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, 2015

The composition of loans at December 31, 2015 and 2014 is summarized as follows:

	December 31,
	2015		2014
	(In Thousands)
Commercial, financial and agricultural	$	1,760,479	$	1,504,652
Real estate - construction		243,267		208,769
Real estate - mortgage:
Owner-occupied commercial		1,014,669		793,917
1-4 family mortgage		444,134		333,455
Other mortgage		698,779		471,363
Total real estate - mortgage		2,157,582		1,598,735
Consumer		55,047		47,702
Total Loans		4,216,375		3,359,858
Less: Allowance for loan losses		(43,419)		(35,629)
Net Loans	$	4,172,956	$	3,324,229

Schedule Of Allowance For Loan Losses

Changes in the allowance for loan losses during the years ended December 31, 2015, 2014 and 2013, respectively are as follows:

	Years Ended December 31,
	2015		2014		2013
	(In Thousands)
Balance, beginning of year	$	35,629	$	30,663	$	26,258
Loans charged off		(5,744)		(5,771)		(9,012)
Recoveries		687		478		409
Provision for loan losses		12,847		10,259		13,008
Balance, end of year	$	43,419	$	35,629	$	30,663

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, 2015 and 2014, respectively, are as follows:

	Commercial,
	financial and		Real estate -		Real estate -
	agricultural		construction		mortgage		Consumer		Total
	(In Thousands)
	Year Ended December 31, 2015
Allowance for loan losses:
Balance at December 31, 2014	$	16,079	$	6,395	$	12,112	$	1,043	$	35,629
Charge-offs		(3,802)		(667)		(1,104)		(171)		(5,744)
Recoveries		279		238		169		1		687
Provision		8,939		(534)		4,884		(442)		12,847
Balance at December 31, 2015	$	21,495	$	5,432	$	16,061	$	431	$	43,419

	December 31, 2015
Individually Evaluated for Impairment	$	2,698	$	1,223	$	1,730	$	32	$	5,683
Collectively Evaluated for Impairment		18,797		4,209		14,331		399		37,736

Loans:
Ending Balance	$	1,760,479	$	243,267	$	2,157,582	$	55,047	$	4,216,375
Individually Evaluated for Impairment		11,513		4,052		17,880		46		33,491
Collectively Evaluated for Impairment		1,748,966		239,215		2,139,702		55,001		4,182,884

	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	$	1,504,652	$	208,769	$	1,598,735	$	47,702	$	3,359,858
Individually Evaluated for Impairment		10,350		5,680		10,029		666		26,725
Collectively Evaluated for Impairment		1,494,302		203,089		1,588,706		47,036		3,333,133

Loans By Credit Quality Indicator

Loans by credit quality indicator as of December 31, 2015 and 2014 were as follows:

			Special
December 31, 2015	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,701,591	$	47,393	$	11,495	$	-	$	1,760,479
Real estate - construction		233,046		6,221		4,000		-		243,267
Real estate - mortgage:
Owner-occupied commercial		988,762		18,169		7,738		-		1,014,669
1-4 family mortgage		437,834		3,301		2,999		-		444,134
Other mortgage		683,157		11,086		4,536		-		698,779
Total real estate - mortgage		2,109,753		32,556		15,273		-		2,157,582
Consumer		54,973		42		32		-		55,047
Total	$	4,099,363	$	86,212	$	30,800	$	-	$	4,216,375

			Special
December 31, 2014	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,468,916	$	25,416	$	10,320	$	-	$	1,504,652
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		46,999		37		666		-		47,702
Total	$	3,282,232	$	50,901	$	26,725	$	-	$	3,359,858

Loans By Performance Status

Loans by performance status as of December 31, 2015 and 2014 are as follows:

December 31, 2015	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,758,561	$	1,918	$	1,760,479
Real estate - construction		239,267		4,000		243,267
Real estate - mortgage:
Owner-occupied commercial		1,014,669		-		1,014,669
1-4 family mortgage		443,936		198		444,134
Other mortgage		697,160		1,619		698,779
Total real estate - mortgage		2,155,765		1,817		2,157,582
Consumer		55,015		32		55,047
Total	$	4,208,608	$	7,767	$	4,216,375

December 31, 2014	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,503,555	$	1,097	$	1,504,652
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		47,036		666		47,702
Total	$	3,349,808	$	10,050	$	3,359,858

Loans By Past Due Status

Loans by past due status as of December 31, 2015 and 2014 are as follows:

December 31, 2015	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	$	50	$	35	$	-	$	85	$	1,918	$	1,758,476	$	1,760,479
Real estate - construction		198		12		-		210		4,000		239,057		243,267
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		-		1,014,669		1,014,669
1-4 family mortgage		-		210		-		210		198		443,726		444,134
Other mortgage		-		-		-		-		1,619		697,160		698,779
Total real estate - mortgage		-		210		-		210		1,817		2,155,555		2,157,582
Consumer		45		6		1		52		31		54,964		55,047
Total	$	293	$	263	$	1	$	557	$	7,766	$	4,208,052	$	4,216,375

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	$	1,498,677	$	1,504,652
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		47,015		47,702
Total	$	1,423	$	3,490	$	925	$	5,838	$	9,125	$	3,344,895	$	3,359,858

Details Of Company's Impaired Loans

The following table presents details of the Company’s impaired loans as of December 31, 2015 and 2014, respectively. Loans which have been fully charged off do not appear in the tables.

December 31, 2015

			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	$	478	$	487	$	-	$	482	$	24
Real estate - construction		161		163		-		370		1
Real estate - mortgage:
Owner-occupied commercial		3,980		4,140		-		3,815		214
1-4 family mortgage		2,396		2,572		-		2,409		147
Other mortgage		4,079		4,694		-		4,559		222
Total real estate - mortgage		10,455		11,406		-		10,783		583
Consumer		14		20		-		18		1
Total with no allowance recorded		11,108		12,076		-		11,653		609

With an allowance recorded:
Commercial, financial and agricultural		11,035		13,035		2,698		13,882		672
Real estate - construction		3,891		4,370		1,223		3,920		-
Real estate - mortgage:
Owner-occupied commercial		6,365		6,365		1,328		9,958		568
1-4 family mortgage		603		603		263		567		19
Other mortgage		457		457		139		880		17
Total real estate - mortgage		7,425		7,425		1,730		11,405		604
Consumer		32		32		32		34		-
Total with allowance recorded		22,383		24,862		5,683		29,241		1,276

Total Impaired Loans:
Commercial, financial and agricultural		11,513		13,522		2,698		14,364		696
Real estate - construction		4,052		4,533		1,223		4,290		1
Real estate - mortgage:
Owner-occupied commercial		10,345		10,505		1,328		13,773		782
1-4 family mortgage		2,999		3,175		263		2,976		166
Other mortgage		4,536		5,151		139		5,439		239
Total real estate - mortgage		17,880		18,831		1,730		22,188		1,187
Consumer		46		52		32		52		1
Total impaired loans	$	33,491	$	36,938	$	5,683	$	40,894	$	1,885

December 31, 2014

			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	$	7,059	$	7,059	$	-	$	7,104	$	406
Real estate - construction		1,527		1,527		-		1,493		40
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

Analysis Of Troubled Debt Restructuring

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

	Year Ended December 31, 2015
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
	(In Thousands)

Troubled Debt Restructurings
Commercial, financial and agricultural		8	$	6,618	$	6,618
Real estate - construction		-		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		-
1-4 family mortgage		-		-		-
Other mortgage		1		253		253
Total real estate - mortgage		1		253		253
Consumer		-		-		-
		9	$	6,871	$	6,871

	Year ended December 31, 2014
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment

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

The following table presents TDRs by portfolio segment which defaulted during the years ended December 31, 2015 and 2014, 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,
	2015		2014
Defaulted during the period, where modified in a TDR twelve months prior to default
Commercial, financial and agricultural	$	-	$	925
Real estate - mortgage:
1-4 family mortgage		-		4,313
Other mortgage		-		-
Total real estate - mortgage		-		4,313
Consumer		-		-
	$	-	$	5,238

Schedule Of Changes In Related Party Loans

Changes in related party loans for the years ended December 31, 2015 and 2014 are as follows:

	Years Ended December 31,
	2015		2014
	(In Thousands)
Balance, beginning of year	$	13,083	$	13,117
Advances		15,442		4,080
Repayments		(16,435)		(4,114)
Balance, end of year	$	12,090	$	13,083