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

Note 18 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

	Year Ended December 31,
	2017			2016			2015
	(In Thousands)
Current tax expense:
Federal	$	27,952		$	29,813		$	28,517
State		2,258			1,254			1,824
Total current tax expense		30,210			31,067			30,341
Deferred tax expense (benefit):
Federal		17,073			(662	)		(3,277	)
State		(3,025	)		(1,066	)		(1,599	)
Total deferred tax (benefit)		14,048			(1,728	)		(4,876	)
Total income tax expense	$	44,258		$	29,339		$	25,465

	Year Ended December 31, 2017
	Amount			% of Pre-tax Earnings
	(In Thousands)
Income tax at statutory federal rate	$	48,073			35.00	%
Effect on rate of:
State income tax, net of federal tax effect		43			0.03	%
Tax-exempt income, net of expenses		(1,356	)		(0.99	)%
Bank owned life insurance contracts		(1,096	)		(0.80	)%
Excess tax benefit from stock compensation		(4,278	)		(3.11	)%
Federal tax credits		(234	)		(0.17	)%
Enacted tax rate change		3,108			2.26	%
Other		(2	)		-	%
Effective income tax and rate	$	44,258			32.22	%

	Year Ended December 31, 2016
	Amount			% of Pre-tax Earnings
	(In Thousands)
Income tax at statutory federal rate	$	38,786			35.00	%
Effect on rate of:
State income tax, net of federal tax effect		254			0.23	%
Tax-exempt income, net of expenses		(1,322	)		(1.20	)%
Bank owned life insurance contracts		(978	)		(0.88	)%
Excess tax benefit from stock compensation		(4,788	)		(4.32	)%
Federal tax credits		(2,652	)		(2.40	)%
Other		39			0.04	%
Effective income tax and rate	$	29,339			26.47	%

	Year Ended December 31, 2015
	Amount			% of Pre-tax Earnings
	(In Thousands)
Income tax at statutory federal rate	$	31,152			35.00	%
Effect on rate of:
State income tax, net of federal tax effect		146			0.16	%
Tax-exempt income, net of expenses		(1,308	)		(1.47	)%
Bank owned life insurance contracts		(917	)		(1.03	)%
Incentive stock option expense		3			-	%
Federal tax credits		(3,600	)		(4.04	)%
Other		(11	)		(0.01	)%
Effective income tax and rate	$	25,465			28.61	%

	December 31,
	2017		2016
	(In Thousands)
Deferred tax assets:
Allowance for loan losses	$	14,905	$	19,699
Other real estate owned		232		737
Nonqualified equity awards		927		1,234
Nonaccrual interest		178		501
State tax credits		5,688		3,475
Investments		1,296		2,173
Deferred loan fees		866		707
Reserve for unfunded commitments		125		190
Accrued bonus		1,521		1,817
Differences in amounts reflected in financial statements and income tax basis of assets acquired and liabilities assumed in acquisition		175		448
Acquired net operating losses		-		27
Net unrealized loss on securities available for sale		65		331
Other deferred tax assets		431		122
Total deferred tax assets		26,409		31,461

Deferred tax liabilities:
REIT dividend		9,706		-
Depreciation		3,240		3,606
Prepaid expenses		164		198
Acquired intangible assets		277		525
Total deferred tax liabilities		13,387		4,329
Net deferred tax assets	$	13,022	$	27,132

	2017			2016			2015
	(In Thousands)
Balance, beginning of year	$	1,375		$	1,173		$	804
Increases related to prior year tax positions		365			364			369
Decreases related to prior year tax positions		-			-			-
Increases related to current year tax positions		-			-			-
Settlements		-			-			-
Enacted tax rate change		315			-			-
Lapse of statute		(276	)		(162	)		-
Balance, end of year	$	1,779		$	1,375		$	1,173