Southern First Bancshares Inc.

01/26/2021 | Press release | Distributed by Public on 01/26/2021 09:43

Form 8-K

Section 1: 8-K (CURRENT REPORT)

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 26, 2021

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.)
100 Verdae Boulevard, Suite 100, Greenville, SC 29607
(Address of principal executive offices) (Zip Code)
(864) 679-9000
(Registrant's telephone number, including area code)
Not Applicable
(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 NasdaqGlobal 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 26, 2021, Southern First Bancshares, Inc., holding company for Southern First Bank, issued a press release announcing its financial results for the period ended December 31, 2020. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

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

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/ Michael D. Dowling
Name: Michael D. Dowling
Title: Chief Financial Officer

January 26, 2021

(Back To Top)

Section 2: EX-99.1 (EARNINGS PRESS RELEASE FOR PERIOD ENDED DECEMBER 31, 2020.)

Exhibit 99.1

Greenville, South Carolina, January 26, 2021- Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for three-month period and year ended December 31, 2020.

'While 2020 was a year of unprecedented challenges, I am incredibly proud of our team as they embraced our mission of 'impacting lives' in this pandemic environment,' stated Art Seaver, the company's Chief Executive Officer. 'We continue to add talented bankers as we expand our footprint, and we are excited to announce our first team in the Charlotte, North Carolina market.'

2020 Fourth Quarter Highlights

Net income of $8.6 million, compared to $7.2 million for Q4 2019

Diluted earnings per common share of $1.10 per share, compared to $0.92 for Q4 2019

Net interest margin of 3.55%, compared to 3.41% for Q4 2019

Loan loss provision of $2.3 million, compared to $1.1 million for Q4 2019

Announced expansion into Charlotte, North Carolina market

COVID-19 Update

96% of loan modifications, or $570.8 million, have returned to original payment status
Monitoring loans within two targeted industries which represent $128.8 million, or 6%, of total loans

Quarter Ended
December 31 September 30 June 30 March 31 December 31
2020 2020 2020 2020 2019
Earnings ($ in thousands, except per share data):
Net income available to common shareholders $ 8,601 2,217 4,678 2,832 7,198
Earnings per common share, diluted 1.10 0.28 0.60 0.36 0.92
Total revenue(1) 27,947 28,221 28,981 22,014 21,136
Net interest margin (tax-equivalent)(2) 3.55% 3.52% 3.42% 3.43% 3.41%
Return on average assets(3) 1.38% 0.36% 0.77% 0.51% 1.32%
Return on average equity(3) 15.51% 4.03% 8.78% 5.42% 14.18%
Efficiency ratio(4) 52.04% 50.26% 43.63% 56.20% 51.92%
Noninterest expense to average assets(3) 2.36% 2.34% 2.09% 2.23% 2.01%
Balance Sheet ($ in thousands):
Total loans(5) $ 2,142,867 2,078,540 2,036,801 2,030,261 1,943,525
Total deposits 2,142,758 2,181,056 2,188,643 2,025,698 1,876,124
Core deposits(6) 2,011,903 2,011,919 1,991,005 1,804,027 1,656,005
Total assets 2,482,587 2,479,411 2,482,295 2,372,249 2,267,195
Loans to deposits 100.01% 95.30% 93.06% 100.23% 103.59%
Holding Company Capital Ratios(7):
Total risk-based capital ratio 14.40% 14.15% 13.76% 13.59% 13.73%
Tier 1 risk-based capital ratio 11.99% 11.73% 11.37% 11.29% 11.63%
Leverage ratio 9.70% 9.47% 9.38% 10.00% 10.10%
Common equity tier 1 ratio(8) 11.34% 11.07% 10.72% 10.63% 10.94%
Tangible common equity(9) 9.20% 8.82% 8.71% 8.87% 9.08%
Asset Quality Ratios:
Nonperforming assets/ total assets 0.37% 0.42% 0.36% 0.42% 0.30%
Classified assets/tier one capital plus allowance for loan losses 8.18% 7.00% 7.51% 7.99% 7.93%
Loans 30 days or more past due 0.17% 0.26% 0.40% 0.60% 0.23%
Net charge-offs/average loans(5) (YTD annualized) 0.10% 0.11% 0.12% 0.04% 0.08%
Allowance for loan losses/loans(5) 2.06% 2.03% 1.55% 1.11% 0.86%
Allowance for loan losses/nonaccrual loans 547.14% 482.43% 350.74% 226.14% 244.95%
[Footnotes to table located on page 7]

1

COVID-19 IMPACT

The COVID-19 pandemic has resulted in uncertain economic conditions across the globe, significantly impacting our business and that of many of our clients during 2020. As we progress through the pandemic, the majority of our team has returned to working in the office at this time; however, we maintain the ability to shift to working remotely as needed. Our offices continue to operate in a drive-thru only mode with 'in-person' client meetings available by appointment to maintain the safety of our team and our clients. This strategy, combined with our digital technology, has been extremely effective in serving our clients.

Beginning late in the first quarter of 2020, we began granting loan modifications or deferrals to certain borrowers affected by the pandemic on a short-term basis of three to six months. As of December 31, 2020, substantially all of these loans have reached the end of their deferral period and have begun to resume normal payments.

As we closely monitor credit risk and our exposure to increased loan losses resulting from the impact of COVID-19 on our commercial clients, we have identified two industries considered to be at higher risk for credit loss. The table below identifies the outstanding and committed loan balances for each of these industries. Of the $128.8 million of loans modified in these industries as of December 31, 2020, 95% have begun to resume normal payments.

December 31, 2020
% Past
% of Total Total % Due 30
# Balance Loans Modified % Deferral Deferral Days or % on
(dollars in thousands) Loans Outstanding Outstanding Balance Modified Complete Complete More Nonaccrual
Hotels 24 $ 115,620 5.4% $ 61,643 53.3% $ 53,643 87.0% -% -%
Restaurants 56 13,184 0.6% 5,291 40.1% 5,116 96.7% -% -%
Total 80 $ 128,804 6.0% $ 66,934 52.0% $ 85,759 87.8% -% -%

2

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) 2020 2020 2020 2020 2019 2020 2019
Interest income
Loans $ 23,171 23,042 23,554 23,367 23,124 93,133 88,928
Investment securities 325 310 384 396 438 1,415 2,102
Federal funds sold 51 63 53 103 334 270 1,622
Total interest income 23,547 23,415 23,991 23,866 23,896 94,818 92,652
Interest expense
Deposits 1,861 2,393 3,627 5,174 5,771 13,055 23,730
Borrowings 383 385 590 594 492 1,953 1,653
Total interest expense 2,244 2,778 4,217 5,768 6,263 15,008 25,383
Net interest income 21,303 20,637 19,774 18,098 17,633 79,810 67,269
Provision for loan losses 2,300 11,100 10,200 6,000 1,050 29,600 2,300
Net interest income after provision for loan losses 19,003 9,537 9,574 12,098 16,583 50,210 64,969
Noninterest income
Mortgage banking income 5,064 6,277 5,776 2,668 2,181 19,785 9,923
Service fees on deposit accounts 190 211 197 262 260 860 1,061
ATM and debit card income 483 465 394 398 441 1,741 1,728
Income from bank owned life insurance 281 270 270 270 281 1,091 1,001
Gain on sale of securities, net - - - - 719 - 727
Loss on extinguishment of debt - - (37) - (1,496) (37) (1,496)
Net lender fees on PPP loan sale - - 2,247 - - 2,247 -
Other income 626 361 360 318 1,117 1,666 2,039
Total noninterest income 6,644 7,584 9,207 3,916 3,503 27,353 14,983
Noninterest expense
Compensation and benefits 6,836 6,666 6,394 6,390 5,762 26,287 23,826
Mortgage production costs 3,057 2,666 2,368 1,807 1,719 9,898 6,436
Occupancy 1,596 1,601 1,496 1,533 1,425 6,226 5,513
Other real estate owned expenses 550 673 - - (22) 1,223 (26)
Outside service and data processing costs 1,052 1,046 1,055 1,070 1,002 4,223 3,782
Insurance 385 377 298 320 70 1,380 813
Professional fees 501 395 475 400 366 1,771 1,327
Marketing 146 165 86 230 168 628 791
Other 421 594 472 622 483 2,108 2,011
Total noninterest expenses 14,544 14,183 12,644 12,372 10,973 53,744 44,473
Income before provision for income taxes 11,103 2,938 6,137 3,642 9,113 23,819 35,479
Income tax expense 2,502 721 1,459 810 1,915 5,491 7,621
Net income available to common shareholders $ 8,601 2,217 4,678 2,832 7,198 18,328 27,858
Earnings per common share - Basic $ 1.11 0.29 0.61 0.37 0.94 2.37 3.70
Earnings per common share - Diluted 1.10 0.28 0.60 0.36 0.92 2.34 3.58
Basic weighted average common shares 7,741 7,732 7,722 7,679 7,608 7,719 7,528
Diluted weighted average common shares 7,836 7,815 7,819 7,827 7,811 7,824 7,773
[Footnotes to table located on page 7]

Net income for the fourth quarter of 2020 was $8.6 million, or $1.10 per diluted share, a $6.4 million increase from the third quarter of 2020 and a $1.4 million increase from the fourth quarter of 2019. For the year ended December 31, 2020, net income was $18.3 million, a decrease of 34.2% over the year ended December 31, 2019, driven primarily by the increase in provision for loan losses.

Net interest income increased $666 thousand for the fourth quarter of 2020, compared with the third quarter of 2020, and increased $3.7 million, or 20.8%, compared to the fourth quarter of 2019, which primarily reflects a reduction in deposit costs over each prior period. Net interest income for the year ended December, 31 2020 increased 18.6% compared with the year ended December, 31 2019, reflecting an increase in loan balances and a reduction in deposit costs from the prior year.

3

The provision for loan losses decreased to $2.3 million for the fourth quarter of 2020, compared to $11.1 million for the third quarter and $1.1 million for the fourth quarter of 2019. The provision for loan losses totaled $29.6 million for the year ended December, 31 2020 compared to $2.3 million for the year ended December 31, 2019. The increased provision for the year ended December 31, 2020 was driven by qualitative adjustment factors related to the uncertain economic and business conditions at both the national and regional levels that remain at December 31, 2020. Factors such as the continued impact on the tourism and hospitality industries due to the pandemic, an increase in permanent job losses, and uncertainty in the political realm have driven this increase.

Noninterest income totaled $6.6 million for the fourth quarter of 2020, a $940 thousand decrease from the third quarter of 2020 and a $3.1 million increase from the fourth quarter of 2019. As the largest component of our noninterest income, mortgage banking income was the driving factor in the change in noninterest income from the prior quarter and the prior year.

Noninterest expense for the fourth quarter of 2020 increased $361 thousand compared with the third quarter of 2020 and increased $3.6 million compared with the fourth quarter of 2019. The increases were due primarily to higher compensation and benefits expense, mortgage production costs and other real estate owned expenses.

Our effective tax rate was 22.5% for the fourth quarter of 2020, 24.5% for the third quarter of 2020, and 21.0% for the fourth quarter of 2019. The lower tax rate this quarter relates to the favorable tax impact of stock option transactions during the quarter.

NET INTEREST INCOME AND MARGIN - Unaudited
For the Three Months Ended
December 31, 2020 September 30, 2020 December 31, 2019
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
(dollars in thousands) Balance Expense Rate(3) Balance Expense Rate(3) Balance Expense Rate(3)
Interest-earning assets
Federal funds sold and interest-bearing deposits $ 112,473 $ 51 0.18% $ 162,092 $ 63 0.15% $ 72,563 $ 334 1.83%
Investment securities, taxable 83,260 273 1.30% 77,365 261 1.34% 69,712 417 2.37%
Investment securities, nontaxable(2) 9,311 68 2.89% 7,136 64 3.55% 3,249 27 3.33%
Loans(10) 2,182,619 23,171 4.22% 2,088,746 23,042 4.39% 1,908,067 23,124 4.81%
Total interest-earning assets 2,387,663 23,563 3.93% 2,335,339 23,430 3.99% 2,053,591 23,902 4.62%
Noninterest-earning assets 90,519 104,065 115,686
Total assets $ 2,478,182 $ 2,439,404 $ 2,169,277
Interest-bearing liabilities
NOW accounts $ 276,780 42 0.06% $ 264,786 50 0.08% $ 221,248 169 0.30%
Savings & money market 1,058,573 903 0.34% 1,021,850 1,176 0.46% 927,734 3,799 1.62%
Time deposits 260,579 916 1.40% 296,186 1,167 1.57% 326,615 1,803 2.19%
Total interest-bearing deposits 1,595,932 1,861 0.46% 1,582,822 2,393 0.60% 1,475,597 5,771 1.55%
FHLB advances and other borrowings 272 - - - - - 6,420 46 2.78%
Subordinated debentures 35,981 383 4.23% 35,954 385 4.26% 35,896 446 4.93%
Total interest-bearing liabilities 1,632,185 2,244 0.55% 1,618,776 2,778 0.68% 1,517,913 6,263 1.64%
Noninterest-bearing liabilities 625,422 601,896 450,025
Shareholders' equity 220,575 218,732 201,339
Total liabilities and shareholders' equity $ 2,478,182 $ 2,439,404 $ 2,169,277
Net interest spread 3.38% 3.31% 2.98%
Net interest income (tax equivalent) / margin $ 21,319 3.55% $ 20,652 3.52% $ 17,639 3.41%
Less: tax-equivalent adjustment(2) 16 15 6
Net interest income $ 21,303 $ 20,637 $ 17,633
[Footnotes to table located on page 7]

4

Net interest income was $21.3 million for the fourth quarter of 2020, a $666 thousand increase from the third quarter of 2020. In addition, interest income, on a tax-equivalent basis, increased by $133 thousand due primarily to higher average loan balances, while interest expense decreased by $534 thousand driven by lower deposit costs. In comparison to the fourth quarter of 2019, net interest income increased $3.7 million due to higher loan balances and lower deposit costs, partially offset by lower yields on interest-earning assets. Our net interest margin, on a tax-equivalent basis, was 3.55% for the fourth quarter of 2020, a 3-basis point increase from 3.52% for the third quarter of 2020 and a 14-basis point increase from 3.41% for the fourth quarter of 2019. Growth in earning assets combined with lower deposit costs offset the lower loan yield during the fourth quarter of 2020, having a positive impact on our net interest margin.

BALANCE SHEETS - Unaudited
Ending Balance
(in thousands, except per share data) December 31
2020
September 30
2020
June 30
2020
March 31
2020
December 31
2019
Assets
Cash and cash equivalents:
Cash and due from banks $ 12,920 14,916 47,292 17,521 19,196
Federal funds sold 66,023 83,106 87,743 40,277 89,256
Interest-bearing deposits with banks 21,744 64,893 103,371 83,314 19,364
Total cash and cash equivalents 100,687 162,915 238,406 141,112 127,816
Investment securities:
Investment securities available for sale 94,729 87,991 70,997 70,507 67,694
Other investments 3,635 2,589 2,610 5,341 6,948
Total investment securities 98,364 90,580 73,607 75,848 74,642
Mortgage loans held for sale 60,257 63,823 44,169 34,948 27,046
Loans(5) 2,142,867 2,078,540 2,036,801 2,030,261 1,943,525
Less allowance for loan losses (44,149) (42,219) (31,602) (22,462) (16,642)
Loans,net 2,098,718 2,036,321 2,005,199 2,007,799 1,926,883
Bank owned life insurance 41,102 40,821 40,551 40,281 40,011
Property and equipment, net 60,236 61,386 61,344 58,656 58,478
Deferred income taxes 9,518 6,510 4,017 4,087 4,275
Other assets 13,705 17,055 15,002 9,518 8,044
Total assets $ 2,482,587 2,479,411 2,482,295 2,372,249 2,267,195
Liabilities
Deposits $ 2,142,758 2,181,056 2,188,643 2,025,698 1,876,124
Federal Home Loan Bank advances 25,000 - - 65,000 110,000
Subordinated debentures 35,998 35,971 35,944 35,917 35,890
Other liabilities 50,537 43,635 41,554 35,159 39,321
Total liabilities 2,254,293 2,260,662 2,266,141 2,161,774 2,061,335
Shareholders' equity
Preferred stock - $.01 par value;10,000,000 shares authorized - - - - -
Common Stock - $.01 par value;10,000,000 shares authorized 78 77 77 77 77
Nonvested restricted stock (698) (989) (1,001) (1,105) (803)
Additional paid-in capital 108,831 108,337 108,031 107,529 106,152
Accumulated other comprehensive income (loss) 1,023 865 805 410 (298)
Retained earnings 119,060 110,459 108,242 103,564 100,732
Total shareholders' equity 228,294 218,749 216,154 210,475 205,860
Total liabilities and shareholders' equity $ 2,482,587 2,479,411 2,482,295 2,372,249 2,267,195
Common Stock
Book value per common share $ 29.37 28.27 27.95 27.27 26.83
Stock price:
High 35.80 27.96 30.49 42.72 44.32
Low 24.15 23.30 24.21 21.64 37.94
Period end 35.35 24.15 27.71 28.37 42.49
Common shares outstanding 7,773 7,738 7,735 7,718 7,673
[Footnotes to table located on page 7]

5


ASSET QUALITY MEASURES - Unaudited
Quarter Ended
(dollars in thousands) December 31
2020
September 30
2020
June 30
2020
March 31
2020
December 31
2019
Nonperforming Assets
Commercial
Owner occupied RE $ - - - - -
Non-owner occupied RE 1,143 1,059 2,428 3,268 188
Construction 139 143 - - -
Commercial business 195 201 229 231 235
Consumer
Real estate 2,536 2,518 1,324 1,821 1,829
Home equity 547 632 360 427 431
Construction - - - - -
Other - - - - -
Nonaccruing troubled debt restructurings 3,509 4,198 4,669 4,186 4,111
Total nonaccrual loans 8,069 8,751 9,010 9,933 6,794
Other real estate owned 1,169 1,684 - - -
Total nonperforming assets $ 9,238 10,435 9,010 9,933 6,794
Nonperforming assets as a percentage of:
Total assets 0.37% 0.42% 0.36% 0.42% 0.30%
Total loans 0.43% 0.50% 0.44% 0.49% 0.35%
Accruing troubled debt restructurings (TDRs) $ 4,893 5,277 7,332 7,939 5,219
Classified assets/tier 1 capital plus allowance for loan losses 8.18% 7.00% 7.51% 7.99% 7.93%
Quarter Ended
(dollars in thousands) December 31
2020
September 30
2020
June 30
2020
March 31
2020
December 31
2019
Allowance for Loan Losses
Balance, beginning of period $ 42,219 31,602 22,462 16,642 15,848
Loans charged-off (1,000) (1,064) (1,083) (266) (275)
Recoveries of loans previously charged-off 630 581 23 86 19
Net loans charged-off (370) (483) (1,060) (180) (256)
Provision for loan losses 2,300 11,100 10,200 6,000 1,050
Balance, end of period $ 44,149 42,219 31,602 22,462 16,642
Allowance for loan losses to gross loans 2.06% 2.03% 1.55% 1.11% 0.86%
Allowance for loan losses to nonaccrual loans 547.14% 482.43% 350.74% 226.14% 224.95%
Net charge-offs to average loans QTD (annualized) 0.07% 0.09% 0.20% 0.04% 0.06%

Total nonperforming assets decreased by $1.2 million to $9.2 million for the fourth quarter of 2020, representing 0.37% of total assets, compared to the third quarter of 2020. The decrease in nonperforming assets was primarily a result of $2.6 million of loans paid off during the fourth quarter of 2020, combined with a $561 thousand write-down on the one property included in our other real estate owned. Offsetting these decreases was $2.2 million of loans added to nonaccrual during the quarter. The allowance for loan losses as a percentage of nonaccrual loans was 547.14% on December 31, 2020, compared to 482.43% on September 30, 2020 and 244.95% on December 31, 2019.

On December 31, 2020, the allowance for loan losses was $44.1 million, or 2.06% of total loans, compared to $42.2 million, or 2.03% of total loans, at September 30, 2020 and $16.6 million, or 0.86% of total loans, at December 31, 2019. Net charge-offs were $370 thousand, or 0.07% on an annualized basis, for the fourth quarter of 2020 compared to $483 thousand, or 0.09% of net charge-offs, annualized, for the third quarter of 2020. Net charge-offs were $256,000 for the fourth quarter of 2019. The provision for loan losses was $2.3 million for the fourth quarter of 2020 compared to $11.1 million for the third quarter of 2020 and $1.1 million for the fourth quarter of 2019. The increased provision for the year ended December 31, 2020 was driven by qualitative adjustment factors related to the uncertain economic and business conditions at both the national and regional levels that remain at December 31, 2020. Factors such as the continued impact on the tourism and hospitality industries due to the pandemic, an increase in permanent job losses, and uncertainty in the political realm have driven this increase.

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LOAN COMPOSITION - Unaudited
Quarter Ended
(dollars in thousands) December 31
2020
September 30
2020
June 30
2020
March 31
2020
December 31
2019
Commercial
Owner occupied RE $ 433,320 419,316 420,858 422,124 407,851
Non-owner occupied RE 585,269 570,139 554,566 534,846 501,878
Construction 61,467 64,063 71,761 74,758 80,486
Business 307,599 303,760 310,212 317,702 308,123
Total commercial loans 1,387,655 1,357,278 1,357,397 1,349,430 1,298,338
Consumer
Real estate 536,311 496,684 437,742 427,697 398,245
Home equity 156,957 161,795 173,739 183,099 179,738
Construction 40,525 39,355 45,629 45,240 41,471
Other 21,419 23,428 22,294 24,795 25,733
Total consumer loans 755,212 721,262 679,404 680,831 645,187
Total gross loans, net of deferred fees 2,142,867 2,078,540 2,036,801 2,030,261 1,943,525
Less-allowance for loan losses (44,149) (42,219) (31,602) (22,462) (16,642)
Total loans, net $ 2,098,718 2,036,321 2,005,199 2,007,799 1,926,883
DEPOSIT COMPOSITION - Unaudited
Quarter Ended
(dollars in thousands) December 31
2020
September 30
2020
June 30
2020
March 31
2020
December 31
2019
Non-interest bearing $ 576,610 575,195 573,548 437,855 397,331
Interest bearing:
NOW accounts 268,739 284,490 285,953 260,320 228,680
Money market accounts 1,042,745 1,025,518 1,006,233 979,861 898,923
Savings 27,254 23,837 22,675 19,563 16,258
Time, less than $100,000 36,454 38,510 41,610 43,596 47,941
Time and out-of-market deposits, $100,000 and over 190,956 233,506 258,624 284,503 286,991
Total deposits $ 2,142,758 2,181,056 2,188,643 2,025,698 1,876,124

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.
(7) December 31, 2020 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 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 $2.5 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,' 'intend,' 'plan,' 'target,' 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 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.

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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, including, but not limited to, due to the negative impacts and disruptions resulting from the national political turmoil as well as continuing impact of the novel coronavirus, or COVID-19, on the economies and communities the company serves, which may have an adverse impact on the company's business, operations and performance, and could have a negative impact on the company's credit portfolio, share price, borrowers, and on the economy as a whole, both domestically and globally; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, 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 the results of the recent U.S. elections on the regulatory landscape, capital markets, and the response to and management of the COVID-19 pandemic; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the company; (7) changes in interest rates, which may affect the company's net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of the company's assets, including its investment securities; and (8) 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 CONTACT: MIKE DOWLING 864-679-9070
MEDIA CONTACT: ART SEAVER 864-679-9010
WEB SITE: www.southernfirst.com

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