Southern First Bancshares Reports New Material Agreement & Financial Obligation
Ticker: SFST · Form: 8-K · Filed: Jan 3, 2024 · CIK: 1090009
Complexity: simple
Sentiment: mixed
Topics: material-agreement, financial-obligation, corporate-action
TL;DR
**Southern First Bancshares just took on new financial commitments, watch for details on impact.**
AI Summary
Southern First Bancshares, Inc. filed an 8-K on January 3, 2024, reporting events that occurred on December 28, 2023. This filing indicates the company entered into a material definitive agreement and created a direct financial obligation or an off-balance sheet arrangement. While the specific details of the agreement and obligation are not provided in this summary, the filing signals new financial commitments for the company. This matters to investors because new financial obligations can impact the company's liquidity, profitability, and overall financial health, potentially affecting stock valuation.
Why It Matters
New financial obligations can affect a company's balance sheet and future earnings, directly influencing its stock price and investor confidence.
Risk Assessment
Risk Level: medium — The filing indicates new financial obligations without providing specific details, creating uncertainty about their potential impact on the company's financial health.
Analyst Insight
Investors should monitor subsequent filings or company announcements for specific details regarding the nature and terms of the material definitive agreement and financial obligation to assess their potential impact on Southern First Bancshares' financial health and stock valuation.
Key Players & Entities
- Southern First Bancshares, Inc. (company) — the registrant filing the 8-K
- December 28, 2023 (date) — date of the earliest event reported
- January 3, 2024 (date) — date the 8-K was filed
- 000-27719 (other) — Commission File Number
- 58-2459561 (other) — IRS Employer Identification No.
Forward-Looking Statements
- Southern First Bancshares will provide more details on the material definitive agreement and financial obligation in future filings or earnings calls. (Southern First Bancshares, Inc.) — high confidence, target: Q1 2024 earnings report
FAQ
What specific items were reported in this 8-K filing by Southern First Bancshares, Inc.?
The 8-K filing by Southern First Bancshares, Inc. reported an "Entry into a Material Definitive Agreement" and the "Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant" as of December 28, 2023.
When was the earliest event reported in this 8-K filing?
The earliest event reported in this 8-K filing occurred on December 28, 2023, as stated in the 'Date of report (Date of earliest event reported)' section.
What is the business address of Southern First Bancshares, Inc. as listed in the filing?
The business address of Southern First Bancshares, Inc. is 6 Verdae Boulevard, Greenville, SC 29607, according to the filing.
What is the Commission File Number for Southern First Bancshares, Inc.?
The Commission File Number for Southern First Bancshares, Inc. is 000-27719, as indicated in the filing.
What is the significance of an 'Entry into a Material Definitive Agreement' for investors?
For investors, an 'Entry into a Material Definitive Agreement' signifies that Southern First Bancshares, Inc. has committed to a new, significant contract or arrangement that could have a substantial impact on its operations, financial performance, or strategic direction. The specific details of such an agreement would be crucial for assessing its potential effects.
Filing Stats: 907 words · 4 min read · ~3 pages · Grade level 11.4 · Accepted 2024-01-03 16:18:49
Key Financial Figures
- $15,000,000 — up to an aggregate principal amount of $15,000,000. This Loan Agreement replaces a simila
Filing Documents
- sfst4282901-8k.htm (8-K) — 29KB
- sfst4282901-ex101.htm (EX-10.1) — 116KB
- sfst4282901-ex102.htm (EX-10.2) — 23KB
- sfst4282901-ex103.htm (EX-10.3) — 46KB
- sfst4282901-8kx1x1.jpg (GRAPHIC) — 9KB
- 0001206774-24-000008.txt ( ) — 499KB
- sfst-20231228.xsd (EX-101.SCH) — 3KB
- sfst-20231228_pre.xml (EX-101.PRE) — 24KB
- sfst-20231228_lab.xml (EX-101.LAB) — 35KB
- sfst-20231228_def.xml (EX-101.DEF) — 26KB
- sfst4282901-8k_htm.xml (XML) — 4KB
01 Entry into a Material Definitive
ITEM 1.01 Entry into a Material Definitive Agreement. On December 28, 2023, Southern First Bancshares, Inc. (the Company) entered into a Loan Agreement (the Loan Agreement) with TIB, National Association (the Lender) providing for a revolving multiple advances loan of up to an aggregate principal amount of $15,000,000. This Loan Agreement replaces a similar facility held with another institution which matured on December 20, 2023. Borrowings under the Loan Agreement accrue interest at The Wall Street Journal Prime Rate plus 0.25% per annum. In connection with entering into the Loan Agreement, the Company issued to the Lender a Promissory Note dated as of December 28, 2023 (the "Promissory Note") in the amount of up to $15,000,000. Maturity of the Promissory Note will be 14 months from the closing date. During this time, interest only payments will be due quarterly. The Company may at its option prepay the Promissory Note, in whole or in part, at any time without penalty, plus accrued interest in the amount prepaid to the date of prepayment. The Loan Agreement contains customary representations, warranties, covenants and events of default, including, without limitation, covenants pertaining to investments and acquisitions and certain financial and capital ratios. An event of default will occur under the Loan Agreement if, among other things, the Company fails to timely comply with its obligations under the Loan Agreement or breaches its representations or covenants under the Loan Agreement (in each case, subject to applicable cure periods), or either the Company or its wholly-owned banking subsidiary, Southern First Bank (the "Bank"), commences or becomes the subject a bankruptcy or similar proceeding. The obligations of the Company under the Loan Agreement are secured by a pledge of all of the capital stock of the Bank pursuant to a Pledge Agreement dated as of December 28, 2023 between the Company and the Lender (the Pledge Agreement). In the event of a defau
03 Creation of a Direct Financial Obligation
Item 2.03 Creation of a Direct Financial Obligation. The relevant disclosure set forth in Item 1.01 above is incorporated herein by reference in response to this Item 2.03.
01. Financial Statements and Exhibits
ITEM 9.01. Financial Statements and Exhibits. (d) Exhibits The following exhibit index lists the exhibits that are either filed or furnished with the Current Report on Form 8-K. EXHIBIT INDEX Exhibit No. Description 10.1 Loan Agreement, dated as of December 28, 2023, by and between Southern First Bancshares, Inc. and TIB, National Association. 10.2 Promissory Note, dated as of December 28, 2023, by and between Southern First Bancshares, Inc. and TIB, National Association. 10.3 Pledge Agreement, dated as of December 28, 2023, by and between Southern First Bancshares, Inc. and TIB, National Association. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
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/ D. Andrew Borrmann Name: D. Andrew Borrmann Title: Chief Financial Officer January 3, 2024