GREENVILLE, S.C., July 18,
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 June 30, 2024.
"We reported solid performance in the second quarter with
improved profitability across all measures. Loans and core deposits
were modestly down, as expected, as we continue to focus on
disciplined pricing on both sides of the balance sheet.
Noninterest-bearing deposit growth was excellent, which reflects
the strength of our team. We are expanding profitable client
relationships by delivering a unique, authentic service experience.
Economic conditions across all our markets remain positive, but we
are constantly aware of the broader environment and remain diligent
and conservative. Our focus on building a strong, high-quality
balance sheet with measured, deliberate growth has been paying off
in our financial results," stated Art
Seaver, the Company's Chief Executive Officer. "We are
balancing our objective of delivering high performance today with
our patience in building an even stronger company for the future.
Part of this effort is attracting high-quality talent to our
Southern First team and we did just that this quarter with the
addition of Chris Zych as Chief
Financial Officer. Chris's depth of experience and success in
banking over the years will be an asset to us."
2024 Second Quarter Highlights
- Net income was $3.0 million
and diluted earnings per common share were $0.37 for Q2 2024
- Total loans were $3.6 billion
at Q2 2024, a decrease of $21.2
million, or 2.35% annualized, from Q1 2024
- Total deposits were $3.5
billion at Q2 2024, a decrease of $812 thousand, or 0.09% annualized, from Q1
2024
- Nonperforming assets to total assets were 0.27% and past due
loans to total loans were 0.30% at Q2 2024
- Net interest margin was 1.98% for Q2 2024, compared to 1.94%
for Q1 2024
- Book value per common share increased to $39.09 at Q2 2024
|
|
Quarter
Ended
|
|
|
June
30
|
March
31
|
December
31
|
September
30
|
June
30
|
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
|
Earnings ($ in
thousands, except per share data):
|
|
|
|
|
|
|
|
Net income available to
common shareholders
|
$
|
2,999
|
2,522
|
4,167
|
4,098
|
2,458
|
|
Earnings per common
share, diluted
|
|
0.37
|
0.31
|
0.51
|
0.51
|
0.31
|
|
Total
revenue(1)
|
|
23,051
|
21,309
|
21,390
|
22,094
|
21,561
|
|
Net interest margin
(tax-equivalent)(2)
|
|
1.98 %
|
1.94 %
|
1.92 %
|
1.97 %
|
2.05 %
|
|
Return on average
assets(3)
|
|
0.29 %
|
0.25 %
|
0.40 %
|
0.40 %
|
0.26 %
|
|
Return on average
equity(3)
|
|
3.81 %
|
3.22 %
|
5.39 %
|
5.35 %
|
3.27 %
|
|
Efficiency
ratio(4)
|
|
80.87 %
|
84.94 %
|
79.61 %
|
78.31 %
|
80.67 %
|
|
Noninterest expense to
average assets (3)
|
|
1.81 %
|
1.81 %
|
1.64 %
|
1.69 %
|
1.82 %
|
|
Balance Sheet ($
in thousands):
|
|
|
|
|
|
|
|
Total
loans(5)
|
$
|
3,622,521
|
3,643,766
|
3,602,627
|
3,553,632
|
3,537,616
|
|
Total
deposits
|
|
3,459,869
|
3,460,681
|
3,379,564
|
3,347,771
|
3,433,018
|
|
Core
deposits(6)
|
|
2,788,223
|
2,807,473
|
2,811,499
|
2,866,574
|
2,880,507
|
|
Total assets
|
|
4,109,849
|
4,105,704
|
4,055,789
|
4,019,957
|
4,002,107
|
|
Book value per common
share
|
|
39.09
|
38.65
|
38.63
|
37.57
|
37.42
|
|
Loans to
deposits
|
|
104.70 %
|
105.29 %
|
106.60 %
|
106.15 %
|
103.05 %
|
|
Holding Company
Capital Ratios(7):
|
|
|
|
|
|
|
|
Total risk-based
capital ratio
|
|
12.77 %
|
12.59 %
|
12.57 %
|
12.56 %
|
12.40 %
|
|
Tier 1 risk-based
capital ratio
|
|
10.80 %
|
10.63 %
|
10.60 %
|
10.58 %
|
10.42 %
|
|
Leverage
ratio
|
|
8.27 %
|
8.44 %
|
8.14 %
|
8.17 %
|
8.48 %
|
|
Common equity tier 1
ratio(8)
|
|
10.39 %
|
10.22 %
|
10.19 %
|
10.17 %
|
10.00 %
|
|
Tangible common
equity(9)
|
|
7.76 %
|
7.68 %
|
7.70 %
|
7.56 %
|
7.53 %
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
Nonperforming
assets/total assets
|
|
0.27 %
|
0.09 %
|
0.10 %
|
0.11 %
|
0.08 %
|
|
Classified assets/tier
one capital plus allowance for credit losses
|
|
4.22 %
|
3.99 %
|
4.25 %
|
4.72 %
|
4.68 %
|
|
Loans 30 days or more
past due/loans(5)
|
|
0.30 %
|
0.36 %
|
0.37 %
|
0.13 %
|
0.07 %
|
|
Net charge-offs/average
loans(5) (YTD annualized)
|
|
0.07 %
|
0.03 %
|
0.00 %
|
0.01 %
|
0.03 %
|
|
Allowance for credit
losses/loans(5)
|
|
1.11 %
|
1.11 %
|
1.13 %
|
1.16 %
|
1.16 %
|
|
Allowance for credit
losses/nonaccrual loans
|
|
357.95 %
|
1,109.13 %
|
1,026.58 %
|
953.25 %
|
1,363.11 %
|
|
[Footnotes to table
located on page 6]
|
|
INCOME STATEMENTS
– Unaudited
|
|
|
|
Quarter
Ended
|
|
|
Jun
30
|
Mar
31
|
Dec
31
|
Sept
30
|
Jun
30
|
|
(in thousands, except
per share data)
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
|
Interest
income
|
|
|
|
|
|
|
|
Loans
|
$
|
46,545
|
45,605
|
44,758
|
43,542
|
41,089
|
|
Investment
securities
|
|
1,418
|
1,478
|
1,674
|
1,470
|
706
|
|
Federal funds
sold
|
|
2,583
|
1,280
|
2,703
|
2,435
|
891
|
|
Total interest
income
|
|
50,546
|
48,363
|
49,135
|
47,447
|
42,686
|
|
Interest
expense
|
|
|
|
|
|
|
|
Deposits
|
|
28,216
|
26,932
|
27,127
|
25,130
|
25,937
|
|
Borrowings
|
|
2,802
|
2,786
|
2,948
|
2,972
|
1,924
|
|
Total interest
expense
|
|
31,018
|
29,718
|
30,075
|
28,102
|
23,861
|
|
Net interest
income
|
|
19,528
|
18,645
|
19,060
|
19,345
|
18,825
|
|
Provision (reversal)
for credit losses
|
|
500
|
(175)
|
(975)
|
(500)
|
910
|
|
Net interest income
after provision for credit losses
|
|
19,028
|
18,820
|
20,035
|
19,845
|
17,915
|
|
Noninterest
income
|
|
|
|
|
|
|
|
Mortgage banking
income
|
|
1,923
|
1,164
|
868
|
1,208
|
1,337
|
|
Service fees on deposit
accounts
|
|
423
|
387
|
371
|
356
|
331
|
|
ATM and debit card
income
|
|
587
|
544
|
565
|
588
|
536
|
|
Income from bank owned
life insurance
|
|
384
|
377
|
361
|
349
|
338
|
|
Other income
|
|
206
|
192
|
165
|
248
|
194
|
|
Total
noninterest income
|
|
3,523
|
2,664
|
2,330
|
2,749
|
2,736
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
11,290
|
10,857
|
9,401
|
10,231
|
10,287
|
|
Occupancy
|
|
2,552
|
2,557
|
2,718
|
2,562
|
2,518
|
|
Outside service and
data processing costs
|
|
1,962
|
1,846
|
2,000
|
1,744
|
1,705
|
|
Insurance
|
|
965
|
955
|
937
|
1,243
|
897
|
|
Professional
fees
|
|
582
|
618
|
581
|
504
|
751
|
|
Marketing
|
|
389
|
369
|
364
|
293
|
335
|
|
Other
|
|
903
|
898
|
1,027
|
725
|
900
|
|
Total
noninterest expenses
|
|
18,643
|
18,100
|
17,028
|
17,302
|
17,393
|
|
Income before provision
for income taxes
|
|
3,908
|
3,384
|
5,337
|
5,293
|
3,258
|
|
Income tax
expense
|
|
909
|
862
|
1,170
|
1,195
|
800
|
|
Net income available
to common shareholders
|
$
|
2,999
|
2,522
|
4,167
|
4,098
|
2,458
|
|
|
|
|
|
|
|
|
Earnings per common
share – Basic
|
$
|
0.37
|
0.31
|
0.51
|
0.51
|
0.31
|
|
Earnings per common
share – Diluted
|
|
0.37
|
0.31
|
0.51
|
0.51
|
0.31
|
|
Basic weighted average
common shares
|
|
8,126
|
8,110
|
8,056
|
8,053
|
8,051
|
|
Diluted weighted
average common shares
|
|
8,141
|
8,142
|
8,080
|
8,072
|
8,069
|
|
[Footnotes to table
located on page 6]
|
Net income for the second quarter of 2024 was $3.0 million, or $0.37 per diluted share, a $477 thousand increase from the first quarter of
2024 and a $541 thousand increase
from the second quarter of 2023. Net interest income
increased $883 thousand during the
second quarter of 2024, compared to the first quarter of 2024, and
increased $703 thousand, compared to
the second 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.
The provision for credit losses was $500
thousand for the second quarter of 2024, compared to a
reversal of $175 thousand during the
first quarter of 2024. The second quarter provision for
credit losses includes a $750
thousand provision related to the loan portfolio which was
driven by an increase in the level of charge-offs we experienced
during the quarter, combined with an increase in the specific
reserve on individually assessed loans. In addition, the provision
for credit losses includes a $250
thousand reversal in the provision for unfunded commitments
due to a decrease in the balance of unfunded commitments at
June 30, 2024.
Noninterest income was $3.5
million for the second quarter of 2024, compared to
$2.7 million for the first quarter of
2024. Mortgage banking income continues to be the largest component
of our noninterest income at $1.9
million for the second quarter of 2024 compared to
$1.2 million for the first quarter of
2024.
Noninterest expense for the second quarter of 2024 was
$18.6 million, a $543 thousand increase from the first quarter of
2024. The increase in noninterest expense from the previous quarter
was driven by an increase in compensation and benefits expense as
well as an increase in outside service and data processing costs.
The increase in compensation and benefits expenses was due
primarily to an increase in salaries and commissions expense, while
the increase in outside service and data processing costs was
driven by an increase in software licensing and maintenance
costs.
Our effective tax rate was 23.3% for the second quarter of 2024
as compared to 25.5% for the first quarter of 2024. The lower tax
rate in the second quarter of 2024 was primarily related to the
effect of equity compensation transactions during the quarter.
|
NET INTEREST INCOME
AND MARGIN - Unaudited
|
|
|
|
For the Three Months Ended
|
|
June 30, 2024
|
March 31, 2024
|
June 30, 2023
|
|
(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
|
$ 186,584
|
$ 2,583
|
5.57 %
|
$ 89,969
|
$ 1,280
|
5.71 %
|
$ 71,004
|
$ 891
|
5.03 %
|
|
Investment
securities, taxable
|
133,507
|
1,376
|
4.15 %
|
137,271
|
1,436
|
4.20 %
|
93,922
|
623
|
2.66 %
|
|
Investment
securities, nontaxable(2)
|
8,027
|
55
|
2.73 %
|
8,097
|
55
|
2.70 %
|
10,200
|
108
|
4.24 %
|
|
Loans(10)
|
3,645,595
|
46,545
|
5.14 %
|
3,622,972
|
45,605
|
5.05 %
|
3,511,225
|
41,089
|
4.69 %
|
|
Total interest-earning assets
|
3,973,713
|
50,559
|
5.12 %
|
3,858,309
|
48,376
|
5.03 %
|
3,686,351
|
42,711
|
4.65 %
|
|
Noninterest-earning assets
|
165,093
|
|
|
159,813
|
|
|
155,847
|
|
|
|
Total assets
|
$4,138,806
|
|
|
$4,018,122
|
|
|
$3,842,198
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
NOW accounts
|
$
302,881
|
621
|
0.82 %
|
$
295,774
|
660
|
0.90 %
|
$
297,234
|
537
|
0.72 %
|
|
Savings & money
market
|
1,611,991
|
16,324
|
4.07 %
|
1,620,521
|
16,299
|
4.03 %
|
1,727,009
|
15,298
|
3.55 %
|
|
Time
deposits
|
898,878
|
11,271
|
5.04 %
|
801,734
|
9,973
|
4.99 %
|
573,095
|
6,102
|
4.27 %
|
|
Total interest-bearing
deposits
|
2,813,750
|
28,216
|
4.03 %
|
2,718,029
|
26,932
|
3.97 %
|
2,597,338
|
21,937
|
3.39 %
|
|
FHLB advances and other
borrowings
|
240,000
|
2,247
|
3.77 %
|
241,319
|
2,229
|
3.71 %
|
135,922
|
1,382
|
4.08 %
|
|
Subordinated
debentures
|
36,360
|
555
|
6.14 %
|
36,333
|
557
|
6.15 %
|
36,251
|
542
|
6.00 %
|
|
Total interest-bearing
liabilities
|
3,090,110
|
31,018
|
4.04 %
|
2,995,681
|
29,718
|
3.98 %
|
2,769,511
|
23,861
|
3.46 %
|
|
Noninterest-bearing
liabilities
|
731,843
|
|
|
707,890
|
|
|
771,388
|
|
|
|
Shareholders'
equity
|
316,853
|
|
|
314,551
|
|
|
301,299
|
|
|
|
Total liabilities and
shareholders' equity
|
$4,138,806
|
|
|
$4,018,122
|
|
|
$3,842,198
|
|
|
|
Net interest
spread
|
|
|
1.08 %
|
|
|
1.05 %
|
|
|
1.19 %
|
|
Net interest income
(tax equivalent) / margin
|
|
$19,541
|
1.98 %
|
|
$18,658
|
1.94 %
|
|
$18,850
|
2.05 %
|
|
Less:
tax-equivalent adjustment(2)
|
|
13
|
|
|
13
|
|
|
25
|
|
|
Net interest
income
|
|
$19,528
|
|
|
$18,645
|
|
|
$18,825
|
|
|
[Footnotes to table
located on page 6]
|
Net interest income was $19.5
million for the second quarter of 2024, an $883 thousand increase from the first quarter of
2024, driven by a $2.2 million
increase in interest income, on a tax-equivalent basis, partially
offset by a $1.3 million increase in
interest expense. The increase in interest income was driven by a
$96.6 million increase in average
federal funds sold and interest-bearing deposit balances, combined
with a higher yield on our loan portfolio. Our net interest margin,
on a tax-equivalent basis, was 1.98% for the second quarter of
2024, a four-basis point increase from 1.94% for the first quarter
of 2024. During the second quarter of 2024, the yield on our
loan portfolio increased by nine-basis points, while the cost of
our interest-bearing deposits increased by only six-basis points,
as compared to the first quarter of 2024, resulting in an increase
in net interest margin for the period. In addition, our
non-interest bearing deposits increased 6.94%, on an annualized
basis, during the second quarter of 2024.
|
BALANCE SHEETS
- Unaudited
|
|
|
|
Ending
Balance
|
|
|
June
30
|
March
31
|
December
31
|
September
30
|
June
30
|
|
(in thousands, except
per share data)
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Cash and due
from banks
|
$
|
21,567
|
13,925
|
28,020
|
17,395
|
24,742
|
|
Federal funds
sold
|
|
164,432
|
144,595
|
119,349
|
127,714
|
170,145
|
|
Interest-bearing
deposits with banks
|
|
8,828
|
8,789
|
8,801
|
7,283
|
10,183
|
|
Total cash and cash equivalents
|
|
194,827
|
167,309
|
156,170
|
152,392
|
205,070
|
|
Investment
securities:
|
|
|
|
|
|
|
|
Investment
securities available for sale
|
|
121,353
|
125,996
|
134,702
|
144,035
|
91,548
|
|
Other
investments
|
|
18,653
|
18,499
|
19,939
|
19,600
|
12,550
|
|
Total investment securities
|
|
140,006
|
144,495
|
154,641
|
163,635
|
104,098
|
|
Mortgage loans held for
sale
|
|
14,759
|
11,842
|
7,194
|
7,117
|
15,781
|
|
Loans
(5)
|
|
3,622,521
|
3,643,766
|
3,602,627
|
3,553,632
|
3,537,616
|
|
Less allowance for
credit losses
|
|
(40,157)
|
(40,441)
|
(40,682)
|
(41,131)
|
(41,105)
|
|
Loans, net
|
|
3,582,364
|
3,603,325
|
3,561,945
|
3,512,501
|
3,496,511
|
|
Bank owned life
insurance
|
|
53,263
|
52,878
|
52,501
|
52,140
|
51,791
|
|
Property and equipment,
net
|
|
91,533
|
93,007
|
94,301
|
95,743
|
96,964
|
|
Deferred income
taxes
|
|
12,339
|
12,321
|
12,200
|
13,078
|
12,356
|
|
Other assets
|
|
20,758
|
20,527
|
16,837
|
23,351
|
19,536
|
|
Total assets
|
$
|
4,109,849
|
4,105,704
|
4,055,789
|
4,019,957
|
4,002,107
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposits
|
$
|
3,459,869
|
3,460,681
|
3,379,564
|
3,347,771
|
3,433,018
|
|
FHLB
Advances
|
|
240,000
|
240,000
|
275,000
|
275,000
|
180,000
|
|
Subordinated
debentures
|
|
36,376
|
36,349
|
36,322
|
36,295
|
36,268
|
|
Other
liabilities
|
|
54,856
|
53,418
|
52,436
|
56,993
|
51,307
|
|
Total liabilities
|
|
3,791,101
|
3,790,448
|
3,743,322
|
3,716,059
|
3,700,593
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Preferred stock - $.01
par value; 10,000,000 shares authorized
|
|
-
|
-
|
-
|
-
|
-
|
|
Common Stock - $.01 par
value; 20,000,000 shares authorized
|
|
82
|
82
|
81
|
81
|
81
|
|
Nonvested restricted
stock
|
|
(4,710)
|
(5,257)
|
(3,596)
|
(4,065)
|
(4,051)
|
|
Additional paid-in
capital
|
|
124,174
|
124,159
|
121,777
|
121,757
|
120,912
|
|
Accumulated other
comprehensive loss
|
|
(11,866)
|
(11,797)
|
(11,342)
|
(15,255)
|
(12,710)
|
|
Retained
earnings
|
|
211,068
|
208,069
|
205,547
|
201,380
|
197,282
|
|
Total shareholders' equity
|
|
318,748
|
315,256
|
312,467
|
303,898
|
301,514
|
|
Total liabilities and shareholders' equity
|
$
|
4,109,849
|
4,105,704
|
4,055,789
|
4,019,957
|
4,002,107
|
|
Common
Stock
|
|
|
|
|
|
|
|
Book value per common
share
|
$
|
39.09
|
38.65
|
38.63
|
37.57
|
37.42
|
|
Stock price:
|
|
|
|
|
|
|
|
High
|
|
30.36
|
38.71
|
37.15
|
30.18
|
31.34
|
|
Low
|
|
25.70
|
29.80
|
25.16
|
24.22
|
21.33
|
|
Period
end
|
|
29.24
|
31.76
|
37.10
|
26.94
|
24.75
|
|
Common shares
outstanding
|
|
8,155
|
8,156
|
8,088
|
8,089
|
8,058
|
|
[Footnotes to table
located on page 6]
|
|
ASSET QUALITY
MEASURES - Unaudited
|
|
|
|
Quarter
Ended
|
|
|
June
30
|
March
31
|
December
31
|
September
30
|
June
30
|
|
(dollars in
thousands)
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
|
Nonperforming
Assets
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
Non-owner
occupied RE
|
$
|
7,949
|
1,410
|
1,423
|
1,615
|
754
|
|
Commercial
business
|
|
829
|
488
|
319
|
404
|
137
|
|
Consumer
|
|
|
|
|
|
|
|
Real
estate
|
|
1,875
|
1,380
|
985
|
1,228
|
1,053
|
|
Home
equity
|
|
565
|
367
|
1,236
|
1,068
|
1,072
|
|
Other
|
|
-
|
1
|
-
|
-
|
-
|
|
Total nonaccrual
loans
|
|
11,218
|
3,646
|
3,963
|
4,315
|
3,016
|
|
Other real estate
owned
|
|
-
|
-
|
-
|
-
|
-
|
|
Total nonperforming
assets
|
$
|
11,218
|
3,646
|
3,963
|
4,315
|
3,016
|
|
Nonperforming assets as
a percentage of:
|
|
|
|
|
|
|
|
Total
assets
|
|
0.27 %
|
0.09 %
|
0.10 %
|
0.11 %
|
0.08 %
|
|
Total
loans
|
|
0.31 %
|
0.10 %
|
0.11 %
|
0.12 %
|
0.09 %
|
|
Classified assets/tier
1 capital plus allowance for credit losses
|
|
4.22 %
|
3.99 %
|
4.25 %
|
4.72 %
|
4.68 %
|
|
|
Quarter
Ended
|
|
|
June
30
|
March
31
|
December
31
|
September
30
|
June
30
|
|
(dollars in
thousands)
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
|
Allowance for Credit
Losses
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
|
40,441
|
40,682
|
41,131
|
41,105
|
40,435
|
|
Loans
charged-off
|
|
(1,049)
|
(424)
|
(119)
|
(42)
|
(440)
|
|
Recoveries of loans
previously charged-off
|
|
15
|
183
|
310
|
168
|
15
|
|
Net loans
(charged-off) recovered
|
|
(1,034)
|
(241)
|
191
|
126
|
(425)
|
|
Provision for (reversal
of) credit losses
|
|
750
|
-
|
(640)
|
(100)
|
1,095
|
|
Balance, end of
period
|
$
|
40,157
|
40,441
|
40,682
|
41,131
|
41,105
|
|
Allowance for credit
losses to gross loans
|
|
1.11 %
|
1.11 %
|
1.13 %
|
1.16 %
|
1.16 %
|
|
Allowance for credit
losses to nonaccrual loans
|
|
357.95 %
|
1,109.13 %
|
1,026.58 %
|
953.25 %
|
1,363.11 %
|
|
Net charge-offs
(recoveries) to average loans QTD (annualized)
|
|
0.11 %
|
0.03 %
|
(0.02 %)
|
(0.01 %)
|
0.05 %
|
Total nonperforming assets increased by $7.6 million during the second quarter of 2024,
and represented 0.27% of total assets, an increase compared to
0.09% for the first quarter of 2024. The increase in nonperforming
assets was driven by four new relationships, totaling $8.0 million, placed on nonaccrual during the
second quarter of 2024, with one commercial relationship totaling
$6.9 million related to the assisted
living industry. In addition, our classified asset ratio increased
to 4.22% for the second quarter of 2024 from 3.99% in the first
quarter of 2024.
At June 30, 2024, the allowance
for credit losses was $40.2 million,
or 1.11% of total loans, compared to $40.4
million, or 1.11% of total loans at March 31, 2024. We had net charge-offs of
$1.0 million, or 0.11% annualized,
for the second quarter of 2024, compared to net charge-offs of
$241 thousand, or 0.03% annualized,
for the first quarter of 2024. We recorded a $750 thousand provision for credit losses related
to the loan portfolio during the second quarter of 2024, compared
to no provision related to the loan portfolio for the first quarter
of 2024.
|
LOAN COMPOSITION
- Unaudited
|
|
|
|
Quarter Ended
|
|
|
June
30
|
March
31
|
December
31
|
September
30
|
June
30
|
|
(dollars in
thousands)
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
|
Commercial
|
|
|
|
|
|
|
|
Owner occupied
RE
|
$
|
642,008
|
631,047
|
631,657
|
637,038
|
613,874
|
|
Non-owner occupied
RE
|
|
917,034
|
944,530
|
942,529
|
937,749
|
951,536
|
|
Construction
|
|
144,968
|
157,464
|
150,680
|
119,629
|
115,798
|
|
Business
|
|
527,017
|
520,073
|
500,161
|
500,253
|
511,719
|
|
Total commercial
loans
|
|
2,231,027
|
2,253,114
|
2,225,027
|
2,194,669
|
2,192,927
|
|
Consumer
|
|
|
|
|
|
|
|
Real estate
|
|
1,126,155
|
1,101,573
|
1,082,429
|
1,074,679
|
1,047,904
|
|
Home equity
|
|
189,294
|
184,691
|
183,004
|
180,856
|
185,584
|
|
Construction
|
|
32,936
|
53,216
|
63,348
|
54,210
|
61,044
|
|
Other
|
|
43,109
|
51,172
|
48,819
|
49,218
|
50,157
|
|
Total consumer
loans
|
|
1,391,494
|
1,390,652
|
1,377,600
|
1,358,963
|
1,344,689
|
|
Total gross loans, net
of deferred fees
|
|
3,622,521
|
3,643,766
|
3,602,627
|
3,553,632
|
3,537,616
|
|
Less—allowance for
credit losses
|
|
(40,157)
|
(40,441)
|
(40,682)
|
(41,131)
|
(41,105)
|
|
Total loans,
net
|
$
|
3,582,364
|
3,603,325
|
3,561,945
|
3,512,501
|
3,496,511
|
|
DEPOSIT COMPOSITION
- Unaudited
|
|
|
|
Quarter Ended
|
|
|
June
30
|
March
31
|
December
31
|
September
30
|
June
30
|
|
(dollars in
thousands)
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
|
Non-interest
bearing
|
$
|
683,291
|
671,708
|
674,167
|
675,409
|
698,084
|
|
Interest
bearing:
|
|
|
|
|
|
|
|
NOW
accounts
|
|
293,875
|
293,064
|
310,218
|
306,667
|
308,762
|
|
Money
market accounts
|
|
1,562,786
|
1,603,796
|
1,605,278
|
1,685,736
|
1,692,900
|
|
Savings
|
|
28,739
|
32,248
|
31,669
|
34,737
|
36,243
|
|
Time, less
than $250,000
|
|
219,532
|
206,657
|
190,167
|
125,506
|
114,691
|
|
Time and
out-of-market deposits, $250,000 and over
|
|
671,646
|
653,208
|
568,065
|
519,716
|
582,338
|
|
Total
deposits
|
$
|
3,459,869
|
3,460,681
|
3,379,564
|
3,347,771
|
3,433,018
|
|
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
$671,646,000.
|
|
(7) June 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 $4.1 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," "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.