgage Subtotal: Real Estate - Mortgage Consumer
Page 22
22 ▪ 31% of the fixed rate loan portfolio matures within the next two years at a weighted average rate of 5.17% ▪ 88% of floating rate loans have a floor; weighted average floor rate is 4.74% ▪ Over $2.2 billion of projected cash flows from fixed rate loans over the next 12 months at a weighted average rate of 5.22% ▪ Slightly liability sensitive profile driven by a well-balanced rate structure Note: Loan balances and weighted average rates exclude credit card portfolios, deferred costs, overdrafts, in process accounts and loan fees. Repricing Opportunity 22 Fixed Rate Loan Maturity Table as of 06.30.2026 Dollars in thousands 1 Year or Less 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years Over 5 Years Commercial, financial and agricultural 209,059 83,334 108,665 180,961 159,972 150,522 Real estate - construction 51,914 39,065 55,266 26,380 82,901 120,875 Real estate - mortgage Owner-occupied commercial 277,630 167,993 213,474 205,236 434,619 408,545 1-4 family mortgage 62,587 23,029 22,112 60,687 90,095 744,930 Non-owner occupied commercial 776,658 353,298 364,830 315,083 475,349 321,181 Subtotal: Real estate - mortgage 1,116,875 544,319 600,415 581,006 1,000,063 1,474,656 Consumer 4,963 819 1,053 1,362 2,298 314 Total 1,382,811 667,537 765,399 789,709 1,245,233 1,746,367 Weighted average rate 4.87% 5.78% 5.82% 6.56% 6.06% 5.54% Variable Rate Loan Maturity Table as of 06.30.2026 Dollars in thousands 1 Year or Less 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years Over 5 Years Commercial, financial and agricultural 1,225,037 307,137 272,826 116,077 199,628 132,088 Real estate - construction 561,004 189,462 138,211 127,695 94,926 75,006 Real estate - mortgage Owner-occupied commercial 138,602 68,835 224,495 181,480 291,061 171,684 1-4 family mortgage 116,015 45,627 28,192 47,325 68,057 357,366 Non-owner occupied commercial 672,582 435,295 493,490 304,441 396,930 140,736 Subtotal: Real estate - mortgage 927,199 549,757 746,177 533,246 756,049 669,786 Consumer 19,391 16,472 337 808 300 5,834 Total 2,732,632 1,062,828 1,157,552 777,826 1,050,903 882,713 Weighted average rate 6.70% 6.47% 6.41% 6.23% 6.26% 6.38%
Page 23
Credit Trends 23 Commercial Real Estate Trends Year Ended December 31, Current Period (In Thousands) 2021 2022 2023 2024 2025 6/30/2026 1-4 Family Construction Speculative $ 74,811 $ 105,954 $ 109,800 $ 117,620 $ 157,346 $ 182,956 1-4 Family Construction Sold $ 96,144 $ 116,556 $ 90,772 $ 108,714 $ 125,385 $ 129,315 Resi Acquisition & Development $ 37,753 $ 35,530 $ 47,560 $ 57,278 $ 61,695 $ 67,256 Multifamily Permanent $ 459,122 $ 869,483 $ 1,038,283 $ 1,248,669 $ 1,347,178 $ 1,401,264 Residential Lot Loans $ 37,130 $ 51,816 $ 49,672 $ 41,600 $ 53,150 $ 61,043 Commercial Lots $ 60,132 $ 50,717 $ 36,694 $ 46,225 $ 79,831 $ 83,303 Raw Land $ 134,774 $ 164,932 $ 151,470 $ 162,435 $ 151,792 $ 129,454 Commercial Construction $ 662,333 $ 1,006,883 $ 1,033,652 $ 955,433 $ 828,427 $ 911,177 Retail $ 363,610 $ 537,466 $ 545,866 $ 597,129 $ 679,662 $ 777,890 Nursing Home or Assisted Living Facility $ 363,410 $ 321,210 $ 301,244 $ 308,910 $ 379,474 $ 513,578 Office Building $ 290,075 $ 384,209 $ 413,729 $ 434,407 $ 472,080 $ 575,151 Hotel or Motel $ 259,986 $ 409,720 $ 458,329 $ 592,214 $ 603,154 $ 627,966 All Other CRE Income Property $ 847,093 $ 978,145 $ 899,659 $ 999,913 $ 1,121,842 $ 1,227,787 Total CRE (Excluding O/O CRE) $3,686,371 $ 5,032,620 $ 5,176,730 $ 5,670,548 $ 6,061,017 $ 6,688,139 Total Risk-Based Capital (Bank Level) $1,303,623 $ 1,532,890 $ 1,691,212 $ 1,859,978 $ 2,039,091 $ 2,179,061 CRE as % of Total Capital 283% 328% 306% 305% 297% 307% Total Gross Loans $9,653,984 $11,687,968 $11,658,829 $12,605,836 $13,696,912 $ 14,478,489 CRE as % of Total Portfolio 39% 43% 44% 45% 44% 46% CRE Owner Occupied $ 1,874,103 $ 2,199,280 $ 2,257,163 $ 2,445,914 $ 2,629,991 $ 2,665,011 CRE OO as % of Total Portfolio 20% 19% 19% 19% 19% 18% CRE OO as % of Total Capital 144% 143% 133% 132% 129% 122% Acquisition, Development, & Construction Trends AD&C $ 1,103,076 $ 1,532,388 $ 1,519,619 $ 1,489,305 $ 1,457,628 $ 1,564,504 AD&C as % of Total Capital 85% 100% 100% 80% 71% 72% AD&C as % of Total Portfolio 12% 13% 13% 12% 11% 11%
Page 24
Strong loan growth while maintaining asset quality discipline 24 Allowance for Credit Losses / Total Loans Net Charge Offs / Total Average Loans Non-Performing Assets / Total Assets Non-Performing Loans / Total Loans 0.09% 0.12% 0.14% 0.26% 0.97% 0.96% 2021 2022 2023 2024 2025 6/30/2026 0.13% 0.15% 0.18% 0.34% 1.23% 1.18% 2021 2022 2023 2024 2025 6/30/2026 0.03% 0.08% 0.10% 0.09% 0.21% 0.17% 2021 2022 2023 2024 2025 6/30/2026 1.22% 1.25% 1.32% 1.30% 1.25% 1.26% 2021 2022 2023 2024 2025 6/30/2026 Credit Quality 24
Page 25
Consistent Earnings Results and Strong Momentum 25 Adjusted Return on Average Assets (1) Adjusted Return on Average Equity (1) Adjusted Return on Average Common Equity (1) Net Interest Margin 1) For a reconciliation of these non -GAAP measures to the most comparable GAAP measure, see "GAAP Reconciliation and Management Exp lanation of Non-GAAP Financial Measures" included at the end of this presentation. 1.55% 1.71% 1.42% 1.40% 1.62% 1.90% 2021 2022 2023 2024 2025 6/30/2026 19.47% 20.73% 15.71% 15.07% 16.66% 17.81% 2021 2022 2023 2024 2025 6/30/2026 2.94% 3.32% 2.81% 2.82% 3.12% 3.58% 2021 2022 2023 2024 2025 6/30/2026 19.48% 20.73% 15.71% 15.07% 16.67% 17.81% 2021 2022 2023 2024 2025 6/30/2026 Profitability Metrics 25
Page 26
38.69% 38.75% 40.60% 39.47% 34.71% 32.57% 33.28% 30.29% 31.84% 31.30% 38.28% 37.34% 32.09% 29.72% 1.51% 1.47% 1.55% 1.41% 1.32% 1.26% 1.20% 1.05% 0.98% 1.07% 1.11% 1.11% 1.04% 1.10% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 6/30/2026 Adj. Efficiency Ratio Adj. Non-interest Expense / Average Assets Our Operating Structure and Business Strategy Enable Efficient, Profitable Growth. 26 Adj. Efficiency Ratio (1) and Adj. Non-interest Expense / Average Assets (1) (1) (1) 1) For a reconciliation of these non-GAAP measures to the most comparable GAAP measure, see "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" included at the end of this presentation. Efficiency 26
Page 27
27 Estimated Change in Net Interest Income Over 12 Month Time Horizon Scenario % change in NII from year 1 base, based on parallel shift in yield curve, and a static balance sheet Variable-Rate Loans 54% of loans are variable rate Deposit Mix 21% of deposits are held in non-interest-bearing demand deposit accounts 1.6% 0.5% -0.6% 2.9% 0.3% 0.5% -1.4% -0.7% 0.0% 0.7% 1.4% 2.1% 2.8% 3.5% Down 200 bps Down 100 bps Up 200 bps Ramp Scenario Shock Scenario Interest Rate Sensitivity 27
Page 28
▪ Birmingham, Alabama – Key Industries: Metals manufacturing, finance, insurance, healthcare services and distribution – Key Employers: Protective Life, Encompass Health, Vulcan Materials Company, AT&T, American Cast Iron Pipe Company, Southern Company, Shipt, Brasfield & Gorrie, Coca-Cola and University of Alabama at Birmingham ▪ Huntsville, Alabama – Key Industries: U.S. government, aerospace/defense, commercial and university research – Key Employers: U.S. Army/Redstone Arsenal, Boeing Company, NASA/Marshall Space Flight Center, Intergraph Corporation, ADTRAN, Northrop Grumman, Technicolor, SAIC, DirecTV , Lockheed Martin, University of Alabama Huntsville, Boeing, and Toyota Motor Manufacturing ▪ Montgomery, Alabama – Key Industries: U.S. and state government, U.S. Air Force , automotive manufacturing, medical technology and education – Key Employers: Maxwell Gunter Air Force Base, State of Alabama, Baptist Health Systems, Hyundai Motor Manufacturing, Auburn University, SiO2 Medical Products, GE Aerospace, and MOBIS Alabama 28 Our Regions: Centers for Continued Growth 28
Page 29
▪ Dothan, Alabama – Key Industries: Agriculture, manufacturing, defense, financial services, and healthcare – Key Employers: Southeast Health Medical Center, Wayne Farms, Southern Nuclear, Michelin Tire, Globe Motors, AAA Cooper Transportation, Fort Moore, TSYS, Aflac, Piedmont Columbus Regional ▪ Northwest Florida – Key Industries: Military, health services, medical technology industries, and tourism – Key Employers: Eglin Air Force Base, Hurlburt Field, Pensacola Whiting Field, Pensacola Naval Air Station and Corry Station, Ascension Health System, Baptist Healthcare, West Florida Regional Hospital, University of West Florida, Ascend Performance Materials, Tyndall Air Force Base, Coastal Systems Station Naval Surface Warfare Center, Florida State University, Amazon, Tallahassee Memorial Healthcare, GE Wind Energy, St. Joe Company, Eastern Ship building Inc., and Berg Steel Pipe Corp ▪ Mobile, Alabama – Key Industries: Aircraft assembly, aerospace, steel, ship building, maritime, construction, medicine, and manufacturing – Key Employers: Port of Mobile, Infirmary Health Systems, Austal USA, Brookley Aeroplex, ThyssenKrupp, University of South Alabama, VT Mobile Aerospace, Outokumpu and EADS 29 Our Regions: Centers for Continued Growth (cont.) 29
Page 30
▪ Tennessee – Key Industries: Healthcare, manufacturing, entertainment, transportation, education and technology – Key Employers: HCA Holdings, Nissan North America, Dollar General Corporation, Asurion, Community Health Systems, FedEx, AutoZone, Vanderbilt University, BlueCross BlueShield and International Paper ▪ Charleston, South Carolina – Key Industries: Maritime, information technology, higher education, military, manufacturing, and tourism – Key Employers: Joint Base Charleston, Medical University of South Carolina, Roper St. Francis Healthcare, Boeing Company, Robert Bosch LLC, Blackbaud, Trident Health, Mercedes-Benz Vans and SAIC ▪ Atlanta, Georgia – Key Industries: Logistics, media, information technology, education and entertainment – Key Employers: Coca-Cola Company, Home Depot, Delta Air Lines, AT&T Mobility, UPS, Newell-Rubbermaid, Cable News Network, Georgia Tech, Lockheed Martin and Cox Enterprises 30 Our Regions: Centers for Continued Growth (cont.) 30
Page 31
▪ West Central Florida – Key Industries: Defense, financial services, information technology, healthcare, transportation, grocery, manufacturing, and tourism – Key Employers: Baycare Health System, University of South Florida, Tech Data, Raymond James Financial, Jabil Circuit, HSN, WellCare Health Plans, Sarasota Memorial Health Care System, Beall’s Inc., Teco Energy, Walt Disney World Resort, Advent Health, Publix, and Lockheed Martin ▪ North Carolina – Key Industries: Financial services, manufacturing, energy, automotive, food processing and healthcare – Key Employers: Bank of America, Wells Fargo, Duke Energy, Atrium Health, Novant Health, Lowe’s, TIAA, Nucor, Sonic Automotive, Compass Group North America, Novo Nordisk, Campbell’s, and Mission Health System ▪ Virginia Beach, Virginia – Key Industries: Defense, manufacturing, trade, information, utilities, maritime, hospitality, professional services, and healthcare – Key Employers: Naval Air Station Oceana-Dam Neck, Ft. Story, Sentara Healthcare, GEICO, STIHL, Novant Health, Huntington Ingalls Industries, Dominion Energy, Newport News Shipbuilding, Jefferson Labs, LifeNet Health and Siemens Gamesa ▪ Houston, Texas – Key Industries: Energy, healthcare, aerospace, technology, logistics and trade – Key Employers: Chevron, Houston Methodist, MD Anderson Cancer Center, NASA, Hewlett Packard Enterprise, Amazon, and United Airlines 31 Our Regions: Centers for Continued Growth (cont.) 31
Page 32
32 1) For a reconciliation of these non-GAAP measures to the most comparable GAAP measure, see "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" included at the end of this presentation. 2) Non-GAAP financial measures. "Tangible Common Equity to Tangible Assets" and "Tangible Book value per Share" are not measures of financial performance recognized by generally accepted accounting principles in the United States, or GAAP. Dollars in Millions Except per Share Amounts 2017 2018 2019 2020 2021 2022 2023 2024 2025 6/30/2026 Balance Sheet Total Assets $7,082 $8,007 $8,948 $11,933 $15,449 $14,596 $16,130 $17,352 $17,727 $18,346 Net Loans $5,792 $6,465 $7,185 $8,378 $9,416 $11,542 $11,506 $12,441 $13,525 $14,297 Deposits $6,092 $6,916 $7,530 $9,976 $12,453 $11,547 $13,274 $13,543 $14,219 $14,549 Net Loans / Deposits 95% 93% 95% 84% 76% 100% 87% 92% 95% 98% Net Loans / (Deposits + Fed Funds Purchased) 91% 90% 90% 77% 66% 88% 79% 80% 86% 89% Total Equity $608 $715 $843 $993 $1,152 $1,298 $1,440 $1,617 $1,850 $1,978 Profitability Net Income $93.1 $136.9 $149.2 $169.6 $207.7 $251.5 $206.9 $227.2 $276.6 $168.8 Net Income Available to Common $93.0 $136.9 $149.2 $169.5 $207.7 $251.4 $206.8 $227.2 $276.5 $168.7 Adj. Net Income Available to Common (1) $96.3 $136.9 $147.9 $169.5 $210.0 $251.4 $206.8 $228.5 $287.1 $168.7 Adj. ROAA (1) 1.48% 1.88% 1.71% 1.59% 1.55% 1.71% 1.42% 1.40% 1.62% 1.90% Adj. ROAE (1) 16.96% 20.96% 19.00% 18.55% 19.48% 20.73% 15.71% 15.07% 16.67% 17.81% Adj. ROACE (1) 16.95% 20.95% 18.99% 18.55% 19.47% 20.73% 15.71% 15.07% 16.66% 17.81% Net Interest Margin 3.68% 3.75% 3.46% 3.31% 2.94% 3.32% 2.81% 2.82% 3.12% 3.58% Adj. Efficiency Ratio (1) 34.71% 32.57% 33.31% 30.29% 31.84% 31.30% 40.67% 37.34% 32.09% 29.72% Capital Adequacy Tangible Common Equity to Tangible Assets (2) 8.39% 8.77% 9.27% 8.22% 7.38% 8.81% 8.85% 9.25% 10.37% 10.72% Common Equity Tier 1 RBC Ratio 9.51% 10.12% 10.50% 10.50% 9.95% 9.55% 10.91% 11.42% 11.65% 11.83% Tier I Leverage Ratio 8.51% 9.07% 9.13% 8.23% 7.39% 9.29% 9.12% 9.59% 10.26% 10.93% Tier I RBC Ratio 9.52% 10.13% 10.50% 10.50% 9.96% 9.55% 10.92% 11.42% 11.66% 11.83% Total RBC Ratio 11.52% 12.05% 12.31% 12.20% 11.58% 11.03% 12.45% 12.90% 12.93% 13.09% Asset Quality NPAs / Assets 0.25% 0.41% 0.50% 0.21% 0.09% 0.12% 0.14% 0.26% 0.97% 0.96% NCOs / Average Loans 0.29% 0.20% 0.32% 0.36% 0.03% 0.08% 0.10% 0.09% 0.21% 0.17% Credit Loss Reserve / Gross Loans 1.02% 1.05% 1.05% 1.04% 1.22% 1.25% 1.32% 1.30% 1.25% 1.26% Per Share Information Common Shares Outstanding 52,992,586 53,375,195 53,623,740 53,943,751 54,227,060 54,326,527 54,461,580 54,570,138 54,624,955 54,671,023 Book Value per Share $11.47 $13.40 $15.71 $18.41 $21.24 $23.89 $26.45 $29.63 $33.87 $36.19 Tangible Book Value per Share (2) $11.19 $13.13 $15.45 $18.15 $20.99 $23.64 $26.20 $29.38 $33.62 $35.94 Diluted Earnings per Share $1.72 $2.53 $2.76 $3.13 $3.82 $4.61 $3.79 $4.16 $5.06 $3.09 Adj. Diluted Earnings per Share (1) $1.78 $2.53 $2.74 $3.13 $3.86 $4.61 $3.79 $4.18 $5.25 $3.09 Our Financial Performance: Key Operating and Performance Metrics 32
Page 33
33 Dollars in Thousands 2017 2018 2019 2020 2021 2022 2023 2024 2025 6/30/2026 Nonaccrual Loans: Commercial, Financial & Agricultural 9,712 10,503 14,729 11,709 4,343 7,108 7,217 25,692 26,756 23,905 Construction - 997 1,588 234 - - 111 - 35,885 35,087 Owner-Occupied Commercial Real Estate 556 3,358 10,826 1,259 1,021 3,312 7,089 8,744 13,578 22,411 1-4 Family 459 2,046 1,440 771 1,398 1,524 4,426 3,051 9,440 9,897 Other Real Estate Loans - 5,022 1,507 - - 506 506 1,259 81,977 77,740 Consumer 38 - - - - - - - 715 671 Total Nonaccrual Loans 10,765 21,926 30,091 13,973 6,762 12,450 19,349 39,501 168,351 169,711 Total 90+ Days Past Due & Accruing 60 5,844 6,021 4,981 5,335 5,391 2,184 2,965 478 1,242 Total Nonperforming Loans 10,825 27,770 36,112 18,954 12,097 17,841 21,533 42,466 168,829 170,953 Other Real Estate Owned & Repossessions 6,701 5,169 8,178 6,497 1,208 248 995 2,531 2,583 4,834 Total Nonperforming Assets 17,526 32,939 44,290 25,451 13,305 18,089 22,528 44,997 171,412 175,787 Allowance for Credit Losses: Beginning of Year 51,893 59,406 68,600 76,584 87,942 116,660 146,297 153,317 164,458 171,683 Impact of Adoption of ASC 326 (1) (2,000) Charge-Offs: Commercial, Financial and Agricultural (13,910) (11,428) (15,015) (23,936) (3,453) (9,256) (13,229) (12,115) (24,906) (12,365) Real Estate - Construction (56) - - (1,032) (14) - (108) - (46) (711) Owner-Occupied Commercial - - - - - - - - (4,038) - Non-Owner Occupied Commercial - - - - - - - - (1,168) - Real Estate - Mortgage: (2,056) (1,042) (6,882) (4,397) (279) (221) (171) (998) (5,509) (96) Consumer (310) (283) (592) (203) (368) (660) (1,073) (571) (707) (250) Total Charge-Offs (16,332) (12,753) (22,489) (29,568) (4,114) (10,137) (14,581) (13,684) (31,166) (13,422) Recoveries: Commercial, Financial and Agricultural 337 349 306 252 1,135 2,012 2,800 3,021 2,900 845 Real Estate - Construction 168 112 3 32 52 - 3 8 30 - Owner-Occupied Commercial - - - - - - - - 1 390 Non-Owner Occupied Commercial - - - - - - - - - 2 Real Estate - Mortgage: 89 46 13 140 86 - - 31 1 396 Consumer 26 38 107 68 42 155 83 212 115 94 Total Recoveries 620 545 429 492 1,315 2,167 2,886 3,272 3,046 1,335 Net Charge-Offs (15,712) (12,208) (22,060) (29,076) (2,799) (7,970) (11,695) (10,412) (28,120) (12,087) Allocation from LGP - - 7,406 - - - - - - - Provision for Credit Losses Charged to Expense 23,225 21,402 22,638 42,434 31,517 37,607 18,715 21,587 35,347 22,257 Allowance for Credit Losses at End of Period 59,406 68,600 76,584 87,942 116,660 146,297 153,317 164,458 171,683 181,853 As a Percent of Year to Date Average Loans: Net Charge-Offs 0.29% 0.20% 0.32% 0.36% 0.03% 0.08% 0.10% 0.09% 0.21% 0.17% Provision for Credit Losses 0.43% 0.35% 0.33% 0.52% 0.36% 0.36% 0.16% 0.18% 0.27% 0.32% Allowance for Credit Losses As a Percentage of: Loans 1.02% 1.05% 1.05% 1.04% 1.22% 1.25% 1.32% 1.30% 1.25% 1.26% Our Financial Performance: Asset Quality, Credit Loss Reserve, and Charge-Offs 33
Page 34
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures In 2025, we recognized a $7.8 million loss on sale of available-for-sale debt securities in non-interest income during the third quarter of 2025 due to continued restructuring of the portfolio. We recognized an $8.6 million loss on sale of available-for-sale debt securities in non-interest income during the second quarter of 2025 due to restructuring of the portfolio. We reversed a $2.3 million legal reserve from interest expense during the second quarter of 2025 . These adjustments to our results are unusual, or infrequent, in nature and are not considered to be part of our non-interest expense, non-interest income and interest expense run rates, respectively. During the fourth quarter of 2023, we recorded a one-time expense of $7.2 million associated with the FDIC’s special assessment to recapitalize the Deposit Insurance Fund following bank failures in the spring of 2023. This assessment was updated in the first quarter of 2024 resulting in additional expense of $1.8 million. These expenses are unusual, or infrequent, in nature and not part of the noninterest expense run rate. Each of adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity and adjusted efficiency ratio excludes the impact of these items, net of tax, and are all considered non-GAAP financial measures. During the fourth quarter of 2021, we recorded $3.0 million of expenses associated with our Adjusted 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. We recorded a $1.7 million credit to our FDIC and other regulatory assessments expense in 2019 as a result of the FDIC’s Small Bank Assessment Credit. We recorded $3.1 million of additional tax expense as a result of revaluing our net deferred tax assets at December 31, 2017 due to lower corporate income tax rates provided by the Tax Cuts and Jobs Act passed into law in December 2017. The revaluation adjustment of our net deferred tax asset position was impacted by a number of factors, including increased loan charge-offs in the fourth quarter of 2017, increases in deferred tax liabilities relating to depreciation expense on our new headquarters building, and dividends from our captive real estate investment trusts. In 2017 we also recorded expenses of $347,000 related to terminating the lease agreement on our previous headquarters building in Birmingham, Alabama and expenses of moving into our new headquarters building. The table below presents computations of earnings and certain other financial measures which exclude the significant adjustments discussed above. These non- GAAP financial measures include “adjusted net income available to common stockholders,” “adjusted earnings per share, basic,” “adjusted earnings per share, diluted,” “adjusted return on average assets,” “adjusted return on average stockholders’ equity,” “adjusted return on average common stockholders’ equity” and “adjusted efficiency ratio.” Adjusted earnings per share, basic is adjusted net income available to common stockholders divided by weighted average shares outstanding. Adjusted earnings per share, diluted is adjusted net income available to common stockholders divided by weighted average diluted shares outstanding. Adjusted return on average assets is adjusted net income divided by average total assets. Adjusted return of average stockholders’ equity is adjusted net income divided by average total stockholders’ equity. Adjusted return of average common stockholders’ equity is adjusted net income divided by average common stockholders’ equity. The adjusted efficiency ratio is adjusted non-interest expense divided by the sum of adjusted net interest income and adjusted non-interest income. Our management and board use these non-GAAP measures for reporting financial performance to internal users for management purposes and externally as part of presentations to investors. We believe these non-GAAP financial measures provide useful information to management, our board 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 inherent limitations, are not audited and are not required to be uniformly applied. All amounts are in thousands, except share and per share data. 34
Page 35
As Of and For the Period Ended June 30, 2026 As Of and For the Period Ended December 31, 2025 As Of and For the Period Ended December 31, 2024 As Of and For the Period Ended December 31, 2023 As Of and For the Period Ended December 31, 2022 As Of and For the Period Ended December 31, 2021 As Of and For the Period Ended December 31, 2020 As Of and For the Period Ended December 31, 2019 As Of and For the Period Ended December 31, 2018 As Of and For the Period Ended December 31, 2017 Provision for income taxes - GAAP 39,359 65,527 51,740 37,735 $ 45,615 $ 37,618 $ 44,258 Adjustment for non-routine expense/credit - 3,539 452 2,619 756 421 -132 Adjusted provision for income taxes - non-GAAP 39,359 69,066 52,192 40,354 $ 46,371 $ 38,039 $ 44,126 Return on average assets - GAAP 1.90 % 1.56 % 1.39 % 1.37 % 1.53 % 1.73 % 1.43 % Net income - GAAP 168,764 $ 276,603 $ 227,242 $ 206,853 $ 207,734 $ 149,180 $ 93,092 Adjustment for non-routine expense/credit - 10,560 1,347 7,817 2,251 -1,185 3,274 Adjusted net income - non-GAAP 168,764 $ 287,163 $ 228,589 $ 214,670 $ 209,985 $ 147,995 $ 96,366 Average assets 17,746,068 $ 17,746,068 $ 16,333,383 $ 15,066,716 $ 13,555,221 $ 8,638,604 $ 6,495,067 Adjusted return on average assets - non-GAAP 1.90 % 1.62 % 1.40 % 1.42 % 1.55 % 1.71 % 1.48 % Return on average common stockholders' equity - GAAP 17.81 % 16.05 % 14.98 % 15.13 % 19.26 % 19.15 % 16.37 % Net income available to common stockholders - GAAP 168,733 $ 276,541 $ 227,180 $ 206,791 $ 207,672 $ 149,180 $ 93,030 Adjustment for non-routine expense/credit - 10,560 1,347 7,817 2,251 -1,185 3,274 Adjusted net income available to common stockholders - non-GAAP 168,733 $ 287,101 $ 228,527 $ 214,608 $ 209,923 $ 147,995 $ 96,304 Average common stockholders' equity 1,910,751 $ 1,722,929 $ 1,516,855 $ 1,366,708 $ 1,078,075 $ 779,071 $ 568,228 Adjusted return on average common stockholders' equity - non-GAAP 17.81 % 16.66 % 15.07 % 15.71 % 19.47 % 18.99 % 16.95 % Diluted earnings per share - GAAP 3.09 $ 5.06 $ 4.16 $ 3.79 $ 3.82 $ 2.76 $ 1.72 Weighted average shares outstanding, diluted - GAAP 54,698,973 54,666,274 54,624,234 54,530,797 54,434,573 54,103,074 54,161,788 Adjusted diluted earnings per share - non-GAAP 3.09 $ 5.25 $ 4.18 $ 3.94 $ 3.86 $ 2.73 $ 1.78 Book value per share - GAAP $ 36.19 $ 33.87 $ 29.63 $ 26.45 $ 23.89 $ 21.24 $ 18.41 $ 15.71 $ 13.4 $ 11.47 Total common stockholders' equity - GAAP 1,978,418 1,850,347 1,616,772 1,440,405 1,297,896 1,152,015 992,852 842,682 715,203 607,604 Adjusted for goodwill and other identifiable intangible assets -13,615 -13,615 -13,615 -13,615 -13,615 -13,638 -13,908 -14,179 -14,449 -14,787 Tangible common stockholders' equity - non-GAAP $ 1,964,803 $ 1,836,732 $ 1,603,157 $ 1,426,790 $ 1,284,281 $ 1,138,377 $ 978,944 $ 828,503 $ 700,754 $ 592,885 Tangible book value per share - non-GAAP $ 35.94 $ 33.62 $ 29.38 $ 26.2 $ 23.64 $ 20.99 $ 18.15 $ 15.45 $ 13.13 $ 11.19 Stockholders' equity to total assets - GAAP 10.78 % 10.44 % 9.32 % 8.93 % 8.89 % 7.46 % 8.32 % 9.42 % 8.93 % 8.58 % Total assets - GAAP $ 18,345,498 $ 17,727,190 $ 17,351,643 $ 16,129,668 $ 14,595,753 $ 15,448,806 $ 11,927,955 $ 8,947,653 $ 8,007,382 $ 7,082,384 Adjusted for goodwill and other identifiable intangible assets -13,615 -13,615 -13,615 -13,615 -13,615 -13,638 -13,908 -14,179 -14,449 -14,719 Total tangible assets - non-GAAP $ 18,331,883 $ 17,713,575 $ 17,338,028 $ 16,116,053 $ 14,582,138 $ 15,435,168 $ 11,914,047 $ 8,933,474 $ 7,992,933 $ 7,067,665 Tangible common equity to total tangible assets - non- GAAP 10.72 % 10.37 % 9.25 % 8.85 % 8.81 % 7.38 % 8.22 % 9.27 % 8.77 % 8.39 % GAAP Reconciliation 35