Our Name is Our Mission
2008 ANNUAL REPORT
Dear Shareholders,
I am pleased, but never satisfied, with our financial performance in 2008.
ServisFirst Bancshares, Inc. had net income of $7.0 million in 2008, an increase of 27%
over 2007. We achieved these results while continuing to focus on the improvement in
profitability of our three newest markets; Huntsville, Montgomery and Dothan.
We are pleased to welcome our new Dothan shareholders, and we are encouraged
by the reception in the Houston County market. Ronald DeVane, our Dothan Regional
CEO, has done a remarkable job in assembling our Dothan directors, officers and
shareholders.
Our deposits grew by 36% in 2008, and we are particularly proud of the fact that we
have no brokered deposits. Regulators have recently concluded that banks with a heavy
reliance on brokered deposits are more likely to have financial problems than banks that
do not, which is not surprising to me.
We all read daily about the banking industry problems, which are real problems for
our economy and the American taxpayer. Most of the problems are centered in our
largest banks and the thrift industry. The thrift industry focused almost completely on
residential construction and development, which has faced enormous problems. There is
not an easy solution to the housing problem and the taxpayers will pay for it. We are
fortunate to be in markets where housing is not as bad as the high growth areas of the
United States.
The key to long-term success in this industry is to have a diversified loan portfolio
coupled with a focus on building core deposits. We will always keep a simple strategy,
which is to build strong relationships with our customers.
Our best relationships come from referrals from our shareholders and customers.
We appreciate all your help and support. We are well positioned to profit from the
turbulence in our industry and can achieve much success with hard work and dedication.
Sincerely,
Thomas A. Broughton III
President and Chief Executive Officer
1
CONSOLIDATED FINANCIAL HIGHLIGHTS
As of and for the years ended December 31,
(Dollars in thousands except for share data)
2008
2007
SELECTED ASSET DATA
Cash and cash equivalents
Securities available for sale
Loans, net
Other real estate owned
Total assets
Noninterest-bearing liabilities
Interest bearing liabilities
Total liabilities
Total shareholders’ equity
SELECTED INCOME DATA
Interest income
Interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Non-interest income
Non-interest expense
Income (loss) before income taxes
Provision for income taxes
Net income
Basic earnings per share
Diluted earnings per share
SELECTED PERFORMANCE RATIOS
Return on average assets
Return on average stockholders' equity
Net interest margin(1)
Efficiency ratio(2)
LIQUIDITY RATIOS
Net loans to total deposits
Net average loans to average earning assets
Non-interest-bearing deposits to total deposits
CAPITAL ADEQUACY RATIOS
Stockholders' equity to total assets(3)
Total risked-based capital(4)
Tier I capital(5)
Leverage ratio(6)
GROWTH RATIOS
Percentage change in net income
Percentage changed in diluted net income per share
Percentage change in assets
Percentage change in net loans
Percentage change in deposits
Percentage change in equity
$ 72,918
102,339
957,631
10,473
1,162,272
121,459
915,860
1,075,489
86,783
$ 55,450
20,474
34,976
6,274
28,702
2,704
20,576
10,830
3,825
7,005
1.37
1.31
0.71%
0.28%
3.70%
54.61%
92.32%
85.84%
11.71%
7.38%
11.25%
10.18%
9.01%
27.43%
12.93%
38.65%
45.45%
36.00%
20.12%
$ 66,422
87,233
667,549
1,623
838,250
85,018
677,665
766,003
72,247
$ 51,417
25,872
25,545
3,541
22,004
1,441
14,796
8,649
3,152
5,497
1.19
1.16
0.78%
9.40%
3.78%
54.83%
87.53%
77.19%
11.15%
8.50%
11.22%
10.12%
8.40%
35.00%
13.21%
58.59%
53.43%
61.13%
38.18%
_____________________________
(1)
Net interest margin is the net yield on interest earning assets and is the difference between the interest yield earned on
interest-earning assets and interest rate paid on interest-bearing liabilities, divided by average earning assets.
Efficiency ratio is the result of non-interest expense divided by the sum of net interest income and non-interest income.
Total stockholders' equity excluding unrealized losses on securities available for sale, net of taxes, divided by total assets.
Total stockholders' equity excluding unrealized losses on securities available for sale, net of taxes, and intangible assets plus
allowance for loan losses (limited to 1.25% of risk-weighted assets) divided by total risk-weighted assets. The FDIC required
minimum to be well-capitalized is 10%.
Total stockholders' equity excluding unrealized losses on securities available for sale, net of taxes, and intangible assets
divided by total risk-weighted assets. The FDIC required minimum to be well-capitalized is 6%.
Total stockholders' equity excluding unrealized losses on securities available for sale, net of taxes, and intangible assets
divided by average assets less intangible assets. The FDIC required minimum to be well-capitalized is 5%; however, the
Alabama Banking Department has required that the Bank maintain a Tier 1 capital leverage ratio of 7%.
(2)
(3)
(4)
(5)
(6)
2
OFFICERS AND DIRECTORS
PRINCIPAL OFFICERS: SERVISFIRST
BANCSHARES, INC.
Thomas A. Broughton III
Chief Executive Officer and President
William M. Foshee
Executive Vice President, Chief Financial
Officer, Treasurer and Secretary
Clarence C. Pouncey III
Executive Vice President and Chief
Operating Officer
PRINCIPAL OFFICERS: SERVISFIRST BANK
Thomas A. Broughton III
Chief Executive Officer and President
Clarence C. Pouncey III
Executive Vice President and Chief
Operating Officer
G. Carlton Barker
Executive Vice President and Montgomery
Regional CEO
Ronald A. DeVane
Executive Vice President and Dothan
Regional CEO
William M. Foshee
Executive Vice President, Chief Financial
Officer, Treasurer and Secretary
Andrew N. Kattos
Executive Vice President and Huntsville
Regional CEO
BOARD OF DIRECTORS: SERVISFIRST
BANCSHARES, INC.
Stanley M. Brock, Chairman of the Board
Birmingham, Alabama
Thomas A. Broughton III
Birmingham, Alabama
Joseph R. Cashio
Birmingham, Alabama
James J. Filler
Birmingham, Alabama
Michael D. Fuller
Birmingham, Alabama
Hatton C. V. Smith
Birmingham, Alabama
SERVISFIRST BANCSHARES, INC.
COMMITTEES
NOMINATING AND CORPORATE GOVERNANCE
Stanley M. Brock
Joseph R. Cashio
Michael D. Fuller
AUDIT
Michael D. Fuller
Joseph R. Cashio
Stanley M. Brock
COMPENSATION
Hatton C.V. Smith
Joseph R. Cashio
James J. Filler
3
OFFICES AND LOCATIONS
CORPORATE OFFICES
3300 CAHABA ROAD, SUITE 300
BIRMINGHAM, ALABAMA 35223
205.949.0302
MAIN OFFICE BANKING CENTER
3300 CAHABA ROAD, SUITE 105
BIRMINGHAM, ALABAMA 35223
205.949.0345
DOWNTOWN BANKING CENTER
324 RICHARD ARRINGTON JR. BLVD. NORTH
BIRMINGHAM, ALABAMA 35203
205.949.2200
GREYSTONE BANKING CENTER
5403 HIGHWAY 280, SUITE 401
BIRMINGHAM, ALABAMA 35242
205.949.0870
DOTHAN CORPORATE OFFICE
& BANKING CENTER
256 HONEYSUCKLE ROAD
BRIGHTLEAF COURT, SUITE 12
DOTHAN, AL 36305
334.340.4300
HUNTSVILLE CORPORATE OFFICE &
DOWNTOWN BANKING CENTER
401 MERIDIAN STREET, SUITE 100
HUNTSVILLE, ALABAMA 35801
256.722.7800
PROVIDENCE BANKING CENTER
475 PROVIDENCE MAIN STREET, SUITE 401
HUNTSVILLE, ALABAMA 35806
256.722.7880
CORPORATE OFFICE &
DOWNTOWN BANKING CENTER
ONE COMMERCE STREET, SUITE 200
MONTGOMERY, ALABAMA 36104
334.223.5800
MONTGOMERY EAST BANKING CENTER
8117 VAUGHN ROAD, UNIT 20
MONTGOMERY, ALABAMA 36116
334.223.5600
4
STOCKHOLDER INFORMATION
these reports. You may also obtain a copy of
any such report free of charge from us by
requesting such copy in writing to 3300 Cahaba
Road, Suite 300, Birmingham, Alabama 35223,
Attn.: Investor Relations. This annual report
and accompanying exhibits and all other reports
and filings that we file with the SEC will be
available for the public to view and copy (at
prescribed rates) at the SEC’s Public Reference
Room at 100 F Street, Washington, D.C. 20549.
You may also obtain copies of such information
at the prescribed rates from the SEC’s Public
Reference Room by calling the SEC at 1-800-
SEC-0330. The SEC also maintains a website
and
that
information statements and other information as
we file electronically with the SEC by clicking
on http://www.sec.gov.
reports, proxy
contains
such
INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
Mauldin & Jenkins, LLC
2000 Southbridge Parkway
Birmingham, Alabama 35209
(205) 445-2880
SECURITIES COUNSEL
Haskell Slaughter Young & Rediker, LLC
1400 Park Place Tower
2001 Park Place North
Birmingham, AL 35203
(205) 251-1000
ANNUAL MEETING
The Annual Meeting of Stockholders of
ServisFirst Bancshares, Inc. will be held at
Vulcan Park Center located at 1701 Valley
View Drive, Birmingham, Alabama 35209 on
Thursday, May 28, 2009, at 5:00 p.m., C.D.T.
FORM 10-K
Form 10-K is ServisFirst Bancshares, Inc.’s
annual report filed with the Securities and
Exchange Commission, and is included within
this document. A
copy of ServisFirst
Bancshares, Inc.’s 10-K may be obtained, free
of charge, if you address a written request to
our Secretary, William M. Foshee, 3300
Cahaba Road, Suite 300, Birmingham, Alabama
35223.
TRANSFER AGENT
Registrar and Transfer Company
10 Commerce Drive
Cranford, NJ 07016
AVAILABLE INFORMATION
Our
website
corporate
is
www.servisfirstbank.com. We have direct links
on this website to our Code of Ethics and the
charters for our Audit, Compensation and
and Nominations
Corporate Governance
Committees by clicking on
the “Investor
Relations” tab. We also have direct links to our
filings with
the Securities and Exchange
Commission (SEC), including, but not limited
to, our first annual report on Form 10-K,
Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K, proxy statements and any
amendments to
ServisFirst Bancshares, Inc.
3300 Cahaba Road
Suite 300
Birmingham, AL 35223
Toll Free: 866.317.0810
www.servisfirstbank.com
Our Name is Our Mission