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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)      October 22, 2019



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))

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 October 22, 2019, Southern First Bancshares, Inc., holding company for Southern First Bank, issued a press release announcing its financial results for the period ended September 30, 2019. A copy of the press release is attached hereto as Exhibit 99.1.

ITEM 9.01. Financial Statements and Exhibits

(d) Exhibits

Exhibit No.       Exhibit
99.1 Earnings Press Release for period ended September 30, 2019.


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

October 22, 2019


EXHIBIT INDEX

Exhibit Number       Description
99.1 Earnings Press Release for the period ended September 30, 2019.


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Section 2: EX-99.1 (SOUTHERN FIRST REPORTS RESULTS FOR THIRD QUARTER 2019)

Exhibit 99.1


Southern First Reports Results for Third Quarter 2019

Greenville, South Carolina, October 22, 2019 – Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three- and nine-month periods ended September 30, 2019.

2019 Third Quarter Highlights

Net income improved to $7.4 million, a 28.2% increase over Q3 2018

Diluted EPS improved to $0.95 per share, a 26.7% increase over Q3 2018

Efficiency ratio of 53.0% for Q3 2019, compared to 56.5% for Q3 2018
Loan growth of $29.1 million, or 6.4% on an annualized basis
Deposit growth of $45.3 million, or 9.7% on an annualized basis
Core deposit growth of $70.6 million, or 17.3% on an annualized basis
Completion of $23.0 million, 4.75% fixed-to-floating rate, subordinated debt offering

“I am proud to report another quarter of outstanding performance with $7.4 million in earnings and core deposit growth of $70.6 million,” stated Art Seaver, the Company’s Chief Executive Officer. “Our team is intent on serving our clients and providing a unique client experience, as evidenced by the growth in new client relationships and retail deposits as well as excellent production by our mortgage team.”

     
Quarter Ended
   September 30    June 30    March 31    December 31    September 30
2019 2019 2019 2018 2018
Earnings ($ in thousands, except per share data):
Net income available to common shareholders $ 7,412 7,240 6,009 5,783 5,782
Earnings per common share, diluted 0.95 0.93 0.78 0.75 0.75
Total revenue(1) 21,675 20,629 18,812 18,473 18,034
Net interest margin (tax-equivalent)(2) 3.36 % 3.43 % 3.52 % 3.59 % 3.60 %
Return on average assets(3) 1.37 % 1.43 % 1.28 % 1.24 % 1.28 %
Return on average equity(3) 15.20 % 15.72 % 13.74 % 13.46 % 13.98 %
Efficiency ratio(4) 52.98 % 55.11 % 56.60 % 56.25 % 56.49 %
Noninterest expense to average assets(3) 2.12 % 2.24 % 2.26 % 2.23 % 2.26 %
Balance Sheet ($ in thousands):
Total Loans(5) $     1,838,427 1,809,355 1,733,964   1,677,332    1,620,201
Total deposits 1,899,295 1,854,008 1,758,235 1,648,136 1,589,483
Core deposits(6) 1,690,294 1,619,722 1,527,755 1,434,125 1,390,626
Total assets 2,201,626 2,116,044 2,014,426 1,900,614 1,857,707
Loans to deposits 96.80 % 97.59 % 98.62 % 101.77 % 101.93 %
Holding Company Capital Ratios(7):
Total risk-based capital ratio 13.63 % 12.31 % 12.43 % 12.49 % 12.50 %
Tier 1 risk-based capital ratio 11.51 % 11.40 % 11.48 % 11.53 % 11.48 %
Leverage ratio 9.82 % 9.95 % 10.17 % 10.14 % 10.15 %
Common equity tier 1 ratio(8) 10.80 % 10.67 % 10.72 % 10.73 % 10.66 %
Tangible common equity(9) 9.02 % 8.97 % 8.99 % 9.15 % 8.99 %
Asset Quality Ratios:
Nonperforming assets as a percentage of total assets 0.32 % 0.27 % 0.30 % 0.31 % 0.33 %
Net charge-offs as a percentage of average loans(5) (YTD annualized) 0.09 % 0.03 % 0.00 % 0.11 % 0.06 %
Allowance for loan losses as a percentage of loans(5) 0.86 % 0.89 % 0.93 % 0.94 % 1.00 %
Allowance for loan losses as a percentage of nonaccrual loans 225.50 % 277.91 % 265.35 % 270.36 % 270.54 %
[Footnotes to table located on page 6]

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INCOME STATEMENTS - Unaudited
         
Quarter Ended   Nine months Ended
Sept 30 June 30 Mar 31 Dec 31 Sept 30 Sept 30
(in thousands, except per share data) 2019 2019 2019 2018 2018 2019 2018
Interest income
Loans       $      22,817       22,098       20,889       20,405       19,159       65,804       53,314
Investment securities 576 539 549 517 487 1,664 1,284
Federal funds sold 663 451 174 157 219 1,288 980
Total interest income 24,056 23,088 21,612 21,079 19,865 68,756 55,578
Interest expense
Deposits 6,409 6,175 5,375 4,645 3,928 17,959 10,191
Borrowings 368 374 419 437 436 1,161 1,232
Total interest expense 6,777 6,549 5,794 5,082 4,364 19,120 11,423
Net interest income 17,279 16,539 15,818 15,997 15,501 49,636 44,155
Provision for loan losses 650 300 300 600 400 1,250 1,300
Net interest income after provision for loan losses   16,629 16,239 15,518 15,397 15,101 48,386 42,855
Noninterest income
Mortgage banking income 3,055 2,830 1,857 1,233 1,354 7,741 4,311
Service fees on deposit accounts 271 265 265 271 257 802 769
ATM and debit card income 464 443 380 404 381 1,287 1,085
Income from bank owned life insurance 282 222 216 217 221 720 662
Other income 324 330 276 351 320 930 898
Total noninterest income 4,396 4,090 2,994 2,476 2,533 11,480 7,725
Noninterest expense
Compensation and benefits 7,668 7,399 6,783 6,753 6,599 21,850 18,808
Occupancy 1,416 1,343 1,339 1,286 1,350 4,099 3,763
Outside service and data processing costs 1,073 1,045 960 902 841 3,078 2,400
Insurance 145 280 318 298 376 743 987
Professional fees 399 414 439 365 275 1,252 1,208
Marketing 237 236 260 204 215 733 652
Other 546 651 549 583 532 1,745 1,554
Total noninterest expenses 11,484 11,368 10,648 10,391 10,188 33,500 29,372
Income before provision for income taxes 9,541 8,961   7,864   7,482   7,446 26,366   21,208
Income tax expense 2,129 1,721 1,855 1,699 1,664 5,705 4,702
Net income available to common shareholders $ 7,412 7,240 6,009 5,783 5,782 20,661 16,506
 
Earnings per common share – Basic $ 0.98 0.97 0.81 0.78 0.78 2.75 2.24
Earnings per common share – Diluted 0.95 0.93 0.78 0.75 0.75 2.66 2.13
Basic weighted average common shares 7,548 7,496 7,459 7,428 7,400 7,501 7,369
Diluted weighted average common shares 7,781 7,756 7,742 7,726 7,746 7,760 7,741

Net income for the third quarter of 2019 was $7.4 million, a 28.2% increase over the third quarter of 2018. For the nine months ended September 30, 2019, net income was $20.7 million, an increase of 25.2% over the nine months ended September 30, 2018. Net interest income increased 11.5% for the third quarter of 2019 compared to the third quarter of 2018 and 12.4% for the first nine months of 2019 as compared to the first nine months of 2018. The increase in net interest income was driven by growth in interest-earning assets, partially offset by growth in interest-bearing deposits.

Noninterest income increased $1.9 million, or 73.5%, during the three months ended September 30, 2019 compared to the three months ended September 30, 2018, and increased $3.8 million, or 48.6%, for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018. The increase for both the three- and nine-month periods was driven by higher mortgage banking income as a result of additional mortgage executives and the favorable mortgage rate environment.

Noninterest expense increased $1.3 million, or 12.7%, for the third quarter of 2019 compared to the third quarter of 2018, and increased $4.1 million, or 14.1%, for the first nine months of 2019 compared to the first nine months of 2018. The increase in noninterest expense for both the three- and nine-month periods related primarily to increases in compensation and benefits, occupancy, and data processing and related costs as we continue to expand our footprint in South Carolina, North Carolina, and Georgia. Included in noninterest expense are mortgage banking expenses of $1.9 million and $4.7 million for the three and nine months ended September 30, 2019, respectively, and $1.1 million and $3.2 million for the three and nine months ended September 30, 2018, respectively.

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Our effective tax rate was 22.3% for both three-month periods ended September 30, 2019 and 2018 and 21.6% and 22.2% for the nine months ended September 30, 2019 and September 30, 2018, respectively.

NET INTEREST INCOME AND MARGIN - Unaudited

     

For the Three Months Ended

September 30, 2019

June 30, 2019

September 30, 2018

(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 $ 111,169 $ 663 2.37 % $ 71,905 $      451   2.52 % $     44,532 $     219 1.95 %
Investment securities, taxable 83,183 538 2.57 % 74,172 501 2.71 % 66,706 446 2.65 %
Investment securities, nontaxable(2) 5,097 51 3.94 % 5,288 49 3.74 %   5,431 53 3.89 %
Loans(10) 1,840,450 22,817 4.92 % 1,786,532 22,098 4.96 % 1,592,279 19,159 4.77 %
Total interest-earning assets 2,039,899 24,069 4.68 % 1,937,897 23,099 4.78 % 1,708,948 19,877 4.61 %
Noninterest-earning assets 109,395 94,673   77,708
Total assets $     2,149,294 $     2,032,570 $  1,786,656
Interest-bearing liabilities
NOW accounts 215,125 159 0.29 % $ 199,118 140 0.28 % $ 240,454 121 0.20 %
Savings & money market 899,407 4,106 1.81 % 849,570 3,879 1.83 % 686,609 2,324 1.34 %
Time deposits 374,200 2,144 2.27 % 381,593 2,156 2.27 % 328,516 1,483 1.79 %
Total interest-bearing deposits 1,488,732 6,409 1.71 % 1,430,281 6,175 1.73 % 1,255,579 3,928 1.24 %
FHLB advances and other borrowings 25,037 218 3.45 % 25,136 217 3.46 % 36,151 285 3.13 %
Subordinated debentures 13,642 150 4.36 % 13,403 157 4.70 % 13,403 151 4.47 %
Total interest-bearing liabilities 1,527,411 6,777 1.76 % 1,468,820 6,549 1.79 % 1,305,133 4,364 1.33 %
Noninterest-bearing liabilities 428,444 379,023 317,423
Shareholders’ equity 193,439 184,727 164,100
Total liabilities and shareholders’ equity $ 2,149,294 $ 2,032,570 $ 1,786,656
Net interest spread 2.92 % 2.99 % 3.28 %
Net interest income (tax equivalent) / margin $ 17,292 3.36 % $ 16,550 3.43 % $ 15,513 3.60 %
Less: tax-equivalent adjustment(2) 13 11 12
Net interest income $     17,279 $ 16,539 $ 15,501

Net interest income was $17.3 million for the third quarter of 2019, a $740,000 increase from the second quarter of 2019 and a $1.8 million increase from the third quarter of 2018. The increases in net interest income resulted primarily from the growth in our cash balances and loan portfolio, which was partially offset by growth in interest-bearing deposits. Our net interest margin, on a tax-equivalent basis, was 3.36% for the third quarter of 2019, a seven basis point decrease from 3.43% for the second quarter of 2019 and a 24 basis point decrease from 3.60% for the third quarter of 2018. Our average interest-earning assets increased by $102.0 million during the third quarter of 2019 for interest income of $24.1 million, or a yield of 4.68%, while our average interest-bearing liabilities increased by $58.6 million for interest expense of $6.8 million, or a cost of 1.76%. While our average loans grew by $53.9 million and our average federal funds sold and interest-bearing deposits grew by $39.3 million during the third quarter, our yield on interest-earning assets declined by 10 basis points from the second quarter of 2019. In addition, our interest-bearing liabilities, which consist primarily of interest-bearing deposits, grew by $58.6 million, while the total cost of funds declined three basis points in the third quarter of 2019.

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BALANCE SHEETS - Unaudited
 
Ending Balance
    September 30     June 30     March 31     December 31     September 30
(in thousands, except per share data) 2019 2019 2019 2018 2018
Assets
Cash and cash equivalents:
Cash and due from banks $ 44,349 12,220 16,853 17,434 15,199
Federal funds sold 19,215 64,520 75,207 35,882 21,836
Interest-bearing deposits with banks 70,959 40,044 25,246 19,557 52,956
Total cash and cash equivalents 134,523 116,784 117,306 72,873 89,991
Investment securities:
Investment securities available for sale 89,427 75,252 73,300 74,905 66,886
Other investments 3,307 3,311 3,309 4,121 4,929
Total investment securities 92,734 78,563 76,609 79,026 71,815
Mortgage loans held for sale 40,630 24,509 9,393 9,241 9,298
Loans(5) 1,838,427 1,809,355 1,733,964 1,677,332 1,620,201
Less allowance for loan losses (15,848 ) (16,144 ) (16,051 ) (15,762 ) (16,140 )
Loans, net 1,822,579 1,793,211 1,717,913 1,661,570 1,604,061
Bank owned life insurance 39,730 39,448 34,226 34,010 33,793
Property and equipment, net 54,846 48,262 47,262 32,430 32,670
Deferred income taxes 8,970 7,049 3,877 4,020 7,998
Other assets 7,614 8,218 7,840 7,444 8,081
Total assets $ 2,201,626 2,116,044 2,014,426 1,900,614 1,857,707
Liabilities
Deposits $      1,899,295 1,854,008 1,758,235 1,648,136 1,589,483
Federal Home Loan Bank advances 25,000 25,000 25,000 50,000 68,500
Subordinated debentures 35,887 13,403 13,403 13,403 13,403
Other liabilities 42,950 33,779 36,602 15,159 19,377
Total liabilities 2,003,132 1,926,190 1,833,240 1,726,698 1,690,763
Shareholders’ equity
Preferred stock - $.01 par value; 10,000,000 shares authorized - - - - -
Common Stock - $.01 par value; 10,000,000 shares authorized 76 76 75 75 74
Nonvested restricted stock (919 ) (887 ) (993 ) (741 ) (770 )
Additional paid-in capital 105,378 104,354 103,600 102,625 102,171
Accumulated other comprehensive income (loss) 424 188 (379 ) (917 ) (1,622 )
Retained earnings 93,535 86,123 78,883 72,874 67,091
Total shareholders’ equity 198,494 189,854 181,186 173,916 166,944
Total liabilities and shareholders’ equity $ 2,201,626 2,116,044 2,014,426 1,900,614 1,857,707
Common Stock
Book value per common share $ 26.05 25.12 24.14 23.29 22.41
Stock price:
High 41.69 39.16 39.10 39.00 47.00
Low 36.27 33.97 31.63 30.26 39.20
Period end 39.85 39.16 33.87 32.07 39.30
Common shares outstanding 7,619 7,558 7,506 7,466 7,449

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ASSET QUALITY MEASURES - Unaudited
 
Quarter Ended
September 30 June 30 March 31 December 31 September 30
(dollars in thousands) 2019 2019 2019 2018 2018
Nonperforming Assets
Commercial
Owner occupied RE     $ -     -     -     -     -
Non-owner occupied RE 1,963 372 403 210 1,680
Construction - - - - -
Commercial business 198 65 72 81 89
Consumer
Real estate 1,637 1,710 1,840 1,980 1,153
Home equity 467 442 1,249 1,006 850
Construction - - - - -
Other - - - 12 -
Nonaccruing troubled debt restructurings 2,763 3,220 2,485 2,541 2,194
Total nonaccrual loans 7,028 5,809 6,049 5,830 5,966
Other real estate owned - - - - 117
Total nonperforming assets $ 7,028 5,809 6,049 5,830 6,083
Nonperforming assets as a percentage of:
Total assets 0.32 % 0.27 % 0.30 % 0.31 % 0.33 %
Total loans 0.38 % 0.32 % 0.35 % 0.35 % 0.38 %
Accruing troubled debt restructurings $ 5,791 6,935 6,839 6,742 6,699
 
Quarter Ended
September 30 June 30 March 31 December 31 September 30
(dollars in thousands) 2019 2019 2019 2018 2018
Allowance for Loan Losses
Balance, beginning of period $ 16,144 16,051 15,762 16,140 16,100
Loans charged-off (963 ) (237 ) (41 ) (987 ) (556 )
Recoveries of loans previously charged-off 17 30 30 9 196
Net loans charged-off (946 ) (207 ) (11 ) (978 ) (360 )
Provision for loan losses 650 300 300 600 400
Balance, end of period $ 15,848 16,144 16,051 15,762 16,140
Allowance for loan losses to gross loans 0.86 % 0.89 % 0.93 % 0.94 % 1.00 %
Allowance for loan losses to nonaccrual loans 225.50 % 277.91 % 265.35 %          270.36 %           270.54 %
Net charge-offs to average loans QTD (annualized) 0.21 % 0.06 % 0.00 % 0.23 % 0.09 %

Total nonperforming assets increased by $1.2 million to $7.0 million, which represents 0.32% of total assets, an increase of five basis points compared to June 30, 2019. The increase in nonperforming assets was primarily a result of $2.9 million added to nonaccrual loans during the third quarter, partially offset by $1.6 million of nonaccrual loans removed or charged-off. The allowance for loan losses as a percentage of nonaccrual loans was 225.5% at September 30, 2019, a decrease from 277.9% at June 30, 2019 and 270.5% at September 30, 2018.

At September 30, 2019, the allowance for loan losses was $15.8 million, or 0.86% of total loans compared to $16.1 million, or 0.89% of total loans at June 30, 2019 and $15.8 million, or 0.94% of total loans at December 31, 2018. Net charge-offs were $946,000, or 0.21% on an annualized basis, for the third quarter of 2019 compared to $207,000, or 0.06% of net charge-offs, annualized, for the second quarter of 2019. Net charge-offs were $360,000 for the third quarter of 2018, or 0.09% on an annualized basis.

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LOAN COMPOSITION - Unaudited
 
Quarter Ended
    September 30     June 30     March 31     December 31     September 30
(dollars in thousands) 2019 2019 2019 2018 2018
Commercial
Owner occupied RE $ 392,896 390,727 386,256 367,018 372,120
Non-owner occupied RE 481,865 455,346 423,953 404,296 399,166
Construction 75,710 85,065 80,561 84,411 68,415
Business 290,154 292,564 281,502 272,980 244,348
Total commercial loans 1,240,625 1,223,702 1,172,272 1,128,705 1,084,049
Consumer
Real estate 346,512 342,100 330,538 320,943 311,271
Home equity 174,611 170,861 167,146 165,937 163,654
Construction 49,548 46,247 39,838 37,925 38,015
Other 27,131 26,445 24,170 23,822 23,212
Total consumer loans 597,802 585,653 561,692 548,627 536,152
Total gross loans, net of deferred fees 1,838,427 1,809,355 1,733,964 1,677,332 1,620,201
Less—allowance for loan losses (15,848 ) (16,144 ) (16,051 ) (15,762 ) (16,140 )
Total loans, net $ 1,822,579 1,793,211 1,717,913 1,661,570 1,604,061
 
DEPOSIT COMPOSITION - Unaudited
 
Quarter Ended
September 30 June 30 March 31 December 31 September 30
(dollars in thousands) 2019 2019 2019 2018 2018
Non-interest bearing $      414,704 368,906 359,754 346,570 300,331
Interest bearing:
NOW accounts 230,676 229,109 211,613 186,795 237,860
Money market accounts 891,784 857,478 791,490 730,765 680,824
Savings 15,912 15,180 15,451 15,486 16,041
Time, less than $100,000 55,501 59,382 61,331 63,073 62,744
Time and out-of-market deposits, $100,000 and over 290,718 323,953 318,596 305,447 291,683
Total deposits $ 1,899,295 1,854,008 1,758,235 1,648,136 1,589,483

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 third largest bank headquartered in South Carolina. Southern First Bank has been providing financial services since 1999 and now operates in 13 locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as the Triangle and Triad regions of North Carolina and Atlanta, Georgia. Southern First Bancshares has assets of approximately $2.2 billion and its common stock is traded in the NASDAQ Global Market under the symbol “SFST.” More information can be found at www.southernfirst.com.
____________________

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) September 30, 2019 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.

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 “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” and “projects,” 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 we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the company’s loan portfolio and allowance for loan losses; (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 the United States legal and regulatory framework; and (5) 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. 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.
 

FINANCIAL CONTACT: MIKE DOWLING  864-679-9070

MEDIA CONTACT: ART SEAVER  864-679-9010

WEB SITE: www.southernfirst.com

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