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

Annual report pursuant to Section 13 and 15(d)

Note 3 - Loans (Tables)

Note 3 - Loans (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	December 31,
	2020			2019
	(In Thousands)
Commercial, financial and agricultural	$	3,295,900		$	2,696,210
Real estate - construction		593,614			521,392
Real estate - mortgage:
Owner-occupied commercial		1,693,428			1,587,478
1-4 family mortgage		711,692			644,188
Other mortgage		2,106,184			1,747,394
Total real estate - mortgage		4,511,304			3,979,060
Consumer		64,870			64,789
Total Loans		8,465,688			7,261,451
Less: Allowance for credit losses		(87,942	)		(76,584	)
Net Loans	$	8,377,746		$	7,184,867

Schedule of Allowance for Loan Losses [Table Text Block]

	Years Ended December 31,
	2020			2019			2018
	(In Thousands)
Balance, beginning of year	$	76,584		$	68,600		$	59,406
Impact of adopting ASC 326		(2,000	)		-
Loans charged off		(29,568	)		(22,489	)		(12,753	)
Recoveries		492			429			545
Allocation from LGP		-			7,406			-
Provision for credit losses		42,434			22,638			21,402
Balance, end of year	$	87,942		$	76,584		$	68,600

Financing Receivable, Allowance for Credit Loss [Table Text Block]

	Commercial,
	financial and			Real estate -			Real estate -
	agricultural			construction			mortgage			Consumer			Total

	(In Thousands)
	Year Ended December 31, 2020
Allowance for credit losses:
Balance at December 31, 2019	$	43,666		$	2,768		$	29,653		$	497		$	76,584
Impact of adopting ASC 326		(8,211	)		6,212			(966	)		965			(2,000	)
Charge-offs		(23,936	)		(1,032	)		(4,397	)		(203	)		(29,568	)
Recoveries		252			32			140			68			492
Provision		24,599			8,077			9,292			466			42,434
Balance at December 31, 2020	$	36,370		$	16,057		$	33,722		$	1,793		$	87,942

	Year Ended December 31, 2019
Allowance for loan losses:
Balance at December 31, 2018	$	39,016		$	3,522		$	25,508		$	554		$	68,600
Charge-offs		(15,015	)		-			(6,882	)		(592	)		(22,489	)
Recoveries		306			3			13			107			429
Allocation from LGP		4,905			115			2,386			-			7,406
Provision		14,454			(872	)		8,628			428			22,638
Balance at December 31, 2019	$	43,666		$	2,768		$	29,653		$	497		$	76,584

	Commercial,
	financial and		Real estate -		Real estate -
	agricultural		construction		mortgage		Consumer		Total

	(In Thousands)
	December 31, 2019
Individually Evaluated for Impairment	$	6,085	$	86	$	3,633	$	-	$	9,804
Collectively Evaluated for Impairment		37,581		2,682		26,020		497		66,780

Loans:
Ending Balance	$	2,696,210	$	521,392	$	3,979,060	$	64,789	$	7,261,451
Individually Evaluated for Impairment		20,843		4,320		17,985		-		43,148
Collectively Evaluated for Impairment		2,675,367		517,072		3,961,075		64,789		7,218,303

Financing Receivable Based on Year of Origination [Table Text Block]

December 31, 2020	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
	(In Thousands)
Commercial, financial and agricultural
Pass	$	1,260,341	$	332,690	$	229,838	$	169,616	$	89,893	$	137,021	$	988,093	$	3,207,492
Special Mention		2,551		1,404		10		253		163		281		14,948		19,610
Substandard		569		10,639		617		5,447		963		2,038		48,525		68,798
Doubtful		-		-		-		-		-		-		-		-
Total Commercial, financial and agricultural	$	1,263,461	$	344,733	$	230,465	$	175,316	$	91,019	$	139,340	$	1,051,566	$	3,295,900

Real estate - construction
Pass	$	230,931	$	222,357	$	53,981	$	16,361	$	7,677	$	13,816	$	48,256	$	593,379
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		235		-		235
Doubtful		-		-		-		-		-		-		-		-
Total Real estate - construction	$	230,931	$	222,357	$	53,981	$	16,361	$	7,677	$	14,051	$	48,256	$	593,614

Owner-occupied commercial
Pass	$	351,808	$	271,645	$	221,513	$	198,935	$	158,531	$	417,743	$	61,119	$	1,681,294
Special Mention		-		-		-		6,524		543		1,873		200		9,140
Substandard		-		-		12		780		-		1,962		240		2,994
Doubtful		-		-		-		-		-		-		-		-
Total Owner-occupied commercial	$	351,808	$	271,645	$	221,525	$	206,239	$	159,074	$	421,578	$	61,559	$	1,693,428

1-4 family mortgage
Pass	$	179,314	$	111,016	$	70,381	$	60,774	$	27,985	$	44,111	$	212,616	$	706,197
Special Mention		508		-		-		105		481		-		1,112		2,206
Substandard		350		126		-		235		218		-		2,360		3,289
Doubtful		-		-		-		-		-		-		-		-
Total 1-4 family mortgage	$	180,172	$	111,142	$	70,381	$	61,114	$	28,684	$	44,111	$	216,088	$	711,692

Other mortgage
Pass	$	470,086	$	470,092	$	250,945	$	368,283	$	180,244	$	272,722	$	68,721	$	2,081,093
Special Mention		-		-		-		2,793		541		8,566		-		11,900
Substandard		-		50		4,589		8,552		-		-		-		13,191
Doubtful		-		-		-		-		-		-		-		-
Total Other mortgage	$	470,086	$	470,142	$	255,534	$	379,628	$	180,785	$	281,288	$	68,721	$	2,106,184

Consumer
Pass	$	20,410	$	4,421	$	1,551	$	1,671	$	1,031	$	3,615	$	32,125	$	64,824
Special Mention		-		-		15		-		31		-		-		46
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Consumer	$	20,410	$	4,421	$	1,566	$	1,671	$	1,062	$	3,615	$	32,125	$	64,870

Total Loans
Pass	$	2,512,890	$	1,412,221	$	828,209	$	815,640	$	465,361	$	889,028	$	1,410,930	$	8,334,279
Special Mention		3,059		1,404		25		9,675		1,759		10,720		16,260		42,902
Substandard		919		10,815		5,218		15,014		1,181		4,235		51,125		88,507
Doubtful		-		-		-		-		-		-		-		-
Total Loans	$	2,516,868	$	1,424,440	$	833,452	$	840,329	$	468,301	$	903,983	$	1,478,315	$	8,465,688

Financing Receivable Credit Quality Indicators [Table Text Block]

			Special
December 31, 2019	Pass		Mention		Substandard		Doubtful		Total

	(In Thousands)
Commercial, financial and agricultural	$	2,629,487	$	46,176	$	20,547	$	-	$	2,696,210
Real estate - construction		512,373		4,731		4,288		-		521,392
Real estate - mortgage:
Owner-occupied commercial		1,555,283		18,240		13,955		-		1,587,478
1-4 family mortgage		639,959		2,787		1,442		-		644,188
Other mortgage		1,735,869		10,018		1,507		-		1,747,394
Total real estate - mortgage		3,931,111		31,045		16,904		-		3,979,060
Consumer		64,789		-		-		-		64,789
Total	$	7,137,760	$	81,952	$	41,739	$	-	$	7,261,451

Financing Receivable, Credit Substitute, Credit Quality Indicator [Table Text Block]

December 31, 2020	Performing		Nonperforming		Total

	(In Thousands)
Commercial, financial and agricultural	$	3,284,180	$	11,720	$	3,295,900
Real estate - construction		593,380		234		593,614
Real estate - mortgage:
Owner-occupied commercial		1,692,169		1,259		1,693,428
1-4 family mortgage		710,817		875		711,692
Other mortgage		2,101,379		4,805		2,106,184
Total real estate - mortgage		4,504,365		6,939		4,511,304
Consumer		64,809		61		64,870
Total	$	8,446,734	$	18,954	$	8,465,688

December 31, 2019	Performing		Nonperforming		Total

	(In Thousands)
Commercial, financial and agricultural	$	2,681,280	$	14,930	$	2,696,210
Real estate - construction		519,803		1,589		521,392
Real estate - mortgage:
Owner-occupied commercial		1,576,652		10,826		1,587,478
1-4 family mortgage		641,875		2,313		644,188
Other mortgage		1,740,963		6,431		1,747,394
Total real estate - mortgage		3,959,490		19,570		3,979,060
Consumer		64,766		23		64,789
Total	$	7,225,339	$	36,112	$	7,261,451

Financing Receivable, Past Due [Table Text Block]

December 31, 2020	Past Due Status (Accruing Loans)
							Total Past		Total						Nonaccrual
	30-59 Days		60-89 Days		90+ Days		Due		Nonaccrual		Current		Total Loans		With No ACL

	(In Thousands)

Commercial, financial and agricultural	$	92	$	1,738	$	11	$	1,841	$	11,709	$	3,282,350	$	3,295,900	$	5,101
Real estate - construction		-		-		-		-		234		593,380		593,614		-
Real estate - mortgage:
Owner-occupied commercial		-		995		-		995		1,259		1,691,174		1,693,428		467
1-4 family mortgage		61		1,073		104		1,238		771		709,683		711,692		512
Other mortgage		18		-		4,805		4,823		-		2,101,361		2,106,184		-
Total real estate - mortgage		79		2,068		4,909		7,056		2,030		4,502,218		4,511,304		979
Consumer		64		13		61		138		-		64,732		64,870		-
Total	$	235	$	3,819	$	4,981	$	9,035	$	13,973	$	8,442,680	$	8,465,688	$	6,080

December 31, 2019	Past Due Status (Accruing Loans)
							Total Past		Total						Nonaccrual
	30-59 Days		60-89 Days		90+ Days		Due		Nonaccrual		Current		Total Loans		With No ACL

	(In Thousands)
Commercial, financial and agricultural	$	3,135	$	344	$	201	$	3,680	$	14,729	$	2,677,801	$	2,696,210	$	1,572
Real estate - construction		830		-		-		830		1,589		518,973		521,392		1,350
Real estate - mortgage:
Owner-occupied commercial		917		7,242		-		8,159		10,826		1,568,493		1,587,478		245
1-4 family mortgage		1,638		567		873		3,078		1,440		639,670		644,188		287
Other mortgage		-		-		4,924		4,924		1,507		1,740,963		1,747,394		-
Total real estate - mortgage		2,555		7,809		5,797		16,161		13,773		3,949,126		3,979,060		532
Consumer		35		25		23		83		-		64,706		64,789		-
Total	$	6,555	$	8,178	$	6,021	$	20,754	$	30,091	$	7,210,606	$	7,261,451	$	3,454

Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block]

			Accounts								ACL
	Real Estate		Receivable		Equipment		Other		Total		Allocation
	(In Thousands)
Commercial, financial and agricultural	$	19,373	$	27,952	$	16,877	$	4,594	$	68,796	$	7,142
Real estate - construction		235		-		-		-		235		1
Real estate - mortgage:
Owner-occupied commercial		2,012		971		-		12		2,995		499
1-4 family mortgage		3,264		-		-		24		3,288		48
Other mortgage		13,191		-		-		-		13,191		-
Total	$	38,075	$	28,923	$	16,877	$	4,630	$	88,505	$	7,690

Impaired Financing Receivables [Table Text Block]

December 31, 2019

			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	$	9,015	$	10,563	$	-	$	11,284	$	562
Real estate - construction		2,731		2,735		-		2,063		126
Real estate - mortgage:
Owner-occupied commercial		7,150		7,246		-		7,548		618
1-4 family mortgage		287		287		-		289		2
Other mortgage		-		-		-		-		-
Total real estate - mortgage		7,437		7,533		-		7,837		620
Consumer		-		-		-		-		-
Total with no allowance recorded		19,183		20,831		-		21,184		1,308

With an allowance recorded:
Commercial, financial and agricultural		11,828		19,307		6,085		19,714		395
Real estate - construction		1,589		1,589		86		1,614		27
Real estate - mortgage:
Owner-occupied commercial		7,888		11,028		2,456		13,627		301
1-4 family mortgage		1,153		1,153		176		1,157		1
Other mortgage		1,507		1,507		1,001		1,468		21
Total real estate - mortgage		10,548		13,688		3,633		16,252		323
Consumer		-		-		-		-		-
Total with allowance recorded		23,965		34,584		9,804		37,580		745

Total Impaired Loans:
Commercial, financial and agricultural		20,843		29,870		6,085		30,998		957
Real estate - construction		4,320		4,324		86		3,677		153
Real estate - mortgage:
Owner-occupied commercial		15,038		18,274		2,456		21,175		919
1-4 family mortgage		1,440		1,440		176		1,446		3
Other mortgage		1,507		1,507		1,001		1,468		21
Total real estate - mortgage		17,985		21,221		3,633		24,089		943
Consumer		-		-		-		-		-
Total impaired loans	$	43,148	$	55,415	$	9,804	$	58,764	$	2,053

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

	Year Ended December 31, 2020
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment

	(In Thousands)
Troubled Debt Restructurings
Commercial, financial and agricultural		2	$	564	$	564
Real estate - construction		1		357		357
Real estate - mortgage:
Owner-occupied commercial		1		611		611
1-4 family mortgage		-		-		-
Other mortgage		-		-		-
Total real estate - mortgage		1		611		611
Consumer		-		-		-
		4	$	1,532	$	1,532

	Year ended December 31, 2019
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment

Commercial, financial and agricultural		3	$	3,415	$	3,415
Real estate - construction		-		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		-
1-4 family mortgage		-		-		-
Other mortgage		-		-		-
Total real estate - mortgage		-		-		-
Consumer		-		-		-
		3	$	3,415	$	3,415

	Year Ended December 31,
	2020		2019
Defaulted during the period, where modified in a TDR twelve months prior to default
Commercial, financial and agricultural	$	-	$	491
Real estate - construction		-		-
Real estate - mortgage:
Owner occupied commercial		-		726
1-4 family mortgage		-		-
Other mortgage		-		-
Total real estate - mortgage		-		726
Consumer		-		-
	$	-	$	1,217

Schedule of Changes in Related Party Loans [Table Text Block]

	Years Ended December 31,
	2020			2019

	(In Thousands)
Balance, beginning of year	$	24,681		$	5,428
Additions		-			17,794
Advances		41,183			4,861
Repayments		(28,895	)		(3,400	)
Removal		-			(2	)
Balance, end of year	$	36,969		$	24,681