ServisFirst Bancshares, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

EMPLOYEE AND DIRECTOR BENEFITS (Tables)

EMPLOYEE AND DIRECTOR BENEFITS (Tables)

6 Months Ended

Jun. 30, 2012

Assumptions Used To Estimates Fair Value Of Stock Option Award Using Black Scholes Merton Valuation Model

The Company estimates the fair value of each stock option award using a Black-Scholes-Merton valuation model that uses the assumptions noted in the following table. Expected volatilities are based on an index of southeastern United States publicly traded banks. The expected term for options granted is based on the short-cut method and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U. S. Treasury yield curve in effect at the time of grant.

	2012			2011
Expected volatility		20.00	%		29.00	%
Expected dividends		-	%		0.50	%
Expected term (in years)		6 years			7 years
Risk-free rate		1.02	%		2.70	%

Summary Of Stock Option Activity

The following table summarizes stock option activity during the six months ended June 30, 2012 and June 30, 2011:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term (years)		Value
								(In Thousands)
Six Months Ended June 30, 2012:
Outstanding at January 1, 2012		1,073,800		$	18.33		6.0	$	12,508
Granted		36,500			30.00		9.7		-
Exercised		(52,136	)		11.00		3.6		991
Outstanding at June 30, 2012		1,058,164			19.11		5.8	$	11,527

Exercisable at June 30, 2012		434,706		$	13.31		3.9	$	7,257

Six Months Ended June 30, 2011:
Outstanding at January 1, 2011		881,000		$	15.65		6.9	$	8,238
Granted		166,500			26.05		9.6		-
Exercised		(5,000	)		10.50		4.4		98
Outstanding at June 30, 2011		1,042,500			17.34		6.2	$	13,203

Exercisable at June 30, 2011		332,459		$	12.71		4.8	$	5,748

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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