Kroll Bond Rating Agency Assigns BBB+/K2 Senior Long-Term and Short-Term Debt Ratings to ServisFirst Bancshares, Inc.

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB+, a subordinated debt rating of BBB, and short-term rating of K2 to ServisFirst Bancshares, Inc. (NASDAQ: SFBS) (“ServisFirst” or “the Company”), a bank holding company headquartered in Birmingham, Alabama. In addition, KBRA has assigned a senior deposit rating of A- and short-term rating of K2 to ServisFirst Bank (“the Bank”). The outlook on all ratings is stable.

Ratings

Entity

      Type       Rating       Outlook
ServisFirst Bancshares, Inc.       Senior Unsecured Debt       BBB+       Stable
RSSD ID: 3635319       Subordinated Debt       BBB       Stable
        Short-Term       K2        
                         
ServisFirst Bank       Senior Deposit       A-       Stable
FDIC Certificate #: 57993       Short-Term       K2        
                 

The ratings are supported by SFBS’s sound financial fundamentals as indicated by the Company’s established market share, experienced management team, exceptional cost culture, as well as positive asset quality and earnings metrics. These strengths are balanced by the Company’s high concentrations in commercial and industrial (C&I) and commercial real estate (CRE) lending, compact geographic footprint, and elevated nonperforming assets during the crisis years. Concerns are alleviated by management’s strong track record in C&I lending and relatively favorable asset quality during the financial crisis. The bulk of CRE loans are owner-occupied by C&I customers.

The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on January 28, 2015.

To view the report, please use the following link: www.krollbondratings.com/show_report/2134

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Leah Hallfors, 240-394-4147
Associate
lhallfors@kbra.com
or
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Joe Scott, 646-731-2438
Senior Director
jscott@kbra.com

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Leah Hallfors, 240-394-4147
Associate
lhallfors@kbra.com
or
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Joe Scott, 646-731-2438
Senior Director
jscott@kbra.com