Press Releases

ServisFirst Bancshares, Inc. Reports Second Quarter 2009 Earnings

BIRMINGHAM, Ala., July 20 /PRNewswire/ -- ServisFirst Bancshares, Inc. today reported earnings for the quarter and six months ending June 30, 2009.

Second Quarter 2009 Highlights:

    --  Net income up 116% over 1st quarter, to $1.56 million
    --  Tier 2 capital in Bank exceeds $124 million
    --  FDIC special assessment fully expensed in 2nd quarter

    --  Net interest margin improved 18 basis points quarter/quarter

"We are reporting another profitable quarter, well above our results in the first quarter, despite the accrual of the FDIC special assessment," said Bud Foshee, CFO. "In addition, we completed a $5 million subordinated debenture issue in the quarter, which enhances our ability to continue our growth without diluting our shareholders," said Foshee.

Tom Broughton, President and CEO, said "We are pleased, but never satisfied, with our continued strong performance despite the well-publicized woes of some banks and thrifts. The changes we are seeing present more opportunities than I have seen in my 30-year banking career."

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
                                                   June 30,        March 31,
                                              2009       2008        2009
                                           (Unaudited) (Unaudited) (Unaudited)
    Total interest income                    $14,979     $13,341     $13,937
    Total interest expense                     4,478       4,647       4,891
      Net interest income before provision    10,501       8,694       9,046
    Provision for loan losses                  2,608       2,137       2,460
      Net interest income                      7,893       6,557       6,586
      Total noninterest income                 1,282         695         919

    Salaries and employee benefits             3,590       2,400       3,367
    Other noninterest expense                  3,292       2,130       3,065
      Total noninterest expense                6,882       4,530       6,432
      Income before taxes                      2,293       2,722       1,073
    Income taxes                                 734         972         352
      Net income                            $  1,559    $  1,750  $     721

    Basic earnings per share               $    0.28   $    0.34   $    0.13
    Diluted earnings per share             $    0.27   $    0.33   $    0.13
    Average basic shares                   5,513,482   5,113,482   5,401,914
    Average fully diluted shares           5,809,655   5,290,093   5,689,409


                                            Six Months Ended June 30,
                                               2009        2008
                                           (Unaudited)  (Unaudited)
    Total interest income                    $28,915     $27,176
    Total interest expense                     9,369      10,395
      Net interest income before provision    19,546      16,781
    Provision for loan losses                  5,068       3,519
      Net interest income                     14,478      13,262
      Total noninterest income                 2,202       1,238

    Salaries and employee benefits             6,956       5,227
    Other noninterest expense                  6,359       4,133
      Total noninterest expense               13,315       9,360
      Income before taxes                      3,365       5,140
    Income taxes                               1,086       1,820
      Net income                            $  2,279    $  3,320

    Basic earnings per share               $    0.42   $    0.65
    Diluted earnings per share             $    0.40   $    0.63
    Average basic shares                   5,458,006   5,113,482
    Average fully diluted shares           5,750,527   5,287,917

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


                                            June 30,    June 30,  December 31,
                                              2009        2008        2008
                                          (Unaudited) (Unaudited)  (Audited)
    ASSETS
    Cash and due from banks                  $19,490     $27,049     $53,618
    Investment securities                    111,814      91,773     102,339
    Restricted equity securities               3,241       2,658       2,659
    Federal funds sold and other investments  76,978          72      19,300
    Mortgage loans held for sale               8,023       3,869       3,320
    Loans                                  1,111,744     836,520     968,233
    Reserve for loan losses                  (13,567)     (9,438)    (10,602)
    Net loans                              1,098,177     827,082     957,631
    Foreclosed real estate                     9,239       8,202      10,473
    Other assets                              15,381      12,405      12,932
    Total assets                          $1,342,343    $973,110  $1,162,272

    LIABILITIES
    Liabilities:
    Noninterest-bearing                     $139,169     $97,066    $121,459
    Interest-bearing                       1,067,316     750,359     915,860
    Total deposits                         1,206,485     847,425   1,037,319
    Borrowings                                40,073      46,622      35,087
    Interest payable                           1,071       1,336       1,280
    Other liabilities                          1,822       2,857       1,803
    Total liabilities                      1,249,451     898,240   1,075,489

    Stockholders' equity                      92,892      74,870      86,783
    Total liabilities and stockholders'
     equity                               $1,342,343    $973,110  $1,162,272

                                SERVISFIRST BANCSHARES, INC.
                                        Key Ratios


                                                     Three Months Ended
                                                   June 30,         March 31,
                                              2009        2008        2009
                                          (Unaudited) (Unaudited) (Unaudited)
    Return on average assets                   0.48%       0.74%       0.25%
    Return on average equity                   6.77%       9.31%       3.27%
    Net interest margin (fully tax equivalent) 3.39%       3.84%       3.21%
    Efficiency ratio                          58.41%      48.25%      64.55%


                                          Six Months Ended June 30,
                                              2009        2008
                                           (Unaudited)  (Unaudited)
    Return on average assets                   0.37%       0.73%
    Return on average equity                   5.10%       8.95%
    Net interest margin (fully tax equivalent) 3.30%       3.77%
    Efficiency ratio                          61.22%      51.94%


                                            6/30/2009   6/30/2008   3/31/2009
                                           (unaudited) (unaudited) (unaudited)
    Book value per share                    $  16.85    $  14.65    $  16.55
    Tangible book value per share           $  16.85    $  14.65    $  16.55
    % of reserve for loan losses to total
     loans                                      1.22%       1.13%       1.21%
    Nonperforming assets to total loans
     plus foreclosed real estate                2.18%       1.57%       2.25%

SOURCE ServisFirst Bancshares, Inc.