EXHIBIT 99.1

PRESS RELEASE ISSUED OCTOBER 19, 2009


  
SERVISFIRST BANCSHARES, INC.
REPORTS THIRD QUARTER 2009 EARNINGS

Birmingham, Ala. – (BUSINESS WIRE) – October 19, 2009 – ServisFirst Bancshares, Inc. today reported earnings for the quarter and nine months ending September 30, 2009.
 

Third Quarter 2009 Highlights:

§  
Net income of $1.608 million
§  
Deposits grew 13% in the quarter and 43% year/year, with no brokered deposits
§  
Total assets exceed $1.5 billion
§  
Tier 2 capital in Bank exceeds $127 million

“We are pleased to report a positive earnings trend in the third quarter, the third consecutive quarter of improvement,” said Bud Foshee, CFO. “In particular, we are very pleased with the Dothan Region, which has reached profitability ahead of our projections,” Foshee added.
 
Tom Broughton, President and CEO, said “We are proud that we have reported sixteen consecutive quarters of profits, going back to our sixth month of operation in October 2005. Very few banks have been able to achieve such consistent profitability in today’s environment, and we are grateful for the strong support of our customers and shareholders.”
 

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
 
 
 
 

CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except shares and per share data)
 
   
Three Months Ended
  
   
September 30,
    
June 30,
  
   
2009
    
2008
    
2009
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
  
Total interest income
   $ 16,092     $ 13,881     $ 14,979  
Total interest expense
     4,648       5,004       4,478  
Net interest income before provision
     11,444       8,877       10,501  
Provision for loan losses
     3,209       1,381       2,608  
Net interest income
     8,235       7,496       7,893  
Total noninterest income
     967       672       1,282  
                         
Salaries and employee benefits
     3,398       2,684       3,590  
Other noninterest expense
     3,574       2,777       3,292  
Total noninterest expense
     6,972       5,461       6,882  
Income before taxes
     2,230       2,707       2,293  
Income taxes
     622       983       734  
Net income
   $ 1,608     $ 1,724     $ 1,559  
                         
Basic earnings per share
   $ 0.29     $ 0.34     $ 0.28  
Diluted earnings per share
   $ 0.28     $ 0.32     $ 0.27  
Average basic shares
     5,513,482       5,113,482       5,513,482  
Average fully diluted shares
     5,821,331       5,343,930       5,809,655  
 
 
 
 
 
   
Nine Months Ended September 30,
  
   
2009
    
2008
  
   
(Unaudited)
    
(Unaudited)
  
Total interest income
   $ 45,007     $ 41,057  
Total interest expense
     14,017       15,399  
Net interest income before provision
     30,990       25,658  
Provision for loan losses
     8,277       4,900  
Net interest income
     22,713       20,758  
Total noninterest income
     3,169       1,911  
                 
Salaries and employee benefits
     10,354       7,910  
Other noninterest expense
     9,933       6,911  
Total noninterest expense
     20,287       14,821  
Income before taxes
     5,595       7,848  
Income taxes
     1,708       2,803  
Net income
   $ 3,887     $ 5,045  
                 
Basic earnings per share
   $ 0.71     $ 0.99  
Diluted earnings per share
   $ 0.67     $ 0.95  
Average basic shares
     5,476,701       5,113,482  
Average fully diluted shares
     5,774,441       5,338,493  
 
 
 
 

SERVISFIRST BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
   
September 30, 2009
    
September 30, 2008
    
December 31, 2008
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
ASSETS
                  
Cash and due from banks
   $ 186,842     $ 28,766     $ 53,618  
Investment securities
     138,038       90,139       102,339  
Restricted equity securities
     3,241       2,659       2,659  
Federal funds sold and other investments
     384       30,022       19,300  
Mortgage loans held for sale
     5,087       4,060       3,320  
                         
Loans
     1,154,090       898,826       968,233  
Reserve for loan losses
     (14,596 )     (10,384 )     (10,602 )
Net loans
     1,139,494       888,442       957,631  
Foreclosed real estate
     13,453       8,211       10,473  
Other assets
     15,939       12,609       12,932  
Total assets
   $ 1,502,478     $ 1,064,908     $ 1,162,272  
                         
LIABILITIES
                        
Liabilities:
                        
Noninterest-bearing
   $ 175,089     $ 105,884     $ 121,459  
Interest-bearing
     1,186,394       844,854       915,860  
Total deposits
     1,361,483       950,738       1,037,319  
Borrowings
     40,112       35,052       35,087  
Interest payable
     1,103       1,190       1,280  
Other liabilities
     2,286       1,170       1,803  
Total liabilities
     1,404,984       988,150       1,075,489  
                         
Stockholders' equity
     97,494       76,758       86,783  
Total liabilities and stockholders' equity
   $ 1,502,478     $ 1,064,908     $ 1,162,272  

 
 
 
 
SERVISFIRST BANCSHARES, INC.
Key Ratios
 
 
   
Three Months Ended
   
September 30,
  
June 30,
   
2009
    
2008
  
2009
   
(Unaudited)
    
(Unaudited)
  
(Unaudited)
Return on average assets
     0.45 %     0.71 %   0.48 %
Return on average equity
     6.75 %     8.99 %   6.77 %
Net interest margin (fully tax equivalent)
     3.36 %     3.66 %   3.39 %
Efficiency ratio
     56.18 %     57.19 %   58.41 %
                         
   
Nine Months Ended September 30,
          
   
2009
    
2008
          
   
(Unaudited)
    
(Unaudited)
          
Return on average assets
     0.60 %     0.85 %        
Return on average equity
     8.60 %     8.97 %        
Net interest margin (fully tax equivalent)
     3.31 %     3.80 %        
Efficiency ratio
     59.39 %     53.76 %        
                         
   
9/30/2009
    
9/30/2008
  
6/30/2009
   
(unaudited)
    
(unaudited)
  
(unaudited)
Book value per share
   $ 17.68     $ 14.91   $ 16.85  
Tangible book value per share
   $ 17.68     $ 14.91   $ 16.85  
% of reserve for loan losses to total loans
     1.26 %     1.16 %   1.22 %
Nonperforming assets to total loans
                        
plus foreclosed real estate
     2.51 %     1.69 %   2.18 %