ServisFirst Bancshares, Inc. Issues Corrected Earnings Report for Fourth Quarter 2009

BIRMINGHAM, Ala., Feb. 2 /PRNewswire/ -- ServisFirst Bancshares, Inc. today amended its previously announced earnings report for the quarter and year ended December 31, 2009.  This corrected report reflects additional expense of $800,000 for the fourth quarter of 2009 primarily related to the initial installment of the 13-quarter prepayment of Federal Deposit Insurance Corporation (FDIC) premiums adopted by the FDIC in November 2009.  This expense was not reflected in the Company's initial earnings announcement on January 19, 2010, which was corrected by the Company in connection with the preparation of its audited financial statements for the year ended December 31, 2009.  As shown in the attached financial data, the effect of this expense, net of the income tax benefit, was to reduce the Company's net income by $504,856, or $.09 (basic) and $.09 (diluted) per share, for the quarter and year ended December 31, 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,
                                          2009        2008          2009
                                    (Unaudited) (Unaudited)   (Unaudited)
    Total interest income              $17,190     $14,393       $16,092
    Total interest expense               4,320       5,075         4,648
                                        ------      ------        ------
      Net interest income before                                        
       provision                        12,870       9,318        11,444
    Provision for loan losses            2,408       1,373         3,209
                                        ------      ------        ------
      Net interest income after                                         
       provision for loan losses        10,462       7,945         8,235
      Total noninterest income           1,244         792           967
                                                                        
    Salaries and employee benefits       3,227       2,642         3,398
    Other noninterest expense            5,416       3,113         3,574
                                        ------      ------        ------
      Total noninterest expense          8,643       5,755         6,972
                                        ------      ------        ------
      Income before taxes                3,063       2,982         2,230
    Income taxes                         1,072       1,021           622
                                        ------      ------        ------
      Net income                        $1,991      $1,961        $1,608
                                        ======      ======        ======
                                                                        
    Basic earnings per share             $0.36       $0.38         $0.29
    Diluted earnings per share           $0.34       $0.36         $0.28
    Average basic shares             5,513,482   5,116,314     5,513,482
    Average fully diluted shares     5,828,820   5,391,259     5,821,331
                                                                        
                                   Year Ended December 31,              
                                          2009        2008              
                                   (Unaudited)  (Audited)               
                                   -----------  ---------               
    Total interest income              $62,197     $55,450              
    Total interest expense              18,337      20,474              
                                        ------      ------              
      Net interest income before                                        
       provision                        43,860      34,976              
    Provision for loan losses           10,685       6,274              
                                        ------      ------              
      Net interest income after                                         
       provision for loan losses        33,175      28,702              
      Total noninterest income           4,413       2,704              
                                                                        
    Salaries and employee benefits      13,581      10,552              
    Other noninterest expense           15,349      10,024              
                                        ------      ------              
      Total noninterest expense         28,930      20,576              
                                        ------      ------              
      Income before taxes                8,658      10,830              
    Income taxes                         2,780       3,825              
                                        ------      ------              
      Net income                        $5,878      $7,005              
                                        ======      ======              
                                                                        
    Basic earnings per share             $1.07       $1.37              
    Diluted earnings per share           $0.99       $1.31              
    Average basic shares             5,485,972   5,114,194              
    Average fully diluted shares     5,912,925   5,338,883              
    
    
                          SERVISFIRST BANCSHARES, INC.                     
                          CONSOLIDATED BALANCE SHEETS                      
                                 (In thousands)                            
                                            December 31,       December 31,
                                                   2009               2008 
                                             (Unaudited)          (Audited)
                                            -----------          --------- 
    ASSETS                                                                 
    Cash and due from banks                     $75,526            $53,618 
    Investment securities                       256,098            102,339 
    Restricted equity securities                  3,241              2,659 
    Federal funds sold and other                                           
     investments                                    680             19,300 
    Mortgage loans held for sale                  6,202              3,320 
                                                                           
    Loans                                     1,203,584            968,233 
    Reserve for loan losses                     (14,736)           (10,602)
                                             ----------         ---------- 
    Net loans                                 1,188,848            957,631 
    Foreclosed real estate                       12,525             10,473 
    Other assets                                 29,844             12,932 
                                             ----------         ---------- 
    Total assets                             $1,572,964         $1,162,272 
                                             ==========         ========== 
                                                                           
    LIABILITIES AND STOCKHOLDERS' EQUITY                                   
    Liabilities:                                                           
    Noninterest-bearing                        $211,348           $121,459 
    Interest-bearing                          1,221,048            915,860 
                                              ---------         ---------- 
    Total deposits                            1,432,396          1,037,319 
    Borrowings                                   40,150             35,087 
    Interest payable                              1,026              1,280 
    Other liabilities                             1,770              1,803 
                                             ----------         ---------- 
    Total liabilities                         1,475,342          1,075,489 
                                                                           
    Stockholders' equity                         97,622             86,783 
                                             ----------         ---------- 
    Total liabilities and                                                  
     stockholders' equity                    $1,572,964         $1,162,272 
                                             ==========         ========== 
    
    
    
    
    
                  SERVISFIRST BANCSHARES, INC.              
                           Key Ratios                       
                                                            
                                Three Months Ended          
                                December 31,    September 30,
                             2009         2008         2009 
                       (Unaudited)  (Unaudited)  (Unaudited)
                      -----------  -----------  ----------- 
    Return on                                               
     average assets          0.50%        0.70%        0.45%
    Return on                                               
     average equity          8.06%        8.50%        6.75%
    Net interest                                            
     margin (fully                                          
     tax equivalent)         3.33%        3.50%        3.36%
    Efficiency ratio        61.24%       56.92%       56.18%
                                                            
                       Year Ended December 31,              
                             2009         2008              
                       (Unaudited)   (Audited)               
                       -----------   ---------               
    Return on                                               
     average assets          0.43%        0.71%             
    Return on                                               
     average equity          6.33%        9.28%             
    Net interest                                            
     margin (fully                                          
     tax equivalent)         3.31%        3.70%             
    Efficiency ratio        59.93%       54.61%             
                                                            
                       12/31/2009   12/31/2008   9/30/2009  
                       (Unaudited)   (Audited)   (Unaudited) 
                       -----------   ---------   ----------- 
    Book value per                                          
     share                 $17.71       $16.15       $17.68 
    Tangible book                                           
     value per share       $17.71       $16.15       $17.68 
    % of reserve for                                        
     loan losses to                                         
     total loans             1.22%        1.09%        1.26%
    Nonperforming assets
     to total loans plus                             
     foreclosed                                           
     real estate             2.03%        2.06%        2.51%

Contact: ServisFirst Bank

Bud Foshee (205) 949-0307

BFoshee@servisfirstbank.com


SOURCE ServisFirst Bancshares, Inc.



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