2014

ServisFirst Bancshares, Inc. Reports Record Third Quarter 2010

BIRMINGHAM, Ala., Oct. 18 /PRNewswire-FirstCall/ -- ServisFirst Bancshares, Inc. today reported record earnings for the quarter and nine months ended September 30, 2010.

Third Quarter 2010 Highlights:

  • Third quarter record net income of $4,799,000, a 198% increase year/year
  • 20 consecutive quarters of profitability
  • New Private Client Group from a regional bank joined Birmingham office
  • Earnings per share of $.87 for the quarter and $2.33 for nine months

"We are pleased to report record third quarter and nine months earnings.  We continue to grow our profitability by following solid banking fundamentals, and we are adding customers due to turmoil and credit issues at some of our major competitors," said Tom Broughton, President and CEO. Bud Foshee, CFO, stated, "Our improved margins and continued improvement in our efficiency ratio, combined with steady growth in deposits and loans, have contributed to our record earnings." ServisFirst Bancshares, Inc., was recently ranked 18th in the United States for efficiency by American Banker, the respected daily newspaper for the banking industry.

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.

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except shares and per share data)















Three Months Ended





September 30,


September 30,


June 30,





2010


2009


2010





(Unaudited)


(Unaudited)


(Unaudited)

Total interest income


$    19,959


$    16,092


$    18,996

Total interest expense


3,972


4,648


3,688


Net interest income before provision


15,987


11,444


15,308

Provision for loan losses


2,537


3,209


2,537


Net interest income after provision for loan losses


13,450


8,235


12,771


Total noninterest income


1,348


967


1,004










Salaries and employee benefits


3,547


3,398


3,147

Other noninterest expense


3,920


3,574


4,414


Total noninterest expense


7,467


6,972


7,561


Income before taxes


7,331


2,230


6,214

Income taxes


2,532


622


2,193


Net income


$      4,799


$      1,608


$      4,021










Basic earnings per share


$        0.87


$        0.29


$        0.73

Diluted earnings per share


$        0.77


$        0.28


$        0.65

Average basic shares


5,515,384


5,513,482


5,513,482

Average fully diluted shares


6,417,947


5,821,331


6,399,929







Nine Months Ended September 30,





2010


2009





(Unaudited)


(Unaudited)

Total interest income


$    57,457


$    45,007

Total interest expense


11,256


14,017


Net interest income before provision


46,201


30,990

Provision for loan losses


7,612


8,277


Net interest income after provision for loan losses


38,589


22,713


Total noninterest income


3,484


3,169








Salaries and employee benefits


10,176


10,354

Other noninterest expense


12,284


9,933


Total noninterest expense


22,460


20,287


Income before taxes


19,613


5,595

Income taxes


6,780


1,708


Net income


$    12,833


$      3,887








Basic earnings per share


$        2.33


$        0.71

Diluted earnings per share


$        2.11


$        0.67

Average basic shares


5,514,123


5,476,701

Average fully diluted shares


6,249,500


5,774,441



SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)



September 30,

2010


December 31,

2009


September 30,

2009





(Unaudited)


(Audited)


(Unaudited)

ASSETS







Cash and due from banks


$    149,841


$      75,526


$    186,842

Investment securities


251,838


256,098


137,624

Restricted equity securities


3,510


3,241


3,241

Federal funds sold and other investments


2,213


680


384

Mortgage loans held for sale


8,708


6,202


5,087










Loans



1,345,502


1,207,084


1,154,090

Reserve for loan losses


(16,903)


(14,911)


(14,596)

Net loans


1,328,599


1,192,173


1,139,494

Foreclosed real estate


8,170


12,525


13,453

Other assets


23,645


27,052


16,080

Total assets


$ 1,776,524


$ 1,573,497


$ 1,502,205










LIABILITIES AND STOCKHOLDERS' EQUITY







Liabilities:







Noninterest-bearing


$    224,537


$    211,307


$    175,089

Interest-bearing


1,377,020


1,221,048


1,186,394

Total deposits


1,601,557


1,432,355


1,361,483

Borrowings


55,317


40,150


40,112

Interest payable


914


1,026


1,103

Other liabilities


2,559


2,344


2,286

Total liabilities


1,660,347


1,475,875


1,404,984










Stockholders' equity


116,177


97,622


97,221

Total liabilities and stockholders' equity


$ 1,776,524


$ 1,573,497


$ 1,502,205



SERVISFIRST BANCSHARES, INC.

Key Ratios














Three Months Ended





September 30,


September 30,


June 30,





2010


2009


2010





(Unaudited)


(Unaudited)


(Unaudited)

Return on average assets


1.10%


0.45%


1.02%

Return on average equity


16.86%


6.75%


15.34%

Net interest margin (fully tax equivalent)


3.83%


3.36%


4.07%

Efficiency ratio


43.07%


56.18%


46.35%







Nine Months Ended September 30,





2010


2009





(Unaudited)


(Unaudited)

Return on average assets


1.06%


0.60%

Return on average equity


16.12%


8.60%

Net interest margin (fully tax equivalent)


4.01%


3.31%

Efficiency ratio


45.20%


59.39%







9/30/2010


9/30/2009


6/30/2010





(Unaudited)


(Unaudited)


(Unaudited)

Book value per share


$        21.05


$        17.63


$        19.78

Tangible book value per share


$        21.05


$        17.63


$        19.78

% of reserve for loan losses to total loans


1.26%


1.26%


1.22%

Nonperforming assets to total loans








plus foreclosed real estate


1.67%


2.51%


1.45%



CONTACT:

ServisFirst Bank


Bud Foshee (205) 949-0307


BFoshee@servisfirstbank.com



SOURCE ServisFirst Bancshares, Inc.



RELATED LINKS
http://www.servisfirstbancshares.com

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