Press Releases

ServisFirst Bancshares, Inc. Reports Record Earnings for Fourth Quarter 2009

BIRMINGHAM, Ala., Jan. 19 /PRNewswire/ -- ServisFirst Bancshares, Inc. today reported earnings for the quarter and year ended December 31, 2009.

2009 and Fourth Quarter Highlights:

    --  Fourth quarter record net income of $2.5 million, a 27% increase
        year/year
    --  Profitable all four full years of operation
    --  Deposit growth of 38% year/year
    --  Achieved profitability in all four regions in the fourth quarter


Tom Broughton, President and CEO, stated, "We are pleased to report record earnings for the fourth quarter of 2009, with continued strong growth in core deposits. We continue to be pleased with our asset quality, which is significantly better than our peer group." Bud Foshee, Chief Financial Officer said, "The Company was profitable in all four regions for the fourth quarter, the first quarter all four regions have achieved this benchmark."

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 collectability 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

                                        December 31,              September 30,

                                        2009         2008         2009

                                        (Unaudited)  (Unaudited)  (Unaudited)

Total interest income                   $ 17,190     $ 14,393     $ 16,092

Total interest expense                  4,320        5,075        4,648

 Net interest income before provision   12,870       9,318        11,444

Provision for loan losses               2,408        1,373        3,209

  Net interest income after provisions
  for loan losses                       10,462       7,945        8,235

  Total noninterest income              1,244        792          967



Salaries and employee benefits          3,227        2,642        3,398

Other noninterest expense               4,616        3,113        3,574

  Total noninterest expense             7,843        5,755        6,972

  Income before taxes                   3,863        2,982        2,230

Income taxes                            1,367        1,021        622

  Net income                            $ 2,496      $ 1,961      $ 1,608



Basic earnings per share                $ 0.45       $ 0.38       $ 0.29

Diluted earnings per share              $ 0.43       $ 0.36       $ 0.28

Average basic shares                    5,513,482    5,116,314    5,513,482

Average fully diluted shares            5,828,763    5,391,259    5,821,331









                                                 Year Ended December 31,

                                                 2009         2008

                                                 (Unaudited)  (Audited)

Total interest income                            $ 62,197     $ 55,450

Total interest expense                           18,337       20,474

 Net interest income before provision            43,860       34,976

Provision for loan losses                        10,685       6,274

  Net interest income after provisions for loan
  losses                                         33,175       28,702

  Total noninterest income                       4,413        2,704



Salaries and employee benefits                   13,581       10,552

Other noninterest expense                        14,549       10,024

  Total noninterest expense                      28,130       20,576

  Income before taxes                            9,458        10,830

Income taxes                                     3,075        3,825

  Net income                                     $ 6,383      $ 7,005



Basic earnings per share                         $ 1.16       $ 1.37

Diluted earnings per share                       $ 1.08       $ 1.31

Average basic shares                             5,485,972    5,114,194

Average fully diluted shares                     5,912,861    5,338,883







SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)



                                          December 31, 2009  December 31, 2008

                                          (Unaudited)        (Audited)

ASSETS

Cash and due from banks                   $ 75,526           $ 53,618

Investment securities                     256,098            102,339

Restricted equity securities              3,241              2,659

Federal funds sold and other investments  680                19,300

Mortgage loans held for sale              6,202              3,320



Loans                                     1,203,584          968,233

Reserve for loan losses                   (14,736)           (10,602)

Net loans                                 1,188,848          957,631

Foreclosed real estate                    12,525             10,473

Other assets                              30,349             12,932

Total assets                              $ 1,573,469        $ 1,162,272



LIABILITIES & STOCKHOLDERS' EQUITY

Liabilities:

Noninterest-bearing                       $ 211,348          $ 121,459

Interest-bearing                          1,221,048          915,860

Total deposits                            1,432,396          1,037,319

Borrowings                                40,150             35,087

Interest payable                          1,026              1,280

Other liabilities                         1,770              1,803

Total liabilities                         1,475,342          1,075,489



Stockholders' equity                      98,127             86,783

Total liabilities and stockholders'
equity                                    $ 1,573,469        $ 1,162,272









SERVISFIRST BANCSHARES, INC.

Key Ratios



                                Three Months Ended

                                December 31,              September 30,

                                2009         2008         2009

                                (Unaudited)  (Unaudited)  (Unaudited)

Return on average assets        0.62%        0.70%        0.45%

Return on average equity        10.10%       8.50%        6.75%

Net interest margin (fully tax
equivalent)                     3.33%        3.50%        3.36%

Efficiency ratio                55.57%       56.92%       56.18%







                                            Year Ended December 31,

                                            2009         2008

                                            (Unaudited)  (Audited)

Return on average assets                    0.46%        0.71%

Return on average equity                    6.87%        9.28%

Net interest margin (fully tax equivalent)  3.31%        3.70%

Efficiency ratio                            58.27%       54.61%







                       December 31, 2009  December 31, 2008  September 30, 2009

                       (Unaudited)        (Audited)          (Unaudited)

Book value per share   $ 17.80            $ 16.15            $ 17.68

Tangible book value
per share              $ 17.80            $ 16.15            $ 17.68

% of reserve for loan
losses to total loans  1.22%              1.09%              1.26%

Nonperforming assets
to total loans plus
foreclosed real
estate                 2.03%              2.06%              2.51%






SOURCE ServisFirst Bancshares, Inc.