EXHIBIT 99.1

PRESS RELEASE ISSUED JULY 20, 2010

  
SERVISFIRST BANCSHARES, INC.
REPORTS RECORD SECOND QUARTER 2010

Birmingham, Ala. – (PR Newswire) – July 20, 2010 – 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
 
 
 
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          
 
 
 
CONSOLIDATED BALANCE SHEETS
  
(In thousands)
  
   
   
June 30,
    
December
    
June 30,
  
   
2010
      
31, 2009
    
2009
  
   
(Unaudited)
    
(Audited)
    
(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  
 
 
 
 
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,
    
June 30,
    
March 31,
  
   
2010
    
2009
    
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 %