Press Releases

ServisFirst Bancshares, Inc. Reports Record Third Quarter 2010

BIRMINGHAM, Ala., Oct. 18 /PRNewswire-FirstCall/ -- ServisFirst Bancshares, Inc. today reported record earnings for the quarter and nine months ended September 30, 2010.

Third Quarter 2010 Highlights:

# Third quarter record net income of $4,799,000, a 198% increase year/year
# 20 consecutive quarters of profitability
# New Private Client Group from a regional bank joined Birmingham office
# Earnings per share of $.87 for the quarter and $2.33 for nine months


"We are pleased to report record third quarter and nine months earnings.  We continue to grow our profitability by following solid banking fundamentals, and we are adding customers due to turmoil and credit issues at some of our major competitors," said Tom Broughton, President and CEO. Bud Foshee, CFO, stated, "Our improved margins and continued improvement in our efficiency ratio, combined with steady growth in deposits and loans, have contributed to our record earnings." ServisFirst Bancshares, Inc., was recently ranked 18th in the United States for efficiency by American Banker, the respected daily newspaper for the banking industry.

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, Huntsville, Montgomery and Dothan, Alabama.

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.


SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except shares and per share data)





                                      Three Months Ended

                                      September 30,  September 30,  June 30,

                                      2010           2009           2010

                                      (Unaudited)    (Unaudited)    (Unaudited)

Total interest income                 $ 19,959       $ 16,092       $ 18,996

Total interest expense                3,972          4,648          3,688

 Net interest income before
 provision                            15,987         11,444         15,308

Provision for loan losses             2,537          3,209          2,537

 Net interest income after provision
 for loan losses                      13,450         8,235          12,771

 Total noninterest income             1,348          967            1,004



Salaries and employee benefits        3,547          3,398          3,147

Other noninterest expense             3,920          3,574          4,414

 Total noninterest expense            7,467          6,972          7,561

 Income before taxes                  7,331          2,230          6,214

Income taxes                          2,532          622            2,193

 Net income                           $ 4,799        $ 1,608        $ 4,021



Basic earnings per share              $ 0.87         $ 0.29         $ 0.73

Diluted earnings per share            $ 0.77         $ 0.28         $ 0.65

Average basic shares                  5,515,384      5,513,482      5,513,482

Average fully diluted shares          6,417,947      5,821,331      6,399,929






                                               Nine Months Ended September 30,

                                               2010         2009

                                               (Unaudited)  (Unaudited)

Total interest income                          $ 57,457     $ 45,007

Total interest expense                         11,256       14,017

 Net interest income before provision          46,201       30,990

Provision for loan losses                      7,612        8,277

 Net interest income after provision for loan
 losses                                        38,589       22,713

 Total noninterest income                      3,484        3,169



Salaries and employee benefits                 10,176       10,354

Other noninterest expense                      12,284       9,933

 Total noninterest expense                     22,460       20,287

 Income before taxes                           19,613       5,595

Income taxes                                   6,780        1,708

 Net income                                    $ 12,833     $ 3,887



Basic earnings per share                       $ 2.33       $ 0.71

Diluted earnings per share                     $ 2.11       $ 0.67

Average basic shares                           5,514,123    5,476,701

Average fully diluted shares                   6,249,500    5,774,441






SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)



                                     September 30,  December 31,  September 30,

                                     2010           2009          2009

                                     (Unaudited)    (Audited)     (Unaudited)

ASSETS

Cash and due from banks              $ 149,841      $ 75,526      $ 186,842

Investment securities                251,838        256,098       137,624

Restricted equity securities         3,510          3,241         3,241

Federal funds sold and other
investments                          2,213          680           384

Mortgage loans held for sale         8,708          6,202         5,087



Loans                                1,345,502      1,207,084     1,154,090

Reserve for loan losses              (16,903)       (14,911)      (14,596)

Net loans                            1,328,599      1,192,173     1,139,494

Foreclosed real estate               8,170          12,525        13,453

Other assets                         23,645         27,052        16,080

Total assets                         $ 1,776,524    $ 1,573,497   $ 1,502,205



LIABILITIES AND STOCKHOLDERS'
EQUITY

Liabilities:

Noninterest-bearing                  $ 224,537      $ 211,307     $ 175,089

Interest-bearing                     1,377,020      1,221,048     1,186,394

Total deposits                       1,601,557      1,432,355     1,361,483

Borrowings                           55,317         40,150        40,112

Interest payable                     914            1,026         1,103

Other liabilities                    2,559          2,344         2,286

Total liabilities                    1,660,347      1,475,875     1,404,984



Stockholders' equity                 116,177        97,622        97,221

Total liabilities and stockholders'
equity                               $ 1,776,524    $ 1,573,497   $ 1,502,205






SERVISFIRST BANCSHARES, INC.

Key Ratios



                                Three Months Ended

                                September 30,  September 30,  June 30,

                                2010           2009           2010

                                (Unaudited)    (Unaudited)    (Unaudited)

Return on average assets        1.10%          0.45%          1.02%

Return on average equity        16.86%         6.75%          15.34%

Net interest margin (fully tax
equivalent)                     3.83%          3.36%          4.07%

Efficiency ratio                43.07%         56.18%         46.35%






                                            Nine Months Ended September 30,

                                            2010         2009

                                            (Unaudited)  (Unaudited)

Return on average assets                    1.06%        0.60%

Return on average equity                    16.12%       8.60%

Net interest margin (fully tax equivalent)  4.01%        3.31%

Efficiency ratio                            45.20%       59.39%






                                       9/30/2010    9/30/2009    6/30/2010

                                       (Unaudited)  (Unaudited)  (Unaudited)

Book value per share                   $ 21.05      $ 17.63      $ 19.78

Tangible book value per share          $ 21.05      $ 17.63      $ 19.78

% of reserve for loan losses to total
loans                                  1.26%        1.26%        1.22%

Nonperforming assets to total loans

 plus foreclosed real estate           1.67%        2.51%        1.45%






CONTACT: ServisFirst Bank

         Bud Foshee (205) 949-0307

         BFoshee@servisfirstbank.com





SOURCE ServisFirst Bancshares, Inc.