Attached files
file | filename |
---|---|
8-K - CURRENT REPORT - SOUTHERN FIRST BANCSHARES INC | southern3371081-8k.htm |
Exhibit 99.1
Southern First Reports Results for 2017 |
Greenville, South Carolina, January 23, 2018 – Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today reported net income available to common shareholders of $2.1 million, or $0.27 per diluted share, for the fourth quarter of 2017. In comparison, net income available to common shareholders was $3.3 million, or $0.49 per diluted share, for the fourth quarter of 2016. For the year ended December 31, 2017, net income to common shareholders was $13.0 million, or $1.76 per diluted share, compared to net income to common shareholders of $13.0 million, or $1.94 per diluted share for the year ended December 31, 2016. Included in net income available to common shareholders for the 2017 periods, is $2.4 milliona, or $0.32 per diluted share, of income tax expense related to the revaluation of our deferred tax asset as a result of the Tax Cuts and Jobs Act (“Tax Act”). Excluding the deferred tax adjustment, net income was $4.5 million and $15.5 million, or $0.59 and $2.10 per diluted share, for the three and twelve months ended December 31, 2017.
● |
Net income to common shareholders of $2.1 million for Q4 2017, compared to $3.3 million for Q4 2016 |
● |
Total loans increased 19% to $1.39 billion at Q4 2017, compared to $1.16 billion at Q4 2016 |
● |
Total deposits increased 27% to $1.38 billion at Q4 2017, compared to $1.09 billion at Q4 2016 |
● |
Efficiency ratio improved to 54.6% for Q4 2017, compared to 59.6% for Q4 2016 |
● |
Deferred tax asset adjustment of $2.44 million due to new federal corporate tax rate of 21% |
“I am proud of our Southern First team and our accomplishments in 2017 as we report record growth in both loans and deposits for the year,” stated Art Seaver, the company’s Chief Executive Officer. “We have made tremendous progress in building client relationships and telling our story through our expansion to the Atlanta region and relocation of our Raleigh office to its permanent location. We are heading into the new year with significant momentum throughout our company.”
Quarter Ended | |||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||
2017 | 2017 | 2017 | 2017 | 2016 | |||||||
Earnings ($ in thousands, except per share data): | |||||||||||
Net income available to common shareholders | $ | 2,080 | 4,250 | 3,604 | 3,112 | 3,291 | |||||
Earnings per common share, diluted | 0.27 | 0.55 | 0.49 | 0.46 | 0.49 | ||||||
Total revenue(1) | 15,789 | 15,851 | 14,915 | 13,658 | 13,423 | ||||||
Net interest margin (tax-equivalent)(2) | 3.59% | 3.60% | 3.49% | 3.61% | 3.63% | ||||||
Return on average assets(3) | 0.52% | 1.09% | 0.97% | 0.92% | 1.00% | ||||||
Return on average equity(3) | 5.50% | 11.60% | 10.92% | 11.27% | 12.14% | ||||||
Efficiency ratio(4) | 54.61% | 55.55% | 58.75% | 61.21% | 59.64% | ||||||
Balance Sheet ($ in thousands): | |||||||||||
Total Loans(5) | $ | 1,387,070 | 1,327,739 | 1,299,827 | 1,218,680 | 1,163,644 | |||||
Total deposits | 1,381,123 | 1,342,577 | 1,297,911 | 1,211,274 | 1,091,151 | ||||||
Core deposits(6) | 1,221,363 | 1,160,906 | 1,085,687 | 1,001,069 | 937,492 | ||||||
Total assets | 1,624,625 | 1,557,684 | 1,539,226 | 1,467,938 | 1,340,908 | ||||||
Holding Company Capital Ratios(7): | |||||||||||
Total risk-based capital ratio | 13.27% | 13.58% | 13.42% | 11.93% | 12.11% | ||||||
Tier 1 risk-based capital ratio | 12.11% | 12.38% | 12.21% | 10.68% | 10.86% | ||||||
Leverage ratio | 10.26% | 10.36% | 10.43% | 9.21% | 9.42% | ||||||
Common equity tier 1 ratio(8) | 11.15% | 11.37% | 11.19% | 9.58% | 9.71% | ||||||
Tangible common equity(9) | 9.21% | 9.47% | 9.27% | 7.74% | 8.19% | ||||||
Asset Quality Ratios: | |||||||||||
Nonperforming assets as a percentage of total assets | 0.46% | 0.39% | 0.37% | 0.47% | 0.46% | ||||||
Net charge-offs as a percentage of average loans(5) (YTD annualized) | 0.10% | 0.08% | 0.07% | 0.02% | 0.10% | ||||||
Allowance for loan losses as a percentage of loans(5) | 1.12% | 1.17% | 1.19% | 1.25% | 1.28% | ||||||
Allowance for loan losses as a percentage of nonaccrual loans | 212.60% | 278.05% | 293.75% | 247.43% | 270.95% |
1
Operating Results
Net interest margin for the fourth quarter of 2017 was 3.59%, compared to 3.63% for the fourth quarter of 2016. During the fourth quarter of 2017, our average interest-earning assets increased by $262.6 million, compared to the fourth quarter of 2016, while the yield on our interest-earning assets remained stable. In comparison, our average interest-bearing liabilities increased by $176.1 million during the fourth quarter of 2017, compared to the fourth quarter of 2016, while the cost of these liabilities increased by seven basis points. The increase in the cost of our interest-bearing liabilities drove the four basis point decrease in the net interest margin for the 2017 period as compared to 2016.
Noninterest income was $2.2 million and $2.1 million for the three months ended December 31, 2017 and 2016, respectively. For the year ended December 30, 2017 and 2016, noninterest income was $9.3 million and $10.8 million, respectively. The decrease in noninterest income during the twelve-month period ended December 31, 2017 relates primarily to a decrease in mortgage banking revenue during the 2017 periods, combined with a $431 thousand gain on sale of investment securities in the first quarter of 2016. Specifically, mortgage banking revenue was $1.1 million and $5.2 million for the three and twelve months ended December 31, 2017, respectively, and $1.2 million and $6.8 million for the three and twelve months ended December 31, 2016, respectively.
Noninterest expense was $8.6 million and $8.0 million for the three months ended December 31, 2017 and 2016, respectively, and $34.6 million and $31.2 million for the twelve months ended December 31, 2017 and 2016, respectively. The increase in noninterest expense during the three- and twelve-month periods ended December 31, 2017 relates primarily to increases in compensation and benefits, occupancy, and outside service and data processing costs, partially offset by a decrease in real estate owned expenses. Included in noninterest expense are mortgage banking expenses of $884 thousand and $3.7 million for the three and twelve months ended December 31, 2017, respectively, and $980 thousand and $4.5 million for the three and twelve months ended December 31, 2016, respectively.
During the three months ended December 31, 2017, we recorded total credit costs of $690 thousand, including a $500 thousand provision for loan losses and $190 thousand of expenses related to the sale and management of other real estate owned. In addition, we had net charge-offs for the fourth quarter of 2017 of $556 thousand, or 0.17% of average loans, annualized. During the three months ended December 31, 2016, our total credit costs were $765 thousand, including a $275 thousand provision for loan losses and $490 thousand of expenses related to the sale and management of other real estate owned. Net loan recoveries for the fourth quarter of 2016 were $102 thousand. For the year ended December 31, 2017 and 2016, total credit costs were $2.2 million and $3.5 million, respectively. Our allowance for loan losses was $15.5 million, or 1.12% of loans, at December 31, 2017, which provides approximately 213% coverage of nonaccrual loans, compared to $14.9 million, or 1.28% of loans, and approximately 271% coverage of nonaccrual loans at December 31, 2016.
Nonperforming assets were $7.5 million, or 0.46% of total assets, as of December 31, 2017. Comparatively, nonperforming assets were $6.1 million, or 0.46% of total assets, at December 31, 2016. Of the $7.5 million in total nonperforming assets as of December 31, 2017, nonperforming loans represent $7.3 million and other real estate owned represents $242 thousand. Classified assets improved to 10% of tier 1 capital plus the allowance for loan losses at December 31, 2017, compared to 13% at December 31, 2016.
Gross loans were $1.4 billion, excluding mortgage loans held for sale, as of December 31, 2017, compared to $1.2 billion at December 31, 2016. Core deposits, which exclude out-of-market deposits and time deposits of $250,000 or more, increased to $1.2 billion at December 31, 2017 compared to $937.5 million at December 31, 2016.
Shareholders’ equity totaled $149.7 million as of December 31, 2017, compared to $109.9 million at December 31, 2016. As of December 31, 2017, our capital ratios continue to exceed the regulatory requirements for a “well capitalized” institution.
2
FINANCIAL HIGHLIGHTS - Unaudited | |||||||||||||||
Quarter Ended | 4th Qtr | Twelve Months Ended | YTD | ||||||||||||
December 31 | 2017-2016 | December 31 | 2017-2016 | ||||||||||||
(in thousands, except per share data) | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||
Earnings Summary | |||||||||||||||
Interest income | $ | 16,364 | 13,447 | 21.7 | % | 61,209 | 51,191 | 19.6 | % | ||||||
Interest expense | 2,756 | 2,148 | 28.3 | % | 10,333 | 8,192 | 26.1 | % | |||||||
Net interest income | 13,608 | 11,299 | 20.4 | % | 50,876 | 42,999 | 18.3 | % | |||||||
Provision for loan losses | 500 | 275 | 81.8 | % | 2,000 | 2,300 | (13.0 | )% | |||||||
Noninterest income | 2,181 | 2,124 | 2.7 | % | 9,337 | 10,846 | (13.9 | )% | |||||||
Noninterest expense | 8,623 | 8,006 | 7.7 | % | 34,552 | 31,176 | 10.8 | % | |||||||
Income before provision for income taxes | 6,666 | 5,142 | 29.6 | % | 23,661 | 20,369 | 16.2 | % | |||||||
Income tax expense | 4,586 | 1,851 | 147.8 | % | 10,616 | 7,333 | 44.8 | % | |||||||
Net income available to common shareholders | $ | 2,080 | 3,291 | (36.8 | )% | 13,045 | 13,036 | 0.1 | % | ||||||
Basic weighted average common shares | 7,304 | 6,376 | 14.6 | % | 7,006 | 6,318 | 10.9 | % | |||||||
Diluted weighted average common shares | 7,697 | 6,776 | 13.6 | % | 7,393 | 6,721 | 10.0 | % | |||||||
Earnings per common share – Basic | $ | 0.29 | 0.52 | (44.2 | )% | 1.86 | 2.06 | (9.7 | )% | ||||||
Earnings per common share – Diluted | 0.27 | 0.49 | (44.9 | )% | 1.76 | 1.94 | (9.3 | )% |
Quarter Ended | 4th Qtr | Quarter Ended | ||||||||||||
December 31 | 2017-2016 | September 30 | June 30 | March 31 | ||||||||||
(in thousands, except per share data) | 2017 | 2016 | % Change | 2017 | 2017 | 2017 | ||||||||
Balance Sheet Highlights | ||||||||||||||
Assets | $ | 1,624,625 | 1,340,908 | 21.2 | % | 1,557,684 | 1,539,226 | 1,467,938 | ||||||
Investment securities | 72,065 | 70,222 | 2.6 | % | 81,504 | 85,410 | 68,359 | |||||||
Mortgage loans held for sale | 11,790 | 7,801 | 51.1 | % | 9,124 | 11,480 | 7,452 | |||||||
Loans | 1,387,070 | 1,163,644 | 19.2 | % | 1,327,739 | 1,299,829 | 1,218,680 | |||||||
Allowance for loan losses | 15,523 | 14,855 | 4.5 | % | 15,579 | 15,444 | 15,287 | |||||||
Other real estate owned | 242 | 639 | (62.1 | )% | 420 | 428 | 669 | |||||||
Noninterest bearing deposits | 295,680 | 235,538 | 25.5 | % | 272,758 | 271,669 | 253,320 | |||||||
Interest bearing deposits | 1,085,443 | 855,613 | 26.9 | % | 1,069,819 | 1,026,242 | 957,954 | |||||||
Total deposits | 1,381,123 | 1,091,151 | 26.6 | % | 1,342,577 | 1,297,911 | 1,211,274 | |||||||
Other borrowings | 67,200 | 115,200 | (41.7 | )% | 39,200 | 73,200 | 117,700 | |||||||
Junior subordinated debentures | 13,403 | 13,403 | - | 13,403 | 13,403 | 13,403 | ||||||||
Tangible common equity | 149,686 | 109,872 | 36.2 | % | 147,449 | 142,736 | 113,566 | |||||||
Total shareholders’ equity | 149,686 | 109,872 | 36.2 | % | 147,449 | 142,736 | 113,566 | |||||||
Common Stock | ||||||||||||||
Book value per common share | $ | 20.37 | 17.00 | 19.8 | % | 20.15 | 19.52 | 17.53 | ||||||
Stock price: | ||||||||||||||
High | 42.90 | 36.15 | 18.7 | % | 37.45 | 37.05 | 37.20 | |||||||
Low | 36.75 | 26.00 | 41.3 | % | 33.50 | 31.75 | 32.30 | |||||||
Period end | 41.25 | 36.00 | 14.6 | % | 36.35 | 37.05 | 32.65 | |||||||
Common shares outstanding | 7,348 | 6,464 | 13.7 | % | 7,319 | 7,314 | 6,480 | |||||||
Other | ||||||||||||||
Loans to deposits(5) | 100.43% | 106.64% | (5.8 | )% | 98.89% | 100.15% | 100.61% | |||||||
Team members | 198 | 179 | 10.6 | % | 198 | 199 | 184 | |||||||
Average Balances | ||||||||||||||
Loans(5) | $ | 1,351,355 | 1,134,613 | 19.1 | % | 1,314,061 | 1,250,077 | 1,206,088 | ||||||
Deposits | 1,369,547 | 1,062,634 | 28.9 | % | 1,328,481 | 1,263,844 | 1,119,043 | |||||||
Assets | 1,589,206 | 1,309,696 | 21.3 | % | 1,549,875 | 1,495,312 | 1,377,362 | |||||||
Equity | 149,928 | 107,832 | 39.0 | % | 145,294 | 132,380 | 111,966 |
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, 2017 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 loans held for sale. |
3
ASSET QUALITY MEASURES | |||||||||||
Quarter Ended | |||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||
(dollars in thousands) | 2017 | 2017 | 2017 | 2017 | 2016 | ||||||
Nonperforming Assets | |||||||||||
Commercial | |||||||||||
Owner occupied RE | $ | - | 244 | 245 | 266 | 276 | |||||
Non-owner occupied RE | 1,581 | 2,049 | 2,205 | 2,514 | 2,711 | ||||||
Construction | - | - | - | - | - | ||||||
Commercial business | 910 | 1,116 | 1,324 | 1,616 | 686 | ||||||
Consumer | |||||||||||
Real estate | 992 | 1,267 | 534 | 541 | 550 | ||||||
Home equity | 1,145 | 195 | 197 | 257 | 256 | ||||||
Construction | - | - | - | - | - | ||||||
Other | 1 | 2 | 4 | 5 | 13 | ||||||
Nonaccruing troubled debt restructurings | 2,673 | 730 | 749 | 979 | 990 | ||||||
Total nonaccrual loans | 7,302 | 5,603 | 5,258 | 6,178 | 5,482 | ||||||
Other real estate owned | 242 | 420 | 428 | 669 | 639 | ||||||
Total nonperforming assets | $ | 7,544 | 6,023 | 5,686 | 6,847 | 6,121 | |||||
Nonperforming assets as a percentage of: | |||||||||||
Total assets | 0.46 % | 0.39 % | 0.37 % | 0.47 % | 0.46 % | ||||||
Total loans | 0.54 % | 0.45 % | 0.44 % | 0.56 % | 0.53 % | ||||||
Accruing troubled debt restructurings | $ | 5,145 | 6,954 | 6,010 | 5,795 | 5,675 |
Quarter Ended | ||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||
(dollars in thousands) | 2017 | 2017 | 2017 | 2017 | 2016 | |||||||||||
Allowance for Loan Losses | ||||||||||||||||
Balance, beginning of period | $ | 15,579 | 15,444 | 15,287 | 14,855 | 14,478 | ||||||||||
Loans charged-off | (676 | ) | (399 | ) | (373 | ) | (190 | ) | (186 | ) | ||||||
Recoveries of loans previously charged-off | 120 | 34 | 30 | 122 | 288 | |||||||||||
Net loans charged-off | (556 | ) | (365 | ) | (343 | ) | (68 | ) | 102 | |||||||
Provision for loan losses | 500 | 500 | 500 | 500 | 275 | |||||||||||
Balance, end of period | $ | 15,523 | 15,579 | 15,444 | 15,287 | 14,855 | ||||||||||
Allowance for loan losses to gross loans | 1.12 % | 1.17 % | 1.19 % | 1.25 % | 1.28 | % | ||||||||||
Allowance for loan losses to nonaccrual loans | 212.60 % | 278.05 % | 293.75 % | 247.43 % | 270.95 | % | ||||||||||
Net charge-offs to average loans QTD (3) | 0.17 % | 0.11 % | 0.11 % | 0.02 % | (0.04 | )% |
LOAN COMPOSITION | ||||||||||||||||
Quarter Ended | ||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||
(dollars in thousands) | 2017 | 2017 | 2017 | 2017 | 2016 | |||||||||||
Commercial | ||||||||||||||||
Owner occupied RE | $ | 316,818 | 317,262 | 310,696 | 288,300 | 285,938 | ||||||||||
Non-owner occupied RE | 312,798 | 301,360 | 292,001 | 258,449 | 239,574 | |||||||||||
Construction |
51,179 | 32,332 | 42,447 | 36,889 | 33,393 | |||||||||||
Business | 226,158 | 214,898 | 212,703 | 208,590 | 202,552 | |||||||||||
Total commercial loans | 906,953 | 865,852 | 857,847 | 792,228 | 761,457 | |||||||||||
Consumer | ||||||||||||||||
Real estate | 273,050 | 250,483 | 233,401 | 230,695 | 215,588 | |||||||||||
Home equity | 156,141 | 150,371 | 147,091 | 143,673 | 137,105 | |||||||||||
Construction | 28,351 | 38,766 | 39,758 | 31,535 | 31,922 | |||||||||||
Other | 22,575 | 22,267 | 21,732 | 20,549 | 17,572 | |||||||||||
Total consumer loans | 480,117 | 461,887 | 441,982 | 426,452 | 402,187 | |||||||||||
Total gross loans, net of deferred fees | 1,387,070 | 1,327,739 | 1,299,829 | 1,218,680 | 1,163,644 | |||||||||||
Less—allowance for loan losses | (15,523 | ) | (15,579 | ) | (15,444 | ) | (15,287 | ) | (14,855 | ) | ||||||
Total loans, net | $ | 1,371,547 | 1,312,160 | 1,284,385 | 1,203,393 | 1,148,789 |
4
DEPOSIT COMPOSITION | |||||||||||
Quarter Ended | |||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||
(dollars in thousands) | 2017 | 2017 | 2017 | 2017 | 2016 | ||||||
Non-interest bearing | $ | 295,680 | 272,758 | 271,669 | 253,320 | 235,538 | |||||
Interest bearing: | |||||||||||
NOW accounts | 229,945 | 209,607 | 226,724 | 228,640 | 234,949 | ||||||
Money market accounts | 545,029 | 533,575 | 452,385 | 391,923 | 345,117 | ||||||
Savings | 16,298 | 15,659 | 15,345 | 15,688 | 14,942 | ||||||
Time, less than $100,000 | 55,461 | 54,133 | 51,328 | 49,367 | 48,638 | ||||||
Time and out-of-market deposits, $100,000 and over | 238,710 | 256,845 | 280,460 | 272,336 | 211,967 | ||||||
Total deposits | $ | 1,381,123 | 1,342,577 | 1,297,911 | 1,211,274 | 1,091,151 |
NONINTEREST INCOME & EXPENSE - Unaudited | |||||||||||||||
Quarter Ended | 4th Qtr | Quarter Ended | |||||||||||||
December 31 | 2017-2016 | September 30 | June 30 | March 31 | |||||||||||
(dollars in thousands) | 2017 | 2016 | % Change | 2017 | 2017 | 2017 | |||||||||
Noninterest income | |||||||||||||||
Mortgage banking income | $ | 1,089 | 1,152 | (5.5 | )% | 1,403 | 1,603 | 1,057 | |||||||
Service fees on deposit accounts | 283 | 269 | 5.2 | % | 324 | 284 | 278 | ||||||||
Income from bank owned life insurance | 220 | 183 | 20.2 | % | 224 | 183 | 183 | ||||||||
Gain on sale of investment securities | 3 | - | - | - | 1 | - | |||||||||
Loss on disposal of fixed assets | - | - | - | - | (50 | ) | - | ||||||||
Other income | 586 | 520 | 12.7 | % | 591 | 542 | 533 | ||||||||
Total noninterest income | $ | 2,181 | 2,124 | 2.7 | % | 2,542 | 2,563 | 2,051 | |||||||
Noninterest income to average assets (3) | 0.54 % | 0.65 % | (16.9 | )% | 0.65 % | 0.68 % | 0.59 % | ||||||||
Noninterest expense | |||||||||||||||
Compensation and benefits | $ | 5,295 | 4,616 | 14.7 | % | 5,698 | 5,525 | 5,273 | |||||||
Occupancy | 1,079 | 912 | 18.3 | % | 1,043 | 1,033 | 967 | ||||||||
Other real estate owned expenses | 190 | 490 | (61.2 | )% | 28 | (3 | ) | 13 | |||||||
Data processing and related costs | 796 | 738 | 7.9 | % | 794 | 823 | 745 | ||||||||
Insurance | 301 | 284 | 6.0 | % | 258 | 297 | 289 | ||||||||
Professional fees | 333 | 344 | (3.2 | )% | 334 | 382 | 313 | ||||||||
Marketing | 131 | 181 | (27.6 | )% | 199 | 196 | 210 | ||||||||
Other | 498 | 441 | 12.9 | % | 452 | 510 | 550 | ||||||||
Total noninterest expenses | $ | 8,623 | 8,006 | 7.7 | % | 8,806 | 8,763 | 8,360 | |||||||
Noninterest expense to average assets (3) | 2.15 % | 2.43 % | (11.5 | )% | 2.25 % | 2.32 % | 2.41 % |
AVERAGE YIELD/RATE | ||||||||||
Quarter Ended | ||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||
2017 | 2017 | 2017 | 2017 | 2016 | ||||||
Yield/Rate(3) | ||||||||||
Interest-earning assets | ||||||||||
Federal funds sold | 1.29% | 1.31% | 1.10% | 0.78% | 0.56% | |||||
Investment securities, taxable | 1.95% | 2.05% | 2.02% | 2.06% | 1.88% | |||||
Investment securities, nontaxable | 3.91% | 3.67% | 3.94% | 4.04% | 3.95% | |||||
Loans(10) | 4.59% | 4.59% | 4.55% | 4.52% | 4.53% | |||||
Total interest-earning assets | 4.31% | 4.31% | 4.21% | 4.34% | 4.31% | |||||
Interest-bearing liabilities | ||||||||||
NOW accounts | 0.16% | 0.18% | 0.19% | 0.18% | 0.15% | |||||
Savings & money market | 0.90% | 0.84% | 0.74% | 0.58% | 0.46% | |||||
Time deposits | 1.21% | 1.08% | 0.99% | 0.89% | 0.84% | |||||
Total interest-bearing deposits | 0.84% | 0.78% | 0.70% | 0.58% | 0.50% | |||||
FHLB advances and other borrowings | 3.36% | 3.50% | 3.87% | 3.28% | 3.44% | |||||
Junior subordinated debentures | 3.49% | 3.43% | 3.32% | 3.15% | 3.03% | |||||
Total interest-bearing liabilities | 0.96% | 0.93% | 0.95% | 0.94% | 0.89% | |||||
Net interest spread | 3.35% | 3.38% | 3.26% | 3.40% | 3.42% | |||||
Net interest income (tax equivalent) / margin | 3.59% | 3.60% | 3.49% | 3.61% | 3.63% |
5
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 11 locations in the Greenville, Columbia, and Charleston markets of South Carolina as well as Raleigh, North Carolina and Atlanta, Georgia. Southern First Bancshares has consolidated assets of approximately $1.6 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.
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.
MEDIA CONTACT: ART SEAVER 864-679-9010
WEB SITE: www.southernfirst.com
6