Southern First Bancshares, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Southern First Bancshares, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

SOUTHERN FIRST BANCSHARES INC (SFST) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Southern First Bancshares, Inc. filed a 10-Q report for the quarter ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's principal executive offices are located at 6 Verdae Boulevard, Greenville, SC 29607. Southern First Bancshares, Inc. was formerly known as Greenville First Bancshares Inc. The SIC code for the company is 6021, National Commercial Banks.

Why It Matters

For investors and stakeholders tracking SOUTHERN FIRST BANCSHARES INC, this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for Southern First Bancshares, Inc. during the first quarter of 2024. Understanding the details within this 10-Q is crucial for assessing the company's financial health, strategic direction, and potential risks in the current economic environment.

Risk Assessment

Risk Level: low — SOUTHERN FIRST BANCSHARES INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Monitor future filings for trends in loan growth, net interest margin, and provision for credit losses to gauge the bank's performance in a dynamic interest rate environment.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly report)
• 2024-04-30 — Filed As Of Date (Filing date)
• 6021 — SIC Code (National Commercial Banks)
• 1999-07-07 — Date of Name Change (From Greenville First Bancshares Inc.)

Key Players & Entities

• SOUTHERN FIRST BANCSHARES INC (company) — Filer name
• SFST (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-04-30 (date) — Filed as of date
• 6 VERDAE BOULEVARD (address) — Business address
• GREENVILLE (location) — City in business address
• SC (location) — State in business address
• GREENVILLE FIRST BANCSHARES INC (company) — Former company name

FAQ

Industry Context

Southern First Bancshares, Inc. operates within the National Commercial Banks sector, a segment characterized by interest rate sensitivity and regulatory oversight.

Regulatory Implications

As a national commercial bank, Southern First Bancshares, Inc. is subject to regulations from federal and state authorities, including the Federal Reserve and state banking departments.

What Investors Should Do

1. Review the detailed financial statements for revenue, net income, and balance sheet changes.
2. Analyze any disclosed risk factors or management's discussion and analysis for insights into operational challenges and strategic responses.
3. Compare key financial metrics with prior periods and industry peers to assess performance trends.

Key Dates

• 2024-03-31: End of Reporting Period — First quarter of fiscal year 2024
• 2024-04-30: Filing Date — Submission of the 10-Q report

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, providing the first set of quarterly financial data for the year.

Key Financial Figures

• $0.01 — 6,109 shares of common stock, par value $0.01 per share, were issued and outstanding

Filing Documents

• sfst4329051-10q.htm (10-Q) — 2944KB
• sfst4329051-ex31_1.htm (EX-31.1) — 10KB
• sfst4329051-ex31_2.htm (EX-31.2) — 10KB
• sfst4329051-ex32.htm (EX-32) — 6KB
• sfst4329051-10q1x1x1.jpg (GRAPHIC) — 13KB
• 0001206774-24-000471.txt (&nbsp;) — 14278KB
• sfst-20240331.xsd (EX-101.SCH) — 58KB
• sfst-20240331_pre.xml (EX-101.PRE) — 378KB
• sfst-20240331_lab.xml (EX-101.LAB) — 407KB
• sfst-20240331_cal.xml (EX-101.CAL) — 67KB
• sfst-20240331_def.xml (EX-101.DEF) — 232KB
• sfst4329051-10q_htm.xml (XML) — 4217KB

– CONSOLIDATED FINANCIAL INFORMATION

PART I – CONSOLIDATED FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Comprehensive Income 5 Consolidated Statements of Shareholders' Equity 6 Consolidated Statements of Cash Flows 7 Notes to Unaudited Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 42

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 43 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 3. Defaults upon Senior Securities 43 Item 4. Mine Safety Disclosures 43 Item 5. Other Information 43 Item 6. Exhibits 43 2 Table of Contents PART I. CONSOLIDATED FINANCIAL INFORMATION Item 1. CONSOLIDATED FINANCIAL STATEMENTS SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS March 31, December 31, (dollars in thousands, except share data) 2024 2023 (Unaudited) (Audited) ASSETS Cash and cash equivalents: Cash and due from banks $ 13,925 28,020 Federal funds sold 144,595 119,349 Interest-bearing deposits with banks 8,789 8,801 Total cash and cash equivalents 167,309 156,170 Investment securities: Investment securities available for sale 125,996 134,702 Other investments 18,499 19,939 Total investment securities 144,495 154,641 Mortgage loans held for sale 11,842 7,194 Loans 3,643,766 3,602,627 Less allowance for credit losses ( 40,441 ) ( 40,682 ) Loans, net 3,603,325 3,561,945 Bank owned life insurance 52,878 52,501 Property and equipment, net 93,007 94,301 Deferred income taxes, net 12,321 12,200 Other assets 20,527 16,837 Total assets $ 4,105,704 4,055,789 LIABILITIES Deposits $ 3,460,681 3,379,564 FHLB advances and related debt 240,000 275,000 Subordinated debentures 36,349 36,322 Other liabilities 53,418 52,436 Total liabilities 3,790,448 3,743,322 SHAREHOLDERS' EQUITY Preferred stock, par value $ .01 per share, 10,000,000 shares authorized - - Common stock, par value $ .01 per share, 10,000,000 shares authorized, 8,156,109 and 8,088,186 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 82 81 Nonvested restricted stock ( 5,257 ) ( 3,596 ) Additional paid-in capital 124,159 121,777 Accumulated other comprehensive loss ( 11,797 ) ( 11,342 ) Retained earnings 208

financial statements that are an integral part of these consolidated statements

financial statements that are an integral part of these consolidated statements. 7 Table of Contents SOUTHERN FIRST BANCSHARES, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – Summary of Significant Accounting Policies Nature of

Business

Business Southern First Bancshares, Inc. (the "Company") is a South Carolina corporation that owns all of the capital stock of Southern First Bank (the "Bank") and all of the stock of Greenville First Statutory Trusts I and II (collectively, the "Trusts"). The Trusts are special purpose non-consolidated entities organized for the sole purpose of issuing trust preferred securities. The Bank's primary federal regulator is the Federal Deposit Insurance Corporation (the "FDIC"). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions. The Bank is primarily engaged in the business of accepting demand deposits and savings deposits insured by the FDIC, and providing commercial, consumer and mortgage loans to the general public. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial have been included. Operating results for the three-month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the U.S. Securities and Exchange Commission ("SEC") on March 5, 2024. The consolidated financial statements include the accounts of the Company and the Bank. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Cod

Business

Business Segments The Company, through the Bank, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, and Georgia. These services include demand, time and savings deposits, lending services and ATM processing and mortgage banking services. While the Company's management periodically reviews limited production information for these revenue streams, that information is not complete as it does not include a full allocation of revenue, costs and capital from key corporate functions. Management will continue to evaluate these lines of business for separate reporting as facts and circumstances change. Accordingly, the Company's various banking operations are not considered by management to constitute more than one reportable operating segment. Risk and Uncertainties In the normal course of its business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different bases, than its interest-earning assets. Credit risk is the risk of default within the Company's loan portfolio that results from borrowers' inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable and the valuation of real estate held by the Company. There were three significant bank failures in the first five months of 2023, primarily due to the failed banks' lack of liquidity as depositors sought to withdraw their deposits. Due to rising interest rates, the failed banks were unable to sell investment securities held to meet liquidity needs without realizing substantial losses. As a result of the recent bank failures and in an effort to strengthen public confidence in the banking system and p

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