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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported)     January 18, 2024          

 

  Southern First Bancshares, Inc.  
  (Exact name of registrant as specified in its charter)  
                South Carolina                
  (State or other jurisdiction of incorporation)  
                000-27719                            58-2459561         
(Commission File Number) (IRS Employer Identification No.)
 
6 Verdae Boulevard, Greenville, SC                         29607                   
(Address of principal executive offices) (Zip Code)
                     (864) 679-9000                  
  (Registrant's telephone number, including area code)  
     
      100 Verdae Boulevard, Suite 100, Greenville, SC       
  (Former name or former address, if changed since last report)  

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of

the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock SFST The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

ITEM 2.02.   Results of Operations and Financial Condition.

On January 18, 2024, Southern First Bancshares, Inc., holding company for Southern First Bank, issued a press release announcing its financial results for the period ended December 31, 2023.  The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

ITEM 7.01 Regulation FD Disclosure.

A copy of a slide presentation also highlighting Southern First Bancshares, Inc. financial results for the period ended December 31, 2023 is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The slide presentation also will be available on our website, www.southernfirst.com, under the “Investor Relations” section.

ITEM 9.01.   Financial Statements and Exhibits.

(d) Exhibits The following exhibit index lists the exhibits that are either filed or furnished with the Current Report on Form 8-K.

EXHIBIT INDEX

Exhibit No. Description
   
99.1 Earnings Press Release for period ended December 31, 2023.
99.2 Slide Presentation.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
 

 

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 hereunto duly authorized.

    SOUTHERN FIRST BANCSHARES, INC.
     
    By: /s/ D. Andrew Borrmann
    Name: D. Andrew Borrmann
    Title: Chief Financial Officer

January 18, 2024

 

Exhibit 99.1

 

Southern First Reports Results for 2023

Greenville, South Carolina, January 18, 2024 – Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three and twelve months ended December 31, 2023.

“We are pleased with our fourth quarter results as we saw further growth in book value, stability in net interest margin and strong credit quality,” stated Art Seaver, the Company’s Chief Executive Officer. “We are beginning 2024 with excellent momentum and a proven ability to grow organic and high quality client relationships in every market we serve.”

2023 Fourth Quarter Highlights

·Net income was $4.2 million and diluted earnings per common share were $0.51 for Q4 2023
·Book value per common share increased to $38.63 at Q4 2023, or 5%, over Q4 2022
·Total loans increased 5% (annualized) to $3.6 billion at Q4 2023, compared to Q3 2023 and increased 10%, from $3.3 billion at Q4 2022
·Credit quality remains strong with nonperforming assets to total assets of 0.10% and past due loans to total loans of 0.37% at Q4 2023
·Total deposits increased to $3.4 billion at Q4 2023, compared to $3.3 billion at Q3 2023 and increased 8% from Q4 2022
·Net interest margin was 1.92% for Q4 2023, compared to 1.97% for Q3 2023 and 2.88% for Q4 2022
    Quarter Ended
    December 31 September 30 June 30 March 31 December 31
    2023 2023 2023 2023 2022
Earnings ($ in thousands, except per share data):            
Net income available to common shareholders $ 4,167 4,098 2,458 2,703 5,492
Earnings per common share, diluted   0.51 0.51 0.31 0.33 0.68
Total revenue(1)   21,390 22,094 21,561 22,468 25,826
Net interest margin (tax-equivalent)(2)   1.92% 1.97% 2.05% 2.36% 2.88%
Return on average assets(3)   0.40% 0.40% 0.26% 0.30% 0.63%
Return on average equity(3)   5.39% 5.35% 3.27% 3.67% 7.44%
Efficiency ratio(4)   79.61% 78.31% 80.67% 76.12% 63.55%
Noninterest expense to average assets (3)   1.64% 1.69% 1.82% 1.89% 1.87%
Balance Sheet ($ in thousands):            
Total loans(5) $ 3,602,627 3,553,632 3,537,616 3,417,945 3,273,363
Total deposits   3,379,564 3,347,771 3,433,018 3,426,774 3,133,864
Core deposits(6)   2,811,499 2,866,574 2,880,507 2,946,567 2,759,112
Total assets   4,055,789 4,019,957 4,002,107 3,938,140 3,691,981
Book value per common share   38.63 37.57 37.42 37.16 36.76
Loans to deposits   106.60% 106.15% 103.05% 99.74% 104.45%
Holding Company Capital Ratios(7):            
Total risk-based capital ratio   12.56% 12.56% 12.40% 12.67% 12.91%
Tier 1 risk-based capital ratio   10.59% 10.58% 10.42% 10.66% 10.88%
Leverage ratio   8.14% 8.17% 8.48% 8.80% 9.17%
Common equity tier 1 ratio(8)   10.18% 10.17% 10.00% 10.23% 10.44%
Tangible common equity(9)   7.70% 7.56% 7.53% 7.60% 7.98%
Asset Quality Ratios:            
Nonperforming assets/ total assets   0.10% 0.11% 0.08% 0.12% 0.07%
Classified assets/tier one capital plus allowance for credit losses   4.25% 4.72% 4.68% 5.10% 4.71%
Loans 30 days or more past due/ loans(5)   0.37% 0.13% 0.07% 0.11% 0.11%
Net charge-offs (recoveries)/average loans(5) (YTD annualized)   0.00% 0.01% 0.03% 0.01% (0.05%)
Allowance for credit losses/loans(5)   1.13% 1.16% 1.16% 1.18% 1.18%
Allowance for credit losses/nonaccrual loans   1,026.58% 953.25% 1,363.11% 854.33% 1,470.74%

[Footnotes to table located on page 6]

1 

 

income statements – Unaudited

         
    Quarter Ended   Twelve Months Ended
    Dec 31 Sept 30 Jun 30 Mar 31 Dec 31   December 31
(in thousands, except per share data)   2023 2023 2023 2023 2022   2023 2022
Interest income                  
Loans $ 44,758 43,542 41,089 36,748 33,939   166,137 114,233
Investment securities   1,674 1,470 706 613 562   4,463 1,990
Federal funds sold   2,703 2,435 891 969 525   6,998 1,439
Total interest income   49,135 47,447 42,686 38,330 35,026   177,598 117,662
Interest expense                  
Deposits   27,127 25,130 25,937 17,179 10,329   91,373 18,102
Borrowings   2,948 2,972 1,924 727 578   8,571 1,939
Total interest expense   30,075 28,102 23,861 17,906 10,907   99,944 20,041
Net interest income   19,060 19,345 18,825 20,424 24,119   77,654 97,621
Provision (reversal) for credit losses   (975) (500) 910 1,825 2,325   1,260 6,155
Net interest income after provision for credit losses   20,035 19,845 17,915 18,599 21,794   76,394 91,466
Noninterest income                  
Mortgage banking income   868 1,208 1,337 622 291   4,036 4,198
Service fees on deposit accounts   371 356 331 325 187   1,382 782
ATM and debit card income   565 588 536 555 575   2,245 2,225
Income from bank owned life insurance   361 349 338 332 344   1,379 1,289
Loss on disposal of fixed assets   - - - - -   - (394)
Other income   165 248 194 210 310   818 1,480
Total noninterest income   2,330 2,749 2,736 2,044 1,707   9,860 9,580
Noninterest expense                  
Compensation and benefits   9,401 10,231 10,287 10,356 9,576   40,275 38,790
Occupancy   2,718 2,562 2,518 2,457 2,666   10,255 9,105
Other real estate owned expenses   - - - - -   - -
Outside service and data processing costs   2,000 1,744 1,705 1,629 1,521   7,078 6,112
Insurance   937 1,243 897 689 551   3,766 1,686
Professional fees   581 504 751 660 788   2,496 2,635
Marketing   364 293 335 366 282   1,357 1,216
Other   1,027 725 900 947 1,029   3,600 3,389
Total noninterest expenses   17,028 17,302 17,393 17,104 16,413   68,827 62,933
Income before provision for income taxes   5,337 5,293 3,258 3,539 7,088   17,427 38,113
Income tax expense   1,170 1,195 800 836 1,596   4,001 8,998
Net income available to common shareholders $ 4,167 4,098 2,458 2,703 5,492   13,426 29,115
                   
Earnings per common share – Basic $ 0.51 0.51 0.31 0.34 0.69   1.67 3.66
Earnings per common share – Diluted   0.51 0.51 0.31 0.33 0.68   1.66 3.61
Basic weighted average common shares   8,056 8,053 8,051 8,026 7,971   8,047 7,958
Diluted weighted average common shares    8,080 8,072 8,069 8,092  8,071   8,078 8,072

[Footnotes to table located on page 6]

Net income for the fourth quarter of 2023 was $4.2 million, or $0.51 per diluted share, a $69 thousand increase from the third quarter of 2023 and a $1.3 million decrease from the fourth quarter of 2022. Net interest income decreased $285 thousand during the fourth quarter of 2023, compared to the third quarter of 2023, and decreased $5.1 million, compared to the fourth quarter of 2022. The decrease in net interest income from the prior quarter and prior year was primarily driven by an increase in interest expense on deposit accounts as deposit costs continued to reprice in relation to the Federal Reserve’s 525-basis point interest rate hikes over the past two years.

There was a reversal of the provision for credit losses of $975 thousand for the fourth quarter of 2023, compared to a reversal of $500 thousand during the third quarter of 2023 and a provision of $2.3 million during the fourth quarter of 2022. The provision reversal during the fourth quarter of 2023 includes a $640 thousand reversal of the provision for credit losses and a $335 thousand reversal of the reserve for unfunded commitments. The reversal of the provision for credit losses was driven by lower expected loss rates, while the reversal of the reserve for unfunded commitments was driven by a decrease in the balance of unfunded commitments at December 31, 2023, compared to the previous quarter and year.

2 

 

Noninterest income was $2.3 million for the fourth quarter of 2023, compared to $2.7 million for the third quarter of 2023, and $1.7 million for the fourth quarter of 2022. Mortgage banking income continues to be the largest component of our noninterest income at $868 thousand for the fourth quarter of 2023, $1.2 million for the third quarter of 2023, and $291 thousand for the fourth quarter of 2022.

Noninterest expense for the fourth quarter of 2023 was $17.0 million, a $274 thousand decrease from the third quarter of 2023, and a $615 thousand increase from the fourth quarter of 2022. The decrease in noninterest expense from the previous quarter was driven by a decrease in compensation and benefits expense, while the increase from the prior year related primarily to increases in outside service and data processing costs and insurance expenses. The decrease in compensation and benefits expenses during the current quarter was due primarily to lower bonus and commissions expenses, combined with a decrease in various benefit-related expenses. In addition, the increase in outside service and data processing costs from the prior quarter and prior year was driven by an increase in software licensing and maintenance costs, while insurance costs increased over the prior year due to higher FDIC insurance premiums.

Our effective tax rate was 21.9% for the fourth quarter of 2023, 22.6% for the third quarter of 2023, and 22.5% for the fourth quarter of 2022. The lower tax rate in the fourth quarter of 2023 as compared to the prior quarter and prior year relates primarily to the effect of equity compensation transactions and return to provision differences on our tax rate during the quarter.

Net interest income and margin - Unaudited

     
    For the Three Months Ended
  December 31, 2023 September 30, 2023 December 31,2022
(dollars in thousands) Average
Balance
Income/
Expense
Yield/
Rate(3)
Average
Balance
Income/
Expense
Yield/
Rate(3)
Average
Balance
Income/
Expense
Yield/
Rate(3)
Interest-earning assets                  
Federal funds sold and interest-bearing deposits $ 197,482 $ 2,703 5.43% $ 181,784 $ 2,435 5.31% $ 60,176 $ 525 3.46%
Investment securities, taxable 151,969 1,632 4.26% 148,239 1,429 3.82% 86,594 515 2.36%
Investment securities, nontaxable(2) 7,831 55 2.76% 7,799 55 2.77% 9,987 61 2.42%
Loans(10) 3,586,863 44,758 4.95% 3,554,478 43,542 4.86% 3,165,061 33,939 4.25%
Total interest-earning assets 3,944,145 49,148 4.94% 3,892,300 47,461 4.84% 3,321,818 35,040 4.18%
Noninterest-earning assets 174,717     159,103     162,924    
Total assets $ 4,118,862     $ 4,051,403     $ 3,484,742    
Interest-bearing liabilities                  
NOW accounts $ 301,424 656 0.86% $    297,028 620 0.83% $    343,541 379 0.44%
Savings & money market 1,697,144 17,042 3.98% 1,748,638  16,908 3.84% 1,529,532 7,657 1.99%
Time deposits 759,839 9,429 4.92% 648,949 7,602 4.65% 405,907 2,293 2.24%
Total interest-bearing deposits 2,758,407 27,127 3.90% 2,694,615 25,130 3.70% 2,278,980 10,329 1.80%
FHLB advances and other borrowings 257,880 2,387 3.67% 264,141 2,414 3.63% 7,594 81 4.23%
Subordinated debentures 36,305 561 6.13% 36,278 558 6.10% 36,197 497 5.45%
Total interest-bearing liabilities 3,052,592 30,075 3.91% 2,995,034 28,102 3.72% 2,322,771 10,907 1.86%
Noninterest-bearing liabilities 759,413     752,433     869,314    
Shareholders’ equity 306,857     303,936     292,657    
Total liabilities and shareholders’ equity $ 4,118,862     $ 4,051,403     $ 3,484,742    
Net interest spread     1.04%     1.12%     2.32%
Net interest income (tax equivalent) / margin   $ 19,073 1.92%   $ 19,359 1.97%   $ 24,133 2.88%
Less:tax-equivalent adjustment(2)   13     14     14  
Net interest income   $ 19,060     $ 19,345     $ 24,119  

[Footnotes to table located on page 6]

Net interest income was $19.1 million for the fourth quarter of 2023, a $285 thousand decrease from the third quarter of 2023, driven by a $2.0 million increase in interest expense, partially offset by a $1.7 million increase in interest income, on a tax-equivalent basis. The increase in interest expense was driven by a $57.6 million increase in average interest-bearing liabilities at an average cost of 3.91%, a 19-basis points increase over the previous quarter, partially offset by a $51.8 million increase in average interest-earning assets at an average rate of 4.94%, an increase of 10-basis points from the third quarter of 2023. In comparison to the fourth quarter of 2022, net interest income decreased $5.1 million, resulting primarily from a $729.8 million

3 

 

increase in average interest-bearing liabilities during the 12 months ended December 31, 2023, combined with a 205-basis point increase in the average cost. Our net interest margin, on a tax-equivalent basis, was 1.92% for the fourth quarter of 2023, a 5-basis point decrease from 1.97% for the third quarter of 2023 and a 96-basis point decrease from 2.88% for the fourth quarter of 2022. As a result of the significant increase in the federal funds rate over the past two years, the rates on our non-maturity deposits have increased and continue to increase more quickly than the yield on our interest-earning assets, resulting in the lower net interest margin during the fourth quarter of 2023.

Balance sheets - Unaudited

       
    Ending Balance
    December 31 September 30 June 30 March 31 December 31
(in thousands, except per share data)   2023 2023 2023 2023 2022
Assets            
Cash and cash equivalents:            
Cash and due from banks $ 28,020 17,395 24,742 22,213 18,788
Federal funds sold   119,349 127,714 170,145 242,642 101,277
Interest-bearing deposits with banks   8,801 7,283 10,183 7,350 50,809
Total cash and cash equivalents   156,170 152,392 205,070 272,205 170,874
Investment securities:            
Investment securities available for sale   134,702 144,035 91,548 94,036 93,347
Other investments   19,939 19,600 12,550 10,097 10,833
Total investment securities   154,641 163,635 104,098 104,133 104,180
Mortgage loans held for sale   7,194 7,117 15,781 6,979 3,917
Loans (5)    3,602,627  3,553,632  3,537,616  3,417,945  3,273,363
Less allowance for credit losses   (40,682) (41,131) (41,105) (40,435) (38,639)
Loans, net   3,561,945 3,512,501 3,496,511 3,377,510 3,234,724
Bank owned life insurance   52,501 52,140 51,791 51,453 51,122
Property and equipment, net   94,301 95,743 96,964 97,806 99,183
Deferred income taxes   12,200 13,078 12,356 12,087 12,522
Other assets   16,837 23,351 19,536 15,967 15,459
Total assets $ 4,055,789 4,019,957 4,002,107 3,938,140 3,691,981
Liabilities            
Deposits $ 3,379,564 3,347,771 3,433,018 3,426,774 3,133,864
FHLB Advances   275,000 275,000 180,000 125,000 175,000
Subordinated debentures   36,322 36,295 36,268 36,241 36,214
Other liabilities   52,436 56,993 51,307 50,775 52,391
Total liabilities   3,743,322 3,716,059 3,700,593 3,638,790 3,397,469
Shareholders’ equity            
Preferred stock - $.01 par value; 10,000,000 shares authorized   - - - - -
Common Stock - $.01 par value; 10,000,000 shares authorized   81 81 81 80 80
Nonvested restricted stock   (3,596) (4,065) (4,051) (4,462) (3,306)
Additional paid-in capital   121,777 121,757 120,912 120,683 119,027
Accumulated other comprehensive loss   (11,342) (15,255) (12,710) (11,775) (13,410)
Retained earnings   205,547 201,380 197,282 194,824 192,121
Total shareholders’ equity   312,467 303,898 301,514 299,350 294,512
Total liabilities and shareholders’ equity $  4,055,789 4,019,957 4,002,107 3,938,140 3,691,981
Common Stock            
Book value per common share $ 38.63 37.57 37.42 37.16 36.76
Stock price:            
High   37.15 30.18 31.34 45.05 49.50
Low   25.16 24.22 21.33 30.70 41.46
Period end   37.10 26.94 24.75 30.70 45.75
Common shares outstanding   8,088 8,089 8,058 8,048 8,011

[Footnotes to table located on page 6]

4 

 

Asset quality measures - Unaudited

    Quarter Ended
    December 31 September 30 June 30 March 31 December 31
(dollars in thousands)   2023 2023 2023 2023 2022
Nonperforming Assets            
Commercial            
Non-owner occupied RE $ 1,423 1,615 754 1,384 247
Commercial business   319 404 137 1,196 182
Consumer            
Real estate   985 1,228 1,053 1,075 1,099
Home equity   1,236 1,068 1,072 1,078 1,099
Total nonaccrual loans   3,963 4,315 3,016 4,733 2,627
Other real estate owned   - - - - -
Total nonperforming assets $ 3,963 4,315 3,016 4,733 2,627
Nonperforming assets as a percentage of:            
Total assets   0.10% 0.11% 0.08% 0.12% 0.07%
Total loans   0.11% 0.12% 0.09% 0.14% 0.08%
Classified assets/tier 1 capital plus allowance for credit losses   4.25% 4.72% 4.68% 5.10% 4.71%

 

    Quarter Ended
    December 31 September 30 June 30 March 31 December 31
(dollars in thousands)   2023 2023 2023 2023 2022
Allowance for Credit Losses            
Balance, beginning of period $ 41,131 41,105 40,435 38,639 36,317
Loans charged-off   (119) (42) (440) (161) -
Recoveries of loans previously charged-off   310 168 15 102 22
Net loans (charged-off) recovered    191  126 (425) (59) 22
Provision for (reversal of) credit losses   (640) (100) 1,095 1,855 2,300
Balance, end of period $ 40,682 41,131 41,105 40,435 38,639
Allowance for credit losses to gross loans   1.13% 1.16% 1.16% 1.18% 1.18%
Allowance for credit losses to nonaccrual loans   1,026.58% 953.25% 1,363.11% 854.33% 1,470.74%
Net charge-offs (recoveries) to average loans QTD (annualized)   (0.02%) (0.01%) 0.05% 0.01% 0.00%

Total nonperforming assets decreased by $352 thousand during the fourth quarter of 2023, and represented 0.10% of total assets, a decrease compared to 0.11% for the third quarter of 2023 and an increase compared to 0.07% for the fourth quarter of 2022. While we added two new relationships to nonaccrual during the fourth quarter of 2023, there were also three relationships either returned to accrual status or paid off during the quarter. In addition, our classified asset ratio decreased to 4.25% for the fourth quarter of 2023 from 4.72% in the third quarter of 2023 and from 4.71% in the fourth quarter of 2022.

At December 31, 2023, the allowance for credit losses was $40.7 million, or 1.13% of total loans, compared to $41.1 million, or 1.16% of total loans at September 30, 2023, and $38.6 million, or 1.18% of total loans, at December 31, 2022. We had net recoveries of $191 thousand, or 0.02% annualized, for the fourth quarter of 2023, compared to net recoveries of $126 thousand for the third quarter of 2023 and net recoveries of $22 thousand for the fourth quarter of 2022. There was a reversal of the provision for credit losses of $640 thousand for the fourth quarter of 2023, compared to a reversal of $100 thousand for the third quarter of 2023 and a provision of $2.3 million for the fourth quarter of 2022. The provision reversal was driven by lower expected loss rates resulting from low charge-offs during the quarter and year, combined with a lower specific reserve for individually assessed loans during the current quarter as several loans were paid off or returned to accruing status.

5 

 

LOAN COMPOSITION - Unaudited

  
    Quarter Ended
    December 31 September 30 June 30 March 31 December 31
(dollars in thousands)   2023 2023 2023 2023 2022
Commercial            
Owner occupied RE $ 631,657 637,038 613,874 615,094 612,901
Non-owner occupied RE   942,529 937,749 951,536 928,059 862,579
Construction   150,680 119,629 115,798 94,641 109,726
Business   500,161 500,253 511,719 495,161 468,112
Total commercial loans   2,225,027 2,194,669 2,192,927 2,132,955 2,053,318
Consumer            
Real estate   1,082,429 1,074,679 1,047,904 993,258 931,278
Home equity   183,004 180,856 185,584 180,974 179,300
Construction   63,348 54,210 61,044 71,137 80,415
Other   48,819 49,218 50,157 39,621 29,052
Total consumer loans   1,377,600 1,358,963 1,344,689 1,284,990 1,220,045
Total gross loans, net of deferred fees   3,602,627 3,553,632 3,537,616 3,417,945 3,273,363
Less—allowance for credit losses   (40,682) (41,131) (41,105) (40,435) (38,639)
Total loans, net $ 3,561,945 3,512,501 3,496,511 3,377,510 3,234,724

DEPOSIT COMPOSITION - Unaudited

  
    Quarter Ended
    December 31 September 30 June 30 March 31 December 31
(dollars in thousands)   2023 2023 2023 2023 2022
Non-interest bearing $ 674,167 675,409 698,084 740,534 804,115
Interest bearing:            
NOW accounts   310,218 306,667 308,762 303,743 318,030
Money market accounts   1,605,278 1,685,736 1,692,900 1,748,562 1,506,418
Savings   31,669 34,737 36,243 39,706 40,673
Time, less than $250,000   190,167 125,506 114,691 106,679 89,877
Time and out-of-market deposits, $250,000 and over   568,065 519,716 582,338 487,550 374,751
Total deposits $ 3,379,564 3,347,771 3,433,018 3,426,774 3,133,864

Footnotes to tables:

(1) Total revenue is the sum of net interest income and noninterest income.

(2) The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield on a taxable basis.

(3) Annualized for the respective three-month period.

(4) Noninterest expense divided by the sum of net interest income and noninterest income.

(5) Excludes mortgage loans held for sale.

(6) Excludes out of market deposits and time deposits greater than $250,000 totaling $568,065,000.

(7) December 31, 2023 ratios are preliminary.

(8) The common equity tier 1 ratio is calculated as the sum of common equity divided by risk-weighted assets.

(9) The tangible common equity ratio is calculated as total equity less preferred stock divided by total assets.

(10) Includes mortgage loans held for sale.

About Southern First Bancshares

Southern First Bancshares, Inc., Greenville, South Carolina is a registered bank holding company incorporated under the laws of South Carolina. The company’s wholly owned subsidiary, Southern First Bank, is the second largest bank headquartered in South Carolina. Southern First Bank has been providing financial services since 1999 and now operates in 12 locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as the Charlotte, Triangle and Triad regions of North Carolina and Atlanta, Georgia. Southern First Bancshares has consolidated assets of approximately $4.1 billion and its common stock is traded on The NASDAQ Global Market under the symbol “SFST.”  More information can be found at www.southernfirst.com.

FORWARD-LOOKING STATEMENTS

Certain statements in this news release contain “forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are identified by words such as “believe,” “expect,” “anticipate,” “estimate,” “preliminary”, “intend,” “plan,” “target,” “continue,” “lasting,” and “project,” as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not

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be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which the company conducts operations may be different than expected; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan and deposit growth as well as pricing of each product, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action, including, but not limited to, changes affecting oversight of the financial services industry or consumer protection; (5) the impact of changes to Congress on the regulatory landscape and capital markets; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (7) changes in interest rates, which may continue to affect the company’s net income, interest expense, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of the company’s assets, including its investment securities; (8) elevated inflation which may cause adverse risk to the overall economy, and could indirectly pose challenges to our clients and to our business; (9) any increase in FDIC assessments which have increased and may continue to increase our cost of doing business; and (10) changes in accounting principles, policies, practices, or guidelines.  Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).  All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

 

FINANCIAL & MEDIA CONTACT:

ART SEAVER 864-679-9010

WEB SITE: www.southernfirst.com

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Exhibit 99.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

v3.23.4
Cover
Jan. 18, 2024
Entity Addresses [Line Items]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jan. 18, 2024
Entity File Number 000-27719
Entity Registrant Name Southern First Bancshares, Inc.
Entity Central Index Key 0001090009
Entity Tax Identification Number 58-2459561
Entity Incorporation, State or Country Code SC
Entity Address, Address Line One 6 Verdae Boulevard
Entity Address, City or Town Greenville
Entity Address, State or Province SC
Entity Address, Postal Zip Code 29607
City Area Code 864
Local Phone Number 679-9000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol SFST
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Former Address [Member]  
Entity Addresses [Line Items]  
Entity Address, Address Line One 100 Verdae Boulevard
Entity Address, Address Line Two Suite 100
Entity Address, City or Town Greenville
Entity Address, State or Province SC

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