ServisFirst Bancshares (SFBS) Risk Analysis

Our common stock is not a bank deposit and, therefore, is not insured against loss by the FDIC, any deposit insurance fund or by any other public or private entity. Investment in our common stock is inherently risky for the reasons described in this "Risk Factors" section and is subject to the same market forces that affect the price of common stock in any company. As a result, an investor may lose some or all of their investment in our common stock.

Certain provisions of our certificate of incorporation, as amended (or our "charter"), and bylaws, as amended, and corporate and federal banking laws, could make it more difficult for a third party to acquire control of our organization, even if those events were perceived by many of our stockholders as beneficial to their interests. For example, Alabama and Delaware law make it difficult for anyone to purchase the bank or us without approval of our Board of Directors. Thus, your ability to realize the potential benefits of any sale by us may be limited, even if such sale would represent a greater value for stockholders than our continued independent operation. These provisions, and the corporate and banking laws and regulations applicable to us: - provide that special meetings of stockholders may be called at any time only by the Chairman of our Board of Directors, by the President or by order of the Board of Directors;   - enable our Board of Directors to issue preferred stock up to the authorized amount, with such preferences, limitations and relative rights, including voting rights, as may be determined from time to time by the Board of Directors;   - enable our Board of Directors to increase the number of persons serving as directors and to fill the vacancies created as a result of the increase by a majority vote of the directors present at the meeting;   - enable our Board of Directors to amend our bylaws without stockholder approval;   - do not provide for cumulative voting rights (therefore allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose); and   - require approval of federal and state regulatory agencies. These provisions may discourage potential acquisition proposals and could delay or prevent a change in control, including under circumstances in which our stockholders might otherwise receive a premium over the market price of our shares.

There are many factors that may impact the market price and trading volume of our common stock, including, without limitation: - actual or anticipated fluctuations in our operating results, financial condition or asset quality;   - changes in our dividends;   - changes in economic or business conditions;   - the effects of, and changes in, trade, monetary and fiscal policies, including the interest rate policies of the Federal Reserve;- publication of research reports about us, our competitors, or the financial services industry generally, or changes in, or failure to meet, securities analysts' estimates of our financial and operating performance, or lack of research reports by industry analysts or ceasing of coverage;   - operating and stock price performance of companies that investors deemed comparable to us;   - future issuances of our common stock or other securities;   - additions to or departures of key personnel;   - proposed or adopted changes in laws, regulations or policies affecting us;   - perceptions in the marketplace regarding our competitors and/or us;   - significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving our competitors or us;   - other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services; and   - other news, announcements or disclosures (whether by us or others) related to us, our competitors, our core market or the financial services industry. Any of these events may materially and adversely affect the market price of our common stock, which could make it difficult to sell your shares at the volume, prices and times desired.