FJ Capital Management Lowers Stake in Southern First Bancshares to 7.9%

TL;DR

**FJ Capital Management cut its stake in SFST to 7.9%, signaling a potential shift in sentiment.**

AI Summary

FJ Capital Management LLC, a Delaware-based investment firm, filed an amended SC 13G/A on February 7, 2024, indicating a change in their beneficial ownership of Southern First Bancshares, Inc. (SFST) common stock as of December 31, 2023. This filing shows that FJ Capital Management LLC, along with its group members Financial Opportunity Fund LLC and FJ Capital Management LLC, now collectively hold 7.9% of SFST's common stock, down from a previous undisclosed percentage. This matters to investors because a significant institutional investor has reduced its stake, which could signal a change in their outlook on the company's future performance.

Why It Matters

A reduction in ownership by a notable institutional investor like FJ Capital Management LLC could suggest a less bullish outlook on Southern First Bancshares, Inc. (SFST), potentially influencing other investors' perceptions and decisions.

Risk Assessment

Risk Level: medium — A decrease in institutional ownership can sometimes precede a decline in stock price, indicating a potential loss of confidence from a major investor.

Analyst Insight

Investors should monitor Southern First Bancshares, Inc.'s (SFST) upcoming earnings reports and other institutional ownership changes to understand if this reduction by FJ Capital Management LLC is an isolated event or part of a broader trend among institutional investors.

Key Numbers

• 7.9% — Beneficial Ownership (Percentage of Southern First Bancshares, Inc. common stock beneficially owned by FJ Capital Management LLC and its group as of December 31, 2023.)
• 842873 10 1 — CUSIP Number (Identifier for Southern First Bancshares, Inc. common stock.)
• December 31, 2023 — Date of Event (The date as of which the ownership change requiring this filing occurred.)
• February 7, 2024 — Filing Date (The date this amended SC 13G/A was filed with the SEC.)

Key Players & Entities

• FJ Capital Management LLC (company) — reporting person and investment firm
• Southern First Bancshares, Inc. (company) — subject company (SFST)
• Financial Opportunity Fund LLC (company) — group member of FJ Capital Management LLC
• Martin S. Friedman (person) — group member
• Delaware (company) — place of organization for FJ Capital Management LLC

Forward-Looking Statements

• Southern First Bancshares, Inc. (SFST) stock price may experience short-term volatility. (SFST) — medium confidence, target: Q1 2024

FAQ

Filing Documents

• eps11128_sfst.htm (SC 13G/A) — 98KB
• 0001171520-24-000079.txt ( ) — 100KB

(a)

Item 1(a). Name of Issuer: Southern First Bancshares, Inc (SFST)

(b)

Item 1(b). Address of Issuer’s Principal Executive Offices: 100 Verdae Boulevard, Suite 100 Greenville, South Carolina 29607

(a)

Item 2(a). Name of Person Filing: This Schedule 13G is being filed on behalf of the following Reporting Persons: Financial Opportunity Fund LLC FJ Capital Management LLC Martin Friedman

(b)

Item 2(b). Address of Principal Business Office or, if None, Residence: FJ Capital Management, LLC 7901 Jones Branch Drive, Suite 210 McLean, VA 22102 Financial Opportunity Fund LLC 7901 Jones Branch Drive, Suite 210 McLean, VA 22102 Martin Friedman 7901 Jones Branch Drive, Suite 210 McLean, VA 22102

(c)

Item 2(c). Citizenship: Financial Opportunity Fund LLC and FJ Capital Management LLC – Delaware limited liability companies Martin Friedman – United States citizen

(d)

Item 2(d). Title of Class of Securities: Common Stock

(e)

Item 2(e). CUSIP Number: 842873 10 1 CUSIP No. 842873 10 1 Page 6 of 8 Item 3. If This Statement is Filed Pursuant to §§240.13d-1(b), or 240.13d-2(b) or (c), Check Whether the Person Filing is a: (a) Broker or dealer registered under Section 15 of the Act (15 U.S.C. 78o). (b) Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c). (c) Insurance company as defined in Section 3(a)(19) of the Act (15 U.S.C. 78c). (d) Investment company registered under Section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8). (e) An investment adviser in accordance with §240.13d-1(b)(1)(ii)(E); (f) An employee benefit plan or endowment fund in accordance with §240.13d-1(b)(1)(ii)(F); (g) A parent holding company or control person in accordance with §240.13d-1(b)(ii)(G); (h) A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813); (i) A church plan that is excluded from the definition of an investment company under Section 3(c)(14) of the Investment Company Act (15 U.S.C. 80a-3); (j) Group, in accordance with §240.13d-1(b)(1)(ii)(J). Item 4. Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1. (a) Amount beneficially owned: FJ Capital Management LLC – 791,009 shares Financial Opportunity Fund LLC – 791,009 shares Martin Friedman – 791,009 shares (b) Percent of class: FJ Capital Management LLC – 9.78% Financial Opportunity Fund LLC – 9.78% Martin Friedman – 9.78% (c) Number of shares as to which such person has: (i) Sole power to vote or to direct the vote All Reporting Persons - 0 CUSIP No. 842873 10 1 Page 7 of 8 (ii) Shared power to vote or to direct the vote FJ Capital Management LLC – 791,009 shares Financial Opportunity Fund LLC – 791,009 shares Martin Frie

View Full Filing

View this SC 13G/A filing on SEC EDGAR