EXHIBIT 99.1

PRESS RELEASE ISSUED JANUARY 20, 2011

SERVISFIRST BANCSHARES, INC.
Announces Record Earnings For 2010

Birmingham, Ala. – (PR Newswire) – January 20, 2011 – ServisFirst Bancshares, Inc. today reported record earnings for the quarter and year ended December 31, 2010.

2010 and Fourth Quarter Highlights:

§
2010 net income of $17.4 million, a 196% increase over 2009
§
Fourth quarter net income increase of 128% year/year
§
$3.15 earnings per share for 2010, a 194% increase year/year
§
21 consecutive quarters of profitability

Tom Broughton, President and CEO, said “We are proud to report record earnings in 2010, as well as continued  solid deposit growth with a 23% increase in deposits during 2010. We are very pleased with our growth in new and expanded core relationships with businesses, professionals and consumers.” Bud Foshee, CFO, stated, “Our strong financial performance reflects not only higher interest income, but also disciplined expense management and margin improvement over 2009.”

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
 
   
December 31,
   
September 30,
 
   
2010
   
2009
   
2010
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
Total interest income
  $ 20,689     $ 17,189     $ 19,959  
Total interest expense
    4,004       4,320       3,972  
Net interest income before provision
    16,685       12,869       15,987  
Provision for loan losses
    2,738       2,408       2,537  
Net interest income after provision for loan losses
    13,947       10,461       13,450  
Total noninterest income
    1,685       1,244       1,348  
                         
Salaries and employee benefits
    4,493       3,227       3,547  
Other noninterest expense
    4,016       5,416       3,920  
Total noninterest expense
    8,509       8,643       7,467  
Income before taxes
    7,123       3,062       7,331  
Income taxes
    2,578       1,072       2,532  
Net income
  $ 4,545     $ 1,990     $ 4,799  
                         
Basic earnings per share
  $ 0.82     $ 0.37     $ 0.87  
Diluted earnings per share
  $ 0.73     $ 0.34     $ 0.77  
Average basic shares
    5,525,297       5,513,482       5,515,384  
Average fully diluted shares
    6,427,228       5,828,820       6,417,947  

   
Year Ended December 31,
       
   
2010
   
2009
       
   
(Unaudited)
   
(Audited)
       
Total interest income
  $ 78,146     $ 62,197  
Total interest expense
    15,260       18,337          
Net interest income before provision
    62,886       43,860  
Provision for loan losses
    10,350       10,685          
Net interest income after provision for loan losses
    52,536       33,175  
Total noninterest income
    5,169       4,413          
                 
Salaries and employee benefits
    14,669       13,581          
Other noninterest expense
    16,300       15,349  
Total noninterest expense
    30,969       28,930          
Income before taxes
    26,736       8,658  
Income taxes
    9,358       2,780          
Net income
  $ 17,378     $ 5,878  
                         
Basic earnings per share
  $ 3.15     $ 1.07  
Diluted earnings per share
  $ 2.84     $ 1.02          
Average basic shares
    5,519,151       5,485,972  
Average fully diluted shares
    6,294,604       5,787,643          
 
 

 

SERVISFIRST BANCSHARES, INC.
 
CONSOLIDATED BALANCE SHEETS
 
(In thousands)
 
                   
   
December 31, 2010
   
December 31, 2009
   
September 30, 2010
 
   
(Unaudited)
   
(Audited)
   
(Unaudited)
 
ASSETS
                 
Cash and due from banks
  $ 231,732     $ 75,526     $ 149,841  
Investment securities
    282,193       256,098       251,838  
Restricted equity securities
    3,510       3,241       3,510  
Federal funds sold and other investments
    346       680       2,213  
Mortgage loans held for sale
    7,875       6,202       8,708  
                         
Loans
    1,394,818       1,207,084       1,345,502  
Reserve for loan losses
    (18,077 )     (14,911 )     (16,903 )
Net loans
    1,376,741       1,192,173       1,328,599  
Foreclosed real estate
    6,966       12,525       8,170  
Other assets
    25,803       27,052       23,645  
Total assets
  $ 1,935,166     $ 1,573,497     $ 1,776,524  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                       
Liabilities:
                       
Noninterest-bearing
  $ 250,490     $ 211,307     $ 224,537  
Interest-bearing
    1,508,226       1,221,048       1,377,020  
Total deposits
    1,758,716       1,432,355       1,601,557  
Borrowings
    55,357       40,150       55,317  
Interest payable
    898       1,026       914  
Other liabilities
    3,095       2,344       2,559  
Total liabilities
    1,818,066       1,475,875       1,660,347  
                         
Stockholders' equity
    117,100       97,622       116,177  
Total liabilities and stockholders' equity
  $ 1,935,166     $ 1,573,497     $ 1,776,524  
 
 

 

SERVISFIRST BANCSHARES, INC.
 
Key Ratios
 
                   
   
Three Months Ended
 
   
December 31,
   
September 30,
 
   
2010
   
2009
   
2010
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
Return on average assets
    0.97 %     0.50 %     1.10 %
Return on average equity
    15.24 %     8.06 %     16.86 %
Net interest margin (fully tax equivalent)
    3.73 %     3.33 %     3.83 %
Efficiency ratio
    46.32 %     61.24 %     43.08 %


   
Year Ended December 31,
       
   
2010
   
2009
       
   
(Unaudited)
   
(Audited)
       
Return on average assets
    1.04 %     0.43 %  
Return on average equity
    15.86 %     6.33 %        
Net interest margin (fully tax equivalent)
    3.94 %     3.31 %  
Efficiency ratio
    45.51 %     59.57 %        


   
12/31/2010
   
12/31/2009
   
9/30/2010
 
   
(Unaudited)
   
(Audited)
   
(Unaudited)
 
Book value per share
  $ 21.19     $ 17.71     $ 21.05  
Tangible book value per share
  $ 21.19     $ 17.71     $ 21.05  
% of reserve for loan losses to total loans
    1.30 %     1.24 %     1.26 %
Nonperforming assets to total loans
                       
plus foreclosed real estate
    1.52 %     2.03 %     1.67 %