ServisFirst Bancshares, Inc. Reports Record Second Quarter 2010

BIRMINGHAM, Ala., July 20 /PRNewswire-FirstCall/ -- ServisFirst Bancshares, Inc. today reported earnings for the quarter and six months ended June 30, 2010.

Second Quarter 2010 Highlights:

  • Second quarter record net income of $4,021,000, a 158% increase year/year
  • 19 consecutive quarters of profitability
  • Deposit growth of 26% year/ year, with no brokered deposits

Bud Foshee, CFO, stated, "We are pleased to report record earnings for the quarter, which is the result of marked improvement in the net interest margin and efficiency ratio over the second quarter of 2009." Tom Broughton, President and CEO, said, "Our deposit growth continues to be strong due to the 'flight to quality' by depositors." Broughton added, "ServisFirst Montgomery has reached $300 million in assets in three years, and ServisFirst Dothan has reached $200 million in assets in less than two years.  We are very proud of their success."

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 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,


June 30,


March 31,




2010


2009


2010




(Unaudited)


(Unaudited)


(Unaudited)

Total interest income


$      18,996


$      14,979


$      18,502

Total interest expense


3,688


4,478


3,596


Net interest income before provision


15,308


10,501


14,906

Provision for loan losses


2,537


2,608


2,712


Net interest income after provision for loan losses


12,771


7,893


12,194


Total noninterest income


1,004


1,282


1,132









Salaries and employee benefits


3,147


3,590


3,482

Other noninterest expense


4,414


3,292


3,776


Total noninterest expense


7,561


6,882


7,258


Income before taxes


6,214


2,293


6,068

Income taxes


2,193


734


2,055


Net income


$        4,021


$        1,559


$        4,013









Basic earnings per share


$          0.73


$          0.28


$          0.73

Diluted earnings per share


$          0.65


$          0.27


$          0.68

Average basic shares


5,513,482


5,513,482


5,513,482

Average fully diluted shares


6,399,929


5,809,655


5,901,778












Six Months Ended June 30,






2010


2009






(Unaudited)


(Unaudited)



Total interest income


$      37,498


$      28,915



Total interest expense


7,284


9,369




Net interest income before provision


30,214


19,546



Provision for loan losses


5,075


5,068




Net interest income after provision for loan losses


25,139


14,478




Total noninterest income


2,136


2,202






.





Salaries and employee benefits


6,629


6,956



Other noninterest expense


8,364


6,359




Total noninterest expense


14,993


13,315




Income before taxes


12,282


3,365



Income taxes


4,248


1,086




Net income


$        8,034


$        2,279











Basic earnings per share


$          1.46


$          0.42



Diluted earnings per share


$          1.33


$          0.40



Average basic shares


5,513,482


5,458,006



Average fully diluted shares


6,159,841


5,750,527





SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)











June 30,

2010

(Unaudited)


December 31,

2009

(Audited)


June 30,

2009

(Unaudited)

ASSETS








Cash and due from banks


$                127,102


$                    75,526


$                    19,490

Investment securities


236,467


256,098


111,814

Restricted equity securities


3,510


3,241


3,241

Federal funds sold and other investments


148


680


76,978

Mortgage loans held for sale


4,462


6,202


8,023










Loans



1,288,410


1,207,084


1,111,744

Reserve for loan losses


(15,713)


(14,911)


(13,567)

Net loans


1,272,697


1,192,173


1,098,177

Foreclosed real estate


10,773


12,525


9,239

Other assets


27,466


27,052


15,381

Total assets


$             1,682,625


$               1,573,497


$               1,342,343










LIABILITIES AND STOCKHOLDERS' EQUITY







Liabilities:







Noninterest-bearing


$                188,657


$                  211,307


$                  139,169

Interest-bearing


1,326,247


1,221,048


1,067,316

Total deposits


1,514,904


1,432,355


1,206,485

Borrowings


55,278


40,150


40,073

Interest payable


887


1,026


1,071

Other liabilities


2,510


2,344


1,822

Total liabilities


1,573,579


1,475,875


1,249,451










Stockholders' equity


109,046


97,622


92,892

Total liabilities and stockholders' equity


$             1,682,625


$               1,573,497


$               1,342,343






























SERVISFIRST BANCSHARES, INC.

Key Ratios





Three Months Ended





June 30,


June 30,


March 31,





2010


2009


2010





(Unaudited)


(Unaudited)


(Unaudited)

Return on average assets


1.02%


0.48%


1.06%

Return on average equity


15.34%


6.77%


16.24%

Net interest margin (fully tax equivalent)


4.07%


3.39%


4.14%

Efficiency ratio


46.35%


58.41%


45.26%

























Six Months Ended June 30,







2010


2009







(Unaudited)


(Unaudited)



Return on average assets


1.04%


0.37%



Return on average equity


15.77%


5.10%



Net interest margin (fully tax equivalent)


4.11%


3.30%



Efficiency ratio


46.35%


61.22%

















Three Months Ended



June 30,

2010


June 30,

2009


March 31,

2010



(Unaudited)


(Unaudited)


(Unaudited)

Book value per share


$                    19.78


$                      16.85


$                      18.51

Tangible book value per share


$                    19.78


$                      16.85


$                      18.51

% of reserve for loan losses to total loans


1.22%


1.22%


1.24%

Nonperforming assets to total loans








plus foreclosed real estate


1.45%


2.18%


2.02%



SOURCE ServisFirst Bancshares, Inc.



RELATED LINKS
http://www.servisfirstbancshares.com

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