What the changes say
- Real estate concentration in loans is newly highlighted at 65.8% as of December 31, 2025.
- Liquidity disclosures now specify a funding mismatch: 73% demand liabilities versus 77% illiquid loans.
- The top ten borrower commitments are updated to $823.9 million, representing 6.0% of total loans.
What changed since the prior 10-K
New
- NewRisks Related to Our Business
We are subject to numerous risks related to real estate
As of December 31, 2025, real estate loans made up 65.8% of the loan portfolio, exposing the bank to collateral devaluation and foreclosure risks.
- NewRisks Related to Our Business
We have opened new offices in several new markets in the past five years. Our current strategy is to grow organically and, if appropriate, supplement that growth with select acquisitions
Expanding into new markets and executing organic or acquisition growth strategies could strain capital, regulatory limits, and human resources.
- NewRisks Related to Our Business
Our operations and financial performance could be adversely affected by natural disasters and weather
Natural disasters and extreme weather events can damage offices, disrupt systems, and impair customer ability to service loans in coastal markets.
- NewRisks Related to Our Business
Our recent results may not be indicative of our future results
Historical growth rates and recent financial results may not predict future performance due to changing economic and competitive conditions.
- NewRisks Related to Our Business
We may be subject to concentration risk
Geographic and borrower concentration in local markets exposes the bank to regional economic downturns and localized real estate fluctuations.
- NewRisks Related to Our Business
Our investments and/or financings in certain tax-advantaged projects may not generate returns as anticipated and may have an adverse impact on our financial results
Investments in renewable energy and affordable housing tax-advantaged projects risk federal and state tax credit recapture if compliance rules fail.
Dropped
- DroppedRisks Related to Our Business
We are subject to heightened regulatory requirements
- DroppedRisks Related to Our Business
A prolonged downturn in the real estate market, especially in our primary markets, could result in losses and adversely affect our profitability
Heightened regulatory requirements and CFPB oversight for bank holding companies with assets of at least $10 billion.
- DroppedRisks Related to Our Business
Our business, financial condition, results of operations and prospects could be negatively affected if we fail to grow or fail to manage our growth effectively
Prolonged real estate downturn affecting profitability based on December 31, 2024 figures.
- DroppedRisks Related to Our Business
Unpredictable economic conditions, including inflation, recession, tariffs, trade wars, pandemics or changes in other economic conditions in the U.S. economy generally or in any of our market areas may have a material adverse effect on our financial performance
- DroppedRisks Related to Our Business
Our operations and financial performance could be adversely affected by natural disasters, and climate change can increase those risks while adding regulatory, compliance, reputational and other risks
- DroppedRisks Related to Our Business
Our recent results may not be indicative of our future results and may not provide guidance to assess the risk of an investment in our common stock
- DroppedRisks Related to Our Business
We may have more credit risk and higher credit losses to the extent loans are concentrated by location or industry of the borrowers or collateral
- DroppedRisks Related to Our Business
We engage in lending secured by real estate and may be forced to foreclose on the collateral and own the underlying real estate, subjecting us to the costs associated with the ownership of the real property
Growth management risks listing specific new offices in Alabama, Florida, Georgia, North Carolina, Tennessee, and Virginia.
- DroppedRisks Related to Our Business
We are subject to environmental liability risk associated with our lending activities
Reworded
- 70% rewrittenRisks Related to Our Business
We use information technology in our operations and offer online banking services to our customers, which exposes us to the risk of unauthorized access
Added specific focus on remote connectivity solutions, mobile banking, and evolving cybersecurity threats like phishing and malware.
Was: We use information technology in our operations and offer online banking services to our customers. Any unauthorized access to our or our customers’ confidential or proprietary information exposes us to reputational harm and litigation and could adversely affect our ability to attract and retain customers
- 70% rewrittenRisks Related to Our Business
We are dependent on the services of our management team, key employees and Board of Directors
Removed specific references to advisory board community relationships and emphasized key management personnel and Board of Directors.
Was: We are dependent on the services of our management team and Board of Directors, and the unexpected loss of key officers or directors may adversely affect our business and operations
- 68% rewrittenRisks Related to Our Business
Our largest loan relationships currently make up a significant percentage of our total loan portfolio
Updated top ten borrower commitments to $823.9 million as of December 31, 2025, representing 6.0% of total loans.
- 55% rewrittenRisks Related to Our Business
We may be adversely affected by the soundness of other financial institutions
Added specific mention that rumors or questions about financial institutions can trigger market-wide liquidity problems and potential defaults.
- 52% rewrittenRisks Related to Our Business
Our corporate structure provides for decision-making authority by our regional chief executive officers and banking teams
Added explicit warning that local bankers might intentionally or negligently fail to follow internal procedures.
Was: Our corporate structure provides for decision-making authority by our regional chief executive officers and banking teams. Our business, financial condition, results of operations and prospects could be negatively affected if our employees do not follow our internal policies or are negligent in their decision-making
- 49% rewrittenRisks Related to Our Business
Liquidity risk could impair our ability to fund operations and meet our obligations as they become due
Added specific balance sheet ratios: 73% of bank liabilities are checking and liquid deposits versus 77% in loans.
- 46% rewrittenRisks Related to Our Business
We are dependent upon outside third parties for the processing and handling of our records and data
Removed mention of proprietary software run on behalf of third parties, focusing instead on vendor-developed processing software.
- 41% rewrittenRisks Related to Our Industry
Legal and regulatory proceedings and related matters with respect to the financial services industry, including those directly involving the Company or the Bank, have, and may continue to, adversely affect us or the financial services industry in general
Added disclosure that actual costs of resolving legal claims have in the past substantially exceeded reserved amounts.
- 36% rewrittenRisks Related to Our Business
The internal controls that we have implemented in order to mitigate risks inherent to the business of banking might fail or be circumvented
Was: The internal controls that we have implemented in order to mitigate risks inherent to the business of banking might fail or be circumvented, which could have a material adverse effect on our business, financial condition, results of operations and prospects
- 33% rewrittenRisks Related to Our Business
The fair value of our investment securities can fluctuate due to factors outside of our control
- 31% rewrittenRisks Related to Our Common Stock
Financial disruption or a prolonged economic downturn could materially and adversely affect our business
- 30% rewrittenRisks Related to Our Common Stock
We and our bank are subject to capital and other requirements that restrict our ability to pay dividends
Was: We and our bank are subject to capital and other requirements which restrict our ability to pay dividends
- 28% rewrittenRisks Related to Our Business
our ability to keep pace with technological advances and to invest in new technology
- 28% rewrittenRisks Related to Our Industry
Changes in laws, government regulation, monetary policy or accounting standards may have a material adverse effect on our results of operations
- 22% rewrittenRisks Related to Our Business
Our decisions regarding credit risk could be inaccurate and our allowance for credit losses may be inadequate
Was: Our decisions regarding credit risk could be inaccurate and our allowance for credit losses may be inadequate, which could have a material adverse effect on our business, financial condition, results of operations and future prospects
All 39 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Business
- 01We are dependent on the services of our management team, key employees and Board of Directors70% rewritten
- 02We are subject to numerous risks related to real estateNew
- 03Our largest loan relationships currently make up a significant percentage of our total loan portfolio68% rewritten
- 04Our decisions regarding credit risk could be inaccurate and our allowance for credit losses may be inadequate22% rewritten
- 05The internal controls that we have implemented in order to mitigate risks inherent to the business of banking might fail or be circumvented36% rewritten
- 06Our corporate structure provides for decision-making authority by our regional chief executive officers and banking teams52% rewritten
- 07We have opened new offices in several new markets in the past five years. Our current strategy is to grow organically and, if appropriate, supplement that growth with select acquisitionsNew
- 08We face competition from financial institutions and other financial service providers
- 09our ability to keep pace with technological advances and to invest in new technology28% rewritten
- 10Our operations and financial performance could be adversely affected by natural disasters and weatherNew
- 11We encounter technological change continually and have fewer resources than many of our competitors to invest in technological improvements
- 12Our information systems may experience a failure or interruption
- 13We use information technology in our operations and offer online banking services to our customers, which exposes us to the risk of unauthorized access70% rewritten
- 14We are dependent upon outside third parties for the processing and handling of our records and data46% rewritten
- 15Our recent results may not be indicative of our future resultsNew
- 16We may be subject to concentration riskNew
- 17Regulatory requirements affecting our loans secured by commercial real estate could limit our ability to leverage our capital and adversely affect our growth and profitability
- 18We are subject to interest rate risk, which could adversely affect our profitability
- 19Liquidity risk could impair our ability to fund operations and meet our obligations as they become due49% rewritten
- 20The fair value of our investment securities can fluctuate due to factors outside of our control33% rewritten
- 21Deterioration in the fiscal position of the U.S. federal government and downgrades in Treasury and federal agency securities could adversely affect us and our banking operations
- 22We may be adversely affected by the soundness of other financial institutions55% rewritten
- 23Our investments and/or financings in certain tax-advantaged projects may not generate returns as anticipated and may have an adverse impact on our financial resultsNew
Risks Related to Our Industry
- 24We are subject to extensive regulation in the conduct of our business, which imposes additional costs on us and adversely affects our profitability
- 25As a bank holding company, we are subject to certain capital requirements that may limit our operations
- 26Changes in laws, government regulation, monetary policy or accounting standards may have a material adverse effect on our results of operations28% rewritten
- 27Federal and state regulators periodically examine our business and we may be required to remediate adverse examination findings
- 28FDIC deposit insurance assessments may materially increase in the future, which would have an adverse effect on earnings
- 29We are subject to numerous laws designed to protect consumers, including the Community Reinvestment Act and fair lending laws, and failure to comply with these laws could lead to a wide variety of sanctions
- 30Legal and regulatory proceedings and related matters with respect to the financial services industry, including those directly involving the Company or the Bank, have, and may continue to, adversely affect us or the financial services industry in general41% rewritten
- 31We face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations
Risks Related to Our Common Stock
- 32The market price of our common stock may be subject to substantial fluctuations, which may make it difficult for you to sell your shares at the volume, prices and times desired
- 33The rights of our common stockholders are subordinate to the rights of the holders of our outstanding debt and will be subordinate to the rights of the holders of any preferred securities or any debt that we may issue in the future
- 34We and our bank are subject to capital and other requirements that restrict our ability to pay dividends30% rewritten
- 35An investment in our common stock is not an insured deposit and is subject to risk of loss
- 36Our corporate governance documents, and certain corporate and banking laws applicable to us, could make a takeover more difficult
- 37require approval of federal and state regulatory agencies
- 38Financial disruption or a prolonged economic downturn could materially and adversely affect our business31% rewritten
- 39As a business operating in the financial services industry, our business and operations may be adversely affected in numerous and complex ways by weak economic conditions
Other ServisFirst Bancshares 10-Ks
- FY2024 10-K risk factors42 risks
This is ServisFirst Bancshares' initial annual report risk section, dominated by real estate loan concentration, regulatory burdens, and credit risks.
Filed Mar 03, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.