EXHIBIT 99.1
PRESS RELEASE ISSUED FEBRUARY 2, 2010
SERVISFIRST BANCSHARES, INC.
ISSUES CORRECTED EARNINGS REPORT
FOR FOURTH QUARTER 2009
Birmingham, Ala. – (PR Newswire) – February 2, 2010 – ServisFirst Bancshares, Inc. today amended its previously announced earnings report for the quarter and year ended December 31, 2009. This corrected report reflects additional expense of $800,000 for the fourth quarter of 2009 primarily related to the initial installment of the 13-quarter prepayment of Federal Deposit Insurance Corporation (FDIC) premiums adopted by the FDIC in November 2009. This expense was not reflected in the Company’s initial earnings announcement on January 19, 2010, which was corrected by the Company in connection with the preparation of its audited financial statements for the year ended December 31, 2009. As shown in the attached financial data, the effect of this expense, net of the income tax benefit, was to reduce the Company’s net income by $504,856, or $.09 (basic) and $.09 (diluted) per share, for the quarter and year ended December 31, 2009.
About ServisFirst:
ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst provides business and personal financial services through locations in Birmingham, Huntsville, Montgomery and Dothan, Alabama.
ServisFirst files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbancshares.com.
Statements in this press release 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. The words "believe," "expect," "anticipate," "project," “plan,”, “intend,” “will,” “would,” “might” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release 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 factors that could affect the accuracy of such forward-looking statements including: 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 our loan portfolio and the deposit base;, possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, economic stimulus initiatives and so-called “bailout” initiatives; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes, in our geographic markets; and increased competition from both banks and non-bank financial institutions. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Risk Factors” in our most recent Annual Report on Form 10-K and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.
More information about ServisFirst Bancshares may be obtained over the internet at www.servisfirstbancshares.com or by calling (205) 949-0302.
Contact: ServisFirst Bank
Bud Foshee (205) 949-0307
BFoshee@servisfirstbank.com
SERVISFIRST BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except shares and per share data)
| Three Months Ended | ||||||||||||
| December 31, | September 30, | |||||||||||
| 2009 | 2008 | 2009 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Total interest income | $ | 17,190 | $ | 14,393 | $ | 16,092 | ||||||
| Total interest expense | 4,320 | 5,075 | 4,648 | |||||||||
| Net interest income before provision | 12,870 | 9,318 | 11,444 | |||||||||
| Provision for loan losses | 2,408 | 1,373 | 3,209 | |||||||||
| Net interest income after provision for loan losses | 10,462 | 7,945 | 8,235 | |||||||||
| Total noninterest income | 1,244 | 792 | 967 | |||||||||
| Salaries and employee benefits | 3,227 | 2,642 | 3,398 | |||||||||
| Other noninterest expense | 5,416 | 3,113 | 3,574 | |||||||||
| Total noninterest expense | 8,643 | 5,755 | 6,972 | |||||||||
| Income before taxes | 3,063 | 2,982 | 2,230 | |||||||||
| Income taxes | 1,072 | 1,021 | 622 | |||||||||
| Net income | $ | 1,991 | $ | 1,961 | $ | 1,608 | ||||||
| Basic earnings per share | $ | 0.36 | $ | 0.38 | $ | 0.29 | ||||||
| Diluted earnings per share | $ | 0.34 | $ | 0.36 | $ | 0.28 | ||||||
| Average basic shares | 5,513,482 | 5,116,314 | 5,513,482 | |||||||||
| Average fully diluted shares | 5,828,820 | 5,391,259 | 5,821,331 | |||||||||
| Year Ended December 31, | ||||||||
| 2009 | 2008 | |||||||
| (Unaudited) | (Audited) | |||||||
| Total interest income | $ | 62,197 | $ | 55,450 | ||||
| Total interest expense | 18,337 | 20,474 | ||||||
| Net interest income before provision | 43,860 | 34,976 | ||||||
| Provision for loan losses | 10,685 | 6,274 | ||||||
| Net interest income after provision for loan losses | 33,175 | 28,702 | ||||||
| Total noninterest income | 4,413 | 2,704 | ||||||
| Salaries and employee benefits | 13,581 | 10,552 | ||||||
| Other noninterest expense | 15,349 | 10,024 | ||||||
| Total noninterest expense | 28,930 | 20,576 | ||||||
| Income before taxes | 8,658 | 10,830 | ||||||
| Income taxes | 2,780 | 3,825 | ||||||
| Net income | $ | 5,878 | $ | 7,005 | ||||
| Basic earnings per share | $ | 1.07 | $ | 1.37 | ||||
| Diluted earnings per share | $ | 0.99 | $ | 1.31 | ||||
| Average basic shares | 5,485,972 | 5,114,194 | ||||||
| Average fully diluted shares | 5,912,925 | 5,338,883 | ||||||
SERVISFIRST BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, 2009 | December 31, 2008 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 75,526 | $ | 53,618 | ||||
| Investment securities | 256,098 | 102,339 | ||||||
| Restricted equity securities | 3,241 | 2,659 | ||||||
| Federal funds sold and other investments | 680 | 19,300 | ||||||
| Mortgage loans held for sale | 6,202 | 3,320 | ||||||
| Loans | 1,203,584 | 968,233 | ||||||
| Reserve for loan losses | (14,736 | ) | (10,602 | ) | ||||
| Net loans | 1,188,848 | 957,631 | ||||||
| Foreclosed real estate | 12,525 | 10,473 | ||||||
| Other assets | 29,844 | 12,932 | ||||||
| Total assets | $ | 1,572,964 | $ | 1,162,272 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Noninterest-bearing | $ | 211,348 | $ | 121,459 | ||||
| Interest-bearing | 1,221,048 | 915,860 | ||||||
| Total deposits | 1,432,396 | 1,037,319 | ||||||
| Borrowings | 40,150 | 35,087 | ||||||
| Interest payable | 1,026 | 1,280 | ||||||
| Other liabilities | 1,770 | 1,803 | ||||||
| Total liabilities | 1,475,342 | 1,075,489 | ||||||
| Stockholders' equity | 97,622 | 86,783 | ||||||
| Total liabilities and stockholders' equity | $ | 1,572,964 | $ | 1,162,272 | ||||
SERVISFIRST BANCSHARES, INC.
Key Ratios
| Three Months Ended | ||||||||||||
| December 31, | September 30, | |||||||||||
| 2009 | 2008 | 2009 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Return on average assets | 0.50 | % | 0.70 | % | 0.45 | % | ||||||
| Return on average equity | 8.06 | % | 8.50 | % | 6.75 | % | ||||||
| Net interest margin (fully tax equivalent) | 3.33 | % | 3.50 | % | 3.36 | % | ||||||
| Efficiency ratio | 61.24 | % | 56.92 | % | 56.18 | % | ||||||
| Year Ended December 31, | ||||||||||||
| 2009 | 2008 | |||||||||||
| (Unaudited) | (Audited) | |||||||||||
| Return on average assets | 0.43 | % | 0.71 | % | ||||||||
| Return on average equity | 6.33 | % | 9.28 | % | ||||||||
| Net interest margin (fully tax equivalent) | 3.31 | % | 3.70 | % | ||||||||
| Efficiency ratio | 59.93 | % | 54.61 | % | ||||||||
| 12/31/2009 | 12/31/2008 | 9/30/2009 | ||||||||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
| Book value per share | $ | 17.71 | $ | 16.15 | $ | 17.68 | ||||||
| Tangible book value per share | $ | 17.71 | $ | 16.15 | $ | 17.68 | ||||||
| % of reserve for loan losses to total loans | 1.22 | % | 1.09 | % | 1.26 | % | ||||||
| Nonperforming assets to total loans plus foreclosed real estate | 2.03 | % | 2.06 | % | 2.51 | % | ||||||