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

Quarterly report pursuant to Section 13 or 15(d)

LOANS (Tables)

LOANS (Tables)

9 Months Ended

Sep. 30, 2014

The following table details the Company’s loans at September 30, 2014 and December 31, 2013:

	September 30,			December 31,
	2014			2013
	(Dollars In Thousands)
Commercial, financial and agricultural	$	1,382,607		$	1,278,649
Real estate - construction		194,506			151,868
Real estate - mortgage:
Owner-occupied commercial		773,432			710,372
1-4 family mortgage		314,778			278,621
Other mortgage		443,245			391,396
Subtotal: Real estate - mortgage		1,531,455			1,380,389
Consumer		51,204			47,962
Total Loans		3,159,772			2,858,868
Less: Allowance for loan losses		(34,442)			(30,663)
Net Loans	$	3,125,330		$	2,828,205

Commercial, financial and agricultural		43.76	%		44.73	%
Real estate - construction		6.15	%		5.31	%
Real estate - mortgage:
Owner-occupied commercial		24.48	%		24.85	%
1-4 family mortgage		9.96	%		9.74	%
Other mortgage		14.03	%		13.69	%
Subtotal: Real estate - mortgage		48.47	%		48.28	%
Consumer		1.62	%		1.68	%
Total Loans		100.00	%		100.00	%

Loans By Credit Quality Indicator

Loans by credit quality indicator as of September 30, 2014 and December 31, 2013 were as follows:

			Special
September 30, 2014	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,353,330	$	25,648	$	3,629	$	-	$	1,382,607
Real estate - construction		181,357		5,333		7,816		-		194,506
Real estate - mortgage:
Owner-occupied commercial		764,902		6,898		1,632		-		773,432
1-4 family mortgage		304,005		3,278		7,495		-		314,778
Other mortgage		428,997		8,790		5,458		-		443,245
Total real estate mortgage		1,497,904		18,966		14,585		-		1,531,455
Consumer		50,485		46		673		-		51,204
Total	$	3,083,076	$	49,993	$	26,703	$	-	$	3,159,772

			Special
December 31, 2013	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,238,109	$	34,883	$	5,657	$	-	$	1,278,649
Real estate - construction		139,239		3,392		9,237		-		151,868
Real estate - mortgage:
Owner-occupied commercial		696,687		11,545		2,140		-		710,372
1-4 family mortgage		265,019		1,253		12,349		-		278,621
Other mortgage		379,419		8,179		3,798		-		391,396
Total real estate mortgage		1,341,125		20,977		18,287		-		1,380,389
Consumer		47,243		3		716		-		47,962
Total	$	2,765,716	$	59,255	$	33,897	$	-	$	2,858,868

Loans By Performance Status

Loans by performance status as of September 30, 2014 and December 31, 2013 were as follows:

September 30, 2014	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,381,648	$	959	$	1,382,607
Real estate - construction		187,539		6,967		194,506
Real estate - mortgage:
Owner-occupied commercial		772,339		1,093		773,432
1-4 family mortgage		308,681		6,097		314,778
Other mortgage		441,766		1,479		443,245
Total real estate mortgage		1,522,786		8,669		1,531,455
Consumer		50,531		673		51,204
Total	$	3,142,504	$	17,268	$	3,159,772

December 31, 2013	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,276,935	$	1,714	$	1,278,649
Real estate - construction		148,118		3,750		151,868
Real estate - mortgage:
Owner-occupied commercial		708,937		1,435		710,372
1-4 family mortgage		276,725		1,896		278,621
Other mortgage		391,153		243		391,396
Total real estate mortgage		1,376,815		3,574		1,380,389
Consumer		47,264		698		47,962
Total	$	2,849,132	$	9,736	$	2,858,868

Loans By Past Due Status

Loans by past due status as of September 30, 2014 and December 31, 2013 were as follows:

September 30, 2014	Past Due Status (Accruing Loans)
							Total Past
	30-59 Days		60-89 Days		90+ Days		Due		Non-Accrual		Current		Total Loans
	(In Thousands)
Commercial, financial and agricultural	$	-	$	117	$	242	$	359	$	717	$	1,381,531	$	1,382,607
Real estate - construction		181		-		-		181		6,967		187,358		194,506
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		1,093		772,339		773,432
1-4 family mortgage		105		170		948		1,223		5,149		308,406		314,778
Other mortgage		-		-		-		-		1,479		441,766		443,245
Total real estate - mortgage		105		170		948		1,223		7,721		1,522,511		1,531,455
Consumer		7		61		-		68		673		50,463		51,204
Total	$	293	$	348	$	1,190	$	1,831	$	16,078	$	3,141,863	$	3,159,772

December 31, 2013	Past Due Status (Accruing Loans)
							Total Past
	30-59 Days		60-89 Days		90+ Days		Due		Non-Accrual		Current		Total Loans
	(In Thousands)
Commercial, financial and agricultural	$	73	$	-	$	-	$	73	$	1,714	$	1,276,862	$	1,278,649
Real estate - construction		-		-		-		-		3,750		148,118		151,868
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		1,435		708,937		710,372
1-4 family mortgage		177		-		19		196		1,877		276,548		278,621
Other mortgage		-		-		-		-		243		391,153		391,396
Total real estate - mortgage		177		-		19		196		3,555		1,376,638		1,380,389
Consumer		89		97		96		282		602		47,078		47,962
Total	$	339	$	97	$	115	$	551	$	9,621	$	2,848,696	$	2,858,868

Changes In Allowance For Loan Losses Segregated By Loan Type

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		Real estate -		Real estate -
	agricultural		construction		mortgage		Consumer		Total
	(In Thousands)
	Three Months Ended September 30, 2014
Allowance for loan losses:
Balance at June 30, 2014	$	13,637	$	6,734	$	11,523	$	1,090	$	32,984
Charge-offs		(531)		(610)		(149)		(131)		(1,421)
Recoveries		-		97		14		20		131
Provision		1,364		461		905		18		2,748
Balance at September 30, 2014	$	14,470	$	6,682	$	12,293	$	997	$	34,442

	Three Months Ended September 30, 2013
Allowance for loan losses:
Balance at June 30, 2013	$	13,794	$	5,788	$	8,856	$	319	$	28,757
Charge-offs		(849)		(394)		(1,746)		(42)		(3,031)
Recoveries		13		124		24		6		167
Provision		910		309		1,248		567		3,034
Balance at September 30, 2013	$	13,868	$	5,827	$	8,382	$	850	$	28,927

	Nine Months Ended September 30, 2014
Allowance for loan losses:
Balance at December 31, 2013	$	13,576	$	6,078	$	10,065	$	944	$	30,663
Charge-offs		(1,895)		(958)		(1,043)		(207)		(4,103)
Recoveries		46		285		28		23		382
Provision		2,743		1,277		3,243		237		7,500
Balance at September 30, 2014	$	14,470	$	6,682	$	12,293	$	997	$	34,442

	Nine Months Ended September 30, 2013
Allowance for loan losses:
Balance at December 31, 2012	$	11,061	$	6,907	$	7,964	$	326	$	26,258
Charge-offs		(1,838)		(4,271)		(2,016)		(172)		(8,297)
Recoveries		50		226		28		10		314
Provision		4,595		2,965		2,406		686		10,652
Balance at September 30, 2013	$	13,868	$	5,827	$	8,382	$	850	$	28,927

	As of September 30, 2014
Allowance for loan losses:
Individually Evaluated for Impairment		1,229		1,764		2,660		673		6,326
Collectively Evaluated for Impairment		13,241		4,918		9,633		324		28,116

Loans:
Ending Balance	$	1,382,607	$	194,506	$	1,531,455	$	51,204	$	3,159,772
Individually Evaluated for Impairment		3,629		7,816		14,585		673		26,703
Collectively Evaluated for Impairment		1,378,978		186,690		1,516,870		50,531		3,133,069

	As of December 31, 2013
Allowance for loan losses:
Individually Evaluated for Impairment		1,992		1,597		1,982		699		6,270
Collectively Evaluated for Impairment		11,584		4,481		8,083		245		24,393

Loans:
Ending Balance	$	1,278,649	$	151,868	$	1,380,389	$	47,962	$	2,858,868
Individually Evaluated for Impairment		3,827		9,238		18,202		699		31,966
Collectively Evaluated for Impairment		1,274,822		142,630		1,362,187		47,263		2,826,902

Details Of Company's Impaired Loans

The following table presents details of the Company’s impaired loans as of September 30, 2014 and December 31, 2013, respectively. Loans which have been fully charged off do not appear in the tables.

							For the three months				For the nine months
							ended September 30,				ended September 30,
	September 30, 2014						2014				2014
									Interest				Interest
			Unpaid				Average		Income		Average		Income
	Recorded		Principal		Related		Recorded		Recognized		Recorded		Recognized
	Investment		Balance		Allowance		Investment		in Period		Investment		in Period
	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,700	$	1,700	$	-	$	1,796	$	26	$	1,927	$	83
Real estate - construction		2,054		2,054		-		2,016		11		1,910		34
Real estate - mortgage:
Owner-occupied commercial		216		216		-		219		2		229		7
1-4 family mortgage		1,199		1,199		-		1,199		15		1,199		45
Other mortgage		2,823		2,823		-		2,823		34		2,827		118
Total real estate - mortgage		4,238		4,238		-		4,241		51		4,255		170
Consumer		-		-		-		-		-		-		-
Total with no allowance recorded		7,992		7,992		-		8,053		88		8,092		287

With an allowance recorded:
Commercial, financial and agricultural		1,929		1,929		1,229		1,933		16		1,967		70
Real estate - construction		5,762		6,643		1,764		6,130		-		6,089		20
Real estate - mortgage:
Owner-occupied commercial		1,416		1,416		287		1,440		9		1,475		29
1-4 family mortgage		6,296		6,296		1,591		6,354		29		7,222		132
Other mortgage		2,635		2,635		782		2,548		20		2,813		64
Total real estate - mortgage		10,347		10,347		2,660		10,342		58		11,510		225
Consumer		673		673		673		677		1		684		-
Total with allowance recorded		18,711		19,592		6,326		19,082		75		20,250		315

Total Impaired Loans:
Commercial, financial and agricultural		3,629		3,629		1,229		3,729		42		3,894		153
Real estate - construction		7,816		8,697		1,764		8,146		11		7,999		54
Real estate - mortgage:
Owner-occupied commercial		1,632		1,632		287		1,659		11		1,704		36
1-4 family mortgage		7,495		7,495		1,591		7,553		44		8,421		177
Other mortgage		5,458		5,458		782		5,371		54		5,640		182
Total real estate - mortgage		14,585		14,585		2,660		14,583		109		15,765		395
Consumer		673		673		673		677		1		684		-
Total impaired loans	$	26,703	$	27,584	$	6,326	$	27,135	$	163	$	28,342	$	602

December 31, 2013

			Unpaid				Average		Interest Income
	Recorded		Principal		Related		Recorded		Recognized in
	Investment		Balance		Allowance		Investment		Period
	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,210	$	1,210	$	-	$	1,196	$	63
Real estate - construction		1,967		2,405		-		1,363		32
Real estate - mortgage:
Owner-occupied commercial		577		577		-		603		32
1-4 family mortgage		1,198		1,198		-		1,200		55
Other mortgage		2,311		2,311		-		1,901		123
Total real estate - mortgage		4,086		4,086		-		3,704		210
Consumer		-		-		-		-		-
Total with no allowance recorded		7,263		7,701		-		6,263		305

With an allowance recorded:
Commercial, financial and agricultural		2,618		2,958		1,992		2,844		98
Real estate - construction		7,270		7,750		1,597		6,564		200
Real estate - mortgage:
Owner-occupied commercial		1,509		1,509		620		1,573		38
1-4 family mortgage		11,120		11,120		1,210		10,743		342
Other mortgage		1,487		1,586		152		1,873		96
Total real estate - mortgage		14,116		14,215		1,982		14,189		476
Consumer		699		699		699		790		28
Total with allowance recorded		24,703		25,622		6,270		24,387		802

Total Impaired Loans:
Commercial, financial and agricultural		3,828		4,168		1,992		4,040		161
Real estate - construction		9,237		10,155		1,597		7,927		232
Real estate - mortgage:
Owner-occupied commercial		2,086		2,086		620		2,176		70
1-4 family mortgage		12,318		12,318		1,210		11,943		397
Other mortgage		3,798		3,897		152		3,774		219
Total real estate - mortgage		18,202		18,301		1,982		17,893		686
Consumer		699		699		699		790		28
Total impaired loans	$	31,966	$	33,323	$	6,270	$	30,650	$	1,107

Analysis Of Troubled Debt Restructuring

The tables include modifications made to new TDRs, as well as renewals of existing TDRs.

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
	(In Thousands)
Troubled Debt Restructurings
Commercial, financial and agricultural		1	$	390	$	390		2	$	889	$	889
Real estate - construction		-		-		-		-		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		-		-
1-4 family mortgage		1		4,449		4,449		1		4,449		4,449
Other mortgage		1		275		275		2		1,684		1,684
Total real estate mortgage		2		4,724		4,724		3		6,133		6,133
Consumer		-		-		-		-		-		-
		3	$	5,114	$	5,114		5	$	7,022	$	7,022

	Three Months Ended September 30, 2013						Nine Months Ended September 30, 2013
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
	(In Thousands)
Troubled Debt Restructurings
Commercial, financial and agricultural		1	$	412	$	412		2	$	911	$	911
Real estate - construction		-		-		-		-		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		-		-
1-4 family mortgage		-		-		-		1		4,925		4,925
Other mortgage		1		294		294		1		294		294
Total real estate mortgage		1		294		294		2		5,219		5,219
Consumer		-		-		-		-		-		-
		2	$	706	$	706		4	$	6,130	$	6,130

The following table presents TDRs by portfolio segment which defaulted during the three and nine months ended September 30, 2014 and 2013, and which were modified in the previous twelve months (i.e., the twelve months prior to default). For purposes of this disclosure default is defined as 90 days past due and still accruing or placement on nonaccrual status.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(In thousands)
Defaulted during the period, where modified in a TDR twelve months prior to default
Commercial, financial and agricultural	$	-	$	-	$	-	$	-
Real estate - construction		-		-		-		-
Real estate - mortgage:
Owner-occupied commercial		-		3,121		-		3,121
1-4 family mortgage		4,313		-		4,313		-
Other mortgage		-		-		-		-
Total real estate mortgage		4,313		3,121		4,313		3,121
Consumer		-		-		-		-
	$	4,313	$	3,121	$	4,313	$	3,121