ServisFirst Bancshares, Inc. Announces Record Earnings for 2010

BIRMINGHAM, Ala.,  Jan. 20, 2011 /PRNewswire/ -- ServisFirst Bancshares, Inc. today reported record earnings for the quarter and year ended December 31, 2010.

2010 AND FOURTH QUARTER HIGHLIGHTS:

  • 2010 net income of $17.4 million, a 196% increase over 2009
  • Fourth quarter net income increase of 128% year/year
  • $3.15 earnings per share for 2010, a 194% increase year/year
  • 21 consecutive quarters of profitability

Tom Broughton, President and CEO, said, "We are proud to report record earnings in 2010, as well as continued solid deposit growth with a 23% increase in deposits during 2010. We are very pleased with our growth in new and expanded core relationships with businesses, professionals and consumers." Bud Foshee, CFO, stated, "Our strong financial performance reflects not only higher interest income, but also disciplined expense management and margin improvement over 2009."

ABOUT SERVISFIRST:

ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst provides business and personal financial services through locations in Birmingham, Huntsville, Montgomery and Dothan, Alabama.

ServisFirst files periodic reports with the U.S. Securities and Exchange Commission (SEC).  Copies of its filings may be obtained through the SEC's website at www.sec.gov or at www.servisfirstbancshares.com.

Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933.  The words "believe," "expect," "anticipate," "project," "plan,", "intend," "will," "would," "might" and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.'s senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.  Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including: general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes in our loan portfolio and the deposit base, possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic stimulus initiatives and so-called "bailout" initiatives; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes, in our geographic markets; and increased competition from both banks and non-bank financial institutions.  The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to "Risk Factors" in our most recent Annual Report on Form 10-K and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made.  ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.

More information about ServisFirst Bancshares may be obtained over the Internet at www.servisfirstbancshares.com or by calling (205) 949-0302.

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except shares and per share data)













Three Months Ended




December 31,


September 30,




2010


2009


2010




(Unaudited)


(Unaudited)


(Unaudited)

Total interest income


$      20,689


$      17,189


$            19,959

Total interest expense


4,004


4,320


3,972


Net interest income before provision


16,685


12,869


15,987

Provision for loan losses


2,738


2,408


2,537


Net interest income after provision for loan losses


13,947


10,461


13,450


Total noninterest income


1,685


1,244


1,348









Salaries and employee benefits


4,493


3,227


3,547

Other noninterest expense


4,016


5,416


3,920


Total noninterest expense


8,509


8,643


7,467


Income before taxes


7,123


3,062


7,331

Income taxes


2,578


1,072


2,532


Net income


$        4,545


$        1,990


$              4,799









Basic earnings per share


$          0.82


$          0.37


$                0.87

Diluted earnings per share


$          0.73


$          0.34


$                0.77

Average basic shares


5,525,297


5,513,482


5,515,384

Average fully diluted shares


6,427,228


5,828,820


6,417,947






Year Ended December 31,




2010


2009




(Unaudited)


(Audited)

Total interest income


$      78,146


$      62,197

Total interest expense


15,260


18,337


Net interest income before provision


62,886


43,860

Provision for loan losses


10,350


10,685


Net interest income after provision for loan losses


52,536


33,175


Total noninterest income


5,169


4,413







Salaries and employee benefits


14,669


13,581

Other noninterest expense


16,300


15,349


Total noninterest expense


30,969


28,930


Income before taxes


26,736


8,658

Income taxes


9,358


2,780


Net income


$      17,378


$        5,878







Basic earnings per share


$          3.15


$          1.07

Diluted earnings per share


$          2.84


$          1.02

Average basic shares


5,519,151


5,485,972

Average fully diluted shares


6,294,604


5,787,643



SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)



December 31, 2010


December 31, 2009


September 30, 2010




(Unaudited)


(Audited)


(Unaudited)

ASSETS







Cash and due from banks


$        231,732


$                    75,526


$                   149,841

Investment securities


282,193


256,098


251,838

Restricted equity securities


3,510


3,241


3,510

Federal funds sold and other investments


346


680


2,213

Mortgage loans held for sale


7,875


6,202


8,708









Loans


1,394,818


1,207,084


1,345,502

Reserve for loan losses


(18,077)


(14,911)


(16,903)

Net loans


1,376,741


1,192,173


1,328,599

Foreclosed real estate


6,966


12,525


8,170

Other assets


25,803


27,052


23,645

Total assets


$     1,935,166


$               1,573,497


$                1,776,524









LIABILITIES AND STOCKHOLDERS' EQUITY







Liabilities:







Noninterest-bearing


$        250,490


$                  211,307


$                   224,537

Interest-bearing


1,508,226


1,221,048


1,377,020

Total deposits


1,758,716


1,432,355


1,601,557

Borrowings


55,357


40,150


55,317

Interest payable


898


1,026


914

Other liabilities


3,095


2,344


2,559

Total liabilities


1,818,066


1,475,875


1,660,347









Stockholders' equity


117,100


97,622


116,177

Total liabilities and stockholders' equity


$     1,935,166


$               1,573,497


$                1,776,524



SERVISFIRST BANCSHARES, INC.

Key Ratios












Three Months Ended




December 31,


September 30,




2010


2009


2010




(Unaudited)


(Unaudited)


(Unaudited)

Return on average assets


0.97%


0.50%


1.10%

Return on average equity


15.24%


8.06%


16.86%

Net interest margin (fully tax equivalent)


3.73%


3.33%


3.83%

Efficiency ratio


46.32%


61.24%


43.08%




















Year Ended December 31,






2010


2009






(Unaudited)


(Audited)



Return on average assets


1.04%


0.43%



Return on average equity


15.86%


6.33%



Net interest margin (fully tax equivalent)


3.94%


3.31%



Efficiency ratio


45.51%


59.57%






















12/31/2010


12/31/2009


9/30/2010




(Unaudited)


(Audited)


(Unaudited)

Book value per share


$            21.19


$                      17.71


$                       21.05

Tangible book value per share


$            21.19


$                      17.71


$                       21.05

% of reserve for loan losses to total loans


1.30%


1.24%


1.26%

Nonperforming assets to total loans








plus foreclosed real estate


1.52%


2.03%


1.67%



CONTACT: ServisFirst Bank

Bud Foshee (205) 949-0307

BFoshee@servisfirstbank.com



SOURCE ServisFirst Bancshares, Inc.



RELATED LINKS
http://www.servisfirstbancshares.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.