Quarterly report pursuant to Section 13 or 15(d)

Note 1 - General

v3.10.0.1
Note 1 - General
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
NOTE
1
- GENERAL
 
The accompanying consolidated financial statements in this report have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, including Regulation S-
X
and the instructions for Form
10
-Q, and have
not
been audited. These consolidated financial statements do
not
include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments necessary to present fairly the consolidated financial position and the consolidated results of operations for the interim periods have been made. All such adjustments are of a normal recurring nature. The consolidated results of operations are
not
necessarily indicative of the consolidated results of operations which ServisFirst Bancshares, Inc. (the “Company”) and its consolidated subsidiaries, including ServisFirst Bank (the “Bank”),
may
achieve for future interim periods or the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Form
10
-K for the year ended
December 31, 2017.
 
All reported amounts are in thousands except share and per share data.
 
Revenue Recognition
 
Accounting Standards Codification (“ASC”) Topic
606,
Revenue from Contracts with Customers (“ASC
606”
)
, provides guidance for reporting revenue from the entity’s contracts to provide goods or services to customers. The guidance requires recognition of revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.
 
The majority of our revenue-generating transactions are excluded from the scope of ASC
606,
including revenue generated from financial instruments, such as securities and loans. Revenue-generating transactions that are within the scope of ASC
606,
classified within non-interest income, are described as follows:
 
 
Deposit account service charges – represent service fees for monthly activity and maintenance on customer accounts. Attributes can be transaction-based, item-based or time-based. Revenue is recognized when our performance obligation is completed which is generally monthly for maintenance services or when a transaction is processed. Payment for such performance obligations are generally received at the time the performance obligations are satisfied.
 
 
Credit card rewards program membership fees – represent memberships in our credit card rewards program and are paid annually by our cardholders at the time they open an account and on each anniversary. Revenue is recognized ratably over the membership period.
 
Other non-interest income primarily includes income on bank owned life insurance contracts, letter of credit fees and gains on sale of loans held for sale,
none
of which are within the scope of ASC
606.