Southern First Reports Results for Third Quarter 2024
GREENVILLE, S.C., Oct. 22, 2024 /PRNewswire/ -- Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three-month period ended September 30, 2024.
"Our third quarter results continued our positive momentum and outlook this year. Our focus on building a high-quality balance sheet again rewarded us with outstanding asset quality performance, which is among the industry's best. We are well-positioned for increasing profitability in this operating environment despite persistent growth headwinds and uncertain interest rate moves by the Fed," stated Art Seaver, the Company's Chief Executive Officer. "This quarter we executed on opportunities to lower our funding costs, which is reflected in our solid margin expansion. Our team did an outstanding job of growing core checking accounts by 21%, annualized. Loan growth was flat due to our deliberate actions around disciplined pricing and high credit quality standards. We also believe that business growth may be waiting for additional clarity on interest rates, the political environment and global influences on the economy. Meanwhile, we are taking care of our clients and developing strong business pipelines one relationship at a time with relentless relationship banking and exceptional service."
Third Quarter 2024 Highlights
- Net income of $4.4 million and diluted earnings per common share of $0.54
- Total loans of $3.6 billion and total deposits of $3.5 billion
- Nonperforming assets to total assets of 0.28% and net recoveries of $9 thousand
- Net interest margin of 2.08% for Q3 2024, compared to 1.98% for Q2 2024
- Book value per common share of $40.04 and TCE ratio of 7.82%
Quarter Ended | ||||||
September 30 | June 30 | March 31 | December 31 | September 30 | ||
2024 | 2024 | 2024 | 2023 | 2023 | ||
Earnings ($ in thousands, except per share data): | ||||||
Net income available to common shareholders | $ | 4,382 | 2,999 | 2,522 | 4,167 | 4,098 |
Earnings per common share, diluted | 0.54 | 0.37 | 0.31 | 0.51 | 0.51 | |
Total revenue(1) | 23,766 | 23,051 | 21,309 | 21,390 | 22,094 | |
Net interest margin (tax-equivalent)(2) | 2.08 % | 1.98 % | 1.94 % | 1.92 % | 1.97 % | |
Return on average assets(3) | 0.43 % | 0.29 % | 0.25 % | 0.40 % | 0.40 % | |
Return on average equity(3) | 5.40 % | 3.81 % | 3.22 % | 5.39 % | 5.35 % | |
Efficiency ratio(4) | 75.90 % | 80.87 % | 84.94 % | 79.61 % | 78.31 % | |
Noninterest expense to average assets (3) | 1.75 % | 1.81 % | 1.81 % | 1.64 % | 1.69 % | |
Balance Sheet ($ in thousands): | ||||||
Total loans(5) | $ | 3,619,556 | 3,622,521 | 3,643,766 | 3,602,627 | 3,553,632 |
Total deposits | 3,518,825 | 3,459,869 | 3,460,681 | 3,379,564 | 3,347,771 | |
Core deposits(6) | 2,705,429 | 2,788,223 | 2,807,473 | 2,811,499 | 2,866,574 | |
Total assets | 4,174,631 | 4,109,849 | 4,105,704 | 4,055,789 | 4,019,957 | |
Book value per common share | 40.04 | 39.09 | 38.65 | 38.63 | 37.57 | |
Loans to deposits | 102.86 % | 104.70 % | 105.29 % | 106.60 % | 106.15 % | |
Holding Company Capital Ratios(7): | ||||||
Total risk-based capital ratio | 12.61 % | 12.77 % | 12.59 % | 12.57 % | 12.56 % | |
Tier 1 risk-based capital ratio | 10.99 % | 10.80 % | 10.63 % | 10.60 % | 10.58 % | |
Leverage ratio | 8.50 % | 8.27 % | 8.44 % | 8.14 % | 8.17 % | |
Common equity tier 1 ratio(8) | 10.58 % | 10.39 % | 10.22 % | 10.19 % | 10.17 % | |
Tangible common equity(9) | 7.82 % | 7.76 % | 7.68 % | 7.70 % | 7.56 % | |
Asset Quality Ratios: | ||||||
Nonperforming assets/total assets | 0.28 % | 0.27 % | 0.09 % | 0.10 % | 0.11 % | |
Classified assets/tier one capital plus allowance for credit losses | 4.35 % | 4.22 % | 3.99 % | 4.25 % | 4.72 % | |
Loans 30 days or more past due/loans(5) | 0.16 % | 0.30 % | 0.36 % | 0.37 % | 0.13 % | |
Net charge-offs/average loans(5) (YTD annualized) | 0.05 % | 0.07 % | 0.03 % | 0.00 % | 0.01 % | |
Allowance for credit losses/loans(5) | 1.11 % | 1.11 % | 1.11 % | 1.13 % | 1.16 % | |
Allowance for credit losses/nonaccrual loans | 346.78 % | 357.95 % | 1,109.13 % | 1,026.58 % | 953.25 % | |
[Footnotes to table located on page 6] | ||||||
INCOME STATEMENTS – Unaudited | ||||||
Quarter Ended | ||||||
Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | ||
(in thousands, except per share data) | 2024 | 2024 | 2024 | 2023 | 2023 | |
Interest income | ||||||
Loans | $ | 47,550 | 46,545 | 45,605 | 44,758 | 43,542 |
Investment securities | 1,412 | 1,418 | 1,478 | 1,674 | 1,470 | |
Federal funds sold | 2,209 | 2,583 | 1,280 | 2,703 | 2,435 | |
Total interest income | 51,171 | 50,546 | 48,363 | 49,135 | 47,447 | |
Interest expense | ||||||
Deposits | 27,725 | 28,216 | 26,932 | 27,127 | 25,130 | |
Borrowings | 2,855 | 2,802 | 2,786 | 2,948 | 2,972 | |
Total interest expense | 30,580 | 31,018 | 29,718 | 30,075 | 28,102 | |
Net interest income | 20,591 | 19,528 | 18,645 | 19,060 | 19,345 | |
Provision (reversal) for credit losses | - | 500 | (175) | (975) | (500) | |
Net interest income after provision for credit losses | 20,591 | 19,028 | 18,820 | 20,035 | 19,845 | |
Noninterest income | ||||||
Mortgage banking income | 1,449 | 1,923 | 1,164 | 868 | 1,208 | |
Service fees on deposit accounts | 455 | 423 | 387 | 371 | 356 | |
ATM and debit card income | 599 | 587 | 544 | 565 | 588 | |
Income from bank owned life insurance | 401 | 384 | 377 | 361 | 349 | |
Other income | 271 | 206 | 192 | 165 | 248 | |
Total noninterest income | 3,175 | 3,523 | 2,664 | 2,330 | 2,749 | |
Noninterest expense | ||||||
Compensation and benefits | 10,789 | 11,290 | 10,857 | 9,401 | 10,231 | |
Occupancy | 2,595 | 2,552 | 2,557 | 2,718 | 2,562 | |
Outside service and data processing costs | 1,930 | 1,962 | 1,846 | 2,000 | 1,744 | |
Insurance | 1,025 | 965 | 955 | 937 | 1,243 | |
Professional fees | 548 | 582 | 618 | 581 | 504 | |
Marketing | 319 | 389 | 369 | 364 | 293 | |
Other | 833 | 903 | 898 | 1,027 | 725 | |
Total noninterest expenses | 18,039 | 18,643 | 18,100 | 17,028 | 17,302 | |
Income before provision for income taxes | 5,727 | 3,908 | 3,384 | 5,337 | 5,293 | |
Income tax expense | 1,345 | 909 | 862 | 1,170 | 1,195 | |
Net income available to common shareholders | $ | 4,382 | 2,999 | 2,522 | 4,167 | 4,098 |
Earnings per common share – Basic | $ | 0.54 | 0.37 | 0.31 | 0.51 | 0.51 |
Earnings per common share – Diluted | 0.54 | 0.37 | 0.31 | 0.51 | 0.51 | |
Basic weighted average common shares | 8,064 | 8,126 | 8,110 | 8,056 | 8,053 | |
Diluted weighted average common shares | 8,089 | 8,141 | 8,142 | 8,080 | 8,072 | |
[Footnotes to table located on page 6] | ||||||
Net income for the third quarter of 2024 was $4.4 million, or $0.54 per diluted share, a $1.4 million increase from the second quarter of 2024 and a $284 thousand increase from the third quarter of 2023. Net interest income increased $1.1 million during the third quarter of 2024, compared to the second quarter of 2024, and increased $1.2 million, compared to the third quarter of 2023. The increase in net interest income from the prior quarter and prior year was driven by additional interest income on our interest-earning assets.
There was no provision for credit losses for the third quarter of 2024, compared to a provision for credit losses of $500 thousand during the second quarter of 2024. There was no provision during the third quarter due to loans remaining flat and low charge-offs during the quarter.
Noninterest income was $3.2 million for the third quarter of 2024, compared to $3.5 million for the second quarter of 2024. Mortgage banking income continues to be the largest component of our noninterest income at $1.4 million for the third quarter of 2024 compared to $1.9 million for the second quarter of 2024.
Noninterest expense for the third quarter of 2024 was $18.0 million, a $604 thousand decrease from the second quarter of 2024. The decrease in noninterest expense from the previous quarter was driven by a decrease in compensation and benefits expense. The decrease in compensation and benefits expenses was due primarily to a decrease in commissions expense and certain employee benefits expenses.
Our effective tax rate was 23.5% for the third quarter of 2024 as compared to 23.3% for the second quarter of 2024.
NET INTEREST INCOME AND MARGIN - Unaudited | |||||||||
For the Three Months Ended | |||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||
(dollars in thousands) | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ |
Interest-earning assets | |||||||||
Federal funds sold and interest- | $ 158,222 | $ 2,209 | 5.55 % | $ 186,584 | $ 2,583 | 5.57 % | $ 181,784 | $ 2,435 | 5.31 % |
Investment securities, taxable | 137,087 | 1,370 | 3.98 % | 133,507 | 1,376 | 4.15 % | 148,239 | 1,429 | 3.82 % |
Investment securities, nontaxable(2) | 8,047 | 55 | 2.70 % | 8,027 | 55 | 2.73 % | 7,799 | 55 | 2.77 % |
Loans(10) | 3,629,050 | 47,550 | 5.21 % | 3,645,595 | 46,545 | 5.14 % | 3,554,478 | 43,542 | 4.86 % |
Total interest-earning assets | 3,932,406 | 51,184 | 5.18 % | 3,973,713 | 50,559 | 5.12 % | 3,892,300 | 47,461 | 4.84 % |
Noninterest-earning assets | 158,550 | 165,093 | 159,103 | ||||||
Total assets | $4,090,956 | $4,138,806 | $4,051,403 | ||||||
Interest-bearing liabilities | |||||||||
NOW accounts | $ 314,669 | 835 | 1.06 % | $ 302,881 | 621 | 0.82 % | $ 297,028 | 620 | 0.83 % |
Savings & money market | 1,523,834 | 15,287 | 3.99 % | 1,611,991 | 16,324 | 4.07 % | 1,748,638 | 16,908 | 3.84 % |
Time deposits | 909,192 | 11,603 | 5.08 % | 898,878 | 11,271 | 5.04 % | 648,949 | 7,602 | 4.65 % |
Total interest-bearing deposits | 2,747,695 | 27,725 | 4.01 % | 2,813,750 | 28,216 | 4.03 % | 2,694,615 | 25,130 | 3.70 % |
FHLB advances and other borrowings | 240,065 | 2,297 | 3.81 % | 240,000 | 2,247 | 3.77 % | 264,141 | 2,414 | 3.63 % |
Subordinated debentures | 36,261 | 558 | 6.12 % | 36,360 | 555 | 6.14 % | 36,278 | 558 | 6.10 % |
Total interest-bearing liabilities | 3,024,021 | 30,580 | 4.02 % | 3,090,110 | 31,018 | 4.04 % | 2,995,034 | 28,102 | 3.72 % |
Noninterest-bearing liabilities | 744,025 | 731,843 | 752,433 | ||||||
Shareholders' equity | 322,910 | 316,853 | 303,936 | ||||||
Total liabilities and shareholders' | $4,090,956 | $4,138,806 | $4,051,403 | ||||||
Net interest spread | 1.16 % | 1.08 % | 1.12 % | ||||||
Net interest income (tax equivalent) / | $20,604 | 2.08 % | $19,541 | 1.98 % | $19,359 | 1.97 % | |||
Less: tax-equivalent adjustment(2) | 13 | 13 | 14 | ||||||
Net interest income | $20,591 | $19,528 | $19,345 | ||||||
[Footnotes to table located on page 6] | |||||||||
Net interest income was $20.6 million for the third quarter of 2024, a $1.1 million increase from the second quarter of 2024, driven by a $625 thousand increase in interest income, on a tax-equivalent basis, and a $438 thousand decrease in interest expense. The increase in interest income was driven by a $1.0 million increase in interest income on loans resulting from loans being originated and renewed at higher rates than much of our loan portfolio. Our net interest margin, on a tax-equivalent basis, was 2.08% for the third quarter of 2024, a ten-basis point increase from 1.98% for the second quarter of 2024. During the third quarter of 2024, the yield on our loan portfolio increased by seven-basis points, while the cost of our interest-bearing deposits decreased by two-basis points, as compared to the second quarter of 2024, resulting in an increase in net interest margin for the period.
BALANCE SHEETS - Unaudited | |||||||
Ending Balance | |||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||
(in thousands, except per share data) | 2024 | 2024 | 2024 | 2023 | 2023 | ||
Assets | |||||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 25,289 | 21,567 | 13,925 | 28,020 | 17,395 | |
Federal funds sold | 226,110 | 164,432 | 144,595 | 119,349 | 127,714 | ||
Interest-bearing deposits with banks | 9,176 | 8,828 | 8,789 | 8,801 | 7,283 | ||
Total cash and cash equivalents | 260,575 | 194,827 | 167,309 | 156,170 | 152,392 | ||
Investment securities: | |||||||
Investment securities available for sale | 134,597 | 121,353 | 125,996 | 134,702 | 144,035 | ||
Other investments | 19,640 | 18,653 | 18,499 | 19,939 | 19,600 | ||
Total investment securities | 154,237 | 140,006 | 144,495 | 154,641 | 163,635 | ||
Mortgage loans held for sale | 8,602 | 14,759 | 11,842 | 7,194 | 7,117 | ||
Loans (5) | 3,619,556 | 3,622,521 | 3,643,766 | 3,602,627 | 3,553,632 | ||
Less allowance for credit losses | (40,166) | (40,157) | (40,441) | (40,682) | (41,131) | ||
Loans, net | 3,579,390 | 3,582,364 | 3,603,325 | 3,561,945 | 3,512,501 | ||
Bank owned life insurance | 53,663 | 53,263 | 52,878 | 52,501 | 52,140 | ||
Property and equipment, net | 90,158 | 91,533 | 93,007 | 94,301 | 95,743 | ||
Deferred income taxes | 11,595 | 12,339 | 12,321 | 12,200 | 13,078 | ||
Other assets | 16,411 | 20,758 | 20,527 | 16,837 | 23,351 | ||
Total assets | $ | 4,174,631 | 4,109,849 | 4,105,704 | 4,055,789 | 4,019,957 | |
Liabilities | |||||||
Deposits | $ | 3,518,825 | 3,459,869 | 3,460,681 | 3,379,564 | 3,347,771 | |
FHLB Advances | 240,000 | 240,000 | 240,000 | 275,000 | 275,000 | ||
Subordinated debentures | 24,903 | 36,376 | 36,349 | 36,322 | 36,295 | ||
Other liabilities | 64,365 | 54,856 | 53,418 | 52,436 | 56,993 | ||
Total liabilities | 3,848,093 | 3,791,101 | 3,790,448 | 3,743,322 | 3,716,059 | ||
Shareholders' equity | |||||||
Preferred stock - $.01 par value; 10,000,000 shares authorized | - | - | - | - | - | ||
Common Stock - $.01 par value; 20,000,000 shares authorized | 82 | 82 | 82 | 81 | 81 | ||
Nonvested restricted stock | (4,219) | (4,710) | (5,257) | (3,596) | (4,065) | ||
Additional paid-in capital | 124,288 | 124,174 | 124,159 | 121,777 | 121,757 | ||
Accumulated other comprehensive loss | (9,063) | (11,866) | (11,797) | (11,342) | (15,255) | ||
Retained earnings | 215,450 | 211,068 | 208,069 | 205,547 | 201,380 | ||
Total shareholders' equity | 326,538 | 318,748 | 315,256 | 312,467 | 303,898 | ||
Total liabilities and shareholders' equity | $ | 4,174,631 | 4,109,849 | 4,105,704 | 4,055,789 | 4,019,957 | |
Common Stock | |||||||
Book value per common share | $ | 40.04 | 39.09 | 38.65 | 38.63 | 37.57 | |
Stock price: | |||||||
High | 36.45 | 30.36 | 38.71 | 37.15 | 30.18 | ||
Low | 27.70 | 25.70 | 29.80 | 25.16 | 24.22 | ||
Period end | 34.08 | 29.24 | 31.76 | 37.10 | 26.94 | ||
Common shares outstanding | 8,156 | 8,155 | 8,156 | 8,088 | 8,089 | ||
[Footnotes to table located on page 6] | |||||||
ASSET QUALITY MEASURES - Unaudited | ||||||
Quarter Ended | ||||||
September 30 | June 30 | March 31 | December 31 | September 30 | ||
(dollars in thousands) | 2024 | 2024 | 2024 | 2023 | 2023 | |
Nonperforming Assets | ||||||
Commercial | ||||||
Non-owner occupied RE | $ | 7,904 | 7,949 | 1,410 | 1,423 | 1,615 |
Commercial business | 838 | 829 | 488 | 319 | 404 | |
Consumer | ||||||
Real estate | 2,448 | 1,875 | 1,380 | 985 | 1,228 | |
Home equity | 393 | 565 | 367 | 1,236 | 1,068 | |
Other | - | - | 1 | - | - | |
Total nonaccrual loans | 11,583 | 11,218 | 3,646 | 3,963 | 4,315 | |
Other real estate owned | - | - | - | - | - | |
Total nonperforming assets | $ | 11,583 | 11,218 | 3,646 | 3,963 | 4,315 |
Nonperforming assets as a percentage of: | ||||||
Total assets | 0.28 % | 0.27 % | 0.09 % | 0.10 % | 0.11 % | |
Total loans | 0.32 % | 0.31 % | 0.10 % | 0.11 % | 0.12 % | |
Classified assets/tier 1 capital plus allowance for credit losses | 4.35 % | 4.22 % | 3.99 % | 4.25 % | 4.72 % | |
Quarter Ended | ||||||
September 30 | June 30 | March 31 | December 31 | September 30 | ||
(dollars in thousands) | 2024 | 2024 | 2024 | 2023 | 2023 | |
Allowance for Credit Losses | ||||||
Balance, beginning of period | $ | 40,157 | 40,441 | 40,682 | 41,131 | 41,105 |
Loans charged-off | (118) | (1,049) | (424) | (119) | (42) | |
Recoveries of loans previously charged-off | 127 | 15 | 183 | 310 | 168 | |
Net loans (charged-off) recovered | 9 | (1,034) | (241) | 191 | 126 | |
Provision for (reversal of) credit losses | - | 750 | - | (640) | (100) | |
Balance, end of period | $ | 40,166 | 40,157 | 40,441 | 40,682 | 41,131 |
Allowance for credit losses to gross loans | 1.11 % | 1.11 % | 1.11 % | 1.13 % | 1.16 % | |
Allowance for credit losses to nonaccrual loans | 346.78 % | 357.95 % | 1,109.13 % | 1,026.58 % | 953.25 % | |
Net charge-offs (recoveries) to average loans QTD (annualized) | 0.00 % | 0.11 % | 0.03 % | (0.02 %) | (0.01 %) | |
Total nonperforming assets increased by $365 thousand during the third quarter of 2024, and represented 0.28% of total assets, compared to 0.27% for the second quarter of 2024. The increase in nonperforming assets was driven by three new relationships, totaling $698 thousand, placed on nonaccrual during the third quarter of 2024, offset by one relationship returning to accrual status and several large paydowns on existing nonaccrual loans. In addition, our classified asset ratio was 4.35% for the third quarter of 2024 compared to 4.22% for the second quarter of 2024.
At September 30, 2024 and June 30, 2024, the allowance for credit losses was $40.2 million, or 1.11% of total loans. We had net recoveries of $9 thousand, or 0.00% annualized, for the third quarter of 2024, compared to net charge-offs of $1.0 million, or 0.11% annualized, for the second quarter of 2024. We did not record a provision for credit losses related to the loan portfolio during the third quarter of 2024, compared to a $750 thousand provision for credit losses related to the loan portfolio for the second quarter of 2024.
LOAN COMPOSITION - Unaudited | |||||||
Quarter Ended | |||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||
(dollars in thousands) | 2024 | 2024 | 2024 | 2023 | 2023 | ||
Commercial | |||||||
Owner occupied RE | $ | 642,608 | 642,008 | 631,047 | 631,657 | 637,038 | |
Non-owner occupied RE | 917,642 | 917,034 | 944,530 | 942,529 | 937,749 | ||
Construction | 144,665 | 144,968 | 157,464 | 150,680 | 119,629 | ||
Business | 521,535 | 527,017 | 520,073 | 500,161 | 500,253 | ||
Total commercial loans | 2,226,450 | 2,231,027 | 2,253,114 | 2,225,027 | 2,194,669 | ||
Consumer | |||||||
Real estate | 1,132,371 | 1,126,155 | 1,101,573 | 1,082,429 | 1,074,679 | ||
Home equity | 195,383 | 189,294 | 184,691 | 183,004 | 180,856 | ||
Construction | 21,582 | 32,936 | 53,216 | 63,348 | 54,210 | ||
Other | 43,770 | 43,109 | 51,172 | 48,819 | 49,218 | ||
Total consumer loans | 1,393,106 | 1,391,494 | 1,390,652 | 1,377,600 | 1,358,963 | ||
Total gross loans, net of deferred fees | 3,619,556 | 3,622,521 | 3,643,766 | 3,602,627 | 3,553,632 | ||
Less—allowance for credit losses | (40,166) | (40,157) | (40,441) | (40,682) | (41,131) | ||
Total loans, net | $ | 3,579,390 | 3,582,364 | 3,603,325 | 3,561,945 | 3,512,501 | |
DEPOSIT COMPOSITION - Unaudited | ||||||
Quarter Ended | ||||||
September 30 | June 30 | March 31 | December 31 | September 30 | ||
(dollars in thousands) | 2024 | 2024 | 2024 | 2023 | 2023 | |
Non-interest bearing | $ | 689,749 | 683,291 | 671,708 | 674,167 | 675,409 |
Interest bearing: | ||||||
NOW accounts | 339,412 | 293,875 | 293,064 | 310,218 | 306,667 | |
Money market accounts | 1,423,403 | 1,562,786 | 1,603,796 | 1,605,278 | 1,685,736 | |
Savings | 29,283 | 28,739 | 32,248 | 31,669 | 34,737 | |
Time, less than $250,000 | 223,582 | 219,532 | 206,657 | 190,167 | 125,506 | |
Time and out-of-market deposits, $250,000 and over | 813,396 | 671,646 | 653,208 | 568,065 | 519,716 | |
Total deposits | $ | 3,518,825 | 3,459,869 | 3,460,681 | 3,379,564 | 3,347,771 |
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 $813,396,000. | |
(7) September 30, 2024 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 $4.2 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," "future, "target," "continue," "lasting," "building," 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.
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 and the Presidential election 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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SOURCE Southern First Bancshares, Inc.
