ServisFirst Bancshares, Inc. Announces Record Second Quarter 2011

BIRMINGHAM, Ala., July 18, 2011 /PRNewswire/ -- ServisFirst Bancshares, Inc. today reported record earnings for the quarter and six months ending June 30, 2011.

SECOND QUARTER 2011 HIGHLIGHTS:

  • Assets exceed $2 billion
  • Second quarter record net income of $5.8 million, a 45% increase year/year
  • Basic earnings per share of $1.88 for the first six months of 2011
  • Closed Pensacola common equity raise at $30 per share, for total proceeds of $10.2 million, and $40 million Small Business Lending Fund preferred stock sale in second quarter
  • Tier 2 Capital over $229 million
  • 23 consecutive quarters of profitability

Tom Broughton, CEO and President, said, "We continue to focus on delivering high quality service to our clients, and, with our clients' help, are gratified to have grown to over $2 billion in assets in the past six years." Bud Foshee, CFO, stated, "Our focus in solid banking fundamentals has resulted in our ranking as one of the top performing community banks in the U.S. according to SNL Financial."

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, Alabama; Huntsville, Alabama; Montgomery, Alabama; Dothan, Alabama; and Pensacola, Florida.

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 collectibility 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.

CONTACT: ServisFirst Bank
Bud Foshee (205) 949-0307
BFoshee@servisfirstbank.com

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except shares and per share data)















Three Months Ended





June 30,


March 31,





2011


2010


2011





(Unaudited)


(Unaudited)


(Unaudited)

Total interest income



$                    22,080


$                    18,996


$                       20,961

Total interest expense



4,032


3,688


3,985


    Net interest income before provision



18,048


15,308


16,976

Provision for loan losses



1,494


2,537


2,231


    Net interest income after provision for loan losses



16,554


12,771


14,745


    Total noninterest income



1,782


1,004


1,271










Salaries and employee benefits



5,026


3,147


4,214

Other noninterest expense



4,343


4,414


4,383


    Total noninterest expense



9,369


7,561


8,597


    Income before taxes



8,967


6,214


7,419

Income taxes



3,122


2,193


2,548


    Net income



$                      5,845


$                      4,021


$                         4,871










Basic earnings per share


$                        1.02


$                        0.73


$                           0.88

Diluted earnings per share


$                        0.89


$                        0.65


$                           0.77

Average basic shares


5,708,871


5,513,482


5,527,482

Average fully diluted shares


6,705,953


6,399,929


6,514,103














Six Months Ended June 30,







2011


2010







(Unaudited)


(Unaudited)



Total interest income



$                    43,041


$                    37,498



Total interest expense



8,017


7,284




    Net interest income before provision



35,024


30,214



Provision for loan losses



3,725


5,075




    Net interest income after provision for loan losses



31,299


25,139




    Total noninterest income



3,053


2,136












Salaries and employee benefits



9,240


6,629



Other noninterest expense



8,726


8,364




    Total noninterest expense



17,966


14,993




    Income before taxes



16,386


12,282



Income taxes



5,670


4,248




    Net income



$                    10,716


$                      8,034












Basic earnings per share


$                        1.88


$                        1.46



Diluted earnings per share


$                        1.65


$                        1.33



Average basic shares


5,694,871


5,513,482



Average fully diluted shares


6,657,359


6,159,841





SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)



June 30, 2011


June 30, 2010


December 31,

2010





(Unaudited)


(Unaudited)


(Audited)

ASSETS








Cash and due from banks


$                102,914


$                  127,102


$                     231,632

Investment securities


244,566


236,467


282,193

Restricted equity securities


3,899


3,510


3,510

Federal funds sold and other investments


94,541


148


346

Mortgage loans held for sale


4,092


4,462


7,875










Loans



1,560,974


1,288,410


1,394,818

Reserve for loan losses


(19,516)


(15,713)


(18,077)

Net loans


1,541,458


1,272,697


1,376,741

Foreclosed real estate



6,931


10,773


6,966

Other assets


26,196


26,725


25,903

Total assets


$             2,024,597


$               1,681,884


$                  1,935,166










LIABILITIES AND STOCKHOLDERS' EQUITY







Liabilities:







Noninterest-bearing


$                283,968


$                  188,657


$                     250,490

Interest-bearing


1,519,906


1,326,247


1,508,226

Total deposits


1,803,874


1,514,904


1,758,716

Borrowings


35,435


55,278


55,357

Interest payable


983


887


898

Other liabilities


3,104


1,769


3,095

Total liabilities


1,843,396


1,572,838


1,818,066










Stockholders' equity


181,201


109,046


117,100

Total liabilities and stockholders' equity


$             2,024,597


$               1,681,884


$                  1,935,166



SERVISFIRST BANCSHARES, INC.

Key Ratios














Three Months Ended





June 30,

March 31,





2011


2010


2011





(Unaudited)


(Unaudited)


(Unaudited)

Return on average assets


1.22%


1.02%


1.06%

Return on average equity


17.30%


15.34%


16.50%

Net interest margin (fully tax equivalent)


3.93%


4.07%


3.86%

Efficiency ratio


47.25%


46.35%


47.11%























Six Months Ended June 30,







2011


2010







(Unaudited)


(Unaudited)



Return on average assets


1.14%


1.04%



Return on average equity


16.56%


15.77%



Net interest margin (fully tax equivalent)


3.90%


4.11%



Efficiency ratio


47.18%


46.35%

























June 30,

March 31,





2011


2010


2011





(Unaudited)


(Unaudited)


(Unaudited)

Book value per share


$                    24.05


$                      19.78


$                         22.15

Tangible book value per share


$                    24.05


$                      19.78


$                         22.15

% of reserve for loan losses to total loans


1.25%


1.22%


1.31%

Nonperforming assets to total loans








plus foreclosed real estate


1.79%


1.45%


1.98%



SOURCE ServisFirst Bancshares, Inc.



RELATED LINKS
http://www.servisfirstbancshares.com

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