EXHIBIT 99.1

PRESS RELEASE ISSUED OCTOBER 17, 2011
 
SERVISFIRST BANCSHARES, INC.
Announces Record Third Quarter 2011

Birmingham, Ala. – (PR Newswire) – October 17, 2011 – ServisFirst Bancshares, Inc. today announced record earnings for the quarter and nine months ending September 30, 2011.

Third Quarter 2011 Highlights:

§
Nine-month record net income of $16.8 million, a 31% increase year/year, and third-quarter income of $6.0 million, a 25% increase year/year
§
Basic earnings per common share of $1.03 for the quarter and $2.93 for the nine months
§
Ranked 25th best in efficiency ratio ranking in the United States by American Banker
§
Correspondent Division reached profitability during the third quarter

“We are pleased to announce record net income for the quarter and the nine months” said Bud Foshee, CFO. Tom Broughton, CEO and President, stated, “Our strong balance sheet and customer service continues to attract new clients to the bank. Loan demand has rebounded over the past two quarters, and total loans grew at a 34% annualized rate during the third quarter.”

ABOUT SERVISFIRST:
ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares provides business and personal financial services through locations in Birmingham, Huntsville, Montgomery and Dothan, Alabama  and Pensacola, Florida.
 
ServisFirst Bancshares 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 and tornados, 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,
 
   
2011
   
2010
   
2011
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
Total interest income
  $ 23,312     $ 19,959     $ 22,080  
Total interest expense
    4,093       3,972       4,032  
Net interest income before provision
    19,219       15,987       18,048  
Provision for loan losses
    2,740       2,537       1,494  
Net interest income after provision for loan losses
    16,479       13,450       16,554  
Total noninterest income
    1,808       1,348       1,782  
      -       -       -  
Salaries and employee benefits
    4,723       3,547       5,026  
Other noninterest expense
    4,109       3,920       4,343  
Total noninterest expense
    8,832       7,467       9,369  
Income before taxes
    9,455       7,331       8,967  
Income taxes
    3,320       2,532       3,122  
Net income
    6,135       4,799       5,845  
Preferred stock dividends
    100       -       -  
Net income available to common stockholders
  $ 6,035     $ 4,799     $ 5,845  
                         
Basic earnings per common share
  $ 1.03     $ 0.87     $ 1.02  
Diluted earnings per common share  
  $ 0.90     $ 0.77     $ 0.89  
Average basic common shares  
    5,886,178       5,515,384       5,708,871  
Average fully diluted common shares  
    6,882,809       6,417,947       6,705,953  

   
Nine Months Ended
September 30,
       
   
2011
   
2010
       
   
(Unaudited)
   
(Unaudited)
       
Total interest income
  $ 66,353     $ 57,457          
Total interest expense
    12,110       11,256          
Net interest income before provision
    54,243       46,201          
Provision for loan losses
    6,465       7,612          
Net interest income after provision for loan losses
    47,778       38,589          
Total noninterest income
    4,861       3,484          
      -       -          
Salaries and employee benefits
    13,963       10,176          
Other noninterest expense
    12,835       12,284          
Total noninterest expense
    26,798       22,460          
Income before taxes
    25,841       19,613          
Income taxes
    8,990       6,780          
Net income
    16,851       12,833          
Preferred stock dividends
    100       -          
Net income available to common stockholders
  $ 16,751     $ 12,833          
                         
Basic earnings per common share
  $ 2.93     $ 2.33          
Diluted earnings per common share  
  $ 2.58     $ 2.11          
Average basic common shares  
    5,709,334       5,514,123          
Average fully diluted common shares  
    6,671,913       6,249,500          
 
 
 

 

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

   
September 30, 2011
   
September 30, 2010
   
December 31, 2010
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
ASSETS
                 
Cash and due from banks
  $ 92,399     $ 149,841     $ 231,632  
Investment securities
    313,146       251,838       282,193  
Restricted equity securities
    3,708       3,510       3,510  
Federal funds sold and other investments
    91,315       2,213       346  
Mortgage loans held for sale
    9,114       8,708       7,875  
Loans
    1,695,476       1,345,502       1,394,818  
Reserve for loan losses
    (21,466 )     (16,903 )     (18,077 )
Net loans
    1,674,010       1,328,599       1,376,741  
Foreclosed real estate
    10,134       8,170       6,966  
Other assets
    63,504       23,645       25,903  
Total assets
    2,257,330       1,776,524       1,935,166  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                       
Liabilities:
                       
Noninterest-bearing
    382,095       224,537       250,490  
Interest-bearing
    1,629,186       1,377,020       1,508,226  
Total deposits
    2,011,281       1,601,557       1,758,716  
Borrowings
    51,863       55,317       55,357  
Interest payable
    1,043       914       898  
Other liabilities
    3,670       2,559       3,095  
Total liabilities
    2,067,857       1,660,347       1,818,066  
Stockholders' equity
    189,473       116,177       117,100  
Total liabilities and stockholders' equity
  $ 2,257,330     $ 1,776,524     $ 1,935,166  
 
 
 

 

SERVISFIRST BANCSHARES, INC.
Key Ratios

   
Three Months Ended
 
   
September 30,
   
June 30,
 
   
2011
   
2010
   
2011
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
Return on average assets
    1.11 %     1.10 %     1.22 %
Return on average equity
    16.53 %     16.86 %     17.30 %
Net interest margin (fully tax equivalent)
    3.67 %     3.83 %     3.93 %
Efficiency ratio
    42.00 %     43.08 %     47.24 %


   
Nine Months Ended September 30,
       
   
2011
   
2010
       
   
(Unaudited)
   
(Unaudited)
         
Return on average assets
    1.13 %     1.06 %        
Return on average equity
    16.89 %     16.12 %        
Net interest margin (fully tax equivalent)
    3.81 %     4.01 %        
Efficiency ratio
    45.34 %     45.21 %        


   
September 30,
   
June 30,
 
   
2011
   
2010
   
2011
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
Book value per common share
  $ 25.38     $ 21.05     $ 24.05  
Tangible book value per common share
  $ 25.38     $ 21.05     $ 24.05  
% of reserve for loan losses to total loans
    1.27 %     1.26 %     1.25 %
Nonperforming assets to total loans
                       
plus foreclosed real estate
    1.67 %     1.67 %     1.79 %