ServisFirst Bancshares, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LOANS (Tables)

LOANS (Tables)

12 Months Ended

Dec. 31, 2016

The composition of loans at December 31, 2016 and 2015 is summarized as follows:

	December 31,
	2016		2015
	(In Thousands)
Commercial, financial and agricultural	$	1,982,267	$	1,760,479
Real estate - construction		335,085		243,267
Real estate - mortgage:
Owner-occupied commercial		1,171,719		1,014,669
1-4 family mortgage		536,805		444,134
Other mortgage		830,683		698,779
Total real estate - mortgage		2,539,207		2,157,582
Consumer		55,211		55,047
Total Loans		4,911,770		4,216,375
Less: Allowance for loan losses		(51,893)		(43,419)
Net Loans	$	4,859,877	$	4,172,956

Schedule Of Allowance For Loan Losses

Changes in the allowance for loan losses during the years ended December 31, 2016, 2015 and 2014, respectively are as follows:

	Years Ended December 31,
	2016		2015		2014
	(In Thousands)
Balance, beginning of year	$	43,419	$	35,629	$	30,663
Loans charged off		(5,198)		(5,744)		(5,771)
Recoveries		274		687		478
Provision for loan losses		13,398		12,847		10,259
Balance, end of year	$	51,893	$	43,419	$	35,629

Changes In Allowance For Loan Losses Segregated By Loan Type

Changes in the allowance for loan losses, segregated by loan type, during the years ended December 31, 2016 and 2015, respectively, are as follows:

	Commercial,
	financial and		Real estate -		Real estate -
	agricultural		construction		mortgage		Consumer		Total
	(In Thousands)
	Year Ended December 31, 2016
Allowance for loan losses:
Balance at December 31, 2015	$	21,495	$	5,432	$	16,061	$	431	$	43,419
Charge-offs		(3,791)		(815)		(380)		(212)		(5,198)
Recoveries		49		76		146		3		274
Provision		11,119		432		1,677		170		13,398
Balance at December 31, 2016	$	28,872	$	5,125	$	17,504	$	392	$	51,893


	December 31, 2016
Individually Evaluated for Impairment	$	6,607	$	923	$	622	$	-	$	8,152
Collectively Evaluated for Impairment		22,265		4,202		16,882		392		43,741

Loans:
Ending Balance	$	1,982,267	$	335,085	$	2,539,207	$	55,211	$	4,911,770
Individually Evaluated for Impairment		27,922		4,314		13,350		3		45,589
Collectively Evaluated for Impairment		1,954,345		330,771		2,525,857		55,208		4,866,181

	Year Ended December 31, 2015
Allowance for loan losses:
Balance at December 31, 2014	$	16,079	$	6,395	$	12,112	$	1,043	$	35,629
Charge-offs		(3,802)		(667)		(1,104)		(171)		(5,744)
Recoveries		279		238		169		1		687
Provision		8,939		(534)		4,884		(442)		12,847
Balance at December 31, 2015	$	21,495	$	5,432	$	16,061	$	431	$	43,419

	December 31, 2015
Individually Evaluated for Impairment	$	2,698	$	1,223	$	1,730	$	32	$	5,683
Collectively Evaluated for Impairment		18,797		4,209		14,331		399		37,736

Loans:
Ending Balance	$	1,760,479	$	243,267	$	2,157,582	$	55,047	$	4,216,375
Individually Evaluated for Impairment		11,513		4,052		17,880		46		33,491
Collectively Evaluated for Impairment		1,748,966		239,215		2,139,702		55,001		4,182,884

Loans By Credit Quality Indicator

Loans by credit quality indicator as of December 31, 2016 and 2015 were as follows:

			Special
December 31, 2016	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,893,664	$	61,035	$	27,568	$	-	$	1,982,267
Real estate - construction		324,958		5,861		4,266		-		335,085
Real estate - mortgage:
Owner-occupied commercial		1,158,615		6,037		7,067		-		1,171,719
1-4 family mortgage		531,868		2,065		2,872		-		536,805
Other mortgage		818,724		11,224		735		-		830,683
Total real estate - mortgage		2,509,207		19,326		10,674		-		2,539,207
Consumer		55,135		76		-		-		55,211
Total	$	4,782,964	$	86,298	$	42,508	$	-	$	4,911,770

			Special
December 31, 2015	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,701,591	$	47,393	$	11,495	$	-	$	1,760,479
Real estate - construction		233,046		6,221		4,000		-		243,267
Real estate - mortgage:
Owner-occupied commercial		988,762		18,169		7,738		-		1,014,669
1-4 family mortgage		437,834		3,301		2,999		-		444,134
Other mortgage		683,157		11,086		4,536		-		698,779
Total real estate - mortgage		2,109,753		32,556		15,273		-		2,157,582
Consumer		54,973		42		32		-		55,047
Total	$	4,099,363	$	86,212	$	30,800	$	-	$	4,216,375

Loans By Performance Status

Nonperforming loans include nonaccrual loans and loans 90 or more days past due and still accruing. Loans by performance status as of December 31, 2016 and 2015 are as follows:

December 31, 2016	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,974,975	$	7,292	$	1,982,267
Real estate - construction		331,817		3,268		335,085
Real estate - mortgage:
Owner-occupied commercial		1,165,511		6,208		1,171,719
1-4 family mortgage		536,731		74		536,805
Other mortgage		830,683		-		830,683
Total real estate - mortgage		2,532,925		6,282		2,539,207
Consumer		55,166		45		55,211
Total	$	4,894,883	$	16,887	$	4,911,770

December 31, 2015	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,758,561	$	1,918	$	1,760,479
Real estate - construction		239,267		4,000		243,267
Real estate - mortgage:
Owner-occupied commercial		1,014,669		-		1,014,669
1-4 family mortgage		443,936		198		444,134
Other mortgage		697,160		1,619		698,779
Total real estate - mortgage		2,155,765		1,817		2,157,582
Consumer		55,015		32		55,047
Total	$	4,208,608	$	7,767	$	4,216,375

Loans By Past Due Status

Loans by past due status as of December 31, 2016 and 2015 are as follows:

December 31, 2016	Past Due Status (Accruing Loans)
							Total Past
	30-59 Days		60-89 Days		90+ Days		Due		Non-Accrual		Current		Total Loans
	(In Thousands)
Commercial, financial and agricultural	$	710	$	40	$	10	$	760	$	7,282	$	1,974,225	$	1,982,267
Real estate - construction		59		-		-		59		3,268		331,758		335,085
Real estate - mortgage:
Owner-occupied commercial		-		-		6,208		6,208		-		1,165,511		1,171,719
1-4 family mortgage		160		129		-		289		74		536,442		536,805
Other mortgage		95		811		-		906		-		829,777		830,683
Total real estate - mortgage		255		940		6,208		7,403		74		2,531,730		2,539,207
Consumer		52		17		45		114		-		55,097		55,211
Total	$	1,076	$	997	$	6,263	$	8,336	$	10,624	$	4,892,810	$	4,911,770

December 31, 2015	Past Due Status (Accruing Loans)
							Total Past
	30-59 Days		60-89 Days		90+ Days		Due		Non-Accrual		Current		Total Loans
	(In Thousands)
Commercial, financial and agricultural	$	50	$	35	$	-	$	85	$	1,918	$	1,758,476	$	1,760,479
Real estate - construction		198		12		-		210		4,000		239,057		243,267
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		-		1,014,669		1,014,669
1-4 family mortgage		-		210		-		210		198		443,726		444,134
Other mortgage		-		-		-		-		1,619		697,160		698,779
Total real estate - mortgage		-		210		-		210		1,817		2,155,555		2,157,582
Consumer		45		6		1		52		31		54,964		55,047
Total	$	293	$	263	$	1	$	557	$	7,766	$	4,208,052	$	4,216,375

Details Of Company's Impaired Loans

The following table presents details of the Company’s impaired loans as of December 31, 2016 and 2015, respectively. Loans which have been fully charged off do not appear in the tables.

			December 31, 2016
			Unpaid				Average		Interest Income
	Recorded		Principal		Related		Recorded		Recognized
	Investment		Balance		Allowance		Investment		in Period

	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,003	$	1,003	$	-	$	992	$	64
Real estate - construction		938		1,802		-		1,159		3
Real estate - mortgage:
Owner-occupied commercial		2,615		2,778		-		2,884		166
1-4 family mortgage		1,899		1,899		-		1,901		102
Other mortgage		940		940		-		965		60
Total real estate - mortgage		5,454		5,617		-		5,750		328
Consumer		3		5		-		6		-
Total with no allowance recorded		7,398		8,427		-		7,907		395

With an allowance recorded:
Commercial, financial and agricultural		26,919		31,728		6,607		26,955		1,162
Real estate - construction		3,376		3,376		923		3,577		68
Real estate - mortgage:
Owner-occupied commercial		6,924		6,924		348		6,934		362
1-4 family mortgage		972		972		274		313		19
Other mortgage		-		-		-		-		-
Total real estate - mortgage		7,896		7,896		622		7,247		381
Consumer		-		-		-		-		-
Total with allowance recorded		38,191		43,000		8,152		37,779		1,611

Total Impaired Loans:
Commercial, financial and agricultural		27,922		32,731		6,607		27,947		1,226
Real estate - construction		4,314		5,178		923		4,736		71
Real estate - mortgage:
Owner-occupied commercial		9,539		9,702		348		9,818		528
1-4 family mortgage		2,871		2,871		274		2,214		121
Other mortgage		940		940		-		965		60
Total real estate - mortgage		13,350		13,513		622		12,997		709
Consumer		3		5		-		6		-
Total impaired loans	$	45,589	$	51,427	$	8,152	$	45,686	$	2,006

			December 31, 2015
			Unpaid				Average		Interest Income
	Recorded		Principal		Related		Recorded		Recognized in
	Investment		Balance		Allowance		Investment		Period

	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	478	$	487	$	-	$	482	$	24
Real estate - construction		161		163		-		370		1
Real estate - mortgage:
Owner-occupied commercial		3,980		4,140		-		3,815		214
1-4 family mortgage		2,396		2,572		-		2,409		147
Other mortgage		4,079		4,694		-		4,559		222
Total real estate - mortgage		10,455		11,406		-		10,783		583
Consumer		14		20		-		18		1
Total with no allowance recorded		11,108		12,076		-		11,653		609

With an allowance recorded:
Commercial, financial and agricultural		11,035		13,035		2,698		13,882		672
Real estate - construction		3,891		4,370		1,223		3,920		-
Real estate - mortgage:
Owner-occupied commercial		6,365		6,365		1,328		9,958		568
1-4 family mortgage		603		603		263		567		19
Other mortgage		457		457		139		880		17
Total real estate - mortgage		7,425		7,425		1,730		11,405		604
Consumer		32		32		32		34		-
Total with allowance recorded		22,383		24,862		5,683		29,241		1,276

Total Impaired Loans:
Commercial, financial and agricultural		11,513		13,522		2,698		14,364		696
Real estate - construction		4,052		4,533		1,223		4,290		1
Real estate - mortgage:
Owner-occupied commercial		10,345		10,505		1,328		13,773		782
1-4 family mortgage		2,999		3,175		263		2,976		166
Other mortgage		4,536		5,151		139		5,439		239
Total real estate - mortgage		17,880		18,831		1,730		22,188		1,187
Consumer		46		52		32		52		1
Total impaired loans	$	33,491	$	36,938	$	5,683	$	40,894	$	1,885

Analysis Of Troubled Debt Restructuring

The following tables present loans modified in a TDR during the periods presented by portfolio segment and the financial impact of those modifications. The tables include modifications made to new TDRs, as well as renewals of existing TDRs.

	Year Ended December 31, 2016
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
	(In Thousands)
Troubled Debt Restructurings
Commercial, financial and agricultural		9	$	7,099	$	7,099
Real estate - construction		-		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		-
1-4 family mortgage		-		-		-
Other mortgage		1		234		234
Total real estate - mortgage		1		234		234
Consumer		-		-		-
		10	$	7,333	$	7,333

	Year ended December 31, 2015
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment

Commercial, financial and agricultural		8	$	6,618	$	6,618
Real estate - construction		-		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		-
1-4 family mortgage		-		-		-
Other mortgage		1		253		253
Total real estate - mortgage		1		253		253
Consumer		-		-		-
		9	$	6,871	$	6,871

The following table presents TDRs by portfolio segment which defaulted during the years ended December 31, 2016 and 2015, and which were modified in the previous twelve months (i.e., the twelve months prior to default). For purposes of this disclosure default is defined as 90 days past due and still accruing or placement on nonaccrual status.

	Year Ended December 31,
	2016		2015
Defaulted during the period, where modified in a TDR twelve months prior to default
Commercial, financial and agricultural	$	6,734	$	-
Real estate - construction		-		-
Real estate - mortgage:
Owner occupied commercial		-		-
1-4 family mortgage		-		-
Other mortgage		-		-
Total real estate - mortgage		-		-
Consumer		-		-
	$	6,734	$	-

Schedule Of Changes In Related Party Loans

Changes in related party loans for the years ended December 31, 2016 and 2015 are as follows:

	Years Ended December 31,
	2016		2015
	(In Thousands)
Balance, beginning of year	$	12,090	$	13,083
Advances		9,763		15,442
Repayments		(11,047)		(16,435)
Balance, end of year	$	10,806	$	12,090