Annual report pursuant to Section 13 and 15(d)

REGULATORY MATTERS

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REGULATORY MATTERS
 12 Months Ended
Dec. 31, 2012
Banking and Thrift [Abstract]  
REGULATORY MATTERS
NOTE 15. REGULATORY MATTERS

 

The Bank is subject to dividend restrictions set forth in the Alabama Banking Code and by the Alabama State Banking Department. Under such restrictions, the Bank may not, without the prior approval of the Alabama State Banking Department, declare dividends in excess of the sum of the current year’s earnings plus the retained earnings from the prior two years. Based on these restrictions, the Bank would be limited to paying $90.1 million in dividends as of December 31, 2012.

 

The Bank is subject to various regulatory capital requirements administered by the state and federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that if undertaken, could have a direct material effect on the Bank and the financial statements. Under regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification under the prompt corrective guidelines are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

 

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total risk-based capital and Tier 1 capital to risk-weighted assets (as defined in the regulations), and Tier 1 capital to adjusted total assets (as defined). Management believes, as of December 31, 2012, that the Bank meets all capital adequacy requirements to which it is subject.

 

As of December 31, 2012, the most recent notification from the Federal Deposit Insurance Corporation categorized ServisFirst Bank as well capitalized under the regulatory framework for prompt corrective action. To remain categorized as well capitalized, the Bank will have to maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as disclosed in the table below. Management believes that it is well capitalized under the prompt corrective action provisions as of December 31, 2012.

 

The Company’s and Bank’s actual capital amounts and ratios are presented in the following table:

 

    Actual     For Capital Adequacy
Purposes		     To Be Well Capitalized
Under Prompt Corrective
Action Provisions		  
    Amount     Ratio     Amount     Ratio     Amount     Ratio  
As of December 31, 2012:                                                
Total Capital to Risk Weighted Assets:                                                
Consolidated   $ 287,136       11.78 %   $ 194,943       8.00 %     N/A       N/A  
ServisFirst Bank     284,141       11.66 %     194,942       8.00 %   $ 243,678       10.00 %
Tier I Capital to Risk Weighted Assets:                                                
Consolidated     240,961       9.89 %     97,472       4.00 %     N/A       N/A  
ServisFirst Bank     257,883       10.58 %     97,471       4.00 %     146,207       6.00 %
Tier I Capital to Average Assets:                                                
Consolidated     240,961       8.43 %     114,323       4.00 %     N/A       N/A  
ServisFirst Bank     257,883       9.03 %     114,227       4.00 %     142,784       5.00 %
                                                 
As of December 31, 2011:                                                
Total Capital to Risk Weighted Assets:                                                
Consolidated   $ 246,334       12.79 %   $ 154,094       8.00 %     N/A       N/A  
ServisFirst Bank     243,279       12.63 %     154,070       8.00 %   $ 192,588       10.00 %
Tier I Capital to Risk Weighted Assets:                                                
Consolidated     219,350       11.39 %     77,047       4.00 %     N/A       N/A  
ServisFirst Bank     216,295       11.23 %     77,035       4.00 %     115,553       6.00 %
Tier I Capital to Average Assets:                                                
Consolidated     219,350       9.17 %     95,642       4.00 %     N/A       N/A  
ServisFirst Bank     216,295       9.06 %     95,481       4.00 %     119,352       5.00 %