EXHIBIT 99.1

PRESS RELEASE ISSUED JULY 18, 2011

 
SERVISFIRST BANCSHARES, INC.
Announces Record Second Quarter 2011

Birmingham, Ala. – (PR Newswire) – July 18, 2011 – ServisFirst Bancshares, Inc. today reported record earnings for the quarter and six months ending June 30, 2011.
 

Second Quarter 2011 Highlights:

§
Assets exceed $2 billion
§
Second quarter record net income of $5.8 million, a 45% increase year/year
§
Basic earnings per share of $1.88 for the first six months of 2011
§
Closed Pensacola common equity raise at $30 per share, for total proceeds of $10.2 million, and $40 million Small Business Lending Fund preferred stock sale in second quarter
§
Tier 2 Capital over $229 million
§
23 consecutive quarters of profitability

Tom Broughton, CEO and President, said, “We continue to focus on delivering high quality service to our clients, and, with our clients’ help, are gratified to have grown to over $2 billion in assets in the past six years.” Bud Foshee, CFO, stated, “Our focus in solid banking fundamentals has resulted in our ranking as one of the top performing community banks in the U.S. according to SNL Financial.”

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, Alabama; Huntsville, Alabama; Montgomery, Alabama; Dothan, Alabama; and Pensacola, Florida.
 

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


 
2
 

SERVISFIRST BANCSHARES, INC.
  
CONSOLIDATED STATEMENTS OF INCOME
  
(In thousands, except shares and per share data)
  
 
 
   
Three Months Ended
  
   
June 30,
          
March 31,
  
   
2011
    
2010
    
2011
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
  
Total interest income
   $ 22,080     $ 18,996     $ 20,961  
Total interest expense
     4,032       3,688       3,985  
Net interest income before provision
     18,048       15,308       16,976  
Provision for loan losses
     1,494       2,537       2,231  
Net interest income after provision for loan losses
     16,554       12,771       14,745  
Total noninterest income
     1,782       1,004       1,271  
                         
Salaries and employee benefits
     5,026       3,147       4,214  
Other noninterest expense
     4,343       4,414       4,383  
Total noninterest expense
     9,369       7,561       8,597  
Income before taxes
     8,967       6,214       7,419  
Income taxes
     3,122       2,193       2,548  
Net income
   $ 5,845     $ 4,021     $ 4,871  
                         
Basic earnings per share
   $ 1.02     $ 0.73     $ 0.88  
Diluted earnings per share
   $ 0.89     $ 0.65     $ 0.77  
Average basic shares
     5,708,871       5,513,482       5,527,482  
Average fully diluted shares
     6,705,953       6,399,929       6,514,103  
                         
   
Six Months Ended June 30,
          
    2011     2010          
   
(Unaudited)
    
(Unaudited)
          
Total interest income
   $ 43,041     $ 37,498          
Total interest expense
     8,017       7,284          
Net interest income before provision
     35,024       30,214          
Provision for loan losses
     3,725       5,075          
Net interest income after provision for loan losses
     31,299       25,139          
Total noninterest income
     3,053       2,136          
                         
Salaries and employee benefits
     9,240       6,629          
Other noninterest expense
     8,726       8,364          
Total noninterest expense
     17,966       14,993          
Income before taxes
     16,386       12,282          
Income taxes
     5,670       4,248          
Net income
   $ 10,716     $ 8,034          
                         
Basic earnings per share
   $ 1.88     $ 1.46          
Diluted earnings per share
   $ 1.65     $ 1.33          
Average basic shares
     5,694,871       5,513,482          
Average fully diluted shares
     6,657,359       6,159,841          
 
 
3
 

SERVISFIRST BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
 
   
June 30, 2011
    
June 30, 2010
    
December 31, 2010
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
ASSETS
                  
Cash and due from banks
   $ 102,914     $ 127,102     $ 231,632  
Investment securities
     244,566       236,467       282,193  
Restricted equity securities
     3,899       3,510       3,510  
Federal funds sold and other investments
     94,541       148       346  
Mortgage loans held for sale
     4,092       4,462       7,875  
                         
Loans
     1,560,974       1,288,410       1,394,818  
Reserve for loan losses
     (19,516 )     (15,713 )     (18,077 )
Net loans
     1,541,458       1,272,697       1,376,741  
Foreclosed real estate
     6,931       10,773       6,966  
Other assets
     26,196       26,725       25,903  
Total assets
   $ 2,024,597     $ 1,681,884     $ 1,935,166  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                        
Liabilities:
                        
Noninterest-bearing
   $ 283,968     $ 188,657     $ 250,490  
Interest-bearing
     1,519,906       1,326,247       1,508,226  
Total deposits
     1,803,874       1,514,904       1,758,716  
Borrowings
     35,435       55,278       55,357  
Interest payable
     983       887       898  
Other liabilities
     3,104       1,769       3,095  
Total liabilities
     1,843,396       1,572,838       1,818,066  
                         
Stockholders' equity
     181,201       109,046       117,100  
Total liabilities and stockholders' equity
   $ 2,024,597     $ 1,681,884     $ 1,935,166  
 
 
4
 

SERVISFIRST BANCSHARES, INC.
Key Ratios
 
 
   
Three Months Ended
  
   
June 30,
  
March 31,
  
   
2011
    
2010
    
2011
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
  
Return on average assets
     1.22 %     1.02 %     1.06 %
Return on average equity
     17.30 %     15.34 %     16.50 %
Net interest margin (fully tax equivalent)
     3.93 %     4.07 %     3.86 %
Efficiency ratio
     47.25 %     46.35 %     47.11 %
                         
                         
   
Six Months Ended June 30,
          
    2011      2010          
   
(Unaudited)
    
(Unaudited)
          
Return on average assets
     1.14 %     1.04 %        
Return on average equity
     16.56 %     15.77 %        
Net interest margin (fully tax equivalent)
     3.90 %     4.11 %        
Efficiency ratio
     47.18 %     46.35 %        
                         
                         
   
June 30,
  
March 31,
  
    2011     2010     2011  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
  
Book value per share
   $ 24.05     $ 19.78     $ 22.15  
Tangible book value per share
   $ 24.05     $ 19.78     $ 22.15  
% of reserve for loan losses to total loans
     1.25 %     1.22 %     1.31 %
Nonperforming assets to total loans plus foreclosed real estate
     1.79 %     1.45 %     1.98 %
 

 
5