ServisFirst Bancshares, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LOANS

LOANS

6 Months Ended

Jun. 30, 2011

NOTE 5 – LOANS

The following table details the Company’s loans at June 30, 2011 and December 31, 2010:

	June 30, 2011			December 31, 2010

Commercial, financial and agricultural	$	634,367		$	536,620
Real estate - construction		159,564			172,055
Real estate - mortgage:
Owner-occupied commercial		303,204			270,767
1-4 family mortgage		209,439			199,236
Other mortgage		210,488			178,793
Subtotal: Real estate - mortgage		723,131			648,796
Consumer		43,912			37,347
Total Loans		1,560,974			1,394,818
Less: Allowance for loan losses		(19,516	)		(18,077	)
Net Loans	$	1,541,458		$	1,376,741

Commercial, financial and agricultural		40.64	%		38.47	%
Real estate - construction		10.22	%		12.34	%
Real estate - mortgage:
Owner-occupied commercial		19.42	%		19.41	%
1-4 family mortgage		13.42	%		14.28	%
Other mortgage		13.49	%		12.82	%
Subtotal: Real estate - mortgage		46.33	%		46.51	%
Consumer		2.81	%		2.68	%
Total Loans		100.00	%		100.00	%

Loans by credit quality indicator as of June 30, 2011 were as follows:

	Pass		Special Mention		Substandard		Doubtful		Total

Commercial, financial and agricultural	$	607,662	$	17,007	$	9,698	$	-	$	634,367
Real estate - construction		119,412		8,446		31,706		-		159,564
Real estate - mortgage:
Owner-occupied commercial		283,894		13,095		6,215		-		303,204
1-4 family mortgage		199,176		5,161		5,102		-		209,439
other mortgage		201,940		5,120		3,428		-		210,488
Total real estate mortgage		685,010		23,376		14,745		-		723,131
Consumer		43,130		-		782		-		43,912
Total	$	1,455,214	$	48,829	$	56,931	$	-	$	1,560,974

Loans by performance status as of June 30, 2011 were as follows:

	Performing		Nonperforming		Total

Commercial, financial and agricultural	$	633,311	$	1,056	$	634,367
Real estate - construction		142,028		17,536		159,564
Real estate - mortgage:
Owner-occupied commercial		301,923		1,281		303,204
1-4 family mortgage		208,561		878		209,439
other mortgage		210,488		-		210,488
Total real estate - mortgage		720,972		2,159		723,131
Consumer		43,538		374		43,912
Total	$	1,539,849	$	21,125	$	1,560,974

Loans by past-due status as of June 30, 2011 were as follows:

	Days Past Due Status (Accruing Loans)
	30-59		60-89		90+		Total		Nonaccrual		Current		Total Loans

Commercial, financial and agricultural	$	683	$	162	$	542	$	1,387	$	514	$	632,466	$	634,367
Real estate - construction		701		2,147		-		2,848		17,536		139,180		159,564
Real estate - mortgage:
Owner-occupied
commercial		1,603		-		-		1,603		1,281		300,320		303,204
1-4 family mortgage		1,357		-		-		1,357		878		207,204		209,439
Other mortgage		731		-		-		731		-		209,757		210,488
Total real estate - mortgage		3,691		-		-		3,691		2,159		717,281		723,131
Consumer		1		3		-		4		374		43,534		43,912
Total	$	5,076	$	2,312	$	542	$	7,930	$	20,583	$	1,532,461	$	1,560,974

The following table presents an analysis of the allowance for loan losses by portfolio segment as of June 30, 2011 and December 31, 2010. The total allowance for loan losses is disaggregated into those amounts associated with loans individually evaluated and those associated with loans collectively evaluated.

	Commercial, financial and agricultural			Real estate - construction			Real estate - mortgage			Consumer			Unallocated			Total
	Three Months Ended June 30, 2011
Allowance for loan losses:
Balance at March 31, 2011	$	6,226		$	6,285		$	2,523		$	603		$	3,589		$	19,226
Chargeoffs		(310	)		(1,021	)		(15	)		(5	)		-			(1,351	)
Recoveries		-			74			1			72			-			147
Provision		(107	)		1,130			676			(104	)		(101	)		1,494
Balance at June 30, 2011		5,809			6,468			3,185			566			3,488			19,516

	Six Months Ended June 30, 2011
Allowance for loan losses:
Balance at December 31, 2010	$	5,348		$	6,373		$	2,443		$	749		$	3,164		$	18,077
Chargeoffs		(860	)		(1,321	)		(15	)		(329	)		-			(2,525	)
Recoveries		-			165			1			73			-			239
Provision		1,321			1,251			756			73			324			3,725
Balance at June 30, 2011		5,809			6,468			3,185			566			3,488			19,516

	June 30, 2011
Individually evaluated for impairment	$	1,228		$	2,497		$	896		$	324		$	-		$	4,945
Collectively evaluated for impairment		4,581			3,971			2,289			242			3,488			14,571

Loans:
Ending balance	$	634,367		$	159,564		$	723,131		$	43,912					$	1,560,974
Individually evaluated for impairment		9,698			31,706			14,745			782						56,931
Collectively evaluated for impairment		624,669			127,858			708,386			43,130						1,504,043

	December 31, 2010
	Commercial, financial and agricultural			Real estate – construction			Real estate – mortgage			Consumer			Unallocated			Total

Allowance for loan losses		5,214			6,373			1,067			554			4,869			18,077

Individually evaluated for impairment	$	1,602		$	1,855		$	415		$	554		$	-		$	4,426
Collectively evaluated for impairment		3,612			4,518			652			-			4,869			13,651

Loans:
Ending balance	$	536,620		$	172,055		$	648,796		$	37,347					$	1,394,818
Individually evaluated for impairment		14,018			28,710			15,093			1,319						59,140
Collectively evaluated for impairment		522,602			143,345			633,703			36,028						1,335,678

The following tables present details of the Company’s impaired loans as of June 30, 2011 and December 31, 2010, respectively. Loans which have been fully charged off do not appear in the tables.

June 30, 2011

							For the three months ended June 30, 2011				For the six months ended June 30, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized in Period		Average Recorded Investment		Interest Income Recognized in Period

With no allowance recorded:
Commercial, financial and agricultural	$	1,790	$	2,563	$	-	$	1,870	$	21	$	1,829	$	40
Real estate - construction		18,631		19,124		-		18,823		107		18,975		215
Real estate - mortgage:
Owner-occupied commercial		3,006		3,156		-		3,017		39		3,026		92
1-4 family mortgage		503		503		-		503		3		504		7
Other mortgage		2,177		2,177		-		2,130		29		2,025		60
Total real estate - mortgage		5,686		5,836		-		5,650		71		5,555		159
Consumer		-		-		-		-		-		-		-
Total with no allowance recorded		26,107		27,523		-		26,343		199		26,359		414

With an allowance recorded:
Commercial, financial and agricultural		5,999		5,999		1,228		6,720		92		6,886		174
Real estate - construction		12,278		12,573		2,497		12,559		33		12,849		104
Real estate - mortgage:
Owner-occupied commercial		2,858		2,858		84		2,822		51		2,811		69
1-4 family mortgage		3,608		3,608		812		3,705		58		3,738		77
Other mortgage		340		340		-		342		7		341		12
Total real estate - mortgage		6,806		6,806		896		6,869		116		6,890		158
Consumer		547		567		324		547		1		631		3
Total with allowance recorded		25,630		25,945		4,945		26,695		242		27,256		439

Total Impaired Loans:
Commercial, financial and agricultural		7,789		8,562		1,228		8,590		113		8,715		214
Real estate - construction		30,909		31,697		2,497		31,382		140		31,824		319
Real estate - mortgage:
Owner-occupied commercial		5,864		6,014		84		5,839		90		5,837		161
1-4 family mortgage		4,111		4,111		812		4,208		61		4,242		84
Other mortgage		2,517		2,517		-		2,472		36		2,366		72
Total real estate - mortgage		12,492		12,642		896		12,519		187		12,445		317
Consumer		547		567		324		547		1		631		3
Total impaired loans	$	51,737	$	53,468	$	4,945	$	53,038	$	441	$	53,615	$	853

December 31, 2010
	Recorded Investment		Unpaid Principal Balance		Related Allowance

With no allowance recorded:
Commercial, financial and agricultural	$	2,345	$	2,930	$	-
Real estate - construction		10,532		12,705		-
Real estate - mortgage:
Owner-occupied commercial		1,614		1,801		-
1-4 family mortgage		511		511		-
Other mortgage		1,817		1,817		-
Total real estate - mortgage		3,942		4,129		-
Consumer		289		289		-
Total with no allowance recorded		17,108		20,053		-

With an allowance recorded:
Commercial, financial and agricultural		9,190		9,190		1,602
Real estate - construction		18,178		18,428		1,855
Real estate - mortgage:
Owner-occupied commercial		3,373		3,373		55
1-4 family mortgage		2,995		2,995		360
Other mortgage		-		-		-
Total real estate - mortgage		6,368		6,368		415
Consumer		704		704		554
Total with allowance recorded		34,440		34,690		4,426

Total Impaired Loans:
Commercial, financial and agricultural		11,535		12,120		1,602
Real estate - construction		28,710		31,133		1,855
Real estate - mortgage:
Owner-occupied commercial		4,988		5,174		55
1-4 family mortgage		3,506		3,506		360
Other mortgage		1,817		1,817		-
Total real estate - mortgage		10,311		10,497		415
Consumer		993		993		554
Total impaired loans	$	51,549	$	54,743	$	4,426

At June 30, 2011 and December 31, 2010, loans classified as troubled debt restructurings (“TDRs”) totaled $5.1 million and $2.4 million, respectively. At June 30, 2011, the Company had a related allowance for loan losses of $465,000 allocated to these TDRs, compared to $486,000 at December 31, 2010. All loans classified as TDRs as of June 30, 2011 are performing as agreed under the terms of their restructured plans.

- Definition

The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5066-111524

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Article 9

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5162-111524

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
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-Subparagraph (SX 210.4-08.(k))
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
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-Section S99
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-Subparagraph (SX 210.5-02.3,4)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5074-111524

+ Details