Press Releases

ServisFirst Bancshares, Inc. Reports Third Quarter 2009 Earnings

BIRMINGHAM, Ala., Oct. 19 /PRNewswire-FirstCall/ -- ServisFirst Bancshares, Inc. today reported earnings for the quarter and nine months ending September 30, 2009.

Third Quarter 2009 Highlights:

    --  Net income of $1.608 million
    --  Deposits grew 13% in the quarter and 43% year/year, with no brokered
        deposits
    --  Total assets exceed $1.5 billion

    --  Tier 2 capital in Bank exceeds $127 million

"We are pleased to report a positive earnings trend in the third quarter, the third consecutive quarter of improvement," said Bud Foshee, CFO. "In particular, we are very pleased with the Dothan Region, which has reached profitability ahead of our projections," Foshee added.

Tom Broughton, President and CEO, said "We are proud that we have reported sixteen consecutive quarters of profits, going back to our sixth month of operation in October 2005. Very few banks have been able to achieve such consistent profitability in today's environment, and we are grateful for the strong support of our customers and shareholders."

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.


    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
                                      September 30,      June 30,
                                    2009        2008        2009
                                (Unaudited) (Unaudited) (Unaudited)
     Total interest income        $16,092     $13,881     $14,979
     Total interest expense         4,648       5,004       4,478
                                    -----       -----       -----
         Net interest income
          before provision         11,444       8,877      10,501
     Provision for loan losses      3,209       1,381       2,608
                                    -----       -----       -----
         Net interest income        8,235       7,496       7,893
         Total noninterest
          income                      967         672       1,282

     Salaries and employee
      benefits                      3,398       2,684       3,590
     Other noninterest expense      3,574       2,777       3,292
                                    -----       -----       -----
         Total noninterest
          expense                   6,972       5,461       6,882
                                    -----       -----       -----
         Income before taxes        2,230       2,707       2,293
     Income taxes                     622         983         734
                                      ---         ---         ---
         Net income                $1,608      $1,724      $1,559
                                   ======      ======      ======

     Basic earnings per share       $0.29       $0.34       $0.28
     Diluted earnings per share     $0.28       $0.32       $0.27
     Average basic shares       5,513,482   5,113,482   5,513,482
     Average fully diluted
      shares                    5,821,331   5,343,930   5,809,655


                                              Nine Months Ended September 30,
                                                     2009              2008
                                                (Unaudited)       (Unaudited)
      Total interest income                        $45,007           $41,057
      Total interest expense                        14,017            15,399
                                                    ------            ------
          Net interest income
           before provision                         30,990            25,658
      Provision for loan losses                      8,277             4,900
                                                     -----             -----
          Net interest income                       22,713            20,758
          Total noninterest
           income                                    3,169             1,911

      Salaries and employee
       benefits                                     10,354             7,910
      Other noninterest expense                      9,933             6,911
                                                     -----             -----
          Total noninterest
           expense                                  20,287            14,821
                                                    ------            ------
          Income before taxes                        5,595             7,848
      Income taxes                                   1,708             2,803
                                                     -----             -----
          Net income                                $3,887            $5,045
                                                    ======            ======

      Basic earnings per share                       $0.71             $0.99
      Diluted earnings per share                     $0.67             $0.95
      Average basic shares                       5,476,701         5,113,482
      Average fully diluted
       shares                                    5,774,441         5,338,493




                          SERVISFIRST BANCSHARES, INC.
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)

                                    September 30, September 30, December 31,
                                          2009          2008         2008
                                      (Unaudited)   (Unaudited)    (Audited)
    ASSETS
    Cash and due from banks             $186,842       $28,766      $53,618
    Investment securities                138,038        90,139      102,339
    Restricted equity securities           3,241         2,659        2,659
    Federal funds sold and other
     investments                             384        30,022       19,300
    Mortgage loans held for sale           5,087         4,060        3,320

    Loans                              1,154,090       898,826      968,233
    Reserve for loan losses              (14,596)      (10,384)     (10,602)
                                         -------       -------      -------
    Net loans                          1,139,494       888,442      957,631
    Foreclosed real estate                13,453         8,211       10,473
    Other assets                          15,939        12,609       12,932
                                          ------        ------       ------
    Total assets                      $1,502,478    $1,064,908   $1,162,272
                                      ==========    ==========   ==========

    LIABILITIES
    Liabilities:
    Noninterest-bearing                 $175,089      $105,884     $121,459
    Interest-bearing                   1,186,394       844,854      915,860
                                       ---------       -------      -------
    Total deposits                     1,361,483       950,738    1,037,319
    Borrowings                            40,112        35,052       35,087
    Interest payable                       1,103         1,190        1,280
    Other liabilities                      2,286         1,170        1,803
                                           -----         -----        -----
    Total liabilities                  1,404,984       988,150    1,075,489

    Stockholders' equity                  97,494        76,758       86,783
    Total liabilities and
     stockholders' equity             $1,502,478    $1,064,908   $1,162,272
                                      ==========    ==========   ==========


                             SERVISFIRST BANCSHARES, INC.
                                      Key Ratios

                                             Three Months Ended
                                       September 30,          June 30,
                                   2009          2008          2009
                               (Unaudited)   (Unaudited)   (Unaudited)

    Return on average assets        0.45%          0.71%         0.48%
    Return on average equity        6.75%          8.99%         6.77%
    Net interest margin (fully
     tax equivalent)                3.36%          3.66%         3.39%
    Efficiency ratio               56.18%         57.19%        58.41%


                                      Nine Months Ended September 30,
                                        2009                2008
                                    (Unaudited)         (Unaudited)

    Return on average assets              0.60%              0.85%
    Return on average equity              8.60%              8.97%
    Net interest margin (fully
     tax equivalent)                      3.31%              3.80%
    Efficiency ratio                     59.39%             53.76%

                                         9/30/2009    9/30/2008     6/30/2009
                                        (unaudited)  (unaudited)   (unaudited)

    Book value per share                    $17.68        $14.91       $16.85
    Tangible book value per share           $17.68        $14.91       $16.85
    % of reserve for loan losses
     to total loans                           1.26%         1.16%        1.22%
    Nonperforming assets to total
     loans plus foreclosed real estate        2.51%         1.69%        2.18%

SOURCE ServisFirst Bancshares, Inc.