Unassociated Document

“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.

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.

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	%