Press Releases

ServisFirst Bancshares, Inc. Announces Record Second Quarter 2011

BIRMINGHAM, Ala., July 18, 2011 /PRNewswire/ -- ServisFirst Bancshares, Inc. today reported record earnings for the quarter and six months ending June 30, 2011.

SECOND QUARTER 2011 HIGHLIGHTS:

    --  Assets exceed $2 billion
    --  Second quarter record net income of $5.8 million, a 45% increase
        year/year
    --  Basic earnings per share of $1.88 for the first six months of 2011
    --  Closed Pensacola common equity raise at $30 per share, for total
        proceeds of $10.2 million, and $40 million Small Business Lending Fund
        preferred stock sale in second quarter
    --  Tier 2 Capital over $229 million
    --  23 consecutive quarters of profitability


Tom Broughton, CEO and President, said, "We continue to focus on delivering high quality service to our clients, and, with our clients' help, are gratified to have grown to over $2 billion in assets in the past six years." Bud Foshee, CFO, stated, "Our focus in solid banking fundamentals has resulted in our ranking as one of the top performing community banks in the U.S. according to SNL Financial."

ABOUT SERVISFIRST:

ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst provides business and personal financial services through locations in Birmingham, Alabama; Huntsville, Alabama; Montgomery, Alabama; Dothan, Alabama; and Pensacola, Florida.

ServisFirst files periodic reports with the U.S. Securities and Exchange Commission (SEC).  Copies of its filings may be obtained through the SEC's website at www.sec.gov or at www.servisfirstbancshares.com.

Statements in this press release 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," "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 press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.'s senior management and involve a number of 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: 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 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, economic stimulus initiatives and so-called "bailout" initiatives; 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 collectibility of loans and the value of collateral; the effect of natural disasters, such as hurricanes, in our geographic markets; and increased competition from both banks and non-bank financial institutions.  The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to "Risk Factors" in our most recent Annual Report on Form 10-K and our other SEC filings. If one or more of the factors affecting 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.

More information about ServisFirst Bancshares may be obtained over the Internet at www.servisfirstbancshares.com or by calling (205) 949-0302.

CONTACT: ServisFirst Bank
Bud Foshee (205) 949-0307
BFoshee@servisfirstbank.com


SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except shares and per share data)





                                        Three Months Ended

                                        June 30,                   March 31,

                                        2011         2010          2011

                                        (Unaudited)  (Unaudited)   (Unaudited)

Total interest income                   $ 22,080     $ 18,996      $ 20,961

Total interest expense                  4,032        3,688         3,985

 Net interest income before provision   18,048       15,308        16,976

Provision for loan losses               1,494        2,537         2,231

 Net interest income after provision
 for loan losses                        16,554       12,771        14,745

 Total noninterest income               1,782        1,004         1,271



Salaries and employee benefits          5,026        3,147         4,214

Other noninterest expense               4,343        4,414         4,383

 Total noninterest expense              9,369        7,561         8,597

 Income before taxes                    8,967        6,214         7,419

Income taxes                            3,122        2,193         2,548

 Net income                             $ 5,845      $ 4,021       $ 4,871



Basic earnings per share                $ 1.02       $ 0.73        $ 0.88

Diluted earnings per share              $ 0.89       $ 0.65        $ 0.77

Average basic shares                    5,708,871    5,513,482     5,527,482

Average fully diluted shares            6,705,953    6,399,929     6,514,103



                                        Six Months Ended June 30,

                                        2011         2010

                                        (Unaudited)  (Unaudited)

Total interest income                   $ 43,041     $ 37,498

Total interest expense                  8,017        7,284

 Net interest income before provision   35,024       30,214

Provision for loan losses               3,725        5,075

 Net interest income after provision
 for loan losses                        31,299       25,139

 Total noninterest income               3,053        2,136



Salaries and employee benefits          9,240        6,629

Other noninterest expense               8,726        8,364

 Total noninterest expense              17,966       14,993

 Income before taxes                    16,386       12,282

Income taxes                            5,670        4,248

 Net income                             $ 10,716     $ 8,034



Basic earnings per share                $ 1.88       $ 1.46

Diluted earnings per share              $ 1.65       $ 1.33

Average basic shares                    5,694,871    5,513,482

Average fully diluted shares            6,657,359    6,159,841






SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)



                                                                   December 31,

                                     June 30, 2011  June 30, 2010  2010

                                     (Unaudited)    (Unaudited)    (Audited)

ASSETS

Cash and due from banks              $ 102,914      $ 127,102      $ 231,632

Investment securities                244,566        236,467        282,193

Restricted equity securities         3,899          3,510          3,510

Federal funds sold and other
investments                          94,541         148            346

Mortgage loans held for sale         4,092          4,462          7,875



Loans                                1,560,974      1,288,410      1,394,818

Reserve for loan losses              (19,516)       (15,713)       (18,077)

Net loans                            1,541,458      1,272,697      1,376,741

Foreclosed real
estate                               6,931          10,773         6,966

Other assets                         26,196         26,725         25,903

Total assets                         $ 2,024,597    $ 1,681,884    $ 1,935,166



LIABILITIES AND STOCKHOLDERS'
EQUITY

Liabilities:

Noninterest-bearing                  $ 283,968      $ 188,657      $ 250,490

Interest-bearing                     1,519,906      1,326,247      1,508,226

Total deposits                       1,803,874      1,514,904      1,758,716

Borrowings                           35,435         55,278         55,357

Interest payable                     983            887            898

Other liabilities                    3,104          1,769          3,095

Total liabilities                    1,843,396      1,572,838      1,818,066



Stockholders' equity                 181,201        109,046        117,100

Total liabilities and stockholders'
equity                               $ 2,024,597    $ 1,681,884    $ 1,935,166






SERVISFIRST BANCSHARES, INC.

Key Ratios



                                       Three Months Ended

                                       June 30,                   March 31,

                                       2011         2010          2011

                                       (Unaudited)  (Unaudited)   (Unaudited)

Return on average assets               1.22%        1.02%         1.06%

Return on average equity               17.30%       15.34%        16.50%

Net interest margin (fully tax
equivalent)                            3.93%        4.07%         3.86%

Efficiency ratio                       47.25%       46.35%        47.11%





                                       Six Months Ended June 30,

                                       2011         2010

                                       (Unaudited)  (Unaudited)

Return on average assets               1.14%        1.04%

Return on average equity               16.56%       15.77%

Net interest margin (fully tax
equivalent)                            3.90%        4.11%

Efficiency ratio                       47.18%       46.35%





                                       June 30,                   March 31,

                                       2011         2010          2011

                                       (Unaudited)  (Unaudited)   (Unaudited)

Book value per share                   $ 24.05      $ 19.78       $ 22.15

Tangible book value per share          $ 24.05      $ 19.78       $ 22.15

% of reserve for loan losses to total
loans                                  1.25%        1.22%         1.31%

Nonperforming assets to total loans

 plus foreclosed real estate           1.79%        1.45%         1.98%





SOURCE ServisFirst Bancshares, Inc.