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

Quarterly report pursuant to Section 13 or 15(d)

LOANS (Tables)

LOANS (Tables)

9 Months Ended

Sep. 30, 2015

The following table details the Company’s loans at September 30, 2015 and December 31, 2014:

	September 30,			December 31,
	2015			2014
	(Dollars In Thousands)
Commercial, financial and agricultural	$	1,671,014		$	1,495,092
Real estate - construction		232,895			208,769
Real estate - mortgage:
Owner-occupied commercial		978,721			793,917
1-4 family mortgage		417,011			333,455
Other mortgage		677,822			471,363
Subtotal: Real estate - mortgage		2,073,554			1,598,735
Consumer		66,779			57,262
Total Loans		4,044,242			3,359,858
Less: Allowance for loan losses		(42,574)			(35,629)
Net Loans	$	4,001,668		$	3,324,229

Commercial, financial and agricultural		41.32	%		44.50	%
Real estate - construction		5.76	%		6.21	%
Real estate - mortgage:
Owner-occupied commercial		24.20	%		23.63	%
1-4 family mortgage		10.31	%		9.92	%
Other mortgage		16.76	%		14.03	%
Subtotal: Real estate - mortgage		51.27	%		47.58	%
Consumer		1.65	%		1.71	%
Total Loans		100.00	%		100.00	%

Loans By Credit Quality Indicator

Loans by credit quality indicator as of September 30, 2015 and December 31, 2014 were as follows:

			Special
September 30, 2015	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,601,109	$	55,877	$	14,028	$	-	$	1,671,014
Real estate - construction		222,200		6,051		4,644		-		232,895
Real estate - mortgage:
Owner-occupied commercial		951,547		19,307		7,867		-		978,721
1-4 family mortgage		410,247		3,984		2,780		-		417,011
Other mortgage		659,394		13,086		5,342		-		677,822
Total real estate mortgage		2,021,188		36,377		15,989		-		2,073,554
Consumer		66,702		44		33		-		66,779
Total	$	3,911,199	$	98,349	$	34,694	$	-	$	4,044,242

			Special
December 31, 2014	Pass		Mention		Substandard		Doubtful		Total
						(In Thousands)
Commercial, financial and agricultural	$	1,459,356	$	25,416	$	10,320	$	-	$	1,495,092
Real estate - construction		197,727		5,332		5,710		-		208,769
Real estate - mortgage:
Owner-occupied commercial		784,492		6,848		2,577		-		793,917
1-4 family mortgage		326,316		4,253		2,886		-		333,455
Other mortgage		457,782		9,015		4,566		-		471,363
Total real estate mortgage		1,568,590		20,116		10,029		-		1,598,735
Consumer		56,559		37		666		-		57,262
Total	$	3,282,232	$	50,901	$	26,725	$	-	$	3,359,858

Loans By Performance Status

Loans by performance status as of September 30, 2015 and December 31, 2014 were as follows:

September 30, 2015	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,666,626	$	4,388	$	1,671,014
Real estate - construction		228,895		4,000		232,895
Real estate - mortgage:
Owner-occupied commercial		978,600		121		978,721
1-4 family mortgage		416,184		827		417,011
Other mortgage		676,820		1,002		677,822
Total real estate mortgage		2,071,604		1,950		2,073,554
Consumer		66,743		36		66,779
Total	$	4,033,868	$	10,374	$	4,044,242

December 31, 2014	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,493,995	$	1,097	$	1,495,092
Real estate - construction		203,720		5,049		208,769
Real estate - mortgage:
Owner-occupied commercial		793,234		683		793,917
1-4 family mortgage		331,859		1,596		333,455
Other mortgage		470,404		959		471,363
Total real estate mortgage		1,595,497		3,238		1,598,735
Consumer		56,596		666		57,262
Total	$	3,349,808	$	10,050	$	3,359,858

Loans By Past Due Status

Loans by past due status as of September 30, 2015 and December 31, 2014 were as follows:

September 30, 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	$	13	$	-	$	49	$	62	$	4,339	$	1,666,613	$	1,671,014
Real estate - construction		-		-		-		-		4,000		228,895		232,895
Real estate - mortgage:
Owner-occupied commercial		34		-		-		34		121		978,566		978,721
1-4 family mortgage		50		154		472		676		355		415,980		417,011
Other mortgage		1,401		-		-		1,401		1,002		675,419		677,822
Total real estate - mortgage		1,485		154		472		2,111		1,478		2,069,965		2,073,554
Consumer		17		-		3		20		33		66,726		66,779
Total	$	1,515	$	154	$	524	$	2,193	$	9,850	$	4,032,199	$	4,044,242

December 31, 2014	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	$	1,388	$	3,490	$	925	$	5,803	$	172	$	1,489,117	$	1,495,092
Real estate - construction		-		-		-		-		5,049		203,720		208,769
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		683		793,234		793,917
1-4 family mortgage		14		-		-		14		1,596		331,845		333,455
Other mortgage		-		-		-		-		959		470,404		471,363
Total real estate - mortgage		14		-		-		14		3,238		1,595,483		1,598,735
Consumer		21		-		-		21		666		56,575		57,262
Total	$	1,423	$	3,490	$	925	$	5,838	$	9,125	$	3,344,895	$	3,359,858

Changes In Allowance For Loan Losses Segregated By Loan Type

The following table presents an analysis of the allowance for loan losses by portfolio segment as of September 30, 2015 and December 31, 2014. 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		Real estate -		Real estate -
	agricultural		construction		mortgage		Consumer		Total
	(In Thousands)
	Three Months Ended September 30, 2015
Allowance for loan losses:
Balance at June 30, 2015	$	19,052	$	5,674	$	14,171	$	1,123	$	40,020
Charge-offs		(388)		(31)		-		(126)		(545)
Recoveries		13		13		1		-		27
Provision		2,020		(237)		1,767		(478)		3,072
Balance at September 30, 2015	$	20,697	$	5,419	$	15,939	$	519	$	42,574

	Three Months Ended September 30, 2014
Allowance for loan losses:
Balance at June 30, 2014	$	13,637	$	6,734	$	11,523	$	1,090	$	32,984
Charge-offs		(531)		(610)		(149)		(131)		(1,421)
Recoveries		-		97		14		20		131
Provision		1,364		461		905		18		2,748
Balance at September 30, 2014	$	14,470	$	6,682	$	12,293	$	997	$	34,442

	Nine Months Ended September 30, 2015
Allowance for loan losses:
Balance at December 31, 2014	$	16,079	$	6,395	$	12,112	$	1,043	$	35,629
Charge-offs		(1,616)		(506)		(641)		(150)		(2,913)
Recoveries		38		177		104		-		319
Provision		6,196		(647)		4,364		(374)		9,539
Balance at September 30, 2015	$	20,697	$	5,419	$	15,939	$	519	$	42,574

	Nine Months Ended September 30, 2014
Allowance for loan losses:
Balance at December 31, 2013	$	13,576	$	6,078	$	10,065	$	944	$	30,663
Charge-offs		(1,895)		(958)		(1,043)		(207)		(4,103)
Recoveries		46		285		28		23		382
Provision		2,743		1,277		3,243		237		7,500
Balance at September 30, 2014	$	14,470	$	6,682	$	12,293	$	997	$	34,442

	As of September 30, 2015
Allowance for loan losses:
Individually Evaluated for Impairment	$	3,875	$	1,089	$	2,446	$	33	$	7,443
Collectively Evaluated for Impairment		16,822		4,330		13,493		486		35,131

Loans:
Ending Balance	$	1,671,014	$	232,895	$	2,073,554	$	66,779	$	4,044,242
Individually Evaluated for Impairment		14,049		4,697		18,632		51		37,429
Collectively Evaluated for Impairment		1,656,965		228,198		2,054,922		66,728		4,006,813

	As of December 31, 2014
Allowance for loan losses:
Individually Evaluated for Impairment	$	1,344	$	1,448	$	1,636	$	666	$	5,094
Collectively Evaluated for Impairment		14,735		4,947		10,476		377		30,535

Loans:
Ending Balance	$	1,495,092	$	208,769	$	1,598,735	$	57,262	$	3,359,858
Individually Evaluated for Impairment		10,350		5,680		10,029		666		26,725
Collectively Evaluated for Impairment		1,484,742		203,089		1,588,706		56,596		3,333,133

Details Of Company's Impaired Loans

The following table presents details of the Company’s impaired loans as of September 30, 2015 and December 31, 2014, respectively. Loans which have been fully charged off do not appear in the tables.

							For the three months				For the nine months
							ended September 30,				ended September 30,
	September 30, 2015						2015				2015
									Interest				Interest
			Unpaid				Average		Income		Average		Income
	Recorded		Principal		Related		Recorded		Recognized		Recorded		Recognized
	Investment		Balance		Allowance		Investment		in Period		Investment		in Period
	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,133	$	1,142	$	-	$	1,135	$	5	$	1,181	$	13
Real estate - construction		806		809		-		910		9		1,094		26
Real estate - mortgage:
Owner-occupied commercial		4,137		4,294		-		4,177		58		3,908		183
1-4 family mortgage		1,377		1,553		-		1,385		26		1,385		71
Other mortgage		3,155		3,321		-		3,168		38		3,191		139
Total real estate - mortgage		8,669		9,168		-		8,730		122		8,484		393
Consumer		18		23		-		19		-		19		1
Total with no allowance recorded		10,626		11,142		-		10,794		136		10,778		433

With an allowance recorded:
Commercial, financial and agricultural		12,916		13,001		3,875		13,728		122		14,079		554
Real estate - construction		3,891		4,371		1,089		3,914		-		4,249		-
Real estate - mortgage:
Owner-occupied commercial		6,373		6,373		1,336		8,645		140		11,167		475
1-4 family mortgage		1,402		1,403		415		1,406		15		1,397		46
Other mortgage		2,188		2,188		695		2,189		19		2,329		58
Total real estate - mortgage		9,963		9,964		2,446		12,240		174		14,893		579
Consumer		33		33		33		34		1		34		6
Total with allowance recorded		26,803		27,369		7,443		29,916		297		33,255		1,139

Total Impaired Loans:
Commercial, financial and agricultural		14,049		14,143		3,875		14,863		127		15,260		567
Real estate - construction		4,697		5,180		1,089		4,824		9		5,343		26
Real estate - mortgage:
Owner-occupied commercial		10,510		10,667		1,336		12,822		198		15,075		658
1-4 family mortgage		2,779		2,956		415		2,791		41		2,782		117
Other mortgage		5,343		5,509		695		5,357		57		5,520		197
Total real estate - mortgage		18,632		19,132		2,446		20,970		296		23,377		972
Consumer		51		56		33		53		1		53		7
Total impaired loans	$	37,429	$	38,511	$	7,443	$	40,710	$	433	$	44,033	$	1,572

December 31, 2014

			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	$	7,059	$	7,059	$	-	$	7,104	$	406
Real estate - construction		1,527		1,527		-		1,493		40
Real estate - mortgage:
Owner-occupied commercial		1,576		1,576		-		236		12
1-4 family mortgage		542		592		-		592		19
Other mortgage		1,944		1,944		-		2,283		142
Total real estate - mortgage		4,062		4,112		-		3,111		173
Consumer		-		-		-		-		-
Total with no allowance recorded		12,648		12,698		-		11,708		619

With an allowance recorded:
Commercial, financial and agricultural		3,291		3,291		1,344		3,262		156
Real estate - construction		4,153		4,633		1,448		4,382		19
Real estate - mortgage:
Owner-occupied commercial		1,001		1,001		160		1,140		29
1-4 family mortgage		2,344		2,344		694		2,743		56
Other mortgage		2,622		2,622		782		2,767		84
Total real estate - mortgage		5,967		5,967		1,636		6,650		169
Consumer		666		666		666		681		-
Total with allowance recorded		14,077		14,557		5,094		14,975		344

Total Impaired Loans:
Commercial, financial and agricultural		10,350		10,350		1,344		10,366		562
Real estate - construction		5,680		6,160		1,448		5,875		59
Real estate - mortgage:
Owner-occupied commercial		2,577		2,577		160		1,376		41
1-4 family mortgage		2,886		2,936		694		3,335		75
Other mortgage		4,566		4,566		782		5,050		226
Total real estate - mortgage		10,029		10,079		1,636		9,761		342
Consumer		666		666		666		681		-
Total impaired loans	$	26,725	$	27,255	$	5,094	$	26,683	$	963

Analysis Of Troubled Debt Restructuring

TDR activity by portfolio segment for the three and nine months ended September 30, 2014 is presented in the table below.

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
	(In Thousands)
Troubled Debt Restructurings
Commercial, financial and agricultural		1	$	390	$	390		2	$	889	$	889
Real estate - construction		-		-		-		-		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		-		-
1-4 family mortgage		1		4,449		4,449		1		4,449		4,449
Other mortgage		1		275		275		2		1,684		1,684
Total real estate mortgage		2		4,724		4,724		3		6,133		6,133
Consumer		-		-		-		-		-		-
		3	$	5,114	$	5,114		5	$	7,022	$	7,022

The following table presents TDRs by portfolio segment which defaulted during the three and nine months ended September 30, 2015 and 2014, 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.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In thousands)

Defaulted during the period, where modified in a TDR twelve months prior to default
Commercial, financial and agricultural	$	-	$	-	$	-	$	-
Real estate - construction		-		-		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-
1-4 family mortgage		-		4,313		-		4,313
Other mortgage		-		-		-		-
Total real estate mortgage		-		4,313		-		4,313
Consumer		-		-		-		-
	$	-	$	4,313	$	-	$	4,313