SERVISFIRST BANCSHARES, INC.
REPORTS SECOND QUARTER 2009 EARNINGS

Birmingham, Ala. – July 20, 2009 – /PR Newswire/ 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,
2009
    
June 30,
2008
    
December 31,
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 %