Exhibit 99.1
Southern First
Reports Results
for Second Quarter of 2012
Greenville, South Carolina,
July 24, 2012
– Southern First Bancshares, Inc. (NASDAQ:
SFST), holding company for Southern First Bank, N.A. (also
doing business as Greenville First Bank), today announced that net income
for the second quarter of 2012 was $815 thousand compared to $628 thousand for
the second quarter of 2011. After dividends paid to the US Treasury on
preferred stock, net income available to the common shareholders was $589 thousand
compared to $343 thousand for the second quarter of 2011. For the six months
ended June 30, 2012, net income was $1.5 million and net income to common
shareholders was $988 thousand. In comparison, net income for the six months
ended June 30, 2011 was $1.2 million and the net income to common shareholders
was $596 thousand.
2012 Strategic Highlights
•
Completion of the partial redemption of TARP Capital
•
Company exits US Treasury’s TARP program
•
Announced plans to expand into Charleston, South Carolina
2012 Second Quarter
Operating Highlights
•
Net income increased 30% to $815,000 during
the 2nd quarter of 2012 compared to the prior year
•
Net interest margin for the 2nd
quarter of 2012 increased to 3.61% compared to 3.28% in 2011
•
Loan balances increased to $618.9 million for
the 2nd quarter compared to $578.0 million in June 2011
•
Nonperforming assets improved to 1.70% at 2nd
quarter 2012 compared to 1.73% in 2011
|
|
Quarter
Ended
|
|
|
June
30
|
March
31
|
December
31
|
September
30
|
June
30
|
|
|
|
2012
|
2012
|
2011
|
2011
|
2011
|
|
Asset Quality Ratios:
|
|
|
|
|
|
|
|
Nonperforming assets as a percentage of total assets
|
|
1.70%
|
1.79%
|
1.82%
|
1.65%
|
1.73%
|
|
Net charge-offs as a percentage of average loans (YTD annualized)
|
|
0.75%
|
0.62%
|
0.81%
|
0.62%
|
0.36%
|
|
Allowance for loan losses as a percentage of total loans
|
|
1.48%
|
1.51%
|
1.49%
|
1.48%
|
1.51%
|
|
Allowance for loan losses as a percentage of nonperforming loans
|
|
88.07%
|
91.55%
|
86.96%
|
94.94%
|
85.47%
|
|
Capital Ratios (1):
|
|
|
|
|
|
|
|
Total
risk-based capital ratio
|
|
13.34%
|
13.38%
|
13.34%
|
13.44%
|
13.58%
|
|
Tier
1 risk-based capital ratio
|
|
12.09%
|
12.13%
|
12.08%
|
12.19%
|
12.33%
|
|
Leverage
ratio
|
|
9.83%
|
9.78%
|
9.62%
|
9.84%
|
9.76%
|
|
Tangible
common equity (2)(3)
|
|
6.24%
|
6.02%
|
5.98%
|
5.98%
|
5.84%
|
|
Earnings ($ in thousands, except per share data):
|
|
|
|
|
|
|
|
Net
income
|
$
|
815
|
688
|
440
|
483
|
628
|
|
Net
income to common shareholder(2)
|
|
589
|
399
|
152
|
197
|
343
|
|
Earnings
per common share (2)(5)
|
|
0.15
|
0.10
|
0.04
|
0.05
|
0.09
|
|
Other
($ in thousands):
|
|
|
|
|
|
|
|
Net
interest margin (tax-equivalent)(4)
|
|
3.61%
|
3.45%
|
3.36%
|
3.36%
|
3.28%
|
|
Gross loans
|
$
|
618,874
|
607,925
|
598,635
|
591,055
|
577,981
|
|
Core deposits
|
|
426,640
|
430,073
|
413,090
|
394,621
|
394,179
|
|
Total deposits
|
|
554,417
|
566,722
|
562,912
|
554,676
|
556,449
|
|
Total assets
|
|
759,632
|
770,006
|
767,745
|
758,106
|
758,102
|
|
(1)
June 30, 2012 ratios are preliminary.
|
|
(2)
Amounts and ratios for periods prior to September 30, 2011 have been restated
for a correction of an immaterial error in accounting for preferred stock and
the related discount accretion, as explained below.
|
|
(3)
The tangible common equity ratio is calculated as total equity less preferred
stock divided by total assets.
|
|
(4)
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.
|
|
(5) Per share amounts for the 2011 periods have been restated to
reflect the 10% stock dividend in 2012.
|
Partial Repurchase of SFST’s Preferred Shares
On June 27, 2012, the U.S. Treasury
sold its preferred stock of the company through a public offering structured as
a modified Dutch auction. The company bid on a portion of the preferred
stock in the auction after receiving approval from its regulators to do
so. The clearing price per share for the preferred shares was $904.00
(compared to a par value of $1,000.00 per share) and the company was successful
in repurchasing 1,000 shares of the 17,299 shares of preferred stock outstanding
through the auction process. Included in the second quarter of 2012 operating
results are approximately $95 thousand of costs incurred by the company related
to the offering. These costs are not tax-deductible. The net
balance sheet impact was a reduction to shareholders’ equity of $904 thousand
which is comprised of a decrease in preferred stock of $1.0 million and a $96
thousand increase to retained earnings related to the discount on the shares
repurchased. However, the redemption of the $1.0 million in preferred
shares will save the Company $50,000 annually in dividend expenses.
“The partial
redemption of our preferred shares sends a powerful message about the
performance and capital strength of Southern First”, commented Art Seaver, the
company’s Chief Executive Officer. “If the company’s earnings continue to
produce excess capital, redeeming additional shares of preferred stock could be
a strategic option in the future.”
Company
exits US Treasury’s TARP program
Southern
First also announced the company’s exit from the US Treasury’s TARP program. As
noted above, the US Treasury elected to sell its preferred shares in the company
through a public offering structured as a modified Dutch auction. This
auction was successful and resulted in the US Treasury selling its complete
ownership in Southern First Bancshares. 16,299 shares of preferred stock remain
outstanding, none of which are held by the U.S. Treasury. The company’s
previously mentioned partial redemption of preferred shares was executed
through this auction. The company is no longer subject to any restrictions
imposed by the US Treasury under the TARP program. In addition, the Company
has received all regulatory approval necessary to repurchase the 399,970.34
warrants issued and outstanding from Treasury. The transaction is expected to
close in the third quarter of 2012.
“While the
restrictions imposed by the government under the TARP program were relatively
minor, we are delighted that the government no longer has any ownership
interest in Southern First’s preferred stock,” Seaver commented.
Expansion
into Charleston, South Carolina
On July 16,
2012, the company announced its pending expansion into Charleston, South
Carolina with the hiring of Mr. Lenwood Howell as Executive Vice President and
Charleston Regional Executive. Mr. Howell has over 17 years of banking
experience in the Charleston market, most recently as market executive for the
National Bank of South Carolina (Synovus).
“This has been
a significant quarter in terms of strategic accomplishments,” commented Seaver.
“We are incredibly excited about the addition of Len Howell to our team and our
pending expansion to the Charleston market. Len Howell is well known by our
executive team and his leadership and 17 year experience in the Charleston
market will bring significant value to our company.”
Operating
Results
“Our second
quarter earnings represent the strongest quarterly earnings performance in over
four years” stated Seaver. “The growth of earning assets and expansion of net
interest margin have clearly impacted our earnings momentum.”
2
Net interest margin
for the second quarter of 2012 improved to 3.61% from 3.45% for the first
quarter of 2012, and increased 33 basis points from 3.28% for the second
quarter of 2011. The net interest margin for the six months ended June 30,
2012 was 3.53% compared to 3.23% for the six months ended June 30, 2011. The
primary driver of the increased net interest margin is the $40.9 million growth
in loan balances during the past twelve months, combined with the 51 basis
point decrease in the cost of our interest bearing liabilities.
During the second
quarter of 2012, the company recorded total credit costs of $1.5 million
compared to $1.2 million during the second quarter of 2011. Of the $1.5
million in credit costs, $1.3 million related to the provision for loan losses
while $176 thousand related primarily to the loss on sale of one property in other
real estate owned. In addition, loan charge-offs for the quarter were $1.3
million and related primarily to two large commercial loans. Comparatively,
the company recorded a loan loss provision of $650 thousand and expenses
related to real estate owned of $548 thousand during the same period in 2011. For
the six months ended June 30, 2012, total credit costs were $2.9 million,
consisting of a $2.5 million provision for loan losses and expenses of $454
thousand related to expenses from the sale and management of other real estate
owned. Total credit costs were $2.4 million during the six months ended June
30, 2011 and related to a $1.4 million provision for loan losses and $1.0
million of expenses from the sale and management of other real estate owned. The
company’s allowance for loan losses was $9.1 million, or 1.48%, of loans at June
30, 2012 which provides approximately 88% coverage of non-performing loans.
Noninterest income was
$741 thousand and $618 thousand for the three months ended June 30, 2012 and
2011, respectively. For the six months ended June 30, 2012 and 2011,
noninterest income was $1.6 million and $1.2 million, respectively. The
increase in noninterest income during the three month period is related primarily
to increases in income from bank owned life insurance and in rental income.
During the six month period of 2012, noninterest income increased due primarily
to increases in loan fee income, service charges on deposit accounts, income
from bank owned life insurance, and rental income. In addition, income derived
from mortgage originations is a significant part of our noninterest income at
$169 thousand and $338 thousand for the three months and six months ended June
30, 2012, respectively.
In addition, our
noninterest expense was $4.7 million and $4.9 million for the three months
ended June 30, 2012 and 2011, respectively. Noninterest expense for the six
months ended June 30, 2012 and 2011 was $9.4 million and $9.3 million, respectively.
The $200 thousand decrease in noninterest expense during the three month period
related primarily to reduced expenses related to the sale and management of
real estate owned and lower insurance costs, partially offset by increases in
salaries and benefits expense, occupancy, data processing and related costs,
and professional fees. During the six months ended June 30, 2012, noninterest
expense increased $112 thousand compared to the prior year due to increased
salaries and benefits, occupancy, data processing and related costs, and
professional fees; however, these increases were partially offset by reduced
costs related to the sale and management of real estate owned and insurance
expenses.
Nonperforming
assets decreased to $12.9 million, or 1.70%, of total assets as of June 30, 2012
compared to $13.1 million, or 1.73%, at June 30, 2011. Of the $12.9 million in
total nonperforming assets as of June 30, 2012, nonperforming loans represent
$10.4 million and other real estate owned represents $2.5 million. During the second
quarter of 2012, the company recorded $1.3 million in net charge-offs, or 0.88%
of average loans on an annualized basis. Classified assets remain an
improvement from the prior year at 44% of tier 1 capital plus the allowance for
loan losses at June 30, 2012, compared to 49% at June 30, 2011.
Gross loans were
$618.9 million as of June 30, 2012 compared to $598.6 million at December 31,
2011 and $578.0 million at June 30, 2011. The $20.2 million increase in loan
balances during the first six months of 2012 was concentrated primarily in
residential mortgage loans. Core deposits increased $32.5 million to $426.6
million at June 30, 2012 compared to June 30, 2011. The increase in retail
funding continued to enable the company to reduce its wholesale funding by approximately
$36 million during the last twelve month period. As a result, brokered deposits
now represent only 2.7% of total funding for the bank compared to 9.2% at June
30, 2011. The company has reduced its brokered deposits by over $200 million
since June 2009.
Shareholders’ equity
totaled $63.2 million as of June 30, 2012, a $2.4 million increase from the
same period in 2011. With a tier 1 leverage ratio of 9.83% and total risk based
capital ratio of 13.34%, the company’s capital ratios exceed the regulatory
requirements for a “well capitalized” institution. Tangible common equity
increased to 6.24% at June 30, 2012 from 5.84% at June 30, 2011.
3
During the third
quarter of 2011, the Company determined that it had been accounting for its
preferred stock and related discount accretion in error. All amounts and
ratios related to preferred stock, discount accretion, net income (loss) to
common shareholders and earnings (loss) per common share have been restated for
periods prior to September 30, 2011. The error was not material to the interim
and annual financial statements.
Financial
Highlights - Unaudited
|
|
|
2nd
Qtr
|
|
YTD
|
|
|
Quarter
Ended June 30
|
2012-2011
|
Six
Months Ended June 30
|
2012-2011
|
|
(in thousands,
except earnings per share)
|
|
2012
|
2011
|
%
Change
|
2012
|
2011
|
%
Change
|
|
Earnings Summary
|
|
|
|
|
|
|
|
|
Interest income
|
$
|
8,534
|
8,887
|
-4.0%
|
17,091
|
17,492
|
-2.3%
|
|
Interest expense
|
|
2,156
|
3,085
|
-30.1%
|
4,583
|
6,289
|
-27.1%
|
|
Net interest income
|
|
6,378
|
5,802
|
9.9%
|
12,508
|
11,203
|
11.6%
|
|
Provision for loan losses
|
|
1,275
|
650
|
96.2%
|
2,475
|
1,375
|
80.0%
|
|
Noninterest income
|
|
741
|
618
|
19.9%
|
1,578
|
1,174
|
34.4%
|
|
Noninterest expense
|
|
4,655
|
4,855
|
4.1%
|
9,434
|
9,322
|
1.2%
|
|
Income before provision for income taxes
|
|
1,189
|
915
|
29.9%
|
2,177
|
1,680
|
29.6%
|
|
Income tax expense
|
|
374
|
287
|
30.3%
|
674
|
515
|
30.9%
|
|
Net income
|
|
815
|
628
|
29.8%
|
1,503
|
1,165
|
29.0%
|
|
Preferred stock dividends
|
|
216
|
216
|
0.0%
|
432
|
432
|
0.0%
|
|
Discount accretion (2)
|
|
106
|
69
|
53.6%
|
179
|
137
|
30.7%
|
|
Redemption of preferred stock
|
|
96
|
-
|
|
96
|
-
|
|
|
Net income available to common shareholders (2)
|
$
|
589
|
343
|
71.7%
|
988
|
596
|
65.8%
|
|
Basic weighted average common shares (5)
|
|
3,842
|
3,821
|
0.6%
|
3,840
|
3,821
|
0.5%
|
|
Diluted weighted average common shares (5)
|
|
4,034
|
3,909
|
3.2%
|
3,957
|
3,909
|
1.2%
|
|
Earnings per common share - Basic (2)(5)
|
$
|
0.15
|
0.09
|
66.7%
|
0.26
|
0.16
|
62.5%
|
|
Earnings per common share - Diluted (2)(5)
|
|
0.15
|
0.09
|
66.7%
|
0.25
|
0.15
|
66.7%
|
|
|
|
2nd
Qtr
|
|
|
|
Quarter Ended June
30
|
2012-2011
|
March 31
|
December 31
|
September 30
|
|
|
2012
|
2011
|
% Change
|
2012
|
2011
|
2011
|
|
Balance Sheet Highlights
|
|
|
|
|
|
|
|
|
Assets
|
$
|
759,632
|
758,102
|
0.2%
|
770,006
|
767,745
|
758,106
|
|
Investment securities
|
|
74,231
|
93,865
|
-20.9%
|
78,615
|
108,584
|
89,040
|
|
Loans
|
|
618,874
|
577,980
|
7.1%
|
607,925
|
598,635
|
591,055
|
|
Allowance for loan losses
|
|
9,131
|
8,719
|
4.7%
|
9,196
|
8,925
|
8,751
|
|
Other real estate owned
|
|
2,555
|
2,934
|
-12.9%
|
3,733
|
3,686
|
3,262
|
|
Noninterest bearing deposits
|
|
94,008
|
57,737
|
62.8%
|
83,459
|
68,985
|
61,647
|
|
Interest bearing deposits
|
|
460,409
|
498,712
|
-7.7%
|
483,263
|
493,927
|
493,028
|
|
Total deposits
|
|
554,417
|
556,449
|
-0.4%
|
566,722
|
562,912
|
554,675
|
|
Other borrowings
|
|
122,700
|
122,700
|
0.0%
|
122,700
|
122,700
|
122,700
|
|
Junior subordinated debentures
|
|
13,403
|
13,403
|
0.0%
|
13,403
|
13,403
|
13,403
|
|
Shareholders’ equity
|
|
63,171
|
60,755
|
4.0%
|
63,006
|
62,540
|
61,868
|
|
Common Stock
|
|
|
|
|
|
|
|
|
Book value per common share (2)(5)
|
$
|
12.34
|
11.59
|
6.5%
|
12.06
|
12.02
|
11.87
|
|
Stock price (5):
|
|
|
|
|
|
|
|
|
High
|
|
9.00
|
7.73
|
16.4%
|
7.36
|
7.21
|
9.48
|
|
Low
|
|
6.86
|
6.92
|
-0.9%
|
6.09
|
5.51
|
6.18
|
|
Period end
|
|
8.50
|
7.73
|
10.0%
|
6.85
|
6.50
|
6.27
|
|
Other
|
|
|
|
|
|
|
|
|
Return on average assets (6)
|
|
0.43%
|
0.33%
|
30.3%
|
0.36%
|
0.23%
|
0.26%
|
|
Return on average equity (6)
|
|
5.10%
|
4.13%
|
23.5%
|
4.34%
|
2.79%
|
3.12%
|
|
Loans to deposits
|
|
111.63%
|
103.87%
|
7.5%
|
107.27%
|
106.35%
|
106.56%
|
|
Efficiency ratio (7)
|
|
62.89%
|
66.81%
|
-5.9%
|
65.28%
|
61.78%
|
64.89%
|
|
Team members
|
|
117
|
113
|
3.5%
|
114
|
113
|
111
|
|
(2)
Amounts and ratios for periods prior to September 30, 2011 have been restated
for a correction of an immaterial error in accounting for preferred stock and
the related discount accretion, as explained above.
|
|
(5) Per share amounts for the 2011 periods have been restated to
reflect the 10% stock dividend in 2012.
|
|
(6) Annualized based on
quarterly net income.
|
|
(7) Noninterest
expense divided by the sum of net interest income and noninterest income,
excluding real estate activity and gain on sale of investments.
|
4
Asset quality
measures - Unaudited
|
|
|
YTD
|
|
|
|
|
June 30
|
June 30
|
2012-2011
|
March 31
|
December 31
|
September 30
|
|
(dollars in
thousands)
|
|
2012
|
2011
|
%
Change
|
2012
|
2011
|
2011
|
|
Nonperforming Assets
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
Owner occupied RE
|
$
|
599
|
800
|
-25.1%
|
699
|
1,061
|
983
|
|
Non-owner occupied RE
|
|
1,476
|
1,423
|
3.7%
|
1,090
|
1,745
|
740
|
|
Construction
|
|
1,005
|
1,310
|
-23.3%
|
1,047
|
1,314
|
1,288
|
|
Commercial business
|
|
507
|
2,315
|
-78.1%
|
515
|
503
|
976
|
|
Consumer
|
|
|
|
|
|
|
|
|
Real estate
|
|
286
|
1,085
|
-73.6%
|
618
|
476
|
1,134
|
|
Home equity
|
|
558
|
487
|
14.6%
|
263
|
386
|
385
|
|
Construction
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Other
|
|
-
|
21
|
-100.0%
|
-
|
-
|
4
|
|
Nonaccruing
troubled debt restructurings
|
|
5,937
|
2,760
|
115.1%
|
5,812
|
4,779
|
3,708
|
|
Total
nonaccrual loans
|
|
10,368
|
10,201
|
1.6%
|
10,044
|
10,264
|
9,218
|
|
Other
repossessed assets
|
|
2,555
|
2,934
|
-12.9%
|
3,733
|
3,686
|
3,262
|
|
Total
nonperforming assets
|
$
|
12,923
|
13,135
|
-1.6%
|
13,777
|
13,950
|
12,480
|
|
Nonperforming
assets as a percentage of:
|
|
|
|
|
|
|
|
|
Total assets
|
|
1.70%
|
1.73%
|
-1.7%
|
1.79%
|
1.82%
|
1.65%
|
|
Total loans
|
|
2.09%
|
2.27%
|
-7.5%
|
2.27%
|
2.33%
|
2.11%
|
|
Accruing
troubled debt restructurings
|
$
|
8,569
|
6,118
|
40.1%
|
6,661
|
7,429
|
6,591
|
|
|
|
2nd Qtr
|
|
YTD
|
|
|
Quarter Ended June
30
|
2012-2011
|
Six Months Ended
June 30
|
2012-2011
|
|
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
Allowance
for Loan Losses
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
$
|
9,196
|
8,388
|
9.6%
|
8,925
|
8,386
|
6.4%
|
|
Loans charged-off
|
|
(1,345)
|
(385)
|
249.4%
|
(2,287)
|
(1,109)
|
106.2%
|
|
Recoveries of loans previously charged-off
|
|
5
|
66
|
(92.4)%
|
18
|
67
|
(73.1)%
|
|
Net loans charged-off
|
|
(1,340)
|
(319)
|
320.1%
|
(2,269)
|
(1,042)
|
117.6%
|
|
Provision for loan losses
|
|
1,275
|
650
|
96.2%
|
2,475
|
1,375
|
80.0%
|
|
Balance, end of period
|
$
|
9,131
|
8,719
|
4.7%
|
9,131
|
8,719
|
4.7%
|
|
Allowance
for loan losses to gross loans
|
|
1.48 %
|
1.51 %
|
(2.0)%
|
1.48 %
|
1.51 %
|
(2.0) %
|
|
Allowance for loan losses to nonaccrual loans
|
|
88.07 %
|
85.47 %
|
3.0%
|
88.07 %
|
85.47 %
|
3.0 %
|
|
Net
charge-offs to average loans (annualized)
|
|
0.88 %
|
0.22 %
|
300.0%
|
0.75 %
|
0.36 %
|
108.3 %
|
|
AVERAGE YIELD/RATE - Unaudited
|
|
|
|
|
|
|
Quarter
Ended June 30
|
|
Six Months
Ended June 30
|
|
|
2012
|
2011
|
|
2012
|
2011
|
|
|
Yield/Rate(8)
|
|
Interest-earning assets
|
|
|
|
|
|
|
Federal funds sold
|
0.26%
|
0.24%
|
|
0.26%
|
0.23%
|
|
Investment
securities, taxable
|
2.45%
|
2.93%
|
|
2.23%
|
2.69%
|
|
Investment
securities, nontaxable
|
4.81%
|
5.22%
|
|
4.78%
|
5.33%
|
|
Loans
|
5.28%
|
5.76%
|
|
5.31%
|
5.74%
|
|
Total
interest-earning assets
|
4.82%
|
5.00%
|
|
4.81%
|
5.02%
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
NOW accounts
|
0.60%
|
1.08%
|
|
0.66%
|
1.19%
|
|
Savings & money
market
|
0.39%
|
0.83%
|
|
0.42%
|
0.83%
|
|
Time deposits
|
1.37%
|
1.97%
|
|
1.50%
|
2.06%
|
|
Total
interest-bearing deposits
|
0.89%
|
1.48%
|
|
0.97%
|
1.56%
|
|
Note payable and
other borrowings
|
3.37%
|
3.77%
|
|
3.44%
|
3.77%
|
|
Junior subordinated
debentures
|
2.76%
|
2.60%
|
|
2.82%
|
2.60%
|
|
Total
interest-bearing liabilities
|
1.43%
|
1.94%
|
|
1.50%
|
2.01%
|
|
Net interest spread
|
3.38%
|
3.06%
|
|
3.31%
|
3.01%
|
|
Net interest income (tax equivalent) / margin
|
3.61%
|
3.28%
|
|
3.53%
|
3.23%
|
|
(8) Annualized for the respective
three and six month periods.
|
5
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
consists of Southern First Bank, N.A., the 9th largest bank headquartered in
South Carolina; which also does business as Greenville First Bank, N.A. in
Greenville County. Since 1999 Southern First Bancshares has been providing
financial services and now operates in six locations in the Greenville and
Columbia markets of South Carolina. Southern First Bancshares has assets of approximately
$760 million and its stock is traded in 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 include but are not limited to (1) statements with
respect to our expectations regarding the Company’s net interest margin that
are not historical facts, and (2) other statements identified by words such as
“believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,”
“targets,” and “projects,” 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 we conduct operations
may be different than expected resulting in, among other things, a
deterioration in the credit quality or a reduced demand for credit, including
the resultant effect on the company’s loan portfolio and allowance for loan
losses; (3) the rate of delinquencies and amounts of charge-offs, the level of
allowance for loan loss, the rates of loan growth, or adverse changes in asset
quality in our loan portfolio, which may result in increased credit
risk-related losses and expenses; (4) changes in the U.S. legal and regulatory
framework; and (5) adverse conditions in the stock market, the public debt
market and other capital markets (including changes in interest rate
conditions) could have a negative impact on the company. 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.
FINANCIAL CONTACT: MIKE DOWLING 864-679-9070
MEDIA CONTACT: ART SEAVER 864-679-9010
WEB SITE: www.southernfirst.com
6
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)