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

Quarterly report pursuant to Section 13 or 15(d)

LOANS

LOANS

9 Months Ended

Sep. 30, 2011

NOTE 5 – LOANS

The following table details the Company’s loans at September 30, 2011 and December 31, 2010:

	September 30, 2011			December 31, 2010
	(Dollars In Thousands)
Commercial, financial and agricultural	$	699,616		$	536,620
Real estate - construction		160,171			172,055
Real estate - mortgage:
Owner-occupied commercial		364,590			270,767
1-4 family mortgage		204,866			199,236
Other mortgage		223,294			178,793
Subtotal: Real estate - mortgage		792,750			648,796
Consumer		42,939			37,347
Total Loans		1,695,476			1,394,818
Less: Allowance for loan losses		(21,466	)		(18,077	)
Net Loans	$	1,674,010		$	1,376,741

Commercial, financial and agricultural		41.26	%		38.47	%
Real estate - construction		9.45	%		12.34	%
Real estate - mortgage:
Owner-occupied commercial		21.50	%		19.41	%
1-4 family mortgage		12.09	%		14.28	%
Other mortgage		13.17	%		12.82	%
Subtotal: Real estate - mortgage		46.76	%		46.51	%
Consumer		2.53	%		2.68	%
Total Loans		100.00	%		100.00	%

Loans by credit quality indicator as of September 30, 2011 were as follows:

	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial
and agricultural	$	678,924	$	11,980	$	8,712	$	-	$	699,616
Real estate - construction		125,811		12,638		21,722		-		160,171
Real estate - mortgage:
Owner-occupied
commercial		351,031		7,693		5,866		-		364,590
1-4 family mortgage		194,254		4,870		5,742		-		204,866
other mortgage		214,791		5,030		3,473		-		223,294
Total real estate mortgage		760,076		17,593		15,081		-		792,750
Consumer		41,741		101		1,097		-		42,939
Total	$	1,606,552	$	42,312	$	46,612	$	-	$	1,695,476

Loans by performance status as of September 30, 2011 were as follows:

	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	698,576	$	1,040	$	699,616
Real estate - construction		146,031		14,140		160,171
Real estate - mortgage:
Owner-occupied commercial		363,968		622		364,590
1-4 family mortgage		203,404		1,462		204,866
other mortgage		222,716		578		223,294
Total real estate mortgage		790,088		2,662		792,750
Consumer		42,360		579		42,939
Total	$	1,677,055	$	18,421	$	1,695,476

Loans by past-due status as of September 30, 2011 were as follows:

	Past Due Status (Accruing Loans)
	30-59 Days		60-89 Days		90+ Days		Total Past Due		Non-Accrual		Current		Total Loans
	(In Thousands)
Commercial, financial and agricultural	$	604	$	-	$	-	$	604	$	1,040	$	697,972	$	699,616
Real estate - construction		480		-		500		980		13,640		145,551		160,171
Real estate - mortgage:
Owner-occupied commercial		1,593		-		-		1,593		622		362,375		364,590
1-4 family mortgage		278		-		291		569		1,171		203,126		204,866
Other mortgage		751		-		578		1,329		-		221,965		223,294
Total real estate - mortgage		2,622		-		869		3,491		1,793		787,466		792,750
Consumer		-		6		-		6		579		42,354		42,939
Total	$	3,706	$	6	$	1,369	$	5,081	$	17,052	$	1,673,343	$	1,695,476

The following table presents an analysis of the allowance for loan losses by portfolio segment as of September 30, 2011 and December 31, 2010. The total allowance for loan losses is disaggregated into those amounts associated with loans individually evaluated and those associated with loans collectively evaluated.

	Commercial, financial and agricultural			Real estate - construction			Real estate - mortgage			Consumer			Unallocated		Total
	(In Thousands)
	Three Months Ended September 30, 2011
Allowance for loan losses:
Balance at June 30, 2011	$	5,809		$	6,468		$	3,185		$	566		$	3,488	$	19,516
Chargeoffs		(37	)		(678	)		(88	)		(11	)		-		(814	)
Recoveries		12			10			1			1			-		24
Provision		464			479			964			482			351		2,740
Balance at September 30, 2011	$	6,248		$	6,279		$	4,062		$	1,038		$	3,839	$	21,466

	Nine Months Ended September 30, 2011
Allowance for loan losses:
Balance at December 31, 2010	$	5,348		$	6,373		$	2,443		$	749		$	3,164	$	18,077
Chargeoffs		(897	)		(1,999	)		(103	)		(340	)		-		(3,339	)
Recoveries		12			174			2			75			-		263
Provision		1,785			1,731			1,720			554			675		6,465
Balance at September 30, 2011	$	6,248		$	6,279		$	4,062		$	1,038		$	3,839	$	21,466

	September 30, 2011
Individually Evaluated for Impairment	$	1,249		$	1,809		$	1,741		$	828		$	-	$	5,627
Collectively Evaluated for Impairment		4,999			4,470			2,321			210			3,839		15,839

Loans:
Ending Balance	$	699,616		$	160,171		$	792,750		$	42,939				$	1,695,476
Individually Evaluated for Impairment		8,712			21,722			15,081			1,097					46,612
Collectively Evaluated for Impairment		690,904			138,449			777,669			41,842					1,648,864

	December 31, 2010
	Commercial, financial and agricultural			Real estate - construction			Real estate - mortgage			Consumer			Unallocated		Total

Allowance for loan losses:	$	5,348		$	6,373		$	2,443		$	749		$	3,164	$	18,077

Individually Evaluated for Impairment	$	1,602		$	1,855		$	415		$	554		$	-	$	4,426
Collectively Evaluated for Impairment		3,746			4,518			2,028			195			3,164		13,651

Loans:
Ending Balance	$	536,620		$	172,055		$	648,796		$	37,347				$	1,394,818
Individually Evaluated for Impairment		14,018			28,710			15,093			1,319					59,140
Collectively Evaluated for Impairment		522,602			143,345			633,703			36,028					1,335,678

The following table presents details of the Company’s impaired loans as of September 30, 2011 and December 31, 2010, respectively. Loans which have been fully charged off do not appear in the tables.

September 30, 2011
							For the three months ended September 30, 2011				For the nine months ended September 30, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized in Period		Average Recorded Investment		Interest Income Recognized in Period
	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,655	$	1,705	$	-	$	1,758	$	21	$	1,679	$	62
Real estate - construction		16,026		17,132		-		17,541		90		17,367		335
Real estate - mortgage:
Owner-occupied commercial		2,334		2,334		-		2,352		43		2,358		120
1-4 family mortgage		725		725		-		630		3		655		14
Other mortgage		1,928		1,929		-		1,862		24		1,883		80
Total real estate - mortgage		4,987		4,988		-		4,844		70		4,896		214
Consumer		173		173		-		173		2		173		5
Total with no allowance recorded		22,841		23,998		-		24,316		183		24,115		616

With an allowance recorded:
Commercial, financial and agricultural		5,212		5,212		1,249		5,501		73		5,480		225
Real estate - construction		5,696		5,696		1,809		6,141		4		6,085		75
Real estate - mortgage:
Owner-occupied commercial		3,184		3,184		117		3,141		62		3,156		199
1-4 family mortgage		4,552		4,589		1,624		4,710		37		4,670		127
Other mortgage		334		334		-		339		6		339		18
Total real estate - mortgage		8,070		8,107		1,741		8,190		105		8,165		344
Consumer		894		914		828		975		4		946		16
Total with allowance recorded		19,872		19,929		5,627		20,807		186		20,676		660

Total Impaired Loans:
Commercial, financial and agricultural		6,867		6,917		1,249		7,259		94		7,159		287
Real estate - construction		21,722		22,828		1,809		23,682		94		23,452		410
Real estate - mortgage:
Owner-occupied commercial		5,518		5,518		117		5,493		105		5,514		319
1-4 family mortgage		5,277		5,314		1,624		5,340		40		5,325		141
Other mortgage		2,262		2,263		-		2,201		30		2,222		98
Total real estate - mortgage		13,057		13,095		1,741		13,034		175		13,061		558
Consumer		1,067		1,087		828		1,148		6		1,119		21
Total impaired loans	$	42,713	$	43,927	$	5,627	$	45,123	$	369	$	44,791	$	1,276

December 31, 2010
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	2,345	$	2,930	$	-
Real estate - construction		10,532		12,705		-
Real estate - mortgage:
Owner-occupied commercial		1,614		1,801		-
1-4 family mortgage		511		511		-
Other mortgage		1,817		1,817		-
Total real estate - mortgage		3,942		4,129		-
Consumer		289		289		-
Total with no allowance recorded		17,108		20,053		-

With an allowance recorded:
Commercial, financial and agricultural		9,190		9,190		1,602
Real estate - construction		18,178		18,428		1,855
Real estate - mortgage:
Owner-occupied commercial		3,373		3,373		55
1-4 family mortgage		2,995		2,995		360
Other mortgage		-		-		-
Total real estate - mortgage		6,368		6,368		415
Consumer		704		704		554
Total with allowance recorded		34,440		34,690		4,426

Total Impaired Loans:
Commercial, financial and agricultural		11,535		12,120		1,602
Real estate - construction		28,710		31,133		1,855
Real estate - mortgage:
Owner-occupied commercial		4,988		5,174		55
1-4 family mortgage		3,506		3,506		360
Other mortgage		1,817		1,817		-
Total real estate - mortgage		10,311		10,497		415
Consumer		993		993		554
Total impaired loans	$	51,549	$	54,743	$	4,426

During the third quarter of 2011, the Company adopted the provisions of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2011-02, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring (“TDR”). Management applied the guidance on determining whether any restructurings that occurred from January 1, 2011 or later met the definition of a TDR. TDRs at September 30, 2011, December 31, 2010 and September 30, 2010 totaled $4.5 million, $2.4 million and $0.7 million, respectively. At September 30, 2011, the Company had a related allowance for loan losses of $297,000 allocated to these TDRs, compared to $486,000 at December 31, 2010 and $0 at September 30, 2010. All loans classified as TDRs as of September 30, 2011 are performing as agreed under the terms of their restructured plans. For the three and nine month periods ended September 30, 2011 and September 30, 2010, there were no loans modified as a TDR within the preceding twelve months for which there was a payment default during the period. The following table presents an analysis of TDRs as of September 30, 2011 and September 30, 2010.

	September 30, 2011						September 30, 2010
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(In Thousands)
Troubled Debt Restructurings
Commercial, financial and agricultural		5	$	1,831	$	1,831		-	$	-	$	-
Real estate - construction		-		-		-		-		-		-
Real estate - mortgage:
Owner-occupied commercial		1		2,357		2,357		1		660		660
1-4 family mortgage		-		-		-		-		-		-
Other mortgage		1		334		334		-		-		-
Total real estate mortgage		2		2,691		2,691		1		660		660
Consumer		-		-		-		-		-		-
		7	$	4,522	$	4,522		1	$	660	$	660

- Definition

The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5066-111524

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 7

-Article 9

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 01-6

-Paragraph 13

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5162-111524

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 3, 4

-Article 5

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(k))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.3,4)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 4

-Section 08

-Paragraph k

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5074-111524

+ Details