EX-99.1 2 sfst4356421_991.htm EARNINGS PRESS RELEASE FOR PERIOD ENDED JUNE 30, 2024

Exhibit 99.1

Southern First Reports Results for Second Quarter 2024

Greenville, South Carolina, July 18, 2024 – Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, today announced its financial results for the three-month period ended June 30, 2024.

“We reported solid performance in the second quarter with improved profitability across all measures. Loans and core deposits were modestly down, as expected, as we continue to focus on disciplined pricing on both sides of the balance sheet. Noninterest-bearing deposit growth was excellent, which reflects the strength of our team. We are expanding profitable client relationships by delivering a unique, authentic service experience. Economic conditions across all our markets remain positive, but we are constantly aware of the broader environment and remain diligent and conservative. Our focus on building a strong, high-quality balance sheet with measured, deliberate growth has been paying off in our financial results,” stated Art Seaver, the Company’s Chief Executive Officer. “We are balancing our objective of delivering high performance today with our patience in building an even stronger company for the future. Part of this effort is attracting high-quality talent to our Southern First team and we did just that this quarter with the addition of Chris Zych as Chief Financial Officer. Chris’s depth of experience and success in banking over the years will be an asset to us.”

2024 Second Quarter Highlights

● | Net income was $3.0 million and diluted earnings per common share were $0.37 for Q2 2024
● | Total loans were $3.6 billion at Q2 2024, a decrease of $21.2 million, or 2.35% annualized, from Q1 2024
● | Total deposits were $3.5 billion at Q2 2024, a decrease of $812 thousand, or 0.09% annualized, from Q1 2024
● | Nonperforming assets to total assets were 0.27% and past due loans to total loans were 0.30% at Q2 2024
● | Net interest margin was 1.98% for Q2 2024, compared to 1.94% for Q1 2024
● | Book value per common share increased to $39.09 at Q2 2024

|  | Quarter Ended
|  | June 30 | March 31 | December 31 | September 30 | June 30
|  | 2024 | 2024 | 2023 | 2023 | 2023
Earnings ($ in thousands, except per share data): |  |  |  |  |  |
Net income available to common shareholders | $ | 2,999 | 2,522 | 4,167 | 4,098 | 2,458
Earnings per common share, diluted |  | 0.37 | 0.31 | 0.51 | 0.51 | 0.31
Total revenue(1) |  | 23,051 | 21,309 | 21,390 | 22,094 | 21,561
Net interest margin (tax-equivalent)(2) |  | 1.98% | 1.94% | 1.92% | 1.97% | 2.05%
Return on average assets(3) |  | 0.29% | 0.25% | 0.40% | 0.40% | 0.26%
Return on average equity(3) |  | 3.81% | 3.22% | 5.39% | 5.35% | 3.27%
Efficiency ratio(4) |  | 80.87% | 84.94% | 79.61% | 78.31% | 80.67%
Noninterest expense to average assets (3) |  | 1.81% | 1.81% | 1.64% | 1.69% | 1.82%
Balance Sheet ($ in thousands): |  |  |  |  |  |
Total loans(5) | $ | 3,622,521 | 3,643,766 | 3,602,627 | 3,553,632 | 3,537,616
Total deposits |  | 3,459,869 | 3,460,681 | 3,379,564 | 3,347,771 | 3,433,018
Core deposits(6) |  | 2,788,223 | 2,807,473 | 2,811,499 | 2,866,574 | 2,880,507
Total assets |  | 4,109,849 | 4,105,704 | 4,055,789 | 4,019,957 | 4,002,107
Book value per common share |  | 39.09 | 38.65 | 38.63 | 37.57 | 37.42
Loans to deposits |  | 104.70% | 105.29% | 106.60% | 106.15% | 103.05%
Holding Company Capital Ratios(7): |  |  |  |  |  |
Total risk-based capital ratio |  | 12.77% | 12.59% | 12.57% | 12.56% | 12.40%
Tier 1 risk-based capital ratio |  | 10.80% | 10.63% | 10.60% | 10.58% | 10.42%
Leverage ratio |  | 8.27% | 8.44% | 8.14% | 8.17% | 8.48%
Common equity tier 1 ratio(8) |  | 10.39% | 10.22% | 10.19% | 10.17% | 10.00%
Tangible common equity(9) |  | 7.76% | 7.68% | 7.70% | 7.56% | 7.53%
Asset Quality Ratios: |  |  |  |  |  |
Nonperforming assets/total assets |  | 0.27% | 0.09% | 0.10% | 0.11% | 0.08%
Classified assets/tier one capital plus allowance for credit losses |  | 4.22% | 3.99% | 4.25% | 4.72% | 4.68%
Loans 30 days or more past due/loans(5) |  | 0.30% | 0.36% | 0.37% | 0.13% | 0.07%
Net charge-offs/average loans(5) (YTD annualized) |  | 0.07% | 0.03% | 0.00% | 0.01% | 0.03%
Allowance for credit losses/loans(5) |  | 1.11% | 1.11% | 1.13% | 1.16% | 1.16%
Allowance for credit losses/nonaccrual loans |  | 357.95% | 1,109.13% | 1,026.58% | 953.25% | 1,363.11%

[Footnotes to table located on page 6]

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income statements – Unaudited

|  | Quarter Ended
|  | Jun 30 | Mar 31 | Dec 31 | Sept 30 | Jun 30
(in thousands, except per share data) |  | 2024 | 2024 | 2023 | 2023 | 2023
Interest income |  |  |  |  |  |
Loans | $ | 46,545 | 45,605 | 44,758 | 43,542 | 41,089
Investment securities |  | 1,418 | 1,478 | 1,674 | 1,470 | 706
Federal funds sold |  | 2,583 | 1,280 | 2,703 | 2,435 | 891
Total interest income |  | 50,546 | 48,363 | 49,135 | 47,447 | 42,686
Interest expense |  |  |  |  |  |
Deposits |  | 28,216 | 26,932 | 27,127 | 25,130 | 25,937
Borrowings |  | 2,802 | 2,786 | 2,948 | 2,972 | 1,924
Total interest expense |  | 31,018 | 29,718 | 30,075 | 28,102 | 23,861
Net interest income |  | 19,528 | 18,645 | 19,060 | 19,345 | 18,825
Provision (reversal) for credit losses |  | 500 | (175) | (975) | (500) | 910
Net interest income after provision for credit losses |  | 19,028 | 18,820 | 20,035 | 19,845 | 17,915
Noninterest income |  |  |  |  |  |
Mortgage banking income |  | 1,923 | 1,164 | 868 | 1,208 | 1,337
Service fees on deposit accounts |  | 423 | 387 | 371 | 356 | 331
ATM and debit card income |  | 587 | 544 | 565 | 588 | 536
Income from bank owned life insurance |  | 384 | 377 | 361 | 349 | 338
Other income |  | 206 | 192 | 165 | 248 | 194
Total noninterest income |  | 3,523 | 2,664 | 2,330 | 2,749 | 2,736
Noninterest expense |  |  |  |  |  |
Compensation and benefits |  | 11,290 | 10,857 | 9,401 | 10,231 | 10,287
Occupancy |  | 2,552 | 2,557 | 2,718 | 2,562 | 2,518
Outside service and data processing costs |  | 1,962 | 1,846 | 2,000 | 1,744 | 1,705
Insurance |  | 965 | 955 | 937 | 1,243 | 897
Professional fees |  | 582 | 618 | 581 | 504 | 751
Marketing |  | 389 | 369 | 364 | 293 | 335
Other |  | 903 | 898 | 1,027 | 725 | 900
Total noninterest expenses |  | 18,643 | 18,100 | 17,028 | 17,302 | 17,393
Income before provision for income taxes |  | 3,908 | 3,384 | 5,337 | 5,293 | 3,258
Income tax expense |  | 909 | 862 | 1,170 | 1,195 | 800
Net income available to common shareholders | $ | 2,999 | 2,522 | 4,167 | 4,098 | 2,458
Earnings per common share – Basic | $ | 0.37 | 0.31 | 0.51 | 0.51 | 0.31
Earnings per common share – Diluted |  | 0.37 | 0.31 | 0.51 | 0.51 | 0.31
Basic weighted average common shares |  | 8,126 | 8,110 | 8,056 | 8,053 | 8,051
Diluted weighted average common shares |  | 8,141 | 8,142 | 8,080 | 8,072 | 8,069

[Footnotes to table located on page 6]

Net income for the second quarter of 2024 was $3.0 million, or $0.37 per diluted share, a $477 thousand increase from the first quarter of 2024 and a $541 thousand increase from the second quarter of 2023. Net interest income increased $883 thousand during the second quarter of 2024, compared to the first quarter of 2024, and increased $703 thousand, compared to the second quarter of 2023. The increase in net interest income from the prior quarter and prior year was driven by additional interest income on our interest-earning assets.

The provision for credit losses was $500 thousand for the second quarter of 2024, compared to a reversal of $175 thousand during the first quarter of 2024. The second quarter provision for credit losses includes a $750 thousand provision related to the loan portfolio which was driven by an increase in the level of charge-offs we experienced during the quarter, combined with an increase in the specific reserve on individually assessed loans. In addition, the provision for credit losses includes a $250 thousand reversal in the provision for unfunded commitments due to a decrease in the balance of unfunded commitments at June 30, 2024.

Noninterest income was $3.5 million for the second quarter of 2024, compared to $2.7 million for the first quarter of 2024. Mortgage banking income continues to be the largest component of our noninterest income at $1.9 million for the second quarter of 2024 compared to $1.2 million for the first quarter of 2024.

Noninterest expense for the second quarter of 2024 was $18.6 million, a $543 thousand increase from the first quarter of 2024. The increase in noninterest expense from the previous quarter was driven by an increase in compensation and benefits

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expense as well as an increase in outside service and data processing costs. The increase in compensation and benefits expenses was due primarily to an increase in salaries and commissions expense, while the increase in outside service and data processing costs was driven by an increase in software licensing and maintenance costs.

Our effective tax rate was 23.3% for the second quarter of 2024 as compared to 25.5% for the first quarter of 2024. The lower tax rate in the second quarter of 2024 was primarily related to the effect of equity compensation transactions during the quarter.

Net interest income and margin - Unaudited

|  | For the Three Months Ended
| June 30, 2024 | March 31, 2024 | June 30, 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 | $ 186,584 | $ 2,583 | 5.57% | $ 89,969 | $ 1,280 | 5.71% | $ 71,004 | $ 891 | 5.03%
Investment securities, taxable | 133,507 | 1,376 | 4.15% | 137,271 | 1,436 | 4.20% | 93,922 | 623 | 2.66%
Investment securities, nontaxable(2) | 8,027 | 55 | 2.73% | 8,097 | 55 | 2.70% | 10,200 | 108 | 4.24%
Loans(10) | 3,645,595 | 46,545 | 5.14% | 3,622,972 | 45,605 | 5.05% | 3,511,225 | 41,089 | 4.69%
Total interest-earning assets | 3,973,713 | 50,559 | 5.12% | 3,858,309 | 48,376 | 5.03% | 3,686,351 | 42,711 | 4.65%
Noninterest-earning assets | 165,093 |  |  | 159,813 |  |  | 155,847 |  |
Total assets | $4,138,806 |  |  | $4,018,122 |  |  | $3,842,198 |  |
Interest-bearing liabilities |  |  |  |  |  |  |  |  |
NOW accounts | $ 302,881 | 621 | 0.82% | $ 295,774 | 660 | 0.90% | $ 297,234 | 537 | 0.72%
Savings & money market | 1,611,991 | 16,324 | 4.07% | 1,620,521 | 16,299 | 4.03% | 1,727,009 | 15,298 | 3.55%
Time deposits | 898,878 | 11,271 | 5.04% | 801,734 | 9,973 | 4.99% | 573,095 | 6,102 | 4.27%
Total interest-bearing deposits | 2,813,750 | 28,216 | 4.03% | 2,718,029 | 26,932 | 3.97% | 2,597,338 | 21,937 | 3.39%
FHLB advances and other borrowings | 240,000 | 2,247 | 3.77% | 241,319 | 2,229 | 3.71% | 135,922 | 1,382 | 4.08%
Subordinated debentures | 36,360 | 555 | 6.14% | 36,333 | 557 | 6.15% | 36,251 | 542 | 6.00%
Total interest-bearing liabilities | 3,090,110 | 31,018 | 4.04% | 2,995,681 | 29,718 | 3.98% | 2,769,511 | 23,861 | 3.46%
Noninterest-bearing liabilities | 731,843 |  |  | 707,890 |  |  | 771,388 |  |
Shareholders’ equity | 316,853 |  |  | 314,551 |  |  | 301,299 |  |
Total liabilities and shareholders’ equity | $4,138,806 |  |  | $4,018,122 |  |  | $3,842,198 |  |
Net interest spread |  |  | 1.08% |  |  | 1.05% |  |  | 1.19%
Net interest income (tax equivalent) / margin |  | $19,541 | 1.98% |  | $18,658 | 1.94% |  | $18,850 | 2.05%
Less: tax-equivalent adjustment(2) |  | 13 |  |  | 13 |  |  | 25 |
Net interest income |  | $19,528 |  |  | $18,645 |  |  | $18,825 |

[Footnotes to table located on page 6]

Net interest income was $19.5 million for the second quarter of 2024, an $883 thousand increase from the first quarter of 2024, driven by a $2.2 million increase in interest income, on a tax-equivalent basis, partially offset by a $1.3 million increase in interest expense. The increase in interest income was driven by a $96.6 million increase in average federal funds sold and interest-bearing deposit balances, combined with a higher yield on our loan portfolio. Our net interest margin, on a tax-equivalent basis, was 1.98% for the second quarter of 2024, a four-basis point increase from 1.94% for the first quarter of 2024. During the second quarter of 2024, the yield on our loan portfolio increased by nine-basis points, while the cost of our interest-bearing deposits increased by only six-basis points, as compared to the first quarter of 2024, resulting in an increase in net interest margin for the period. In addition, our non-interest bearing deposits increased 6.94%, on an annualized basis, during the second quarter of 2024.

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Balance sheets - Unaudited

|  | Ending Balance
|  | June 30 | March 31 | December 31 | September 30 | June 30
(in thousands, except per share data) |  | 2024 | 2024 | 2023 | 2023 | 2023
Assets |  |  |  |  |  |
Cash and cash equivalents: |  |  |  |  |  |
Cash and due from banks | $ | 21,567 | 13,925 | 28,020 | 17,395 | 24,742
Federal funds sold |  | 164,432 | 144,595 | 119,349 | 127,714 | 170,145
Interest-bearing deposits with banks |  | 8,828 | 8,789 | 8,801 | 7,283 | 10,183
Total cash and cash equivalents |  | 194,827 | 167,309 | 156,170 | 152,392 | 205,070
Investment securities: |  |  |  |  |  |
Investment securities available for sale |  | 121,353 | 125,996 | 134,702 | 144,035 | 91,548
Other investments |  | 18,653 | 18,499 | 19,939 | 19,600 | 12,550
Total investment securities |  | 140,006 | 144,495 | 154,641 | 163,635 | 104,098
Mortgage loans held for sale |  | 14,759 | 11,842 | 7,194 | 7,117 | 15,781
Loans (5) |  | 3,622,521 | 3,643,766 | 3,602,627 | 3,553,632 | 3,537,616
Less allowance for credit losses |  | (40,157) | (40,441) | (40,682) | (41,131) | (41,105)
Loans, net |  | 3,582,364 | 3,603,325 | 3,561,945 | 3,512,501 | 3,496,511
Bank owned life insurance |  | 53,263 | 52,878 | 52,501 | 52,140 | 51,791
Property and equipment, net |  | 91,533 | 93,007 | 94,301 | 95,743 | 96,964
Deferred income taxes |  | 12,339 | 12,321 | 12,200 | 13,078 | 12,356
Other assets |  | 20,758 | 20,527 | 16,837 | 23,351 | 19,536
Total assets | $ | 4,109,849 | 4,105,704 | 4,055,789 | 4,019,957 | 4,002,107
Liabilities |  |  |  |  |  |
Deposits | $ | 3,459,869 | 3,460,681 | 3,379,564 | 3,347,771 | 3,433,018
FHLB Advances |  | 240,000 | 240,000 | 275,000 | 275,000 | 180,000
Subordinated debentures |  | 36,376 | 36,349 | 36,322 | 36,295 | 36,268
Other liabilities |  | 54,856 | 53,418 | 52,436 | 56,993 | 51,307
Total liabilities |  | 3,791,101 | 3,790,448 | 3,743,322 | 3,716,059 | 3,700,593
Shareholders’ equity |  |  |  |  |  |
Preferred stock - $.01 par value; 10,000,000 shares authorized |  | - | - | - | - | -
Common Stock - $.01 par value; 20,000,000 shares authorized |  | 82 | 82 | 81 | 81 | 81
Nonvested restricted stock |  | (4,710) | (5,257) | (3,596) | (4,065) | (4,051)
Additional paid-in capital |  | 124,174 | 124,159 | 121,777 | 121,757 | 120,912
Accumulated other comprehensive loss |  | (11,866) | (11,797) | (11,342) | (15,255) | (12,710)
Retained earnings |  | 211,068 | 208,069 | 205,547 | 201,380 | 197,282
Total shareholders’ equity |  | 318,748 | 315,256 | 312,467 | 303,898 | 301,514
Total liabilities and shareholders’ equity | $ | 4,109,849 | 4,105,704 | 4,055,789 | 4,019,957 | 4,002,107
Common Stock |  |  |  |  |  |
Book value per common share | $ | 39.09 | 38.65 | 38.63 | 37.57 | 37.42
Stock price: |  |  |  |  |  |
High |  | 30.36 | 38.71 | 37.15 | 30.18 | 31.34
Low |  | 25.70 | 29.80 | 25.16 | 24.22 | 21.33
Period end |  | 29.24 | 31.76 | 37.10 | 26.94 | 24.75
Common shares outstanding |  | 8,155 | 8,156 | 8,088 | 8,089 | 8,058

[Footnotes to table located on page 6]

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Asset quality measures - Unaudited

|  | Quarter Ended
|  | June 30 | March 31 | December 31 | September 30 | June 30
(dollars in thousands) |  | 2024 | 2024 | 2023 | 2023 | 2023
Nonperforming Assets |  |  |  |  |  |
Commercial |  |  |  |  |  |
Non-owner occupied RE | $ | 7,949 | 1,410 | 1,423 | 1,615 | 754
Commercial business |  | 829 | 488 | 319 | 404 | 137
Consumer |  |  |  |  |  |
Real estate |  | 1,875 | 1,380 | 985 | 1,228 | 1,053
Home equity |  | 565 | 367 | 1,236 | 1,068 | 1,072
Other |  | - | 1 | - | - | -
Total nonaccrual loans |  | 11,218 | 3,646 | 3,963 | 4,315 | 3,016
Other real estate owned |  | - | - | - | - | -
Total nonperforming assets | $ | 11,218 | 3,646 | 3,963 | 4,315 | 3,016
Nonperforming assets as a percentage of: |  |  |  |  |  |
Total assets |  | 0.27% | 0.09% | 0.10% | 0.11% | 0.08%
Total loans |  | 0.31% | 0.10% | 0.11% | 0.12% | 0.09%
Classified assets/tier 1 capital plus allowance for credit losses |  | 4.22% | 3.99% | 4.25% | 4.72% | 4.68%
|  | Quarter Ended
|  | June 30 | March 31 | December 31 | September 30 | June 30
(dollars in thousands) |  | 2024 | 2024 | 2023 | 2023 | 2023
Allowance for Credit Losses |  |  |  |  |  |
Balance, beginning of period | $ | 40,441 | 40,682 | 41,131 | 41,105 | 40,435
Loans charged-off |  | (1,049) | (424) | (119) | (42) | (440)
Recoveries of loans previously charged-off |  | 15 | 183 | 310 | 168 | 15
Net loans (charged-off) recovered |  | (1,034) | (241) | 191 | 126 | (425)
Provision for (reversal of) credit losses |  | 750 | - | (640) | (100) | 1,095
Balance, end of period | $ | 40,157 | 40,441 | 40,682 | 41,131 | 41,105
Allowance for credit losses to gross loans |  | 1.11 % | 1.11 % | 1.13 % | 1.16 % | 1.16 %
Allowance for credit losses to nonaccrual loans |  | 357.95 % | 1,109.13 % | 1,026.58 % | 953.25 % | 1,363.11 %
Net charge-offs (recoveries) to average loans QTD (annualized) |  | 0.11 % | 0.03 % | (0.02 %) | (0.01 %) | 0.05 %

Total nonperforming assets increased by $7.6 million during the second quarter of 2024, and represented 0.27% of total assets, an increase compared to 0.09% for the first quarter of 2024. The increase in nonperforming assets was driven by four new relationships, totaling $8.0 million, placed on nonaccrual during the second quarter of 2024, with one commercial relationship totaling $6.9 million related to the assisted living industry. In addition, our classified asset ratio increased to 4.22% for the second quarter of 2024 from 3.99% in the first quarter of 2024.

At June 30, 2024, the allowance for credit losses was $40.2 million, or 1.11% of total loans, compared to $40.4 million, or 1.11% of total loans at March 31, 2024. We had net charge-offs of $1.0 million, or 0.11% annualized, for the second quarter of 2024, compared to net charge-offs of $241 thousand, or 0.03% annualized, for the first quarter of 2024. We recorded a $750 thousand provision for credit losses related to the loan portfolio during the second quarter of 2024, compared to no provision related to the loan portfolio for the first quarter of 2024.

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LOAN COMPOSITION - Unaudited

|  | Quarter Ended
|  | June 30 | March 31 | December 31 | September 30 | June 30
(dollars in thousands) |  | 2024 | 2024 | 2023 | 2023 | 2023
Commercial |  |  |  |  |  |
Owner occupied RE | $ | 642,008 | 631,047 | 631,657 | 637,038 | 613,874
Non-owner occupied RE |  | 917,034 | 944,530 | 942,529 | 937,749 | 951,536
Construction |  | 144,968 | 157,464 | 150,680 | 119,629 | 115,798
Business |  | 527,017 | 520,073 | 500,161 | 500,253 | 511,719
Total commercial loans |  | 2,231,027 | 2,253,114 | 2,225,027 | 2,194,669 | 2,192,927
Consumer |  |  |  |  |  |
Real estate |  | 1,126,155 | 1,101,573 | 1,082,429 | 1,074,679 | 1,047,904
Home equity |  | 189,294 | 184,691 | 183,004 | 180,856 | 185,584
Construction |  | 32,936 | 53,216 | 63,348 | 54,210 | 61,044
Other |  | 43,109 | 51,172 | 48,819 | 49,218 | 50,157
Total consumer loans |  | 1,391,494 | 1,390,652 | 1,377,600 | 1,358,963 | 1,344,689
Total gross loans, net of deferred fees |  | 3,622,521 | 3,643,766 | 3,602,627 | 3,553,632 | 3,537,616
Less—allowance for credit losses |  | (40,157) | (40,441) | (40,682) | (41,131) | (41,105)
Total loans, net | $ | 3,582,364 | 3,603,325 | 3,561,945 | 3,512,501 | 3,496,511

DEPOSIT COMPOSITION - Unaudited

|  | Quarter Ended
|  | June 30 | March 31 | December 31 | September 30 | June 30
(dollars in thousands) |  | 2024 | 2024 | 2023 | 2023 | 2023
Non-interest bearing | $ | 683,291 | 671,708 | 674,167 | 675,409 | 698,084
Interest bearing: |  |  |  |  |  |
NOW accounts |  | 293,875 | 293,064 | 310,218 | 306,667 | 308,762
Money market accounts |  | 1,562,786 | 1,603,796 | 1,605,278 | 1,685,736 | 1,692,900
Savings |  | 28,739 | 32,248 | 31,669 | 34,737 | 36,243
Time, less than $250,000 |  | 219,532 | 206,657 | 190,167 | 125,506 | 114,691
Time and out-of-market deposits, $250,000 and over |  | 671,646 | 653,208 | 568,065 | 519,716 | 582,338
Total deposits | $ | 3,459,869 | 3,460,681 | 3,379,564 | 3,347,771 | 3,433,018

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 $671,646,000.
(7) June 30, 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,” “future, “target,” “continue,” “lasting,” “building,” 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.

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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 Presidential election 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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