10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2014

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______to_______

Commission file number 000-53149

SERVISFIRST BANCSHARES, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	26-0734029
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

850 Shades Creek Parkway, Birmingham, Alabama	35209
(Address of Principal Executive Offices)	(Zip Code)

(205) 949-0302

(Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or Section 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the  preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definition of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer ¨ Accelerated filer x Non-accelerated filer ¨ Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.

Class	Outstanding as of April 23, 2014
Common stock, $.001 par value	7,564,812

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION		3
Item 1.	Consolidated Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	32
Item 4.	Controls and Procedures	33
PART II. OTHER INFORMATION		33
Item 1	Legal Proceedings	33
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	34

EX-31.01 SECTION 302 CERTIFICATION OF THE CEO

EX-31.02 SECTION 302 CERTIFICATION OF THE CFO

EX-32.01 SECTION 906 CERTIFICATION OF THE CEO

EX-32.02 SECTION 906 CERTIFICATION OF THE CFO

2

PART 1. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

	March 31, 2014			December 31, 2013
	(Unaudited)			(Audited)
ASSETS
Cash and due from banks	$	77,542		$	61,370
Interest-bearing balances due from depository institutions		134,415			188,411
Federal funds sold		10,535			8,634
Cash and cash equivalents		222,492			258,415
Available for sale debt securities, at fair value		277,501			266,220
Held to maturity debt securities (fair value of $31,559 and $31,315 at March 31, 2014 and December 31, 2013, respectively)		31,974			32,274
Restricted equity securities		3,738			3,738
Mortgage loans held for sale		6,704			8,134
Loans		2,937,797			2,858,868
Less allowance for loan losses		(31,728	)		(30,663	)
Loans, net		2,906,069			2,828,205
Premises and equipment, net		8,015			8,351
Accrued interest and dividends receivable		10,370			10,262
Deferred tax assets		11,935			11,018
Other real estate owned and repossessed assets		9,752			12,861
Bank owned life insurance contracts		69,544			69,008
Other assets		14,820			12,213
Total assets	$	3,572,914		$	3,520,699
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest-bearing	$	662,834		$	650,456
Interest-bearing		2,368,207			2,369,186
Total deposits		3,031,041			3,019,642
Federal funds purchased		195,762			174,380
Other borrowings		19,949			19,940
Accrued interest payable		2,121			769
Other liabilities		11,758			8,776
Total liabilities		3,260,631			3,223,507
Stockholders' equity:
Preferred stock, Series A Senior Non-Cumulative Perpetual, par value $.001 (liquidation preference $1,000), net of discount; 40,000 shares authorized, 40,000 shares issued and outstanding at March 31, 2014 and December 31, 2013		39,958			39,958
Preferred stock, undesignated, par value $.001 per share; 1,000,000 shares authorized and 960,000 currently undesignated		-			-
Common stock, par value $.001 per share; 50,000,000 shares authorized; 7,524,812 shares issued and outstanding at March 31, 2014 and 7,350,012 shares issued and outstanding at December 31, 2013		8			7
Additional paid-in capital		127,218			123,325
Retained earnings		140,538			130,011
Accumulated other comprehensive income		4,309			3,891
Noncontrolling interest		252			-
Total stockholders' equity		312,283			297,192
Total liabilities and stockholders' equity	$	3,572,914		$	3,520,699

See Notes to Consolidated Financial Statements

3

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended March 31,
	2014			2013
Interest income:
Interest and fees on loans	$	32,252		$	27,318
Taxable debt securities		1,097			948
Nontaxable debt securities		871			832
Federal funds sold		42			16
Other interest and dividends		19			51
Total interest income		34,281			29,165
Interest expense:
Deposits		3,014			2,713
Borrowed funds		418			551
Total interest expense		3,432			3,264
Net interest income		30,849			25,901
Provision for loan losses		2,314			4,284
Net interest income after provision for loan losses		28,535			21,617
Noninterest income:
Service charges on deposit accounts		868			762
Mortgage banking		284			980
Securities gains		-			123
Increase in cash surrender value of life insurance		536			470
Other operating income		487			462
Total noninterest income		2,175			2,797
Noninterest expense:
Salaries and employee benefits		7,697			5,679
Equipment and occupancy expense		1,366			1,111
Professional services		516			461
FDIC and other regulatory assessments		517			432
OREO expense		487			390
Other operating expense		3,140			2,679
Total noninterest expense		13,723			10,752
Income before income taxes		16,987			13,662
Provision for income taxes		5,229			4,411
Net income		11,758			9,251
Net income attributable to noncontrolling interest		(2	)		-
Net income attributable to Servisfirst Bancshares, Inc.		11,756			9,251
Preferred stock dividends		100			100
Net income available to common stockholders	$	11,656		$	9,151
Basic earnings per common share	$	1.58		$	1.44
Diluted earnings per common share	$	1.52		$	1.31

See Notes to Consolidated Financial Statements

4

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2014			2013
Net income	$	11,758		$	9,251
Other comprehensive income (loss), net of tax:
Unrealized holding (losses) gains arising during period from securities available for sale, net of tax of $225 and $(154) for 2014 and 2013, respectively		418			(287	)
Reclassification adjustment for net gain on sale of securities in net income, net of tax of $43		-			(80	)
Other comprehensive income (loss), net of tax		418			(367	)
Comprehensive income		12,176			8,884
Comprehensive income attributable to noncontrolling interest		(2	)		-
Comprehensive income attributable to Servisfirst Bancshares, Inc.	$	12,174		$	8,884

See Notes to Consolidated Financial Statements

5

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENT OF EQUITY

THREE MONTHS ENDED MARCH 31, 2014 AND 2013

(In thousands, except share amounts)

(Unaudited)

	Servisfirst Bancshares, Inc. Stockholders
										Accumulated
					Additional					Other
	Preferred		Common		Paid-in		Retained			Comprehensive			Noncontrolling		Total
	Stock		Stock		Capital		Earnings			Income			Interest		Equity
Balance, December 31, 2013	$	39,958	$	7	$	123,325	$	130,011		$	3,891		$	-	$	297,192
Dividends paid		-		-		-		(1,129	)		-			-		(1,129	)
Preferred dividends paid		-		-		-		(100	)		-			-		(100	)
including tax benefit		-		1		2,873		-			-			-		2,874
Stock-based compensation expense		-		-		1,020		-			-			-		1,020
Issue 250 shares of REIT preferred
stock		-		-		-		-			-			250		250
Other comprehensive income		-		-		-		-			418			-		418
Net income		-		-		-		11,756			-			2		11,758
Balance, March 31, 2014	$	39,958	$	8	$	127,218	$	140,538		$	4,309		$	252	$	312,283
Balance, December 31, 2012	$	39,958	$	6	$	93,505	$	92,492		$	7,296		$	-	$	233,257
Dividends paid		-		-		-		(12	)		-			-		(12	)
Preferred dividends paid		-		-		-		(100	)		-			-		(100	)
Exercise 15,500 stock options and warrants, including tax benefit		-		-		259		-			-			-		259
Issuance of 600,000 shares upon conversion of subordinated mandatorily convertible debentures		-		1		14,999		-			-			-		15,000
Stock-based compensation expense		-		-		259		-			-			-		259
Other comprehensive loss		-		-		-		-			(367	)		-		(367	)
Net income		-		-		-		9,251			-			-		9,251
Balance, March 31, 2013	$	39,958	$	7	$	109,022	$	101,631		$	6,929		$	-	$	257,547

See Notes to Consolidated Financial Statements

6

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2014 AND 2013

(In thousands) (Unaudited)

	2014			2013
OPERATING ACTIVITIES
Net income	$	11,756		$	9,251
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred tax benefit		(1,142	)		(801	)
Provision for loan losses		2,314			4,284
Depreciation and amortization		497			314
Net amortization of investments		546			258
(Increase) decrease in accrued interest and dividends receivable		(108	)		4
Stock-based compensation expense		1,020			259
Increase in accrued interest payable		1,352			212
Proceeds from sale of mortgage loans held for sale		23,794			55,848
Originations of mortgage loans held for sale		(22,080	)		(44,846	)
Gain on sale of mortgage oans held for sale		(284	)		(980	)
Gain on sale of securities available for sale		-			(123	)
Net loss on sale of other real estate owned and repossessed assets		175			21
Write down of other real estate owned		158			286
Decrease in special prepaid FDIC insurance assessments		-			390
Increase in cash surrender value of life insurance contracts		(536	)		(470	)
Excess tax benefits from the exercise of warrants		(143	)		(5	)
Net change in other assets, liabilities, and other operating activities		1,539			(2,723	)
Net cash provided by operating activities		18,858			21,179
INVESTMENT ACTIVITIES
Purchase of debt securities available for sale		(18,160	)		(5,793	)
Proceeds from maturities, calls and paydowns of debt securities available for sale		7,353			8,373
Proceeds from sale of debt securities available for sale		-			1,164
Purchase of debt securities held to maturity		-			(7,357	)
Proceeds from maturities, calls and paydowns of debt securities held to maturity		300			655
Increase in loans		(80,178	)		(102,006	)
Purchase of premises and equipment		(161	)		(312	)
Investment in tax credit partnerships		(1,530	)		-
Proceeds from sale of restricted equity securities		-			203
Proceeds from sale of other real estate owned and repossessed assets		2,776			1,473
Net cash used in investing activities		(89,600	)		(103,600	)
FINANCING ACTIVITIES
Increase (decrease) in noninterest-bearing deposits		12,378			(37,527	)
Decrease in interest-bearing deposits		(979	)		(50,511	)
Increase in federal funds purchased		21,382			36,865
Proceeds from sale of preferred shares		250			-
Proceeds from exercise of stock options and warrants		2,874			259
Excess tax benefits from exercise of stock options and warrants		143			5
Dividends on common stock		(1,129	)		(12	)
Dividends on preferred stock		(100	)		(100	)
Net cash provided by (used in) financing activities		34,819			(51,021	)
Net decrease in cash and cash equivalents		(35,923	)		(133,442	)
Cash and cash equivalents at beginning of period		258,415			180,745
Cash and cash equivalents at end of period	$	222,492		$	47,303
SUPPLEMENTAL DISCLOSURE
Cash paid for:
Interest	$	2,080		$	3,052
Income taxes		6,830			4,340
NONCASH TRANSACTIONS
Conversion of mandatorily convertible subordinated debentures		-			15,000
Other real estate acquired in settlement of loans	$	-		$	171

See Notes to Consolidated Financial Statements.

7

SERVISFIRST BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

(Unaudited)

NOTE 1 - GENERAL

The accompanying consolidated financial statements in this report have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, including Regulation S-X and the instructions for Form 10-Q, and have not been audited. These consolidated financial statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments necessary to present fairly the consolidated financial position and the consolidated results of operations for the interim periods have been made. All such adjustments are of a normal nature. The consolidated results of operations are not necessarily indicative of the consolidated results of operations which ServisFirst Bancshares, Inc. (the “Company”) may achieve for future interim periods or the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Form 10-K/A for the year ended December 31, 2013.

All reported amounts are in thousands except share and per share data.

NOTE 2 - CASH AND CASH EQUIVALENTS

Cash on hand, cash items in process of collection, amounts due from banks, and federal funds sold are included in cash and cash equivalents.

NOTE 3 - EARNINGS PER COMMON SHARE

Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock options and warrants.

	Three Months Ended March 31,
	2014		2013
	(In Thousands, Except Shares and Per Share Data)
Earnings per common share
Weighted average common shares outstanding		7,399,992		6,341,605
Net income available to common stockholders	$	11,656	$	9,151
Basic earnings per common share	$	1.58	$	1.44
Weighted average common shares outstanding		7,399,992		6,341,605
Dilutive effects of assumed conversions and exercise of stock options and warrants		261,898		734,900
Weighted average common and dilutive potential common shares outstanding		7,661,890		7,076,505
Net income, available to common stockholders	$	11,656	$	9,151
Effect of interest expense on convertible debt, net of tax and discretionary expenditures related to conversion	$	-	$	132
Net income available to common stockholders, adjusted for effect of debt conversion	$	11,656	$	9,283
Diluted earnings per common share	$	1.52	$	1.31

8

NOTE 4 - SECURITIES

The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2014 and December 31, 2013 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gain		Loss			Value
	(In Thousands)
March 31, 2014
Securities Available for Sale
U.S. Treasury and government sponsored agencies	$	42,846	$	632	$	(51	)	$	43,427
Mortgage-backed securities		83,753		2,785		(62	)		86,476
State and municipal securities		128,507		3,634		(488	)		131,653
Corporate debt		15,758		196		(9	)		15,945
Total	$	270,864	$	7,247	$	(610	)	$	277,501
Securities Held to Maturity
Mortgage-backed securities	$	26,428	$	336	$	(1,083	)	$	25,681
State and municipal securities		5,546		332		-			5,878
Total	$	31,974	$	668	$	(1,083	)	$	31,559
December 31, 2013
Securities Available for Sale
U.S. Treasury and government sponsored agencies	$	31,641	$	674	$	(41	)	$	32,274
Mortgage-backed securities		85,764		2,574		(98	)		88,240
State and municipal securities		127,083		3,430		(682	)		129,831
Corporate debt		15,738		163		(26	)		15,875
Total	$	260,226	$	6,841	$	(847	)	$	266,220
Securities Held to Maturity
Mortgage-backed securities	$	26,730	$	266	$	(1,422	)	$	25,574
State and municipal securities		5,544		197		-			5,741
Total	$	32,274	$	463	$	(1,422	)	$	31,315

The amortized cost and fair value of debt securities as of March 31, 2014 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories along with the other categories of debt securities.

	March 31, 2014
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Less than one year	$	3,891	$	3,871	$	-	$	-
One year to five years		108,817		111,350		-		-
Five years to ten years		73,615		74,969		-		-
More than ten years		788		835		5,546		5,878
Mortgage-backed securities		83,753		86,476		26,428		25,681
	$	270,864	$	277,501	$	31,974	$	31,559

We had no sales of available-for-sale debt securities during the first quarter of 2014. We sold one corporate debt security for total proceeds of $1.2 million and a gain of $123,000 during the first quarter of 2013.

All mortgage-backed securities are with government-sponsored enterprises (GSEs) such as Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Bank, and Federal Home Loan Mortgage Corporation.

The following table identifies, as of March 31, 2014 and December 31, 2013, the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. At March 31, 2014, 19 of the Company’s 675 debt securities had been in an unrealized loss position for 12 or more months. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost, which may be maturity; accordingly, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2014. Further, the Company believes any deterioration in value of its current investment securities is attributable to changes in market interest rates and not credit quality of the issuer.

9

	Less Than Twelve Months					Twelve Months or More					Total
	Gross					Gross					Gross
	Unrealized					Unrealized					Unrealized
	Losses			Fair Value		Losses			Fair Value		Losses			Fair Value
	(In Thousands)
March 31, 2014
U.S. Treasury and government sponsored agencies	$	(51	)	$	12,589	$	-		$	-	$	(51	)	$	12,589
Mortgage-backed securities		(621	)		20,014		(524	)		6,659		(1,145	)		26,673
State and municipal securities		(419	)		25,385		(69	)		4,038		(488	)		29,423
Corporate debt		(9	)		2,991		-			-		(9	)		2,991
Total	$	(1,100	)	$	60,979	$	(593	)	$	10,697	$	(1,693	)	$	71,676
December 31, 2013:
U.S. Treasury and government sponsored agencies	$	(41	)	$	5,854	$	-		$	-	$	(41	)	$	5,854
Mortgage-backed securities		(852	)		21,365		(668	)		6,691		(1,520	)		28,056
State and municipal securities		(607	)		30,666		(75	)		3,443		(682	)		34,109
Corporate debt		(26	)		5,958		-			-		(26	)		5,958
Total	$	(1,526	)	$	63,843	$	(743	)	$	10,134	$	(2,269	)	$	73,977

NOTE 5 – LOANS

The following table details the Company’s loans at March 31, 2014 and December 31, 2013:

	March 31,			December 31,
	2014			2013
	(Dollars In Thousands)
Commercial, financial and agricultural	$	1,306,058		$	1,278,649
Real estate - construction		157,127			151,868
Real estate - mortgage:
Owner-occupied commercial		711,067			710,372
1-4 family mortgage		285,368			278,621
Other mortgage		428,391			391,396
Subtotal: Real estate - mortgage		1,424,826			1,380,389
Consumer		49,786			47,962
Total Loans		2,937,797			2,858,868
Less: Allowance for loan losses		(31,728	)		(30,663	)
Net Loans	$	2,906,069		$	2,828,205
Commercial, financial and agricultural		44.46	%		44.73	%
Real estate - construction		5.35	%		5.31	%
Real estate - mortgage:
Owner-occupied commercial		24.20	%		24.85	%
1-4 family mortgage		9.71	%		9.74	%
Other mortgage		14.58	%		13.69	%
Subtotal: Real estate - mortgage		48.49	%		48.28	%
Consumer		1.70	%		1.68	%
Total Loans		100.00	%		100.00	%

The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. The following table presents credit quality indicators for the loan loss portfolio segments and classes. These categories are utilized to develop the associated allowance for loan losses using historical losses adjusted for current economic conditions defined as follows:

· Pass – loans which are well protected by the current net worth and paying capacity of the obligor (or obligors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral.

· Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

10

· Substandard – loans that exhibit well-defined weakness or weaknesses that presently jeopardize debt repayment. These loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

· Doubtful – loans that have all the weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.

Loans by credit quality indicator as of March 31, 2014 and December 31, 2013 were as follows:

			Special
March 31, 2014	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,264,111	$	36,607	$	5,340	$	-	$	1,306,058
Real estate - construction		142,287		5,131		9,709		-		157,127
Real estate - mortgage:
Owner-occupied commercial		693,100		15,657		2,310		-		711,067
1-4 family mortgage		271,603		1,269		12,496		-		285,368
Other mortgage		414,818		8,077		5,496		-		428,391
Total real estate mortgage		1,379,521		25,003		20,302		-		1,424,826
Consumer		48,969		-		817		-		49,786
Total	$	2,834,888	$	66,741	$	36,168	$	-	$	2,937,797

			Special
December 31, 2013	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,238,109	$	34,883	$	5,657	$	-	$	1,278,649
Real estate - construction		139,239		3,392		9,237		-		151,868
Real estate - mortgage:
Owner-occupied commercial		696,687		11,545		2,140		-		710,372
1-4 family mortgage		265,019		1,253		12,349		-		278,621
Other mortgage		379,419		8,179		3,798		-		391,396
Total real estate mortgage		1,341,125		20,977		18,287		-		1,380,389
Consumer		47,243		3		716		-		47,962
Total	$	2,765,716	$	59,255	$	33,897	$	-	$	2,858,868

Loans by performance status as of March 31, 2014 and December 31, 2013 were as follows:

March 31, 2014	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,305,610	$	448	$	1,306,058
Real estate - construction		152,848		4,279		157,127
Real estate - mortgage:
Owner-occupied commercial		709,670		1,397		711,067
1-4 family mortgage		283,343		2,025		285,368
Other mortgage		428,148		243		428,391
Total real estate mortgage		1,421,161		3,665		1,424,826
Consumer		48,984		802		49,786
Total	$	2,928,603	$	9,194	$	2,937,797

December 31, 2013	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,276,935	$	1,714	$	1,278,649
Real estate - construction		148,118		3,750		151,868
Real estate - mortgage:
Owner-occupied commercial		708,937		1,435		710,372
1-4 family mortgage		276,725		1,896		278,621
Other mortgage		391,153		243		391,396
Total real estate mortgage		1,376,815		3,574		1,380,389
Consumer		47,264		698		47,962
Total	$	2,849,132	$	9,736	$	2,858,868

11

Loans by past due status as of March 31, 2014 and December 31, 2013 were as follows:

March 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	$	1,127	$	98	$	-	$	1,225	$	448	$	1,304,385	$	1,306,058
Real estate - construction		1,755		-		15		1,770		4,264		151,093		157,127
Real estate - mortgage:
Owner-occupied commercial		224		-		-		224		1,397		709,446		711,067
1-4 family mortgage		45		169		-		214		2,025		283,129		285,368
Other mortgage		522		-		-		522		243		427,626		428,391
Total real estate - mortgage		791		169		-		960		3,665		1,420,201		1,424,826
Consumer		16		53		95		164		707		48,915		49,786
Total	$	3,689	$	320	$	110	$	4,119	$	9,084	$	2,924,594	$	2,937,797

December 31, 2013	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	$	73	$	-	$	-	$	73	$	1,714	$	1,276,862	$	1,278,649
Real estate - construction		-		-		-		-		3,750		148,118		151,868
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		1,435		708,937		710,372
1-4 family mortgage		177		-		19		196		1,877		276,548		278,621
Other mortgage		-		-		-		-		243		391,153		391,396
Total real estate - mortgage		177		-		19		196		3,555		1,376,638		1,380,389
Consumer		89		97		96		282		602		47,078		47,962
Total	$	339	$	97	$	115	$	551	$	9,621	$	2,848,696	$	2,858,868

The allowance for loan losses is maintained at a level which, in management’s judgment, is adequate to absorb credit losses inherent in the loan portfolio. The amount of the allowance is based on management’s evaluation of the collectability of the loan portfolio, including the nature of the portfolio, credit concentrations, trends in historical loss experience, specific impaired loans, economic conditions, and other risks inherent in the portfolio. Allowances for impaired loans are generally determined based on collateral values or the present value of the estimated cash flows. The allowance is increased by a provision for loan losses, which is charged to expense, and reduced by charge-offs, net of recoveries. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the allowance for losses on loans. Such agencies may require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.

The methodology utilized for the calculation of the allowance for loan losses is divided into four distinct categories. Those categories include allowances for non-impaired loans (ASC 450), impaired loans (ASC 310), external qualitative factors, and internal qualitative factors. A description of each category of the allowance for loan loss methodology is listed below.

Non-Impaired Loans. Non-impaired loans are grouped into homogeneous loan pools by loan type and are the following: commercial and industrial, construction and development, commercial real estate, second lien home equity lines of credit, and all other loans. Each loan pool is stratified by internal risk rating and multiplied by a loss allocation percentage derived from the loan pool historical loss rate. The historical loss rate is based on an age weighted 5 year history of net charge-offs experienced by pool, with the most recent net charge-off experience given a greater weighting. This results in the expected loss rate per year, adjusted by a qualitative adjustment factor and a years-to-impairment factor, for each pool of loans to derive the total amount of allowance for non-impaired loans.

Impaired Loans. Loans are considered impaired when based on current information and events it is probable that the Bank will be unable to collect all amounts due according to the original terms of the loan agreement. The collection of all amounts due according to contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price or the fair value of the underlying collateral. The fair value of collateral, reduced by costs to sell on a discounted basis, is used if a loan is collateral-dependent. Fair value estimates for specifically impaired collateral-dependent loans are derived from appraised values based on the current market value or as is value of the property, normally from recently received and reviewed appraisals. Appraisals are obtained from certified and licensed appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by our credit administration department, and values are adjusted downward to reflect anticipated disposition costs. Once this estimated net realizable value has been determined, the value used in the impairment assessment is updated for each impaired loan. As subsequent events dictate and estimated net realizable values decline, required reserves may be established or further adjustments recorded.

External Qualitative Factors . The determination of the portion of the allowance for loan losses relating to external qualitative factors is based on consideration of the following factors: gross domestic product growth rate, changes in prime rate, delinquency trends, peer delinquency trends, year over year loan growth and state unemployment rate trends. Data for the three most recent periods is utilized in the calculation for each external qualitative component. The factors have a consistent weighted methodology to calculate the amount of allowance due to external qualitative factors.

Internal Qualitative Factors . The determination of the portion of the allowance for loan losses relating to internal qualitative factors is based on the consideration of criteria which includes the following: number of extensions and deferrals, single pay and interest only loans, current financial information, credit concentrations and risk grade accuracy. A self-assessment for each of the criteria is made with a consistent weighted methodology used to calculate the amount of allowance required for internal qualitative factors.

12

The following table presents an analysis of the allowance for loan losses by portfolio segment as of March 31, 2014 and December 31, 2013, and changes in the allowance for loan losses for the three months ended March 31, 2014 and March 31, 2013. 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 -						Qualitative
	agricultural			construction			mortgage			Consumer			Factors		Total
	(In Thousands)
	Three Months Ended March 31, 2014
Allowance for loan losses:
Balance at December 31, 2013	$	11,170		$	5,809		$	7,495		$	855		$	5,334	$	30,663
Chargeoffs		(1,222	)		(23	)		(4	)		(58	)		-		(1,307	)
Recoveries		45			8			4			1			-		58
Provision		987			264			642			153			268		2,314
Balance at March 31, 2014	$	10,980		$	6,058		$	8,137		$	951		$	5,602	$	31,728

	Three Months Ended March 31, 2013
Allowance for loan losses:
Balance at December 31, 2012	$	8,233		$	6,511		$	4,912	$	199		$	6,403		$	26,258
Chargeoffs		(887	)		(1,990	)		-		(1	)		-			(2,878	)
Recoveries		6			7			-		2			-			15
Provision		1,599			2,114			825		(36	)		(218	)		4,284
Balance at March 31, 2013	$	8,951		$	6,642		$	5,737	$	164		$	6,185		$	27,679

	As of March 31, 2014
Allowance for loan losses:
Individually Evaluated for Impairment	$	1,422	$	2,184	$	2,703	$	802	$	-	$	7,111
Collectively Evaluated for Impairment		9,558		3,874		5,434		149		5,602		24,617
Loans:
Ending Balance	$	1,306,058	$	157,127	$	1,424,826	$	49,786		-	$	2,937,797
Individually Tested for Impairment		3,450		9,709		20,246		802		-		34,207
Collectively Evaluated for Impairment		1,302,608		147,418		1,404,580		48,984		-		2,903,590

	As of December 31, 2013
Allowance for loan losses:
Individually Evaluated for Impairment	$	1,992	$	1,597	$	1,982	$	699	$	-	$	6,270
Collectively Evaluated for Impairment		9,178		4,212		5,513		156		5,334		24,393
Loans:
Ending Balance	$	1,278,649	$	151,868	$	1,380,389	$	47,962		-	$	2,858,868
Individually Evaluated for Impairment		3,827		9,238		18,202		699		-		31,966
Collectively Evaluated for Impairment		1,274,822		142,630		1,362,187		47,263		-		2,826,902

13

The following table presents details of the Company’s impaired loans as of March 31, 2014 and December 31, 2013, respectively. Loans which have been fully charged off do not appear in the table.

	March 31, 2014
							For the three months ended March 31, 2014
									Interest
			Unpaid				Average		Income
	Recorded		Principal		Related		Recorded		Recognized
	Investment		Balance		Allowance		Investment		in Period
	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,161	$	1,654	$	-	$	1,414	$	14
Real estate - construction		2,214		2,652		-		1,964		11
Real estate - mortgage:
Owner-occupied commercial		759		759		-		767		2
1-4 family mortgage		1,198		1,198		-		1,198		15
Other mortgage		2,306		2,306		-		2,309		35
Total real estate - mortgage		4,263		4,263		-		4,274		52
Consumer		-		-		-		-		-
Total with no allowance recorded		7,638		8,569		-		7,652		77
With an allowance recorded:
Commercial, financial and agricultural		2,289		2,429		1,422		2,312		31
Real estate - construction		7,495		7,976		2,184		7,337		45
Real estate - mortgage:
Owner-occupied commercial		1,496		1,496		449		1,520		14
1-4 family mortgage		11,297		11,297		1,546		11,297		84
Other mortgage		3,190		3,288		708		3,194		37
Total real estate - mortgage		15,983		16,081		2,703		16,011		135
Consumer		802		802		802		808		-
Total with allowance recorded		26,569		27,288		7,111		26,468		211
Total Impaired Loans:
Commercial, financial and agricultural		3,450		4,083		1,422		3,726		45
Real estate - construction		9,709		10,628		2,184		9,301		56
Real estate - mortgage:
Owner-occupied commercial		2,255		2,255		449		2,287		16
1-4 family mortgage		12,495		12,495		1,546		12,495		99
Other mortgage		5,496		5,594		708		5,503		72
Total real estate - mortgage		20,246		20,344		2,703		20,285		187
Consumer		802		802		802		808		-
Total impaired loans	$	34,207	$	35,857	$	7,111	$	34,120	$	288

	December 31, 2013
									Interest
			Unpaid				Average		Income
	Recorded		Principal		Related		Recorded		Recognized
	Investment		Balance		Allowance		Investment		In Period
	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,210	$	1,210	$	-	$	1,196	$	63
Real estate - construction		1,967		2,405		-		1,363		32
Real estate - mortgage:
Owner-occupied commercial		577		577		-		603		32
1-4 family mortgage		1,198		1,198		-		1,200		55
Other mortgage		2,311		2,311		-		1,901		123
Total real estate - mortgage		4,086		4,086		-		3,704		210
Consumer		-		-		-		-		-
Total with no allowance recorded		7,263		7,701		-		6,263		305
With an allowance recorded:
Commercial, financial and agricultural		2,618		2,958		1,992		2,844		98
Real estate - construction		7,270		7,750		1,597		6,564		200
Real estate – mortgage:
Owner-occupied commercial		1,509		1,509		620		1,573		38
1-4 family mortgage		11,120		11,120		1,210		10,743		342
Other mortgage		1,487		1,586		152		1,873		96
Total real estate - mortgage		14,116		14,215		1,982		14,189		476
Consumer		699		699		699		790		28
Total with allowance recorded		24,703		25,622		6,270		24,387		802
Total Impaired Loans:
Commercial, financial and agricultural		3,828		4,168		1,992		4,040		161
Real estate - construction		9,237		10,155		1,597		7,927		232
Real estate – mortgage:
Owner-occupied commercial		2,086		2,086		620		2,176		70
1-4 family mortgage		12,318		12,318		1,210		11,943		397
Other mortgage		3,798		3,897		152		3,774		219
Total real estate - mortgage		18,202		18,301		1,982		17,893		686
Consumer		699		699		699		790		28
Total impaired loans	$	31,966	$	33,323	$	6,270	$	30,650	$	1,107

14

Troubled Debt Restructurings (“TDR”) at March 31, 2014, December 31, 2013 and March 31, 2013 totaled $13.5 million, $14.2 million and $12.3 million, respectively. At March 31, 2014, the Company had a related allowance for loan losses of $2.1 million allocated to these TDRs, compared to $2.4 million at December 31, 2013 and $1.4 million at March 31, 2013. The Company’s TDRs have resulted primarily from allowing the borrower to pay interest-only for an extended period of time, or through interest rate reductions rather than from debt forgiveness. There are ten TDR loans to one borrower in the amount of $4.1 million in payment default status at March 31, 2014. All other loans classified as TDRs as of March 31, 2014 are performing as agreed under the terms of their restructured plans. The following table presents an analysis of TDRs as of March 31, 2014 and March 31, 2013.

	March 31, 2014						March 31, 2013
			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		3	$	1,049	$	1,049		2	$	1,121	$	1,121
Real estate - construction		7		2,078		2,078		15		3,213		3,213
Real estate - mortgage:
Owner-occupied commercial		-		-		-		6		5,907		5,907
1-4 family mortgage		4		10,073		10,073		5		1,709		1,709
Other mortgage		1		278		278		1		301		301
Total real estate mortgage		5		10,351		10,351		12		7,917		7,917
Consumer		-		-		-		-		-		-
		15	$	13,478	$	13,478		29	$	12,251	$	12,251

	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
Troubled Debt Restructurings That Subsequently Defaulted Commercial, financial and agricultural		1	$	141		-	$	-
Real estate - construction		7		2,078		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		3		2,786
1-4 family mortgage		2		1,848		-		-
Other mortgage		-		-		-		-
Total real estate - mortgage		2		1,848		3		2,786
Consumer		-		-		-		-
		10	$	4,067		3	$	2,786

NOTE 6 - EMPLOYEE AND DIRECTOR BENEFITS

Stock Options

At March 31, 2014, the Company had stock incentive plans as described below. The compensation cost that has been charged to earnings for the plans was approximately $1,020,000 and $259,000 for the three months ended March 31, 2014 and 2013. The Company recognized a non-routine expense of $703,000 as a result of an immaterial correction of its accounting for vested stock options previously granted to members of its advisory boards in the Dothan, Huntsville and Montgomery, Alabama markets. Such grants were historically accounted for under the provisions of Accounting Standards Codification (“ASC”) 718-10, Compensation – Stock Compensation, and now have been determined to be recognized as an expense of the fair value of such grants in accordance with the provisions of ASC 505-50, Equity-Based Payments to Non-Employees.

15

The Company’s 2005 Amended and Restated Stock Incentive Plan allows for the grant of stock options to purchase up to 1,025,000 shares of the Company’s common stock. The Company’s 2009 Stock Incentive Plan authorizes the grant of up to 425,000 shares and allows for the issuance of Stock Appreciation Rights, Restricted Stock, Stock Options, Non-stock Share Equivalents, Performance Shares or Performance Units. Both plans allow for the grant of incentive stock options and non-qualified stock options, and awards are generally granted with an exercise price equal to the estimated fair market value of the Company’s common stock at the date of grant. The maximum term of the options granted under the plans is ten years.

The Company has granted non-plan options to certain persons representing key business relationships to purchase up to an aggregate amount of 55,000 shares of the Company’s common stock at between $15.00 and $20.00 per share for ten years. These options are non-qualified and not part of either plan.

The Company estimates the fair value of each stock option award using a Black-Scholes-Merton valuation model which incorporates the assumptions noted in the following table. Expected volatilities are based on an index of southeastern United States publicly traded banks. The expected term for options granted is based on the short-cut method and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U. S. Treasury yield curve in effect at the time of grant.

	2014			2013
Expected volatility		19.25	%		18.50	%
Expected dividends		1.45	%		-	%
Expected term (in years)		8 years			7 years
Risk-free rate		2.33	%		1.39	%

The weighted average grant-date fair value of options granted during the three months ended March 31, 2014 and March 31, 2013 was $8.86 and $8.03, respectively.

The following table summarizes stock option activity during the three months ended March 31, 2014 and March 31, 2013:

						Weighted
				Weighted		Average
				Average		Remaining
				Exercise		Contractual		Aggregate
	Shares			Price		Term (years)		Intrinsic Value
								(In Thousands)
Three Months Ended March 31, 2014:
Outstanding at January 1, 2014		776,300		$	23.08		5.5	$	14,300
Granted		38,000			41.50		9.9		-
Exercised		(174,800	)		15.62		2.8		4,523
Forfeited		-			-		-		-
Outstanding at March 31, 2014		639,500			26.21		6.1	$	9,777
Exercisable at March 31, 2014		243,744		$	15.99		3.4	$	6,217
Three Months Ended March 31, 2013:
Outstanding at January 1, 2013		816,500		$	20.87		5.8	$	9,905
Granted		25,000			33.00		10.0		-
Exercised		(9,000	)		10.00		2.2		207
Forfeited		-			-		-		-
Outstanding at March 31, 2013		832,500			21.35		5.7	$	9,698
Exercisable at March 31, 2013		458,995		$	14.37		3.5	$	8,550

As of March 31, 2014, outstanding stock options include 55,000 options granted to non-employees of the Company. 20,000 of these stock options were granted to the Company’s advisory board in its Dothan, Alabama market in February 2009 and were fully vested as of March 31, 2014. 35,000 of these options were granted to the Company’s advisory board in its Mobile, Alabama and Pensacola, Florida markets in December 2013 and vest on their fifth anniversary.

As of March 31, 2014, there was $1,711,000 of total unrecognized compensation cost related to non-vested stock options. The cost is expected to be recognized on the straight-line method over the next 2.1 years.

Restricted Stock

The Company has issued 78,500 shares of restricted stock to certain employees. The value of restricted stock awards is determined to be the current value of the Company’s stock at the time of grant, and this total value will be recognized as compensation expense over the vesting period, which is five years from the date of grant. As of March 31, 2014, there was $1,299,000 of total unrecognized compensation expense. The expense is expected to be recognized evenly over the remaining 1.8 years of the restricted stock’s vesting period.

16

Stock Warrants

The Company granted warrants for 15,000 shares of common stock of the Company with an exercise price of $25 per share in the second quarter of 2009. These warrants were granted in connection with the issuance of the Company’s 8.25% Subordinated Note. All of these warrants were outstanding and fully vested as of March 31, 2014.

NOTE 7 - DERIVATIVES

The Company has entered into agreements with secondary market investors to deliver loans on a “best efforts delivery” basis. When a rate is committed to a borrower, it is based on the best price that day and locked with the investor for the customer for a 30-day period. In the event the loan is not delivered to the investor, the Company has no risk or exposure with the investor. The interest rate lock commitments related to loans that are originated for later sale are classified as derivatives. The fair values of the Company’s rate lock commitments to customers as of March 31, 2014 and December 31, 2013 were not material.

NOTE 8 – RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

In July 2013, the FASB issued ASU No. 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes, which permits the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the U.S. Treasury and London Interbank Offered Rate. The ASU also amends previous rules by removing the restriction on using different benchmark rates for similar hedges. This amendment applies to all entities that elect to apply hedge accounting of the benchmark interest rate. The amendments in this ASU were effective for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company has adopted this update, but such adoption had no impact on its financial position or results of operations.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. These amendments in this ASU are effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013. Early adoption and retrospective application is permitted. The Company has adopted this update, but such adoption had no impact on its financial position or results of operations.

In January 2014, the FASB issued ASU No. 2014-1, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects, which provides guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. It permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial investment in proportion to the tax credits and other tax benefits received, and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments are effective for public entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and are effective for all entities other than public entities for annual periods beginning after December 15, 2014, and interim reporting periods within annual periods beginning after December 15, 2015. Early adoption is permitted retrospective application is required for all periods presented. The Company made an investment in a limited partnership during the first quarter of 2014 which has invested in a qualified affordable housing project. The Company has made an election to account for this investment as provided for in this update, and will recognize the net investment performance of its share of the partnership as tax credits become available.

NOTE 9 - FAIR VALUE MEASUREMENT

Measurement of fair value under U.S. GAAP establishes a hierarchy that prioritizes observable and unobservable inputs used to measure fair value, as of the measurement date, into three broad levels, which are described below:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

17

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and also considers counterparty credit risk in its assessment of fair value.

Debt Securities. Where quoted prices are available in an active market, securities are classified within Level 1 of the hierarchy. Level 1 securities include highly liquid government securities such as U.S. Treasuries and exchange-traded equity securities. For securities traded in secondary markets for which quoted market prices are not available, the Company generally relies on pricing services provided by independent vendors. Such independent pricing services are to advise the Company on the carrying value of the securities available for sale portfolio. As part of the Company’s procedures, the price provided from the service is evaluated for reasonableness given market changes. When a questionable price exists, the Company investigates further to determine if the price is valid. If needed, other market participants may be utilized to determine the correct fair value. The Company has also reviewed and confirmed its determinations in discussions with the pricing source regarding their methods of price discovery. Securities measured with these techniques are classified within Level 2 of the hierarchy and often involve using quoted market prices for similar securities, pricing models or discounted cash flow calculations using inputs observable in the market where available. Examples include U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions, and certain corporate, asset-backed and other securities. In cases where Level 1 or Level 2 inputs are not available, securities are classified in Level 3 of the hierarchy.

Impaired Loans. Impaired loans are measured and reported at fair value when full payment under the loan terms is not probable. Impaired loans are carried at the present value of expected future cash flows using the loan’s existing rate in a discounted cash flow calculation, or the fair value of the collateral if the loan is collateral-dependent. Expected cash flows are based on internal inputs reflecting expected default rates on contractual cash flows. This method of estimating fair value does not incorporate the exit-price concept of fair value described in Accounting Standards Codification (“ASC”) 820-10 and would generally result in a higher value than the exit-price approach. For loans measured using the estimated fair value of collateral less costs to sell, fair value is generally determined based on appraisals performed by certified and licensed appraisers using inputs such as absorption rates, capitalization rates, and market comparables, adjusted for estimated costs to sell. Management modifies the appraised values, if needed, to take into account recent developments in the market or other factors, such as changes in absorption rates or market conditions from the time of valuation, and anticipated sales values considering management’s plans for disposition. Such modifications to the appraised values could result in lower valuations of such collateral. Estimated costs to sell are based on current amounts of disposal costs for similar assets. These measurements are classified as Level 3 within the valuation hierarchy. Impaired loans are subject to nonrecurring fair value adjustment upon initial recognition or subsequent impairment. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly based on the same factors identified above. The amount recognized as an impairment charge related to impaired loans that are measured at fair value on a nonrecurring basis was $2,235,000 during the three months ended March 31, 2014, and $3,925,000 during the three months ended March 31, 2013.

Other Real Estate Owned. Other real estate assets (“OREO”) acquired through, or in lieu of, foreclosure are held for sale and are initially recorded at the lower of cost or fair value, less selling costs. Any write-downs to fair value at the time of transfer to OREO are charged to the allowance for loan losses subsequent to foreclosure. Values are derived from appraisals of underlying collateral and discounted cash flow analysis. Appraisals are performed by certified and licensed appraisers. Subsequent to foreclosure, valuations are updated periodically and assets are marked to current fair value, not to exceed the new cost basis. In the determination of fair value subsequent to foreclosure, management also considers other factors or recent developments, such as changes in absorption rates and market conditions from the time of valuation, and anticipated sales values considering management’s plans for disposition, which could result in adjustment to lower the property value estimates indicated in the appraisals. These measurements are classified as Level 3 within the valuation hierarchy. A loss on the sale and write-downs of OREO of $306,000 was recognized during the three months ended March 31, 2014, and $308,000 during the three months ended March 31, 2013. These charges were for write-downs in the value of OREO subsequent to foreclosure and losses on the disposal of OREO. OREO is classified within Level 3 of the hierarchy.

The following table presents the Company’s financial assets and financial liabilities carried at fair value on a recurring basis as of March 31, 2014 and December 31, 2013:

18

	Fair Value Measurements at March 31, 2014 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable Inputs		Unobservable
	Assets (Level 1)		(Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Recurring Basis:
Available for sale debt securities:
U.S. Treasury and government sponsored agencies	$	-	$	43,427	$	-	$	43,427
Mortgage-backed securities		-		86,476		-		86,476
State and municipal securities		-		131,653		-		131,653
Corporate debt		-		15,945		-		15,945
Total assets at fair value	$	-	$	277,501	$	-	$	277,501

	Fair Value Measurements at December 31, 2013 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable Inputs		Unobservable
	Assets (Level 1)		(Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Recurring Basis:
Available for sale debt securities:
U.S. Treasury and government sponsored agencies	$	-	$	32,274	$	-	$	32,274
Mortgage-backed securities		-		88,240		-		88,240
State and municipal securities		-		129,831		-		129,831
Corporate debt		-		15,875		-		15,875
Total assets at fair value	$	-	$	266,220	$	-	$	266,220

The following table presents the Company’s financial assets and financial liabilities carried at fair value on a nonrecurring basis as of March 31, 2014 and December 31, 2013:

	Fair Value Measurements at March 31, 2014 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	-	$	-	$	27,096	$	27,096
Other real estate owned and repossessed assets		-		-		9,752		9,752
Total assets at fair value	$	-	$	-	$	36,848	$	36,848

	Fair Value Measurements at December 31, 2013 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	-	$	-	$	25,696	$	25,696
Other real estate owned		-		-		12,861		12,861
Total assets at fair value	$	-	$	-	$	38,557	$	38,557

The fair value of a financial instrument is the current amount that would be exchanged in a sale between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Current U.S. GAAP excludes certain financial instruments and all nonfinancial instruments from its fair value disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

19

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash and cash equivalents: The carrying amounts reported in the statements of financial condition approximate those assets’ fair values.

Debt securities: Where quoted prices are available in an active market, securities are classified within Level 1 of the hierarchy. Level 1 securities include highly liquid government securities such as U.S. treasuries and exchange-traded equity securities. For securities traded in secondary markets for which quoted market prices are not available, the Company generally relies on prices obtained from independent vendors. Such independent pricing services are to advise the Company on the carrying value of the securities available for sale portfolio. As part of the Company’s procedures, the price provided from the service is evaluated for reasonableness given market changes. When a questionable price exists, the Company investigates further to determine if the price is valid. If needed, other market participants may be utilized to determine the correct fair value. The Company has also reviewed and confirmed its determinations in discussions with the pricing service regarding their methods of price discovery. Securities measured with these techniques are classified within Level 2 of the hierarchy and often involve using quoted market prices for similar securities, pricing models or discounted cash flow calculations using inputs observable in the market where available. Examples include U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions, and certain corporate, asset-backed and other securities. In cases where Level 1 or Level 2 inputs are not available, securities are classified in Level 3 of the fair value hierarchy.

Restricted equity securities: Fair values for other investments are considered to be their cost as they are redeemed at par value.

Loans, net: For variable-rate loans that re-price frequently and with no significant change in credit risk, fair value is based on carrying amounts. The fair value of other loans (for example, fixed-rate commercial real estate loans, mortgage loans, and industrial loans) is estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future expected loss experience and risk characteristics. The method of estimating fair value does not incorporate the exit-price concept of fair value as prescribed by ASC 820 and generally produces a higher value than an exit-price approach. The measurement of the fair value of loans is classified within Level 3 of the fair value hierarchy.

Mortgage loans held for sale: Loans are committed to be delivered to investors on a “best efforts delivery” basis within 30 days of origination. Due to this short turn-around time, the carrying amounts of the Company’s agreements approximate their fair values.

Derivatives: The fair value of the derivative agreements are estimated by a third party using inputs that are observable or can be corroborated by observable market data. As part of the Company’s procedures, the price provided from the third party is evaluated for reasonableness given market changes. These measurements are classified within Level 2 of the fair value hierarchy.

Accrued interest and dividends receivable: The carrying amounts in the statements of condition approximate these assets’ fair value.

Bank owned life insurance contracts: The carrying amounts in the statements of condition approximate these assets’ fair value.

Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation using interest rates currently offered for deposits with similar remaining maturities. The fair value of the Company’s time deposits do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value. Measurements of the fair value of certificates of deposit are classified within Level 2 of the fair value hierarchy.

Other borrowings: The fair values of borrowings are estimated using discounted cash flow analysis, based on interest rates currently being offered by the Federal Home Loan Bank for borrowings of similar terms as those being valued. These measurements are classified as Level 2 in the fair value hierarchy.

Accrued interest payable: The carrying amounts in the statements of condition approximate these assets’ fair value.

Loan commitments: The fair values of the Company’s off-balance-sheet financial instruments are based on fees currently charged to enter into similar agreements. Since the majority of the Company’s other off-balance-sheet financial instruments consists of non-fee-producing, variable-rate commitments, the Company has determined they do not have a distinguishable fair value.

20

The carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2014 and December 31, 2013 are presented in the following table. This table includes those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis.

	March 31, 2014				December 31, 2013
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
	(In Thousands)
Financial Assets:
Level 2 inputs:
Available for sale debt securities	$	277,501	$	277,501	$	266,220	$	266,220
Held to maturity debt securities		31,974		31,559		32,274		31,315
Restricted equity securities		3,738		3,738		3,738		3,738
Federal funds sold		10,535		10,535		8,634		8,634
Mortgage loans held for sale		6,704		6,704		8,134		8,134
Bank owned life insurance contracts		69,544		69,544		69,008		69,008
Level 3 Inputs:
Loans, net	$	2,906,069	$	2,909,139	$	2,828,205	$	2,825,924
Financial Liabilities:
Level 2 inputs:
Deposits	$	3,031,041	$	3,033,281	$	3,019,642	$	3,021,847
Federal funds purchased		195,765		195,765		174,380		174,380
Other borrowings		19,949		19,949		19,940		19,940

NOTE 10 – SUBSEQUENT EVENTS

The Company has evaluated all subsequent events through the date of this filing to ensure that this Form 10-Q includes appropriate disclosure of events both recognized in the financial statements as of March 31, 2014, and events which occurred subsequent to March 31, 2014 but were not recognized in the financial statements. As of the date of this filing, there were no subsequent events that required recognition or disclosure.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis is designed to provide a better understanding of various factors relating to the results of operations and financial condition of ServisFirst Bancshares, Inc. (the “Company”) and its wholly owned subsidiary, ServisFirst Bank (the “Bank”). This discussion is intended to supplement and highlight information contained in the accompanying unaudited consolidated financial statements as of March 31, 2014 and for the three months ended March 31, 2014 and March 31, 2013.

Forward-Looking Statements

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. 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. The Company cautions that such forward-looking statements, wherever they occur in this quarterly report or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company’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; 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 and tornados, in our geographic markets; and increased competition from both banks and non-banks. 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 “Cautionary Note Regarding Forward Looking Statements” and “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.

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Business

We are a bank holding company under the Bank Holding Company Act of 1956 and are headquartered in Birmingham, Alabama. Our wholly-owned subsidiary, ServisFirst Bank, an Alabama banking corporation, provides commercial banking services through twelve full-service banking offices located in Alabama and the panhandle of Florida, as well as a loan production office in Nashville, Tennessee. Through the bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions.

Our principal business is to accept deposits from the public and to make loans and other investments. Our principal sources of funds for loans and investments are demand, time, savings, and other deposits (including negotiable orders of withdrawal, or NOW accounts). Our principal sources of income are interest and fees collected on loans, interest and dividends collected on other investments and service charges. Our principal expenses are interest paid on savings and other deposits (including NOW accounts), interest paid on our other borrowings, employee compensation, office expenses and other overhead expenses.

Overview

As of March 31, 2014, we had consolidated total assets of $3.57 billion, up $0.05 billion, or 1.5%, from total assets at December 31, 2013. Total loans were $2.94 billion at March 31, 2014, up $0.08 billion, or 2.8%, over $2.86 billion at December 31, 2013. Total deposits were $3.03 billion at March 31, 2014, up $0.01 billion, or 0.4%, from $3.02 billion at December 31, 2013.

Net income for the quarter ended March 31, 2014 was $11.7 million, an increase of $2.5 million, or 27.4%, from $9.2 million for the quarter ended March 31, 2013. Basic and diluted earnings per common share were $1.58 and $1.52, respectively, for the three months ended March 31, 2014, compared to $1.44 and $1.31, respectively, for the corresponding period in 2013. This increase was primarily attributable to increased net interest income of $4.9 million resulting from a $627.3 million, or 23.0%, increase in average interest-earning assets from the quarters ended March 31, 2013 to 2014. This increase in net interest income and average interest-earning assets is further explained in “Results of Operations” “Net Interest Income” following.

Recent Developments – Second Quarter 2014 Noninterest Expense

The Company previously granted in December 2013 to our Pensacola, Florida and Mobile, Alabama advisory board members a total of 35,000 stock options, which vest on the fifth anniversary of the date of grant. Consistent with the correction of the accounting treatment for the options granted to our Dothan, Huntsville and Montgomery, Alabama advisory board members, the Company accounts for these options in accordance with FASB ASC Topic 505-50. FASB ASC Topic 505-50 requires the Company to recognize as an expense during each reporting period changes in the fair value of the unvested portion of such options, determined using a Black-Scholes option pricing model. In order to reduce the future uncertainty and variability of expense associated with these unvested options under FASB ASC Topic 505-50, on April 21, 2014, the Company’s compensation committee approved a modification to the 35,000 stock options to accelerate the vesting of these options. This modification will accelerate the five year vesting period of these stock options to the date on which the Company enters into an underwriting agreement with the underwriters in the Registration Statement on Form S-1 which the Company has filed with the SEC, or, alternatively, if we determine not to proceed with the offering contemplated therein, the date we make such a determination. The compensation committee determined that the appropriate calculation of the fair value of the accelerated options should be based on the initial public offering price of our common stock, assuming consummation of the public offering. This correction of the accounting treatment will be a non-cash item and will not impact the Company’s operating activities or cash from operations.

Critical Accounting Policies

The accounting and financial policies of the Company conform to U.S. generally accepted accounting principles and to general practices within the banking industry. To prepare consolidated financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, valuation of foreclosed real estate, deferred taxes, and fair value of financial instruments are particularly subject to change. Information concerning our accounting policies with respect to these items is available in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2013.

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Financial Condition

Cash and Cash Equivalents

At March 31, 2014, we had $10.5 million in federal funds sold and other investments, compared to $8.6 million at December 31, 2013. We also maintain balances at the Federal Reserve Bank of Atlanta, which earn interest. At March 31, 2014, we had $132.0 million in balances at the Federal Reserve, compared to $186.0 million at December 31, 2013.

Investment Securities

Debt securities available for sale totaled $277.5 million at March 31, 2014 and $266.2 million at December 31, 2013. Investment securities held to maturity totaled $32.0 million at March 31, 2014 and $32.3 million at December 31, 2013. We had pay downs of $4.6 million on mortgage-backed securities and calls and maturities of $2.3 million on municipal securities during the first three months of 2014. We bought $12.7 million in U.S. Treasury and government agency securities and $4.1 million in municipal securities during the first three months of 2014. All securities bought during the first three months of 2014 are classified at available for sale.

The objective of our investment policy is to invest funds not otherwise needed to meet our loan demand to earn the maximum return, yet still maintain sufficient liquidity to meet fluctuations in our loan demand and deposit structure. In doing so, we balance the market and credit risks against the potential investment return, make investments compatible with the pledge requirements of any deposits of public funds, maintain compliance with regulatory investment requirements, and assist certain public entities with their financial needs. The investment committee has full authority over the investment portfolio and makes decisions on purchases and sales of securities. The entire portfolio, along with all investment transactions occurring since the previous board of directors meeting, is reviewed by the board at each monthly meeting. The investment policy allows portfolio holdings to include short-term securities purchased to provide us with needed liquidity and longer term securities purchased to generate level income for us over periods of interest rate fluctuations.

Each quarter, management assesses whether there have been events or economic circumstances indicating that a security on which there is an unrealized loss is other-than-temporarily impaired. Management considers several factors, including the amount and duration of the impairment; the intent and ability of the Company to hold the security for a period sufficient for a recovery in value; and known recent events specific to the issuer or its industry. In analyzing an issuer’s financial condition, management considers whether the securities are issued by agencies of the federal government, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports, among other things. As we currently do not have the intent to sell these securities and it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis, which may be at maturity, no declines are deemed to be other than temporary. We will continue to evaluate our investment securities for possible other-than-temporary impairment, which could result in non-cash charges to earnings in one or more future periods.

All securities held are traded in liquid markets. As of March 31, 2014, we owned certain restricted securities of the Federal Home Loan Bank with an aggregate book value and market value of $3.5 million and certain securities of First National Bankers Bank in which we invested $0.2 million. We had no investments in any one security, restricted or liquid, in excess of 10% of our stockholders’ equity.

The Company does not invest in collateralized debt obligations (“CDOs”). All tax-exempt securities currently held are issued by government issuers within the State of Alabama. All corporate bonds had a Standard and Poor’s or Moody’s rating of A-1 or better when purchased. The total investment portfolio as of March 31, 2014 has a combined average credit rating of AA.

The carrying value of investment securities pledged to secure public funds on deposit and for other purposes as required by law was $219.9 million and $202.3 million as of March 31, 2014 and December 31, 2013, respectively.

Loans

We had total loans of $2.94 billion at March 31, 2014, up $0.08 billion, or 2.8%, compared to $2.86 billion at December 31, 2013. At March 31, 2014, the percentage of our total loans in each of our markets were as follows:

	Percentage of Total Loans in MSA
Birmingham-Hoover, AL MSA		50.38	%
Huntsville, AL MSA		14.72	%
Montgomery, AL MSA		9.86	%
Dothan, AL MSA		12.42	%
Mobile, AL MSA		3.20	%
Total Alabama MSAs		90.58	%
Pensacola, FL MSA		7.44	%
Nashville, TN MSA		1.98	%

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Asset Quality

The allowance for loan losses is established and maintained at levels management deems adequate to absorb anticipated credit losses from identified and otherwise inherent risks in the loan portfolio as of the balance sheet date. In assessing the adequacy of the allowance for loan losses, management considers its evaluation of the loan portfolio, past due loan experience, collateral values, current economic conditions and other factors considered necessary to maintain the allowance at an adequate level. Our management believes that the allowance was adequate at March 31, 2014.

The following table presents the allocation of the allowance for loan losses for each respective loan category with the corresponding percentage of loans in each category to total loans. Management believes that the comprehensive allowance analysis developed by our credit administration group is in compliance with all current regulatory guidelines.

			Percentage
			of loans in
			each
			category to
March 31, 2014	Amount		total loans
	(In Thousands)
Commercial, financial and agricultural	$	10,980		44.46	%
Real estate - construction		6,058		5.35	%
Real estate - mortgage		8,137		48.49	%
Consumer		951		1.70	%
Qualitative Factors		5,602		-	%
Total	$	31,728		100.00	%

			Percentage
			of loans in
			each
			category to
December 31, 2013	Amount		total loans
	(In Thousands)
Commercial, financial and agricultural	$	11,170		44.73	%
Real estate - construction		5,809		5.31	%
Real estate - mortgage		7,495		48.28	%
Consumer		855		1.68	%
Qualitative Factors		5,334		-	%
Total	$	30,663		100.00	%

Nonperforming Assets

Total nonperforming loans, which include nonaccrual loans and loans 90 or more days past due and still accruing, decreased to $9.2 million at March 31, 2014, compared to $9.7 million at December 31, 2013. Of this total, nonaccrual loans of $9.1 million at March 31, 2014, represented a net decrease of $0.5 million from nonaccrual loans at December 31, 2013. There were two loans 90 or more days past due and still accruing in the amount of $110,000, at March 31, 2014, compared to two loans 90 or more days past due and still accruing in the amount of $115,000, at December 31, 2013. Troubled Debt Restructurings (“TDR”) at March 31, 2014 and December 31, 2013 were $13.5 million and $14.2 million, respectively. There were ten TDR loans in the amount of $4.1 million in payment default status at March 31, 2014.

Other real estate owned (OREO) and repossessions decreased to $9.8 million at March 31, 2014, from $12.9 million at December 31, 2013. The total number of OREO and repossessed asset accounts decreased to 34 at March 31, 2014, from 51 at December 31, 2013.

24

The following table summarizes our nonperforming assets and TDRs at March 31, 2014 and December 31, 2013:

	March 31, 2014					December 31, 2013
				Number of					Number of
	Balance			Loans		Balance			Loans
	(Dollar Amounts In Thousands)
Nonaccrual loans:
Commercial, financial and agricultural	$	448			6	$	1,714			9
Real estate - construction		4,264			16		3,749			14
Real estate - mortgage:
Owner-occupied commercial		1,397			3		1,435			3
1-4 family mortgage		2,025			3		1,878			3
Other mortgage		243			1		243			1
Total real estate - mortgage		3,665			7		3,556			7
Consumer		707			5		602			4
Total Nonaccrual loans:	$	9,084			34	$	9,621			34
90+ days past due and accruing:
Commercial, financial and agricultural	$	-			-	$	-			-
Real estate - construction		15			1		-			-
Real estate - mortgage:
Owner-occupied commercial		-			-		-			-
1-4 family mortgage		-			-		19			1
Other mortgage		-			-		-			-
Total real estate - mortgage		-			-		19			1
Consumer		95			1		96			1
Total 90+ days past due and accruing:	$	110			2	$	115			2
Total Nonperforming Loans:	$	9,194			36	$	9,736			36
Plus: Other real estate owned and repossessions		9,752			34		12,861			51
Total Nonperforming Assets	$	18,946			70	$	22,597			87
Restructured accruing loans:
Commercial, financial and agricultural	$	908			2	$	962			2
Real estate - construction		-			-		217			1
Real estate - mortgage:
1-4 family mortgage		8,225			2		8,225			2
Other mortgage		278			1		285			1
Total real estate - mortgage		8,503			3		8,510			3
Total restructured accruing loans:	$	9,411			5	$	9,689			6
Total Nonperforming assets and restructured accruing loans	$	28,357			75	$	32,286			93
Ratios:
Nonperforming loans to total loans		0.31	%				0.34	%
Nonperforming assets to total loans plus other real estate owned and repossessions		0.64	%				0.79	%
Nonperforming loans plus restructured accruing loans to total loans plus other real estate owned and repossessions		0.63	%				0.68	%

The balance of nonperforming assets can fluctuate due to changes in economic conditions. We have established a policy to discontinue accruing interest on a loan (i.e., place the loan on nonaccrual status) after it has become 90 days delinquent as to payment of principal or interest, unless the loan is considered to be well-collateralized and is actively in the process of collection. In addition, a loan will be placed on nonaccrual status before it becomes 90 days delinquent unless management believes that the collection of interest is expected. Interest previously accrued but uncollected on such loans is reversed and charged against current income when the receivable is determined to be uncollectible. Interest income on nonaccrual loans is recognized only as received. If we believe that a loan will not be collected in full, we will increase the allowance for loan losses to reflect management’s estimate of any potential exposure or loss. Generally, payments received on nonaccrual loans are applied directly to principal.

25

Impaired Loans and Allowance for Loan Losses

We have allocated approximately $6.1 million of our allowance for loan losses to real estate construction, including acquisition and development and lot loans, $11.0 million to commercial, financial and agricultural loans, and $9.0 million to other loan types. We have a total loan loss reserve as of March 31, 2014 allocable to specific loan types of $26.1 million. Another $5.6 million of our allowance for loan losses is based on our judgment regarding various external and internal factors, including macroeconomic trends, our assessment of the Company’s loan growth prospects, and evaluations of internal risk controls. The total resulting loan loss reserve is $31.7 million. Based upon historical performance, known factors, overall judgment, and regulatory methodologies, including consideration of the possible effect of current residential housing market defaults and business failures plaguing financial institutions in general, management believes that the current methodology used to determine the adequacy of the allowance for loan losses is reasonable.

As of March 31, 2014, we had impaired loans of $34.2 million inclusive of nonaccrual loans, an increase of $2.2 million from $32.0 million as of December 31, 2013. We allocated $7.1 million of our allowance for loan losses at March 31, 2014 to these impaired loans. A loan is considered impaired, based on current information and events, if it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the original loan agreement. Impairment does not always indicate credit loss, but provides an indication of collateral exposure based on prevailing market conditions and third-party valuations. Impaired loans are measured by either the present value of expected future cash flows discounted at each loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent. The amount of impairment, if any, and subsequent changes are included in the allowance for loan losses. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Our credit risk management team performs verification and testing to ensure appropriate identification of impaired loans and that proper reserves are held on these loans.

Of the $34.2 million of impaired loans reported as of March 31, 2014, $9.7 million were real estate – construction loans, $7.4 million (a total of 21 loans with 6 builders) were residential construction loans, and $135,000 consisted of various residential lot loans to 2 builders.

Deposits

Total deposits increased by $0.01 billion to $3.03 billion at March 31, 2014 compared to $3.02 billion at December 31, 2013. We anticipate long-term sustainable growth in deposits through continued development of market share in our less mature markets and through organic growth in our mature markets.

For amounts and rates of our deposits by category, see the table “Average Consolidated Balance Sheets and Net Interest Analysis on a Fully Taxable-equivalent Basis” under the subheading “Net Interest Income”

Borrowings

Our borrowings consist of federal funds purchased and subordinated notes payable. We had $195.7 million and $174.4 million at March 31, 2014 and December 31, 2013, respectively, in federal funds purchased from respondent banks that are clients of our correspondent banking unit. The average rate paid on these borrowings was 0.28% for the quarter ended March 31, 2014. $19.9 million in other borrowings consist of 5.50% Subordinated Notes due November 9, 2022, which were issued in a private placement in November 2012. The notes pay interest semi-annually.

Liquidity

Liquidity is defined as our ability to generate sufficient cash to fund current loan demand, deposit withdrawals, and other cash demands and disbursement needs, and otherwise to operate on an ongoing basis.

The retention of existing deposits and attraction of new deposit sources through new and existing customers is critical to our liquidity position. If our liquidity were to decline due to a run-off in deposits, we have procedures that provide for certain actions under varying liquidity conditions. These actions include borrowing from existing correspondent banks, selling or participating loans, and curtailing loan commitments and funding. At March 31, 2014, liquid assets, which are represented by cash and due from banks, federal funds sold and unpledged available-for-sale securities, totaled $358.6 million. Additionally, the Bank had borrowing availability of approximately $130.0 million in unused federal funds lines of credit with regional banks, subject to certain restrictions and collateral requirements. We believe these sources of funding are adequate to meet immediate anticipated funding needs, but we will need additional capital to maintain our current growth. Our management meets on a quarterly basis to review sources and uses of funding to determine the appropriate strategy to ensure an appropriate level of liquidity. At the current time, our long-term liquidity needs primarily relate to funds required to support loan originations and commitments and deposit withdrawals. Our regular sources of funding are from the growth of our deposit base, repayment of principal and interest on loans, the sale of loans and the renewal of time deposits. In addition, we have issued debt as described above under “Borrowings”.

26

We are subject to general FDIC guidelines that require a minimum level of liquidity. Management believes our liquidity ratios meet or exceed these guidelines. Our management is not currently aware of any trends or demands that are reasonably likely to result in liquidity materially increasing or decreasing.

The following table reflects the contractual maturities of our term liabilities as of March 31, 2014. The amounts shown do not reflect any early withdrawal or prepayment assumptions.

	Payments due by Period
					Over 1 - 3		Over 3 - 5
	Total		1 year or less		years		years		Over 5 years
	(In Thousands)
Contractual Obligations (1)
Deposits without a stated maturity	$	2,624,189	$	-	$	-	$	-	$	-
Certificates of deposit (2)		406,852		250,697		115,150		41,005		-
Federal funds purchased		195,762		195,762		-		-		-
Subordinated note payable		19,949		-		-		-		19,949
Operating lease commitments		16,165		2,530		4,909		4,108		4,618
Total	$	3,262,917	$	448,989	$	120,059	$	45,113	$	24,567

(1) Excludes interest

(2) Certificates of deposit give customers the right to early withdrawal. Early withdrawals may be subject to penalties.

The penalty amount depends on the remaining time to maturity at the time of early withdrawal.

Capital Adequacy

As of March 31, 2014, our most recent notification from the FDIC categorized us as well-capitalized under the regulatory framework for prompt corrective action. To remain categorized as well-capitalized, we must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as disclosed in the table below. Our management believes that we are well-capitalized under the prompt corrective action provisions as of March 31, 2014.

The following table sets forth (i) the capital ratios required by the FDIC and the Alabama Banking Department’s leverage ratio requirement and (ii) our actual ratios of capital to total regulatory or risk-weighted assets, as of March 31, 2014, December 31, 2013 and March 31, 2013:

											To Be Well Capitalized
						For Capital Adequacy					Under Prompt Corrective
	Actual					Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of March 31, 2014:
Total Capital to Risk-Weighted Assets:
Consolidated	$	359,651		11.94	%	$	240,885		8.00	%	$	N/A		N/A	%
ServisFirst Bank		356,178		11.83	%		240,831		8.00	%		301,038		10.00	%
Tier 1 Capital to Risk-Weighted Assets:
Consolidated		307,722		10.22	%		120,443		4.00	%		N/A		N/A	%
ServisFirst Bank		324,450		10.78	%		120,415		4.00	%		180,623		6.00	%
Tier 1 Capital to Average Assets:
Consolidated		307,722		8.81	%		139,725		4.00	%		N/A		N/A	%
ServisFirst Bank		324,450		9.28	%		139,778		4.00	%		174,722		5.00	%
As of December 31, 2013:
Total Capital to Risk-Weighted Assets:
Consolidated	$	343,904		11.73	%	$	234,617		8.00	%	$	N/A		N/A	%
ServisFirst Bank		341,256		11.64	%		234,601		8.00	%		293,252		10.00	%
Tier 1 Capital to Risk-Weighted Assets:
Consolidated		293,301		10.00	%		117,308		4.00	%		N/A		N/A	%
ServisFirst Bank		310,593		10.59	%		117,301		4.00	%		175,951		6.00	%
Tier 1 Capital to Average Assets:
Consolidated		293,301		8.48	%		138,373		4.00	%		N/A		N/A	%
ServisFirst Bank		310,593		8.98	%		138,331		4.00	%		172,913		5.00	%
As of March 31, 2013:
Total Capital to Risk-Weighted Assets:
Consolidated	$	298,297		11.82	%	$	201,860		8.00	%	$	N/A		N/A	%
ServisFirst Bank		295,545		11.71	%		201,857		8.00	%		252,321		10.00	%
Tier 1 Capital to Risk-Weighted Assets:
Consolidated		250,618		9.93	%		100,930		4.00	%		N/A		N/A	%
ServisFirst Bank		267,866		10.62	%		100,928		4.00	%		151,393		6.00	%
Tier 1 Capital to Average Assets:
Consolidated		250,618		8.80	%		113,901		4.00	%		N/A		N/A	%
ServisFirst Bank		267,866		9.42	%		113,797		4.00	%		142,246		5.00	%

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Off-Balance Sheet Arrangements

In the normal course of business, we are a party to financial instruments with off-balance sheet risk to meet the financing needs of our customers. These financial instruments include commitments to extend credit beyond current fundings, credit card arrangements, standby letters of credit, and financial guarantees. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in our balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement we have in those particular financial instruments.

Our exposure to credit loss in the event of non-performance by the other party to such financial instruments is represented by the contractual or notional amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments.

As part of our mortgage operations, we originate and sell certain loans to investors in the secondary market. We continue to experience a manageable level of investor repurchase demands. For loans sold, we have an obligation to either repurchase the outstanding principal balance of a loan or make the purchaser whole for the economic benefits of a loan if it is determined that the loans sold were in violation of representations and warranties made by the Bank at the time of the sale. Representations and warranties typically include those made regarding loans that had missing or insufficient file documentation or loans obtained through fraud by borrowers or other third parties such as appraisers. We had a reserve of $278,000 as of March 31, 2014 and $264,000 as of December 31, 2013 for the settlement of any repurchase demands by investors. We did not have any requests by investors to repurchase loans during the first quarter of 2014.

Financial instruments whose contract amounts represent credit risk at March 31, 2014 are as follows:

	March 31, 2014
	(In Thousands)
Commitments to extend credit	$	1,107,982
Credit card arrangements		34,413
Standby letters of credit		40,272
	$	1,182,667

Commitments to extend credit beyond current funded amounts are agreements to lend to a customer as long as there is no violation of any condition established in the applicable loan agreement. Such commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by us upon extension of credit is based on our management’s credit evaluation. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. All letters of credit are due within one year or less of the original commitment date. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Federal funds lines of credit are uncommitted lines issued to downstream correspondent banks for the purpose of providing liquidity to them. The lines are unsecured, and we have no obligation to sell federal funds to the correspondent, nor does the correspondent have any obligation to request or accept purchases of federal funds from us.

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Results of Operations

Summary of Net Income

Net income for the three months ended March 31, 2014 was $11.8 million and net income available to common stockholders was $11.7 million compared to net income of $9.3 million and net income available to common stockholders of $9.2 million for the three months ended March 31, 2013. The increase in net income was primarily attributable to a $4.9 million increase in net interest income as a result of growth in average earning assets and a decrease in provision for loan losses of $2.0 million resulting from lower charge-offs and decreases in nonperforming loans. Noninterest income decreased $0.6 million and noninterest expense increased $2.9 million, both of which are more fully explained below.

Basic and diluted net income per common share were $1.58 and $1.52, respectively, for the three months ended March 31, 2014, compared to $1.44 and $1.31, respectively, for the corresponding period in 2013. Return on average assets for the three months ended March 31, 2014 was 1.36% compared to 1.31% for the corresponding period in 2013, and return on average stockholders’ equity for the three months ended March 31, 2014 was 15.63%, compared to 15.20% for the corresponding period in 2013.

Net Interest Income

Net interest income is the difference between the income earned on interest-earning assets and interest paid on interest-bearing liabilities used to support such assets. The major factors which affect net interest income are changes in volumes, the yield on interest-earning assets and the cost of interest-bearing liabilities. Our management’s ability to respond to changes in interest rates by effective asset-liability management techniques is critical to maintaining the stability of the net interest margin and the momentum of our primary source of earnings.

Taxable-equivalent net interest income increased $5.0 million, or 19.0%, to $31.4 million for the three months ended March 31, 2014 compared to $26.3 million for the corresponding period in 2013. This increase was primarily attributable to a $627.3 million increase in average earning assets, or 23.0%, year over year.The taxable-equivalent yield on interest-earning assets decreased 20 basis points to 4.21% for the three months ended March 31, 2014 from 4.41% for the corresponding period in 2013. The yield on loans for the three months ended March 31, 2014 was 4.52% compared to 4.64% for the corresponding period in 2013. Loan fees included in the yield calculation increased to $240,000 for the three months ended March 31, 2014 from $6,000 for the corresponding period in 2013 as a result of the collection of late charges on a few large loans during the first quarter of 2014. The cost of total interest-bearing liabilities decreased to 0.55% for the three months ended March 31, 2014 from 0.64% for the corresponding period in 2013. Net interest margin for the three months ended March 31, 2014 decreased to 3.80% from 3.92% for the corresponding period in 2013.

The following table shows, for the three months ended March 31, 2014 and March 31, 2013, the average balances of each principal category of our assets, liabilities and stockholders’ equity, and an analysis of net interest revenue. The accompanying tables reflect changes in our net interest margin as a result of changes in the volume and rate of our interest-earning assets and interest-bearing liabilities for the same periods. Changes as a result of mix or the number of days in the periods have been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each. The tables are presented on a taxable-equivalent basis where applicable:

29

Average Consolidated Balance Sheets and Net Interest Analysis

On a Fully Taxable-Equivalent Basis

For the Three Months Ended March 31,

(Dollar Amounts In Thousands)

	2014							2013
			Interest		Average					Interest		Average
	Average		Earned /		Yield /			Average		Earned /		Yield /
	Balance		Paid		Rate			Balance		Paid		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)
Taxable	$	2,892,433	$	32,257		4.52	%	$	2,384,670	$	27,255		4.64	%
Tax-exempt (2)		14,550		120		3.34			2,464		35		5.76	%
Mortgage loans held for sale		4,496		31		2.80			19,322		93		1.95
Investment securities:
Taxable		174,842		1,096		2.54			144,407		948		2.66
Tax-exempt (2)		122,686		1,248		4.13			109,587		1,197		4.43
Total investment securities (3)		297,528		2,344		3.20			253,994		2,145		3.42
Federal funds sold		54,895		42		0.31			23,522		16		0.28
Restricted equity securities		3,738		-		-			3,954		23		2.36
Interest-bearing balances with banks		82,279		19		0.09			34,704		28		0.33
Total interest-earning assets	$	3,349,919	$	34,813		4.21	%	$	2,722,630	$	29,595		4.41	%
Non-interest-earning assets:
Cash and due from banks		56,082							41,437
Net premises and equipment		8,724							9,241
Allowance for loan losses, accrued interest and other assets		85,532							74,223
Total assets	$	3,500,257						$	2,847,531
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	478,678	$	318		0.27	%	$	413,935	$	281		0.28	%
Savings deposits		25,081		17		0.27			22,089		15		0.28
Money market accounts		1,416,645		1,557		0.45			1,074,226		1,225		0.46
Time deposits		412,622		1,122		1.10			395,902		1,192		1.22
Federal funds purchased		195,967		135		0.28			137,183		85		0.25
Other borrowings		19,945		283		5.75			27,441		466		6.89
Total interest-bearing liabilities	$	2,548,938	$	3,432		0.55		$	2,070,776	$	3,264		0.64
Non-interest-bearing liabilities:
Non-interest-bearing demand deposits		641,450							523,669
Other liabilities		4,724							7,708
Stockholders' equity		300,512							238,290
Unrealized gains on securities and derivatives		4,634							7,088
Total liabilities and stockholders' equity	$	3,500,257						$	2,847,531
Net interest spread						3.67	%						3.77	%
Net interest margin						3.80	%						3.92	%

(1) Non-accrual loans are included in average loan balances in all periods. Loan fees of $240,000 and $6,000 are included in interest income in 2014 and 2013, respectively.

(2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 35%.

(3) Unrealized gains of $7,137,000 and $10,905,000 are excluded from the yield calculation in 2014 and 2013, respectively.

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	For the Three Months Ended March 31,
	2014 Compared to 2013 Increase (Decrease) in Interest Income and Expense Due to Changes in:
	Volume			Rate			Total
	(In Thousands)
Interest-earning assets:
Loans, net of unearned income
Taxable	$	5,678		$	(676	)	$	5,002
Tax-exempt		106			(21	)		85
Mortgages held for sale		(91	)		29			(62	)
Debt securities:
Taxable		193			(45	)		148
Tax-exempt		137			(86	)		51
Federal funds sold		24			2			26
Restricted equity securities		(1	)		(22	)		(23	)
Interest-bearing balances with banks		20			(29	)		(9	)
Total interest-earning assets		6,066			(848	)		5,218
Interest-bearing liabilities:
Interest-bearing demand deposits		43			(6	)		37
Savings		2			-			2
Money market accounts		377			(45	)		332
Time deposits		48			(118	)		(70	)
Federal funds purchased		39			11			50
Other borrowed funds		(114	)		(69	)		(183	)
Total interest-bearing liabilities		395			(227	)		168
Increase in net interest income	$	5,671		$	(621	)	$	5,050

Provision for Loan Losses

The provision for loan losses represents the amount determined by management to be necessary to maintain the allowance for loan losses at a level capable of absorbing inherent losses in the loan portfolio. Our management reviews the adequacy of the allowance for loan losses on a quarterly basis. The allowance for loan losses calculation is segregated into various segments that include classified loans, loans with specific allocations and pass rated loans. A pass rated loan is generally characterized by a very low to average risk of default and in which management perceives there is a minimal risk of loss. Loans are rated using a nine-point risk grade scale with loan officers having the primary responsibility for assigning risk grades and for the timely reporting of changes in the risk grades. Based on these processes, and the assigned risk grades, the criticized and classified loans in the portfolio are segregated into the following regulatory classifications: Special Mention, Substandard, Doubtful or Loss, with some general allocation of reserve based on various internal and external factors. At March 31, 2014, total loans rated Special Mention, Substandard, and Doubtful were $102.9 million, or 3.5% of total loans, compared to $93.2 million, or 4.8% of total loans, at December 31, 2013. Impaired loans are reviewed specifically and separately under FASB ASC 310-30-35, Subsequent Measurement of Impaired Loans, to determine the appropriate reserve allocation. Our management compares the investment in an impaired loan with the present value of expected future cash flow discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral, if the loan is collateral-dependent, to determine the specific reserve allowance. Reserve percentages assigned to non-impaired loans are based on historical charge-off experience adjusted for other risk factors. To evaluate the overall adequacy of the allowance to absorb losses inherent in our loan portfolio, our management considers historical loss experience based on volume and types of loans, trends in classifications, volume and trends in delinquencies and nonaccruals, economic conditions and other pertinent information. Based on future evaluations, additional provisions for loan losses may be necessary to maintain the allowance for loan losses at an appropriate level.

The provision for loan losses was $2.3 million for the three months ended March 31, 2014, a decrease of $2.0 million from $4.3 million for the three months ended March 31, 2013. The decrease in provision for loan losses for the three months ended March 31, 2014 compared to the same period in 2013 is primarily attributable to improving credit quality resulting from fewer loan charge-offs. Loan charge-offs during the first quarter of 2014 totaled $1.3 million, of which $1.2 million were impaired at December 31, 2013, compared to $2.9 million during the first quarter of 2013, with none of the loans being impaired at December 31, 2012. Nonperforming loans decreased to $9.2 million, or 0.31% of total loans, at March 31, 2014 from $9.7 million, or 0.34% of total loans, at December 31, 2013, and were also lower than $24.3 million, or 0.99% of total loans, at March 31, 2013. Impaired loans increased to $34.2 million, or 1.2% of total loans, at March 31, 2014, compared to $32.0 million, or 1.1% of total loans, at December 31, 2013. The allowance for loan losses totaled $31.7 million, or 1.08% of total loans, net of unearned income, at March 31, 2014, compared to $30.7 million, or 1.07% of loans, net of unearned income, at December 31, 2013.

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Noninterest Income

Noninterest income totaled $2.2 million for the three months ended March 31, 2014, a decrease of $0.6 million, or 21.4%, compared to the corresponding period in 2013. The decrease was primarily attributable to a $0.7 decrease in mortgage banking revenue. Deposit service charges increased by $0.1 million, or 12.5%, resulting from higher balances and an increase in the number of accounts and transactions. Increases in cash surrender value of life insurance contracts resulted from added investments in contracts during the third quarter of 2013. We had no securities sales in the first quarter of 2014 compared to $0.1 million in gains on sales during the first quarter of 2013.

Noninterest Expense

Noninterest expense totaled $13.7 million for the three months ended March 31, 2014, an increase of $2.9 million, or 26.9%, compared to $10.8 million for the corresponding period in 2013. Increases in expenses primarily relate to our continued expansion, both within existing markets and into our newer markets of Mobile, Alabama and Nashville, Tennessee.

Further details of expenses are as follows:

· Salary and benefit expense increased $2.0 million, or 35.1%, to $7.7 million for the three months ended March 31, 2014 from $5.7 million for the corresponding period in 2013. This increase consists primarily of a $1.3 million, or 22.8%, increase in salaries and benefits related to new hires to fill positions in our newer markets of Mobile, Alabama and Nashville, Tennessee and a non-routine expense of $703,000 resulting from an immaterial correction of our accounting for vested stock options previously granted to members of our advisory boards in our Dothan, Huntsville and Montgomery, Alabama markets. We historically accounted for these options under the provisions of FASB ASC 718-10, Compensation – Stock Compensation, and now have determined to recognize as an expense during each reporting period changes in the fair value of the unvested portion of such options in accordance with the provisions of FASB ASC Topic 505-50, Equity-Based Payments to Non-Employees. We had 268 full-time equivalent employees at March 31, 2014 compared to 241 at March 31, 2013, an 11.2% increase. Most of this increase in number of employees was due to our continued expansion into the Mobile, Alabama and Nashville, Tennessee markets.

· Occupancy expense increased $0.3 million, or 27.3%, to $1.4 million for the three months ended March 31, 2014 from $1.1 million for the corresponding period in 2013. This increase is primarily the result of our expansion into new markets.

· Other operating expenses increased $0.4 million, primarily a result of increases of $0.2 million in other loan expenses and $0.2 million in data processing expenses. Other loan expenses are largely comprised of recording fees and other non-origination loan expenses. Higher data processing expenses primarily relate to increases in transaction volumes and added record retention needs.

Income Tax Expense

Income tax expense was $5.2 million for the three months ended March 31, 2014 versus $4.4 million for the same period in 2013. Our effective tax rate for the three months ended March 31, 2014 was 30.59%, compared to 32.29% for the corresponding period in 2013. Our primary permanent differences are related to tax exempt income on securities, state income tax benefit on real estate investment trust dividends, change in cash surrender value of bank-owned life insurance and incentive stock option expenses.

We own real estate investment trusts for the purpose of holding and managing participations in residential mortgages and commercial real estate loans originated by the Bank. The trusts are wholly-owned subsidiaries of a trust holding company, which in turn is a wholly-owned subsidiary of the Bank. The trusts earn interest income on the loans they hold and incur operating expenses related to their activities. They pay their net earnings, in the form of dividends, to the Bank, which receives a deduction for state income taxes.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Like all financial institutions, we are subject to market risk from changes in interest rates. Interest rate risk is inherent in the balance sheet due to the mismatch between the maturities of rate-sensitive assets and rate-sensitive liabilities. If rates are rising, and the level of rate-sensitive liabilities exceeds the level of rate-sensitive assets, the net interest margin will be negatively impacted. Conversely, if rates are falling, and the level of rate-sensitive liabilities is greater than the level of rate-sensitive assets, the impact on the net interest margin will be favorable. Managing interest rate risk is further complicated by the fact that all rates do not change at the same pace; in other words, short-term rates may be rising while longer-term rates remain stable. In addition, different types of rate-sensitive assets and rate-sensitive liabilities react differently to changes in rates.

32

To manage interest rate risk, we must take a position on the expected future trend of interest rates. Rates may rise, fall or remain the same. Our asset-liability committee develops its view of future rate trends and strives to manage rate risk within a targeted range by monitoring economic indicators, examining the views of economists and other experts, and understanding the current status of our balance sheet. Our annual budget reflects the anticipated rate environment for the next 12 months. The asset-liability committee conducts a quarterly analysis of the rate sensitivity position and reports its results to our board of directors.

The asset-liability committee thoroughly analyzes the maturities of rate-sensitive assets and liabilities. This analysis measures the “gap”, which is defined as the difference between the dollar amount of rate-sensitive assets repricing during a period and the volume of rate-sensitive liabilities repricing during the same period. The gap is also expressed as the ratio of rate-sensitive assets divided by rate-sensitive liabilities. If the ratio is greater than one, the dollar value of assets exceeds the dollar value of liabilities; the balance sheet is “asset-sensitive.” Conversely, if the value of liabilities exceeds the value of assets, the ratio is less than one and the balance sheet is “liability-sensitive.” Our internal policy requires management to maintain the gap such that net interest margins will not change more than 10% if interest rates change 100 basis points or more than 15% if interest rates change 200 basis points. There have been no changes to our policies or procedures for analyzing our interest rate risk since December 31, 2013, and there are no significant changes to our sensitivity to changes in interest rates since December 31, 2013 as disclosed in our Form 10-K/A.

ITEM 4. CONTROLS AND PROCEDURES

CEO and CFO Certification.

Appearing as exhibits to this report are Certifications of our Chief Executive Officer (“CEO”) and our Chief Financial Officer (“CFO”). The Certifications are required to be made by Rule 13a-14 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This item contains the information about the evaluation that is referred to in the Certifications, and the information set forth below in this Item 4 should be read in conjunction with the Certifications for a more complete understanding of the Certifications.

Evaluation of Disclosure Controls and Procedures.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

We conducted an evaluation (the “Evaluation”) of the effectiveness of the design and operation of our disclosure controls and procedures under the supervision and with the participation of our management, including our CEO and CFO, as of March 31, 2014. Based upon the Evaluation, our CEO and CFO have concluded that, as of March 31, 2014, our disclosure controls and procedures are effective to ensure that material information relating to ServisFirst Bancshares, Inc. and its subsidiaries is made known to management, including the CEO and CFO, particularly during the period when our periodic reports are being prepared.

There have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time we may be a party to various legal proceedings arising in the ordinary course of business. We are not currently a party to any material legal proceedings except as disclosed in Item 3, “Legal Proceedings”, in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2013, and there has been no material change in any matter described therein.

33

ITEM 1A. RISK FACTORS

Our business is influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond our control. We have identified a number of these risk factors in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2013, which should be taken into consideration when reviewing the information contained in this report. There have been no material changes with regard to the risk factors previously disclosed in the Form 10-K/A. For other factors that may cause actual results to differ materially from those indicated in any forward-looking statement or projection contained in this report, see “Forward-Looking Statements” under Part 1, Item 2 above.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

(a) Exhibit:

31.01 Certification of principal executive officer pursuant to Rule 13a-14(a).

31.02 Certification of principal financial officer pursuant to Rule 13a-14(a).

32.01 Certification of principal executive officer pursuant to 18 U.S.C. Section 1350.

32.02 Certification of principal financial officer pursuant to 18 U.S.C. Section 1350.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		SERVISFIRST BANCSHARES, INC.
Date: April 25, 2014	By	/s/ Thomas A. Broughton III
		Thomas A. Broughton III
		President and Chief Executive Officer
Date: April 25, 2014	By	/s/ William M. Foshee
		William M. Foshee
		Chief Financial Officer

34

EX-31.01

Exhibit 31.01

Section 302 Certification of the CEO

I, Thomas A. Broughton III, certify that:

1.           I have reviewed this Quarterly Report on Form 10-Q of ServisFirst Bancshares, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or person’s performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 25, 2014

/s/ Thomas A. Broughton III

Thomas A. Broughton III

President and Chief Executive Officer

A signed original of this written statement has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

EX-31.02

Exhibit 31.02

Section 302 Certification of the CFO

I, William M. Foshee, certify that:

1.           I have reviewed this Quarterly Report on Form 10-Q of ServisFirst Bancshares, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 25, 2014

/s/ William M. Foshee

William M. Foshee

Chief Financial Officer

A signed original of this written statement has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request

EX-32.01

Exhibit 32.01

Section 906 Certification of the CEO

CERTIFICATION OF PERIODIC FINANCIAL REPORT

PURSUANT TO 18 U.S.C. SECTION 1350

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of ServisFirst Bancshares, Inc. (the “Company”) certifies that, to his knowledge, the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: April 25, 2014	/s/ Thomas A. Broughton III
	Thomas A. Broughton III
	President and Chief Executive Officer

A signed original of this written statement has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.02

Exhibit 32.02

Section 906 Certification of the CFO

CERTIFICATION OF PERIODIC FINANCIAL REPORT

PURSUANT TO 18 U.S.C. SECTION 1350

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of ServisFirst Bancshares, Inc. (the “Company”) certifies that, to his knowledge, the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: April 25, 2014	/s/ William M. Foshee
	William M. Foshee
	Chief Financial Officer

A signed original of this written statement has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

XML

EMPLOYEE AND DIRECTOR BENEFITS (Summary Of Stock Option Activity) (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at beginning of year	776,300	816,500
Shares, Granted	38,000	25,000
Shares, Exercised	(174,800)	(9,000)
Shares, Forfeited	0	0
Shares, Outstanding at end of year	639,500	832,500
Shares, Exercisable	243,744	458,995
Weighted Average Exercise Price, Outstanding at beginning of year	$ 23.08	$ 20.87
Weighted Average Exercise Price, Granted	$ 41.50	$ 33.00
Weighted Average Exercise Price, Exercised	$ 15.62	$ 10.00
Weighted Average Exercise Price, Forfeited	$ 0	$ 0
Weighted Average Exercise Price, Outstanding at end of year	$ 26.21	$ 21.35
Weighted Average Exercise Price, Exercisable	$ 15.99	$ 14.37
Weighted Average Remaining Contractual Term (years), Outstanding at beginning of year	5 years 6 months	5 years 9 months 18 days
Weighted Average Remaining Contractual Term (years), Granted	9 years 10 months 24 days	10 years
Weighted Average Remaining Contractual Term (years), Exercised	2 years 9 months 18 days	2 years 2 months 12 days
Weighted Average Remaining Contractual Term (years), Forfeited	0 years	0 years
Weighted Average Remaining Contractual Term (years), Outstanding at end of year	6 years 1 month 6 days	5 years 8 months 12 days
Weighted Average Remaining Contractual Term (years), Exercisable	3 years 4 months 24 days	3 years 6 months
Aggregate Intrinsic Value, Outstanding at beginning of year	$ 14,300	$ 9,905
Aggregate Intrinsic Value, Granted	0	0
Aggregate Intrinsic Value, Exercised	4,523	207
Aggregate Intrinsic Value, Forfeited	0	0
Aggregate Intrinsic Value, Outstanding at end of year	9,777	9,698
Aggregate Intrinsic Value, Exercisable	$ 6,217	$ 8,550

XML

LOANS (Loans By Past Due Status) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due Status (Accruing Loans) 30-59 Days	$ 3,689	$ 339
Past Due Status (Accruing Loans) 60-89 Days	320	97
Past Due Status (Accruing Loans) 90+ Days	110	115
Past Due Status (Accruing Loans) Total Past Due	4,119	551
Non-Accrual	9,084	9,621
Current	2,924,594	2,848,696
Total Loans	2,937,797	2,858,868
Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due Status (Accruing Loans) 30-59 Days	1,127	73
Past Due Status (Accruing Loans) 60-89 Days	98	0
Past Due Status (Accruing Loans) 90+ Days	0	0
Past Due Status (Accruing Loans) Total Past Due	1,225	73
Non-Accrual	448	1,714
Current	1,304,385	1,276,862
Total Loans	1,306,058	1,278,649
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due Status (Accruing Loans) 30-59 Days	1,755	0
Past Due Status (Accruing Loans) 60-89 Days	0	0
Past Due Status (Accruing Loans) 90+ Days	15	0
Past Due Status (Accruing Loans) Total Past Due	1,770	0
Non-Accrual	4,264	3,750
Current	151,093	148,118
Total Loans	157,127	151,868
Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due Status (Accruing Loans) 30-59 Days	224	0
Past Due Status (Accruing Loans) 60-89 Days	0	0
Past Due Status (Accruing Loans) 90+ Days	0	0
Past Due Status (Accruing Loans) Total Past Due	224	0
Non-Accrual	1,397	1,435
Current	709,446	708,937
Total Loans	711,067	710,372
One To Four Family Mortgage Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due Status (Accruing Loans) 30-59 Days	45	177
Past Due Status (Accruing Loans) 60-89 Days	169	0
Past Due Status (Accruing Loans) 90+ Days	0	19
Past Due Status (Accruing Loans) Total Past Due	214	196
Non-Accrual	2,025	1,877
Current	283,129	276,548
Total Loans	285,368	278,621
Other Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due Status (Accruing Loans) 30-59 Days	522	0
Past Due Status (Accruing Loans) 60-89 Days	0	0
Past Due Status (Accruing Loans) 90+ Days	0	0
Past Due Status (Accruing Loans) Total Past Due	522	0
Non-Accrual	243	243
Current	427,626	391,153
Total Loans	428,391	391,396
Residential Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due Status (Accruing Loans) 30-59 Days	791	177
Past Due Status (Accruing Loans) 60-89 Days	169	0
Past Due Status (Accruing Loans) 90+ Days	0	19
Past Due Status (Accruing Loans) Total Past Due	960	196
Non-Accrual	3,665	3,555
Current	1,420,201	1,376,638
Total Loans	1,424,826	1,380,389
Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due Status (Accruing Loans) 30-59 Days	16	89
Past Due Status (Accruing Loans) 60-89 Days	53	97
Past Due Status (Accruing Loans) 90+ Days	95	96
Past Due Status (Accruing Loans) Total Past Due	164	282
Non-Accrual	707	602
Current	48,915	47,078
Total Loans	$ 49,786	$ 47,962

XML

EARNINGS PER COMMON SHARE (Summary of Earning Per Common Share) (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Earnings Per Share, Basic [Abstract]
Weighted average common shares outstanding	7,399,992	6,341,605
Net income available to common stockholders	$ 11,656	$ 9,151
Basic earnings per common share	$ 1.58	$ 1.44
Weighted average common shares outstanding	7,399,992	6,341,605
Dilutive effects of assumed conversions and exercise of stock options and warrants	261,898	734,900
Weighted average common and dilutive potential common shares outstanding	7,661,890	7,076,505
Net income, available to common stockholders	11,656	9,151
Effect of interest expense on convertible debt, net of tax and discretionary expenditures related to conversion	0	132
Net income available to common stockholders, adjusted for effect of debt conversion	$ 11,656	$ 9,283
Diluted earnings per common share	$ 1.52	$ 1.31

XML

FAIR VALUE MEASUREMENT (Carrying Amount And Estimated Fair Value Of Financial Instruments) (Detail) (Fair Value Measurements Nonrecurring [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Impaired loans	$ 27,096	$ 25,696
Other real estate owned and repossessed assets	9,752	12,861
Total assets at fair value	36,848	38,557
Fair Value, Inputs, Level 1 [Member]
Impaired loans	0	0
Other real estate owned and repossessed assets	0	0
Total assets at fair value	0	0
Fair Value Inputs Level 2 [Member]
Impaired loans	0	0
Other real estate owned and repossessed assets	0	0
Total assets at fair value	0	0
Fair Value Inputs Level 3 [Member]
Impaired loans	27,096	25,696
Other real estate owned and repossessed assets	9,752	12,861
Total assets at fair value	$ 36,848	$ 38,557

XML

LOANS (Additional Information) (Detail) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Troubled Debt Restructuring Debtor Current Period [Line Items]
Troubled Debt Restructurings	$ 13,478,000	$ 12,251,000	$ 14,200,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	2,100,000	1,400,000	2,400,000
Payments of Debt Restructuring Costs	$ 4,100,000

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
OPERATING ACTIVITIES
Net income	$ 11,756	$ 9,251
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred tax benefit	(1,142)	(801)
Provision for loan losses	2,314	4,284
Depreciation and amortization	497	314
Net amortization of investments	546	258
(Increase) decrease in accrued interest and dividends receivable	(108)	4
Stock-based compensation expense	1,020	259
Increase in accrued interest payable	1,352	212
Proceeds from sale of mortgage loans held for sale	23,794	55,848
Originations of mortgage loans held for sale	(22,080)	(44,846)
Gain on sale of mortgage oans held for sale	(284)	(980)
Gain on sale of securities available for sale	0	(123)
Net loss on sale of other real estate owned and repossessed assets	175	21
Write down of other real estate owned	158	286
Decrease in special prepaid FDIC insurance assessments	0	390
Increase in cash surrender value of life insurance contracts	(536)	(470)
Excess tax benefits from the exercise of warrants	(143)	(5)
Net change in other assets, liabilities, and other operating activities	1,539	(2,723)
Net cash provided by operating activities	18,858	21,179
INVESTMENT ACTIVITIES
Purchase of debt securities available for sale	(18,160)	(5,793)
Proceeds from maturities, calls and paydowns of debt securities available for sale	7,353	8,373
Proceeds from sale of debt securities available for sale	0	1,164
Purchase of debt securities held to maturity	0	(7,357)
Proceeds from maturities, calls and paydowns of debt securities held to maturity	300	655
Increase in loans	(80,178)	(102,006)
Purchase of premises and equipment	(161)	(312)
Investment in tax credit partnerships	(1,530)	0
Proceeds from sale of restricted equity securities	0	203
Proceeds from sale of other real estate owned and repossessed assets	2,776	1,473
Net cash used in investing activities	(89,600)	(103,600)
FINANCING ACTIVITIES
Increase (decrease) in noninterest-bearing deposits	12,378	(37,527)
Decrease in interest-bearing deposits	(979)	(50,511)
Increase in federal funds purchased	21,382	36,865
Proceeds from sale of preferred shares	250	0
Proceeds from exercise of stock options and warrants	2,874	259
Excess tax benefits from exercise of stock options and warrants	143	5
Dividends on common stock	(1,129)	(12)
Dividends on preferred stock	(100)	(100)
Net cash provided by (used in) financing activities	34,819	(51,021)
Net decrease in cash and cash equivalents	(35,923)	(133,442)
Cash and cash equivalents at beginning of period	258,415	180,745
Cash and cash equivalents at end of period	222,492	47,303
Cash paid for:
Interest	2,080	3,052
Income taxes	6,830	4,340
NONCASH TRANSACTIONS
Conversion of mandatorily convertible subordinated debentures	0	15,000
Other real estate acquired in settlement of loans	$ 0	$ 171

XML

FAIR VALUE MEASUREMENT (Financial Assets And Liabilities Carried At Fair Value On Recurring Basis Or Nonrecurring Basis) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Financial Assets:
Available for sale debt securities	$ 277,501	$ 266,220
Held to maturity debt securities	31,974	32,274
Restricted equity securities	3,738	3,738
Federal Funds Sold	10,535	8,634
Mortgage loans held for sale	6,704	8,134
Bank owned life insurance contracts	69,544	69,008
Loans, net	2,906,069	2,828,205
Financial Liabilities:
Federal funds purchased	195,762	174,380
Carrying Reported Amount Fair Value Disclosure [Member] | Fair Value Inputs Level 2 [Member]
Financial Assets:
Available for sale debt securities	277,501	266,220
Held to maturity debt securities	31,974	32,274
Restricted equity securities	3,738	3,738
Federal Funds Sold	10,535	8,634
Mortgage loans held for sale	6,704	8,134
Bank owned life insurance contracts	69,544	69,008
Financial Liabilities:
Deposits	3,031,041	3,019,642
Federal funds purchased	195,765	174,380
Other borrowings	19,949	19,940
Carrying Reported Amount Fair Value Disclosure [Member] | Fair Value Inputs Level 3 [Member]
Financial Assets:
Loans, net	2,906,069	2,828,205
Portion At Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 2 [Member]
Financial Assets:
Available for sale debt securities	277,501	266,220
Held to maturity debt securities	31,559	31,315
Restricted equity securities	3,738	3,738
Federal Funds Sold	10,535	8,634
Mortgage loans held for sale	6,704	8,134
Bank owned life insurance contracts	69,544	69,008
Financial Liabilities:
Deposits	3,033,281	3,021,847
Federal funds purchased	195,765	174,380
Other borrowings	19,949	19,940
Portion At Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 3 [Member]
Financial Assets:
Loans, net	$ 2,909,139	$ 2,825,924

XML

SECURITIES (Additional Information) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013
Proceeds from Sale of Available-for-sale Securities, Debt	$ 1,200,000
Available-for-sale Debt Securities Gross Unrealized Gain	$ 123,000

XML

SECURITIES (Investment Securities Continuous Unrealized Loss Position) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Gross Unrealized Losses	$ (1,693)	$ (2,269)
Fair Value	71,676	73,977
U.S. Treasury and Government Sponsored Agencies [Member]
Gross Unrealized Losses	(51)	(41)
Fair Value	12,589	5,854
Mortgage-Backed Securities [Member]
Gross Unrealized Losses	(1,145)	(1,520)
Fair Value	26,673	28,056
State and Municipal Securities [Member]
Gross Unrealized Losses	(488)	(682)
Fair Value	29,423	34,109
Corporate Debt [Member]
Gross Unrealized Losses	(9)	(26)
Fair Value	2,991	5,958
Less Than Twelve Months [Member]
Gross Unrealized Losses	(1,100)	(1,526)
Fair Value	60,979	63,843
Less Than Twelve Months [Member] | U.S. Treasury and Government Sponsored Agencies [Member]
Gross Unrealized Losses	(51)	(41)
Fair Value	12,589	5,854
Less Than Twelve Months [Member] | Mortgage-Backed Securities [Member]
Gross Unrealized Losses	(621)	(852)
Fair Value	20,014	21,365
Less Than Twelve Months [Member] | State and Municipal Securities [Member]
Gross Unrealized Losses	(419)	(607)
Fair Value	25,385	30,666
Less Than Twelve Months [Member] | Corporate Debt [Member]
Gross Unrealized Losses	(9)	(26)
Fair Value	2,991	5,958
Twelve Months Or More [Member]
Gross Unrealized Losses	(593)	(743)
Fair Value	10,697	10,134
Twelve Months Or More [Member] | U.S. Treasury and Government Sponsored Agencies [Member]
Gross Unrealized Losses	0	0
Fair Value	0	0
Twelve Months Or More [Member] | Mortgage-Backed Securities [Member]
Gross Unrealized Losses	(524)	(668)
Fair Value	6,659	6,691
Twelve Months Or More [Member] | State and Municipal Securities [Member]
Gross Unrealized Losses	(69)	(75)
Fair Value	4,038	3,443
Twelve Months Or More [Member] | Corporate Debt [Member]
Gross Unrealized Losses	0	0
Fair Value	$ 0	$ 0

XML

FAIR VALUE MEASUREMENT (Additional Information) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Asset Impairment Charges	$ 2,235,000	$ 3,925,000
Real Estate Owned, Amount of Loss at Acquisition	$ 306,000	$ 308,000

XML

LOANS (Details Of Loans) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Accounts Notes and Loans Receivable [Line Items]
Total Loans	$ 2,937,797	$ 2,858,868
Less allowance for loan losses	(31,728)	(30,663)	(27,679)	(26,258)
Net Loans	2,906,069	2,828,205
Total Loans	100.00%	100.00%
Commercial Financial and Agricultural Financing Receivable [Member]
Accounts Notes and Loans Receivable [Line Items]
Total Loans	1,306,058	1,278,649
Less allowance for loan losses	(10,980)	(11,170)	(8,951)	(8,233)
Total Loans	44.46%	44.73%
Commercial Real Estate Construction Financing Receivable [Member]
Accounts Notes and Loans Receivable [Line Items]
Total Loans	157,127	151,868
Less allowance for loan losses	(6,058)	(5,809)	(6,642)	(6,511)
Total Loans	5.35%	5.31%
Commercial Mortgage Loans Owner Occupied [Member]
Accounts Notes and Loans Receivable [Line Items]
Total Loans	711,067	710,372
Total Loans	24.20%	24.85%
One To Four Family Mortgage Loans [Member]
Accounts Notes and Loans Receivable [Line Items]
Total Loans	285,368	278,621
Total Loans	9.71%	9.74%
Other Real Estate Mortgage Loans [Member]
Accounts Notes and Loans Receivable [Line Items]
Total Loans	428,391	391,396
Total Loans	14.58%	13.69%
Residential Real Estate Mortgage Loans [Member]
Accounts Notes and Loans Receivable [Line Items]
Total Loans	1,424,826	1,380,389
Less allowance for loan losses	(8,137)	(7,495)	(5,737)	(4,912)
Total Loans	48.49%	48.28%
Consumer Portfolio Segment [Member]
Accounts Notes and Loans Receivable [Line Items]
Total Loans	49,786	47,962
Less allowance for loan losses	$ (951)	$ (855)	$ (164)	$ (199)
Total Loans	1.70%	1.68%

XML

LOANS (Loans By Credit Quality Indicator) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable Recorded Investment [Line Items]
Loans	$ 2,937,797	$ 2,858,868
Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,306,058	1,278,649
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	157,127	151,868
Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	711,067	710,372
One To Four Family Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	285,368	278,621
Other Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	428,391	391,396
Residential Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,424,826	1,380,389
Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	49,786	47,962
Pass [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	2,834,888	2,765,716
Pass [Member] | Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,264,111	1,238,109
Pass [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	142,287	139,239
Pass [Member] | Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	693,100	696,687
Pass [Member] | One To Four Family Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	271,603	265,019
Pass [Member] | Other Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	414,818	379,419
Pass [Member] | Residential Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,379,521	1,341,125
Pass [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	48,969	47,243
Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	66,741	59,255
Special Mention [Member] | Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	36,607	34,883
Special Mention [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	5,131	3,392
Special Mention [Member] | Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	15,657	11,545
Special Mention [Member] | One To Four Family Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,269	1,253
Special Mention [Member] | Other Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	8,077	8,179
Special Mention [Member] | Residential Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	25,003	20,977
Special Mention [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	0	3
Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	36,168	33,897
Substandard [Member] | Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	5,340	5,657
Substandard [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	9,709	9,237
Substandard [Member] | Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	2,310	2,140
Substandard [Member] | One To Four Family Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	12,496	12,349
Substandard [Member] | Other Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	5,496	3,798
Substandard [Member] | Residential Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	20,302	18,287
Substandard [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	817	716
Doubtful [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | One To Four Family Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Other Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Residential Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	$ 0	$ 0

XML

CONSOLIDATED STATEMENT OF EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Issue shares of REIT preferred	250
Stock Options Exercised Shares	174,800	15,500
Stock Options And Warrants Exercised		15,500
Conversion of Stock, Shares Issued		600,000

XML

LOANS (Loans By Performance Status) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable Recorded Investment [Line Items]
Loans	$ 2,937,797	$ 2,858,868
Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,306,058	1,278,649
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	157,127	151,868
Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	711,067	710,372
One To Four Family Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	285,368	278,621
Other Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	428,391	391,396
Residential Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,424,826	1,380,389
Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	49,786	47,962
Performing Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	2,928,603	2,849,132
Performing Financing Receivable [Member] | Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,305,610	1,276,935
Performing Financing Receivable [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	152,848	148,118
Performing Financing Receivable [Member] | Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	709,670	708,937
Performing Financing Receivable [Member] | One To Four Family Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	283,343	276,725
Performing Financing Receivable [Member] | Other Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	428,148	391,153
Performing Financing Receivable [Member] | Residential Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,421,161	1,376,815
Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	48,984	47,264
Nonperforming Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	9,194	9,736
Nonperforming Financing Receivable [Member] | Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	448	1,714
Nonperforming Financing Receivable [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	4,279	3,750
Nonperforming Financing Receivable [Member] | Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	1,397	1,435
Nonperforming Financing Receivable [Member] | One To Four Family Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	2,025	1,896
Nonperforming Financing Receivable [Member] | Other Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	243	243
Nonperforming Financing Receivable [Member] | Residential Real Estate Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	3,665	3,574
Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans	$ 802	$ 698

XML

EMPLOYEE AND DIRECTOR BENEFITS (Additional Information) (Detail) (USD $)	3 Months Ended									3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2009	Mar. 31, 2014 Subordinated Debt [Member]	Mar. 31, 2014 Non Employees [Member]	Feb. 28, 2009 Advisory Board One [Member]	Mar. 31, 2014 Advisory Board Two [Member]	Mar. 31, 2014 Minimum [Member]	Mar. 31, 2014 Maximum [Member]	Mar. 31, 2014 Restricted Stock [Member]	Mar. 31, 2014 Plan 2005 [Member]	Mar. 31, 2014 Plan 2009 [Member]	Mar. 31, 2014 Non Plan Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation	$ 1,020,000	$ 259,000
Shares available for grant											1,025,000	425,000	55,000
Share Price								$ 15.00	$ 20.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 8.86	$ 8.03
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	1,711,000									1,299,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	2 years 1 month 6 days									1 year 9 months 18 days
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total	78,500
Non Routine Expenses	$ 703,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant					55,000	20,000	35,000
Rights Or Warrants Granted For Common Stock Shares Issue			15,000
Exercise Price			$ 25
Debt Instrument, Interest Rate, Stated Percentage				8.25%

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
ASSETS
Cash and due from banks	$ 77,542	$ 61,370
Interest-bearing balances due from depository institutions	134,415	188,411
Federal funds sold	10,535	8,634
Cash and cash equivalents	222,492	258,415
Available for sale debt securities, at fair value	277,501	266,220
Held to maturity debt securities (fair value of $31,559 and $31,315 at March 31, 2014 and December 31, 2013, respectively)	31,974	32,274
Restricted equity securities	3,738	3,738
Mortgage loans held for sale	6,704	8,134
Loans	2,937,797	2,858,868
Less allowance for loan losses	(31,728)	(30,663)
Loans, net	2,906,069	2,828,205
Premises and equipment, net	8,015	8,351
Accrued interest and dividends receivable	10,370	10,262
Deferred tax assets	11,935	11,018
Other real estate owned and repossessed assets	9,752	12,861
Bank owned life insurance contracts	69,544	69,008
Other assets	14,820	12,213
Total assets	3,572,914	3,520,699
Deposits
Noninterest-bearing	662,834	650,456
Interest-bearing	2,368,207	2,369,186
Total deposits	3,031,041	3,019,642
Federal funds purchased	195,762	174,380
Other borrowings	19,949	19,940
Accrued interest payable	2,121	769
Other liabilities	11,758	8,776
Total liabilities	3,260,631	3,223,507
Stockholders' equity:
Common stock, par value $.001 per share; 50,000,000 shares authorized; 7,524,812 shares issued and outstanding at March 31, 2014 and 7,350,012 shares issued and outstanding at December 31, 2013	8	7
Additional paid-in capital	127,218	123,325
Retained earnings	140,538	130,011
Accumulated other comprehensive income	4,309	3,891
Noncontrolling interest	252	0
Total stockholders' equity	312,283	297,192
Total liabilities and stockholders' equity	3,572,914	3,520,699
Series A Preferred Stock [Member]
Stockholders' equity:
Preferred stock	39,958	39,958
Undesignated Preferred Stock [Member]
Stockholders' equity:
Preferred stock	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Unrealized holding (losses) gains arising during period from securities available for sale	$ 225	$ (154)
Reclassification adjustment for net gains on sale of securities in net income		$ 43

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LOANS (Details Of Company's Impaired Loans) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable Impaired [Line Items]
Recorded Investment, with no allowance recorded	$ 7,638	$ 7,263
Unpaid Principal Balance, with no allowance recorded	8,569	7,701
Related Allowance, with no allowance recorded	0	0
Average Recorded Investment , with no allowance recorded	7,652	6,263
Interest Income Recognized in Period, with no allowance recorded	77	305
Recorded Investment, with an allowance recorded	26,569	24,703
Unpaid Principal Balance, with an allowance recorded	27,288	25,622
Related Allowance with an allowance recorded	7,111	6,270
Average Recorded Investment , with an allowance recorded	26,468	24,387
Interest Income Recognized in Period, with an allowance recorded	211	802
Recorded Investment	34,207	31,966
Unpaid Principal Balance	35,857	33,323
Related Allowance	7,111	6,270
Average Recorded Investment	34,120	30,650
Interest Income Recognized in Period	288	1,107
Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Impaired [Line Items]
Recorded Investment, with no allowance recorded	1,161	1,210
Unpaid Principal Balance, with no allowance recorded	1,654	1,210
Related Allowance, with no allowance recorded	0	0
Average Recorded Investment , with no allowance recorded	1,414	1,196
Interest Income Recognized in Period, with no allowance recorded	14	63
Recorded Investment, with an allowance recorded	2,289	2,618
Unpaid Principal Balance, with an allowance recorded	2,429	2,958
Related Allowance with an allowance recorded	1,422	1,992
Average Recorded Investment , with an allowance recorded	2,312	2,844
Interest Income Recognized in Period, with an allowance recorded	31	98
Recorded Investment	3,450	3,828
Unpaid Principal Balance	4,083	4,168
Related Allowance	1,422	1,992
Average Recorded Investment	3,726	4,040
Interest Income Recognized in Period	45	161
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Impaired [Line Items]
Recorded Investment, with no allowance recorded	2,214	1,967
Unpaid Principal Balance, with no allowance recorded	2,652	2,405
Related Allowance, with no allowance recorded	0	0
Average Recorded Investment , with no allowance recorded	1,964	1,363
Interest Income Recognized in Period, with no allowance recorded	11	32
Recorded Investment, with an allowance recorded	7,495	7,270
Unpaid Principal Balance, with an allowance recorded	7,976	7,750
Related Allowance with an allowance recorded	2,184	1,597
Average Recorded Investment , with an allowance recorded	7,337	6,564
Interest Income Recognized in Period, with an allowance recorded	45	200
Recorded Investment	9,709	9,237
Unpaid Principal Balance	10,628	10,155
Related Allowance	2,184	1,597
Average Recorded Investment	9,301	7,927
Interest Income Recognized in Period	56	232
Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Impaired [Line Items]
Recorded Investment, with no allowance recorded	759	577
Unpaid Principal Balance, with no allowance recorded	759	577
Related Allowance, with no allowance recorded	0	0
Average Recorded Investment , with no allowance recorded	767	603
Interest Income Recognized in Period, with no allowance recorded	2	32
Recorded Investment, with an allowance recorded	1,496	1,509
Unpaid Principal Balance, with an allowance recorded	1,496	1,509
Related Allowance with an allowance recorded	449	620
Average Recorded Investment , with an allowance recorded	1,520	1,573
Interest Income Recognized in Period, with an allowance recorded	14	38
Recorded Investment	2,255	2,086
Unpaid Principal Balance	2,255	2,086
Related Allowance	449	620
Average Recorded Investment	2,287	2,176
Interest Income Recognized in Period	16	70
One To Four Family Mortgage Loans [Member]
Financing Receivable Impaired [Line Items]
Recorded Investment, with no allowance recorded	1,198	1,198
Unpaid Principal Balance, with no allowance recorded	1,198	1,198
Related Allowance, with no allowance recorded	0	0
Average Recorded Investment , with no allowance recorded	1,198	1,200
Interest Income Recognized in Period, with no allowance recorded	15	55
Recorded Investment, with an allowance recorded	11,297	11,120
Unpaid Principal Balance, with an allowance recorded	11,297	11,120
Related Allowance with an allowance recorded	1,546	1,210
Average Recorded Investment , with an allowance recorded	11,297	10,743
Interest Income Recognized in Period, with an allowance recorded	84	342
Recorded Investment	12,495	12,318
Unpaid Principal Balance	12,495	12,318
Related Allowance	1,546	1,210
Average Recorded Investment	12,495	11,943
Interest Income Recognized in Period	99	397
Other Real Estate Mortgage Loans [Member]
Financing Receivable Impaired [Line Items]
Recorded Investment, with no allowance recorded	2,306	2,311
Unpaid Principal Balance, with no allowance recorded	2,306	2,311
Related Allowance, with no allowance recorded	0	0
Average Recorded Investment , with no allowance recorded	2,309	1,901
Interest Income Recognized in Period, with no allowance recorded	35	123
Recorded Investment, with an allowance recorded	3,190	1,487
Unpaid Principal Balance, with an allowance recorded	3,288	1,586
Related Allowance with an allowance recorded	708	152
Average Recorded Investment , with an allowance recorded	3,194	1,873
Interest Income Recognized in Period, with an allowance recorded	37	96
Recorded Investment	5,496	3,798
Unpaid Principal Balance	5,594	3,897
Related Allowance	708	152
Average Recorded Investment	5,503	3,774
Interest Income Recognized in Period	72	219
Residential Real Estate Mortgage Loans [Member]
Financing Receivable Impaired [Line Items]
Recorded Investment, with no allowance recorded	4,263	4,086
Unpaid Principal Balance, with no allowance recorded	4,263	4,086
Related Allowance, with no allowance recorded	0	0
Average Recorded Investment , with no allowance recorded	4,274	3,704
Interest Income Recognized in Period, with no allowance recorded	52	210
Recorded Investment, with an allowance recorded	15,983	14,116
Unpaid Principal Balance, with an allowance recorded	16,081	14,215
Related Allowance with an allowance recorded	2,703	1,982
Average Recorded Investment , with an allowance recorded	16,011	14,189
Interest Income Recognized in Period, with an allowance recorded	135	476
Recorded Investment	20,246	18,202
Unpaid Principal Balance	20,344	18,301
Related Allowance	2,703	1,982
Average Recorded Investment	20,285	17,893
Interest Income Recognized in Period	187	686
Consumer Portfolio Segment [Member]
Financing Receivable Impaired [Line Items]
Recorded Investment, with no allowance recorded	0	0
Unpaid Principal Balance, with no allowance recorded	0	0
Related Allowance, with no allowance recorded	0	0
Average Recorded Investment , with no allowance recorded	0	0
Interest Income Recognized in Period, with no allowance recorded	0	0
Recorded Investment, with an allowance recorded	802	699
Unpaid Principal Balance, with an allowance recorded	802	699
Related Allowance with an allowance recorded	802	699
Average Recorded Investment , with an allowance recorded	808	790
Interest Income Recognized in Period, with an allowance recorded	0	28
Recorded Investment	802	699
Unpaid Principal Balance	802	699
Related Allowance	802	699
Average Recorded Investment	808	790
Interest Income Recognized in Period	$ 0	$ 28

XML

LOANS (Tables)

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Details Of Loans

The following table details the Company’s loans at March 31, 2014 and December 31, 2013:

	March 31,			December 31,
	2014			2013
	(Dollars In Thousands)
Commercial, financial and agricultural	$	1,306,058		$	1,278,649
Real estate - construction		157,127			151,868
Real estate - mortgage:
Owner-occupied commercial		711,067			710,372
1-4 family mortgage		285,368			278,621
Other mortgage		428,391			391,396
Subtotal: Real estate - mortgage		1,424,826			1,380,389
Consumer		49,786			47,962
Total Loans		2,937,797			2,858,868
Less: Allowance for loan losses		(31,728)			(30,663)
Net Loans	$	2,906,069		$	2,828,205
Commercial, financial and agricultural		44.46	%		44.73	%
Real estate - construction		5.35	%		5.31	%
Real estate - mortgage:
Owner-occupied commercial		24.20	%		24.85	%
1-4 family mortgage		9.71	%		9.74	%
Other mortgage		14.58	%		13.69	%
Subtotal: Real estate - mortgage		48.49	%		48.28	%
Consumer		1.70	%		1.68	%
Total Loans		100.00	%		100.00	%

Loans By Credit Quality Indicator

Loans by credit quality indicator as of March 31, 2014 and December 31, 2013 were as follows:

			Special
March 31, 2014	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,264,111	$	36,607	$	5,340	$	-	$	1,306,058
Real estate - construction		142,287		5,131		9,709		-		157,127
Real estate - mortgage:
Owner-occupied commercial		693,100		15,657		2,310		-		711,067
1-4 family mortgage		271,603		1,269		12,496		-		285,368
Other mortgage		414,818		8,077		5,496		-		428,391
Total real estate mortgage		1,379,521		25,003		20,302		-		1,424,826
Consumer		48,969		-		817		-		49,786
Total	$	2,834,888	$	66,741	$	36,168	$	-	$	2,937,797

			Special
December 31, 2013	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,238,109	$	34,883	$	5,657	$	-	$	1,278,649
Real estate - construction		139,239		3,392		9,237		-		151,868
Real estate - mortgage:
Owner-occupied commercial		696,687		11,545		2,140		-		710,372
1-4 family mortgage		265,019		1,253		12,349		-		278,621
Other mortgage		379,419		8,179		3,798		-		391,396
Total real estate mortgage		1,341,125		20,977		18,287		-		1,380,389
Consumer		47,243		3		716		-		47,962
Total	$	2,765,716	$	59,255	$	33,897	$	-	$	2,858,868

Loans By Performance Status

Loans by performance status as of March 31, 2014 and December 31, 2013 were as follows:

March 31, 2014	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,305,610	$	448	$	1,306,058
Real estate - construction		152,848		4,279		157,127
Real estate - mortgage:
Owner-occupied commercial		709,670		1,397		711,067
1-4 family mortgage		283,343		2,025		285,368
Other mortgage		428,148		243		428,391
Total real estate mortgage		1,421,161		3,665		1,424,826
Consumer		48,984		802		49,786
Total	$	2,928,603	$	9,194	$	2,937,797

December 31, 2013	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,276,935	$	1,714	$	1,278,649
Real estate - construction		148,118		3,750		151,868
Real estate - mortgage:
Owner-occupied commercial		708,937		1,435		710,372
1-4 family mortgage		276,725		1,896		278,621
Other mortgage		391,153		243		391,396
Total real estate mortgage		1,376,815		3,574		1,380,389
Consumer		47,264		698		47,962
Total	$	2,849,132	$	9,736	$	2,858,868

Loans By Past Due Status

Loans by past due status as of March 31, 2014 and December 31, 2013 were as follows:

March 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	$	1,127	$	98	$	-	$	1,225	$	448	$	1,304,385	$	1,306,058
Real estate - construction		1,755		-		15		1,770		4,264		151,093		157,127
Real estate - mortgage:
Owner-occupied commercial		224		-		-		224		1,397		709,446		711,067
1-4 family mortgage		45		169		-		214		2,025		283,129		285,368
Other mortgage		522		-		-		522		243		427,626		428,391
Total real estate - mortgage		791		169		-		960		3,665		1,420,201		1,424,826
Consumer		16		53		95		164		707		48,915		49,786
Total	$	3,689	$	320	$	110	$	4,119	$	9,084	$	2,924,594	$	2,937,797

December 31, 2013	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	$	73	$	-	$	-	$	73	$	1,714	$	1,276,862	$	1,278,649
Real estate - construction		-		-		-		-		3,750		148,118		151,868
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		1,435		708,937		710,372
1-4 family mortgage		177		-		19		196		1,877		276,548		278,621
Other mortgage		-		-		-		-		243		391,153		391,396
Total real estate - mortgage		177		-		19		196		3,555		1,376,638		1,380,389
Consumer		89		97		96		282		602		47,078		47,962
Total	$	339	$	97	$	115	$	551	$	9,621	$	2,848,696	$	2,858,868

Changes In Allowance For Loan Losses Segregated By Loan Type

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 -				Qualitative
	agricultural		construction		mortgage		Consumer		Factors		Total
	(In Thousands)
	Three Months Ended March 31, 2014
Allowance for loan losses:
Balance at December 31, 2013	$	11,170	$	5,809	$	7,495	$	855	$	5,334	$	30,663
Chargeoffs		(1,222)		(23)		(4)		(58)		-		(1,307)
Recoveries		45		8		4		1		-		58
Provision		987		264		642		153		268		2,314
Balance at March 31, 2014	$	10,980	$	6,058	$	8,137	$	951	$	5,602	$	31,728

	Three Months Ended March 31, 2013
Allowance for loan losses:
Balance at December 31, 2012	$	8,233	$	6,511	$	4,912	$	199	$	6,403	$	26,258
Chargeoffs		(887)		(1,990)		-		(1)		-		(2,878)
Recoveries		6		7		-		2		-		15
Provision		1,599		2,114		825		(36)		(218)		4,284
Balance at March 31, 2013	$	8,951	$	6,642	$	5,737	$	164	$	6,185	$	27,679

	As of March 31, 2014
Allowance for loan losses:
Individually Evaluated for Impairment	$	1,422	$	2,184	$	2,703	$	802	$	-	$	7,111
Collectively Evaluated for Impairment		9,558		3,874		5,434		149		5,602		24,617
Loans:
Ending Balance	$	1,306,058	$	157,127	$	1,424,826	$	49,786		-	$	2,937,797
Individually Tested for Impairment		3,450		9,709		20,246		802		-		34,207
Collectively Evaluated for Impairment		1,302,608		147,418		1,404,580		48,984		-		2,903,590

	As of December 31, 2013
Allowance for loan losses:
Individually Evaluated for Impairment	$	1,992	$	1,597	$	1,982	$	699	$	-	$	6,270
Collectively Evaluated for Impairment		9,178		4,212		5,513		156		5,334		24,393
Loans:
Ending Balance	$	1,278,649	$	151,868	$	1,380,389	$	47,962		-	$	2,858,868
Individually Evaluated for Impairment		3,827		9,238		18,202		699		-		31,966
Collectively Evaluated for Impairment		1,274,822		142,630		1,362,187		47,263		-		2,826,902

Details Of Company's Impaired Loans

The following table presents details of the Company’s impaired loans as of March 31, 2014 and December 31, 2013, respectively. Loans which have been fully charged off do not appear in the table.

	March 31, 2014
							For the three months ended March 31, 2014
									Interest
			Unpaid				Average		Income
	Recorded		Principal		Related		Recorded		Recognized
	Investment		Balance		Allowance		Investment		in Period
	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,161	$	1,654	$	-	$	1,414	$	14
Real estate - construction		2,214		2,652		-		1,964		11
Real estate - mortgage:
Owner-occupied commercial		759		759		-		767		2
1-4 family mortgage		1,198		1,198		-		1,198		15
Other mortgage		2,306		2,306		-		2,309		35
Total real estate - mortgage		4,263		4,263		-		4,274		52
Consumer		-		-		-		-		-
Total with no allowance recorded		7,638		8,569		-		7,652		77
With an allowance recorded:
Commercial, financial and agricultural		2,289		2,429		1,422		2,312		31
Real estate - construction		7,495		7,976		2,184		7,337		45
Real estate - mortgage:
Owner-occupied commercial		1,496		1,496		449		1,520		14
1-4 family mortgage		11,297		11,297		1,546		11,297		84
Other mortgage		3,190		3,288		708		3,194		37
Total real estate - mortgage		15,983		16,081		2,703		16,011		135
Consumer		802		802		802		808		-
Total with allowance recorded		26,569		27,288		7,111		26,468		211
Total Impaired Loans:
Commercial, financial and agricultural		3,450		4,083		1,422		3,726		45
Real estate - construction		9,709		10,628		2,184		9,301		56
Real estate - mortgage:
Owner-occupied commercial		2,255		2,255		449		2,287		16
1-4 family mortgage		12,495		12,495		1,546		12,495		99
Other mortgage		5,496		5,594		708		5,503		72
Total real estate - mortgage		20,246		20,344		2,703		20,285		187
Consumer		802		802		802		808		-
Total impaired loans	$	34,207	$	35,857	$	7,111	$	34,120	$	288

	December 31, 2013
									Interest
			Unpaid				Average		Income
	Recorded		Principal		Related		Recorded		Recognized
	Investment		Balance		Allowance		Investment		In Period
			(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,210	$	1,210	$	-	$	1,196	$	63
Real estate - construction		1,967		2,405		-		1,363		32
Real estate - mortgage:
Owner-occupied commercial		577		577		-		603		32
1-4 family mortgage		1,198		1,198		-		1,200		55
Other mortgage		2,311		2,311		-		1,901		123
Total real estate - mortgage		4,086		4,086		-		3,704		210
Consumer		-		-		-		-		-
Total with no allowance recorded		7,263		7,701		-		6,263		305
With an allowance recorded:
Commercial, financial and agricultural		2,618		2,958		1,992		2,844		98
Real estate - construction		7,270		7,750		1,597		6,564		200
Real estate – mortgage:
Owner-occupied commercial		1,509		1,509		620		1,573		38
1-4 family mortgage		11,120		11,120		1,210		10,743		342
Other mortgage		1,487		1,586		152		1,873		96
Total real estate - mortgage		14,116		14,215		1,982		14,189		476
Consumer		699		699		699		790		28
Total with allowance recorded		24,703		25,622		6,270		24,387		802
Total Impaired Loans:
Commercial, financial and agricultural		3,828		4,168		1,992		4,040		161
Real estate - construction		9,237		10,155		1,597		7,927		232
Real estate – mortgage:
Owner-occupied commercial		2,086		2,086		620		2,176		70
1-4 family mortgage		12,318		12,318		1,210		11,943		397
Other mortgage		3,798		3,897		152		3,774		219
Total real estate - mortgage		18,202		18,301		1,982		17,893		686
Consumer		699		699		699		790		28
Total impaired loans	$	31,966	$	33,323	$	6,270	$	30,650	$	1,107

Analysis Of Troubled Debt Restructuring

The following table presents an analysis of TDRs as of March 31, 2014 and March 31, 2013.

	March 31, 2014						March 31, 2013
			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		3	$	1,049	$	1,049		2	$	1,121	$	1,121
Real estate - construction		7		2,078		2,078		15		3,213		3,213
Real estate - mortgage:
Owner-occupied commercial		-		-		-		6		5,907		5,907
1-4 family mortgage		4		10,073		10,073		5		1,709		1,709
Other mortgage		1		278		278		1		301		301
Total real estate mortgage		5		10,351		10,351		12		7,917		7,917
Consumer		-		-		-		-		-		-
		15	$	13,478	$	13,478		29	$	12,251	$	12,251

	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
Troubled Debt Restructurings That Subsequently Defaulted Commercial, financial and agricultural		1	$	141		-	$	-
Real estate - construction		7		2,078		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		3		2,786
1-4 family mortgage		2		1,848		-		-
Other mortgage		-		-		-		-
Total real estate - mortgage		2		1,848		3		2,786
Consumer		-		-		-		-
		10	$	4,067		3	$	2,786

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LOANS (Analysis Of Troubled Debt Restructuring) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014 Number	Mar. 31, 2013 Number	Dec. 31, 2013
Financing Receivable Modifications [Line Items]
Number of Contracts	15	29
Pre- Modification Outstanding Recorded Investment	$ 13,478	$ 12,251
Post- Modification Outstanding Recorded Investment	13,478	12,251	14,200
Number of Contracts	10	3
Recorded Investment	4,067	2,786
Commercial Financial and Agricultural Financing Receivable [Member]
Financing Receivable Modifications [Line Items]
Number of Contracts	3	2
Pre- Modification Outstanding Recorded Investment	1,049	1,121
Post- Modification Outstanding Recorded Investment	1,049	1,121
Number of Contracts	1	0
Recorded Investment	141	0
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable Modifications [Line Items]
Number of Contracts	7	15
Pre- Modification Outstanding Recorded Investment	2,078	3,213
Post- Modification Outstanding Recorded Investment	2,078	3,213
Number of Contracts	7	0
Recorded Investment	2,078	0
Commercial Mortgage Loans Owner Occupied [Member]
Financing Receivable Modifications [Line Items]
Number of Contracts	0	6
Pre- Modification Outstanding Recorded Investment	0	5,907
Post- Modification Outstanding Recorded Investment	0	5,907
Number of Contracts	0	3
Recorded Investment	0	2,786
One To Four Family Mortgage Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Contracts	4	5
Pre- Modification Outstanding Recorded Investment	10,073	1,709
Post- Modification Outstanding Recorded Investment	10,073	1,709
Number of Contracts	2	0
Recorded Investment	1,848	0
Other Real Estate Mortgage Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Contracts	1	1
Pre- Modification Outstanding Recorded Investment	278	301
Post- Modification Outstanding Recorded Investment	278	301
Number of Contracts	0	0
Recorded Investment	0	0
Residential Real Estate Mortgage Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Contracts	5	12
Pre- Modification Outstanding Recorded Investment	10,351	7,917
Post- Modification Outstanding Recorded Investment	10,351	7,917
Number of Contracts	2	3
Recorded Investment	1,848	2,786
Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of Contracts	0	0
Pre- Modification Outstanding Recorded Investment	0	0
Post- Modification Outstanding Recorded Investment	0	0
Number of Contracts	0	0
Recorded Investment	$ 0	$ 0

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FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Financial Assets And Liabilities Carried At Fair Value On Recurring Basis

The following table presents the Company’s financial assets and financial liabilities carried at fair value on a recurring basis as of March 31, 2014 and December 31, 2013:

	Fair Value Measurements at March 31, 2014 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable Inputs		Unobservable
	Assets (Level 1)		(Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Recurring Basis:
Available for sale debt securities:
U.S. Treasury and government sponsored agencies	$	-	$	43,427	$	-	$	43,427
Mortgage-backed securities		-		86,476		-		86,476
State and municipal securities		-		131,653		-		131,653
Corporate debt		-		15,945		-		15,945
Total assets at fair value	$	-	$	277,501	$	-	$	277,501

	Fair Value Measurements at December 31, 2013 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable Inputs		Unobservable
	Assets (Level 1)		(Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Recurring Basis:
Available for sale debt securities:
U.S. Treasury and government sponsored agencies	$	-	$	32,274	$	-	$	32,274
Mortgage-backed securities		-		88,240		-		88,240
State and municipal securities		-		129,831		-		129,831
Corporate debt		-		15,875		-		15,875
Total assets at fair value	$	-	$	266,220	$	-	$	266,220

Financial Assets And Liabilities Carried At Fair Value On Nonrecurring Basis

The following table presents the Company’s financial assets and financial liabilities carried at fair value on a nonrecurring basis as of March 31, 2014 and December 31, 2013:

	Fair Value Measurements at March 31, 2014 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	-	$	-	$	27,096	$	27,096
Other real estate owned and repossessed assets		-		-		9,752		9,752
Total assets at fair value	$	-	$	-	$	36,848	$	36,848

	Fair Value Measurements at December 31, 2013 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	-	$	-	$	25,696	$	25,696
Other real estate owned		-		-		12,861		12,861
Total assets at fair value	$	-	$	-	$	38,557	$	38,557

Carrying Amount And Estimated Fair Value Of Financial Instruments

This table includes those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis.

	March 31, 2014				December 31, 2013
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
	(In Thousands)
Financial Assets:
Level 2 inputs:
Available for sale debt securities	$	277,501	$	277,501	$	266,220	$	266,220
Held to maturity debt securities		31,974		31,559		32,274		31,315
Restricted equity securities		3,738		3,738		3,738		3,738
Federal funds sold		10,535		10,535		8,634		8,634
Mortgage loans held for sale		6,704		6,704		8,134		8,134
Bank owned life insurance contracts		69,544		69,544		69,008		69,008
Level 3 Inputs:
Loans, net	$	2,906,069	$	2,909,139	$	2,828,205	$	2,825,924
Financial Liabilities:
Level 2 inputs:
Deposits	$	3,031,041	$	3,033,281	$	3,019,642	$	3,021,847
Federal funds purchased		195,765		195,765		174,380		174,380
Other borrowings		19,949		19,949		19,940		19,940

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CONSOLIDATED STATEMENT OF EQUITY (USD $) In Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]
Beginning Balance at Dec. 31, 2012	$ 233,257	$ 39,958	$ 6	$ 93,505	$ 92,492	$ 7,296	$ 0
Dividends paid	(12)	0	0	0	(12)	0	0
Preferred dividends paid	(100)	0	0	0	(100)	0	0
Exercise stock options and warrants, including tax benefit	259	0	0	259	0	0	0
Issuance of 600,000 shares upon conversion of subordinated mandatorily convertible debentures	15,000	0	1	14,999	0	0	0
Stock-based compensation expense	259	0	0	259	0	0	0
Other comprehensive income (loss)	(367)	0	0	0	0	(367)	0
Net income	9,251	0	0	0	9,251	0	0
Ending Balance at Mar. 31, 2013	257,547	39,958	7	109,022	101,631	6,929	0
Beginning Balance at Dec. 31, 2013	297,192	39,958	7	123,325	130,011	3,891	0
Dividends paid	(1,129)	0	0	0	(1,129)	0	0
Preferred dividends paid	(100)	0	0	0	(100)	0	0
Exercise stock options and warrants, including tax benefit	2,874	0	1	2,873	0	0	0
Stock-based compensation expense	1,020	0	0	1,020	0	0	0
Issue 250 shares of REIT preferred stock	250	0	0	0	0	0	250
Other comprehensive income (loss)	418	0	0	0	0	418	0
Net income	11,758	0	0	0	11,756	0	2
Ending Balance at Mar. 31, 2014	$ 312,283	$ 39,958	$ 8	$ 127,218	$ 140,538	$ 4,309	$ 252

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Held to maturity debt securities, fair value	$ 31,559	$ 31,315
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	7,524,812	7,350,012
Common stock, shares outstanding	7,524,812	7,350,012
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, liquidation preference	$ 1,000	$ 1,000
Preferred stock, authorized	40,000	40,000
Preferred stock, shares issued	40,000	40,000
Preferred stock, shares outstanding	40,000	40,000
Undesignated Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	1,000,000	1,000,000
Preferred stock, undesignated	960,000	960,000

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RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

NOTE 8 – RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

In July 2013, the FASB issued ASU No. 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes, which permits the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the U.S. Treasury and London Interbank Offered Rate. The ASU also amends previous rules by removing the restriction on using different benchmark rates for similar hedges. This amendment applies to all entities that elect to apply hedge accounting of the benchmark interest rate. The amendments in this ASU were effective for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company has adopted this update, but such adoption had no impact on its financial position or results of operations.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. These amendments in this ASU are effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013. Early adoption and retrospective application is permitted. The Company has adopted this update, but such adoption had no impact on its financial position or results of operations.

In January 2014, the FASB issued ASU No. 2014-1, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects, which provides guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. It permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial investment in proportion to the tax credits and other tax benefits received, and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments are effective for public entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and are effective for all entities other than public entities for annual periods beginning after December 15, 2014, and interim reporting periods within annual periods beginning after December 15, 2015. Early adoption is permitted retrospective application is required for all periods presented. The Company made an investment in a limited partnership during the first quarter of 2014 which has invested in a qualified affordable housing project. The Company has made an election to account for this investment as provided for in this update, and will recognize the net investment performance of its share of the partnership as tax credits become available.

XML

Document And Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 23, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	SVFB
Entity Common Stock, Shares Outstanding		7,564,812
Entity Registrant Name	ServisFirst Bancshares, Inc.
Entity Central Index Key	0001430723
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer

XML

FAIR VALUE MEASUREMENT

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

NOTE 9 - FAIR VALUE MEASUREMENT

Measurement of fair value under U.S. GAAP establishes a hierarchy that prioritizes observable and unobservable inputs used to measure fair value, as of the measurement date, into three broad levels, which are described below:

Level 1:	Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
Level 2:	Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3:	Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and also considers counterparty credit risk in its assessment of fair value.

Debt Securities. Where quoted prices are available in an active market, securities are classified within Level 1 of the hierarchy. Level 1 securities include highly liquid government securities such as U.S. Treasuries and exchange-traded equity securities. For securities traded in secondary markets for which quoted market prices are not available, the Company generally relies on pricing services provided by independent vendors. Such independent pricing services are to advise the Company on the carrying value of the securities available for sale portfolio. As part of the Company’s procedures, the price provided from the service is evaluated for reasonableness given market changes. When a questionable price exists, the Company investigates further to determine if the price is valid. If needed, other market participants may be utilized to determine the correct fair value. The Company has also reviewed and confirmed its determinations in discussions with the pricing source regarding their methods of price discovery. Securities measured with these techniques are classified within Level 2 of the hierarchy and often involve using quoted market prices for similar securities, pricing models or discounted cash flow calculations using inputs observable in the market where available. Examples include U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions, and certain corporate, asset-backed and other securities. In cases where Level 1 or Level 2 inputs are not available, securities are classified in Level 3 of the hierarchy.

Impaired Loans. Impaired loans are measured and reported at fair value when full payment under the loan terms is not probable. Impaired loans are carried at the present value of expected future cash flows using the loan’s existing rate in a discounted cash flow calculation, or the fair value of the collateral if the loan is collateral-dependent. Expected cash flows are based on internal inputs reflecting expected default rates on contractual cash flows. This method of estimating fair value does not incorporate the exit-price concept of fair value described in Accounting Standards Codification (“ASC”) 820-10 and would generally result in a higher value than the exit-price approach. For loans measured using the estimated fair value of collateral less costs to sell, fair value is generally determined based on appraisals performed by certified and licensed appraisers using inputs such as absorption rates, capitalization rates, and market comparables, adjusted for estimated costs to sell. Management modifies the appraised values, if needed, to take into account recent developments in the market or other factors, such as changes in absorption rates or market conditions from the time of valuation, and anticipated sales values considering management’s plans for disposition. Such modifications to the appraised values could result in lower valuations of such collateral. Estimated costs to sell are based on current amounts of disposal costs for similar assets. These measurements are classified as Level 3 within the valuation hierarchy. Impaired loans are subject to nonrecurring fair value adjustment upon initial recognition or subsequent impairment. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly based on the same factors identified above. The amount recognized as an impairment charge related to impaired loans that are measured at fair value on a nonrecurring basis was $2,235,000 during the three months ended March 31, 2014, and $3,925,000 during the three months ended March 31, 2013.

Other Real Estate Owned. Other real estate assets (“OREO”) acquired through, or in lieu of, foreclosure are held for sale and are initially recorded at the lower of cost or fair value, less selling costs. Any write-downs to fair value at the time of transfer to OREO are charged to the allowance for loan losses subsequent to foreclosure. Values are derived from appraisals of underlying collateral and discounted cash flow analysis. Appraisals are performed by certified and licensed appraisers. Subsequent to foreclosure, valuations are updated periodically and assets are marked to current fair value, not to exceed the new cost basis. In the determination of fair value subsequent to foreclosure, management also considers other factors or recent developments, such as changes in absorption rates and market conditions from the time of valuation, and anticipated sales values considering management’s plans for disposition, which could result in adjustment to lower the property value estimates indicated in the appraisals. These measurements are classified as Level 3 within the valuation hierarchy. A loss on the sale and write-downs of OREO of $306,000 was recognized during the three months ended March 31, 2014, and $308,000 during the three months ended March 31, 2013. These charges were for write-downs in the value of OREO subsequent to foreclosure and losses on the disposal of OREO. OREO is classified within Level 3 of the hierarchy.

The following table presents the Company’s financial assets and financial liabilities carried at fair value on a recurring basis as of March 31, 2014 and December 31, 2013:

	Fair Value Measurements at March 31, 2014 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable Inputs		Unobservable
	Assets (Level 1)		(Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Recurring Basis:
Available for sale debt securities:
U.S. Treasury and government sponsored agencies	$	-	$	43,427	$	-	$	43,427
Mortgage-backed securities		-		86,476		-		86,476
State and municipal securities		-		131,653		-		131,653
Corporate debt		-		15,945		-		15,945
Total assets at fair value	$	-	$	277,501	$	-	$	277,501

	Fair Value Measurements at December 31, 2013 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable Inputs		Unobservable
	Assets (Level 1)		(Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Recurring Basis:
Available for sale debt securities:
U.S. Treasury and government sponsored agencies	$	-	$	32,274	$	-	$	32,274
Mortgage-backed securities		-		88,240		-		88,240
State and municipal securities		-		129,831		-		129,831
Corporate debt		-		15,875		-		15,875
Total assets at fair value	$	-	$	266,220	$	-	$	266,220

The following table presents the Company’s financial assets and financial liabilities carried at fair value on a nonrecurring basis as of March 31, 2014 and December 31, 2013:

	Fair Value Measurements at March 31, 2014 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	-	$	-	$	27,096	$	27,096
Other real estate owned and repossessed assets		-		-		9,752		9,752
Total assets at fair value	$	-	$	-	$	36,848	$	36,848

	Fair Value Measurements at December 31, 2013 Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
	(In Thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	-	$	-	$	25,696	$	25,696
Other real estate owned		-		-		12,861		12,861
Total assets at fair value	$	-	$	-	$	38,557	$	38,557

The fair value of a financial instrument is the current amount that would be exchanged in a sale between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Current U.S. GAAP excludes certain financial instruments and all nonfinancial instruments from its fair value disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash and cash equivalents: The carrying amounts reported in the statements of financial condition approximate those assets’ fair values.

Debt securities: Where quoted prices are available in an active market, securities are classified within Level 1 of the hierarchy. Level 1 securities include highly liquid government securities such as U.S. treasuries and exchange-traded equity securities. For securities traded in secondary markets for which quoted market prices are not available, the Company generally relies on prices obtained from independent vendors. Such independent pricing services are to advise the Company on the carrying value of the securities available for sale portfolio. As part of the Company’s procedures, the price provided from the service is evaluated for reasonableness given market changes. When a questionable price exists, the Company investigates further to determine if the price is valid. If needed, other market participants may be utilized to determine the correct fair value. The Company has also reviewed and confirmed its determinations in discussions with the pricing service regarding their methods of price discovery. Securities measured with these techniques are classified within Level 2 of the hierarchy and often involve using quoted market prices for similar securities, pricing models or discounted cash flow calculations using inputs observable in the market where available. Examples include U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions, and certain corporate, asset-backed and other securities. In cases where Level 1 or Level 2 inputs are not available, securities are classified in Level 3 of the fair value hierarchy.

Restricted equity securities: Fair values for other investments are considered to be their cost as they are redeemed at par value.

Loans, net: For variable-rate loans that re-price frequently and with no significant change in credit risk, fair value is based on carrying amounts. The fair value of other loans (for example, fixed-rate commercial real estate loans, mortgage loans, and industrial loans) is estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future expected loss experience and risk characteristics. The method of estimating fair value does not incorporate the exit-price concept of fair value as prescribed by ASC 820 and generally produces a higher value than an exit-price approach. The measurement of the fair value of loans is classified within Level 3 of the fair value hierarchy.

Mortgage loans held for sale: Loans are committed to be delivered to investors on a “best efforts delivery” basis within 30 days of origination. Due to this short turn-around time, the carrying amounts of the Company’s agreements approximate their fair values.

Derivatives: The fair value of the derivative agreements are estimated by a third party using inputs that are observable or can be corroborated by observable market data. As part of the Company’s procedures, the price provided from the third party is evaluated for reasonableness given market changes. These measurements are classified within Level 2 of the fair value hierarchy.

Accrued interest and dividends receivable: The carrying amounts in the statements of condition approximate these assets’ fair value.

Bank owned life insurance contracts: The carrying amounts in the statements of condition approximate these assets’ fair value.

Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation using interest rates currently offered for deposits with similar remaining maturities. The fair value of the Company’s time deposits do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value. Measurements of the fair value of certificates of deposit are classified within Level 2 of the fair value hierarchy.

Other borrowings: The fair values of borrowings are estimated using discounted cash flow analysis, based on interest rates currently being offered by the Federal Home Loan Bank for borrowings of similar terms as those being valued. These measurements are classified as Level 2 in the fair value hierarchy.

Accrued interest payable: The carrying amounts in the statements of condition approximate these assets’ fair value.

Loan commitments: The fair values of the Company’s off-balance-sheet financial instruments are based on fees currently charged to enter into similar agreements. Since the majority of the Company’s other off-balance-sheet financial instruments consists of non-fee-producing, variable-rate commitments, the Company has determined they do not have a distinguishable fair value.

The carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2014 and December 31, 2013 are presented in the following table. This table includes those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis.

	March 31, 2014				December 31, 2013
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
	(In Thousands)
Financial Assets:
Level 2 inputs:
Available for sale debt securities	$	277,501	$	277,501	$	266,220	$	266,220
Held to maturity debt securities		31,974		31,559		32,274		31,315
Restricted equity securities		3,738		3,738		3,738		3,738
Federal funds sold		10,535		10,535		8,634		8,634
Mortgage loans held for sale		6,704		6,704		8,134		8,134
Bank owned life insurance contracts		69,544		69,544		69,008		69,008
Level 3 Inputs:
Loans, net	$	2,906,069	$	2,909,139	$	2,828,205	$	2,825,924
Financial Liabilities:
Level 2 inputs:
Deposits	$	3,031,041	$	3,033,281	$	3,019,642	$	3,021,847
Federal funds purchased		195,765		195,765		174,380		174,380
Other borrowings		19,949		19,949		19,940		19,940

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CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Interest income:
Interest and fees on loans	$ 32,252	$ 27,318
Taxable debt securities	1,097	948
Nontaxable debt securities	871	832
Federal funds sold	42	16
Other interest and dividends	19	51
Total interest income	34,281	29,165
Interest expense:
Deposits	3,014	2,713
Borrowed funds	418	551
Total interest expense	3,432	3,264
Net interest income	30,849	25,901
Provision for loan losses	2,314	4,284
Net interest income after provision for loan losses	28,535	21,617
Noninterest income:
Service charges on deposit accounts	868	762
Mortgage banking	284	980
Securities gains	0	123
Increase in cash surrender value of life insurance	536	470
Other operating income	487	462
Total noninterest income	2,175	2,797
Noninterest expense:
Salaries and employee benefits	7,697	5,679
Equipment and occupancy expense	1,366	1,111
Professional services	516	461
FDIC and other regulatory assessments	517	432
OREO expense	487	390
Other operating expense	3,140	2,679
Total noninterest expense	13,723	10,752
Income before income taxes	16,987	13,662
Provision for income taxes	5,229	4,411
Net income	11,758	9,251
Net income attributable to noncontrolling interest	(2)	0
Net income attributable to Servisfirst Bancshares, Inc.	11,756	9,251
Preferred stock dividends	100	100
Net income available to common stockholders	$ 11,656	$ 9,151
Basic earnings per common share	$ 1.58	$ 1.44
Diluted earnings per common share	$ 1.52	$ 1.31

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EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

NOTE 3 - EARNINGS PER COMMON SHARE

Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock options and warrants.

	Three Months Ended March 31,
	2014		2013
	(In Thousands, Except Shares and Per Share Data)
Earnings per common share
Weighted average common shares outstanding		7,399,992		6,341,605
Net income available to common stockholders	$	11,656	$	9,151
Basic earnings per common share	$	1.58	$	1.44
Weighted average common shares outstanding		7,399,992		6,341,605
Dilutive effects of assumed conversions and exercise of stock options and warrants		261,898		734,900
Weighted average common and dilutive potential common shares outstanding		7,661,890		7,076,505
Net income, available to common stockholders	$	11,656	$	9,151
Effect of interest expense on convertible debt, net of tax and discretionary expenditures related to conversion	$	-	$	132
Net income available to common stockholders, adjusted for effect of debt conversion	$	11,656	$	9,283
Diluted earnings per common share	$	1.52	$	1.31

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CASH AND CASH EQUIVALENTS

3 Months Ended

Mar. 31, 2014

Cash and Cash Equivalents [Abstract]

CASH AND CASH EQUIVALENTS

NOTE 2 - CASH AND CASH EQUIVALENTS

Cash on hand, cash items in process of collection, amounts due from banks, and federal funds sold are included in cash and cash equivalents.

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EMPLOYEE AND DIRECTOR BENEFITS (Tables)

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Assumptions Used To Estimates Fair Value Of Stock Option Award Using Black Scholes Merton Valuation Model

The risk-free rate for periods within the contractual life of the option is based on the U. S. Treasury yield curve in effect at the time of grant.

	2014			2013
Expected volatility		19.25	%		18.50	%
Expected dividends		1.45	%		-	%
Expected term (in years)		8 years			7 years
Risk-free rate		2.33	%		1.39	%

Summary Of Stock Option Activity

The following table summarizes stock option activity during the three months ended March 31, 2014 and March 31, 2013:

					Weighted
			Weighted		Average
			Average		Remaining
			Exercise		Contractual		Aggregate
	Shares		Price		Term (years)		Intrinsic Value
							(In Thousands)
Three Months Ended March 31, 2014:
Outstanding at January 1, 2014		776,300	$	23.08		5.5	$	14,300
Granted		38,000		41.50		9.9		-
Exercised		(174,800)		15.62		2.8		4,523
Forfeited		-		-		-		-
Outstanding at March 31, 2014		639,500		26.21		6.1	$	9,777
Exercisable at March 31, 2014		243,744	$	15.99		3.4	$	6,217
Three Months Ended March 31, 2013:
Outstanding at January 1, 2013		816,500	$	20.87		5.8	$	9,905
Granted		25,000		33.00		10.0		-
Exercised		(9,000)		10.00		2.2		207
Forfeited		-		-		-		-
Outstanding at March 31, 2013		832,500		21.35		5.7	$	9,698
Exercisable at March 31, 2013		458,995	$	14.37		3.5	$	8,550

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 10 – SUBSEQUENT EVENTS

The Company has evaluated all subsequent events through the date of this filing to ensure that this Form 10-Q includes appropriate disclosure of events both recognized in the financial statements as of March 31, 2014, and events which occurred subsequent to March 31, 2014 but were not recognized in the financial statements. As of the date of this filing, there were no subsequent events that required recognition or disclosure.

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EMPLOYEE AND DIRECTOR BENEFITS

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

EMPLOYEE AND DIRECTOR BENEFITS

NOTE 6 - EMPLOYEE AND DIRECTOR BENEFITS

Stock Options

At March 31, 2014, the Company had stock incentive plans as described below. The compensation cost that has been charged to earnings for the plans was approximately $1,020,000 and $259,000 for the three months ended March 31, 2014 and 2013. The Company recognized a non-routine expense of $703,000 as a result of an immaterial correction of its accounting for vested stock options previously granted to members of its advisory boards in the Dothan, Huntsville and Montgomery, Alabama markets. Such grants were historically accounted for under the provisions of Accounting Standards Codification (“ASC”) 718-10, Compensation – Stock Compensation, and now have been determined to be recognized as an expense of the fair value of such grants in accordance with the provisions of ASC 505-50, Equity-Based Payments to Non-Employees.

The Company’s 2005 Amended and Restated Stock Incentive Plan allows for the grant of stock options to purchase up to 1,025,000 shares of the Company’s common stock. The Company’s 2009 Stock Incentive Plan authorizes the grant of up to 425,000 shares and allows for the issuance of Stock Appreciation Rights, Restricted Stock, Stock Options, Non-stock Share Equivalents, Performance Shares or Performance Units. Both plans allow for the grant of incentive stock options and non-qualified stock options, and awards are generally granted with an exercise price equal to the estimated fair market value of the Company’s common stock at the date of grant. The maximum term of the options granted under the plans is ten years.

The Company has granted non-plan options to certain persons representing key business relationships to purchase up to an aggregate amount of 55,000 shares of the Company’s common stock at between $15.00 and $20.00 per share for ten years. These options are non-qualified and not part of either plan.

The Company estimates the fair value of each stock option award using a Black-Scholes-Merton valuation model which incorporates the assumptions noted in the following table. Expected volatilities are based on an index of southeastern United States publicly traded banks. The expected term for options granted is based on the short-cut method and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U. S. Treasury yield curve in effect at the time of grant.

	2014			2013
Expected volatility		19.25	%		18.50	%
Expected dividends		1.45	%		-	%
Expected term (in years)		8 years			7 years
Risk-free rate		2.33	%		1.39	%

The weighted average grant-date fair value of options granted during the three months ended March 31, 2014 and March 31, 2013 was $8.86 and $8.03, respectively.

The following table summarizes stock option activity during the three months ended March 31, 2014 and March 31, 2013:

					Weighted
			Weighted		Average
			Average		Remaining
			Exercise		Contractual		Aggregate
	Shares		Price		Term (years)		Intrinsic Value
							(In Thousands)
Three Months Ended March 31, 2014:
Outstanding at January 1, 2014		776,300	$	23.08		5.5	$	14,300
Granted		38,000		41.50		9.9		-
Exercised		(174,800)		15.62		2.8		4,523
Forfeited		-		-		-		-
Outstanding at March 31, 2014		639,500		26.21		6.1	$	9,777
Exercisable at March 31, 2014		243,744	$	15.99		3.4	$	6,217
Three Months Ended March 31, 2013:
Outstanding at January 1, 2013		816,500	$	20.87		5.8	$	9,905
Granted		25,000		33.00		10.0		-
Exercised		(9,000)		10.00		2.2		207
Forfeited		-		-		-		-
Outstanding at March 31, 2013		832,500		21.35		5.7	$	9,698
Exercisable at March 31, 2013		458,995	$	14.37		3.5	$	8,550

As of March 31, 2014, outstanding stock options include 55,000 options granted to non-employees of the Company. 20,000 of these stock options were granted to the Company’s advisory board in its Dothan, Alabama market in February 2009 and were fully vested as of March 31, 2014. 35,000 of these options were granted to the Company’s advisory board in its Mobile, Alabama and Pensacola, Florida markets in December 2013 and vest on their fifth anniversary.

As of March 31, 2014, there was $1,711,000 of total unrecognized compensation cost related to non-vested stock options. The cost is expected to be recognized on the straight-line method over the next 2.1 years.

Restricted Stock

The Company has issued 78,500 shares of restricted stock to certain employees. The value of restricted stock awards is determined to be the current value of the Company’s stock at the time of grant, and this total value will be recognized as compensation expense over the vesting period, which is five years from the date of grant. As of March 31, 2014, there was $1,299,000 of total unrecognized compensation expense. The expense is expected to be recognized evenly over the remaining 1.8 years of the restricted stock’s vesting period.

Stock Warrants

The Company granted warrants for 15,000 shares of common stock of the Company with an exercise price of $25 per share in the second quarter of 2009. These warrants were granted in connection with the issuance of the Company’s 8.25% Subordinated Note. All of these warrants were outstanding and fully vested as of March 31, 2014.

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SECURITIES

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

SECURITIES

NOTE 4 - SECURITIES

The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2014 and December 31, 2013 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Market
	Cost		Gain		Loss		Value
	(In Thousands)
March 31, 2014
Securities Available for Sale
U.S. Treasury and government sponsored agencies	$	42,846	$	632	$	(51)	$	43,427
Mortgage-backed securities		83,753		2,785		(62)		86,476
State and municipal securities		128,507		3,634		(488)		131,653
Corporate debt		15,758		196		(9)		15,945
Total	$	270,864	$	7,247	$	(610)	$	277,501
Securities Held to Maturity
Mortgage-backed securities	$	26,428	$	336	$	(1,083)	$	25,681
State and municipal securities		5,546		332		-		5,878
Total	$	31,974	$	668	$	(1,083)	$	31,559
December 31, 2013
Securities Available for Sale
U.S. Treasury and government sponsored agencies	$	31,641	$	674	$	(41)	$	32,274
Mortgage-backed securities		85,764		2,574		(98)		88,240
State and municipal securities		127,083		3,430		(682)		129,831
Corporate debt		15,738		163		(26)		15,875
Total	$	260,226	$	6,841	$	(847)	$	266,220
Securities Held to Maturity
Mortgage-backed securities	$	26,730	$	266	$	(1,422)	$	25,574
State and municipal securities		5,544		197		-		5,741
Total	$	32,274	$	463	$	(1,422)	$	31,315

The amortized cost and fair value of debt securities as of March 31, 2014 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories along with the other categories of debt securities.

	March 31, 2014
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Less than one year	$	3,891	$	3,871	$	-	$	-
One year to five years		108,817		111,350		-		-
Five years to ten years		73,615		74,969		-		-
More than ten years		788		835		5,546		5,878
Mortgage-backed securities		83,753		86,476		26,428		25,681
	$	270,864	$	277,501	$	31,974	$	31,559

We had no sales of available-for-sale debt securities during the first quarter of 2014. We sold one corporate debt security for total proceeds of $1.2 million and a gain of $123,000 during the first quarter of 2013.

All mortgage-backed securities are with government-sponsored enterprises (GSEs) such as Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Bank, and Federal Home Loan Mortgage Corporation.

The following table identifies, as of March 31, 2014 and December 31, 2013, the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. At March 31, 2014, 19 of the Company’s 675 debt securities had been in an unrealized loss position for 12 or more months. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost, which may be maturity; accordingly, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2014. Further, the Company believes any deterioration in value of its current investment securities is attributable to changes in market interest rates and not credit quality of the issuer.

	Less Than Twelve Months				Twelve Months or More				Total
	Gross				Gross				Gross
	Unrealized				Unrealized				Unrealized
	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
	(In Thousands)
March 31, 2014
U.S. Treasury and government sponsored agencies	$	(51)	$	12,589	$	-	$	-	$	(51)	$	12,589
Mortgage-backed securities		(621)		20,014		(524)		6,659		(1,145)		26,673
State and municipal securities		(419)		25,385		(69)		4,038		(488)		29,423
Corporate debt		(9)		2,991		-		-		(9)		2,991
Total	$	(1,100)	$	60,979	$	(593)	$	10,697	$	(1,693)	$	71,676
December 31, 2013:
U.S. Treasury and government sponsored agencies	$	(41)	$	5,854	$	-	$	-	$	(41)	$	5,854
Mortgage-backed securities		(852)		21,365		(668)		6,691		(1,520)		28,056
State and municipal securities		(607)		30,666		(75)		3,443		(682)		34,109
Corporate debt		(26)		5,958		-		-		(26)		5,958
Total	$	(1,526)	$	63,843	$	(743)	$	10,134	$	(2,269)	$	73,977

XML

LOANS

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

LOANS

NOTE 5 – LOANS

The following table details the Company’s loans at March 31, 2014 and December 31, 2013:

	March 31,			December 31,
	2014			2013
	(Dollars In Thousands)
Commercial, financial and agricultural	$	1,306,058		$	1,278,649
Real estate - construction		157,127			151,868
Real estate - mortgage:
Owner-occupied commercial		711,067			710,372
1-4 family mortgage		285,368			278,621
Other mortgage		428,391			391,396
Subtotal: Real estate - mortgage		1,424,826			1,380,389
Consumer		49,786			47,962
Total Loans		2,937,797			2,858,868
Less: Allowance for loan losses		(31,728)			(30,663)
Net Loans	$	2,906,069		$	2,828,205
Commercial, financial and agricultural		44.46	%		44.73	%
Real estate - construction		5.35	%		5.31	%
Real estate - mortgage:
Owner-occupied commercial		24.20	%		24.85	%
1-4 family mortgage		9.71	%		9.74	%
Other mortgage		14.58	%		13.69	%
Subtotal: Real estate - mortgage		48.49	%		48.28	%
Consumer		1.70	%		1.68	%
Total Loans		100.00	%		100.00	%

The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. The following table presents credit quality indicators for the loan loss portfolio segments and classes. These categories are utilized to develop the associated allowance for loan losses using historical losses adjusted for current economic conditions defined as follows:

· Pass – loans which are well protected by the current net worth and paying capacity of the obligor (or obligors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral.

· Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

· Substandard – loans that exhibit well-defined weakness or weaknesses that presently jeopardize debt repayment. These loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

· Doubtful – loans that have all the weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.

Loans by credit quality indicator as of March 31, 2014 and December 31, 2013 were as follows:

			Special
March 31, 2014	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,264,111	$	36,607	$	5,340	$	-	$	1,306,058
Real estate - construction		142,287		5,131		9,709		-		157,127
Real estate - mortgage:
Owner-occupied commercial		693,100		15,657		2,310		-		711,067
1-4 family mortgage		271,603		1,269		12,496		-		285,368
Other mortgage		414,818		8,077		5,496		-		428,391
Total real estate mortgage		1,379,521		25,003		20,302		-		1,424,826
Consumer		48,969		-		817		-		49,786
Total	$	2,834,888	$	66,741	$	36,168	$	-	$	2,937,797

			Special
December 31, 2013	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,238,109	$	34,883	$	5,657	$	-	$	1,278,649
Real estate - construction		139,239		3,392		9,237		-		151,868
Real estate - mortgage:
Owner-occupied commercial		696,687		11,545		2,140		-		710,372
1-4 family mortgage		265,019		1,253		12,349		-		278,621
Other mortgage		379,419		8,179		3,798		-		391,396
Total real estate mortgage		1,341,125		20,977		18,287		-		1,380,389
Consumer		47,243		3		716		-		47,962
Total	$	2,765,716	$	59,255	$	33,897	$	-	$	2,858,868

Loans by performance status as of March 31, 2014 and December 31, 2013 were as follows:

March 31, 2014	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,305,610	$	448	$	1,306,058
Real estate - construction		152,848		4,279		157,127
Real estate - mortgage:
Owner-occupied commercial		709,670		1,397		711,067
1-4 family mortgage		283,343		2,025		285,368
Other mortgage		428,148		243		428,391
Total real estate mortgage		1,421,161		3,665		1,424,826
Consumer		48,984		802		49,786
Total	$	2,928,603	$	9,194	$	2,937,797

December 31, 2013	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,276,935	$	1,714	$	1,278,649
Real estate - construction		148,118		3,750		151,868
Real estate - mortgage:
Owner-occupied commercial		708,937		1,435		710,372
1-4 family mortgage		276,725		1,896		278,621
Other mortgage		391,153		243		391,396
Total real estate mortgage		1,376,815		3,574		1,380,389
Consumer		47,264		698		47,962
Total	$	2,849,132	$	9,736	$	2,858,868

Loans by past due status as of March 31, 2014 and December 31, 2013 were as follows:

March 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	$	1,127	$	98	$	-	$	1,225	$	448	$	1,304,385	$	1,306,058
Real estate - construction		1,755		-		15		1,770		4,264		151,093		157,127
Real estate - mortgage:
Owner-occupied commercial		224		-		-		224		1,397		709,446		711,067
1-4 family mortgage		45		169		-		214		2,025		283,129		285,368
Other mortgage		522		-		-		522		243		427,626		428,391
Total real estate - mortgage		791		169		-		960		3,665		1,420,201		1,424,826
Consumer		16		53		95		164		707		48,915		49,786
Total	$	3,689	$	320	$	110	$	4,119	$	9,084	$	2,924,594	$	2,937,797

December 31, 2013	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	$	73	$	-	$	-	$	73	$	1,714	$	1,276,862	$	1,278,649
Real estate - construction		-		-		-		-		3,750		148,118		151,868
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		1,435		708,937		710,372
1-4 family mortgage		177		-		19		196		1,877		276,548		278,621
Other mortgage		-		-		-		-		243		391,153		391,396
Total real estate - mortgage		177		-		19		196		3,555		1,376,638		1,380,389
Consumer		89		97		96		282		602		47,078		47,962
Total	$	339	$	97	$	115	$	551	$	9,621	$	2,848,696	$	2,858,868

The allowance for loan losses is maintained at a level which, in management’s judgment, is adequate to absorb credit losses inherent in the loan portfolio. The amount of the allowance is based on management’s evaluation of the collectability of the loan portfolio, including the nature of the portfolio, credit concentrations, trends in historical loss experience, specific impaired loans, economic conditions, and other risks inherent in the portfolio. Allowances for impaired loans are generally determined based on collateral values or the present value of the estimated cash flows. The allowance is increased by a provision for loan losses, which is charged to expense, and reduced by charge-offs, net of recoveries. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the allowance for losses on loans. Such agencies may require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.

The methodology utilized for the calculation of the allowance for loan losses is divided into four distinct categories. Those categories include allowances for non-impaired loans (ASC 450), impaired loans (ASC 310), external qualitative factors, and internal qualitative factors. A description of each category of the allowance for loan loss methodology is listed below.

Non-Impaired Loans. Non-impaired loans are grouped into homogeneous loan pools by loan type and are the following: commercial and industrial, construction and development, commercial real estate, second lien home equity lines of credit, and all other loans. Each loan pool is stratified by internal risk rating and multiplied by a loss allocation percentage derived from the loan pool historical loss rate. The historical loss rate is based on an age weighted 5 year history of net charge-offs experienced by pool, with the most recent net charge-off experience given a greater weighting. This results in the expected loss rate per year, adjusted by a qualitative adjustment factor and a years-to-impairment factor, for each pool of loans to derive the total amount of allowance for non-impaired loans.

Impaired Loans. Loans are considered impaired when based on current information and events it is probable that the Bank will be unable to collect all amounts due according to the original terms of the loan agreement. The collection of all amounts due according to contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price or the fair value of the underlying collateral. The fair value of collateral, reduced by costs to sell on a discounted basis, is used if a loan is collateral-dependent. Fair value estimates for specifically impaired collateral-dependent loans are derived from appraised values based on the current market value or as is value of the property, normally from recently received and reviewed appraisals. Appraisals are obtained from certified and licensed appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property.  These appraisals are reviewed by our credit administration department, and values are adjusted downward to reflect anticipated disposition costs. Once this estimated net realizable value has been determined, the value used in the impairment assessment is updated for each impaired loan. As subsequent events dictate and estimated net realizable values decline, required reserves may be established or further adjustments recorded.

External Qualitative Factors . The determination of the portion of the allowance for loan losses relating to external qualitative factors is based on consideration of the following factors: gross domestic product growth rate, changes in prime rate, delinquency trends, peer delinquency trends, year over year loan growth and state unemployment rate trends. Data for the three most recent periods is utilized in the calculation for each external qualitative component. The factors have a consistent weighted methodology to calculate the amount of allowance due to external qualitative factors.

Internal Qualitative Factors . The determination of the portion of the allowance for loan losses relating to internal qualitative factors is based on the consideration of criteria which includes the following: number of extensions and deferrals, single pay and interest only loans, current financial information, credit concentrations and risk grade accuracy. A self-assessment for each of the criteria is made with a consistent weighted methodology used to calculate the amount of allowance required for internal qualitative factors.

 

The following table presents an analysis of the allowance for loan losses by portfolio segment as of March 31, 2014 and December 31, 2013, and changes in the allowance for loan losses for the three months ended March 31, 2014 and March 31, 2013. 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 -				Qualitative
	agricultural		construction		mortgage		Consumer		Factors		Total
	(In Thousands)
	Three Months Ended March 31, 2014
Allowance for loan losses:
Balance at December 31, 2013	$	11,170	$	5,809	$	7,495	$	855	$	5,334	$	30,663
Chargeoffs		(1,222)		(23)		(4)		(58)		-		(1,307)
Recoveries		45		8		4		1		-		58
Provision		987		264		642		153		268		2,314
Balance at March 31, 2014	$	10,980	$	6,058	$	8,137	$	951	$	5,602	$	31,728

	Three Months Ended March 31, 2013
Allowance for loan losses:
Balance at December 31, 2012	$	8,233	$	6,511	$	4,912	$	199	$	6,403	$	26,258
Chargeoffs		(887)		(1,990)		-		(1)		-		(2,878)
Recoveries		6		7		-		2		-		15
Provision		1,599		2,114		825		(36)		(218)		4,284
Balance at March 31, 2013	$	8,951	$	6,642	$	5,737	$	164	$	6,185	$	27,679

	As of March 31, 2014
Allowance for loan losses:
Individually Evaluated for Impairment	$	1,422	$	2,184	$	2,703	$	802	$	-	$	7,111
Collectively Evaluated for Impairment		9,558		3,874		5,434		149		5,602		24,617
Loans:
Ending Balance	$	1,306,058	$	157,127	$	1,424,826	$	49,786		-	$	2,937,797
Individually Tested for Impairment		3,450		9,709		20,246		802		-		34,207
Collectively Evaluated for Impairment		1,302,608		147,418		1,404,580		48,984		-		2,903,590

	As of December 31, 2013
Allowance for loan losses:
Individually Evaluated for Impairment	$	1,992	$	1,597	$	1,982	$	699	$	-	$	6,270
Collectively Evaluated for Impairment		9,178		4,212		5,513		156		5,334		24,393
Loans:
Ending Balance	$	1,278,649	$	151,868	$	1,380,389	$	47,962		-	$	2,858,868
Individually Evaluated for Impairment		3,827		9,238		18,202		699		-		31,966
Collectively Evaluated for Impairment		1,274,822		142,630		1,362,187		47,263		-		2,826,902

The following table presents details of the Company’s impaired loans as of March 31, 2014 and December 31, 2013, respectively. Loans which have been fully charged off do not appear in the table.

	March 31, 2014
							For the three months ended March 31, 2014
									Interest
			Unpaid				Average		Income
	Recorded		Principal		Related		Recorded		Recognized
	Investment		Balance		Allowance		Investment		in Period
	(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,161	$	1,654	$	-	$	1,414	$	14
Real estate - construction		2,214		2,652		-		1,964		11
Real estate - mortgage:
Owner-occupied commercial		759		759		-		767		2
1-4 family mortgage		1,198		1,198		-		1,198		15
Other mortgage		2,306		2,306		-		2,309		35
Total real estate - mortgage		4,263		4,263		-		4,274		52
Consumer		-		-		-		-		-
Total with no allowance recorded		7,638		8,569		-		7,652		77
With an allowance recorded:
Commercial, financial and agricultural		2,289		2,429		1,422		2,312		31
Real estate - construction		7,495		7,976		2,184		7,337		45
Real estate - mortgage:
Owner-occupied commercial		1,496		1,496		449		1,520		14
1-4 family mortgage		11,297		11,297		1,546		11,297		84
Other mortgage		3,190		3,288		708		3,194		37
Total real estate - mortgage		15,983		16,081		2,703		16,011		135
Consumer		802		802		802		808		-
Total with allowance recorded		26,569		27,288		7,111		26,468		211
Total Impaired Loans:
Commercial, financial and agricultural		3,450		4,083		1,422		3,726		45
Real estate - construction		9,709		10,628		2,184		9,301		56
Real estate - mortgage:
Owner-occupied commercial		2,255		2,255		449		2,287		16
1-4 family mortgage		12,495		12,495		1,546		12,495		99
Other mortgage		5,496		5,594		708		5,503		72
Total real estate - mortgage		20,246		20,344		2,703		20,285		187
Consumer		802		802		802		808		-
Total impaired loans	$	34,207	$	35,857	$	7,111	$	34,120	$	288

	December 31, 2013
									Interest
			Unpaid				Average		Income
	Recorded		Principal		Related		Recorded		Recognized
	Investment		Balance		Allowance		Investment		In Period
			(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural	$	1,210	$	1,210	$	-	$	1,196	$	63
Real estate - construction		1,967		2,405		-		1,363		32
Real estate - mortgage:
Owner-occupied commercial		577		577		-		603		32
1-4 family mortgage		1,198		1,198		-		1,200		55
Other mortgage		2,311		2,311		-		1,901		123
Total real estate - mortgage		4,086		4,086		-		3,704		210
Consumer		-		-		-		-		-
Total with no allowance recorded		7,263		7,701		-		6,263		305
With an allowance recorded:
Commercial, financial and agricultural		2,618		2,958		1,992		2,844		98
Real estate - construction		7,270		7,750		1,597		6,564		200
Real estate – mortgage:
Owner-occupied commercial		1,509		1,509		620		1,573		38
1-4 family mortgage		11,120		11,120		1,210		10,743		342
Other mortgage		1,487		1,586		152		1,873		96
Total real estate - mortgage		14,116		14,215		1,982		14,189		476
Consumer		699		699		699		790		28
Total with allowance recorded		24,703		25,622		6,270		24,387		802
Total Impaired Loans:
Commercial, financial and agricultural		3,828		4,168		1,992		4,040		161
Real estate - construction		9,237		10,155		1,597		7,927		232
Real estate – mortgage:
Owner-occupied commercial		2,086		2,086		620		2,176		70
1-4 family mortgage		12,318		12,318		1,210		11,943		397
Other mortgage		3,798		3,897		152		3,774		219
Total real estate - mortgage		18,202		18,301		1,982		17,893		686
Consumer		699		699		699		790		28
Total impaired loans	$	31,966	$	33,323	$	6,270	$	30,650	$	1,107

Troubled Debt Restructurings (“TDR”) at March 31, 2014, December 31, 2013 and March 31, 2013 totaled $13.5 million, $14.2 million and $12.3 million, respectively. At March 31, 2014, the Company had a related allowance for loan losses of $2.1 million allocated to these TDRs, compared to $2.4 million at December 31, 2013 and $1.4 million at March 31, 2013. The Company’s TDRs have resulted primarily from allowing the borrower to pay interest-only for an extended period of time, or through interest rate reductions rather than from debt forgiveness. There are ten TDR loans to one borrower in the amount of $4.1 million in payment default status at March 31, 2014. All other loans classified as TDRs as of March 31, 2014 are performing as agreed under the terms of their restructured plans. The following table presents an analysis of TDRs as of March 31, 2014 and March 31, 2013.

	March 31, 2014						March 31, 2013
			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		3	$	1,049	$	1,049		2	$	1,121	$	1,121
Real estate - construction		7		2,078		2,078		15		3,213		3,213
Real estate - mortgage:
Owner-occupied commercial		-		-		-		6		5,907		5,907
1-4 family mortgage		4		10,073		10,073		5		1,709		1,709
Other mortgage		1		278		278		1		301		301
Total real estate mortgage		5		10,351		10,351		12		7,917		7,917
Consumer		-		-		-		-		-		-
		15	$	13,478	$	13,478		29	$	12,251	$	12,251

	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
Troubled Debt Restructurings That Subsequently Defaulted Commercial, financial and agricultural		1	$	141		-	$	-
Real estate - construction		7		2,078		-		-
Real estate - mortgage:
Owner-occupied commercial		-		-		3		2,786
1-4 family mortgage		2		1,848		-		-
Other mortgage		-		-		-		-
Total real estate - mortgage		2		1,848		3		2,786
Consumer		-		-		-		-
		10	$	4,067		3	$	2,786

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DERIVATIVES

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

NOTE 7 - DERIVATIVES

The Company has entered into agreements with secondary market investors to deliver loans on a “best efforts delivery” basis. When a rate is committed to a borrower, it is based on the best price that day and locked with the investor for the customer for a 30-day period. In the event the loan is not delivered to the investor, the Company has no risk or exposure with the investor. The interest rate lock commitments related to loans that are originated for later sale are classified as derivatives. The fair values of the Company’s rate lock commitments to customers as of March 31, 2014 and December 31, 2013 were not material.

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LOANS (Analysis of Allowance For Loan Losses By Portfolio Segment) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Allowance For Loan Losses
Balance, beginning of year	$ 30,663	$ 26,258
Chargeoffs	(1,307)	(2,878)
Recoveries	58	15
Provision	2,314	4,284
Balance, end of year	31,728	27,679
Individually Evaluated for Impairment	7,111		6,270
Collectively Evaluated for Impairment	24,617		24,393
Ending Balance	2,937,797		2,858,868
Individually Evaluated for Impairment	34,207		31,966
Collectively Evaluated for Impairment	2,903,590		2,826,902
Commercial Financial and Agricultural Financing Receivable [Member]
Allowance For Loan Losses
Balance, beginning of year	11,170	8,233
Chargeoffs	(1,222)	(887)
Recoveries	45	6
Provision	987	1,599
Balance, end of year	10,980	8,951
Individually Evaluated for Impairment	1,422		1,992
Collectively Evaluated for Impairment	9,558		9,178
Ending Balance	1,306,058		1,278,649
Individually Evaluated for Impairment	3,450		3,827
Collectively Evaluated for Impairment	1,302,608		1,274,822
Commercial Real Estate Construction Financing Receivable [Member]
Allowance For Loan Losses
Balance, beginning of year	5,809	6,511
Chargeoffs	(23)	(1,990)
Recoveries	8	7
Provision	264	2,114
Balance, end of year	6,058	6,642
Individually Evaluated for Impairment	2,184		1,597
Collectively Evaluated for Impairment	3,874		4,212
Ending Balance	157,127		151,868
Individually Evaluated for Impairment	9,709		9,238
Collectively Evaluated for Impairment	147,418		142,630
Residential Real Estate Mortgage Loans [Member]
Allowance For Loan Losses
Balance, beginning of year	7,495	4,912
Chargeoffs	(4)	0
Recoveries	4	0
Provision	642	825
Balance, end of year	8,137	5,737
Individually Evaluated for Impairment	2,703		1,982
Collectively Evaluated for Impairment	5,434		5,513
Ending Balance	1,424,826		1,380,389
Individually Evaluated for Impairment	20,246		18,202
Collectively Evaluated for Impairment	1,404,580		1,362,187
Consumer Portfolio Segment [Member]
Allowance For Loan Losses
Balance, beginning of year	855	199
Chargeoffs	(58)	(1)
Recoveries	1	2
Provision	153	(36)
Balance, end of year	951	164
Individually Evaluated for Impairment	802		699
Collectively Evaluated for Impairment	149		156
Ending Balance	49,786		47,962
Individually Evaluated for Impairment	802		699
Collectively Evaluated for Impairment	48,984		47,263
Qualitative Factors (Member)
Allowance For Loan Losses
Balance, beginning of year	5,334	6,403
Chargeoffs	0	0
Recoveries	0	0
Provision	268	(218)
Balance, end of year	5,602	6,185
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	5,602		5,334
Ending Balance	0		0
Individually Evaluated for Impairment	0		0
Collectively Evaluated for Impairment	$ 0		$ 0

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SECURITIES (Tables)

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Fair Value of Available for Sale And Held to Maturity Securities

The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2014 and December 31, 2013 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Market
	Cost		Gain		Loss		Value
	(In Thousands)
March 31, 2014
Securities Available for Sale
U.S. Treasury and government sponsored agencies	$	42,846	$	632	$	(51)	$	43,427
Mortgage-backed securities		83,753		2,785		(62)		86,476
State and municipal securities		128,507		3,634		(488)		131,653
Corporate debt		15,758		196		(9)		15,945
Total	$	270,864	$	7,247	$	(610)	$	277,501
Securities Held to Maturity
Mortgage-backed securities	$	26,428	$	336	$	(1,083)	$	25,681
State and municipal securities		5,546		332		-		5,878
Total	$	31,974	$	668	$	(1,083)	$	31,559
December 31, 2013
Securities Available for Sale
U.S. Treasury and government sponsored agencies	$	31,641	$	674	$	(41)	$	32,274
Mortgage-backed securities		85,764		2,574		(98)		88,240
State and municipal securities		127,083		3,430		(682)		129,831
Corporate debt		15,738		163		(26)		15,875
Total	$	260,226	$	6,841	$	(847)	$	266,220
Securities Held to Maturity
Mortgage-backed securities	$	26,730	$	266	$	(1,422)	$	25,574
State and municipal securities		5,544		197		-		5,741
Total	$	32,274	$	463	$	(1,422)	$	31,315

Amortized Cost and Fair Value of Securities

The amortized cost and fair value of debt securities as of March 31, 2014 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories along with the other categories of debt securities.

	March 31, 2014
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Less than one year	$	3,891	$	3,871	$	-	$	-
One year to five years		108,817		111,350		-		-
Five years to ten years		73,615		74,969		-		-
More than ten years		788		835		5,546		5,878
Mortgage-backed securities		83,753		86,476		26,428		25,681
	$	270,864	$	277,501	$	31,974	$	31,559

Investment Securities Continuous Unrealized Loss Position

	Less Than Twelve Months				Twelve Months or More				Total
	Gross				Gross				Gross
	Unrealized				Unrealized				Unrealized
	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
	(In Thousands)
March 31, 2014
U.S. Treasury and government sponsored agencies	$	(51)	$	12,589	$	-	$	-	$	(51)	$	12,589
Mortgage-backed securities		(621)		20,014		(524)		6,659		(1,145)		26,673
State and municipal securities		(419)		25,385		(69)		4,038		(488)		29,423
Corporate debt		(9)		2,991		-		-		(9)		2,991
Total	$	(1,100)	$	60,979	$	(593)	$	10,697	$	(1,693)	$	71,676
December 31, 2013:
U.S. Treasury and government sponsored agencies	$	(41)	$	5,854	$	-	$	-	$	(41)	$	5,854
Mortgage-backed securities		(852)		21,365		(668)		6,691		(1,520)		28,056
State and municipal securities		(607)		30,666		(75)		3,443		(682)		34,109
Corporate debt		(26)		5,958		-		-		(26)		5,958
Total	$	(1,526)	$	63,843	$	(743)	$	10,134	$	(2,269)	$	73,977

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SECURITIES (Amortized Cost And Fair Value Of Available For Sale And Held To Maturity Securities) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Securities Available for Sale
Amortized Cost	$ 270,864	$ 260,226
Gross Unrealized Gain	7,247	6,841
Gross Unrealized Loss	(610)	(847)
Market Value	277,501	266,220
Securities Held to Maturity
Amortized Cost	31,974	32,274
Gross Unrealized Gain	668	463
Gross Unrealized Loss	(1,083)	(1,422)
Market Value	31,559	31,315
U.S. Treasury and Government Sponsored Agencies [Member]
Securities Available for Sale
Amortized Cost	42,846	31,641
Gross Unrealized Gain	632	674
Gross Unrealized Loss	(51)	(41)
Market Value	43,427	32,274
Mortgage-Backed Securities [Member]
Securities Available for Sale
Amortized Cost	83,753	85,764
Gross Unrealized Gain	2,785	2,574
Gross Unrealized Loss	(62)	(98)
Market Value	86,476	88,240
Securities Held to Maturity
Amortized Cost	26,428	26,730
Gross Unrealized Gain	336	266
Gross Unrealized Loss	(1,083)	(1,422)
Market Value	25,681	25,574
State and Municipal Securities [Member]
Securities Available for Sale
Amortized Cost	128,507	127,083
Gross Unrealized Gain	3,634	3,430
Gross Unrealized Loss	(488)	(682)
Market Value	131,653	129,831
Securities Held to Maturity
Amortized Cost	5,546	5,544
Gross Unrealized Gain	332	197
Gross Unrealized Loss	0	0
Market Value	5,878	5,741
Corporate Debt [Member]
Securities Available for Sale
Amortized Cost	15,758	15,738
Gross Unrealized Gain	196	163
Gross Unrealized Loss	(9)	(26)
Market Value	$ 15,945	$ 15,875

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FAIR VALUE MEASUREMENT (Financial Assets And Financial Liabilities Carried At Fair Value On A Recurring Basis) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 277,501	$ 266,220
Fair Value Measurements Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	277,501	266,220
Fair Value Measurements Recurring [Member] | Us Treasury and Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	43,427	32,274
Fair Value Measurements Recurring [Member] | Collateralized Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	86,476	88,240
Fair Value Measurements Recurring [Member] | Us States and Political Subdivisions Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	131,653	129,831
Fair Value Measurements Recurring [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	15,945	15,875
Fair Value Measurements Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Fair Value Measurements Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Us Treasury and Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Fair Value Measurements Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Fair Value Measurements Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Us States and Political Subdivisions Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Fair Value Measurements Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	277,501	266,220
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 2 [Member] | Us Treasury and Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	43,427	32,274
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 2 [Member] | Collateralized Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	86,476	88,240
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 2 [Member] | Us States and Political Subdivisions Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	131,653	129,831
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	15,945	15,875
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 3 [Member] | Us Treasury and Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 3 [Member] | Collateralized Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 3 [Member] | Us States and Political Subdivisions Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Fair Value Measurements Recurring [Member] | Fair Value Inputs Level 3 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net income	$ 11,758	$ 9,251
Other comprehensive income (loss), net of tax:
Unrealized holding (losses) gains arising during period from securities available for sale, net of tax of $225 and $(154) for 2014 and 2013, respectively	418	(287)
Reclassification adjustment for net gain on sale of securities in net income, net of tax of $43	0	(80)
Other comprehensive income (loss), net of tax	418	(367)
Comprehensive income	12,176	8,884
Comprehensive income attributable to noncontrolling interest	(2)	0
Comprehensive income attributable to Servisfirst Bancshares, Inc.	$ 12,174	$ 8,884

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GENERAL

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

NOTE 1 - GENERAL

The accompanying consolidated financial statements in this report have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, including Regulation S-X and the instructions for Form 10-Q, and have not been audited. These consolidated financial statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments necessary to present fairly the consolidated financial position and the consolidated results of operations for the interim periods have been made. All such adjustments are of a normal nature. The consolidated results of operations are not necessarily indicative of the consolidated results of operations which ServisFirst Bancshares, Inc. (the “Company”) may achieve for future interim periods or the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Form 10-K/A for the year ended December 31, 2013.

All reported amounts are in thousands except share and per share data.

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SECURITIES (Amortized Cost And Fair Value Of Contractual Securities) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Available-for-sale
Amortized Cost	$ 270,864	$ 260,226
Fair Value	277,501	266,220
Held-to-maturity
Amortized Cost	31,974	32,274
Fair Value	31,559	31,315
Less than one year [Member]
Available-for-sale
Amortized Cost	3,891
Fair Value	3,871
Held-to-maturity
Amortized Cost	0
Fair Value	0
One year to five years [Member]
Available-for-sale
Amortized Cost	108,817
Fair Value	111,350
Held-to-maturity
Amortized Cost	0
Fair Value	0
Five years to ten years [Member]
Available-for-sale
Amortized Cost	73,615
Fair Value	74,969
Held-to-maturity
Amortized Cost	0
Fair Value	0
More than Ten years [Member]
Available-for-sale
Amortized Cost	788
Fair Value	835
Held-to-maturity
Amortized Cost	5,546
Fair Value	5,878
Mortgage-backed securities [Member]
Available-for-sale
Amortized Cost	83,753
Fair Value	86,476
Held-to-maturity
Amortized Cost	26,428
Fair Value	$ 25,681

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EMPLOYEE AND DIRECTOR BENEFITS (Assumptions Used To Estimates Fair Value Of Stock Option Award Using Black Scholes Merton Valuation Model) (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	19.25%	18.50%
Expected dividends	1.45%	0.00%
Expected term (in years)	8 years	7 years
Risk-free rate	2.33%	1.39%

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EARNINGS PER COMMON SHARE (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Basic And Diluted Earning Per Share

Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock options and warrants.

	Three Months Ended March 31,
	2014		2013
	(In Thousands, Except Shares and Per Share Data)
Earnings per common share
Weighted average common shares outstanding		7,399,992		6,341,605
Net income available to common stockholders	$	11,656	$	9,151
Basic earnings per common share	$	1.58	$	1.44
Weighted average common shares outstanding		7,399,992		6,341,605
Dilutive effects of assumed conversions and exercise of stock options and warrants		261,898		734,900
Weighted average common and dilutive potential common shares outstanding		7,661,890		7,076,505
Net income, available to common stockholders	$	11,656	$	9,151
Effect of interest expense on convertible debt, net of tax and discretionary expenditures related to conversion	$	-	$	132
Net income available to common stockholders, adjusted for effect of debt conversion	$	11,656	$	9,283
Diluted earnings per common share	$	1.52	$	1.31