Exhibit 99.1

Southern First Reports Results for 2016

Greenville, South Carolina, January 24, 2017 – Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today reported net income available to the common shareholders of $3.3 million, or $0.49 per diluted share, for the fourth quarter of 2016. In comparison, net income available to common shareholders was $2.9 million, or $0.43 per diluted share, for the fourth quarter of 2015. For the year ended December 31, 2016, net income to common shareholders was $13.0 million, or $1.94 per diluted share. In comparison, net income available to common shareholders for the year ended December 31, 2015 was $10.2 million, or $1.55 per diluted share.

“I am proud of our 2016 accomplishments of our Southern First team as we generated record earnings of $13.0 million and experienced significant growth in loans, core deposits and mortgage fee income,” stated Art Seaver, the Company’s Chief Executive Officer. “We also recently received regulatory approval to open our new office in the Triangle region of North Carolina and carry great momentum going into the new year.”

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Operating Results
Net interest margin for the fourth quarter of 2016 was 3.63%, compared to 3.63% for the prior quarter and 3.48% for the fourth quarter of 2015. During the fourth quarter of 2016, our average interest-earning assets increased by $85.0 million, compared to the fourth quarter of 2015, while the yield on our interest-earning assets increased by 14 basis points due to a higher level of low-yielding federal funds sold during the 2015 period. In comparison, our average interest-bearing liabilities increased by $36.8 million during the fourth quarter of 2016, compared to the fourth quarter of 2015, with the respective cost increasing by two basis points.

Noninterest income was $2.1 million and $2.0 million for the three months ended December 31, 2016 and 2015, respectively. For the year ended December 31, 2016 and 2015, noninterest income was $10.8 million and $8.4 million, respectively. The increase in noninterest income during the three and twelve month periods ended December 31, 2016 relates primarily to increases in mortgage banking income, service fees on deposit accounts and other income. Specifically, mortgage banking income was $1.2 million and $1.1 million for the three months ended December 31, 2016 and 2015, respectively, and $6.8 million and $5.0 million for the twelve months ended December 31, 2016 and 2015, respectively. During the second quarter of 2016, we transitioned to mandatory delivery of mortgage loans which increased the profit margin we receive on mortgage originations. In addition, our mortgage production volume increased during the 2016 periods as compared to 2015.

Noninterest expense was $8.0 million and $7.2 million for the three months ended December 31, 2016 and 2015, respectively, and $31.2 million and $28.2 million for the twelve months ended December 31, 2016 and 2015, respectively. The increase in noninterest expense during the three and twelve month periods ended December 31, 2016 relates primarily to increases in compensation and benefits, occupancy, other real estate owned expenses, and professional fees. Included in noninterest expense are mortgage banking expenses of $980 thousand and $746 thousand for the three months ended December 31, 2016 and 2015, respectively, and $4.5 million and $3.4 million for the year ended December 31, 2016 and 2015, respectively.

During the three months ended December 31, 2016, we recorded total credit costs of $765 thousand, including a $275 thousand provision for loan losses and $490 thousand expenses related to the sale and management of other real estate owned. In addition, we had a net recovery for the fourth quarter of 2016 of $102 thousand. During the three months ended December 31, 2015, our total credit costs were $839 thousand, including a $700 thousand provision for loan losses and $139 thousand expenses related to the sale and management of other real estate owned. Net loan charge-offs for the fourth quarter of 2015 were $439 thousand, or 0.17% of average loans, annualized. For the year ended December 31, 2016 and 2015, total credit costs were $3.5 million and $4.3 million, respectively. Our allowance for loan losses was $14.9 million, or 1.28% of loans, at December 31, 2016 which provides approximately 271% coverage of nonaccrual loans, compared to $13.6 million, or 1.36% of loans, and approximately 206% coverage of nonaccrual loans at December 31, 2015.

Nonperforming assets were $6.1 million, or 0.46% of total assets, as of December 31, 2016. Comparatively, nonperforming assets were $9.1 million, or 0.75% of total assets, at December 31, 2015. Of the $6.1 million in total nonperforming assets as of December 31, 2016, nonperforming loans represent $5.5 million and other real estate owned represents $639 thousand. Classified assets improved to 13% of tier 1 capital plus the allowance for loan losses at December 31, 2016, compared to 17% at December 31, 2015.

Gross loans were $1.164 billion, excluding mortgage loans held for sale, as of December 31, 2016, compared to $1.005 billion at December 31, 2015. Core deposits, which exclude out-of-market deposits and time deposits of $250,000 or more, increased to $937.5 million at December 31, 2016 compared to $864.3 million at December 31, 2015.

Shareholders’ equity totaled $108.9 million as of December 31, 2016, compared to $94.2 million at December 31, 2015. As of December 31, 2016, our capital ratios continue to exceed the regulatory requirements for a “well capitalized” institution.

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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 Bancshares has been providing financial services since 1999 and now operates in ten locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as Raleigh, North Carolina. Southern First Bancshares has assets of approximately $1.3 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.

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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