EXHIBIT 99.1
SERVISFIRST BANCSHARES, INC.
REPORTS SECOND QUARTER 2008 EARNINGS
REPORTS SECOND QUARTER 2008 EARNINGS
Birmingham, Ala. – (BUSINESS WIRE) – July 21, 2008 – ServisFirst Bancshares, Inc. today reported earnings for the quarter ending June 30, 2008.
Second Quarter 2008 Highlights:
| • | Net Income of $1.75 million: 35% increase year/year | ||
| • | Deposit growth: 31% year/year | ||
| • | Total Asset growth: 39% year/year |
ServisFirst Bancshares, Inc. announced today that its net income for the second quarter of 2008 was $1.75 million compared to $1.3 million for the second quarter of 2007. Fully diluted earnings per share were $.33 in the second quarter of 2008 compared to $.29 in the second quarter of 2007.
Tom Broughton, President and CEO, stated “We continue to focus on our customers while many competitors are distracted by problems some banks within our industry are facing. We have sophisticated customers who know our bankers and have confidence in our performance.”
Bud Foshee, Chief Financial Officer, stated “We are pleased with our increasing profitability and growth in our three markets of Birmingham, Huntsville and Montgomery. Additionally, our credit quality is well above the industry peer group with no exposure to subprime mortgages or troubled investment securities and have no brokered deposits or indirect loans.”
About ServisFirst:
ServisFirst Bancshares, Inc. became a holding company in the fourth quarter of 2007 when it acquired all the shares of ServisFirst Bank. ServisFirst Bank was formed in Birmingham in May 2005, opened ServisFirst Bank Huntsville in August 2006, and opened ServisFirst Bank Montgomery in June 2007.
ServisFirst Bancshares, Inc. registered with the U.S. Securities and Exchange Commission (SEC) as a filing company during the second quarter and its filings are published on the SEC’s website at www.sec.gov.
Statements in this document 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. ServisFirst Bancshares, Inc. cautions that such “forward looking statements,” wherever they occur in this document 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 important factors set forth from time to time in ServisFirst Bancshares, Inc.’s reports and registration statements filed with the SEC. While it is impossible to list all such factors that could affect the accuracy of such “forward looking statements,” some of those factors include: 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 the competitive environment in the markets served by ServisFirst Bancshares, Inc.; changes in the loan portfolio and the deposit base of ServisFirst Bancshares, Inc..
More information about ServisFirst Bancshares may be obtained over the internet athttp://www.servisfirstbancshares.com or by calling (205) 949-0302.
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Contact: ServisFirst Bank
Bud Foshee (205) 949-0307
BFoshee@servisfirstbank.com
Bud Foshee (205) 949-0307
BFoshee@servisfirstbank.com
ServisFirst Bancshares, Inc.
Consolidated Statements of income
(In Thousands Except Shares and Per Share Data)
Consolidated Statements of income
(In Thousands Except Shares and Per Share Data)
| Three Months Ended | Three months | |||||||||||
| June 30, | ended March 31, | |||||||||||
| 2008 | 2007 | 2008 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
Total Interest Income | $ | 13,341 | $ | 12,130 | $ | 13,835 | ||||||
Total interest expense | $ | 4,647 | $ | 6,133 | $ | 5,748 | ||||||
Net interest income before provision | $ | 8,694 | $ | 5,997 | $ | 8,087 | ||||||
Provision for loan losses | $ | 2,137 | $ | 816 | $ | 1,383 | ||||||
Net interest income | $ | 6,557 | $ | 5,181 | $ | 6,704 | ||||||
Total Noninterest Income | $ | 695 | $ | 302 | $ | 544 | ||||||
| Salaries and employee benefits | $ | 2,400 | $ | 2,116 | $ | 2,826 | ||||||
| Other | $ | 2,130 | $ | 1,287 | $ | 2,004 | ||||||
Total Noninterest Expenses | $ | 4,530 | $ | 3,403 | $ | 4,830 | ||||||
Income before taxes | $ | 2,722 | $ | 2,080 | $ | 2,418 | ||||||
Income taxes | $ | 972 | $ | 783 | $ | 848 | ||||||
Net Income | $ | 1,750 | $ | 1,297 | $ | 1,570 | ||||||
Basic earnings per share | $ | 0.34 | $ | 0.29 | $ | 0.31 | ||||||
Fully diluted earnings per share | $ | 0.33 | $ | 0.29 | $ | 0.30 | ||||||
Average basic shares | 5,113,482 | 4,463,606 | 5,113,482 | |||||||||
Average fully diluted shares | 5,324,185 | 4,512,999 | 5,283,917 | |||||||||
| Six Months Ended June 30, | ||||||||
| 2008 | 2007 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Total Interest Income | $ | 27,176 | $ | 22,955 | ||||
Total interest expense | $ | 10,395 | $ | 11,359 | ||||
Net interest income before provision | $ | 16,781 | $ | 11,596 | ||||
Provision for loan losses | $ | 3,519 | $ | 1,460 | ||||
Net interest income | $ | 13,262 | $ | 10,136 | ||||
Total Noninterest Income | $ | 1,238 | $ | 565 | ||||
| Salaries and employee benefits | $ | 5,227 | $ | 3,982 | ||||
| Other | $ | 4,133 | $ | 2,325 | ||||
Total Noninterest Expenses | $ | 9,360 | $ | 6,307 | ||||
Income before taxes | $ | 5,140 | $ | 4,394 | ||||
Income taxes | $ | 1,820 | $ | 1,590 | ||||
Net Income | $ | 3,320 | $ | 2,804 | ||||
Basic earnings per share | $ | 0.65 | $ | 0.63 | ||||
Fully diluted earnings per share | $ | 0.63 | $ | 0.61 | ||||
Average basic shares | 5,113,482 | 4,463,606 | ||||||
Average fully diluted shares | 5,299,333 | 4,624,968 | ||||||
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ServisFirst Bancshares, Inc.
Consolidated Balance Sheets
(In Thousands)
Consolidated Balance Sheets
(In Thousands)
| ACTUAL | ACTUAL | ACTUAL | ||||||||||
| 6/30/2008 | 3/31/2008 | 6/30/2007 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Cash and due from banks | $ | 27,049 | $ | 19,239 | $ | 20,274 | ||||||
| Investment securities | $ | 91,772 | $ | 88,974 | $ | 50,193 | ||||||
| Restricted equity securities | $ | 2,659 | $ | 2,659 | $ | 1,202 | ||||||
| Federal funds sold and other investments | $ | 72 | $ | 83,455 | $ | 95,518 | ||||||
| Mortgage loans held for sale | $ | 3,869 | $ | 4,768 | $ | 3,159 | ||||||
| Loans | $ | 836,520 | $ | 755,534 | $ | 527,476 | ||||||
| Reserve for loan losses | $ | (9,438 | ) | $ | (8,852 | ) | $ | (6,825 | ) | |||
| Net loans | $ | 827,082 | $ | 746,682 | $ | 520,651 | ||||||
| Foreclosed real estate | $ | 8,202 | $ | 3,443 | $ | 371 | ||||||
| Other assets | $ | 12,405 | $ | 10,995 | $ | 10,557 | ||||||
Total Assets | $ | 973,110 | $ | 960,215 | $ | 701,925 | ||||||
| Noninterest-bearing | $ | 97,066 | $ | 88,613 | $ | 90,631 | ||||||
| Interest bearing | $ | 750,360 | $ | 774,158 | $ | 554,277 | ||||||
Total deposits | $ | 847,426 | $ | 862,771 | $ | 644,908 | ||||||
| Borrowings | $ | 46,622 | $ | 20,275 | $ | — | ||||||
| Interest payable | $ | 1,336 | $ | 900 | $ | 705 | ||||||
| Other liabilities | $ | 2,855 | $ | 1,626 | $ | 1,799 | ||||||
Total liabilities | $ | 898,239 | $ | 885,572 | $ | 647,412 | ||||||
Stockholders’ equity | $ | 74,871 | $ | 74,643 | $ | 54,513 | ||||||
Total liabilities and stockholders’ equity | $ | 973,110 | $ | 960,215 | $ | 701,925 | ||||||
ServisFirst Bancshares, inc.
Key Ratios
(Unaudited)
Key Ratios
(Unaudited)
| Three months ended | ||||||||||||
| Three months ended June 30, | March 31, | |||||||||||
| 2008 | 2007 | 2008 | ||||||||||
| Return on average assets | 0.74 | % | 0.80 | % | 0.72 | % | ||||||
| Return on average equity | 9.31 | % | 9.51 | % | 8.58 | % | ||||||
| Net interest margin | 3.84 | % | 3.82 | % | 3.81 | % | ||||||
| Efficiency ratio | 48.25 | % | 54.02 | % | 55.96 | % | ||||||
| Six months ended June 30, | ||||||||
| 2008 | 2007 | |||||||
| Return on average assets | 0.73 | % | 0.87 | % | ||||
| Return on average equity | 8.95 | % | 10.34 | % | ||||
| Net interest margin | 3.77 | % | 3.94 | % | ||||
| Net charge offs annualized to average loans | 0.48 | % | 0.02 | % | ||||
| Efficiency ratio | 51.94 | % | 51.86 | % | ||||
| 6/30/2008 | 6/30/2007 | 3/31/2008 | ||||||||||
| Book value per share | $ | 14.65 | $ | 12.39 | $ | 14.27 | ||||||
| Tangible book value per share | $ | 14.65 | $ | 12.39 | $ | 14.27 | ||||||
| % of reserve for loan losses to total loans | 1.13 | % | 1.29 | % | 1.17 | % | ||||||
| Nonperforming assets to total loans plus foreclosed real estate | 1.57 | % | 0.54 | % | 0.82 | % | ||||||
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