GREENVILLE, S.C., Jan. 28,
2025 /PRNewswire/ -- Southern First Bancshares, Inc.
(NASDAQ: SFST), holding company for Southern First Bank, today
announced its financial results for the three and twelve months
ended December 31, 2024.
"Our financial performance this quarter reflects continued
momentum in margin and gives us great optimism as a starting point
for 2025. Asset quality remained outstanding with excellent
performance metrics and a positive outlook. Our balance sheet
performed as we expected with the Fed's interest rate cuts, and our
margin continued to expand each quarter this year. Our capital
ratios remain strong, and we are pleased with our growth in book
value to $40.47 to end the year."
stated Art Seaver, Chief Executive
Officer. "After 25 years, we are proud of the company we have built
and our continued mission to impact lives in the communities we
serve. We are well-positioned with a strong balance sheet and
healthy pipelines to continue the positive trends in performance
and generating value for our shareholders."
2024 Fourth Quarter Highlights
- Net income of $5.6 million
and diluted earnings per common share of $0.70, up 30% over last quarter and 37% compared
to Q4 2023
- Total loans of $3.6 billion
and total deposits of $3.4
billion
- Nonperforming assets to total assets of 0.27% and past
due loans to total loans of 0.25%
- Net interest margin of 2.25%, compared to 2.08% for Q3
2024 and 1.92% for Q4 2023
- Book value per common share of $40.47 and a TCE ratio of 8.08%
|
|
Quarter
Ended
|
|
|
December
31
|
September
30
|
June
30
|
March
31
|
December
31
|
|
|
2024
|
2024
|
2024
|
2024
|
2023
|
|
Earnings ($ in
thousands, except per share data):
|
|
|
|
|
|
|
|
Net income available to
common shareholders
|
$
|
5,627
|
4,382
|
2,999
|
2,522
|
4,167
|
|
Earnings per common
share, diluted
|
|
0.70
|
0.54
|
0.37
|
0.31
|
0.51
|
|
Total
revenue(1)
|
|
25,237
|
23,766
|
23,051
|
21,309
|
21,390
|
|
Net interest margin
(tax-equivalent)(2)
|
|
2.25 %
|
2.08 %
|
1.98 %
|
1.94 %
|
1.92 %
|
|
Return on average
assets(3)
|
|
0.54 %
|
0.43 %
|
0.29 %
|
0.25 %
|
0.40 %
|
|
Return on average
equity(3)
|
|
6.80 %
|
5.40 %
|
3.81 %
|
3.22 %
|
5.39 %
|
|
Efficiency
ratio(4)
|
|
73.48 %
|
75.90 %
|
80.87 %
|
84.94 %
|
79.61 %
|
|
Noninterest expense to
average assets (3)
|
|
1.78 %
|
1.75 %
|
1.81 %
|
1.81 %
|
1.64 %
|
|
Balance Sheet ($
in thousands):
|
|
|
|
|
|
|
|
Total
loans(5)
|
$
|
3,631,767
|
3,619,556
|
3,622,521
|
3,643,766
|
3,602,627
|
|
Total
deposits
|
|
3,435,765
|
3,518,825
|
3,459,869
|
3,460,681
|
3,379,564
|
|
Core
deposits(6)
|
|
2,661,736
|
2,705,429
|
2,788,223
|
2,807,473
|
2,811,499
|
|
Total assets
|
|
4,087,593
|
4,174,631
|
4,109,849
|
4,105,704
|
4,055,789
|
|
Book value per common
share
|
|
40.47
|
40.04
|
39.09
|
38.65
|
38.63
|
|
Loans to
deposits
|
|
105.70 %
|
102.86 %
|
104.70 %
|
105.29 %
|
106.60 %
|
|
Holding Company
Capital Ratios(7):
|
|
|
|
|
|
|
|
Total risk-based
capital ratio
|
|
12.70 %
|
12.61 %
|
12.77 %
|
12.59 %
|
12.56 %
|
|
Tier 1 risk-based
capital ratio
|
|
11.16 %
|
10.99 %
|
10.80 %
|
10.63 %
|
10.59 %
|
|
Leverage
ratio
|
|
8.55 %
|
8.50 %
|
8.27 %
|
8.44 %
|
8.14 %
|
|
Common equity tier 1
ratio(8)
|
|
10.75 %
|
10.58 %
|
10.39 %
|
10.22 %
|
10.18 %
|
|
Tangible common
equity(9)
|
|
8.08 %
|
7.82 %
|
7.76 %
|
7.68 %
|
7.70 %
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
Nonperforming
assets/total assets
|
|
0.27 %
|
0.28 %
|
0.27 %
|
0.09 %
|
0.10 %
|
|
Classified assets/tier
one capital plus allowance for credit losses
|
|
4.25 %
|
4.35 %
|
4.22 %
|
3.99 %
|
4.25 %
|
|
Loans 30 days or more
past due/loans(5)
|
|
0.25 %
|
0.16 %
|
0.30 %
|
0.36 %
|
0.37 %
|
|
Net charge-offs
(recoveries)/average loans(5) (YTD
annualized)
|
|
0.04 %
|
0.05 %
|
0.07 %
|
0.03 %
|
0.00 %
|
|
Allowance for credit
losses/loans(5)
|
|
1.10 %
|
1.11 %
|
1.11 %
|
1.11 %
|
1.13 %
|
|
Allowance for credit
losses/nonaccrual loans
|
|
366.94 %
|
346.78 %
|
357.95 %
|
1,109.13 %
|
1,026.58 %
|
|
[Footnotes to
table located on page 6]
|
|
INCOME
STATEMENTS – Unaudited
|
|
|
Quarter
Ended
|
|
Twelve Months
Ended
|
|
|
Dec
31
|
Sept
30
|
Jun
30
|
Mar
31
|
Dec
31
|
|
December
31
|
|
(in thousands, except
per share data)
|
|
2024
|
2024
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
47,163
|
47,550
|
46,545
|
45,605
|
44,758
|
|
186,863
|
166,137
|
|
Investment
securities
|
|
1,504
|
1,412
|
1,418
|
1,478
|
1,674
|
|
5,812
|
4,463
|
|
Federal funds
sold
|
|
2,465
|
2,209
|
2,583
|
1,280
|
2,703
|
|
8,537
|
6,998
|
|
Total interest
income
|
|
51,132
|
51,171
|
50,546
|
48,363
|
49,135
|
|
201,212
|
177,598
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
25,901
|
27,725
|
28,216
|
26,932
|
27,127
|
|
108,774
|
91,373
|
|
Borrowings
|
|
2,773
|
2,855
|
2,802
|
2,786
|
2,948
|
|
11,216
|
8,571
|
|
Total interest
expense
|
|
28,674
|
30,580
|
31,018
|
29,718
|
30,075
|
|
119,990
|
99,944
|
|
Net interest
income
|
|
22,458
|
20,591
|
19,528
|
18,645
|
19,060
|
|
81,222
|
77,654
|
|
Provision (reversal)
for credit losses
|
|
(200)
|
-
|
500
|
(175)
|
(975)
|
|
125
|
1,260
|
|
Net interest income
after provision for credit losses
|
|
22,658
|
20,591
|
19,028
|
18,820
|
20,035
|
|
81,097
|
76,394
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
income
|
|
1,024
|
1,449
|
1,923
|
1,164
|
868
|
|
5,560
|
4,036
|
|
Service fees on deposit
accounts
|
|
499
|
455
|
423
|
387
|
371
|
|
1,764
|
1,382
|
|
ATM and debit card
income
|
|
607
|
599
|
587
|
544
|
565
|
|
2,337
|
2,245
|
|
Income from bank owned
life insurance
|
|
407
|
401
|
384
|
377
|
361
|
|
1,569
|
1,379
|
|
Other income
|
|
242
|
271
|
206
|
192
|
165
|
|
911
|
818
|
|
Total
noninterest income
|
|
2,779
|
3,175
|
3,523
|
2,664
|
2,330
|
|
12,141
|
9,860
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
10,610
|
10,789
|
11,290
|
10,857
|
9,401
|
|
43,546
|
40,275
|
|
Occupancy
|
|
2,587
|
2,595
|
2,552
|
2,557
|
2,718
|
|
10,291
|
10,255
|
|
Outside service and
data processing costs
|
|
2,003
|
1,930
|
1,962
|
1,846
|
2,000
|
|
7,741
|
7,078
|
|
Insurance
|
|
1,077
|
1,025
|
965
|
955
|
937
|
|
4,022
|
3,766
|
|
Professional
fees
|
|
656
|
548
|
582
|
618
|
581
|
|
2,404
|
2,496
|
|
Marketing
|
|
335
|
319
|
389
|
369
|
364
|
|
1,412
|
1,357
|
|
Other
|
|
1,276
|
833
|
903
|
898
|
1,027
|
|
3,910
|
3,600
|
|
Total
noninterest expenses
|
|
18,544
|
18,039
|
18,643
|
18,100
|
17,028
|
|
73,326
|
68,827
|
|
Income before provision
for income taxes
|
|
6,893
|
5,727
|
3,908
|
3,384
|
5,337
|
|
19,912
|
17,427
|
|
Income tax
expense
|
|
1,266
|
1,345
|
909
|
862
|
1,170
|
|
4,382
|
4,001
|
|
Net income available
to common shareholders
|
$
|
5,627
|
4,382
|
2,999
|
2,522
|
4,167
|
|
15,530
|
13,426
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share – Basic
|
$
|
0.70
|
0.54
|
0.37
|
0.31
|
0.51
|
|
1.92
|
1.67
|
|
Earnings per common
share – Diluted
|
|
0.70
|
0.54
|
0.37
|
0.31
|
0.51
|
|
1.91
|
1.66
|
|
Basic weighted average
common shares
|
|
8,023
|
8,064
|
8,126
|
8,110
|
8,056
|
|
8,081
|
8,047
|
|
Diluted weighted
average common shares
|
|
8,097
|
8,089
|
8,141
|
8,142
|
8,080
|
|
8,117
|
8,078
|
|
[Footnotes to table
located on page 6]
|
Net income for the fourth quarter of 2024 was $5.6 million, or $0.70 per diluted share, a $1.2 million increase from the third quarter of
2024 and a $1.5 million increase from
the fourth quarter of 2023. Net interest income increased
$1.9 million during the fourth
quarter of 2024, compared to the third quarter of 2024, and
increased $3.4 million, compared to
the fourth quarter of 2023. The increase in net interest income
from the prior quarter and prior year was primarily driven by an
increase in interest income on loans and a decrease in interest
expense on deposits.
There was a reversal of the provision for credit losses of
$200 thousand for the fourth quarter
of 2024, compared to no provision for credit losses during the
third quarter of 2024 and a reversal of the provision for credit
losses of $975 thousand during the
fourth quarter of 2023. The provision reversal during the fourth
quarter of 2024 includes a $250
thousand reversal of the provision for credit losses and a
$50 thousand increase in the reserve
for unfunded commitments. The reversal of the provision for credit
losses was driven by lower expected loss rates and few charge-offs,
while the increase in the reserve for unfunded commitments was
driven by an increase in the balance of unfunded commitments at
December 31, 2024, compared to the
previous quarter and year.
Noninterest income was $2.8
million for the fourth quarter of 2024, compared to
$3.2 million for the third quarter of
2024, and $2.3 million for the fourth
quarter of 2023. Mortgage banking income continues to be the
largest component of our noninterest income at $1.0 million in fee revenue for the fourth
quarter of 2024, $1.4 million for the
third quarter of 2024, and $868
thousand for the fourth quarter of 2023. Mortgage closing
volume increased in the fourth quarter of 2024; however, the linked
quarter decrease in fee revenue is attributable to more loans being
held in the loan portfolio with fewer sold into the secondary
market.
Noninterest expense for the fourth quarter of 2024 was
$18.5 million, a $505 thousand increase from the third quarter of
2024, and a $1.5 million increase
from the fourth quarter of 2023. The increase in noninterest
expense from the previous quarter was driven by an increase in
professional fees and other noninterest expense, which includes
increases in business tax expense, collection costs and dues and
subscription expenses. The increase in noninterest expense from the
previous year related primarily to increases in compensation and
benefits, insurance, and other noninterest expenses.
Our effective tax rate was 18.4% for the fourth quarter of 2024,
23.5% for the third quarter of 2024, and 21.9% for the fourth
quarter of 2023. The lower tax rate in the fourth quarter of 2023
compared to the prior quarter and prior year primarily relates to
the effect of equity compensation transactions and return to
provision differences on our actual tax rate during the quarter
compared to what was estimated during the year.
|
NET INTEREST
INCOME AND MARGIN - Unaudited
|
|
|
For the Three Months Ended
|
|
December 31, 2024
|
September 30, 2024
|
December 31,2023
|
|
(dollars in
thousands)
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate(3)
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate(3)
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate(3)
|
|
Interest-earning
assets
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
interest-bearing deposits
|
$ 203,065
|
$ 2,465
|
4.83 %
|
$ 158,222
|
$ 2,209
|
5.55 %
|
$ 197,482
|
$ 2,703
|
5.43 %
|
|
Investment
securities, taxable
|
145,932
|
1,462
|
3.99 %
|
137,087
|
1,370
|
3.98 %
|
151,969
|
1,632
|
4.26 %
|
|
Investment
securities, nontaxable(2)
|
7,988
|
55
|
2.72 %
|
8,047
|
55
|
2.70 %
|
7,831
|
55
|
2.76 %
|
|
Loans(10)
|
3,620,765
|
47,163
|
5.18 %
|
3,629,050
|
47,550
|
5.21 %
|
3,586,863
|
44,758
|
4.95 %
|
|
Total interest-earning assets
|
3,977,750
|
51,145
|
5.12 %
|
3,932,406
|
51,184
|
5.18 %
|
3,944,145
|
49,148
|
4.94 %
|
|
Noninterest-earning assets
|
158,779
|
|
|
158,550
|
|
|
174,717
|
|
|
|
Total assets
|
$4,136,529
|
|
|
$4,090,956
|
|
|
$4,118,862
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
NOW accounts
|
$
300,902
|
693
|
0.92 %
|
$
314,669
|
835
|
1.06 %
|
$
301,424
|
656
|
0.86 %
|
|
Savings & money
market
|
1,492,534
|
13,525
|
3.61 %
|
1,523,834
|
15,287
|
3.99 %
|
1,697,144
|
17,042
|
3.98 %
|
|
Time
deposits
|
992,335
|
11,683
|
4.68 %
|
909,192
|
11,603
|
5.08 %
|
759,839
|
9,429
|
4.92 %
|
|
Total interest-bearing
deposits
|
2,785,771
|
25,901
|
3.70 %
|
2,747,695
|
27,725
|
4.01 %
|
2,758,407
|
27,127
|
3.90 %
|
|
FHLB advances and other
borrowings
|
240,000
|
2,295
|
3.80 %
|
240,065
|
2,297
|
3.81 %
|
257,880
|
2,387
|
3.67 %
|
|
Subordinated
debentures
|
24,903
|
478
|
7.64 %
|
36,261
|
558
|
6.12 %
|
36,305
|
561
|
6.13 %
|
|
Total interest-bearing
liabilities
|
3,050,674
|
28,674
|
3.74 %
|
3,024,021
|
30,580
|
4.02 %
|
3,052,592
|
30,075
|
3.91 %
|
|
Noninterest-bearing
liabilities
|
756,636
|
|
|
744,025
|
|
|
759,413
|
|
|
|
Shareholders'
equity
|
329,219
|
|
|
322,910
|
|
|
306,857
|
|
|
|
Total liabilities and
shareholders' equity
|
$4,136,529
|
|
|
$4,090,956
|
|
|
$4,118,862
|
|
|
|
Net interest
spread
|
|
|
1.38 %
|
|
|
1.16 %
|
|
|
1.04 %
|
|
Net interest income
(tax equivalent) / margin
|
|
$22,471
|
2.25 %
|
|
$20,604
|
2.08 %
|
|
$19,073
|
1.92 %
|
|
Less: tax-equivalent
adjustment(2)
|
|
13
|
|
|
13
|
|
|
13
|
|
|
Net interest
income
|
|
$22,458
|
|
|
$20,591
|
|
|
$19,060
|
|
|
[Footnotes to table
located on page 6]
|
Net interest income was $22.5
million for the fourth quarter of 2024, a $1.9 million increase from the third quarter of
2024, driven by a $1.9 million
decrease in interest expense. The decrease in interest expense was
driven by a 31 basis point reduction in rate on our
interest-bearing deposits over the previous quarter. In comparison
to the fourth quarter of 2023, net interest income increased
$3.4 million, resulting primarily
from an 18-basis point increase in the average yield on our
interest-earning assets. Our net interest margin, on a
tax-equivalent basis, was 2.25% for the fourth quarter of 2024, a
17 basis point increase from 2.08% for the third quarter of 2024
and a 33 basis point increase from 1.92% for the fourth quarter of
2023.
|
BALANCE SHEETS
- Unaudited
|
|
|
Ending
Balance
|
|
|
December
31
|
September
30
|
June
30
|
March
31
|
December
31
|
|
(in thousands, except
per share data)
|
|
2024
|
2024
|
2024
|
2024
|
2023
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Cash and due
from banks
|
$
|
22,553
|
25,289
|
21,567
|
13,925
|
28,020
|
|
Federal funds
sold
|
|
128,452
|
226,110
|
164,432
|
144,595
|
119,349
|
|
Interest-bearing
deposits with banks
|
|
11,858
|
9,176
|
8,828
|
8,789
|
8,801
|
|
Total cash and cash equivalents
|
|
162,863
|
260,575
|
194,827
|
167,309
|
156,170
|
|
Investment
securities:
|
|
|
|
|
|
|
|
Investment
securities available for sale
|
|
132,127
|
134,597
|
121,353
|
125,996
|
134,702
|
|
Other
investments
|
|
19,490
|
19,640
|
18,653
|
18,499
|
19,939
|
|
Total investment securities
|
|
151,617
|
154,237
|
140,006
|
144,495
|
154,641
|
|
Mortgage loans held for
sale
|
|
4,565
|
8,602
|
14,759
|
11,842
|
7,194
|
|
Loans
(5)
|
|
3,631,767
|
3,619,556
|
3,622,521
|
3,643,766
|
3,602,627
|
|
Less allowance for
credit losses
|
|
(39,914)
|
(40,166)
|
(40,157)
|
(40,441)
|
(40,682)
|
|
Loans, net
|
|
3,591,853
|
3,579,390
|
3,582,364
|
3,603,325
|
3,561,945
|
|
Bank owned life
insurance
|
|
54,070
|
53,663
|
53,263
|
52,878
|
52,501
|
|
Property and equipment,
net
|
|
88,794
|
90,158
|
91,533
|
93,007
|
94,301
|
|
Deferred income
taxes
|
|
13,467
|
11,595
|
12,339
|
12,321
|
12,200
|
|
Other assets
|
|
20,364
|
16,411
|
20,758
|
20,527
|
16,837
|
|
Total assets
|
$
|
4,087,593
|
4,174,631
|
4,109,849
|
4,105,704
|
4,055,789
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposits
|
$
|
3,435,765
|
3,518,825
|
3,459,869
|
3,460,681
|
3,379,564
|
|
FHLB
Advances
|
|
240,000
|
240,000
|
240,000
|
240,000
|
275,000
|
|
Subordinated
debentures
|
|
24,903
|
24,903
|
36,376
|
36,349
|
36,322
|
|
Other
liabilities
|
|
56,481
|
64,365
|
54,856
|
53,418
|
52,436
|
|
Total liabilities
|
|
3,757,149
|
3,848,093
|
3,791,101
|
3,790,448
|
3,743,322
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Preferred stock - $.01
par value; 10,000,000 shares authorized
|
|
-
|
-
|
-
|
-
|
-
|
|
Common Stock - $.01 par
value; 10,000,000 shares authorized
|
|
82
|
82
|
82
|
82
|
81
|
|
Nonvested restricted
stock
|
|
(3,884)
|
(4,219)
|
(4,710)
|
(5,257)
|
(3,596)
|
|
Additional paid-in
capital
|
|
124,641
|
124,288
|
124,174
|
124,159
|
121,777
|
|
Accumulated other
comprehensive loss
|
|
(11,472)
|
(9,063)
|
(11,866)
|
(11,797)
|
(11,342)
|
|
Retained
earnings
|
|
221,077
|
215,450
|
211,068
|
208,069
|
205,547
|
|
Total shareholders' equity
|
|
330,444
|
326,538
|
318,748
|
315,256
|
312,467
|
|
Total liabilities and shareholders' equity
|
$
|
4,087,593
|
4,174,631
|
4,109,849
|
4,105,704
|
4,055,789
|
|
Common
Stock
|
|
|
|
|
|
|
|
Book value per common
share
|
$
|
40.47
|
40.04
|
39.09
|
38.65
|
38.63
|
|
Stock price:
|
|
|
|
|
|
|
|
High
|
|
44.86
|
36.45
|
30.36
|
38.71
|
37.15
|
|
Low
|
|
33.26
|
27.70
|
25.70
|
29.80
|
25.16
|
|
Period
end
|
|
39.75
|
34.08
|
29.24
|
31.76
|
37.10
|
|
Common shares
outstanding
|
|
8,165
|
8,156
|
8,155
|
8,156
|
8,088
|
|
[Footnotes to table
located on page 6]
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
MEASURES - Unaudited
|
|
|
Quarter
Ended
|
|
|
December
31
|
September
30
|
June
30
|
March
31
|
December
31
|
|
(dollars in
thousands)
|
|
2024
|
2024
|
2024
|
2024
|
2023
|
|
Nonperforming
Assets
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
Non-owner
occupied RE
|
$
|
7,641
|
7,904
|
7,949
|
1,410
|
1,423
|
|
Commercial
business
|
|
1,016
|
838
|
829
|
488
|
319
|
|
Consumer
|
|
|
|
|
|
|
|
Real
estate
|
|
1,908
|
2,448
|
1,875
|
1,380
|
985
|
|
Home
equity
|
|
312
|
393
|
565
|
367
|
1,236
|
|
Other
|
|
-
|
-
|
-
|
1
|
-
|
|
Total nonaccrual
loans
|
|
10,877
|
11,583
|
11,218
|
3,646
|
3,963
|
|
Other real estate
owned
|
|
-
|
-
|
-
|
-
|
-
|
|
Total nonperforming
assets
|
$
|
10,877
|
11,583
|
11,218
|
3,646
|
3,963
|
|
Nonperforming assets as
a percentage of:
|
|
|
|
|
|
|
|
Total
assets
|
|
0.27 %
|
0.28 %
|
0.27 %
|
0.09 %
|
0.10 %
|
|
Total
loans
|
|
0.30 %
|
0.32 %
|
0.31 %
|
0.10 %
|
0.11 %
|
|
Classified assets/tier
1 capital plus allowance for credit
losses
|
|
4.25 %
|
4.35 %
|
4.22 %
|
3.99 %
|
4.25 %
|
|
|
Quarter
Ended
|
|
|
December
31
|
September
30
|
June
30
|
March
31
|
December
31
|
|
(dollars in
thousands)
|
|
2024
|
2024
|
2024
|
2024
|
2023
|
|
Allowance for Credit
Losses
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
|
40,166
|
40,157
|
40,441
|
40,682
|
41,131
|
|
Loans
charged-off
|
|
(143)
|
(118)
|
(1,049)
|
(424)
|
(119)
|
|
Recoveries of loans
previously charged-off
|
|
141
|
127
|
15
|
183
|
310
|
|
Net loans
(charged-off) recovered
|
|
(2)
|
9
|
(1,034)
|
(241)
|
191
|
|
Provision for (reversal
of) credit losses
|
|
(250)
|
-
|
750
|
-
|
(640)
|
|
Balance, end of
period
|
$
|
39,914
|
40,166
|
40,157
|
40,441
|
40,682
|
|
Allowance for credit
losses to gross loans
|
|
1.10 %
|
1.11 %
|
1.11 %
|
1.11 %
|
1.13 %
|
|
Allowance for credit
losses to nonaccrual loans
|
|
366.94 %
|
346.78 %
|
357.95 %
|
1,109.13 %
|
1,026.58 %
|
|
Net charge-offs
(recoveries) to average loans QTD
(annualized)
|
|
0.00 %
|
0.00 %
|
0.11 %
|
0.03 %
|
(0.02 %)
|
Total nonperforming assets decreased by $706 thousand during the fourth quarter of 2024,
representing 0.27% of total assets compared to 0.28% for the third
quarter of 2024 and 0.10% for the fourth quarter of 2023. While we
added four new relationships to nonaccrual status during the fourth
quarter of 2024, there were also seven relationships which either
returned to accrual status or paid off during the quarter. In
addition, our classified asset ratio decreased to 4.25% for the
fourth quarter of 2024 from 4.35% in the third quarter of 2024 and
remained unchanged at 4.25% in the fourth quarter of 2023.
At December 31, 2024, the
allowance for credit losses was $39.9
million, or 1.10% of total loans, compared to $40.2 million, or 1.11% of total loans at
September 30, 2024, and $40.7 million, or 1.13% of total loans, at
December 31, 2023. We had net
charge-offs of $2 thousand, or 0.00%
annualized, for the fourth quarter of 2024, compared to net
recoveries of $9 thousand for the
third quarter of 2024 and net recoveries of $191 thousand for the fourth quarter of 2023.
There was a reversal of the provision for credit losses of
$250 thousand for the fourth quarter
of 2024, compared to no provision for credit losses for the third
quarter of 2024 and a reversal of the provision of credit losses of
$640 thousand for the fourth quarter
of 2023. The provision reversal was driven by lower expected loss
rates resulting from low charge-offs during the quarter and
year.
|
LOAN
COMPOSITION - Unaudited
|
|
|
Quarter Ended
|
|
|
December
31
|
September
30
|
June
30
|
March
31
|
December
31
|
|
(dollars in
thousands)
|
|
2024
|
2024
|
2024
|
2024
|
2023
|
|
Commercial
|
|
|
|
|
|
|
|
Owner occupied
RE
|
$
|
651,597
|
642,608
|
642,008
|
631,047
|
631,657
|
|
Non-owner occupied
RE
|
|
924,367
|
917,642
|
917,034
|
944,530
|
942,529
|
|
Construction
|
|
103,204
|
144,665
|
144,968
|
157,464
|
150,680
|
|
Business
|
|
556,117
|
521,535
|
527,017
|
520,073
|
500,161
|
|
Total commercial
loans
|
|
2,235,285
|
2,226,450
|
2,231,027
|
2,253,114
|
2,225,027
|
|
Consumer
|
|
|
|
|
|
|
|
Real estate
|
|
1,128,629
|
1,132,371
|
1,126,155
|
1,101,573
|
1,082,429
|
|
Home equity
|
|
204,897
|
195,383
|
189,294
|
184,691
|
183,004
|
|
Construction
|
|
20,874
|
21,582
|
32,936
|
53,216
|
63,348
|
|
Other
|
|
42,082
|
43,770
|
43,109
|
51,172
|
48,819
|
|
Total consumer
loans
|
|
1,396,482
|
1,393,106
|
1,391,494
|
1,390,652
|
1,377,600
|
|
Total gross loans, net
of deferred fees
|
|
3,631,767
|
3,619,556
|
3,622,521
|
3,643,766
|
3,602,627
|
|
Less—allowance for
credit losses
|
|
(39,914)
|
(40,166)
|
(40,157)
|
(40,441)
|
(40,682)
|
|
Total loans,
net
|
$
|
3,591,853
|
3,579,390
|
3,582,364
|
3,603,325
|
3,561,945
|
|
DEPOSIT
COMPOSITION - Unaudited
|
|
|
Quarter Ended
|
|
|
December
31
|
September
30
|
June
30
|
March
31
|
December
31
|
|
(dollars in
thousands)
|
|
2024
|
2024
|
2024
|
2024
|
2023
|
|
Non-interest
bearing
|
$
|
683,081
|
689,749
|
683,291
|
671,708
|
674,167
|
|
Interest
bearing:
|
|
|
|
|
|
|
|
NOW
accounts
|
|
314,588
|
339,412
|
293,875
|
293,064
|
310,218
|
|
Money
market accounts
|
|
1,438,530
|
1,423,403
|
1,562,786
|
1,603,796
|
1,605,278
|
|
Savings
|
|
31,976
|
29,283
|
28,739
|
32,248
|
31,669
|
|
Time, less
than $250,000
|
|
193,562
|
223,582
|
219,532
|
206,657
|
190,167
|
|
Time and
out-of-market deposits, $250,000 and over
|
|
774,028
|
813,396
|
671,646
|
653,208
|
568,065
|
|
Total
deposits
|
$
|
3,435,765
|
3,518,825
|
3,459,869
|
3,460,681
|
3,379,564
|
|
|
|
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 totaling
$774,028,000.
|
|
(7) December 31,
2024 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 mortgage
loans held for sale.
|
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
second largest bank headquartered in South Carolina. Southern First Bank has been
providing financial services since 1999 and now operates in 12
locations in the Greenville,
Columbia, and Charleston markets of South Carolina as well as the Charlotte,
Triangle and Triad regions of North
Carolina and Atlanta,
Georgia. Southern First Bancshares has consolidated assets
of approximately $4.1 billion and its
common stock is traded on 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 "believe," "expect,"
"anticipate," "estimate," "preliminary", "intend," "plan,"
"target," "continue," "lasting," and "project," 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
the company conducts operations may be different than expected; (3)
the rate of delinquencies and amounts of charge-offs, the level of
allowance for credit loss, the rates of loan and deposit growth as
well as pricing of each product, or adverse changes in asset
quality in our loan portfolio, which may result in increased credit
risk-related losses and expenses; (4) changes in legislation,
regulation, policies, or administrative practices, whether by
judicial, governmental, or legislative action, including, but not
limited to, changes affecting oversight of the financial services
industry or consumer protection; (5) the impact of changes to
Congress and the office of the President on the regulatory
landscape and capital markets; (6) adverse conditions in the stock
market, the public debt market and other capital markets (including
changes in interest rate conditions) could continue to have a
negative impact on the company; (7) changes in interest rates,
which may continue to affect the company's net income, interest
expense, prepayment penalty income, mortgage banking income, and
other future cash flows, or the market value of the company's
assets, including its investment securities; (8) elevated inflation
which may cause adverse risk to the overall economy, and could
indirectly pose challenges to our clients and to our business; (9)
any increase in FDIC assessments which have increased and may
continue to increase our cost of doing business; and (10) changes
in accounting principles, policies, practices, or
guidelines. 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, except as required by law.
FINANCIAL & MEDIA CONTACT:
ART SEAVER 864-679-9010
WEB SITE: www.southernfirst.com
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SOURCE Southern First Bancshares, Inc.
