Financial Performance - Net income for Q3 2024 was $4.4 million, or $0.54 per diluted share, representing a $1.4 million increase from Q2 2024 and a $284 thousand increase from Q3 2023 [4]. - Noninterest income for Q3 2024 was $3.2 million, down from $3.5 million in Q2 2024, with mortgage banking income at $1.4 million [5]. - Net interest income for Q3 2024 was $20.6 million, an increase of $1.1 million from Q2 2024, driven by a $625 thousand increase in interest income and a $438 thousand decrease in interest expense [7]. - The effective tax rate for Q3 2024 was 23.5%, slightly up from 23.3% in Q2 2024 [7]. - The book value per common share increased to $40.04 in Q3 2024, up from $39.09 in Q2 2024 [9]. Asset and Liability Management - Total assets as of September 30, 2024, were $4,174.6 million, up from $4,109.8 million in June 2024 [9]. - Total liabilities increased to $3,848.1 million as of September 30, 2024, compared to $3,791.1 million in June 2024 [9]. - Total deposits rose to $3,518.8 million in Q3 2024, up from $3,459.9 million in Q2 2024 [9]. - Total gross loans, net of deferred fees, amounted to $3.62 billion as of September 30, 2024, a slight decrease from $3.62 billion in Q2 2024 [12]. - Total deposits reached $3.52 billion as of September 30, 2024, an increase from $3.46 billion in Q2 2024 [13]. Loan and Credit Quality - Total loans amounted to $3.6 billion and total deposits were $3.5 billion [3]. - Nonperforming assets to total assets ratio was 0.28%, with net recoveries of $9 thousand [3]. - The allowance for credit losses was $40.2 million, or 1.11% of total loans, with net recoveries of $9 thousand for Q3 2024, compared to net charge-offs of $1.0 million in Q2 2024 [12]. - The classified asset ratio was 4.35% for Q3 2024, up from 4.22% in Q2 2024 [11]. - The allowance for credit losses to nonaccrual loans was 346.78% as of September 30, 2024, compared to 357.95% in Q2 2024 [12]. Efficiency and Ratios - The efficiency ratio improved to 75.90% in Q3 2024, compared to 80.87% in Q2 2024 [3]. - The loans to deposits ratio was 102.86% in Q3 2024, down from 104.70% in Q2 2024 [3]. - Net interest margin increased to 2.08% in Q3 2024, up from 1.98% in Q2 2024 [3]. - The yield on the loan portfolio increased by seven basis points in Q3 2024, while the cost of interest-bearing deposits decreased by two basis points compared to Q2 2024 [7]. - The company maintained a total risk-based capital ratio of 12.61% [3]. Other Key Metrics - Core checking accounts grew by 21% on an annualized basis [2]. - Noninterest expense decreased to $18.0 million in Q3 2024, a reduction of $604 thousand from Q2 2024, primarily due to lower compensation and benefits expenses [5]. - Total nonperforming assets increased by $365 thousand during Q3 2024, representing 0.28% of total assets, compared to 0.27% in Q2 2024 [11]. - Non-owner occupied real estate loans totaled $917.6 million as of September 30, 2024, compared to $917.0 million in Q2 2024 [12]. - The company did not record a provision for credit losses in Q3 2024, contrasting with a $750 thousand provision in Q2 2024 [12].

Financial Performance - Net income available to common shareholders for Q2 2024 was $2.999 million, up 22% from $2.458 million in Q2 2023[124] - Diluted earnings per share (EPS) increased to $0.37 for Q2 2024, compared to $0.31 for Q2 2023, reflecting a 19.35% growth[124] - For the six months ended June 30, 2024, net income was $5.5 million, up from $5.2 million in the same period of 2023[125] - Diluted EPS for the six months ended June 30, 2024, was $0.68, compared to $0.64 for the same period in 2023, indicating a 6.25% increase[125] Assets and Liabilities - Total assets as of June 30, 2024, reached $4.11 billion, a 1.3% increase from $4.06 billion at December 31, 2023[122] - Total liabilities at June 30, 2024, were $3.79 billion, compared to $3.74 billion at December 31, 2023[122] - The principal component of liabilities is deposits, which accounted for $3.46 billion of total liabilities as of June 30, 2024[122] - Total deposits increased to $3.46 billion as of June 30, 2024, from $3.38 billion at December 31, 2023[122] Interest Income and Margin - Net interest income for Q2 2024 was $19.5 million, a 3.7% increase from $18.8 million in Q2 2023, driven by a $7.9 million rise in interest income[126] - The net interest margin on a tax-equivalent basis was 1.98% for Q2 2024, down from 2.05% in Q2 2023[126] - The net interest margin (TE) decreased by 7 basis points to 1.98% in Q2 2024 compared to Q2 2023, primarily due to rising deposit and borrowing costs outpacing loan yields[131] - Total interest income for the first half of 2024 was $38.2 million, compared to $39.2 million for the same period in 2023, reflecting a $1.1 million, or 2.74%, decrease[141] Interest Expense - The company recorded a $19.0 million increase in interest expense for the first half of 2024, primarily due to higher rates on interest-bearing deposits[141] - Total interest expense for Q2 2024 was $2.2 million, reflecting a $572,000 increase from the previous year[140] Noninterest Income and Expenses - Noninterest income for Q2 2024 was $3.5 million, a $787,000, or 28.8%, increase from $2.7 million in Q2 2023, with mortgage banking income rising by 43.8%[146] - Total noninterest expense for Q2 2024 was $18.6 million, a $1.3 million, or 7.2%, increase from $17.4 million in Q2 2023, primarily due to higher compensation and benefits[150] - The efficiency ratio for Q2 2024 was 80.9%, compared to 80.7% in Q2 2023, indicating a slight increase in expenses relative to revenue[151] Credit Quality - The provision for credit losses in Q2 2024 was $500,000, down from $910,000 in Q2 2023, with a total provision expense of $325,000 for the first half of 2024[144] - Nonperforming assets totaled $11.2 million, or 0.27% of total assets, as of June 30, 2024, compared to $4.0 million, or 0.10% of total assets, at December 31, 2023[161] - The allowance for credit losses was $40.2 million, representing 1.11% of outstanding loans and providing coverage of 357.95% of nonperforming loans at June 30, 2024[166] Deposits and Loans - Retail deposits represented $3.00 billion, or 86.6% of total deposits, while wholesale deposits were $463.7 million, or 13.4%, at June 30, 2024[169] - The loan-to-deposit ratio was 105% at June 30, 2024, compared to 107% at December 31, 2023[169] - Average loans for the six months ended June 30, 2024, were $3.63 billion, up from $3.42 billion in the same period of 2023[153] - The loan portfolio increased by $19.9 million, or 0.55%, during the first six months of 2024, with a $6.0 million increase in commercial loans and a $13.9 million increase in consumer loans[156] Capital and Equity - Total shareholders' equity increased to $318.7 million at June 30, 2024, from $312.5 million at December 31, 2023, driven by net income of $5.5 million[182] - Total Capital to risk-weighted assets as of June 30, 2024, is $406,383 thousand with a ratio of 12.77%[189] - Tier 1 Capital to risk-weighted assets is $343,614 thousand, representing 10.80% as of June 30, 2024[189] - Common Equity Tier 1 Capital to risk-weighted assets stands at $330,614 thousand, which is 10.39% as of June 30, 2024[189] Risk Management - Interest rate risk is actively monitored, with potential impacts on net interest income forecasted under various scenarios[199] - A 300 basis point increase in interest rates is projected to decrease net interest income by 13.97%[202] Miscellaneous - The Company has not paid cash dividends to shareholders since inception, as cash dividends depend on receiving cash from the Bank[190] - The financial statements have been prepared on a historical cost basis, not accounting for inflation effects[191]

Core Viewpoint - Southern First (SFST) reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.31 per share a year ago [1][11]. Financial Performance - The company posted revenues of $23.05 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 4.16%, compared to $21.56 million in the same quarter last year [2]. - This quarterly report represents an earnings surprise of 27.59% [11]. - Over the last four quarters, Southern First has exceeded consensus EPS estimates three times [7]. Future Outlook - The company is expected to report quarterly earnings of $1.15 per share in its upcoming report, reflecting a year-over-year change of +26.4% [5]. - The current consensus EPS estimate for the next quarter is $0.38 on revenues of $23.57 million, and for the current fiscal year, it is $1.39 on revenues of $91.27 million [6]. - The estimate revisions trend for Southern First is currently unfavorable, leading to a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [13]. Industry Context - Southern First operates within the Zacks Banks - Southeast industry, which is currently ranked in the bottom 29% of over 250 Zacks industries [10]. - The company’s shares have declined approximately 6.2% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [8].

Core Insights - Southern First Bancshares, Inc. reported solid financial performance for the second quarter of 2024, with net income of $3.0 million and diluted earnings per share of $0.37, reflecting an increase from the previous quarter and year [7][24][27]. Financial Performance - Total interest income for Q2 2024 was $50.5 million, an increase of $2.2 million from Q1 2024, driven by higher interest income on loans and federal funds sold [9][30]. - Net interest income was $19.5 million for Q2 2024, up $883 thousand from Q1 2024, with a net interest margin of 1.98%, a four-basis point increase from the previous quarter [9][30][24]. - Noninterest income rose to $3.5 million in Q2 2024, compared to $2.7 million in Q1 2024, with mortgage banking income being the largest component [28][24]. Asset Quality - Nonperforming assets increased to $11.2 million, representing 0.27% of total assets, up from 0.09% in Q1 2024 [14][24]. - The allowance for credit losses was $40.2 million, or 1.11% of total loans, with net charge-offs of $1.0 million for Q2 2024 [32][24]. Balance Sheet - Total assets as of June 30, 2024, were approximately $4.1 billion, with total loans at $3.6 billion, a decrease of $21.2 million from Q1 2024 [13][24]. - Total deposits were $3.5 billion, a slight decrease of $812 thousand from the previous quarter [24][13]. Management Commentary - The CEO highlighted the company's focus on disciplined pricing and building a strong balance sheet, while also noting the addition of a new Chief Financial Officer to enhance the team's capabilities [16].

Financial Performance - Net income available to common shareholders for Q2 2024 was $2,999 thousand, an increase of 18.9% from $2,522 thousand in Q1 2024[3] - Total revenue for Q2 2024 reached $23,051 thousand, up 8.2% from $21,309 thousand in Q1 2024[3] - Net income for Q2 2024 was $3.0 million, or $0.37 per diluted share, an increase of $477 thousand from Q1 2024 and $541 thousand from Q2 2023[17] - Noninterest income rose to $3.5 million in Q2 2024, compared to $2.7 million in Q1 2024, with mortgage banking income at $1.9 million[18] - The effective tax rate was 23.3% in Q2 2024, down from 25.5% in Q1 2024[20] Interest Income and Margin - Net interest income for Q2 2024 was $19,528 thousand, an increase of 4.7% from $18,645 thousand in Q1 2024[4] - The net interest margin for Q2 2024 improved to 1.98%, a four-basis point increase from 1.94% in Q1 2024[7] - Net interest margin improved to 1.98% in Q2 2024, compared to 1.94% in Q1 2024[16] - The net interest spread for the second quarter of 2024 was 1.08%, compared to 1.05% in the previous quarter[21] Loans and Deposits - Total loans as of June 30, 2024, were $3,622,521 thousand, a slight decrease from $3,643,766 thousand in Q1 2024[3] - Total loans decreased by $21.2 million, or 2.35% annualized, to $3.6 billion in Q2 2024 compared to Q1 2024[16] - Total deposits stood at $3,459,869 thousand, a marginal decrease from $3,460,681 thousand in Q1 2024[3] - Total deposits were $3.5 billion in Q2 2024, a decrease of $812 thousand, or 0.09% annualized, from Q1 2024[16] Asset Quality - The provision for credit losses was $500 thousand in Q2 2024, compared to a reversal of $175 thousand in Q1 2024[4] - Nonperforming assets to total assets ratio increased to 0.27% in Q2 2024, up from 0.09% in Q1 2024[3] - Nonperforming assets increased to $11.2 million, representing 0.27% of total assets, up from 0.09% in Q1 2024[10] - The classified asset ratio increased to 4.22% in Q2 2024 from 3.99% in Q1 2024[10] Expenses and Efficiency - Noninterest expense for Q2 2024 was $18,643 thousand, reflecting an increase of $543 thousand from Q1 2024[5] - The efficiency ratio improved to 80.87% in Q2 2024, down from 84.94% in Q1 2024[3] Balance Sheet and Assets - Total assets were $4.1 billion as of June 30, 2024, slightly up from $4.1 billion at the end of Q1 2024[8] - Total assets increased to $4,138.8 million as of June 30, 2024, compared to $4,018.1 million at the end of the previous quarter[21] - The company reported total liabilities of $3,090.1 million and shareholders' equity of $316.9 million for the quarter ended June 30, 2024[21] - The allowance for credit losses was $40.2 million, or 1.11% of total loans, consistent with the previous quarter's allowance of $40.4 million[24] Market Presence and Operations - Southern First Bancshares has consolidated assets of approximately $4.1 billion, indicating a stable financial position[32] - The company operates in 12 locations across South Carolina and North Carolina, as well as Atlanta, Georgia, indicating a strong market presence[32] - Southern First Bank is the second largest bank headquartered in South Carolina, highlighting its significant market share[32] - The common stock of Southern First Bancshares is traded on The NASDAQ Global Market under the symbol "SFST," providing liquidity for investors[32] - The bank has been providing financial services since 1999, showcasing its long-standing experience in the industry[32] Deposit Composition - Total interest-bearing deposits, including NOW accounts and savings, reflect a diverse deposit base, essential for funding operations[31] - Money market accounts decreased to $1,562,786 thousand from $1,603,796 thousand, reflecting a decline of 2.0%[31] - Time deposits of less than $250,000 increased to $219,532 thousand, up 6.7% from $206,657 thousand in the previous quarter[31] - Time and out-of-market deposits of $250,000 and over rose to $671,646 thousand, an increase of 2.0% from $653,208 thousand[31] Future Outlook - The company anticipates continued competitive pressures and potential impacts from changes in interest rates and economic conditions[28]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number 000-27719 Southern First Bancshares, Inc. (Exact name of registrant as specified in its charter) South Carolina 58-2459561 ( ...

Exhibit 99.1 "Our team generated excellent performance during the first quarter in terms of growing profitable client relationships and continuing to manage our credit quality exceptionally well," stated Art Seaver, the Company's Chief Executive Officer. "Our disciplined approach to pricing both loans and deposits resulted in improvement in our net interest margin, and this focus will continue as we build on our success for the long-term benefit of our communities and stakeholders." | --- | --- | --- | --- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x Annual Report Pursuant To Section 13 Or 15(d) of The Securities Exchange Act of 1934 For The Fiscal Year December 31, 2023. Or o Transition Report Pursuant To Section 13 Or 15(d) of The Securities Exchange Act of 1934 For the Transition Period from ___________ to ________________ Commission file number 000-27719 Southern First Bancshares, Inc. (Exact name of registrant as specified in its charter) | South C ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number 000-27719 Southern First Bancshares, Inc. (Exact name of registrant as specified in its charter) South Carolina 58-24595 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number 000-27719 Southern First Bancshares, Inc. (Exact name of registrant as specified in its charter) South Carolina 58-2459561 (S ...