ServisFirst Bancshares, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LOANS (Tables)

LOANS (Tables)

12 Months Ended

Dec. 31, 2014

The composition of loans at December 31, 2014 and 2013 is summarized as follows:

	December 31,
	2014		2013
	(In Thousands)
Commercial, financial and agricultural	$	1,495,092	$	1,278,649
Real estate - construction		208,769		151,868
Real estate - mortgage:
Owner-occupied commercial		793,917		710,372
1-4 family mortgage		333,455		278,621
Other mortgage		471,363		391,396
Total real estate - mortgage		1,598,735		1,380,389
Consumer		57,262		47,962
Total Loans		3,359,858		2,858,868
Less: Allowance for loan losses		(35,629)		(30,663)
Net Loans	$	3,324,229	$	2,828,205

Schedule Of Allowance For Loan Losses

Changes in the allowance for loan losses during the years ended December 31, 2014, 2013 and 2012, respectively are as follows:

	Years Ended December 31,
	2014		2013		2012
			(In Thousands)
Balance, beginning of year	$	30,663	$	26,258	$	22,030
Loans charged off		(5,771)		(9,012)		(5,755)
Recoveries		478		409		883
Provision for loan losses		10,259		13,008		9,100
Balance, end of year	$	35,629	$	30,663	$	26,258

Changes In Allowance For Loan Losses Segregated By Loan Type

Changes in the allowance for loan losses, segregated by loan type, during the years ended December 31, 2014 and 2013, respectively, are as follows:

	Commercial,
	financial and		Real estate -		Real estate -
	agricultural		construction		mortgage		Consumer		Total
					(In Thousands)
	Year Ended December 31, 2014
Allowance for loan losses:
Balance at December 31, 2013	$	13,576	$	6,078	$	10,065	$	944	$	30,663
Charge-offs		(2,311)		(1,267)		(1,965)		(228)		(5,771)
Recoveries		48		322		74		34		478
Provision		4,766		1,262		3,938		293		10,259
Balance at December 31, 2014	$	16,079	$	6,395	$	12,112	$	1,043	$	35,629

	December 31, 2014
Individually Evaluated for Impairment	$	1,344	$	1,448	$	1,636	$	666	$	5,094
Collectively Evaluated for Impairment		14,735		4,947		10,476		377		30,535

Loans:
Ending Balance	$	1,495,092	$	208,769	$	1,598,735	$	57,262	$	3,359,858
Individually Evaluated for Impairment		10,350		5,680		10,029		666		26,725
Collectively Evaluated for Impairment		1,484,742		203,089		1,588,706		56,596		3,333,133

	Year Ended December 31, 2013
Allowance for loan losses:
Balance at December 31, 2012	$	11,061	$	6,907	$	7,964	$	326	$	26,258
Charge-offs		(1,932)		(4,829)		(2,041)		(210)		(9,012)
Recoveries		66		296		36		11		409
Provision		4,381		3,704		4,106		817		13,008
Balance at December 31, 2013	$	13,576	$	6,078	$	10,065	$	944	$	30,663

	December 31, 2013
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

Loans By Credit Quality Indicator

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

			Special
December 31, 2014	Pass		Mention		Substandard		Doubtful		Total
					(In Thousands)
Commercial, financial and agricultural	$	1,459,356	$	25,416	$	10,320	$	-	$	1,495,092
Real estate - construction		197,727		5,332		5,710		-		208,769
Real estate - mortgage:
Owner-occupied commercial		784,492		6,848		2,577		-		793,917
1-4 family mortgage		326,316		4,253		2,886		-		333,455
Other mortgage		457,782		9,015		4,566		-		471,363
Total real estate mortgage		1,568,590		20,116		10,029		-		1,598,735
Consumer		56,559		37		666		-		57,262
Total	$	3,282,232	$	50,901	$	26,725	$	-	$	3,359,858

			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 December 31, 2014 and 2013 are as follows:

December 31, 2014	Performing		Nonperforming		Total
			(In Thousands)
Commercial, financial and agricultural	$	1,493,995	$	1,097	$	1,495,092
Real estate - construction		203,720		5,049		208,769
Real estate - mortgage:
Owner-occupied commercial		793,234		683		793,917
1-4 family mortgage		331,859		1,596		333,455
Other mortgage		470,404		959		471,363
Total real estate mortgage		1,595,497		3,238		1,598,735
Consumer		56,596		666		57,262
Total	$	3,349,808	$	10,050	$	3,359,858

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 December 31, 2014 and 2013 are as follows:

December 31, 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	$	1,388	$	3,490	$	925	$	5,803	$	172	$	1,489,117	$	1,495,092
Real estate - construction		-		-		-		-		5,049		203,720		208,769
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		683		793,234		793,917
1-4 family mortgage		14		-		-		14		1,596		331,845		333,455
Other mortgage		-		-		-		-		959		470,404		471,363
Total real estate - mortgage		14		-		-		14		3,238		1,595,483		1,598,735
Consumer		21		-		-		21		666		56,575		57,262
Total	$	1,423	$	3,490	$	925	$	5,838	$	9,125	$	3,344,895	$	3,359,858

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

Details Of Company's Impaired Loans

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

December 31, 2014
			Unpaid				Average		Interest Income
	Recorded		Principal		Related		Recorded		Recognized
	Investment		Balance		Allowance		Investment		in Period
					(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	7,059	$	7,059	$	-	$	7,104	$	406
Real estate - construction		1,527		1,527		-		1,493		40
Real estate - mortgage:
Owner-occupied commercial		1,576		1,576		-		236		12
1-4 family mortgage		542		592		-		592		19
Other mortgage		1,944		1,944		-		2,283		142
Total real estate - mortgage		4,062		4,112		-		3,111		173
Consumer		-		-		-		-		-
Total with no allowance recorded		12,648		12,698		-		11,708		619

With an allowance recorded:
Commercial, financial and agricultural		3,291		3,291		1,344		3,262		156
Real estate - construction		4,153		4,633		1,448		4,382		19
Real estate - mortgage:
Owner-occupied commercial		1,001		1,001		160		1,140		29
1-4 family mortgage		2,344		2,344		694		2,743		56
Other mortgage		2,622		2,622		782		2,767		84
Total real estate - mortgage		5,967		5,967		1,636		6,650		169
Consumer		666		666		666		681		-
Total with allowance recorded		14,077		14,557		5,094		14,975		344

Total Impaired Loans:
Commercial, financial and agricultural		10,350		10,350		1,344		10,366		562
Real estate - construction		5,680		6,160		1,448		5,875		59
Real estate - mortgage:
Owner-occupied commercial		2,577		2,577		160		1,376		41
1-4 family mortgage		2,886		2,936		694		3,335		75
Other mortgage		4,566		4,566		782		5,050		226
Total real estate - mortgage		10,029		10,079		1,636		9,761		342
Consumer		666		666		666		681		-
Total impaired loans	$	26,725	$	27,255	$	5,094	$	26,683	$	963

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
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
Total with no allowance recorded		7,263		7,701		-		6,263		305

With an allowance recorded:
Commercial, financial and agricultural		2,617		2,958		1,992		2,844		98
Real estate - construction		7,271		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		3,827		4,168		1,992		4,040		161
Real estate - construction		9,238		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.

	Year Ended December 31, 2014
		Pre-		Post-
		Modification		Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Contracts	Investment		Investment
		(In Thousands)
Troubled Debt Restructurings
Commercial, financial and agricultural	9	$	7,139	$	7,139
Real estate - construction	-		-		-
Real estate - mortgage:
Owner-occupied commercial	-		-		-
1-4 family mortgage	1		4,449		4,449
Other mortgage	2		1,684		1,684
Total real estate mortgage	3		6,133		6,133
Consumer	-		-		-
	12	$	13,272	$	13,272

	Year Ended December 31, 2013
		Pre-		Post-
		Modification		Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Contracts	Investment		Investment

Commercial, financial and agricultural	5	$	2,177	$	2,177
Real estate - construction	7		1,781		1,781
Real estate - mortgage:
Owner-occupied commercial	-		-		-
1-4 family mortgage	4		10,073		10,073
Other mortgage	1		293		293
Total real estate - mortgage	5		10,366		10,366
Consumer	-		-		-
	17	$	14,324	$	14,324

The following table presents TDRs by portfolio segment which defaulted during the years ended December 31, 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.

	Years Ended December 31,
	2014		2013
Defaulted during the period, where modified in a TDR twelve months prior to default
Commercial, financial and agricultural	$	925	$	1,067
Real estate - construction		-		1,781
Real estate - mortgage:
Owner occupied commercial		-		3,121
1-4 family mortgage		4,313		1,847
Other mortgage		-		-
Total real estate mortgage		4,313		4,968
Consumer		-		-
	$	5,238	$	7,816

Schedule Of Changes In Related Party Loans

Changes in related party loans for the years ended December 31, 2014 and 2013 are as follows:

	Years Ended December 31,
	2014		2013
	(In Thousands)
Balance, beginning of year	$	13,117	$	12,400
Advances		4,080		4,975
Repayments		(4,114)		(4,258)
Balance, end of year	$	13,083	$	13,117